Foreign Exchange Risk in Banks Overview and Analysis

Foreign Exchange Risk in Banks Overview and Analysis Objective of the Project:- The objective of this project is to understand the various types of foreign exchange risks. And the potential impact of the foreign exchange risks on the institutions involved in foreign exchange trading. Background:- In this project, I have calculated the value of risk involved in foreign exchange transactions at United Bank of India. Methodology:- The data used in this project is obtained from secondary research. Historical method is used to calculate the Value at Risk (VaR). The Value at Risk is thus calculated is used to find the actual amount at risk in terms of INR. Findings and Conclusion:- By finding the total risk, we get to know the total amount that the organization can lose in the worst possible scenario. It happens if the allocation of fund is not based upon the possible value at risks. In carrying out this project, I have found that the bank has allocated more funds for its forex operations than required. Recommendations:- At present the bank is operating at the 99% confidence level to calculate the value at risk. As they are working at 99% confidence level, due to this they need to employ more capital for their forex operations. United Bank of India should operate at 95% confidence level. This will help them cut down funds employed for their forex operations. Introduction to Foreign Exchange The creator of the universe has not distributed resources needed by the civilised world evenly on our planet earth. What is available easily at one place is hardly available at another place. This has resulted in an environment of interdependency among the countries. The interdependency among countries has given rise to international trade. The growth of international trade of goods and services has necessitated a method of exchange. Let us evaluate a transaction involving supply of goods from India to United Kingdom. The value of goods is known to the Indian supplier in INR. Thus the Indian supplier will price the goods so that he can make profit in INR. At the same time the purchasing power available with the UK customer is in GBP (Great Britain Pound). Therefore the customer will want to know the price in GBP. Now, if buyer and seller decide to settle the transaction in USD. Therefore to complete such transactions, the parties to the transaction need to know the value of one currency in terms of another. This mechanism of converting one currency in terms of another is known as â€Å"Foreign Exchange†. Foreign Exchange is defined in Foreign Exchange management Act 1999 as:- Ø All deposits, credits, balances payable in any foreign currency and any drafts, travellers cheque, letter of credit and bill of exchange expressed or drawn in Indian currency and payable in foreign currency. Ø Any instrument payable at the option of the drawee or holder thereof or any other party thereto, either in Indian currency or in foreign currency or partly in one and partly in the other. In short, Foreign Exchange is the method of conversion of one currency into another. As foreign currency is treated as a commodity, it is traded in a market. Trade constitutes a small portion of the â€Å"Foreign Exchange Market†. The cross border movement of capital forms the major portion. Major participants of Foreign Exchange Market include commercial banks, central banking institutions, investment banks, foreign exchange brokers and merchants. The commercial banks become the vehicles for conversion, as most of the foreign exchange operation takes place through the account maintained with these banks. Objective of the Project A Project Report on FOREIGN EXCHANGE risks in Bank. Foreign Exchange is a very large financial market. At times foreign exchange market becomes very volatile. This is responsible for the various risks in foreign exchange market. Everyone involved in the foreign exchange trading should we aware of foreign exchange risk. To ascertain Foreign Exchange risk in Bank we need to execute the following tasks:- Various types of foreign exchange services available at Banks. The various types of foreign exchange risks. The various foreign currencies which has significant demand. The possible Hedging strategies that can be deployed to manage foreign exchange risks. Determination of Value at Risk (Var). Research Methodology Data / Information Collection. Study of data collected to calculate the value at risk (VAR). Calculation of mean return. Calculation of Standard Deviation. Data/Information Collection Data and information is collected from the various sources. These sources include data from the Bank, magazines, journals, books and newspapers. The information thus collected is used to calculate the Value at Risk. Value at risk (VaR) Risk is about odds of losing money and VaR is based on that common sense fact. Here risk is the odds of really big loss. Big loss is different for every investor depending on the investors appetite. But every investor whether big or small does wants to know his/her losses in the worst case. VAR answers the question, What is my worst-case scenario? To calculate VaR we need three components. These three components are: a time period, a confidence level and a loss amount or loss percentage. Using VaR investor will get to know things like: What is the most I can expect to lose with 95% confidence over a period of 10 days? What is the maximum percentage I can expect to lose with 95% confidence over a period of 10 days? We consider a relatively high level of confidence, mostly 95% or 99% confidence level. Time period taken can be anything like a day, 10 day, a month or a year depending upon what investor is looking for. A one day VAR of $10mm using a probability of 5% means that there is a 5% chance that the portfolio could lose more than $10mm in the next trading day. There are three methods of calculating VaR: the Historical method, the parametric method also known as variance-covariance method and the Monte Carlo simulation. The Historical Method: The historical method simply re-organizes actual historical returns, putting them in order from worst to best. It then assumes that history will repeat itself, from a risk perspective. We then put these data in the histogram that compare the frequency of return. Tiny bars in histogram represent the less frequent daily return while the highest point in histogram represents the most frequent daily return. Parametric Method:This method assumes that the stock returns are normally distributed. In this method we estimate only two factors an expected return and a standard deviation. These two factors allow us to plot a normal distribution curve. Monte Carlo Simulation: The third method involves developing a model for future stock price returns and running multiple hypothetical trials through the model. A Monte Carlo simulation refers to any method that randomly generates trials, but by itself does not tell us anything about the underlying methodology. Every run of Monte Carlo Simulation gives different result. But differences between these results are likely to be very narrow. Calculation of Value at Risk (VaR) To calculate the value at risk, at first we need to collect the historical data. Historical data is the historical exchange rate of a particular foreign currency against INR. The foreign currencies which we are considering here are United States Dollar (USD), Great Britain Pound (GBP), Euro and Japanese Yen (JPY). We are considering these currencies because they are the major currencies as exchange is easily available for these currencies. We will calculate the value at risk the investor faces in case he/she invests in any of these currencies. At first we will consider the case in which an investor is investing in United States Dollar. The investor will buy United States Dollar in exchange of INR. USD/INR The historical exchange rate for USD/INR for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: From the everyday exchange rate the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return,5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 0.35% From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 0.46% Euro/INR The historical exchange rate for Euro/USD for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: Euro/USD Euro/INR Historical exchange rate for Euro/INR is determined from the historical exchange rate of Euro/USD and USD/INR. Exchange rate of Euro/INR = Exchange rate of Euro/USD * Exchange rate of USD/INR In this case again the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return, 5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 1.21%. From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 1.53%. GBP/INR The historical exchange rate for GBP/USD for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: GBP/USD GBP/INR Historical exchange rate for GBP/INR is determined from the historical exchange rate of GBP/USD and USD/INR. Exchange rate of GBP/INR = Exchange rate of GBP/USD * Exchange rate of USD/INR In this case again the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return, 5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 0.49% From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 1.03% JYP/INR The historical exchange rate for USD/JYP for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: USD/JYP JPY/USD Historical exchange rate for JPY/USD is determined from the historical exchange rate of USD/JPY. Exchange rate of JPY/USD = 1/ (Exchange rate of USD/JPY) JPY/INR Historical exchange rate for JPY/INR is determined from the historical exchange rate of JPY/USD and USD/INR. Exchange rate of JPY/INR = Exchange rate of JPY/USD * Exchange rate of USD/INR In this case again the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return, 5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 0.60% From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 0.93% Calculation of Standard Deviation Standard deviation is a measure of how far apart the data are from the average of the data. If all the observations are close to their average then the standard deviation will be small. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investments volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Suppose that an investor has INR 45,000 to invest and is considering buying the USD. Currently one USD is valued at INR 45. The investor assesses a 0.75 probability that the USD will appreciate against INR over a coming period, so that one USD will be equivalent to INR 46 and a 0.25 probability that the USD will depreciate against INR to become equal to INR 44. INR 45,000 (at one USD equal to INR 45) = 45,000/45 = USD 1000 The payoffs from the proposed investment are as follows:- If the USD appreciates (One USD becomes equal to INR 46): USD 1000 *46 = INR 46,000 If the USD depreciates (One USD becomes equal to INR 44): USD 1000*44 = INR 44,000 PAYOFF (INR) RATE OF RETURN PROBABILITY EXPECTED RATE OF RETURN VARIANCE (1) (2) (3) (4) = (2) x (3) (5) 46,000 (46 45)/45 = 0.022 0.75 0.0165 (0.022 0.011)^2 x 0.75 = 0. Foreign Exchange Risk in Banks Overview and Analysis Foreign Exchange Risk in Banks Overview and Analysis Objective of the Project:- The objective of this project is to understand the various types of foreign exchange risks. And the potential impact of the foreign exchange risks on the institutions involved in foreign exchange trading. Background:- In this project, I have calculated the value of risk involved in foreign exchange transactions at United Bank of India. Methodology:- The data used in this project is obtained from secondary research. Historical method is used to calculate the Value at Risk (VaR). The Value at Risk is thus calculated is used to find the actual amount at risk in terms of INR. Findings and Conclusion:- By finding the total risk, we get to know the total amount that the organization can lose in the worst possible scenario. It happens if the allocation of fund is not based upon the possible value at risks. In carrying out this project, I have found that the bank has allocated more funds for its forex operations than required. Recommendations:- At present the bank is operating at the 99% confidence level to calculate the value at risk. As they are working at 99% confidence level, due to this they need to employ more capital for their forex operations. United Bank of India should operate at 95% confidence level. This will help them cut down funds employed for their forex operations. Introduction to Foreign Exchange The creator of the universe has not distributed resources needed by the civilised world evenly on our planet earth. What is available easily at one place is hardly available at another place. This has resulted in an environment of interdependency among the countries. The interdependency among countries has given rise to international trade. The growth of international trade of goods and services has necessitated a method of exchange. Let us evaluate a transaction involving supply of goods from India to United Kingdom. The value of goods is known to the Indian supplier in INR. Thus the Indian supplier will price the goods so that he can make profit in INR. At the same time the purchasing power available with the UK customer is in GBP (Great Britain Pound). Therefore the customer will want to know the price in GBP. Now, if buyer and seller decide to settle the transaction in USD. Therefore to complete such transactions, the parties to the transaction need to know the value of one currency in terms of another. This mechanism of converting one currency in terms of another is known as â€Å"Foreign Exchange†. Foreign Exchange is defined in Foreign Exchange management Act 1999 as:- Ø All deposits, credits, balances payable in any foreign currency and any drafts, travellers cheque, letter of credit and bill of exchange expressed or drawn in Indian currency and payable in foreign currency. Ø Any instrument payable at the option of the drawee or holder thereof or any other party thereto, either in Indian currency or in foreign currency or partly in one and partly in the other. In short, Foreign Exchange is the method of conversion of one currency into another. As foreign currency is treated as a commodity, it is traded in a market. Trade constitutes a small portion of the â€Å"Foreign Exchange Market†. The cross border movement of capital forms the major portion. Major participants of Foreign Exchange Market include commercial banks, central banking institutions, investment banks, foreign exchange brokers and merchants. The commercial banks become the vehicles for conversion, as most of the foreign exchange operation takes place through the account maintained with these banks. Objective of the Project A Project Report on FOREIGN EXCHANGE risks in Bank. Foreign Exchange is a very large financial market. At times foreign exchange market becomes very volatile. This is responsible for the various risks in foreign exchange market. Everyone involved in the foreign exchange trading should we aware of foreign exchange risk. To ascertain Foreign Exchange risk in Bank we need to execute the following tasks:- Various types of foreign exchange services available at Banks. The various types of foreign exchange risks. The various foreign currencies which has significant demand. The possible Hedging strategies that can be deployed to manage foreign exchange risks. Determination of Value at Risk (Var). Research Methodology Data / Information Collection. Study of data collected to calculate the value at risk (VAR). Calculation of mean return. Calculation of Standard Deviation. Data/Information Collection Data and information is collected from the various sources. These sources include data from the Bank, magazines, journals, books and newspapers. The information thus collected is used to calculate the Value at Risk. Value at risk (VaR) Risk is about odds of losing money and VaR is based on that common sense fact. Here risk is the odds of really big loss. Big loss is different for every investor depending on the investors appetite. But every investor whether big or small does wants to know his/her losses in the worst case. VAR answers the question, What is my worst-case scenario? To calculate VaR we need three components. These three components are: a time period, a confidence level and a loss amount or loss percentage. Using VaR investor will get to know things like: What is the most I can expect to lose with 95% confidence over a period of 10 days? What is the maximum percentage I can expect to lose with 95% confidence over a period of 10 days? We consider a relatively high level of confidence, mostly 95% or 99% confidence level. Time period taken can be anything like a day, 10 day, a month or a year depending upon what investor is looking for. A one day VAR of $10mm using a probability of 5% means that there is a 5% chance that the portfolio could lose more than $10mm in the next trading day. There are three methods of calculating VaR: the Historical method, the parametric method also known as variance-covariance method and the Monte Carlo simulation. The Historical Method: The historical method simply re-organizes actual historical returns, putting them in order from worst to best. It then assumes that history will repeat itself, from a risk perspective. We then put these data in the histogram that compare the frequency of return. Tiny bars in histogram represent the less frequent daily return while the highest point in histogram represents the most frequent daily return. Parametric Method:This method assumes that the stock returns are normally distributed. In this method we estimate only two factors an expected return and a standard deviation. These two factors allow us to plot a normal distribution curve. Monte Carlo Simulation: The third method involves developing a model for future stock price returns and running multiple hypothetical trials through the model. A Monte Carlo simulation refers to any method that randomly generates trials, but by itself does not tell us anything about the underlying methodology. Every run of Monte Carlo Simulation gives different result. But differences between these results are likely to be very narrow. Calculation of Value at Risk (VaR) To calculate the value at risk, at first we need to collect the historical data. Historical data is the historical exchange rate of a particular foreign currency against INR. The foreign currencies which we are considering here are United States Dollar (USD), Great Britain Pound (GBP), Euro and Japanese Yen (JPY). We are considering these currencies because they are the major currencies as exchange is easily available for these currencies. We will calculate the value at risk the investor faces in case he/she invests in any of these currencies. At first we will consider the case in which an investor is investing in United States Dollar. The investor will buy United States Dollar in exchange of INR. USD/INR The historical exchange rate for USD/INR for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: From the everyday exchange rate the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return,5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 0.35% From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 0.46% Euro/INR The historical exchange rate for Euro/USD for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: Euro/USD Euro/INR Historical exchange rate for Euro/INR is determined from the historical exchange rate of Euro/USD and USD/INR. Exchange rate of Euro/INR = Exchange rate of Euro/USD * Exchange rate of USD/INR In this case again the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return, 5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 1.21%. From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 1.53%. GBP/INR The historical exchange rate for GBP/USD for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: GBP/USD GBP/INR Historical exchange rate for GBP/INR is determined from the historical exchange rate of GBP/USD and USD/INR. Exchange rate of GBP/INR = Exchange rate of GBP/USD * Exchange rate of USD/INR In this case again the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return, 5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 0.49% From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 1.03% JYP/INR The historical exchange rate for USD/JYP for a period of 22 days starting from 15th April 2011 to 6th May 2011 is as follows: USD/JYP JPY/USD Historical exchange rate for JPY/USD is determined from the historical exchange rate of USD/JPY. Exchange rate of JPY/USD = 1/ (Exchange rate of USD/JPY) JPY/INR Historical exchange rate for JPY/INR is determined from the historical exchange rate of JPY/USD and USD/INR. Exchange rate of JPY/INR = Exchange rate of JPY/USD * Exchange rate of USD/INR In this case again the periodic return is found by using the formula given below: Natural Logarithm (Present date exchange rate/ previous date exchange rate) The Value at Risk from the above data is calculated by using the given formula in excel: PERCENTILE (array of the periodic return, 5%) Here the array of the periodic return is the everyday return of the period for which historical data is taken. The second attributes i.e., 5% tells that 95 times out of 100 the loss will not exceed the calculated VaR. Therefore we can say with 95% confidence that the loss will not exceed the Value at Risk (VaR) thus calculated. From the above data the Value at Risk (VaR) calculated at 95% confidence level is: 0.60% From the above data the Value at Risk (VaR) calculated at 99% confidence level is: 0.93% Calculation of Standard Deviation Standard deviation is a measure of how far apart the data are from the average of the data. If all the observations are close to their average then the standard deviation will be small. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investments volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Suppose that an investor has INR 45,000 to invest and is considering buying the USD. Currently one USD is valued at INR 45. The investor assesses a 0.75 probability that the USD will appreciate against INR over a coming period, so that one USD will be equivalent to INR 46 and a 0.25 probability that the USD will depreciate against INR to become equal to INR 44. INR 45,000 (at one USD equal to INR 45) = 45,000/45 = USD 1000 The payoffs from the proposed investment are as follows:- If the USD appreciates (One USD becomes equal to INR 46): USD 1000 *46 = INR 46,000 If the USD depreciates (One USD becomes equal to INR 44): USD 1000*44 = INR 44,000 PAYOFF (INR) RATE OF RETURN PROBABILITY EXPECTED RATE OF RETURN VARIANCE (1) (2) (3) (4) = (2) x (3) (5) 46,000 (46 45)/45 = 0.022 0.75 0.0165 (0.022 0.011)^2 x 0.75 = 0.

Curry Powder Indusrty

INDUSTRY PROFILE India is a land of spices where many varieties are grown in the different regions of the country. The people of the country are fond of spicy food so the spices are the most important ingredient in any Indian dish. The nation is not just the big producer and consumer of spices but also a major player in international market, exporting the surplus and importing the deficit. Spices play an important role in enhancing the flavor and taste of the processed foods. They are also used in the medicines because of their carminative, simulative and digestive properties. India produces almost all the known spices and is the largest exporter of this commodity. Ground spices are extensively used in all types of curried dishes in India and abroad. Although spices are traded chiefly in an unprocessed form, a small yet significant quantity enters international trade as spice powders. Curry powder is the foremost of those blends or mixes and sometimes consists of 20 or more spices designed to add the characteristic flavor of an Indian curry, which is appreciated all over the world. Apart from the overseas market, processed curry powder is becoming popular in the domestic market also. Hence the demand for unadulterated spices and curry powder in attractive handy packaging is fast emerging. FOOD INDUSTRY IN INDIA In India, agricultural and dairy sector have achieved remarkable successes over the last three and half decades. Besides being one of the world’s largest producers of food grains. India ranks second in the world in the production of fruits and vegetables and first in milk production providing much needed foods security to the nation. India is one of the world’s major food producers but accounts for less than 1. 5%of international food trade. The value of the Indian food industry has increased from 3. 09 trillion in 1993-94 to Rs. 3. 99 trillion in 2000-01. The segment with largest growth potential have been identified as dairy, fruits and vegetables and poultry. Food marketing is a highly regulated industry. Regulation in food marketing attempted regulates competition and monopolistic condition facilitates trade, protect consumers and directly influence food price and faster economic and social progress. India produces variety of spice products. No country in the world produces as much kind of spices products as India producing. The Indian spices and curry powder market plays an important role in the daily life of Indians. Now, curry powder industries have a prominent role in food product industry in India INDIAN SPICES India is the largest producers of spices in the world as the weather is apparently suitable for the cultivation of spices. Spices are cultivating in 28 states and 7 territorial provinces in India. As of now, India is producing around 2. 5 million tones of various spices valued approximately 3 billion US$ and holding a premier position in the world. Moreover India is the major exporters of spices in the world under the auspicious of India government owned â€Å"Spices board of India†, which is the apex body for the export promotion of spices in India. This was established in 1987. The board plays a far reaching and influential role as a development, regulatory and promotional agency for Indian spices. In early days Indian people were stored the various kinds of spices such as chilly, turmeric, coriander and so on, for preparing the various dishes and gravies. These spices were separately and blending depends on the nature of dishes. Spices used to flavor with the help of indigenous tools at home by women, as that was the custom during that period. In course of time situations are changed, people are forced to use electronic devices in order to reduce their domestic job. In turns, they used readymade curry powders at their home. Gradually they have fallen in to a habit of using instant curry powders from the open market. Taken stock of this situations several firms were came forward to launch curry powder industries. That is why curry powder industries were emerging immensely all over the country. As of now curry powder industries have a prominent role in Food industry in India. CURRY POWDER The name Curry powder today is synonymous with the Indian food. The word curry is believed to be delivered from the South Indian Tamil World ‘Karhi’. During the British Raj in India, â€Å"curry† evolved as the world described Indian food cooked in this spices sauce. Over the years, the foreigners, especially British who leaved or visited India . Slowly started to introduce the curry to outside the world. The good commercial curry powder was hard to find during the early days. People had to make curry powder from scratch if they wanted quality. However, now many good curry powders are easily found in India as well as western super markets. Curry powder is blend or mixture of the different spices, which defers according to geographic regions or personal preference. CURRY POWDER INDUSTRY In the scenario, economy exhibits high line of consumerism. The curry powder industry has witnessed the entry of many companies in the Indian market by pumping huge amount of capital in order to capture the market share. However many domestic companies have emerged with various attraction products with a view to overcome the country wide companies and capturing a large number of customers. On our observation most of the companies are performing satisfactorily for a particular brand to move fast in the market it has to meet the 4 A’s. That is the market customers should be aware of it, should be an acceptable, available and affordable. Obviously, the manufactures should understand the need and wants of the customer and provides total satisfaction in order to succeed in the business world. Curry powder is a well known name among the Indian people. It is the combination of finely powdered spices. For each dish there are different curry powder spices. For each dish there are different curry powders but the ingredients are more or less the same. Now a day’s most of the housewives are using this ready-made curry powder and so the quantity required is increasing day by day. So this is an industry by which a new entrepreneur can start without second though. But the manufacturers should give attention for capturing the market. Now days not only the urban people but villages also have a craze for these ready-made curry powders. There is a good market for curry powder in India and abroad. The major players in the curry powder in India are; Eastern, Melam, Mangala, Saras, etc. As Kerala’s largest producer of condiments, â€Å"Eastern Condiments (P) Ltd† has helped to keep the famous spice route alive. With an experience of over 30 years in producing spices, they have provided their consumers with consistently high quality powders and blends â€Å"Melam† the word means a multiple of musical instruments in harmony creating a fast of exotic and exquisite music. M. V. J. Foods (India) (P) Ltd. Cochin brings out a variety curry powder and spice powder under the brand name Melam. The melam range is vast and includes a great variety of perception. â€Å"devon, THE SPICE of life† deven foods gives a wide range of aromatic spice powders and curry powders for all culinary needs. They use only best quality spices and process them in appropriate condition. â€Å"Sara spice† is the condiment producing unit of the Anna group. Company is involved in the production and exports of Indian spices. Like curry powder, Masala powder, Indian whole spices since the past two decades. CURRY POWDER MARKET Although Indian spices have been in the world market for several centuries, the curry powder business, particularly curry masala (blender, spices) has not been exploited by the Indian entrepreneurs to a significant extent. Export of this product has not registered any significant growth producers in un organized sector have dominated the domestic market, for curry powder and curry masala . Obviously the curry powder growth industries brand promotion continues to be significant till recently. However, few manufacturers from the organized sector have been promoting branded products in Kerala market recently. Competition has turned to be aggressive with the stagnation in the international market. Producing of curry powder and curry masala are involving in marketing strategies to ensure significant market shares although in specific segment DOMESTIC MARKET The India market for curry powder is estimated at Rs. 500 Cr. This is account for 25% of world consumption of curry powders. The curry powder market is estimated to be around Rs. 150Cr, with approximate 35% of market in south India. The curry powder market in Kerala is estimated at Rs 70 Cr. The market can be categorized in to 3 groups. * The premium segment The medium segment * Un organized sector In the previous segment the major brands in the market are Everest, Melam Saras and MDH . the study done by various authorities revels that moast popular Brand in the premium segment is Everest with 30% market share . Melam had 50% market share, while other brads had a negligible share in the premium segment. However, the premium makes up only 30% of the total market of curry powder in Kerala. The medium segment consist 50% of total curry powder market, Easter is the market leader in the segment. The unorganized segment consists of 20% of the total curry powder market. INTERNATIONAL MARKET Exports of spices from India usually take place in bulk form. The export of value added products are few, as none competitive prices cannot survive in the International market. Curry powder is value added spice product. the world consumption of curry powder is estimated to be 20000 metric tons in 2004, 2005. Exports of curry powder from Indian keep fluctuating between 2500 to 3500 metric tons . An analysis of annual exports of curry powders from India reveals that the exports do not show much variation . in total value terms the figures have been increasing over the years . In Indian curry powder industries, there was a few curry powder industries were existed of the beginning of which the following firms were the main producers. * MDH * EVEREST In Kerala the following a few companies were existed in producing curry powders in early stages viz. * Techno curry powder * Ambika curry powder * Rani curry powder The following are the some of the manufacturers and exporters of curry powders in India. * Asha impex (P) Ltd * Alvel sales * Amas spices * Anand Exportes * Anil grover &co * Aries Exports * B. M entrprices * Brahmins food products * C. B. R masala

World Most Dangerous Gang: MS 13

Imagine a scared little boy wanting to be accepted by a gang. Scared to death, he walks up to a group of other boys from a rival gang, closes his eyes, and starts to shoot. When he opens his eyes he realizes that one of the rival gang members has been hit. Then imagine having to walk away, not run, because in this gang a member does not run away. All of this is just to be accepted into a very violent, dangerous gang. The Mara Salvatrucha gang, normally referred to as MS 13, has begun to make its mark across 42 states in the United States(Worlds Most), making it the most rapidly growing, dangerous gang n America.To understand MS 13’s power in this country, one has to consider its development as a major crime organization, its control over its members, and the power it holds. Mara Salvatrucha was organized in Los Angeles in the late 1980’s. In the 1980’s, El Salvador was engaged in a civil war. Men attacked as guerilla fighters, training and learning how to kill an yone for anything. To escape the civil war, these men migrated to the United States. At first, the gang’s primary purpose was to defend Salvadoran immigrants from being preyed upon by other street gangs. They banded together to form MS 13.Ernesto Miranda, co-founder of Mara Salvatrucha said, â€Å"In this country (El Salvador), we were taught to kill our own people, no matter if they were from your own blood. If your father was the enemy, you had to kill him. So the training we got during the war in our country served to make us one of the most violent gangs in the United States† (Domash). This is how MS 13 came about. The â€Å"MS† stands for Mara Salvatrucha. Mara is a word meaning â€Å"posse† and salvatruchas means â€Å"street- tough Salvadorans†. The number 13 represents the number of a street, belonging to a gang, located in southern California (Domash).The only way MS 13 could survive on new soil was to join together as a family and protect each other. The only allies they have are each other. MS 13 will do almost anything to keep safe. In the early days of their existence, MS 13 was once rivals with 18th Street Gang, a mostly variation of the â€Å"maras† gangs that appeared in Los Angeles in the 1980s. SWP-18 (Salvadorans with Pride), is another major rival, and a fatal target for many devoted MS-13 prospects seeking initiation into the gang. The Latin Kings have also shown rival behaviors towards MS-13, especially in Newark NJ. Rival gangs fear them. A rival gang member in L. A said â€Å"MS13 bout’ hurting people, they go rob and kill people for no reason†(MSNBC) Organized crime is a well thought-out process of crimes planned to be committed. This process of organized crime is type of violence that is associated with MS 13. MS13 commits crimes from murder, rape, beating, drive-by shootings, drug dealing, smuggling illegal immigrants, trafficking weapons, prostitution, and kidnapping. Oscar Alv arez, Honduran National Police Minister, states, â€Å"cutting people in pieces, raping women, killing people for fun.They might be youngsters, they might be poor. But these youngsters are monsters† (Domash). MS-13 often leaves behind dismembered corpses, complete with the decapitated head, at the scene of their murders. Often a grim note is attached to the body. (TerrorPlanet) In the history of MS 13, they cut off their victims fingers and decapitate them. Sometimes they will cut off victims’ genitals and feed them to the dogs to show no mercy. One MS 13 gang member admitted that when he was in Houston, he robbed and beat a child. Then while he was in Texas, he killed a man by stabbing him three times.This MS 13 member was asked if the crimes he committed would increase his rank within the gang. He answered, â€Å"The crazier you are known to be, the more respect the gang gives you† (Logan). MS 13 thinks the police and the community does not realize how dangero us they are ; this leads their gang to go to extreme violence to get their point across that no one messes with their gang. If someone is brave enough to mess with MS 13, they will show no mercy and will make the crime even more brutal. MS 13 is becoming more dangerous and more organized. It is working its way up to becoming the next Mafia.The rapidly growing numbers of MS 13 is a violent threat to the United States. Throughout the United States, MS 13 have been sighted in 42 states, ranging up to ten thousand members overall. Mara Salvatrucha is even all over the world. It already has members in five other countries. The estimated number of MS 13 gang members across the world adds up to more than 700,000 (Domash). Since there are so many MS 13 members in the world, one can recognize a MS 13 member by looking at their tattoos, symbols, gang colors, graffiti, and hand signs. MS 13 gang members mark their bodies with tattoos.The most common tattoos are the letters MS and the number 13 . They have certain symbols that they might have tattooed on themselves. For example, teardrops represent the shooting of a rival gang member. If a member has three dots in a shape of a triangle next to his thumb, it means the gang member has killed someone. By tattooing their bodies it shows how MS 13 is not ashamed of the violent acts they commit. (Domash) Hand signs and signals are also apart of MS 13. The main hand sign the gang has are called the â€Å"double horns†. This hand sign is similar to the same symbol commonly seen displayed by heavy metal usicians and their fans.Also, when one is about to go into battle, or a fight, they will lift up both sides on the shoulders of their shirts to indicate he or she is about to start. Whenever a gang member rubs one’s stomach in a circle motion, the member is about to shoot someone, and whenever one brushes off one’s shoulder; the member is about to stab his victim (World’s Most Dangerous Gang). This lets t he MS 13 members know what is about to happen in the fight. Fights also play a huge role in initiation. To be initiated into a violent gang like MS 13, one has to be violent or have something violent done to them.The three main initiations that MS have are â€Å"walk the line†, â€Å"jumped in†, and â€Å"sexed in†. Whenever they choose to â€Å"walk the line† to join, they must perform a violent act (â€Å"Worlds Most Dangerous Gang†). A boy’s mission is to walk up to a group of rival gang members on the street and shoot at least one of them. In being â€Å"walked in†, after one commits their violent act, one cannot run from it, but walk away (â€Å"Worlds Most†). Being â€Å"jumped in† requires the one getting initiated, to be surrounded by the five strongest guys in the gang, and they will start to beat the person for thirteen seconds, epresenting the 13 in MS 13.The last and final way one can enter the gang is to be â€Å"sexed in†. Females are usually the only ones who have to go through this to get initiated. This is when a girl is has sexual intercourse with a minimum of six members of the MS 13. The whole point of being initiated into MS 13 is to show how dedicated the joining member is and how far they will go for MS 13. Since the inductee is now a permanent member of the gang, they have three jobs that they have to fulfill: to recruit others, collect money, and to kill (â€Å"World’s Most Dangerous Gang†). As in every business, MS 13 has to earn a living somehow too.According to the interview between Lisa Ling and Jester, a former MS 13 member, told her that certain blocks in L. A. are owned by MS 13. Whatever businesses are located on the street, must pay a twenty five percent protection fee to MS 13. They also collect money from selling drugs and taxing the drug dealers who want to sell drugs on their territory. These are the drugs they sell: crystal meth, cocaine, heroin, rock, weed, and various pills. Jester said, â€Å"If you need any kind of pills, don’t go to the doctor. (â€Å"Worlds Most†)When Lisa Ling asked Jester, â€Å"What if they don’t pay? Jester responded, â€Å"They always pay. Sometimes you’ve got to get aggressive with them† (World’s Most). MS 13 knows that they can get however much money that they want because they are such a fierce gang. One of the worst things that a member can do when joining the gang is to try and get out. In MS 13 there is no way to leave the gang without getting killed unless the escapee goes to the hospital, jail, or death (Logan). If any runaway member ever goes to the police and betrays their clique, MS 13 will make ure that their life ends quickly.Once one becomes a part of the gang, one is in it for life and there is no turning back or getting out. MS 13 is spreading its violent tactics across the United States, and it is growing larger in numbers, build ing an empire of strength and power. Their crime organization development continues to grow stronger and wiser as time goes by, and their growing population of MS 13 members in the United States will increase the crime rates. Before Brenda Paz was murdered by her own gang, MS 13, she emphasized the importance and loyalty that MS 13 gang members have.She stated, â€Å"You live for God, you live for your mom, but you die for your gang† (World’s Most†). MS 13’s control in America has shown that it is a major crime organization that cannot be stopped. They have complete control over their members which makes MS 13 an army of violence. Whatever is said is done. There is no negotiating. What MS 13 says goes. While the nation focuses on terrorism, the issue of gang violence has taken a lower priority. But to many, the violent acts of MS13 are more of an everyday threat that is being overlooked.

Business Model of Medical Device Contract Manufacturing Free Essay Example, 1750 words

The company was not in a position to compete on price with smaller but efficient rivals because of its higher internal costs. Once the company management identified that lack of an effective IT governance structure was the root cause of current net losses, the management hired a new CIO, Shawn Atkins with intent to formulate fruitful IT solutions and thereby to effectively integrate the operations of the company. All these factors point out that MDCM focuses on timely IT strategies in order to meet rapidly changing business trends and associated requirements. The MDCM strongly promotes product quality as its primary objective and therefore the company works closely with its customers. Through this practice, the company also intends to optimize designs for manufacturability and thereby to trim down manufacturing costs to some extent. The firm has set its motto as absolute commitment to delivering quality parts and assemblies on time (Integrity CMi. com). In short, customer satisfact ion is one of the major strategic goals of the firm at this time. In addition, the company tries to expand its business horizon on the strength of acquisitions of non-US based firms that have potential competencies in contract manufacturing. We will write a custom essay sample on Business Model of Medical Device Contract Manufacturing or any topic specifically for you Only $17.96 $11.86/page