Megaa Moda Private Limited

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Abstract

In March 2023, Megaa Moda Pvt. Ltd., one of India’s leading shrimp exporting companies, was stuck by an unreasonably high anti-dumping duty of 7.92% imposed by the US Department of Commerce. This had serious repercussions on the revenues of the firm as the US was one of its major markets. As Megaa Moda was the only exporter that faced such a large quantum of anti-dumping duty, challenging the decision was difficult. The US DOC’s decision was taken after the 17th administrative review. Though the review covered 187 frozen warmwater shrimp exporters, Megaa Moda was one of two mandatory respondents randomly selected by the DOC for individual review. The other mandatory respondent, NK Marine Exports faced a duty of 1.43% while the remaining 185 companies faced a duty of 3.76%. Megaa Moda exported shrimp to Europe and Asian countries including Japan, and China. The European Union was very stringent quality standards. However, Yogesh Gupta, the Managing Director of Megaa Moda, was confident that the company could successfully meet the quality standards set by the European Union. The company’s domestic sales volume was relatively low. The case discusses the choices facing Yogesh Gupta, and potential strategies that can be adopted to retain the market and export revenue.

Additional Information

Product Type Case
Reference No. CMA0826
Title Megaa Moda Private Limited
Pages 13
Published on Oct 25, 2024
Year of Event 2023
Authors Varma, Poornima ;
Area Centre for Management in Agriculture (CMA)
Discipline Economics, International Business, Marketing
Sector Agriculture and Animal Husbandry, Government, Trade
Learning Objective The main objectives of this case include: • To give an overview about the challenges in international marketing, especially for the small and medium scale exporters. • To provide an understanding of the export marketing process. • To deepen the knowledge about dumping practices by exporting firms and what are the different motives behind dumping. • To make participants learn the difference between dumping and counter-veiling duties. • To strengthen the conceptual understanding of profit maximisation through dumping. • To enhance the understanding of procedures involved in filing a dumping case. • To give an in-depth understanding of WTO’s dispute settlement mechanism. • To make participants aware of the political economy of dumping, reciprocal dumping and anti-dumping practices.
Keywords Anti-Dumping; Dumping; WTO; Export; Dispute Settlement; United States
Country India
State West Bengal
City Kolkata
Organization Megaa Moda Pvt. Ltd.
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