PROJECT ON

‘MARKET POTENTIAL OF FREIGHT FORWARDING BUSINESS,

MASTER OF BUSINESS ADMINISTRATION (MARKETING)

TABLE OF CONTENTS

Sr.No. Topic Page No.

1 Rational for the study 1-3

2 Objective of the study 4-6

3 Company Profile 7-29

4 Review of literature 30-36

5 Research Methodology 37-47

6 Data analysis and interpretation by

chart / graphs

48-54

7 Findings 55-56

8 Limitations 57-58

9 Suggestion 59-60

10 Bibliography 61-62

11 Annexure 63-68

1

LIST OF TABLES

TABLE NO.

TITLE

PAGE NO.

TABLE 3.1 Our core team 10

TABLE 3.2 Basic Knowledge for Freight forwarding 12

TABLE 3.3 Basic Knowledge for Freight forwarding 13

TABLE 3.4 Container Information 20

TABLE 3.5 Container Information 21

TABLE 3.6 Exim Process 22

TABLE 3.7 Exim process 23

TABLE 4.1 Documents requirement for air / sea freight import

34

TABLE 4.2 Documents requirement for export by air - clearance

and forwarding

35

TABLE 4.3 Documents requirement for export by sea - FCL (factory stuffing) - clearance and forwarding

36

TABLE 5.1 Share of in word export 40

TABLE 5.2 India’s Export during last 8 years 41

TABLE 6.1 Data analysis and representation 49

TABLE 6.2 Import Export activity 51

TABLE 6.3 Type of cargo’s deal 52

TABLE 6.4 Using FCL or LCL cargo 53

TABLE 6.5 Over all requirments of Exports 54

2

LIST OF FIGURES

FIGURE NO.

TITLE

PAGE NO.

FIGURE 3.1 Types of containers-40

19

FIGURE 3.2 Types of containers-20 20

FIGURE 3.3 Customers 24

FIGURE 3.4 Our Major customers 25

FIGURE 5.1 India’s exports 42

FIGURE 6.1 No of companies 50

FIGURE 6.2 Doing Import Export activity 51

FIGURE 6.3 Type of cargo’s deal 52

FIGURE 6.4 FCL or LCL cargo 53

FIGURE 6.5 Over all requirments of Exports 54

3

CHAPTER 1

RATIONALE FOR THE

STUDY

4

RATIONALE FOR THE STUDY Today’s rapidly changing business environment is creating intense competition among

corporations markets are changing faster now than in any other time in history. Product

life cycles are shortening and businesses must compete globally.

Freight forwarders perform a key role in any trade. The freight

forwarder is the architect of the international transport and plays an important role in the

growth of the international trade in India by facilitating exporters, shippers, importers,

customs/ports authorities etc.

The freight forwarding industry will continue to benefit from

growth in trade and certain structural advantages over carriers . Value is driven by

financial performance is driven strategic position. Strategic position must assessed in a

disciplined manner , which examines the discrete and interrelated activities within a

forwarder value chain to understand sources of synergy and options to increase value.

The Indian economy is one of the fastest growing in the world, but the boom is

not without its stops, starts, and bottlenecks, all of which also make themselves felt in the

country’s freight transport sector. In fact, according a recent study by the Confederation

of Indian Industry, the country needs US$330bn in infrastructure investment over the next

five years to sustain its economy’s growth at 8% annually. Inadequate port facilities, poor

road infrastructure and frequent power cuts prevent Indian industries from operating

efficiently and expanding sales. India needs to increase its spending on infrastructure

projects to 8% of the country’s gross domestic product from 4.6% now. In fact, despite

these obstacles, its India Freight Transport Report concludes the country will reach

average annual freight traffic growth of 10.2% in the 2007-2011 periods.

5

Strong economic and foreign trade growth is underpinning

the freight upturn. In the road freight sector, demand is boosted by door-to-door logistics,

the move to higher value/lower bulk shipments, the rising size of the vehicle fleet and the

new impetus to improve and extend the network, using private sector highway operators

and build-transfer-operate (BOT) schemes. Rail will experience steady but less

spectacular growth given the predominance of the state-controlled Indian Railways. All

other transport modes should experience faster growth, with international air cargo

turnover performing strongly as more private airlines join the market. Sea transport

through India’s major ports will also perform well. A major factor over the next few years

driving change will be the rising competitive pressures from cargo operators among

India’s immediate neighbours and main trading partners.

For the 2007-2011 forecast period we expect the transport and communications sector to

continue outpacing the economy as a whole. It will achieve average annual growth of

7.7%, versus 7.4% for overall GDP. The total value of transport and communications

GDP will rise to US$91.8bn in nominal terms by 2011, representing 7.6% of India’s

GDP.

India has an ability to improve the freight forwarding due to his better quality

of product. We improve the skill development in labour. To huge investment in research

and development .

We revise the market strategy for the expending for freight forwarding. Government of

India provides better facilities for its freight forwarder. Last few years this seek industry

of India we improve the technology for the production of better quality of product. I hope

India improve its freight forwarding for its policies.

6

CHAPTER 2

OBJECTIVE OF THE STUDY

TITLE

OBJECTIVE OF THE STUDY

SCOPE

7

TITLE

I have chosen my project title ‘MARKET POTENTIAL OF FREIGHT

FORWARDING BUSINESS, because this study gives me a wide exposure of areas

like Industry awareness, company, competitions, Market position, customer

expectations and market demands in Freight Forwarding.

OBJECTIVE OF THE STUDY

To analyze the market potential for providing the services related with

import export to the customers.

To know Import & Export industry very well.

To know the requirement of the customers

To know the Documentation part.

To analyze the current situation of Abhi Impact Logistics

To set up brand image of Abhi Impact Logistics in segmented market.

To know about market movement

To analyze the current services and their application

8

SCOPE

The study gives me a wide exposure of areas like Industry awareness,

company, competitions, Market position, customer expectations and market demands in

Freight Forwarding.

What are the current trends and their application and also scope of improvement

in it?

. It also gives me a deep understanding of the logistics industry about

both domestic as well as foreign market.

9

CHAPTER 3

COMPANY PROFILE

INTRODUCTION

COMPANY PROFILE

OUR CORE TEAM

MISSION

VISION

BASIC KONWLEDGE FOR FREIGHT

FORWARDING

CONTAINERS INFORMATION

EXIM PROCESS

CUSTOMERS

OUR SERVICES

10

INTRODUCTION

Freight forwarding is a service used by companies that deal in

international or multi-national import and export. While the freight forwarder doesn't

actually move the freight itself, it acts as an intermediary between the client and various

transportation services. Sending products from one international destination to another

can involve a multitude of carriers, requirements and legalities. A freight forwarding

service handles the considerable logistics of this task for the client, relieving what would

otherwise be a formidable burden.

Freight forwarding services guarantee that products will get to the

proper destination by an agreed upon date, and in good condition. The freight forwarding

service utilizes established relationships with carriers of all kinds, from air freighters and

trucking companies, to rail freighters and ocean liners. Freight forwarding services

negotiate the best possible price to move the product along the most economical route by

working out various bids and choosing the one that best balances speed, cost and

reliability.

Freight forwarding plays an important role in facilitating

international trade, fulfilling a number of distinct functions. In basic terms they act on

behalf of exporters to buy and manage transportation services. These usually include air

or sea freight , as well as land transportation services to move goods from the shipper to

the port .

Freight forwarding has become an increasingly complex and

specialized service in the current context of globalization, tight security regulations and

skills shortages.Maintaining a competitive advantage in such an environment requires

strategic planning and action, and it’s going to become more challenging as complexity

grows.

11

COMPANY PROFILE-

Abhi Impact Logistics Solutions Private Limited is incorporated under

'The Companies Act, 1956' & is having corporate office in Pune, India. Our logistics

services are at the forefront, offering state-of-the-art 3rd party / 4th party logistics

solutions to all customers. Abhi Impact Logistics is structured to provide logistics and

supply chain solutions to the growing global industry. Our comprehensive solutions

comprises of services like Logistics Consultancy, Warehousing, Transportation,

Packaging, International Freight Forwarding, Projects and Reverse Logistics.

ABHI IMPACT LOGISTICS SOLUTIONS PVT LTD was established in .7 October 2007.founded by Mr. Jitendra Joshi

12

Our core team TABLE 3.1

13

Name Designation Profile

Mr.

Jitendra

Joshi

CEO BE Electronics having over 13 years experience in logistics as

Operation head Dynamic Logistics, (Tata Motors, Ford spare part

division) Logistics Country head for Vishay

Components & Atlas Copco,.

Mr. V.R.

Fadnavis

Logistics

Consultant

BE Mechanical having over 30 years of experience in logistics as

VP TVS logistics, Divisional head Tata Motors, undertaken

various projects in many engg. Industries like Tata, Thermax,

Greaves, Escorts. Lead speaker for CII/MCCI seminars

Mr. Pankaj

Chhajed

CFO BE Civil having undertaken several infrastructure projects in last

7 years in constructing state of the art Warehouses. Currently

looking after the proposed 350,000 Sq.Ft. warehouse in Chakan.

Mr.

Balkrishna

Gawade

GM

Operations

Logistics expert having over 16 years of experience in defense,

3PL & MNCs such as Dynamic Logistics, Vishay Components,

Atlas Copco.

Mr. Dhiraj

Chhajed

Director

Operations

BE Mechanical having done Masters in Logistics from UK.

Handled various projects for Tata Motors & Thermax.

Mission

To provide cost effective, efficient and value added services to our esteemed

clients and to establish creative impact on their supply chain management.

Vision

To be the world class logistics solution providing company to meet growing

demands of global industry.

14

Basic Knowledge for Freight forwarding

INCOTERMS

Inco terms are ICC's standard definitions of trade terms and are internationally recognized

as indispensable evidence of the buyer's and seller's responsibilities for delivery under a

sales contract. TABLE 3.2

EXW FCA FAS FOB CFR CIF CPT

SERVICES Ex WorksFree

Carrier

Free

Alongside

Ship

Free

Onboard

Vessel

Cost &

Freight

Cost

Insurance

& Freight

Carriage

Paid To

Warehouse Storage Seller Seller Seller Seller Seller Seller Seller

Warehouse Labor Seller Seller Seller Seller Seller Seller Seller

Export Packing Seller Seller Seller Seller Seller Seller Seller

Loading Charges Buyer Seller Seller Seller Seller Seller Seller

Inland Freight BuyerBuyer/

Seller*1Seller Seller Seller Seller Seller

Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller

Forwarder’s Fees Buyer Buyer Buyer Buyer Seller Seller Seller

Loading On Vessel Buyer Buyer Buyer Seller Seller Seller Seller

Ocean/Air Freight Buyer Buyer Buyer Buyer Seller Seller Seller

Charges On Arrival At Destination Buyer Buyer Buyer Buyer Buyer Buyer Seller

Duty, Taxes & Customs Clearance Buyer Buyer Buyer Buyer Buyer Buyer Buyer

Delivery To Destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer

15

*1. There are actually two FCA terms:

FCA Seller's Premises where the seller is responsible only for loading the goods and

not responsible for inland freight; and

FCA Named Place (International Carrier) where the seller is responsible for inland

freight. TABLE 3.3

CIP DAF DES DEQ DDU DDP

SERVICES

Carriage

Insurance

Paid To

Delivered

At

Frontier

Delivered

Ex Ship

Delivered

Ex Quay

Duty

Unpaid

Delivered

Duty

Unpaid

Delivered

Duty Paid

Warehouse Storage Seller Seller Seller Seller Seller Seller

Warehouse Labor Seller Seller Seller Seller Seller Seller

Export Packing Seller Seller Seller Seller Seller Seller

Loading Charges Seller Seller Seller Seller Seller Seller

Inland Freight Seller Seller Seller Seller Seller Seller

Terminal Charges Seller Seller Seller Seller Seller Seller

Forwarder’s Fees Seller Seller Seller Seller Seller Seller

Loading On Vessel Seller Seller Seller Seller Seller Seller

Ocean/Air Freight Seller Seller Seller Seller Seller Seller

Charges On Arrival At Destination Seller Buyer Buyer Seller Seller Seller

Duty, Taxes & Customs Clearance Buyer Buyer Buyer Buyer Buyer Seller

Delivery To Destination Buyer Buyer Buyer Buyer Seller Seller

16

 

The 13 INCOTERMS

What are INCOTERMS?

Inco terms are a set of simple three letter codes which represent the different ways

international shipments may be organized. They allow sellers and buyers from different

cultures and legal systems to decide at what point the ownership and paying for freight,

insurance and customs costs transfer from one to the other.

Who decides what INCOTERMS mean?

The International Chamber of Commerce has set up strict definitions for each incoterm.

Choosing a suitable incoterm allows the buyer and seller to negotiate a price best suited to

their needs and to be confident that there will be no confusion over who pays the costs.

To ensure that the latest version is being used shipping contracts should refer to

"INCOTERMS 2000".

When should INCOTERMS be used?

It is not compulsory to use incoterms. However when things go wrong and disputes arise

it is much easier to sort out who is responsible for what if incoterms have been written

into the shipping contract. To be safe, incoterms should be decided upon in the

negotiation phase of any international purchasing contract.

How do INCOTERMS work?

Each INCOTERM is a three letter acronym related to where the seller's responsibility

ends. They should be written into the purchasing or shipping contracts. Some incoterms

require the changeover point to be named. As well as buyer and sellers there are

"carriers". They are the people who have a contract to transport the goods by land, sea, air

or a combination of modes. A seller will be given a bill of lading, way bill or carrier's

17

receipt, that document can be used to prove that the goods have been taken on by the

carrier.

There are four groups of INCOTERMS - "E", "F", "C" & "D"

Group:E

used where the seller does not want to arrange transport.

EXW - "Ex-Works" means the seller's only responsibility is to make the goods available

at the seller's premises, i.e., the works or factory. The seller is not responsible for loading

the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears

the full costs and risk involved in bringing the goods from there to the desired destination.

"Ex works" represents the minimum obligation of the seller.

Group:F-

used where the seller can arrange some transport within his/her own country.

FCA - Free Carrier, This term has been designed to meet the requirements of multi-modal

transport, such as container or roll-on, roll-off traffic by trailers and ferries. The seller

fulfils his/her obligations when the goods are delivered to the custody of the carrier at a

named point. If no precise point can be named at the time of the contract of sale, the

parties should refer to the place where the carrier should take the goods into its charge.

The risk of loss or damage to the goods is transferred from seller to buyer at that time.

FAS - Free alongside Ship, requires the seller to deliver the goods alongside the ship on

the quay. From that point on, the buyer bears all costs and risks of loss and damage to the

goods. F.A.S. requires the buyer to clear the goods for export and pay the cost of loading

the goods.

18

FOB - Free On Board vessel, named ocean port of shipment.

The goods are placed on board the ship by the seller at a port of shipment named in the

sales agreement. The risk of loss of or damage to the goods is transferred to the buyer

when the goods pass the ship's rail (i.e., off the dock and placed on the ship).

The seller pays the cost of loading the goods. –

Group:C-

used where the seller can arrange and pay for most of the freight charges up to the

foreign country.

CFR - (or C&F) Cost and Freight, Named ocean port of destination,

requires the seller to pay the costs and freight necessary to bring the goods to the named

destination, but the risk of loss or damage to the goods, as well as any cost increases, are

transferred from the seller to the buyer when the goods pass the ship's rail in the port of

shipment. Insurance is the buyer's responsibility.

CIF - Cost, Insurance and Freight, named ocean port of destination.

This is CFR with the additional requirement that the seller procure transport insurance

against the risk of loss or damage to goods. The seller must contract with the insurer and

pay the insurance premium. Insurance is generally important in international shipping

because transport companies have restricted liability for loss or damage.

CPT - freight/Carriage paid to, named place or port of destination.

This term means the seller pays the freight for the carriage of the goods to the named

destination. The risk of loss or damage to the goods and any cost increases transfers from

the seller to the buyer when the goods have been delivered to the custody of the final

carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for

all modes of transportation, including container or roll-on roll-off traffic by trailers and

ferries. When the seller is required to furnish a bill of lading, way bill, or carrier receipt,

19

the seller duly fulfils its obligation by presenting such a document issued by the person

contracted with for carriage to the main destination.

CIP - Carriage and Insurance Paid To named place or port of destination.

This term (also abbreviated CIP) is the same as "freight/carriage paid to" but with the

additional requirement that the seller has to procure transport insurance against the risk of

loss or damage to the goods during the carriage. The seller contracts with the insurer and

pays the insurance premium.

Group:D-

used where the seller can pay for most of the delivery charges to the destination

country.

DAF - Delivered at Frontier, named place of destination, by land, not unloaded.

This term means that the seller's obligations are fulfilled when the goods have arrived at

the frontier but before the customs border of the country named in the sales contract. The

term is primarily used when goods are carried by rail or truck. The seller bears the full

cost and risk in delivering the goods up to this point, but the buyer must arrange and pay

for the goods to clear customs.

DES - Delivered Ex-Ship, named port of destination, not unloaded.

This term means the seller makes the goods available to the buyer on board the ship at the

destination named in the sales contract. The seller bears the full cost and risk involved in

bringing the goods there. The cost of unloading the goods and any customs duties must be

paid by the buyer.

DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.

This term means the seller has agreed to make the goods available to the buyer on the

quay or the wharf at the destination named in the sales contract. The seller bears the full

cost and risks in delivering the goods to that point including unloading. There are two

variations of ex quay contracts: "ex quay duty paid" and "ex quay duty on buyers

20

account." In the first, the duty is paid by the seller. In the second, the duty also is paid by

the seller, but the buyer must reimburse the seller.

DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.

This term Delivered duty paid or under these terms, the seller fulfils his obligation to

deliver when the goods have been available to the buyer nucleated for import at the point

or place of the named destination. The seller bears all costs and risks involved in bringing

the goods to the point or place of named destination. There is no obligation for import

clearance.

DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.

This term represents the seller's maximum obligation. The term "DDP." is generally

followed by words indicating the buyer's premises. It notes that the seller bears all risks

and all costs until the goods are delivered. This term can be used irrespective of the mode

of transport. If the parties wish to make clear that the seller is not responsible for certain

costs, additional word should be added (for example, "delivered duty paid exclusive of

VAT and/or taxes").

21

Figur e 3.1

40' Collapsible Flat Rack 40' Platform

40' Reefer 40' High Cube Reefer

TYPES OF CONTAINERS – 40’

22

CONTAI NER I NFORMATION

40 FT. STANDARD CONTAINER

Dimensions: Length Width Height

Overall40' = 12192 mm 8' = 2438 mm 8' 6" = 2591 mm

I nternal39' 5.25" = 12022 mm 7' 5.625" = 2352 mm 7' 10.25" = 2395 mm

Door Opening7' 8.25" = 2343 mm 7' 5.75" = 2280 mm

Weights:

Max. Gross 67200 lbs = 30480 kg

Tare 8600 lbs = 3900 kg

Max. Payload 58600 lbs = 26580 kg

Cube: 2392 cu. ft. = 67.7 m3

TABLE 3.4

Figur e

3.2

23

20' Dry Freight 20' Open Top

20' Flat Rack 20' Tank

TYPES OF CONTAINERS – 20’

TABLE 3.5

CONTAINER I NFORMATION

40 FT. "High Cube"

Dimensions: Length Width Height

Overall40' = 12192 mm 8' = 2438 mm 9' 6" = 2895 mm

I nternal39' 3.25" = 12022 mm 7' 8.5" = 2352 mm 8' 10.25" = 2700 mm

Door Opening7' 5.75" = 2340 mm 8' 5.75" = 2585 mm

Weights:

Max. Gross 67200 lbs = 30480 kg

Tare 9150 lbs = 4150 kg

Max. Payload 58050 lbs = 26330 kg

Cube: 2697 cu. ft. = 76.4 m3

TABLE 3.6

24

Approach Client for Exim inquiry

Inquiry raised by Client for Import/Export (Sea/Air)

Make Entry in Inquiry Register

Request for quote (RFQ) to Suppliers

Supplier to quote at best rates with negotiations

Prepare Comparison Statement for Quotations received from suppliers

Select the supplier on the basis of Statement

Prepare Quote for Client and Submit to the Client

Approval of Quote from Client

Forward the Customer Confirmation to Operation Team.

Negotiations with Client

Approved

Revision

TABLE 3.7

25

Exim Process

Received Customer Confirmation from AGM

Get Shippers Contact Details with Order Confirmation / PO from Client and inform the same to supplier and get overseas agent details

Give our overseas agents details to Shipper as well as client

Get Scan Document from Client / Shipper

Get Shipment Pickup Confirmation from Supplier/ Suppliers agent and inform it to client

Get Booking status of shipment from Supplier and forward it to client

Get Pre-Alert from Supplier and submit it to Client

Get suppliers Bill along with CAN (ensure AILSPL name appears) and submit CAN with AISPL Invoice to Client

Collect Octroi amount from the client (if applicable) and follows up with the supplier for confirmation of delivery.

Get set of Bill of Entry/ documents from supplier and forward it to client.

Follows up with the supplier for customs clearance and delivery.

Ensure Supplier files B/E and sends the checklist. Forward it to client for approval. Collect the delivery address details from client & gives to supplier.

Upon checklist approval, AILSPL submits the DD details to the client collect the DD and hand it over to supplier.

CUSTOMERS-

26

  IMPACT EXPERTISE NETWORK Figure 3.3

1. Engineering 2. Automotive3. FMCG4. Retail5. Electronics6. Perishable7. Jewellary8. Agricultural9. Textile10. Chemicals11. Petroleum12. Fertilizers13. Pharmaceutical14. Construction15. Sports16. Power17. Information Technology18. Telecommunication

Our Major customers: Figure

27

3.4

-handle the Warehouse

28

- 80,000 Sq. Ft. Warehouse

- In-plant logistics

- In-plant logistics

- Transport managementPROJECTS IN THE PIPELINE

- Out-bound logistics solution

Our services-

Services offered by us-

International freight forwarding

Warehouse

3PL &4PL

Custom Clearance

Transportation

Logistics consultancy

Value added service-

Kitting

MIS Reports

Procurement

Sub Assembly

Gas Handling

Shrink wrapping

Order management

29

INTERNATIONAL FREIGHT FORWARDING

Air Freight

Our airfreight services help you to ship your cargo to almost every

destination worldwide. Our specialists have many years of experience in

the area of air cargo shipments. And with our good connection with major

world wire carriers, we are able to offer the best solution to compete with

time, safety, cost and space.

 

Our focus is on prompt and timely delivery of your shipments along with

constant communications so that you are in control of your cargo at all times.

Export Cargo Handling

Import Cargo Handling

Import and Export Cargo Consolidation

Door to Door Services

Sea freight

Through our network of experienced professionals, strong world shipping

connections and extreme flexibility, we are able to specifically respond to

whatever your shipping needs may be.

Warehouse

Abhi Impact Logistics offers to its client’s specialized state-of-the-art customized and flexible solutions forwarehousing and Inventory management based onJIT and FIFO.

Bonded & Non-Bonded Warehousing

Cold & Refrigerated Warehousing

 

   

 

CHAPTER 4

REVIEW OF LITERATURE

INTERNATIONAL FREIGHT FORWARDING

FREIGHT FORWARDING

CUSTOM CLEARANCE

TRANSPORTATION-

DOCUMENTS REQUIREMENT FOR AIR / SEA

FREIGHT IMPORT

30

INTERNATIONAL FREIGHT FORWARDING

INTERNATIONAL FREIGHT FORWARDING

Freight forwarders typically arrange cargo movement to an international destination. Also

referred to as international freight forwarders, they have the expertise that allows them to

prepare and process the documentation and perform related activities pertaining to

international shipments. Some of the typical information reviewed by a freight forwarder is

the commercial invoice, shipper's export declaration, bill of lading and other documents

required by the carrier or country of export, import, or transshipment. Much of this

information is now processed in a paperless environment.

The original function of the forwarder, or speedier, was to arrange for the carriage of his customers' good by contracting with various carriers. His responsibilities included advice on all documentation and customs requirements in the country of destination. His correspondent agent in far-away lands looked after his customers' interests and kept him informed about matters that would affect movement of goods.

In modern times the forwarder still carries out those same responsibilities for his client. He still operates either with a corresponding agent overseas or with his own company branch-office. In many instances, the freight forwarder also acts as a carrier for part of a movement it can happen that in a single transaction the forwarder may be acting either as a carrier (principal) or as an agent for his customer

On the first day in my company, I came across the knowledge of Export and Import.

To understand well about the condition of the current market, the company management

decided to have a marketing research for one week. While doing marketing research, initially

we collected / gathered the list of industry in and around Pune and started sending them our

company profile via e-mail. At the beginning our focus was to reach at B & C cadre

customers who are in need of a perfect logistics service provider.

We identified the exact need of such customers through our extensive market research and

discussions with our internal team. We found that C & D category customers do not get the

up to mark and cost effective services from the reputed Logistics companies or reputed

freight forwarders. The main reason identified is the volume of their export or import

shipment is very less; as a result the giant players in freight forwarding are seems to have less

31

focus on such clients because they generally look for the / interested in the clients who are

having huge activities / more volume of export or import shipments. And hence, identifying

this exact need of C & D category customers, I have started targeting these customers

because of which these customers would be getting the same excellent service level as “A”

category customers get from giant freight forwarders and at the same time my company

would also be getting a good business. If more number of customers, more number of

shipments. Like-wise, I had started focusing on these customers.

I met with many clients and by discussing the queries I got to know the requirement of

people and what kind of services is required. I was visiting 5-6 clients everyday and giving

company presentation about our services. The queries I collected from client about what kind

of services they want, got discussed in evening with impact logistics AGM (Assistant

General Manager).

After solving the Queries, I tried to tap the client. As I knew the clients requirement or

services they want, accordingly I mailed the competitive Quotes to the clients and kept

following up with them till I convert them into business. I with my Project Guide was giving

the services to existing clients as well as focusing on new customer. To be a good and “go

getter” marketing person in International Freight Forwarding / EXIM field, the person should

be well versed / aware of the international trade and activities carried out on day to day basis.

While marketing / selling of products of International Freight Forwarding / EXIM, any type /

kind of queries or questions are expected from a customer. Similarly there are also few

customers who are unaware of the activities but they are in urgent need to export or import

their product. In such situation, the marketing & sales person must be in a position to provide

a proper and fare guidance to the customer. Below are the basic and important knowledge

path ways that not only a marketing & sales person but any person in International Trade /

Logistics should be aware of.

32

Freight forwarding-

A freight forwarder is a third party logistics provider. A third party logistics forwarder

dispatches shipments via asset-based carriers and books or otherwise arranges space for those

shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.

Freight forwarders typically arrange cargo movement to an international destination. Also

referred to as international freight forwarders, they have the expertise that allows them to

prepare and process the documentation and perform related activities pertaining to

international shipments. Some of the typical information reviewed by a freight forwarder is

the commercial invoice, shipper's export declaration, bill of lading and other documents

required by the carrier or country of export, import, or transshipment. Much of this

information is now processed in a paperless environment.

Custom clearance-

It is a procedural activity which is performed by government personnel. The shipment has to

clear all the norms of custom clearance. Custom clearance differs from country to country.

Tariff classifications, value declaration, and duty management can increase costs. Customs

and security initiatives have imposed new regulations on companies that make it more

challenging than ever to trade internationally

Transportation-

It is the movement of people and goods from one location to another. Transport is performed

by various modes, such as air, rail, road, water, cable, pipeline and space.

Infrastructure consists of the fixed installations necessary for transport, and may be roads,

railways, airways, waterways, canals and pipelines, and terminals such as airports, railway

stations, bus stations, warehouses and seaports.

33

Documents requirement for air / sea freight import TABLE 4.1

Documents No. of copies

P. O. 1

Shipping Instructions 1

Commercial Invoice 2

Packing List / Packing Slip 2

HAWB / HBL 2

M.S.D.S. (in case of D.G. / Non D.G., chemical products) 2

In case of D.G. : to obtain UN class number from shipper and

accordingly make the shipment booking with airline / shipping line 1

Documents No. of copies

HAWB / HBL 1

Commercial Invoice 1

Packing List / Packing Slip 1

Copy of P. O. 1

Original Certificate of Origin 1

Drawing / Product catalogue / Technical write-up 1

M.S.D.S. (in case of D.G. / Non D.G., chemical products) 1

In case of D.G. : UN class number from shipper. 1

34

TABLE 4.2

Documents requirement for export by air - clearance and

forwarding

Documents No. of copies

Shipping Instructions 1

Commercial Invoice 5

Packing List / Packing Slip 5

SDF form 2

ARE1 / ARE4, C. Excise gate pass 2

N Form 4

M.S.D.S. (in case of D.G. / Non D.G., chemical products) 2

In case of D.G. : to obtain UN class number from shipper and

accordingly make

the shipment booking with airline / shipping line 1

TABLE 4.3

35

Documents requirement for export by sea - FCL (factory

stuffing) - clearance and forwarding

SDF form 2

ARE1 / ARE4, C. Excise gate pass 4

N Form (if applicable) 2

M.S.D.S. (in case of D.G. / Non D.G., chemical products) 2

C. Excise examination report on back of invoice. (in case of

LCL, the same is not required) 5

Packing List / Packing Slip 2

Note : Ensure that customer holds the valid Factory

Stuffing Permission for FCL factory stuffed containers

Post shipment export documents

Original set of Bill of Lading OR sea waybill / AWB (as the

case may be) 1

Customs attested Invoice and Packing List 1

Customs attested SDF form 1

Original copy of Shipping Bill 1

Customs attested ARE1 / ARE4 1

EP copy of shipping bill 1

CHAPTER 5

36

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

OBJECTIVE`

TYPES OF RESEARCH

ANALYSIS OF INDIAN TRADE

FREIGHT FORWARDING-

CUSTOM CLEARANCE-

SHARE OF INDIA IN WORLD EXPORT

INDIA’S EXPORT DURING LAST 8 YEARS

OBJECTIVE-

MARKET RESEARCH

PRIMARY DATA

SECONDARY DATA

Research Methodology

37

Meaning of research

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific topic.

In fact, research is an art of scientific investigation. The advanced learner’s dictionary of

current English lays down the meaning of research as a careful investigation or inquiry

especially through search for new facts in any branch of knowledge.

Objective`

The purpose of research is to discover answers to questions through the application of

scientific procedures. Though each research study has its own scientific purpose, we may

think of research objectives as falling into a number of following groups:

1. To gain familiarity with a phenomenon or to achieve new insights

2. To portray accurately the characteristics of a particular individual, situation or a

group

3. To determine the frequency with which something occurs or with which it is

associated with something else.

Types of research

Descriptive research

Analytical research

Applied research

Fundamental research

Quantitative research

Qualitative research

38

The above mentioned are the various types of research which a researcher can apply in

order to achieve one desired objective. Therefore to achieve the objectives of my research

I have used descriptive research.

This is based on proper research design to meet the objectives of the study.

ANALYSIS OF INDIAN TRADE

A review of India’s foreign trade since the commencement of planning reveals the

following important points:

1. Both exports and imports have grown considerably.

2. Except for two years (1972-73) and (1966-77), in all years since 1951 imports were

larger than exports.

3. Until about the mid 1980sthe export performance of India was very poor in

Comparison with other countries in general; it was very poor even in comparison with

several other developing countries. This is clear from the following facts:

a) The share of India in the total world exports fell from about 2 per cent in 1950 to

0.4 per cent in 1980. Since the mid eighties, there has, however, been some

improvement. In 2002 it was 0.8 per cent and the target set by the Ministry of

Commerce is one per cent by 2007.

b) India the 13th largest exporter in 1950 but there were 28 countries above India in

2005. This marks a slight improvement over the recent past.

c) India’s merchandise exports as a percentage of GDP had been stagnating around 5

per cent. Although it has improved since the liberalization, it is still very low (little

above 13 per cent) even in comparison with many other developing countries.

39

SHARE OF INDIA IN WORLD EXPORT TABLE 5.1

Year Share (%)

1950 2.0

1960 1.2

1970 0.7

1980 0.4

1990 0.5

2000 0.7

2006 1.0

2007 1.0

2008 1.0

4) The terms of trade have, on the whole, been favorable to India, although there was

deterioration in a number of years.

5) There has been a very significant change in composition of India’s exports.

Manufactured products one account for over three-fourths of the exports as against the

dominance of primary commodities in the early period.

6) They have been significant changes in the direction (i.e. the source of imports and

destination of exports) of India ‘s foreign trade.

40

TABLE 5.2

INDIA’S EXPORT DURING LAST 8 YEARS

Years Export (in millions) Growth Rate

2000 44560 21.0

2001 43627 -1.6

2002 52719 20.3

2003 63843 21.1

2004 83563 30.8

2005 103091 23.4

2006 115849 26.29

2007 1241600 28.27

2008

41

On X-Axis 1cm = Year

2000 1 2 3 4 5 6 7 80

20

40

60

80

100

120

140

44.56 43.82752.719

63.843

83.563

103.091

115.849124.6

INDIA'S EXPORTS

export ( mil-lions)

Series2

years

Expo

rt in

bill

ions

Figure 5.1

Merchandise export of the country nearly doubled to US$ 124.6 billion in the ending

2007-08 from 63.84$ billion from 2004 an annual compounded growth of 25 per cent

compared to 12.73 present in the previous years during 2007-08.

Objective-

On the first day in my company, I came across the knowledge of Export and Import.

To understand well about the condition of the current market, the company management

decided to have a marketing research for one week. While doing marketing research,

initially we collected / gathered the list of industry in and around Pune and started

sending them our company profile via e-mail. At the beginning our focus was to reach at

B & C cadre customers who are in need of a perfect logistics service provider. We

identified the exact need of such customers through our extensive market research and

discussions with our internal team. We found that C & D category customers do not get

the up to mark and cost effective services from the reputed Logistics companies or

reputed freight forwarders. The main reason identified

42

Is the volume of their export or import shipment is very less; as a result the giant players

in freight forwarding are seems to have less focus on such clients because they generally

look for the / interested in the clients who are having huge activities / more volume of

export or import shipments. And hence, identifying this exact need of C & D category

customers, I have started targeting these customers because of which these customers

would be getting the same excellent service level as “A” category customers get from

giant freight forwarders and at the same time my company would also be getting a good

business. If more number of customers, more number of shipments. Like-wise, I had

started focusing on these customers.

I met with many clients and by discussing the queries I got to know the requirement of

people and what kind of services is required. I was visiting 5-6 clients everyday and

giving company presentation about our services. The queries I collected from client about

what kind of services they want, got discussed in evening with impact logistics AGM

(Assistant General Manager).

After solving the Queries, I tried to tap the client. As I knew the clients

requirement or services they want, accordingly I mailed the competitive Quotes to the

clients and kept following up with them till I convert them into business. I with my

Project Guide was giving the services to existing clients as well as focusing on new

customer. To be a good and “go getter” marketing person in International Freight

Forwarding / EXIM field, the person should be well versed / aware of the international

trade and activities carried out on day to day basis. While marketing / selling of products

of International Freight Forwarding / EXIM, any type / kind of queries or questions are

expected from a customer. Similarly there are also few customers who are unaware of the

activities but they are in urgent need to export or import their product. In such situation,

the marketing & sales person must be in a position to provide a proper and fare guidance

to the customer. Below are the basic and important knowledge path ways that not only a

marketing & sales person but any person in International Trade / Logistics should be

43

aware of.

Freight forwarding-

A freight forwarder is a third party logistics provider. A third party logistics forwarder

dispatches shipments via asset-based carriers and books or otherwise arranges space for

those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.

Freight forwarders typically arrange cargo movement to an international destination. Also

referred to as international freight forwarders, they have the expertise that allows them to

prepare and process the documentation and perform related activities pertaining to

international shipments. Some of the typical information reviewed by a freight forwarder

is the commercial invoice, shipper's export declaration, bill of lading and other

documents required by the carrier or country of export, import, or transshipment. Much

of this information is now processed in a paperless environment.

Custom clearance-

It is procedural activities which are performed by government personnel. The shipment

has to clear all the norms of custom clearance. Custom clearance differs from country to

country. Tariff classifications, value declaration, and duty management can increase

costs. Customs and security initiatives have imposed new regulations on companies that

make it more challenging than ever to trade internationally.

Transportation-

It is the movement of people and goods from one location to another. Transport is

performed by various modes, such as air, rail, road, water, cable, pipeline and space.

Infrastructure consists of the fixed installations necessary for transport, and may be roads,

44

railways, airways, waterways, canals and pipelines, and terminals such as airports,

railway stations, bus stations, warehouses and seaports.

Market Research

I did work for Business Development through Market Research. Firstly I collected

data of companies that are producing goods and doing deal in Import and Export.

For collection of data I prepare questionnaire of 3rd party, 4th party, warehouse and freight

Forwarding. So that I could know that whom are doing work in this segment.

Then I divide market in segments.

Like:- Type A, Type B, and Type C

Type A:- For big industries

Type B:- For medium industries

Type C:- For small industries

After this I search the market that where are situated this type of industries around Pune

City. I got the right way to do work in some MIDC area like Chakan, Aundh, Hadapsar,

Hinjewadi, & Wagohli, Kothrud Industrial area, Paud road, Mundwa, M.G. road,

Peth area, perengut, pashan, solapur road, pune Mumbai road, shivaji nager, ranger

hills.

45

Primary Data

MIDC in Pune

1. Chakan 2. Hinjewadi 3. Hadapsar

These are the main industrial area where companies have their industrial plant.

In this area 40% companies are belonging to the SSI.

They basically produce through import some goods like: -

1. Agriculture

2. Manufacturing goods from imported chemicals.

3. Handicrafts

4. Handlooms

5. Gems & jewels

6. Leather & Footwear

7. Bio – technology

8. Engineering products

9. Information Technology

10. Ready made products

55% companies have activity of import and export with mostly by sea.

46

Secondary Data

Pune Business & Industries – Categories

Agriculture (27)

Automotive(43)

Chemicals(13)

Computers(154)

Construction(38)

Electrical & Electronic(80)

Financial Services(41)

Industrial Goods(117)

Medical & Hospital(16)

Plant & Machinery (83)

Scientific Instruments (16)

Services (23)

Tools & Equipment (29)

Transportation & Logistics (12)

47

CHAPTER 6

DATA ANALYSIS AND

REPRESENTATION

DATA ANALYSIS AND REPRESENTATION

48

DATA ANALYSIS AND REPRESENTATION

Queuing which industry you are coming under? TABLE 6.1

There are 6 main MIDC are in pune they follows.

1) Chakan 2) Bhosari 3) Hingewadi

4) Hadapsar 5) Pirangut & Pashan 6) Pimpri & Chinchwad .

Industries No of companies

Agriculture 27

Automotive 43

Chemicals 13

Computers & It 154

Construction 38

Electronics & Electricals 80

Financial services 41

Industrial goods 117

Medical & hospital 16

Plant & Machinery 83

Scientific instrument 16

49

Services 23

Tools & equipment 29

Transportation & logistics 12

Figure 6.1

No of companies

2743

13

154

388041117

16

83 1623 29

12AgricultureAutomotiveChemicals Computers & ItConstructionElectricals & ElectronicsFinancial ServicesIndustrial goodsPharmaceuticalPlant & MachineryScientific instrumentServicesTools & EuipmentTransportation & Logistics

This particular pie chart is showing that Out of 6 MIDC area in pune diffirent categaries

company over there.

50

Are you doing Import Export activity? TABLE 6.2

Exim unit Non Exim unit

55% 45%

51

55%

45%Exim Non Exim

Figure 6.2

Pie chart showing that 55% company are dealing Export , Import activities and 45%

are not dealing .

Which type of cargo’s deal? TABLE 6.3

Normal Perishable Hazardous

60% 12% 28%

52

60%

12%

28%

NormalPerishableHazardous

Figure 6.3

Basicaly chemical industries produces hazardous goods and dooing exim that are 28%.

Normal goods are 60%

Perishable goods are 12%

TABLE 6.4

Using FCL or LCL cargo. ?

FCL LCL

60% 40%

53

60%

40%

FCLLCL

Figure 6.4

60% companies are use FCL (Full Container Load ) these are the large scale companies

and seal the containner in company premises.

Remaining 40% are mainly SSI unit these are seal in port.

TABLE 6.5

Over all requirments of Exports .

Current

requirment

Future requirment Not requirment Own forwarder

54

55% 12% 15% 18%

0%

10%

20%

30%

40%

50%

60%

55%

12% 15% 18%

Series1

NO of companies

Figure 6.5

Current requirment of companies 55% Future requirment is 12% Not requirment is 15%

Own Forwarder 18% .

CHAPTER 7

55

FINDINGS

FINDINGS

56

From the analysis of the data I collected during the study I present following

Findings:

Awareness level about Abhi Impact Logistics Solutions Pvt Ltd among the

existing customers is high.

Most customers compared Abhi Impact Logistics Solutions Pvt ltd with

DHL and secondly with Fed Ex.

Satisfaction level of existing customers is satisfactory, however for the

future prospects more changes and efforts have to be taken.

Location of Abhi Impact Logistics Solutions Pvt Ltd is good as targeted B &

C customer.

There is almost 50% retention of customers visited the store before as per

the analysis.

Well awareness Abhi Impact Logistics Solutions Pvt Ltd in customer.

CHAPTER 8

57

LIMITATION OF PROJECT

LIMITATION OF PROJECT

58

There was some limitation during the project.

1. My Business Development scheme was limited to only the customers who are

based in Small Industries area.

2. When I was filling the Questionnaire most of customers did not interested to

give information to me.

3. Sometime permission was restricted in the company.

4. For filling questionnaire nobody was free without appointment.

5. Some persons did not give answers of some secret questions.

6. Our selection of Industries was random so it can be biased.

7. Difficulty in lack of about functioning proved as a hurdle in our research

CHATER 9

59

SUGGETION

SUGGETION

From the Internship I found some new techniques that are applicable for better

Improvements.

60

1. Company should establish back office for internal support.

2. Company should start some sales promotional activity for better attraction in

customer’s memory.

3. Company should focus on the transportation services.

4. Company should focus on B & C type customers for better profit.

5. Company should increase marketing executive team.

6. To concentrate on advertisement.

7. Above can be done by expanding its expertise network, also by improving

quality of services at a competitive price.

8. Also impact should make effort to make aware to customers about new trends in

3pl /4pl also telling them benefit of outsourcing.

9. .Last but not least impact should focus on slowly to big customers so that it can

expand the size of business and can create Brand name in market for itself

CHAPTER 10

61

BIBLEOGRAPHY

BIBLEOGRAPHY

Reference books

1) International Logistics

62

By Devid Pierre

2) International Trade and Export Management

By Francis Cherunilam

3) Export Import Procedures and Documentation

Dr.khushpat S.Jain

Referred website

1) www .impact-logistics.in

2) www.indiamart.com

3) www.google.com 4) Wikipedia.com

5) Yahoo.com

CHAPTER 11

63

ANNEXURE

Questionnaire-

Annexure

Questionnaire-

Questionnaire / Sales Report for Freight Forwarding and or customs clearance

64

Mktg / Sales coordinator's name

Date of Visit

Company Name

Address

Telephone / Mobile

Fax

E-mail

Website

Contact Person

Designation

Mobile No.

Person to whom visited

Designation

Mobile No.

Nature of business

Imports :

If the company has any imports ?

If yes, from which countries ?

Please specify the ports of loading.

What is the mode of transport ? (By air or by sea or both)

What are the items that they import ? (material / commodity)

65

What is the volume of imports in terms of number of shipments per month ? (sector / port wise)

Please state the sectors / ports here ==>

By Air By Sea By Air By Sea By Air By Sea By Air By Sea

If FCL, how many TEU / FEU per month ? (sector / port wise)

Please state the sectors / ports here ==>

TEU FEU TEU FEU TEU FEU TEU FEU

What is the volume of imports in terms of weight of the shipments per month ? (sector / port wise)

Please state the sectors / ports here ==>

By Air By Sea By Air By Sea By Air By Sea By Air By Sea

Kgs / MT ==>

What are the shipping terms ?

Who are their current freight forwarders and customs clearing agents (CHA) ?

Can AILSPL get an opportunity if AILSPL quotes their best rates and offer best services ?

Which filed / area of operation can AILSPL get to handle ? Viz. (1) Freight forwarding, (2) Customs clearance, OR both OR local transport (Mumbai / JNPT to Pune)

Mktg / Sales coordinator's views / comments :

66

If no imports, do the company has any plans of imports ? When ?

What will be the volume ? (in terms of no. of shpts and weight per month)

Prospective Customer ? ( Yes / No )

Customer's response : Positive, Good, Fair or Negative

Customer's willingness (1) to give information about his company, (2) to give an opportunity to AILSPL to start / begin the services. Positive Good Fair Negative

(Please tick at the appropriate column)

Overall impression of the customer about AILSPL & its products / services Positive Good Fair Negative

(Please tick at the appropriate column)

Next follow up date

Exports :

If the company has any exports ?

If yes, to which countries ?

What is the mode of transport ? (By air or by sea or both)

What are the items that they export ? (material / commodity)

What is the volume of exports in terms of number of shipments per month ? (sector / port wise)

Please state the sectors / ports here

67

==>

By Air By Sea By Air By Sea By Air By Sea By Air By Sea

If FCL, how many TEU / FEU per month ? (sector / port wise)

Please state the sectors / ports here ==>

TEU FEU TEU FEU TEU FEU TEU FEU

What is the volume of exports in terms of weight of the shipments per month ? (sector / port wise)

Please state the sectors / ports here ==>

By Air By Sea By Air By Sea By Air By Sea By Air By Sea

Kgs / MT ==>

What are the shipping terms ?

Pick up from which location ?

Who are their current freight forwarders and customs clearing agents (CHA) ?

Can AILSPL get an opportunity if AILSPL quotes their best rates and offer best services ?

Which filed / area of operation can AILSPL get to handle ? Viz. (1) Freight forwarding, (2) Customs clearance, OR both OR local transport (Pune to Mumbai / JNPT)

Mktg / Sales coordinator's views / comments :

68

What will be the volume ? (in terms of no. of shpts and weight per month)

Prospective Customer ? ( Yes / No )

Customer's response : Positive, Good, Fair or Negative

Customer's willingness (1) to give information about his company, (2) to give an opportunity to AILSPL to start / begin the services. Positive Good Fair Negative

(Please tick at the appropriate column)

Overall impression of the customer about AILSPL & its products / services Positive Good Fair Negative

(Please tick at the appropriate column)

Next follow up date

69