Professional Documents
Culture Documents
ABSTRACT
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CONTENTS
1 Introduction
2 Research Methodology
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5 Organization Structure
6 SWOT Analysis
7 Summary
CHAPTER 1
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INTRODUCTION
INTRODUCTION
There exist a striking difference between what is being taught in a class room and what
Even when theoretical knowledge is considered to be the basic foundation for any
profession , there should be a provision for practicing the knowledge that have been
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achieved through the theory in every professional course’s curriculum . A real time
exposure to the industry will help a management trainee to get new insights into the
organization study will certainly serve the above said purpose and will add the
trainee in order to get him familiar with the working of an organization as a whole. In
analyzed in detail. The study gives equal importance to every organ of an organization
and projects their importance towards the organization in achieving its objectives. The
study also gives the management trainee an opportunity to interact with the people
working in the organization and to internalize their good qualities. It is very important
from a trainee’s point of view to know how a problem is being tackled by the people
working in an organization.
An organization study will help in having a better idea about the functions of each
department in detail and the duties and responsibilities of each and every personnel in
a particular department. It will also provide better picture about the organization
structure and the hierarchy of various positions in the organization. The study also
gives a better understanding about the history of the company and its different phases
of development since its inception. It also helps in identifying and studying the various
policies, procedures and programs adopted by the company. The study identifies the
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industry to which the organization belongs and its importance in the world, country
and state. The study also throws light into the future plans of the company
So after the organization study the trainee will have a very clear picture of the
functioning and the methods adopted in the organization and will help the trainee in
knowing a lot about the basic functioning of the organization. This study will be
helpful not only for the trainee but also for anybody going through this report and will
packaging, and data processing. The demand for logistics industry is thus, derived.
The logistics industry plays a pivotal role in the economic growth of any
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efficiency with which goods are transported, stored, and distributed. Logistics also
plays a key role in the country’s ability to improve its position in international trade.
Logistics costs for various nations as a percentage of their Gross Domestic Product
(GDP) varies in the range of 9% to 20%. Several related trends could significantly
affect the rate at which more sophisticated logistics models are implemented.
• Growth of e-commerce
• Growth of 3rd and 4th party logistics services viz 3PL & 4PL
• Third party logistics providers (3PL) are typically addressed in the context of
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• Carriers and shippers are labels for providers and buyers of transportation.
and can be further distinguished into e.g. ocean freight shipping liners or ocean
liner shipping .
activities of a customer either completely or only in part. These functions can include
traditional activities such as transporting, warehousing, packaging, etc. but also less
and tracing.
This report is about the study I did at HALCON ICD, NASHIK DISRICT,
ICD is an attempt to understand the functioning of the organization. This study also
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OBJECTIVES OF STUDY
a) To know about the entire activities of this organization including history &
growth.
c) To study about the various departments, how they function & existing
d) This ICD give service to the 30% of Exporters and Importers who operates
e) This ICD gives services to the potential Indian agricultural exporters of the
country.
STUDY PLAN
Exploratory method was used for doing this Organizational study. Interviews were
serious involvement in the day to day operations was suggested by the CFS Manager.
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For collecting data various journals and articles about the Company containing details
were used.
1st Week: During the first day of Organizational study I met the CFS Manager and he
gave me the detail idea about the company. During this week I collected information
regarding the departments. By the end of that week I met the Marketing Manager and
executives, collected details regarding the marketing techniques which were being
2nd Week: Beginning of the second week I was put in the Operations of the port,
serious involvement in the operations helped me in getting the wide idea regarding the
opportunity to study about the different agents involved in each step of the operation in
Export.
3rd Week: During the third week I was taken to the Cargo complex, Warehouse and the
Reefer cargo depot and the Air cargo complex. The Manager gave me a brief idea
regarding the quality requirements need to be followed by any Cargo complex. The
Manager took me for a round through the Air cargo complex showed me regarding the
arrangements used for the shipment through Air. I met the Finance Department got a
4th Week: During this time I decided to meet the agents other than the CFS in Export
and Import process, I visited Global Freight Forwarders, studied regarding the
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different forms of shipping bill which were being used, Govt policies related to Export
and Import process. I also met the Asst. Commissioner of Customs ICD Janori,
5th Week: This week started with the HR sessions, I got opportunity to meet the HR
peoples from the Transworld Group of Companies. They explained to me the details
organization. I got a chance to meet Mr. V Kiran Kumar the CEO of HALCON, he did
CHAPTER SCHEME
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Chapter 1:- In chapter 1 I have included the introduction of the study. The objectives
of the study, reasons for selecting shipping industry for the study, study plan and
chapter scheme.
Chapter 2:- This Chapter contains the industry profile - world scenario, national
Chapter 3:- This chapter contains company profile. This explains the objective of the
company, the current stage of the company, stages of growth of company, objectives
of the company, its vision, future plan of the company and chart showing the structure
of the organization
Chapter 4:- This chapter contains the detailed description about the various
Chapter 5:- This chapter contains the SWOT analysis of the company, conclusion and
bibliography.
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CHAPTER 2
INDUSTRY PROFILE
INTRODUCTION
Wars have been won or lost on the strength of logistics capability or lack of
it. Although quite an old concept, logistics has been becoming efficient only since the
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globalization wave of the early 1990s and hence, the businesses supported by it,
better product/service and yet adding value to its investors. Triggering intense
competition, globalization, coupled with liberalization, forced both private and public
firms to commit themselves to making available to their customers the right material of
right condition, at the right time and place at the lowest cost — be it a product or a
service.
unorganized sector. There are various services provided by big and small players but
customers are rewarding to those who are efficient with quality services. Relations do
have entry benefit, but in absence of product support gets spoiled. Considering these
hard facts the players must always ensure the best of their services. In a briskly
changing logistics and distribution space the participants have to be equally fast paced
and adapt just as quickly. The customers are respecting to get the entire gamut of
one roof. So the companies must reposition themselves as ‘one window solution’ to
the customers.
twenty four hours of every day, seven days a week during fifty two weeks a year. Few
areas of business operations involve the complexity or span the geography typical of
logistics. Logistics is concerned with getting products and services where they are
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Shipping Industry is one of the most cyclic industries. Being a global industry, it is
affected by a whole gamut of factors which range from world economic condition,
political events, natural disasters to age of existing vessels, new vessel delivery
schedules, availability of ship building slots with ship yards, government regulations
etc.
Besides being characterized by volatile revenue stream, the shipping industry is also
highly capital intensive. A single ship can cost anything between US $20 Mn to US
$300 Mn. Commoditized product coupled with the fact that globally there are a large
number of players in this segment; no single company has significant pricing power.
The total world shipping tonnage, as on 1st January 2007, stood at 1014.55 Mn DWT
[Dry Bulk (35%), Wet Bulk (37%), Containerships (12%), General cargo (10%) and
others (6%)]. The Indian tonnage, as on 1st October 2007, stood at 15.08 Mn DWT
[Dry Bulk (34%), Wet Bulk (58%), Containerships (1%), others (7%)].
In 2007, the shipping industry saw a clear dichotomy between the wet bulk and the dry
bulk freight market. While the dry bulk freight rates moved from strength to strength
during the greater part of the year in 2007, the tanker market saw a downturn in the
freight rates as compared to the rates witnessed in 2006. For containership freight
market, 2007 was a year of consolidation after having witnessed a meltdown in 2006.
The wet bulk market remained suppressed in 2007 due to decreased movement of
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crude oil. The order book position at the beginning of 2008 was very high. With world
tanker fleet being young not much tonnage deletion is expected in the next 2-3 years.
will thus decide the balance between cargo movement and tanker tonnage supply.
Dry bulk cargo constitutes of two main commodities: iron ore and coal. Iron ore trade
is largely driven by the demands of the Chinese steel industry. Chinese iron ore
demand remained strong in CY 2009. As 83% of India’s iron ore exports are to China,
the trade volumes arising out of India will also depend, to some extent, on the
prospects of Chinese steel industry. The demand for coal is expected to remain strong
from the Asian countries. The orderbook position at the beginning of 2008 seemed
very high. A timely delivery of the new buildings will thus decide the actual tonnage
With 2-2.5 times relationship with GDP growth rate, the container trade volumes will
continue to grow exponentially. The cargo growth will occur due to increase in the
of newer commodities. With order book position at precariously high levels, it remains
to be seen whether the world containerized cargo is able to absorb the new tonnage.
India will be a major contributor to the incremental growth of cargo in all the segments
in the coming years. As per NMDP projections, the total cargo traffic at the Indian
ports is expected to grow at a CAGR of 13.58% up to FY12 with the POL, coal and
container traffic growth remaining strong. Though the cargo emanating from India is
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expected to remain healthy, the Indian shipping industry can take advantage of this
opportunity only if the Indian government plays a facilitative role. At present the most
pressing problem faced by the industry is that of manning. Under Merchant Shipping
Act, ships with Indian flags need to necessarily be manned by Indian crew. As there is
a shortage of officers (due to flight of officers to foreign flags), the Indian shipping
companies find it difficult to meet this requirement. Besides this the Industry is also
saddled with other challenges like onerous tax structures (12 taxes), multiplicity of
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AIR CARGO
INTRODUCTION
Ever since the brothers Orville and Wright designed and flew the world’s
first aircraft in 1903, the history of aviation has been one of extra ordinary technical
developments. As trade and commerce developed, the distance between east, west,
north, and south continents were reduced by the advancement in the aviation sector.
Today the most of the countries have a mutual network chain for the efficient
operation of respective. Airlines the world are competing with each other by providing
sophisticated facilities to its fleers and services to its goods.
With the introduction of wide- bodied air craft’s, freighter services, and
containerization, a new dimension has been added to air transport. The industry now
thinks of distribution in terms of speed, frequency and efficiency. Apart from
providing a high level of customer service, air cargo finds its legitimate place in the
marketing phenomenon, particularly in saving distribution cost. The maximization of
distribution costs is intimately linked with quicker deliveries, which in turn results in
economies in the ever- increasing cost of financing and stock- holding.
Due to a boom in the production of retail, textile and pharmaceutical goods air
cargo is a fast growing sector in India. Air cargo traffic is expected to register 8 to
10% annual gains over the next 5 to 10 years. According to industry insiders, over 2
billion shipments were handled in 2008.The growth rate for express air cargo is
between 20 and 25% per annum. Of the total tonnage handled by airports, 64%is air
express cargo. Moreover the top five airports handling 85%of the air cargo traffic of
the country.
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Couriers already offer cargo space on domestic flights between Mumbai, Delhi and
Chennai.
According to civil aviation minister Praful Patel, there is an overall 49% FDI
cap in the sector, but the mulling to progressively open up the sector. We have to
liberalize areas like air cargo, sea planes and helicopters and allow 74% FDI in these
areas. Due to the leap fogging of the Indian economy, the country will need 125
freighter aircrafts in next 20 years. At present, India has only 7 bigger freighters,
owned by blue dart express.
Hence liberalizing the freighters and freeing them of traffic right restrictions is
a major issue of consideration for fast growing economies like India. Considering the
growth of cargo within the bilateral regime, there has been increasing need for special
treatment for freighters.
Freighters are projected to account for 60% of the air cargo and major cargo
airlines are ramping up their freighter capacity. And although one could count the
number of dedicated cargo aircraft on finger tips, but the country needs (or would soon
require) 500 dedicated cargo aircraft. The estimated cost for converting two air-planes
into cargo carriers is little over $20 million.
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its strategic location in central India besides of course also possessing the advantage of
lying on natural east-west air corridor. According to sources in Indian, “rather than
acquire new planes, Indian will opt for converting its passenger air-planes to
freighters.
1. BAX GLOBAL
2. DHL DANZAS
3. UPS
4. JEENA & CO.
5. FREIGHT SYSTEMS
6. LINKS FORWARDER
7. AFL
8. HTL LOGISTICS
9. RYAL LOGISTICS
10. EASTERN CARGO CARRIERS
1. LUFTHANSA CARGO
2. UPS
3. CATHAY PACIFIC
4. EMIRATES
5. AIR INDIA
6. EVA AIR
7. KLM CARGO
8. SINGAPORE
9. EGYPT AIR
10. FEDEX
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• Air transport crates new markets or brings new market within reach. For
instance, air cargo has made it possible to tap the market for perishable in Gulf
countries.
• Air cargo extends markets. In the past, the expenses of setting up depots and
service centers overseas acted as deterrent against markets extension. With a
speedy service, direct from the factory or warehouse, air cargo has changed this
picture.
• Air transport extends the use of a mobile facility. There are instance when it is
more economical to move a production facility form one distribution area to
another than it is to move bulky from a central production centre. Thus, a
pattern can be moved from one area or even one county to another to mere a
sudden local demand.
• Air cargo takes the risk out of new markets. Full-scale test marketing can be
made directly from the manufacture’s warehouse without lying in any stocks at
all in the receiving countries.
• Air cargo assists in realizing the early earning potential of capital products. The
advantages of bringing a machine into production earlier can mean substantial
profits, which can be shared by the customer and supplier.
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Studies by ACI over the past several years have quantified the number of
employees at airport sites owing their jobs to air cargo operations. Taking the overall
figure of 4.5 million employees working at airports worldwide, ACI surveys
determined that about 15 percent of these jobs were directly related to air cargo
operations, giving a total of nearly 700,000 jobs in the cargo sector.
Only a few countries (India the most prominent) have embraced the logic
that all-cargo services should be treated separately from passenger traffic and have
moved to create liberalized regimes for cargo, including in some cases unilateral rights
for seventh freedom traffic. And in China, the decision to create the Shanghai free port
gave spectacular results.
The air cargo industry is already enabling the rapid integration of the world
economy, bringing efficiencies to complex production processes by moving
intermediate goods to regions which add the highest value at the lowest cost.
Air cargo also carries high value finished goods quickly from manufacturer
to consumer, cutting inventory costs and driving high levels of customer satisfaction.
The future of the industry depends to a large extent on governments recognizing that
market forces should continue to drive innovation. Excessive regulation is
counterproductive. It brings a high cost, by creating inefficiencies in the global supply
chain and thereby reducing the positive economic impact of air cargo on the economy.
The global air cargo industry represents almost 100 billion revenue ton-
miles of transportation, an estimated $254 million in direct revenue in 2009 and
substantially more revenues in related trucking and logistics services. The air cargo
industry is responsible for transporting approximately 29.9 percent of all international
trade (by some estimates, substantially more) and 34.6 percent of non-land-based trade
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The air transport industry is already quite large. Korean Air, Lufthansa,
Singapore Airlines, Cathay Pacific, and China Airlines are the largest combination
passenger-cargo carriers, measured by tons of capacity. American Airlines and United
Airlines provide substantial cargo service without the use of dedicated freighters.
Several, particularly European, airlines such as, Lufthansa, Air France, and KLM,
have particularly broad geographic coverage, offering service to more than 50
countries each. British Air offers cargo service to over 100. Atlas Air, Cargo Lux,
Polar Air Cargo, Nippon Cargo Airlines, and ABX are among the major dedicated
cargo airlines.
Air cargo offers clients the benefits of secure handling, speed and geographic
and temporal flexibility but, with per kilogram costs that average six times those of
ocean container freight, is relatively expensive. That high cost is compensated by
reduced inventory and warehousing costs but, unfortunately, air cargo often fails to
fully deliver on its promise. As a result, air cargo service has become increasingly
more integrated and ground- linked, characterized by door-to-door service from
shipper to customer, as opposed to airport to airport.
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Very little petroleum or petroleum products are shipped by air. Few motor
vehicles are shipped by air. These two general (two-digit SITC code) product groups
are the second and third largest in global trade and they continue to be important to
economic policy. Almost none of the trade in iron and steel is by air and these
continue to be important components of international trade.
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CHAPTER 3
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COMPANY PROFILE
operations in India.
The company was inaugurated on 15th March 2008, by honorable Defense Minister
Companies.
The Transworld Group was born out of a lifelong love affair with sea. In 1976, R.
Sivaswamy founded the Transworld Group and navigated through its formative years,
Ramakrishanan took over the company, building on the foundation laid by his father.
Under his dynamic leadership and ably assisted by V. Ramnarayan and S. Mahesh, the
group today, as expanded its array of activities from ship owning to providing total
logistics and shipping solutions to their customers, thus becoming and internationally
recognized business house of repute with all companies being ISO 9001-2000
qualified.
The objective is to ensure that every employee of the group in India is aware of
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conduct and action. Code of conduct applies to all employees of Companies in India
conducting its affairs in a fair and transparent manner by adopting the highest
Vision
“To be a premier organization, which offers total shipping solutions by providing high
quality innovation to its customers, stakeholders and be the market leader and
trendsetter in the Indian Sub continent, Arab Gulf and South East Asia region.”
Mission
To provide total transportation through quality service and be the customer’s first
choice
Company Values
Mutual Respect
Quality
Excellence
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Customers Orientation
The concerns & needs of the customers are the guiding force behind all their
endeavors
ORGANIZATIONAL STRUCTURE
MANAGEMENT
CHAIRMAN
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ORGANISATIONAL STRUCTURE
CEO
CEO
PROJECT HEAD
MANAGER EXECUTIVE
MARKETING OPERATIONS
EXECUTIVE
OPERATIONS
EXECUTIVE
GROUND DUTY STAFFS
MARKETING
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Will be investing more in market intelligence and will try best to serve the client
more than he expects. Also increasing focus area so effectively to increase the
range i.e Jalgoan, Dhule, Aurangabad etc, to focus more on market trends and
ways and mean to be more effective in choosing the client and their end to end
requirements. Create more opportunities by creating more pro – active approach
towards clients needs. To arrange a meeting on quarterly basis with the end users,
CHA’s, customs, for the smooth flow of work and more transparency in attending
any issues. For imports will have to meet all shipping line via some seminar in
Mumbai and promote HALCON.
2. ADVANTAES: AIR
• Cargo consolidation
• Warehousing
• Palletisation
• Lashing
• Chocking
• Fumigation
• Inspection services
• Placement of containers
4. CORE ACTIVITIES
• One stop custom clearance and post examination and clearance for
export-import consignments.
• Personalized services
6. WAREHOUSE
• Prefabricated structure
• Trolleys
7. YARD
• Separately demarked or 20’, 40’, open tops, reefers, tanks and ODC’s
• Fully fenced.
8. YARD EQUIPMENTS
CHAPTER 4
DEPARTMENTAL DETAILS
DEPARTMENT DETAILS
Four departments are involved in functioning of HALCON ICD. The transports are
1. Operations Department.
2. Finance Department.
3. Marketing Department.
OPERATIONS DEPARTMENT
DEPARTMENTAL STRUCTURE
PROJECT HEAD
CFS MANAGER
EXECUTIVE EXECUTIVE
OPERATIONS OPERATIONS
OPERATIONS
1. Import
2. Export
3. Custom Bonded
EXPORT
1. Job Application
Job application is received from the CHA (Custom House Agents), with details
regarding the Name of Exporter, Type of cargo, Shipping line, Gross weight
etc along with the D.O (Delivery order).
2. Job Order
If the CFS decides to take up the consignment, they issue a Job order with a
unique Job order number for each consignment. The D.O is then handed over
to the transporter to get the empty container from shipping line.
3. Stuffing
Stuffing are mainly of two types CFS Stuffing and Factory Stuffing, CFS
stuffing the cargo is stuffed in container inside ICD only, in case of Factory
stuffing the cargo is stuffed from the factory with the excise seal. Before
stuffing the Shipping bill needs to be received from CHA after customs
clearance.
4. Out of office
After the vehicle is stuffed the truck is discharged to the port, till the container
reaches the shipping line the liability is on CFS.
5. Receipt of Acknowledgment.
Once the container reaches the port on time the shipping line issues the
container number so and so has been received by them in good condition. Here
the liability is then transferred to the shipping line.
IMPORT
1. Job application
Job application is received from CHA seeking for the import activities to be carried
out through ICD
2. Job Order
If the ICD thinks to proceed with the consignment, then they issues a Job order
number for the import activity.
An intimation letter is provided to Customs JNPT that the clearance of the cargo
will be carried out through ICD, from here the liability of goods will be upon the
CFS.
The original SMTP and Import General Manifest or the FORM III is received from
the CHA while the container moves in to the ICD.
An intimation letter is provided along with the SMTP and IGM, the customs clears
the document and the seal is opened and cargo is de stuffed.
6. Bill of Entry
FINANCE DEPARTMENT
The finance department prepares the invoice for the customers and looks after the
accounts of different agents in the process as well as the pay roll of the company.
The accountant makes things up to date. All the data in accounts and finance is
computerized and maintained.
DEPARTMENTAL DETALS
MANAGER FINANCE
EXECUTIVE
ACCOUNTS
Financial risk
a) Currency risk- These risks emerge from the potential upward and
limits.
liabilities
a) Contractual risks- This refers to risks arising out of contracts that impose
H.R manager is in charge of the department. This department is responsible for the
industrial relations.
DEPARTMENTAL STRUCTURE
PROJECT HEAD
MANAGER HR
STAFF
that make up the Group, to create the conditions that cause employees to support
company objectives, to meet employee needs by taking into account their career
HUMAN RESOURCE
PROMOTION POLICY:-
Eligibility:-
The promotion to skilled category will be only from low skilled A, B and semi
skilled categories. In case of any vacancy in low skilled B category, the same will
be filled –up from low skilled a category. In case of any vacancy in specified
grades, applications will be invited from eligible employees and selection will be
a) Job knowledge
b) Attitude
c) Employee involvement
Job knowledge:-
For the position in staff and skilled categories, job knowledge will be assessed by
practical tests. The tests and interviews together will carry 75% of the total and
Attitude:-
manager and one department head other than the parent department.
Employee involvement:-
a) 5S activity
c) TPM
The assessment will be done by the HOD, based on the documented by the
Attendance-
Attendance records for the previous one-year will be verified for the purpose. Full
mark will be given to any employee who was present for all the working days and
RECOGNITION POLICY:-
Objective:-
Suitability:-
a) Job knowledge
b) Employees’ involvement
c) Attitudes
d) Flexibility
e) Attendance
f) Experience
g) Academic qualification
As completion builds for labor skills in a cost conscious environment, the need for
program is critical for keeping the employees fairly compensated and maintaining
package for its employees. After calculation of salary, the HR department sends
the report to finances department. By the end of every month, the salary will be
TRAINING POLICY
Objectives
training programs. For the Managerial staffs, it is for 5 days and for Non-
PERFORMANCE APPRAISAL
provided and periodic evaluation is done. Based on the evaluation their wages are
fixed.
INDUSTRIAL RELATIONS
in management. The industrial relation with local union is fairly good and there is
PROGRAMMES
their organization, receive adequate and ready assistance from any and all external
in such a way that each step brings about the desired change in the habits and
organization includes all types of projects which will improve, the life and work of
individual workers their families and community at large. Any organization that
keenly considers its employees, would in-turn be keen on providing quality of life
for them, which is very much possible through community development programs.
HALCON considers that the employee is not only a contributor of efforts to the
such their family circumstances and the total quality of life are seen as a concern.
A well sustained family enables a worker to enjoy a freer frame of mind at work
family welfare programs in the interest of the employees and the organization’s
prosperity.
In short, the organization that aims and values quality of life for the employees and
society has certain commitment for them and it is necessary that the organization
programs.
MARKETING DEPARTMENT
HALCON has special tariff rate for carrying out the import as well as export
through their ICD. These rates are competitive rates and best service designed for
containers used for the purpose. The main areas of stuffing are Pimpalgoan,
ICD stuffing. Marketing executives meets the Nashik exporters and convey them
the service ICD gives as well as the benefit exporters/importers are gaining from
the same. The exporters/importers don’t have to depend on JNPT for custom
clearance they can have it over here and better services are provided by the CHA.
Within a short period of eleven months HALCON has 42 potential clients, which
includes Mahindra & Mahindra, Bhalerao Agro, MDB chemicals and many others.
HALCON has a great wide client base from Industrial, Agricultural to Consumer
end products.
Out of current existing 42 clients 22 are Industrial products, 5 are Agro Exporters
HALCON receives revenue according to the cargo weight they have handled till
date tonnage for sea cargo and Kgs incase of Air cargo.
P e rce n t
Out of the total tones handled 28% are Agricultural products, 12% Industrial goods
DEPARTMENTAL STRUCTURE
VICE CHAIRMAN
PROJECT HEAD
CFS MANAGER
MANAGER
MARKETING
EXECUTIVE
MARKETING
1. Customer requirements:
2. Enquiry:
In receipts of the order the company sends the price list, time of delivery etc.
3. Price negotiation:
In order to make the customer satisfied, negotiations are made in prices and
according the type of cargo and weight of cargo. Even fixed price is given for
will provide service on agreement of full payment in cash. Mainly goods are
a. Customer enquiry
1. Enquiry register
3. Complaint register
DOCUMENTATION
always protects the personal interest of any businessman and also tries to uphold
the rules and regulation of the trading nations. Documentation protects the revenue
payment and receipt and also maintains a proper equilibrium not only between the
person and nations but also between the final customers of product and the
exporter of the product. Whenever a person fails to prepare proper documents for
his trade or business, it may lead to various problems like non clearance of goods
by customs authorities, nonpayment for the goods, and slow delivery of goods,
even dumping of old goods may take place when documents are not proper.
The shipment of goods are to be made by drawing of Bill of Exchange which have
having actual shipment made and also the mandate of the seller made out on the
buyer to pay a certain specified amount or sum to the bank or the individual
Contracts made by the buyers and sellers are not always the same. All these specify
EXPORTS DOCUMENTS
1. Job Application.
This is issued by the CHA, requesting for the consignment to be carried out
Exporters, Cargo and shipping line. D.O need to be produced at this stage.
2. Job Order.
This is issued by the CFS to the transporter for taking up the consignment,
D.O is provided to the transporter for taking the empty container from
container yard and this document also gives a unique Job order number
3. Packing List
note. A separate packing note is prepared for each container. A packing list
shows the content of the entire consignment. The customs authorities and
importer.
4. Certificate of origin
from a particular country. For this purpose they need a proof that the goods
origin is also required to check that the goods from prohibited countries are
government,
1. Indian exporter benefits indirectly the benefits that accurse to the importer
established exporter to increase the market share and so importer upon the
manufactures the product and the company is not in the black list of RBI.
1. Shipping order
When the exporter reserves spaces on a ship for transporting the goods, the
shipping company confirms the same by issuing a shipping order. A shipping order
gives details about the route, the approximate dates on which the ship will reach
various port and freight charges and the other terms and conditions.
2. Bill of lading:
agent acknowledging that the goods mentioned in the bill of lading have been duly
received for shipment or shipped on board a vessel and undertaking to deliver the
goods in the like order and condition as received to the consignee, provided that
the freight and the other charges specify in the bill of lading have been duly paid.
2. Contract with the carrier. It contains the terms of contract between the shipper
which will be indicated by the importer before the shipment takes place. Normally
2 copies of bill of lading are prepared together with a number of the non negotiable
copies.
4. Shipping bill:
A shipping bill is required by the customs. It is only after the shipping bill is
stamped by the customs the cargo is allowed to cater to the docks. The aligned
shipping bill has been prepared after taking into consideration. The requirements of
the customs publish in notice no. 39 which suggests a uniform shipping bill for
different categories of exports, such as duty free goods, dutiable exports and goods
Declaration which as not been involved in shipping bill can be taken as implied. To
5. Letter of credit:
A letter of credit is a written undertaking issued by the buyers bank agreeing to pay
a certain sum of money within a stipulated period against set of documents. The
buyer instructs to the bank called, the issuing bank, to open a letter of credit in
favor of the exporter. The issuing bank will instruct a correspondent bank in the
exporter’s country to make the payment or to pay, accept or negotiate the bill of
exchange provided the stipulated documents have been received by that bank and
the terms and conditions stipulated in the credit have been complied. They are used
6. Bill of exchange:
writing, addressed by one person to another signed by the person giving it, required
may be either a sight bill or a time bill. A sight bill is required to be paid
This certificate is issued by the negotiating bank that (exporter’s bank) certifying
that the bill covering the particular consignment has been negotiated and the
payment has been received in the manner specified under the exchange control
regulations.
IMPORT
There is normally little variation in the documentation essential for trade from
1. Letter of Credit
This is applied for making payments for imported goods, once the required
papers are handed over. A letter of credit mainly says that the importers
order
2. Purchase Order
The buyer may need to prove the order to his bank to organize a provisional
3. Certificate of Origin
certain other countries, and may apply duty to these commodities or ban
them altogether. On the other hand, there may be tax benefits on items from
4. Bill of lading.
sent by sea route, as proof that the commodities have been sent by the
supplier.
5. Airway Bill.
shipment.
If the buyer requires examination o goods prior to shipment, these are vital
buyer’s requirements.
7. Packing List.
The list of all of the cardboard boxes within the container and the contents
8. Invoice.
9. Others.
These are other details requirements from country to country. For instance,
Australia has strict quarantine limitations governing the trade of animal and
food items. You would need to secure a permit, or subject your items to an
inspection or both.
payment of customs duty on the dutiable imported goods till such time they are
cleared into the domestic area or are exported. It also provides custom control over
the movement of dutiable imported goods and accounting thereof with a view to
Sections 2(43), (44) and (45) of the Customs Act, 1962 are also relevant.
may be of two types, public or private. Whereas the former are appointed, the latter
are licensed under the authority of Sections 57 and 58 of the Customs Act, 1962,
respectively. Public warehouses are usually set up by public bodies such as public
sector enterprises, though private operators are also allowed to establish public
warehouse provide common user facility and goods imported by anybody may be
stored therein.
In contrast, the private warehouses are licensed to private persons and only the
However, other imported goods in respect of which the facility for deposit in a
public warehouse are not available may also be deposited in a private warehouse.
Commissioner of customs for the deposit o dutiable goods on which duty has not
4. Chalk
5. Explosives
6. Fireworks
7. Dried fish
8. Perishable goods
approved places
11. Any other goods, which Commissioner may consider to be unsuitable for
warehousing.
bonded warehouse shall be clearly marked on the principle entrance to the customs
bonded warehouse or in any other place the proper officer may approve and shall
In case of a Duty free shop the word “Duty Free Shop” and the number allocated to
a free shop shall be clearly marked on the principal entrance to the duty free shop
or in any other place the proper officer may approve and shall be removed when
the duty free shop or in any place the proper officer may approve and shall be
removed when the duty free shop ceases licensed as such. A person who
fined.
In the event that a notice is given by a proper officer to an owner of any goods
owner shall, within the period specified in the notice, enters the goods for home
The goods that have not been removed from a warehouse within three months from
the date they were warehoused may with the written permission of the
spirits,
dealers.
If such goods are not re-warehoused as above, they shall be sold by public auction
after one month’s notice of such sale has been given by the proper officer by
If such goods are of perishable nature they may be sold by the proper officer
without notice, either by publication or private treaty, at any time after expiry of
goods, if the rate of duty is ad-valorem. The customs value is to determine the duty
to be paid on the imported goods. It constitutes the taxable basis for customs
duties. It is also an essential element for trade statistics, for monitoring quantitative
TECHNICAL DEPARTMENT
quality management system under this department. Various quality policies are
QUALITY ASPECTS
quality plan. Periodic review and audit mechanism ensure to compensate with the
quality plan. Quality of the production starts right from the raw material. Material
sophisticated testing facilities ensure that the product will meet stringent quality
standards.
a well – equipped lab for testing the standard quality of the product. The quality
control lab checks all raw materials before issuing for production. Ladle samples
are taken in every pour for checking the chemical composition of the product for
QUALITY OBJECTIVES
Quality objectives are framed based on Quality Policy and the Business plan.
Objectives are deployed at various levels and functions through Policy Department
QUALITY POLICY:-
The quality system consists of quality manual, procedures, process modules, work
QC-QUALITY CIRCLES:-
Circle (QC). A QC is a group of workforce level people, usually from within one
problems that occur within their department. QC members select the problems and
the worker and those concerned with the well-being of the company.
COMPANY:-
b) It reduces conflicts
Perhaps the most important benefit of QC is their effect on people’s attitude and
behaviour. QC makes the workers to feel that the management values their ideas
and suggestions. The recognition of their ability to think and to contribute is a great
motivating force, which in-turn will be helpful in creating right culture for
which provide details of the resources needed. Top management review and
approve annual budget. During the year, if any other resource requirement is
identified for the effective functioning of QMS, top management review and
approve it.
TRANSPORT DEPARTMENT
Logistics limited.
The container can be of two types can be 20 feet and 40 feet in case of FCL and the
In export the delivery order is handed over from the CFS to the transporter, the
transporter goes to the container yard and picks up the container of concerned
shipping line. The container is bought either in 20 feet trailor or 40 feet trailor.
The container is taken to factory incase of Factory stuffing and to ICD incase of
CFS stuffing. After stuffing process is over the container is sealed by the customs.
When sealed the transporter hands over ELR copy to CFS. Transporter becomes
The container is then taken to port it has to be in port two days before the vessel
sets for sailing. Transporter then hands over the Custom sealed cover to CHA in
concerned port which needed to be handed over to the Customs office in Port.
The transporter is given the delivery order and CFS provides the intimation
to Customs at JNPT that the consignment is undertaken through ICD. The customs
permits the transporter to take the container from the customs bonded area in port.
The transporter brings the container to the ICD, CHA has to collect the Bill of
lading, SMTP and IGM. The transporter should ensure that the container is in good
condition. The customs clearance has to be taken place and the seal is broken in
CHAPTER 5
SWOT ANALYSIS
SWOT ANALYSIS
venture .Here the overall atmosphere at the company, organization culture, attitude
of workers, past performances of the company, recent changes in the industry and
Strength
• Service of customs is available all around the clock. The burden on JNPT
can be reduced.
Weakness
The unavailability of skilled labors in this industry is the common weakness seen
across the country. Also the company has poor Information Technology
applications.
Opportunity
The ICD completely depends on the exporters and importers in that locality.
and Grapes as well as Industries in Nashik are the future opportunity of HALCON.
The all around supply of Onion’s to the export market is other opportunity for
HALCON.
Threat
The unawareness among exporters in using ICD is the major threat HALCON
faces now.
The lacks of professionalism among the agents like CHA’s are affecting the
business.
CHAPTER 6
CONCLUSION
CONCLUSION
project in HALCON. The duration of the study was one month. The objective of
about the functions of the different departments. SWOT analysis was also carried
the company and see the difference between theory and practice.
customers for improving their export/import activities and getting the most value
for money.
as Quality management. It has succeeded in utilising the port city to the maximum
effective operating process. It follows the functioning of LAN, which saves lots of
The company provides best services to the agents involved in the business like
CHA, Customs and Transporters. Also provides best service to the clients ranging
A fair wage system prevails in HALCON. There is a better working condition and
Constant touch with its current international technology and regular up gradation
of operational method and have made HALCON a truly international company
both in terms of its products and outlook.
HALOCN’s success lies in its simple principle of commitment to give the best to
the customers.