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Master of Business Administration

ABSTRACT

The organization study was done in HALCON a unit of ‘Transworld logistics,


Nasik. The basic objectives of the study was to have a general awareness of the
functioning and management of various departments of the organization, and to
understand the organization structure, to make an analysis of the organization
performance, and to develop an understanding on the management practices followed
in various areas. The methods used for the study was observation, explorative research
method. I have done a SWOT Analysis about the company on the basis of my
findings.
The identification done by me as strength is the Company is having a highly efficient
technology department and quality of the products they offer. From the findings I
came across the basic weakness as the over dependence on technology but a wide
opportunity is there before the company as there is a rapid increase in the usage of
silicon and its derivatives. The main and basic threat is from the part of government as
in the form policies regarding the mining process. More details regarding the company
and findings will be discussed throughout the report.

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CONTENTS

Chapter Title Page No.

1 Introduction

2 Research Methodology

3 External Environmental Analysis

4 Internal Environmental Analysis

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5 Organization Structure

6 SWOT Analysis

7 Summary

8 Finding & Conclusion

CHAPTER 1

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INTRODUCTION

INTRODUCTION

There exist a striking difference between what is being taught in a class room and what

is being actually practiced in the industry, or more specifically in an organization.

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

functioning of an organization and in improving his intellectual horizon. An

organization study will certainly serve the above said purpose and will add the

required practical knowledge into the armory of the future managers.

An organization study implies a comprehensive and systematic approach adopted by a

trainee in order to get him familiar with the working of an organization as a whole. In

an organization study each and every department in an organization is observed and

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

give a clear picture about the organization.

The study entitled “ ORGANIZATION STUDY’’ in HALCON, NASHIK DIST. is

conducted to ascertain the organizational and departmental details including

Operations, Marketing, Accounts, Finance and Human Resource Department.

The term ‘Logistics’ is defined to encompass activities including multimodal

freight transportation, material handling, warehousing and order processing,

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

country. Logistics costs have high impact on operational efficiencies of companies in

the manufacturing sector. The competitiveness of the industry is linked to the

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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.

The additional trends that emerged were the:

• Growth of e-commerce

• Shift to smaller shipping quantities

• Migration to customer-direct delivery, and

• Growth of 3rd and 4th party logistics services viz 3PL & 4PL

DEFINITION OF LOGISTICS SERVICE PROVIDERS

There are different classifications of Logistics Service Providers.

• Third party logistics providers (3PL) are typically addressed in the context of

long term outsourcing of logistics activities by a manufacturer.

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• Carriers and shippers are labels for providers and buyers of transportation.

• Freight forwarders are referred to as international trade specialists, offering a

variety of services to facilitate the movement of international shipments.

• Shipping lines and shipping companies are conducting activities of transport

and can be further distinguished into e.g. ocean freight shipping liners or ocean

liner shipping .

Logistics service providers are defined as companies, which perform logistics

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

conventional activities as those related to custom clearance, billing as well as tracking

and tracing.

ABOUT THE STUDY

This report is about the study I did at HALCON ICD, NASHIK DISRICT,

MAHARASTRA, as a part of my curriculum. The organization study at HALCON

ICD is an attempt to understand the functioning of the organization. This study also

tries to know the various departments in bird’s eye view.

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OBJECTIVES OF STUDY

a) To know about the entire activities of this organization including history &

growth.

b) To familiarize with an organizational environment.

c) To study about the various departments, how they function & existing

hierarchy in respective departments

d) To study the vision, mission & profile of the company.

e) To probe into future plans of the company.

REASONS FOR SELECTING THIS PARTICULAR COMPANY

This company is being selected for following reasons;

a) This company is concentrating on global business.

b) This is the only Air/Sea Cargo complex in the country.

c) This is a developing industry.

d) This ICD give service to the 30% of Exporters and Importers who operates

through JNPT, MUMBAI.

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

conducted with departmental heads of the company. To get an idea of operations,

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

followed by the organization.

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

Organization. Involvement of Customs in the operations was appreciated. Had an

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

brief ideas of how the invoices were prepared.

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,

Nashik. They explained to me in brief how customs have transformed themselves to be

a professional agent, to actively participate in the operations.

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

regarding the source of recruitment and training procedures implemented by the

organization. I got a chance to meet Mr. V Kiran Kumar the CEO of HALCON, he did

explain about the future plans of the company.

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

scenario and state scenario.

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

departments of the company and charts showing the departmental structure.

Chapter 5:- This chapter contains the SWOT analysis of the company, conclusion and

bibliography.

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CHAPTER 2

External Environmental Analysis

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,

worldwide, have been pushed for competitive balance-sheets, providing consumers a

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.

Logistics industry is estimated to be Rs.3,50,000 core industry dominated by

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

operations, a complete logistics package catering to every transportation need under

one roof. So the companies must reposition themselves as ‘one window solution’ to

the customers.

Logistics is unique; it never stops! Logistics is happening around the globe;

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

needed when they are desired.

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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.

A probable slowdown in US economy and its consequent impact on world economy

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

addition and consequently the demand supply balance.

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

volumes of the currently containerized commodities as well as due to containerization

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

regulations, falling cargo support from TRANCHART, infrastructure constraints etc.

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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.

AIR CARGO SET TO GROW RAPIDLY ON THE WINGS OF FREIGTER


PLANES

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.

Already international freighter majors as Lufthansa cargo, Emirates sky Cargo,


Cathay Pacific and SriLankan Cargo are expanding their Indian capacities. Indian
domestic carriers like Kingfisher Airlines, GoAir, Jet Airways and Air Deccan also
planned to launch dedicated cargo operations while Blue Dart Aviation and First Flight

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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.

According to European aircraft manufacturer Airbus, “India will require at


least 125 dedicated cargo planes to supplement the economic growth. It will also
require nearly 90 dedicated freighters to cater to international air cargo traffic
requirements.” India will require more direct freighter flights following the growth in
retail sector coupled with boom in exports.

The forecast of 125 freighters is in addition to passenger planes, which


have huge belly space to carry cargo. According to the civil aviation minister, “Indian
airlines and Air India will convert their older aircraft into cargo aircraft and use
Nagpur as the base.” The choice of Nagpur stems from the fact that it could effectively
act as the country’s cargo hub for the South East, Middle East and even Europe, due to

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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.

TOP 10 IATA AGENTS-INDIAN MARKET

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

TOP 10 AIRLINES-INDIAN MARKETS

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 cargo offers the following advantages in market exploitations.

• 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 spreads seasonal demands. As many products have a seasonal


demand, the manufacturers are often faced with the problem of over-
investments; and they cannot take full advantages of the peak demand. With
the introduction of air cargo, the whole world can be regarded as the home
market and the peak demand spread over a longer period.

• 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 offers the advantage of flexibility, security and regularity in


comparison with sea transport.

• 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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AIR CARGO - QUIET ECONOMIC POWERHOUSE

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 IMPACT OF AIR CARGO ON THE GLOBAL 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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with an annual value of $2.7 trillion in 2004. With time-definite international


transactions, production flexibility and speed characterizing much of the new
economy, it is nearly certain that air cargo will play an increasingly vital role in the
global economy.
No other means of transportation is better equipped to meet the economic
realities of the new era where global sourcing and selling, and just-in-time logistics,
require that producers receive and ship smaller quantities more frequently, quickly and
reliably over long distances. Scheduled air cargo service providing an estimated
4,396,353 tons of weekly air cargo capacity is available at over 3,400 airports in 220
countries. Charter and integrated express companies provide additional capacity.
.
THE EVOLVING ORGANIZATIONAL FORM OF THE AIR TRANSPORT
INDUSTRY

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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TYPES OF GOODS SHIPPED AND THE INDUSTRIES DEPENDENT ON AIR


CARGO

Air transport is critical to the movement of goods in national and global


supply and distribution chains. From the beginning, air transport specialized in high
value-to-weight products, perishable goods, emergency deliveries for unanticipated
shortages, and products requiring the security of increased attention. High value-to-
weight ratios imply a relatively light transportation cost burden and high inventory
costs if goods are long in transit. Highly perishable goods incur a significant decrease
in product value with any delay.
The air cargo industry has thrived on the rise of industries incorporating
high levels of knowledge into lightweight goods but the industry has been able to
move down the value-to-weight ladder. New economy products such as
microelectronics, pharmaceuticals, aerospace components, medical devices, and other
high value-to-weight products account for close to three-fourths of international air
cargo by value. Nevertheless, the use of air cargo is quite broad.

The electronics industry, broadly considered, is heavily air-


dependent, accounting for approximately 40 percent of the value of international air
cargo by itself. This industry combines high value-to-weight with specialized
products, leading to far-flung distribution channels, and complex, labor-intensive
production processes, creating international supply chains designed to tap pools of
appropriate labor. Since the electronic goods shipped by air are incorporated into
apparatus used in many sectors of the economy, almost the entire economy has
become air-dependent. But it the entire economy depends upon air freight, air freight
depends heavily upon the air electronics industry.

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

Internal Environmental Analysis

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COMPANY PROFILE

HALCON is a joint working group of Hindustan Aeronautics Limited (HAL) and

Container Corporation of India (CONCOR), established for developing the air/sea

cargo complex at HAL’s Ojhar Airport, Nashik. HAL is a well established

organization in aerospace. Concor is a pioneer and leader in multi model logistics

operations in India.

The company was inaugurated on 15th March 2008, by honorable Defense Minister

A.K.Antony. HALCON is managed by private organization Transworld Group of

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,

establishing it as a reputed shipping company in India and the Gulf. In 1989, S.

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.

Transworld group of companies’ code of conduct

The objective is to ensure that every employee of the group in India is aware of

acceptable conduct and ethical behavior in consonance with Trasworld’s principles of

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conduct and action. Code of conduct applies to all employees of Companies in India

including trainees and temporary staff. Transworld group of companies believes in

conducting its affairs in a fair and transparent manner by adopting the highest

standards of professionalism, honesty, integrity and ethical behavior.

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

 Trust and Openness

Strong belief in trust & openness in all their dealings

 Mutual Respect

They believe in respecting the dignity of individuals

 Quality

Totally dedicated to customers driven quality constantly striving to improve

process & services guided by the changing needs of customers

 Excellence

Strongly believe in continuously improving upon their own benchmarks

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 Customers Orientation

The concerns & needs of the customers are the guiding force behind all their

endeavors

ORGANIZATIONAL STRUCTURE

MANAGEMENT

CHAIRMAN

Vice Chairman and Vice Chairman and


Managing Director
Managing Director Managing Director

International Operations Indian Operations

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ORGANISATIONAL STRUCTURE

CEO
CEO

CLARYION SOLUTIONS MANAGER FINANCE

VICE CHAIRMAN EXECUTIVE


ACCOUNTS

PROJECT HEAD

MANAGER HR CFS MANAGER

MANAGER EXECUTIVE
MARKETING OPERATIONS

EXECUTIVE
OPERATIONS

EXECUTIVE
GROUND DUTY STAFFS
MARKETING

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PROJECTIONS FOR NEXT TWO YEARS

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.

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HALCON have both Air as well as Sea cargo complex.

Some features of Air Cargo are:

1. AIR CARGO COMPLEX.

• Plot area – 24,000 sq meters

• Covered bonded ware house area – 1350

• Handle air cargo consolidation

• Bonded trucking facility

• Distance between cargo terminal and aircraft parking bay – 2kms.

• Destuffing area/ operational capacity – 13500 sq. ft

• Facility available for handling special cargo.

• Separate office space for carriers.

2. ADVANTAES: AIR

• World class infrastructure and facility

• Proximity from Mumbai airport

• Dedicated cargo complex

• Competitive parking and landing charges.

• Quick and efficient customs clearance facility.

• Cost effective handling charges

• Customer friendly environment

• Thorough advantage of documentation

• Strength of professional personal

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3. VALUE ADDED SERVICES

• Air and Sea cargo handling]

• Cargo consolidation

• Warehousing

• Palletisation

• Lashing

• Chocking

• Fumigation

• Sorting and labeling

• Inspection services

• Round the clock container handling

• Placement of containers

4. CORE ACTIVITIES

• Carting and stuffing of export cargo/containers.

• Destuffing and storage of import cargo/containers

• Cargo consolidation and desolidation for export and import cargo.

• Container handling stacking

• One stop custom clearance and post examination and clearance for

export-import consignments.

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• Movement of containers to and from ports

5. ADVANTAGES: SEA CARGO

• Empty containers availability at ICD

• Secured world class infrastructure facility

• Ample yard and operational area

• Well illuminated warehouse

• Personalized services

• One window customs clearance

• 24 hours uninterrupted power supply

6. WAREHOUSE

• Prefabricated structure

• Covered bonded warehouse area-1800 sq. meters

• Separate bonding space- 500 sq. meters

• Separate carting and stuffing points

• Dedicated handling equipments

• Modern fork lifters

• Hydraulic hand carts

• Trolleys

• Electronic weighing machine

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Master of Business Administration

• Round the clock security

• Rain gutter all along the peripheral length of the warehouse

7. YARD

• Completely paved yard- 80,00 sq ft.

• Separately demarked or 20’, 40’, open tops, reefers, tanks and ODC’s

• Well illuminated high mast lighting

• Fully fenced.

8. YARD EQUIPMENTS

• Ultra modern reach stacker

• Heavy duty cranes to handle ODC’s

• Dedicated modern forklifts.

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CHAPTER 4
DEPARTMENTAL DETAILS

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Master of Business Administration

DEPARTMENT DETAILS

Four departments are involved in functioning of HALCON ICD. The transports are

outsourced to a third party.

1. Operations Department.

2. Finance Department.

3. Marketing Department.

4. Human Resources Department.

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OPERATIONS DEPARTMENT

This department deals with each consignment irrespective of import/export done


through the ICD, Janori. This department has to coordinate all the events with the
respective agents involved in each steps.

DEPARTMENTAL STRUCTURE

PROJECT HEAD

CFS MANAGER

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EXECUTIVE EXECUTIVE
OPERATIONS OPERATIONS

OPERATIONS

Mainly three types of activities are carried out

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.

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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.

3. Intimation letter to Customs JNPT

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.

4. SMTP and IGM

The original SMTP and Import General Manifest or the FORM III is received from
the CHA while the container moves in to the ICD.

5. Intimation letter to Customs 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.

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6. Bill of Entry

At last the CHA issues the 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

Functions of accounts department

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Master of Business Administration

1) Maintaining the records in a chronological manner

2) Submitting records to the management

3) Checking the lorry receipts

4) Making payment of wages to employees

5) Submission of records to the auditor

6) To make preliminary arrangements for the auditing of accounts etc

Financial risk

a) Currency risk- These risks emerge from the potential upward and

downward fluctuations in foreign currency. As a net foreign currency

earner, HALCON has a natural hedge on all foreign exchange

payments. Hence the magnitude of this risk is within limits.

b) Leverage risk-This risk emerges when the portion of debt in relation to

the capital employed is high. In case of HALCON, this risk is within

limits.

c) Liquidity risk-This represents the ability of the company to meet its

liabilities

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Master of Business Administration

on time. The ability to pay is largely determined by timber collection of

receivables .HALCON has a wide customer base. Consequently its

liquidity will not be adversely affected by defaults by few customers.

Legal and statutory risk

a) Contractual risks- This refers to risks arising out of contracts that impose

onerous responsibilities. HALCON does not have any third party

indefinitely with regard to service. All major contracts are subject to

review by the in-hose legal team.

b) Statutory compliance - Legal compliance is given due importance

in HALCON’s internal processes. HALCON has in place an internal

process for ensuring statutory compliance across the company.

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Master of Business Administration

HUMAN RESOURCE DEPARTMENT

H.R manager is in charge of the department. This department is responsible for the

recruitment, training and development, wages and salary administration and

industrial relations.

DEPARTMENTAL STRUCTURE

PROJECT HEAD

MANAGER HR

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Master of Business Administration

STAFF

HALCON’S HUMAN RESOURSE MANAGEMENT POLICY

It is a major strategic focus. Its purpose is to anticipate the needs of organizations

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

projects and providing satisfactory work conditions.

HUMAN RESOURCE

HALCON believes in total employee involvement in every sphere of its activity.

Committed and skilled workforce is imparted with regular training to update

information, knowledge and skills for meeting the quality objectives.

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Master of Business Administration

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

made based on the following factors

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

department head’s feedbacks will have a weightage of 25%.

Attitude:-

It will be decided by,

a) Feedback of the department head. The parameters are punctuality, discipline,

interpersonal skills, adherence to safety standards, willingness to learn, etc.

b) Interview by a panel comprising of department head, HR in charge, plant

manager and one department head other than the parent department.

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Employee involvement:-

It will assess the employees’ involvement in,

a) 5S activity

b) Participation in suggestion schemes

c) TPM

The assessment will be done by the HOD, based on the documented by the

documented critical incidents and in consultation with the concerned employee.

The suggestions towards process involvement, quality improvement and systems

improvement –only will be considered for evaluation.

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

otherwise proportionate marks will be reduced

RECOGNITION POLICY:-

Objective:-

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Master of Business Administration

1. To provide the guidelines for promoting the employees to positions, arising in

higher skill level due to vacancy.

2. In case of no promotion opportunities to provide the guidelines for rewarding/

recognising the employees.

Suitability:-

Recognition will be decided based on the following parameters like,

a) Job knowledge

b) Employees’ involvement

c) Attitudes

d) Flexibility

e) Attendance

f) Experience

g) Academic qualification

WAGES AND SALARY ADMINISTRATION

As completion builds for labor skills in a cost conscious environment, the need for

well-defined and equitable methods of setting economical, yet competitive

compensation for employees is urgent. An effective wage and salary administration

program is critical for keeping the employees fairly compensated and maintaining

the firm’s competitiveness. By understanding this company is providing fair pay

package for its employees. After calculation of salary, the HR department sends

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Master of Business Administration

the report to finances department. By the end of every month, the salary will be

send to the accounts of every employee.

Card system is planned to be implemented for attendance management.

TRAINING AND DEVELOPMENT

Continual improvement in the Group’s performance relies on consolidation and

development of its employees skill-sets.

Training programs focused on five key areas:

a) Strengthening technical skills and expertise;

b) Developing the ability to innovate and sales and market;

c) Transferring know-how to countries where the Group has its operations;

d) Enhancing the efficiency of teams;

e) Strengthening Group corporate culture and exchanging practices.

TRAINING POLICY

Training is a systematic and organized process by which an organization develops

and maintains the competency of its employees.

Objectives

a) Realize full potential of employees

b) Meet business and individual requirements

c) To develop skills, attitude and sense of belongingness

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d) Create teaching and learning organization

According to Performance Appraisal, a training calendar is prepared for the

training programs. For the Managerial staffs, it is for 5 days and for Non-

managerial staffs it is 4 days throughout the year.

PERFORMANCE APPRAISAL

Performance appraisal is done on the basis of policy deployed. Targets are

provided and periodic evaluation is done. Based on the evaluation their wages are

fixed.

INDUSTRIAL RELATIONS

The company ensures smooth Industrial Relation through workers participation

in management. The industrial relation with local union is fairly good and there is

greater co-operation between the management and employees.

COMMUNITY DEVELOPMENT AND FAMILY WELFARE

PROGRAMMES

Community development is essentially a method by which people/employees are

helped to organize their own efforts to accomplish improvements, and through

their organization, receive adequate and ready assistance from any and all external

agencies promoting community development. It is a program for including change

in such a way that each step brings about the desired change in the habits and

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attitudes of the employees. Community development programmes initiated by any

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

attainment of the organization’s objectives, but he must be seen holistically. As

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

performance and other aspects of worker behavior, such as absenteeism, accident

proneness and most importantly, productivity. It emphasizes to introduce in-plant

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

give prominence for various communities’ development and family welfare

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

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the exporters/importers benefit. Rates depend up on the stuffing place, type of

containers used for the purpose. The main areas of stuffing are Pimpalgoan,

Chandwad, Niphad, Wani, Lasalgoan, Umrana, Satana and HALCON in case of

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

and 15 consumer products exporters.

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HALCON receives revenue according to the cargo weight they have handled till

date tonnage for sea cargo and Kgs incase of Air cargo.

Till date HALCON has handled 12, 931 tones.

P e rce n t
Out of the total tones handled 28% are Agricultural products, 12% Industrial goods

and 60% are contributed by the consumer products.

DEPARTMENTAL STRUCTURE

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VICE CHAIRMAN

PROJECT HEAD

CFS MANAGER

MANAGER
MARKETING

EXECUTIVE
MARKETING

FUNCTIONS OF MARKETING DEPARTMENT:-

1. Customer requirements:

When a customer places an order, the company understands their requirements

and dispatches the services in required time.

2. Enquiry:

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Master of Business Administration

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

potential clients, in order to retain them.

4. Collection of payment of dispatch:

After making dispatch of goods as per the consignment, the marketing

department takes immediate steps for collection of payments. The company

will provide service on agreement of full payment in cash. Mainly goods are

exported to Jabel ali (Dubai), Morocco, South Africa, Australia, Colombo,

Singapore, France, Italy

The different types of form used are:-

a. Customer enquiry

b. Telephone enquiry forms

c. Customer satisfaction review

Enquiry Response Review

The main types of register maintained are

1. Enquiry register

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2. Order acknowledgement register

3. Complaint register

DOCUMENTATION

Documentation plays a vital role in any international business. 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.

Export documents – Need and Importance

The shipment of goods are to be made by drawing of Bill of Exchange which have

to be accompanied by what as known as “full set of shipping documents”

attachment. The evidence of goods dispatched is the evidence of insurance cove of

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

Shipping documents handled by the banks vary because of terms of trade.

Contracts made by the buyers and sellers are not always the same. All these specify

the need and importance of documents in exporting.

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Master of Business Administration

EXPORTS DOCUMENTS

Export documents need to be prepared for various purposes,

1. Job Application.

This is issued by the CHA, requesting for the consignment to be carried out

through HALCON. This application contains the details regarding the

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

which is assigned by HALCON.

3. Packing List

The exporter is required to pack the goods according to the instructions of

the importer. A list of content of each case or pack is called as a packing

note. A separate packing note is prepared for each container. A packing list

shows the content of the entire consignment. The customs authorities and

the insurance company require a packing list. It is also required by the

importer.

4. Certificate of origin

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Many foreign countries give concession in duties of goods being exported

from a particular country. For this purpose they need a proof that the goods

were manufactured or produced in that particular country. A certificate of

origin is also required to check that the goods from prohibited countries are

not being imported. It is issued by the chamber of commerce, Export

Promotion Council and other institutions which are authorized by the

government,

Contents of certificate of origin

(a) Description, quantity (or weight) and the value of goods

(b) Number of package and marking on each package

(c) Declaration by the shipper (exporter)

(d) Certificate of issuing authority

5. GSP certificate of origin:

Generalized system of preference is a preferential tariff system extended by

the developed countries (also known as preference giving countries or

donor countries) to developing countries (also known as preference

receiving countries or beneficiary countries) it involved reduced MFN

tariffs or duty free entry of eligible products exported by beneficiary

countries to the markets of donor countries.

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Master of Business Administration

1. Indian exporter benefits indirectly the benefits that accurse to the importer

by way of reduced tariff or duty free entry of eligible Indian products.

2. Reduction or removal of import duty on an Indian product makes it more

compressive to the importer.

3. This tariff performance helps new exporters to denigrate a market and

established exporter to increase the market share and so importer upon the

profit margins in the donor country.

6. Form SDF (Self – Declaration Form):

It is the declaration by the seller that the particular company itself

manufactures the product and the company is not in the black list of RBI.

Documents related to transport

The export can be transport the goods by sea or combination of road/rail.

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.

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2. Bill of lading:

A bill of lading is a document issued and signed by a shipping company or its

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.

Bill of lading serves the following purposes:

1. It is a receipt for goods received by the shipment company

2. Contract with the carrier. It contains the terms of contract between the shipper

and the shipping company between stated points at a specific charge

3. Evidence of title. It is a certificate of ownership or title of the goods.

4. Sending of bill of lading to importer:

Bill of lading is made in any number of copies according to the requirements

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.

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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

under claim for drawback.

Declaration which as not been involved in shipping bill can be taken as implied. To

facilitate identification and processing of different categories of shipping bills it

will be desirable to introduce a uniform colour scheme at all ports.

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

to irrevocable letter of credit. This letter of credit cannot be cancelled or modified

by the issuing bank without the prior consent of the exporter.

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6. Bill of exchange:

A bill of exchange is a negotiable instrument. It is an unconditional order in

writing, addressed by one person to another signed by the person giving it, required

the person to whom it is addressed to pay on demand or on a fixed determinable

future, a sum of certain money to specified person or to bearer. A bill of exchange

may be either a sight bill or a time bill. A sight bill is required to be paid

immediately on presentation to the buyer. A time bill is payable on a fixed date

specified on the bill usually after 30, 60 or 90 days.

7. Bank certificate of payment:

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.

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IMPORT

There is normally little variation in the documentation essential for trade from

nation to nation but they are sure to include the following:

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

bank guarantees to pay provided the entire documents specified in it are in

order

2. Purchase Order

It appears like a trade requirement but it may be desirable for financing.

The buyer may need to prove the order to his bank to organize a provisional

loan or customs may desire to see the paper work is legitimate.

3. Certificate of Origin

Various countries have limitation on the introduction of commodities from

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

specific supply sources. In such cases, an exporter will require to present a

certificate of origin, which is certified by a designated regulatory authority.

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4. Bill of lading.

A required shipment document for sea consignments when commodities are

sent by sea route, as proof that the commodities have been sent by the

supplier.

5. Airway Bill.

Same as bill of lading expect that this a document involved in Air

shipment.

6. Inspection or Quality credential.

If the buyer requires examination o goods prior to shipment, these are vital

documents to making sure the deal is established in accordance to the

buyer’s requirements.

7. Packing List.

The list of all of the cardboard boxes within the container and the contents

within the boxes.

8. Invoice.

The most essential document. Make sure that a complete synopsis of

merchandise is outlined and it is invoiced in the currency of sale.

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.

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CUSTOMS BONDED WAREHOUSES

An important provision of customs Act, 1962 is that relating to warehousing of

imported goods. The object of warehousing is to allow the facility of deferred

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

safeguard revenue. Chapter IX of the Customs Act, 1962 comprising Sections 57

to 73 details the warehousing provisions relating to the dutiable imported goods.

Sections 2(43), (44) and (45) of the Customs Act, 1962 are also relevant.

The warehouses are commonly referred to as ‘customs bonded’ warehouses. These

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

warehouses, as clarified vide Circular no.68/95 Cus dated 15.6.95. These

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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

goods imported by or on behalf of the licensee are stored in a private warehouse.

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.

A bonded warehouse is any is any warehouse or other place licensed by the

Commissioner of customs for the deposit o dutiable goods on which duty has not

been paid and which has been entered to be warehoused.

The following goods shall not be warehoused:

1. Acids for trade and business

2. Ammunition for trade and business

3. Arms for trade and business

4. Chalk

5. Explosives

6. Fireworks

7. Dried fish

8. Perishable goods

9. Inflammable goods expect petroleum products which are stored in

approved places

10. Matches other than safety matches

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11. Any other goods, which Commissioner may consider to be unsuitable for

warehousing.

The word “Custom Bonded Warehouse” and number allocated to a customs

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

be removed when the customs bonded warehouse ceases to be licensed as such

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

contravenes the provisions of this regulation commits an offence and is liable to be

fined.

In the event that a notice is given by a proper officer to an owner of any goods

warehoused in a bonded warehouse that it is proposed to close the warehouse, the

owner shall, within the period specified in the notice, enters the goods for home

consumption, exportation, or for removal to another bonded warehouse.

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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

Commissioner be re-warehoused for a further period of three months

The commissioner in addition to the period of re-warehousing permitted in this

section allow for further period of re-warehousing as he or she may deem

appropriate for the following cases:-

1. Wines and spirits in bulk warehoused by licensed manufacturer of wines or

spirits,

2. Goods in a duty free shop,

3. New motor vehicles warehoused by approved motor assemblers and

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

publication in such manner as the Commissioner may deem fit.

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

the initial warehousing period.

This is customs procedure applied to determine the customs value of imported

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

restrictions and tariff.

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TECHNICAL DEPARTMENT

Technical department considers the quality aspects of production. There is a

quality management system under this department. Various quality policies are

framed and maintained by this department.

QUALITY ASPECTS

HALCON’s entire operation is guided by a well-documented quality system and

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

testing, in-process checks and finished product inspection coupled with

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sophisticated testing facilities ensure that the product will meet stringent quality

standards.

At HALCON, Quality is not just another parameter, but a way of life. Be it

production, service or human relations, quality is the underlying factor in every

activity. Clarion solutions limited is an ISO 9001:2000 certified company. There is

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

every 25 tones of pour weight. Physical properties such as exudation blister

potential and finger corrosion are also testing

QUALITY OBJECTIVES

Quality objectives are framed based on Quality Policy and the Business plan.

Organization Quality objectives are,

1. Production quality improvement,

2. Customer requirement response time or customer support activities,

3. Enhancing the competency of employees

Objectives are deployed at various levels and functions through Policy Department

and are periodically reviewed for effective implementation of QMS.

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HOD (s) maintains policy deployment and its monitoring records

QUALITY POLICY:-

In pursuit of excellence SEPR shall fulfill customer requirement by providing

quality products and services through an effective QMS.

SEPR commit to,

a) Continually improve the process to achieve better product quality.

b) Periodically review the QMS

c) Develop competency of employee.

QUALITY MANAGEMENT SYSTEM (QMS):-

The quality system consists of quality manual, procedures, process modules, work

instruction and formats. Quality system of HALCON is documented and

implemented to achieve requirements of Quality policy, as per ISO

9001:2000version, process module, specification of products and services.

QC-QUALITY CIRCLES:-

One organizational mechanism for worker participation in quality is the Quality

Circle (QC). A QC is a group of workforce level people, usually from within one

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department, who volunteer to meet at regular, internally to address quality

problems that occur within their department. QC members select the problems and

are given training in problem solving techniques.

QC pursuits 2 types of problems, those concerned with the personal well-being of

the worker and those concerned with the well-being of the company.

QC – EFFECT ON INDIVIDUALS’ CHARACTERISTICS:-

QC enables the individual to improve personal capabilities; increase individual’s

self-respect and help workers to change certain personality characteristics.

QC – EFFECT ON INDIVIDUALS’ RELATION WITH OTHERS:-

a) It increases the respect of supervisor for works

b) It helps the workers’ to understand the difficulties faced by supervisions

c) It increases the management’s respect for workers.

QC – EFFECT ON INDIVIDUALS’ AND THEIR ATTITUDE TOWARDS

COMPANY:-

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a) It changes negative attitude of workers

b) It reduces conflicts

c) It insists a better understanding of the importance of product quality

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

improvement initiatives. Thus, Quality Circles have great value as a motivating

tool in Total Quality Management (TQM).

MANAGEMENT RESPONSIBILITY & MANAGEMENT COMMITMENT

The management is committed to meet customer requirements – statutory and

regulatory requirements. This need is communicated throughout the organization

by way of communication –meeting, notice boarded, etc.Top management sets

objectives and measures through policy deployment and is reviewed periodically.

Management review meeting are conducted at planned intervals to review the

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effectiveness of QMS. Each year, plant management prepares annual budget,

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

The transportation is outsourced to the Universal Logistics Limited. HALCON

CEO suggests that transportation is a very crucial operation which needs to be

operated by specialists; hence they suggested outsourcing that to Universal

Logistics limited.

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EXPORT SEA FREIGHT

The container can be of two types can be 20 feet and 40 feet in case of FCL and the

other category is the LCL.

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

legally liable as per law.

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.

IMPORT SEA FREIGHT

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

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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

front of Custom Commissioner ICD.

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CHAPTER 5

SWOT ANALYSIS

SWOT ANALYSIS

SWOT Analysis, is a strategic planning tool used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business

venture .Here the overall atmosphere at the company, organization culture, attitude

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of workers, past performances of the company, recent changes in the industry and

market, technological changes etc are considered

Strength

• HALCON is the only Air/Cargo complex in the country. The service


quality, the business ethics and their management is the strength to the
company.

• Decades of experience o HAL and CONCOR with the customers help to


come up with innovative ideas.

• Service of customs is available all around the clock. The burden on JNPT
can be reduced.

• Huge infrastructure provided by HAL.

• HAL airport available for carrying out consignment.


• Proximity from MUMBAI airport.

• Dedicated cargo complex.

• Competitive parking and landing charges.

• Custom bonded warehouse facility available.

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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.

Nashik being an agricultural belt and potential exporters of Onion, Pomegranate

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.

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CHAPTER 6

CONCLUSION

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CONCLUSION

The study was conducted as a part of my management education program. I did my

project in HALCON. The duration of the study was one month. The objective of

the study is to familiarize with an organizational environment and to get an idea

about the functions of the different departments. SWOT analysis was also carried

out. This study helped me to understand the working of different departments in

the company and see the difference between theory and practice.

HALCON services to the export/import activities are beyond the responsibilities of

a CFS. HAL’s and CONCOR’s decades of experience in the field of transportation

of cargo and constant interaction with customers has enriched HALCON’s

knowledge base. This is translated into valuable suggestions to many of the

customers for improving their export/import activities and getting the most value

for money.

Transworld Group of Companies is a pioneer in the field of operating ports as for

as Quality management. It has succeeded in utilising the port city to the maximum

through optimum utilisation of human resources and indigenously developed cost

effective operating process. It follows the functioning of LAN, which saves lots of

valuable human efforts and time. HALCON ensures environment protection.

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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

from single agricultural exporters to industrial giants Mahindra and Mahindra.

A fair wage system prevails in HALCON. There is a better working condition and

industrial harmony among employees. Proper training to workers and efficiency of

the workers is another reason for the exponential growth of HALCON.

HALCON’s business initiatives are focussed on the infusion of technological and


intellectual capital, modernisation and up-gradation of equipments through
systematic capital investment, intuition of cost reduction and quality input
strategies across the company.

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.

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