Professional Documents
Culture Documents
ON
SESSION 2011-12
SUBMITTED BY:
ACKNOWLEDGEMENT
This Project Report is a combined effort of many people who have contributed in their own ways in making this report effective and purposeful. In my report, I would like to take the opportunity of thanking all those who have been instrumental in preparing this report. Firstly I would like to thank God for bestowing upon me his kind blessing although out. I am extremely grateful to our Incharge, Mr. Ram Sagar Ram for providing us this opportunity to prove our skills in this summer training project. I also extended my heartiest gratitude to my mentor for this project work, Mrs. Shweta Verma, who provided me every bit of relevant information and guidance in making this project a success. It was a great experience working under her supervision. I specially wish to thank Mr. S.N. Sharma, S.E.E., D.L.W. Varanasi (Diesel Locomotive Works, Varanasi) for his valuable suggestions & continuous support. Last but not the least; I thank all the faculty members who helped me during the course of training.
MBA
PREFACE
It is great privilege for me to place this report before the reader. The report is concern about DLW Export Procedure to Non Railway Customers. This report is presented in very simple & understanding language on the basis of Primary and Secondary data.
1. Company Profile 2. Management team and Structure 3. Product & Markets 4. Vision and mission
About RITES Service provided by RITES RITES role in DLW Contract between RITES & DLW Details of Exported locomotives General procedure of export.
5. Research Methodology. 6. Data interpretation 7. Conclusion/results. 8. Suggestions. 9. Limitations. 10. Enclosure of questionnaire 11. Bibliography/ References.
COMPANY S PROFILE
Varanasi, one of the oldest populated cities in the world and has a promising place in the international ground both as a hub of traditions and technology. One side the humming of divine and holy bells of the temples brings the city to life; on other side Diesel Locomotive Works (DLW) Varanasi is one of the largest industrial units in eastern part of the nation. DLW catch the attention of lot of foreign tourist students to observe on going amazing locomotive manufacturing process in Varanasi. Diesel Locomotive works Varanasi is located at the North end of the city and about 8 Km away from the Holy River Ganges Ghats. DLW is an ISO 9002, ISO 14001 & OHS 18001 Certified Organization of diesel electric locomotive. Diesel Locomotive Works, Varanasi (DLW) is one of the main manufacturing units run by the Indian Railways. This manufacturing unit came into existence in year 1961, as a Green Field Project in industrial association with ALCO, USA. This unit generates all the Diesel Electric Locomotives. In year 1964, the first locomotive was manufactured and it was devoted to the country. Diesel Locomotive Works, Varanasi produces only Electric Diesel locomotives and auxiliary parts of locomotives. Though it is an Indian corporation but it has supplied locomotives to some foreign countries also, includes Angola,
which comprises of ALCO turbo superchargers, cylinder heads, connecting rods, camshafts, lubricating oil pumps, chrome plated cylinder liners and many different types of gears. 2) Vehicle section of DLW unit works on different fields that include Bogie Manufacturing, Component Fabrication, Locomotive Assembly, under frame Fabrication, and many more. Currently, Diesel Locomotive Works, Varanasi manufactures locomotives , DG sets. In locomotives section, again it manufactures two different types of products, one is EMD and an other is ALCO.
August
1961
January
1964
DLW set up as a green field project in technical collaboration with ALCO, USA for manufacture of Diesel Electric Locomotives First Broad Gauge Locomotive (WDM-2) released by (Late) Shri Lal Bahadur Shastri. First Locomotive rolled out and dedicated to the Nation First Meter Gauge Locomotive (WDM-4) released by (Late) Shri Morarji Desai. First Broad Gauge shunting Locomotive (WDS-6) turned out. First Locomotive rolled out and dedicated to the Nation. Locos Exported to Tanzania First Diesel Generating Set commissioned
May August April July Decembe r April February October August March March August March March April June Decembe r June Septemb er Novembe r January Novembe r March Novembe r
1984 1994 1995 1995 1995 1996 1997 1997 1998 1999 1999 1999 2001 2002 2002 2002 2002 2005 2005 2006 2007 2008 2009 2009
Locos Exported to Vietnam First 3100 HP WDM-2C Loco turned out. First 2300 HP WDP-1 Passenger Loco turned out. First 3100 HP WDG-2 Freight Loco turned out. Locos Exported to Sri Lanka. Locos Exported to Bangladesh. Awarded ISO-9002 Certification. Locos Exported to M/s Puttalam Cement Company, Sri Lanka. First 3100 HP WDP-2C Passenger Loco turned out. Highest out turn of 161 locos (amounting to 230 units) 4000th Locomotive turned out. First PKW WDG-4 Locomotive turned out. Awarded ISO-14001 Certification. First DLW Built 4000 HP WDG-4 Freight Loco turned out. First DLW Built 4000 HP WDG-4 Loco turned out. First DLW Built 3300 HP WDG-3C Freight Loco turned out. DLW certified for ISO: 9001: 14001. 2.4MW Diesel Generating set commissioned. Certified by OHSAS- 18001: 1999. First IGBT based WDG-4 Loco turned out. 5000th Locomotive turned out. Locos Exported to Mozambique. Highest out turn of 257 locomotive. 5690 locomotives up to 30th Nov'2009(including 348 EMD locos)
GENERAL INFORMATION
Workshop Land Township Area Covered Area in Shop Covered area of other service building
acre
Total No. of Staff Quarters Total No. of staff on roll (as on 01.04.2009)
5926
No. of beds in Hospital Water consumption
Unit / Year
Workshop Colony Administrative Building Stand by Power Generation Capacity
5625 KW
MANAGEMENT TEAM
General Manager- Shri K.K.Sexena CEE- S.K.Arya FA&CAO- N.P.Pandey COS- Mahesh Chandra CME- Neeraj Kumar CPO- L.B.RAI CMS- Dr.Padam Singh CE- Shri M.S.Kutiyal Secy. to GM/Dy GM- Shivendra Mohan
Management Structure
EDM
WDG4 - 4000 HP GOODS LOCOMOTIVE Broad Gauge freight traffic Co-Co diesel electric locomotive with 16 Cylinder 4000 HP engine, AC-AC transmission, microprocessor controlled propulsion and braking with high traction high speed cast steel trucks. First turned out in 1999 with transfer of technology from General Motor (USA), this locomotive has exceptional fuel efficiency and very low maintenance requirements. It is specifically designed for heavy haul freight traffic requirements of Indian Railways for the 21st Century. The heart of loco Traction Control Converter uses the GTO devices (obsolete technology). Now the IGBT devices, has been introduced from Oct 2006. It is the latest technology and will be cost effective and gives higher reliability.
The locomotive power has been upgraded to 4500 BCV and the first Loco (Loco No 12114) was manufactured in May 07
General Characteristic
Installed Power Axle Load Gauge Wheel arrangement Wheel diameter Height Width Overall Length (Over Buffer Beam)
4000 HP 21 T 1676 mm Co-Co 1092 mm 4201 mm 3127 mm 19964 mm 126 T 54 T 100 Kmph 6000 lts
ALCO
2300 HP CAPE GAUGE LOCOMOTIVE
TECHNICAL INFORMATION 2300 HP Main Line Locomotive, having fabricated cape gauge Co-Co bogies. These are provided with two drivers cabs, one at each end. These locomotives have been supplied to Angola and Sudan.
Wheel Arrangement Co-Co Track Gauge Weight Overall Length Wheel Diameter Gear Ratio Maximum Speed Diesel Engine HP Transmission Brake Loco Train Fuel Tank Capacity 1067 mm Cape Gauge 102 t 17620 mm 921 mm 18 : 93 100 Kmph Type: ALCO 251-B 12 Cyl. V- Engine 2300 Electrical AC/DC IRAB-1 Air, Dynamic, parking Air 3000 Liters
TECHNICAL INFORMATION 2300 HP Main Line Locomotive, having fabricated meter gauge Co-Co bogies. These are provided with two drivers cabs, one at each end. These locos have been supplied to Malaysia, Senegal and Mali.
Wheel Arrangement Track Gauge Weight Overall Length Gear Ratio Diesel Engine HP Transmission Brake Loco Train Fuel Tank Capacity
Co-Co 1000 mm Meter Gauge 102 t 17620 mm 18 : 93 Type: ALCO 251-B 12 Cyl. V- Engine 2300 Electrical AC/DC IRAB-1 Air, Dynamic, parking Air 3000 Liters
TECHNICAL INFORMATION Diesel Electric main line, heavy duty goods service locomotive, with 16 cylinder ALCO engine and AC/DC traction with micro processor controls. Wheel Arrangement Co-Co Track Gauge Weight Wheel Diameter Gear Ratio Min radius of Curvature Maximum Speed Diesel Engine HP Brake Loco Train Fuel Tank Capacity 1676 mm 123 t 1092 mm 18 : 74 117 m 105 Kmph Type : 251 B,16 Cyl.- V 3100 IRAB-1 Air, Dynamic Air 6000 liters
Locos, except for older stream ones have classification codes that identify them. This code is of the form [GAUGE] [POWER] [LOAD] [SERIES] [SUBTYPE] [SUFFIX]. In this the first item [GUAGE] is the single letter identifying the Gauge the loco runs on. :
W Y Z N
= = = =
Board Gauge Meter Gauge Narrow Gauge (26) Narrow Gauge (2)
The second item [Power] is one or two letter identifying the power source. :
D C A B B
= = = = =
Diesel DC Traction AC Traction Dual- power AC/DC Traction Battery electric (Rare)
The third item [Load] is a single letter identifying the kind of load the loco is normally used for. :
B P G S
= = = =
L = Light duty (Light Passenger) {No longer in use} U R = = Multiple Unit [EDU/DEMU] Railear [See below]
The fourth item [Series] is a digit identifying the model of the row. Unit recently, this series no. was simply assigned chronologically as new model of locos were introduce. The fifth item [Sub type] is an optional letter or no. or (two of them) that indicate some smaller variation in the basic model or series perhaps different motors, or different manufacture. With the new scheme for classifying Diesel locos. This item is a letter that further refines the horse power indication in 100 HP increment. A for 100 HP B for 200 HP C for 300 HP etc. So in this scheme, a WDM-3A refers to a 3100 HP loco, while a WDM-3F would be a 3600 HP loco. The last item [Suffix] is an optional indication that indicates something special about the loco such as different gearing ratio or brake system that usual. So, a WCM-2 is a broad gauge (W) DC electric (C) mixed traffic (M) engine, model 2.likewise WDS/5 is broad gauge diesel shunting engine, model 5 and ZDM-5 is a narrow gauge diesel mixed traffic-model 5 loco
MARKETING
Marketing Division of DLW provides a single window service to our non-Railway customers. It deals with: Sale of locomotives and spares to Non Railway Customers Supply / Sale of DG sets and spares to Railways and Non Railway Customers Single window services to customers Export of locomotive through intermediaries like RITES and IRCON Availing of credit under MODVAT scheme. Settlement of warranty claims and addressing
complaints Analysis actions Payment of excise duty and CST /VAT on sale of of failure reports of NRC and Export
Details of Locomotives Exported during last 5 years No SN Period 20032004 20052006 20052006 20062007 20072008 Export Locos 1 03 of Horsepow Gaug er 2600 HP e BG Cape 03 1350 HP Gaug Sudan e 11 01 4 02 05 03 01 1350 HP 1350 HP 2300 HP 2300 HP 2300 HP 2300 HP Cape 6 2008-09 01 3000 HP Gaug e MG Cape e MG Senegal Mozambiq ue Myanmar Angola
Country Banglades h
Our Mission - "We shall achieve our vision through Continuous Improvement in the areas of Product Quality, Research and Development, Supplier Partnership, Human Resource Development and Team Work with emphasis on Core Competence leading to Customer Satisfaction and Business Excellence."
DLW Export
INTRODUCTION
Diesel electric locomotives were introduced on Indian Railways in 1950's to exploit their versatility, better hauling capabilities, low maintenance requirements and overall cost advantage Diesel as compared Works to (DLW) steam was locomotives. Locomotive
established in 1961 in collaboration with M/s ALCO, USA in the ancient City of Varanasi to undertake indigenous manufacture of diesel electric locomotives for meeting increasing transportation needs of Indian Railways. Over the years, DLW's production has progressively increased and it produced 257 locomotives, in the year 2008-09 as against 4 locomotives in the first year of its production in 1963-64. The locomotive out turn of 2008-09 has not only surpassed all past records but was 15.7% higher than 2007-08. ALCO locomotives are now almost fully indigenous. Through in house development efforts, the original imported design has been made 7% more fuel-efficient and has also been successfully uprated to deliver about 30% more power, increasing it from 2600 HP to 3300 HP.
DLW is an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 Certified Organization covering Quality, Environment, Health& Safety Management Systems.
Integrated Quality, Environment, Health and Safety Policy Diesel Locomotive Works is a Production Railways, Unit of Indian manufacturing
Diesel Electric Locomotives, Diesel Generating sets and their spares for Indian Railways, Non Railway customers and exports. We are committed to achieve excellence by: Continual improvement of Preventing minimizing generation pollution resource using by Quality, all Environment, including waste material
cleaner
technologies,
substitution and process changes Preventing all injuries and loss of property including environmental performance through continuous safety inspections
Striving
for
compliance
with
all
applicable
Environmental and Health & Safety legislations Striving for " Right first time" and safe working practices through systems improvement and training Enhancing improvement products Preventing all employees from occupational diseases and health hazards We shall: Set objectives and targets, and periodically monitor their progress through internal audit and management review Communicate Quality, Environment and Health & Safety policy to the employees and to make it available to the public on demand. Periodically review our Quality, Environment and Health & Safety policy and management systems for continuing suitability, adequacy and effectiveness. Environment: Sewage Treatment Plant (STP) : In-house STP treats domestic and industrial sewage of DLW Customer in reliability Satisfaction and through of performance
township and workshop. The treated water is used for irrigation purpose in DLW township and nearby village farms. The digested sludge is sent to sludge drying beds, which is later used as manure. Methane gas mainly produced from the digester is collected in the gas holder and supplied to the canteen.
Industrial Effluent Treatment Plant (IETP): IETP does the job of treatment of industrial effluent which mainly contains oil and grease. The treated water is sent to nearby villages for farming and kitchen gardening at DLW. Chromium Treatment Plant (CTP): CTP treats industrial effluent from Chrome Plating Shop. This has varying hexavalent hexavalent concentration chromium. chromium of This is
converted into trivalent chromium in acidic condition and is precipitated for safe disposal. Safety:
Safety of working personnel and of equipment is given prime importance in DLW. In compliance to statutory requirements all safety aspects are subjected to intensive periodic inspections. Four full time safety officers are engaged in the entire safety management of DLW including the function of overseeing compliance to all safety regulations by Workshop personnel. Safety Features in DLW Include :
Fire
personnel and regular checks of fire hydrants and static tanks etc.
System of checking/periodic inspection of wire ropes
and workers
Periodic maintenance of machinery and plant Mock drills of emergencies for checking of emergency
preparedness
Residential Facilities A total of 3641 staff quarters are provided in a wellmaintained township that provides maintained and green, providing excellent and pollution free environment. Educational Facilities There are 04 schools for Primary and Secondary
Education, run by DLW administration where more than 2600 students are being taught. 01 Post Graduate Girl's College also exists in DLW premises. Besides 02 Central Schools, 01 Sr. Secondary School (Private) and 01 BalNiketan (run by DLW Women's Welfare Orgainisation) are also running in DLW campus. Medical Facilities 105 bedded well-equipped
Unit and a First-Aid post in workshop are functioning, taking comprehensive health care of around 20,000 employees and their family members. A Homeopathic and an Ayurvedic dispensary have also been provided. Institute/Community Centre etc. For various social needs of the staff Community Hall,
Institutes, Barat Ghars, Kalyan Kendra, Rangshala and Officer's Club are functioning in DLW township.
Cinema Club For recreation of the staff a Cinema Hall of around 700 capacity is functioning in DLW Township since 1967. Games and Sports Facilities for various games like Cricket, Badminton, Hockey, Basketball, Football, Volley-ball,
Table tennis, Gymnastics, Athletics, Swimming, Golf, and Rifle Shooting have been provided for the staff. World class Swimming-Pool and well-developed Golf course are
unique features. Inter Railway Tournaments are being regularly arranged in DLW premises.
ORGANISATION OF RAILWAYS
DEFINITION OF RAILWAY Railway means a railway or any portion of a railway for the public carriage of passenger, animals or goods and includes.
(a)
All land within the fences or other boundary marks indicating the limits of the land appurtenant to a railway;
(b) All lines or rails, siding or branches worked over for the purpose of, or in connection with a railway; (c) All stations, office, warehouse, wharves, workshop, manufactures, fixed plant and machinery and other works constructed for the purpose of or in connection with a railway; (d) All ferries, ships, boats and rafts which are used on inland waters for the purpose of the traffic of a railway and belong to or are hired or worked by authority administering the railway.
kms. Was opened on 16th of April, 1853 and the other section from Howrah to Hooghly consisting of 35kms. Was opened on 22nd August, 1854. The construction of Railway line, since then, continued and by the end of 1868, the Railway Kilometrage had increased to about 6043 kms. The great famine of 1878 stressed the need for further and rapid development of Railways, but due to paucity of funds, the Government had to resort to the company construction. The Indian States were also asked to undertake the construction of Railways in their own territories and these States constructed about 7500 kms. Of Railways. The railway lines were constructed at a faster pace after the advent of twentieth century and the railway kilometrage increased from about 37130kms. In 1900 to about 51900kms. In 1913-1914 and now it exceeds 60200 kms. In pursuance of recommendations by Railway Enquiry Committee of 1921, the management of Railways was taken over by the Government and now all the Railways in India (except a couple of small branch line sections) are owned and managed by the State.
RAILWAY ZONES
Following are the different Zone of Indian Railways and their Headquarters:
NAME OF THE ZONE 1. CENTRAL 2. EASTERN 3. NORTHERN 4. NORTH-EASTERN 5. NORTH-EAST FRONTIER 6. SOUTHREN 7. SOUTH-EASTERN HEADQUARTERS MUMBAI CALCUTTA NEW DELHI GORAKHPUR MALIGAON CHENNAI CALCUTTA
MUMBAI SECUNDERABAD
Recently, six additional zones have been created by regrouping the existing nine zones:
10. NORTH CENTRAL 11. SOUTH WESTERN 12. EAST CENTRAL 13. EAST COAST 14. WEST CENTRAL 15. NORTH WESTERN ALLAHABAD BANGALORE HAJIPUR BHUBANESHWAR JABALPUR JAIPUR
Organizational Set Up: DLW has a design and development office responsible for all engineering functions related to diesel locomotives. Equipped with extensive designing tools, this office provides service support to Zonal Railways / Diesel Locomotive Maintenance Sheds and Locomotive Overhauling Workshops. This office is also responsible for product development, vendor development and vendor approval. It also performs technical advisory functions and coordination with RDSO/Railway Board on technical matters. Chief Design Engineer heads this office and is assisted by a team of technical experts. Functional Responsibilities: The functional responsibilities of Design and Development Office are:
Design development of new locomotives, Import substitution /indigenous development of loco component, multi-sourcing, day-to-day design matters raised by diesel sheds and workshops, liaison with Research Design and Standards Organisation of Indian Railways, liaison with supply chain partners in respect of technical matters. Technical matters connected with Loco Standards Committee, Diesel Maintenance Group etc., providing technical clarifications in respect of design/specifications & important tenders. Failure investigations into major assemblies/critical components. All design issues for Electrics and Bogie of EMD locomotives. Moreover, design upgradation of EMD locomotives like power upgradation to 4500 BCV, incorporation of IGBT based technology, Distributed power; Hotel Load, Development of twin cab WDG4 and development of 12 cylinder 3000 HP EMD locomotives with AC-DC traction are being dealt with by Design Office. Liaison with CQAM and RITES in respect of inspection and quality control standards.
Details of Locomotive Exported (up to Dec'2009) DLW has exported 102 locomotives to 10 countries. Details are as under: S.N o. 1. 2. 3. Tanzania Vietnam Bangladesh Country Types locomotives YDM4, MG YDM4, MG YDM4, MG 15 25 10 of Qty.
S.N o.
Country
of Qty.
4.
SriLanka
13 08 02 01
5. 6. 7.
8.
Angola
2300 HP, CG VDM4, 1350 01 HP,CG 2300 HP, CG YDM4 1350 HP / 2300 HP, MG 02 11 04
9. 10. 11.
DLW has supplied 395 locomotives to Indian NRCs up to December'2009. Major Non-Railway Customers and locomotives supplied to them are as under: S.N o. 1. Customer's Name SAIL Types es WDS6 WDG3A WDS6 WDS6 WDM2 WDG3A WDS6 WDG3A WDM2 WDS6 WDS6 WDG3A YDM4 Total= of Qty. Total
2. 3.
VSP NTPC
33
88
4.
Port Trusts
36
5.
21
6.
OBJECTIVE
To know who is our Non railway customer . To know what is the procedure of export. To know what is the document need. To know what is the annual turnover. To know How far dlw is from their competitors.
MARKETING DEPARTMENT
IN DLW
Marketing Division was set up at DLW in August 1987 for sales and after sales service of locomotives to Non-Railway Customers. With the setting of this organization it has been possible to provide single window service to Non-Railway Customer for all activity connected with sale of locomotives, DG Sets and Spares. The marketing Division maintains close liaison with different Non-Railway Customers. The formation of Marketing Division has greatly helped Non-Railway Customer in improving availability of spares & maintenance of locomotives. Marketing Division is also responsible for submitting offers & following up cases of sales of locomotive & spares to NRCs and Export of locomotive & spares through agencies like RITES and IRCON. It is also the nodal department at DLW for DG sets. DLW is registered with Engineering Export Promotion Council & can thus participate in Deemed Export orders directly and claim export benefits. For export order the demand is met through RITES/IRCON depending on the country of export.
SPARES
During the year 2008-09 spares parts worth Rs. 10.61 crore were supplied to Non-Railway Custo mer in India as well as Export.
ABOUT RITES
RITES Ltd., a Government of India Enterprise was established in 1974, under the aegis of Indian Railways. RITES are incorporated in India as a Public Limited Company under the Companies Act, 1956 and are governed by a Board of Directors which includes persons of eminence from various sectors of engineering and management. RITES Ltd., an ISO 9001-2000 company, is a multi-disciplinary consultancy organization in the fields of transport, infrastructure and related technologies. It provides a comprehensive array of services under a single roof and believes n transfer of technology to client organizations. In overseas projects, RITES actively pursues and develops cooperative links with local consultants / firms, as means of maximum utilization of local resources and as an effective instrument of sharing its expertise. RITES are internationally recognized as a leading consultant with operational experience of 62 countries in Africa, South East Asia, Middle East and Latin America. Most of RITES foreign assignments are for National Governments and other apex organizations.
SERVICES BY RITES
Facilities Planning for Rolling Stock Maintenance Technical Assistance for Workshop Modernization Supply & Commissioning of Workshop Machinery and Plant Supply, Commissioning and Maintenance of Locomotives & Rolling Stock Leasing of Locomotives and Passenger Coaches Supply of Spares Supply of Signaling Equipment Rehabilitation of Locomotives and Wagons Rehabilitation of Traction Machines & Railway Bridges
SN
1 2 3 4 5 6 7
PERIOD
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
NO. OF EXPORT
10 03 03 11 01 02 05 03 01 01
HORSEPOW COUNTRY ER
1350 2600 1350 1350 1350 2300 2300 2300 2300 3000 HP HP HP HP HP HP HP HP HP HP Vietnam Bangladesh Sudan Myanmar Angola Angola Sudan Mali Senegal Mozambiqu e
At INTERNATIONAL LEVEL the main competitors of DLW (Asia Largest manufacturing of Locomotive) are CHINA, JAPAN,
NOTE: In DLW, all the activity of EXPORT is done by the RITES LTD.
Usually in any Export House following steps are followed to export The goods. These steps are:-
Receipt of Enquiry and sending Quotation. Receipt of order or indent Assessing Importers credit worthiness and securing a guarantee Obtaining Export License Obtaining Pre-finance License Production or Procurement of goods Pre Shipment Inspection Excise Clearance Obtaining Certificate of Origin Reservation of shipping space Preparation of Invoice
Packing and Forwarding Insurance of Goods Custom Clearance Obtaining Mates receipt Payment of Freight & Insurance of Bill of Lading Securing Payment
This work is assigned to the marketing persons of the company (RITES) they Establish the relationship with customer. Usually the company gets The order in three ways:-
Through Personal Visit: Through International Trade Fair & Exhibition Through Internet Through Global Tender
STAGE 2:
ORDER IMPLEMENTED
Once the order has been received, the export order is scrutinized with reference to the terms and condition of the export contract. This is the most crucial stage of any export process. All subsequent action and reaction will depend on the terms and
condition of the export contract. It is ensured that contract has been entered into in accordance with the prevalent export policies of the country and foreign exchange regulations like FERA, FEMA. The export order must specify the mode of payments such as:
Letter of Credit [L/C] Documents on Payment [D/P] Documents against Acceptance [D/A]
In this stage, the Company prepares all the necessary documents including Sales Contract required by the buyer and submits to the negotiating bank in exact specified format and manner. The most important documents demanded by the importer are: Bill of exchange Commercial Invoice Packing List Marine Insurance Policy Certificate of Origin Then Buyer Company sends the Sales Contract which is the declaration by them that all the terms and conditions of order are accepted to them. STAGE 3: PERFORMANCE OF MARKETING DEPT.
As soon as the order has been confirmed the Buyer Company sends the Sales Contract putting their own seal which is the declaration by them that all the terms and conditions of order are accepted to them. After the contract, the marketing dept. places the Manufacturing Order on the Production Manager & advice the Material Procurement. Department for insuring the availibity of purchase item required for the purchase of Goods.
This note contains the description of the goods as has been given in export order along with the instructions given by importer.The date by which the goods must be ready is clearly indicated in Manufacturing Order. On the basis of work order Manufacture start. After receiving MO Production of the goods are started. STAGE 4: PACKING & SENDING OPTION Then as per the instructions given by importer goods are packed in Packing Department. Now these packed goods are sent to shipping agent through transporters or through Courier.
STAGE 5: FINAL INSPECTION After the stage of inspection, it is carried out by the Quality assurance dept. of DLW & the final inspection is done by DLW, RITES & IMPORTER (If importer so desire)
Documentation Department is usually called as Commercial Section AT DLW the export is done by the Marketing Dept. up to the stage of Manufacturing & Turning out from DLW then after the other export formalities are carried out by the RITES. Commercial Section can be shown by following figure:-
The main function of the commercial section is to prepare and maintain the documents of each and every activity involved in the Export procedure. Documentation is mainly done to give justification before Reserve Bank of India of foreign exchange transaction which is carried out in Export Process. Thus, the Export Documents represents the total Export Procedures.
These documents are used by Custom of Trade in International Commerce by exporters and importers in discharge of their respective legal and other incidental formalities under
Sales contract. Commercial Documents can be further divided into two types of documents which are as follows: PRINCIPAL DOCUMENTS AUXILLARY DOCUMENTS 1. PRINCIPAL DOCUMENTS:These documents are required for effective physical transfer of goods and title thereto from exporter to importer. Following documents come under this category: Realization of Export Sale Proceeds Commercial Invoice and Invoice prescribed by Importing Country Packing List Certificate of Inspection Certificate of Insurance/Insurance Policy Bill of Lading or Combined Transport Documents Certificate of Origin Bill of exchange Shipping Advice 2. AUXILIARY DOCUMENTS:These documents are required in connection with preparation or procurement of Principal Export documents. Following documents are Auxiliary documents: Proforma Invoice Shipping Instruction Insurance Declaration Intimation for Inspection Shipping Order Mates Receipt Application for Certificate of Origin
(B) REGULATORY DOCUMENTS:These documents are prescribed by different Government Department/Bodies for compliance of formalities under relevant laws, rules and regulations governing export trade viz. FERA ,Import & Export (control) Act, Central Excise Rules, Export (Quality Control &Inspection) Act, Customs Act and Major Port Trusts Act etc. Following documents are of Regulatory nature:
Exchange Control Declaration-GR Forms Freight Payment Certificate Insurance Premium Payment Certificate Gate Pass-I/II ARE-1/ CT-1 Forms Shipping Bill/Bill of Export Port Trust Copy of Shipping Bill/ Export Application/ Dock Challan Receipt for Payment of Port Charges Vehicle Ticket
Broadly we can classify the total working of Commercial Section in the three stages. They are:1) Pre Shipment Documentation 2) Shipment Documentation 3) Post Shipment Documentation
1.
PRE-SHIPMENT DOCUMENTATION:
Pre shipment procedure starts from the very beginning i.e. receiving the order and it ends with handling over the goods to
the transporters. In the case of Advance payment following documents come under Pre shipment documents:After receiving the export order, Sales Contract is sent to buyer his is resent by buyer after putting their seal along with the 30% of total Invoice value (in the case of advance payment) then after packing of goods, Packing Slip is sent from the Packing Department, with that Slip ,Packing list is prepared in Commercial section. After checking Packing List thoroughly, Invoice is prepared and then both Packing List as well as Invoice is sent to buyer to get the remaining 70% of the payment. When they make total payment goods are sent to them. In this procedure, first of all goods are handled over to the transporter. Then transporter gives whole goods to Clearing Agent.
2.
SHIPMENT DOCUMENTATION:
After taking over the whole goods by Clearing Agent, Shipment Procedure is started. If Consignment is going to be exported by Sea, goods are sent from the company to Mumbai. If goods are to be shipped by Air then goods are transported to Delhi Airport. Shipping Instruction (3 Copies) is sent to Clearing Agent which contains the information about consignment. For e.g. Dimension of Cartons i.e. No. and Size of Cases, Detail of items, Name of Transporter etc. When goods are loaded on to the Ship/Aero plane Challan is provided by the owner of Ship/Plane. Challan, Bill of Clearing agent (in the case of FoB), Invoice and ARE (Application for Removable of Excisable goods) are sent to Buyer. Terms of Delivery means in delivering the goods to the Buyer which cost will be included whether it will include only cost of
production or it will also include transportation costs. Mainly there are three terms of Delivery:
FOB (Free on Board):- It is also called as Freight on topay Basis that means freight charges will be paid by Buyer.
C.I.F. (Cost including Insurance & Freight):- It is also called as Freight on Pre-Paid Basis that means Freight charges will be paid by Exporter and Goods will be insured.
C&F (Cost including Freight):- It means only Freight charges will be paid by exporter and Insurances charges will be covered by buyer itself.
Post shipment Documentation start when goods are reached at their destination then to clear the goods from the customs in the Importer Country some documents are needed. Which are as follows:Shipping Advice: - It is sent as covering letter. it contains details of Consignment and clearing agent .
Invoice (2 copies) Packing List (3 copies) Bill of Lading (1 original & 1 Xerox) Airway Bill (1 Xerox & 1 original copy) Shipping Bill (Original):Shipping Bill is provided by Customs of India to the Clearing Agent of the Company after checking of goods. Without Clearance of Customs no export can take place. It has all the details of Export Order like details of items, Invoice value of total consignment, Foreign Currency involved, Exchange Rate, Draw back details, Date of Export etc. This shipping Bill is needed at the customs of Importers Country as well as Bank of Exporters to get the Payment. It is divided in the two sections:
1.
Exchange Control Copy: - First two Pages of Shipping Bill in which Exchange Rates and Freight charges, Insurance Charges (if applicable) are indicated, are called exchange control copy. Export Promotion Copy: - Govt. give export incentive on certain items so, in Shipping Bill all details are given regard in Drawback like their rates and amounts.
2.
Invoice (2 Copies)
Packing List (original) Exchange Control Copy of Shipping Bill (original) Bill of Lading (2 Copies) Copy of Original FIRC (Foreign Inward Remittance Certificate)
When all the documents are sent to bank, whole transaction is justified and then Bank sends Reference No. with that Ref. No. Bank Realizations Certificate is made in the Company which is again sent to Bank after 6-8 months Bank sends that Certificate to the Company by putting their own seal. This is the last document in any Export Order.
SALES CONTRACT
It is a legal contract of exchange of goods, services or property to be exchanged from seller to buyer (in case of export: from exporter to importer) for a pre-decided value in money or money equivalent paid or promised to pay same. It is a specific type of legal contract in which all details regarding trade which is going to take place between any two countries. It contains: Contract No. Invoice of Delivery Period Date Port of Loading Port of Destination Mode of Payment Exchange Rate Invoice Packing Description Freight Charges Insurance Charges Name of Sellers Bank Description of Goods
PROFORMA INVOICE A proforma invoice is a very common international document; despite its name, it is not an invoice at all but a quote. An international transaction includes so many variables that it is sometimes difficult for importer to have a good grasp of final cost of goods. For e.g. the cost of goods is increased by the cost of shipping, insurance and so forth. In order to determine these costs the import may request for a proforma invoice which helps in determining the accurate and precise preview of actual invoice which is usually prepared when a transaction is going to take place. In those cases when exporter requests payment on a letter of credit basis, the information contained in proforma invoice is used by issuing bank to open the letter of credit. It contains: Name & Address of the Seller Name & Address of the buyer Date Delivery Time Terms & Conditions Port of Loading Port of Discharge Terms of Trade Freight to be covered by Insurance to be covered by Bankers Name
COMMERCIAL INVOICE
Commercial invoice is the basic document in any trade. It is also called document of contents because it generally contains all the information required for preparation of all other documents. A commercial invoice is the sellers bill of merchandise. There is no standard format for commercial invoice but usually it contains the following: Exporters Name & Address Invoice No. Date Buyer order No. Consignee Name Buyer Name and Address Country of origin of goods Country of final destination Terms of Delivery & Payment Pre Carriage by Vessel/Flight No. Port of Loading Port of Discharge Final Destination of Goods Marks & Nos. Number of Packages
Description of Goods Container No. Quantity Rate Amount Declaration Signature of Authority
It provides cover against perils of sea and other connected risks to which goods are exposed to. It is same as any other insurance and usually done to minimize the risk related to shipment of goods. It contains: Certificate No. Open Cover No. Open Cover Date Assured Name Address of the Assured Receipt Date Effective From Issued at Net Premium Name of the Issuing Company Total Sum insured Sum Insured in Foreign Currency Basis of Valuation Country of Destination
PACKING LIST
It is a document which shows nature and the number of goods etc.put in each package/container with distinctive number of marks. This is generally needed by the importer when he is importing different types or sizes of merchandise so that he may identify the nature of goods in each package. It is also used by custom for checking the goods on random basis or otherwise. Thus, packing list is mainly used to facilitate easy identification of goods in each package/container by the importer or custom. It generally contains: Exporters Name & Address Invoice No. Date Buyer order No. Consignee Name
Buyer Name and Address Country of origin of good Country of final destination Terms of Delivery & Payment Pre Carriage by Vessel/Flight No. Port of Loading Port of Discharge Final Destination of Good Marks & Nos. Container No. No. & Kind of Packages Description of Goods Quantity of Goods Remarks, if any
CERTIFICATE OF ORIGIN
This is a document which is mostly required by Common wealth Countries. It is a certificate of declaration by the shipper regarding origin of goods. The certificate is generally attested or certified by the Chamber of Commerce for industry or other agency designated for this purpose. The main aim of this certificate is to enable the importer to get concessional tariffs. It contains: Exporters business Name, Address & country
Consignees Name, Address & country Means of Transport & Route Item No. Marks & Nos. of Packages No. & Kind of Packages, description of goods Origin of country Gross Weight & other quantity No. & Date of Invoices Certification & Signature by Chamber of Commerce Declaration & Signature by Exporter
CERTIFICATE OF INSPECTION
For ensuring the quality government has made it compulsory for certain products that these should be inspected by some authorized agency. EXPORT INSPECTION COUNCIL OF INDIA (EICI) is one such agency which carries out such inspections and issues the certificate that the consignment has been inspected as required under the Export Quality Control and Inspection Act, 1963 and satisfies the conditions relating to quality
control and inspections as applicable to it and is export worthy. Some countries have made it mandatory for the goods being imported to their countries It contains: Beneficiary Name & Address Applicant Description of the Goods Bill of Lading quantity For Transportation to Remarks Item wise/Size wise Break up of Quantity
MATES RECEIPT
It is issued by the chief of vessel after cargo is loaded and it is duly signed and stamped by Chief Officer or Master of vessel. The shipping company does not issue the bill of lading unless it receives the Mates receipt.
It contains: Mate Receipt No. Shipping Bill No. Date Voyage Exporters Name CHA Name Marks Quantity of Goods Description of Goods Cargo Weight Consignee Name Terminal or Chief Officer signature
BILL OF LADING
The Bill of Lading is a document issued by the shipping company or the agent acknowledging the receipt mentioned in the bill for shipment on board of vessel and undertaking to deliver the goods as per the order and
condition as received by the consignee or according to his order. The Bill of Lading is issued in standardized aligned document format. It contains: Shippers Name Consignee Notifying Party Pre Carriage by Place of Receipt by Pre Carrier Ocean Vessel Port of Loading Port of Discharge Marks & Nos. No. of Packages or Units Kind of Packages, description of Goods Weight of Goods
SHIPPING BILL
The shipping bill is the main document on the basis of which customs office grants the permission for export. After loading the
goods on ship it is prepared by clearing agent but it is mainly needed to justify the goods going to be exported. It contains: CHA Name Date State of Origin Exporters Details Consignee Port of Loading Port of Discharge Gross Weight Total Packages Net Weight Country of Destination Nature of Cargo Marks & Nos. Foreign Exchange Bank A/C No. RBI Waiver No. Invoice Details Exchange Rate Insurance Charges Freight Charges Discount Commission Packing Charges Draw Back Description Nature of Payment Buyer Name & Address
BILL OF EXCHANGE
It is a written instrument whereby the person issuing it directs the other party to pay a specified amount to a certain person or to bearer of the instrument i.e. bill of exchange. In the context of an export-import transaction, bill of exchange is drawn by the exporter. According to which importer are to pay a certain amount to a certain person or to the bearer of bill of exchange. Export consignment is passed on to the importer only when the importers order contains bill of exchange. It contains: Amount of bill Place Name & Address of the Bank in which amount is to be paid Order by exporter Invoice No. Name & Address of the import Exporters Signature
This certificate contains the information of export consignment and as to be submitted to the bank for each and every consignment. The information required for making bank certificate is obtained by various shipment documents named as Invoice, Shipping Bill, Bill of Lading, Airway bill, Insurance bill, Freight Memo etc Three copies of bank certificate addressed to the JOINT DIRECTOR OF FOREIGN TRADE is prepared and submitted to bank. Copies of Export Invoice, custom attested EP (Export Promotion) copy of Shipping Bill and other relevant documents are also submitted along with the Bank Certificate The Bank Certificate is declaration by the exporter that they have forwarded the documentary export bill to its bank for the collection or negotiation or purchase as per particular given in Bank Certificate. The bank verifies the information given by the exporter and certifies the same. The bank passes the original copy with the relevant copy of attested documents to the exporter and duplicate copy to the Licensing Authority. Bank retains the triplicate copy for its record. It contains: Invoice No. Export Promotion Copy of Shipping Bill duly-authenticated by custom Description of Goods as given in Custom AuthenticatedShipping Bill Bill of Lading No. Destination of Goods Bill Amount Foreign Exchange used Freight Amount as per Bill of Lading
Insurance amount as per Bill receipt Date of Realization of export proceeds SDF (Sales Declaration Form) Form No. & Signature of Exporter
MODES OF PAYMENT
There is a no. of different payment methods that can be used when importer deals with exporter. Mostly three of them are used. Which are as follows? DOCUMENTS AGAINST PAYMENT LETTER OF CREDIT
The exporter makes the shipment and sends the shipping documents to the exporters bank for collection. The bank then sends the shipping documents along with a collection letter to the importers bank, which then sends a collection notice to the importer. The importer makes payment upon receiving the notice, and only after payment the importer receive the original shipping documents with which they take the physical possession of the goods. The major advantage of the use of DP is the low cost as compared to use a Letter of Credit. But this is offset by the risk that the importers sometimes reject the documents for some reasons (or when they are not in order).Since the cargo has already been loaded (to generate the documents) exporters have little recourse against the importer in case of non-payment. So a document against payment (DP) arrangement involves a high level of trust between the exporters and importers.
LETTER OF CREDIT
A Letter of credit is very common and familiar document in setting payment between buyer and seller. It is a signed instrument embodying an undertaking by the bank of the buyer to pay the seller a certain sum of money on presentation of documents evidencing shipment of specified goods and subject to compliance with stipulated terms and conditions. The International Chamber of Commerce (ICC) has a published a set of universal recognized guidelines governing the issue of a Letter of Credit in Uniform Custom and Practice of Documentary Credit (UCPDC). Following parties are involved in issuing a letter of credit:1.
APPLICANT: - The firm asking for a Letter of Credit is applicant. Usually the applicant is importer who is going to import goods but it is not in position to pay for the goods currently. BENEFICIARY: - The firm named in a letter of credit as the firm to whom the bank is insuring payment if the importer does not pay. Usually, the beneficiary of a letter of credit is the exporter.
2.
3.
ISSUING BANK: - It is that bank which provides the letter of credit to the importer. It has the contractual obligation to pay the beneficiary (exporter) on the presentation of
ADVISING BANK: - In a Letter of Credit transaction, the bank that determines whether the issuing bank is a legitimate bank and the terms of the Letter of Credit offered by the issuing bank on behalf of the importer are appropriate. Generally, the advising bank is the exporters regular bank. But in some cases the exporters bank will delegate this role to another bank which is more experienced.
The Letter of Credit (L/C) payment procedure is usually as follows: The Importer applies to open the L/C to exporter through A bank that can open the L/C in their country. The opening Bank will inform the exporter that L/C has been established. Exporter checks all the terms and conditions listed in the L/C. If all the terms and conditions are acceptable the will arrange the shipment within the time specified in the Letter of Credit.
After the goods are loaded onto the ship without any damage, the captain of the ship will issue clean Bill of Lading to the exporter. With clean Bill of Lading only they can claim the ownership of goods.
Clean Bill of Lading and other relevant documents will be submitted to their bank to gather the irrevocable Letter of Credit. It is an often used payment method. This is a formal payment method that offers a lot of protection to the parties. In simple words, a Letter of Credit is a letter written by the importers bank to the exporter. It verifies that the payment will be guaranteed when bank is presented with concrete documents (Bill of Lading, Freight documents etc.). Mostly Letters Of Credit are irrevocable once the importer has sent them.
A Letter of Credit usually includes applicant (the importer), beneficiary (I/E agent), opening bank, negotiating bank, specification and quantity of the goods, amount of money, loading port and destination port, shipment date, the validity date of the L/C, terms and conditions agreed by both the importer and exporter and details of the documents required by the importers (Bill of Exchange, Commercial Invoice, Packing List, Insurance Certificate etc.) The exporters bank will send the clean Bill of Lading and relevant documents to opening bank. Opening bank will inform them that all documents are received.
Then importer will go to the bank to make the payment to get the clear Bill of Lading and relevant documents.
With all of these documents, they can clear the import customs and pick up the goods after the goods have arrived on the destination sea port. L/C is used for the larger quantity order shipped by the sea.
We can understand the first and foremost step of processing of a Letter of Credit with the help of following diagram:-
EXPORTERS BANK
IMPORTERS BANK
EXPORTER
IMPORTER
a. First of all the exporter and the importer agree on a sale under Letter Of Credit terms. The exporter sends a proforma invoice to importer. b. Then importer takes the proforma invoice to its bank and requests for a Letter of Credit. c. The importers bank issues a Letter of Credit and sends it to the exporters bank. d. The exporters bank receives and revises the Letter of Credit. Then it notifies the exporter that it is ready to ship the merchandise to the importer.
2.
EXPORTERS BANK
IMPORTERS BANK
EXPORTER
IMPORTER
a.The exporter sends the merchandise to the importer but gathers all the documents and sends them to the exporters bank. b.The exporters bank checks that whether the documents fulfill the requirement of Letter of Credit or not and then sends them to the importers bank. c. The importers bank also verifies the documents that they match with the requirement of Letter of Credit and notifies the importer that everything is in order.
3.
EXPORTER
IMPORTER
a.The importer pays the importers bank in order to collect the documents that will be needed to collect the merchandise and clear the customs. b.The importers bank sends the importers payment to exporters bank. c. The exporters bank notifies the exporter that they have been paid by importer.
Research Methodology
Sampaling Plan; There is no sampling plan as such as the study involved in under standing the various processes and analyzing them. The study involved in the detail analysis of secondary data
gather from various sources and there for no sample size and plan has been considered. Research design: This project is based on two researches1) Exploratory research design 2) Conclusive research design Sources of data: Data has been collected through literature survey and expert opinion. The part of data is collected from various primary sources and secondary sources.
PRIMARY SOURCES: Information gathered through interview and discussing with departmental members.
DATA INTERPRETATION
LOCOMOTIVE PRODUCTION Varieties of management interventions, active co-
enabled DLW to increase its output significantly in the current decade. This is depicted below:
Locomotive Out Turn
EMD ALCO
102 112 116 121 148 186 257 222
300
No. of locomotive
15
22
39
59
92
92
2004-05
106
99
2005-06
126
2006-07
147
2007-08
163
2008-09
Year
In current year, DLW has produced 200 locomotives (including 88 high horse power EMD locomotives) till 31.12.2009.
177
80
TYPE WISE LOCOMOTIVE OUT-TURN 2005-06 Type of Loco ALCO GM EXPO RT NRC Targ ets 106 20 14 03 2006-07 2007-08 2008-09 Actu al 157 80 1 19 257
Rs. in crores 558.00 855.88 934.65 872.05 984.65 1297.54 1560.28 2404.38
CONCLUSION
After completing my project I familiarize with DLW, and I get that diesel locomotive works is a famous technological temple, which came in existence, in 1964 by Late Shri Lal Bahadur Shastri. DLW export to the following countries, Sri Lanka, Bangladesh, Tanzania, Vietnam, etc. There are many facilities for the employees as hospital, health club, sports club, school and college, sewing center, technical training center etc. In short we can say that all the facility which the ordinary employee needed is provided by welfare department and the entire employee are very well aware with welfare programmes. They take advantage with programme in any form. Very few improvement but important improvement, which mentioned above, is needed in welfare programmes, which make the employees more satisfied.
SUGGESTION
As I work n my project report. I feel that DLW is very prosperous and the facilities provided to their employees here are very much satisfactory. But some suggestions. Which in want to give are as follows? 1) The standard of hospital should he tried to improve. 2) Medical store facility should he provided in the campus of the hospital with large stock of medicine. 3) If lunch provided in DLW canteen it will also motives employees. 4) The crche should also be provided by DLW welfare Department. 5) Welfare department should motivate the employees in such a manner that employees female member most participate in women welfare programme. 6) The number of member of sports club and health club is very low so it can increase by the efforts of welfare officers of DLW. 7) Always there should be good communication between welfare. 8) Department and employees. 9) All employees should be motivated to part in cultural programmes.
LIMITATION
There is the possibility of ambiguous replies from the respondents which can give untrue or misleading result. Few people did not have the time to fill up or answer the Questionnaire. The responses are quite objective in nature. There was low rate of return of the dully filled in questionnaire due to the biasness of the respondents.
Few people were not responding as expected from them and they were considering survey a useless activity.
Questionnaire
Dear Sir/Madam: We are conducting a survey on Marketing division of diesel locomotive works in Varanasi city by government organization. We hope for your kind co-ordination in filling the questionnaire. Name: _________________________________ Gender:________ Contact No._________________ Email id:________________________________ 1: Age: a) 18-25 36-45 d) Above 45 2: What is your annual income? a) Below 3 Lakh Lakh a) 9-12 Lakh 3: Qualification a)High school c)Graduation D)Post Graduate b)Intermediate b) 3-6 Lakh e) More than 12 Lakh c) 6-9 b) 26-35 c)
4: how many years you work in d.l.w.? a)0-5 c)10-20 d)more than 20 5: What is your department name? --------------------------------------------------7:What is the basic work of your department? a)manufacturing c)selling locos d)financial analysis b) buying raw materials e) auditing b)5-10
b)10-25
c)
9: What is the target of this year of manufacturing locos? a) Less than 10 25-40 b) More than 40 10: Which year the highest locos supplied? a) 2006-07 b)2007-08 c) 2008-09 b)10-25 c)
b)provide loco to rc
BIBLIOGRAPHY
BooksC.K.Kothari - Research Methodology DLW Year Book Websiteswww.d.l.w.vns.com www.google.com
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