Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
The Automobile industry in India is the seventh largest in the world with an
annual production of over 2.6 million units in 2009. In 2009, India emerged
as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and
Thailand. By 2050, the country is expected to top the world in car volumes with
approximately 611 million vehicles on the nation's roads.
India has emerged as one of the world's largest manufacturers of small cars.
According to New York Times, India's strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of
manufacturing facilities of several automobile companies like Hyundai
Motors, Nissan, Toyota, Volkswagen and Suzuki.
The company policy is to ensure value for money to the customer, by providing
products, which meet customer's requirement. IAI strives to achieve
consistent improvement in quality through process control, adherence to quality
system and safe and clean working environment.
The report covers my objectives during the internship programme i.e were to
study the supply chain management of Imperial Auto Industry, the Export
Procedures and Export Documents that are required.
During the internship programme I studied the various documents that are
required for exports such as the documents required in case of shipment through
Air / Sea, shipping bill, packing list, invoice and how the packaging and labelling is
done.
All the Incoterms were to be kept in mind as they play an important part in
exports.
1
Since my project is an experienced based project my research is an exploratory
research because the objective of the exploratory research is to generate new
ideas and insights. Exploratory research is a type of research conducted because a
problem has not been clearly defined. Exploratory research focuses mainly on the
discovery of new ideas and helps to determine the best research design, data
collection method and selection of subjects.
All the above mentioned things are discussed in detail in the following report.
2
Automobile Industry in
INDIA
The Automobile industry in India is the seventh largest in the world with an
annual production of over 2.6 million units in 2009. In 2009, India emerged
as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and
Thailand. By 2050, the country is expected to top the world in car volumes with
Chapter – 1
approximately 611 million vehicles on the nation's roads.
Exports
India has emerged as one of the world's largest manufacturers of small cars.
According to New York Times, India's strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of
manufacturing facilities of several automobile companies like Hyundai
Motors, Nissan, Toyota, Volkswagen and Suzuki.
In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan
Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.
3
Similarly, General Motors announced its plans to export about 50,000 cars
manufactured in India by 2011.
In September 2009, Ford Motors announced its plans to setup a plant in India with
an annual capacity of 250,000 cars for US$500 million. The cars will be
manufactured both for the Indian market and for export. The company said that
the plant was a part of its plan to make India the hub for its global production
business. Fiat Motors also announced that it would source more than US$1 billion
worth auto components from India.
In recent years, India has emerged as a leading centre for the manufacture of
small cars. Hyundai, the biggest exporter from the country, now ships more than
250,000 cars annually from India. Apart from shipments to its parent
Suzuki, Maruti Suzuki also manufactures small cars for Nissan, which sells them in
Europe. Nissan will also export small cars from its new Indian assembly line. Tata
Motors exports its passenger vehicles to Asian and African markets, and is in
preparation to launch electric vehicles in Europe in 2010. The firm is also planning
to launch an electric version of its low-cost car Nano in Europe and the U.S.
Mahindra & Mahindra is preparing to introduce its pickup trucks and
small SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for
the Nissan-Renault alliance, which will market the product worldwide. Nissan-
Renault may also join domestic commercial vehicle manufacturer Ashok Leyland in
another small car project.
While the possibilities are impressive, there are challenges that could thwart future
growth of the Indian automobile industry. Since the demand for automobiles in
recent years is directly linked to overall economic expansion and rising personal
incomes, industry growth will slow if the economy weakens.
1. Maruti Suzuki
2. TATA
3. Hyundai
4. Mahindra
5. General Motors
6. Honda
7. Toyota
4
8. Ford
9. Fiat
10. Skoda
Chapter – 2
Industry Analysis
5
Swot Analysis
STRENGTH –
• India’s largest manufacturer of Fluid Transmission Products (‘FTPs’)
• Multi location manufacturing facilities spread all over India to serve Domestic
and International Customers
• Being the major manufacturer in India, it has the advantage of holding the
maximum percentage of market share.
• The company has a very impressive customer portfolio including some of the
automobile giants like – TATA, FIAT, HYUNDAI, CATERPILLAR, JCB,
ESCORTS and to name a few.
WEAKNESSES –
• Being the sole manufacturer, the company have the burden to meet the
global and domestic customer requirements.
OPPORTUNITIES –
• The Automobile industry in India is the seventh largest in the world with
an annual production of over 2.6 million units in 2009.
• By 2050, the country is expected to top the world in car volumes with
approximately 611 million vehicles on the nation's roads. This provides the
undue advantage to the company being the major manufacturer of
automotive parts.
THREATS –
7
Research Methodology
Research is composed of two words Re – Search which means to search again and
again or search for new facts or modify the older ones. Research process is
systematic way to gain new knowledge.
Types of Research –
• Exploratory Research –
• Descriptive Research –
The descriptive research studies are those which are concerned with describing
the characteristics of a particular individual, or a group such as age, sex,
education level, occupation or income. The objective of the study is to answer
the “who, what, when, where and how” of the subject under investigation.
8
• Causal Research –
The causal design investigates the cause and the effect relationship between
two variables. Suppose a manufacturer has sold his product at two points, T1
and T2. The sale in T2 is much higher than that in the previous year. During
the year, the firm has also launched an advertising campaign for its product.
The manufacturer is interested in knowing whether advertising has caused the
increase in the sale in the year T2.
9
Chapter – 3
Company Analysis
10
History
1970s
IAI started supplying to M&M, Telco, Kirloskar, FIAT, Ambassador etc. the only
automotive players in that decade.
1980s
Japanese collaborations like Maruti-Suzuki & LCVs from Mazda, Nissan, Toyota and
Mitsubishi started manufacturing in India. IAI started supplies to Maruti Suzuki,
DCM Toyota, Swaraj Mazda, JCB & Mahindra Nissan. For the first time, India
experienced high volume manufacturing of Cars. For the first time, India
experienced high volume manufacturing of Cars.
1990s
2000s
Global sourcing from multinationals overseas is a great potential area, like JCB,
John-Deere, New Holland, Cummins, Komatsu etc. IAI got status of approved
global supplier from John Deere, Cummins is already exporting to some OE
manufacturers overseas.
11
Imperial Auto Industries
The company policy is to ensure value for money to the customer, by providing
products, which meet customer's requirement. IAI strives to achieve
consistent improvement in quality through process control, adherence to quality
system and safe and clean working environment.
QS-9000 Certified in the year 2000, ISO-14001 awarded in 2003 and TS-16949
certified in 2004 IAI has become the ultimate choice of the global market in the
automotive sector.
Group Companies
• IAI Ltd. Chakan, Pune
Brake / Fuel tubes - Fuel injection tubes
Tubular cross members - Sheet metal components
Brake shoes for two wheelers
• Imperial Auto Nylon Tubings Ltd., Pune (formerly known as Eagle Picher
Imperial Auto Industries Ltd.)
Extruded nylon tubes.
Preformed automotive nylon tube assemblies in ready to fit condition
12
Company Philosophy
Flexible Hoses
○ Fuel Hose Assemblies
○ Radiator Hoses
○ Brake Hose Assemblies
○ Hyd. High Pressure Hose Assemblies
○ Vacuum & Heating Hose Assemblies
○ Air Starting System Hoses
○ Automotive Fuel System
○ Related Components and Sub- Assemblies
13
Product Group Quantity Unit pieces per
year
14
Sales – Domestic & Exports
Amount in - US $ (Million)
15
Export 0.21 0.43 3.06 7.22 12.7 23 16 27
Sales
Fig 1.1
Fig 1.2
As we can see in both the above graphs (Fig 1.1 and Fig 1.2) the net sales and the
profits are directly proportional and are continuously increasing except for the year
2008 – 2009 because of the economic slowdown which affected the buyer’s
indirectly causing decline in net sales of Imperial Auto.
As we can see the increase in the net sales leads to increase the profit of the
organization.
16
Diversified Vehicle Mix
Segment Customers
17
Source – Imperial Auto Brochure
18
Customer Policy
IAI ensure value for money to the customer by providing products which meet customer's
requirement.
We shall strive to achieve consistent improvement in quality through process control,
adherence to quality system and safe and clean working environment.
JCB INTERNATIONAL
TRUCKS USA
JOHNDEERE FRANCE
LISTER PETER UK
PIAGGIO ITALY
19
TRIUMPH UK
20
Competitors
2. Super Hoze
INTERNATIONAL COMPETITORS
1. Gates corporation
2. Teleflex
• DOMESTIC COMPETITORS
2. AADNI TECH
• INTERNATIONAL COMPETITORS
2. Tele flex
21
22
Supply Chain Management
It is the management of a network of interconnected businesses involved in the
ultimate provision of product and service packages required by end customers.
Supply Chain Management spans all movement and storage of raw materials,
work-in-process inventory, and finished goods from point of origin to point of
consumption.
Chapter – 4
Supply Chain Management
Procurement process -
Strategic plans are drawn up with suppliers to support the manufacturing flow
management process and the development of new products. In firms where
operations extend globally, sourcing should be managed on a global basis. The
desired outcome is a win-win relationship where both parties benefit, and a
reduction in time required for the design cycle and product development. Also, the
purchasing function develops rapid communication systems, such as electronic
data interchange (EDI) and Internet linkage to convey possible requirements more
rapidly. Activities related to obtaining products and materials from outside
suppliers involve resource planning, supply sourcing, negotiation, order
placement, inbound transportation, storage, handling and quality assurance, many
of which include the responsibility to coordinate with suppliers on matters of
scheduling, supply continuity, hedging, and research into new sources or
programs.
Also, changes in the manufacturing flow process lead to shorter cycle times,
meaning improved responsiveness and efficiency in meeting customer demand.
24
Outsourcing/partnerships -
This is not just outsourcing the procurement of materials and components, but
also outsourcing of services that traditionally have been provided in-house. The
logic of this trend is that the company will increasingly focus on those activities in
the value chain where it has a distinctive advantage, and outsource everything
else.
This movement has been particularly evident in logistics where the provision of
transport, warehousing and inventory control is increasingly subcontracted to
specialists or logistics partners. Also, managing and controlling this network of
partners and suppliers requires a blend of both central and local involvement.
Hence, strategic decisions need to be taken centrally, with the monitoring and
control of supplier performance and day-to-day liaison with logistics partners
being best managed at a local level.
25
Electronic Data
Interchange (EDI)
It is more than mere e-mail; for instance, organizations might replace bills of
lading and even cheques with appropriate EDI messages.
Advantages –
• Saves Money –
• Reduced Errors –
Another advantage of EDI is reduced errors, such as shipping and billing errors,
because EDI eliminates the need to rekey documents on the destination side.
• Speed –
One very important advantage of EDI over paper documents is the speed in which
the trading partner receives and incorporates the information into their system
26
thus greatly reducing cycle times. For this reason, EDI can be an important
component of just-in-time production systems.
Disadvantages –
“The existing process may therefore assume that goods are typically received
before the invoice. With EDI, the invoice will typically be sent when the goods ship
and will therefore require a process that handles large numbers of invoices whose
corresponding goods have not yet been received.”
• Another significant barrier is the cost in time and money in the initial set-up.
The preliminary expenses and time that arise from the implementation,
customization and training can be costly and therefore may discourage some
businesses.
• Increased efficiency and cost savings drive the adoption of EDI for most
trading partners. But even if a company would not choose to use EDI on
their own, pressures from larger trading partners (called hubs) often force
smaller trading partners to use EDI.
“An example of this is Wal-Mart’s insistence on using EDI with all of its trading
partners; any partner not willing to use EDI with Wal-Mart will not be able to do
business with the company.”
27
28
29
Window for EDI and Dispatch Upload
Transit Receive
30
Out Look
31
32
Exports Management
The term "export" is derived from the conceptual meaning as to ship the goods
and services out of the port of a country. The seller of such goods and services is
referred to as an "exporter" who is based in the country of export whereas the
overseas based buyer is referred to as an "importer". In International Trade,
"exports" refers to selling goods and services produced in home country to other
markets.
Advantages to consider:
33
List of Documents used in
Export Trade
34
Export Procedures
You should not be happy merely on receiving an export order. You should first
acknowledge the export order, and then proceed to examine carefully in respect of
items, specification, pre shipment inspection, payment conditions, special
packaging, labelling and marketing requirements, shipment and delivery date,
marine insurance, documentation etc. if you are satisfied on these aspects, a
formal confirmation should be sent to the buyer, otherwise clarification should be
sought from the buyer before confirming the order. After confirmation of the
export order immediate steps should be taken for procurement/manufacture of the
export goods. In the meanwhile, you should proceed to enter into a formal export
contract with the overseas buyer.
Entering into an Export contract
In order to avoid disputes, it is necessary to enter into an export contract with the
overseas buyer. For this purpose, export contract should be carefully drafted
incorporating comprehensive but in precise terms, all relevant and important
conditions of the trade deal.
There should not be any ambiguity regarding the exact specifications of goods and
terms of sale including export price, mode of payment, storage and distribution
methods, type of packaging, port of shipment, delivery schedule etc. The different
aspects of an export contract are enumerated as under:
• Product, Standards and Specifications
• Quantity
• Inspection
• Total Value of Contract
• Terms of Delivery
• Period of Delivery/Shipment
• Packing, Labelling and Marking
• Arbitration
35
BRIEF SPECIMEN CONTRACT FORM FOR SALE PURCHASE TRANSACTIONS
EXPORTS AND IMPORTS
I. Name and address of the parties.......(state correct appellation and
complete address of the parties)
II. We, the above named parties have entered into this contract for the
sale/purchase, etc. ....... (state briefly the purpose of the contract) on
this ........(date) at ........(place)..... subject to the following terms and
conditions:
a. Goods................
b. Quantity ...............Quality................. (Describe the quantity,
quality and the other specifications of the goods precisely as per
the agreement. An agency for inspection/certification of quality
and/or quantity may also be stipulated).
c. Price................ Mode of payment ...................(Quote the
price, terms, i.e. ex-works/FOB(free on board) CIF(Cost,
Insurance & Freight) etc. in the currency agreed upon and
describe the mode of payment i.e. payment against L/C(letter of
credit)/DA (document against acceptance) /D/P(document
against payment)etc. It is also desirable to mention the
exchange rate.)
d. Shipment............... (Specify date of delivery and the maximum
period upto which delivery could be delayed and for which
reasons, port of shipment and delivery should be mentioned).
e. Packing and marking...............(Requirements to be specified
precisely)
f. Insurance................. (State the type of insurance cover
required, i.e. FPA(free from particular average)/WA (with
average)/ All Risks, etc. State also the party responsible for
insurance)
g. Brokerage/Commission ........(if any payable may be mentioned)
h. Passing of the property and of risk. The property or ownership of
the goods and the risk shall finally pass to the buyer at such
stage as the parties may agree, i.e. when the goods are
delivered at the seller's place of work/pass the ship's rails/are
covered by insurance etc. as per agreed terms).
Arbitration
36
Arbitration clause recommended by the Indian Council of Arbitration: "All disputes
or differences whatsoever arising between the parties out of relating to the
construction, meaning and operation or effect of this contract or the breach
thereof shall be settled by arbitration in accordance with the rules of the
arbitration of the Indian Council of Arbitration and the award made in pursuance
thereof shall be binding on the parties."(or any other arbitration clause that may
be agreed upon between the parties). 3.Any other special condition, prevalent in
or relevant to the particular line of trade or transaction, may also be specified.
Export Pricing and Costing
Export pricing should be differentiated from export costing. Price is what we offer
to the customer. Cost is the price that we pay/incur for the product. Price includes
our profit margin; cost includes only expenses we have incurred. Export pricing is
the most important tool for promoting sales and facing international competition.
The price has to be realistically worked out taking into consideration all export
benefits and expenses. You can still be competitive with higher prices but with
better delivery package or other advantages.
Your prices will be determined by the following factors:
• Range of products offered
• Prompt deliveries and continuity in supply
• Frequency of purchase
As regards quoting the prices to the overseas buyer, the same are quoted in the
following internationally accepted terms:
INCOTERMS 2000
The International Chamber of Commerce had prepared a set of standard terms of
delivery in 1953. These terms could be used as export price quotations, known as
37
Incoterms. The purpose of Incoterms 2000 is to provide a set of international rules
for the interpretation of the most commonly used trade terms in foreign trade.
Thus, the uncertainties of different interpretations of such terms in different
countries can be avoided or at least reduced to a considerable degree. The scope of
Incoterms 2000 is limited to matters relating to the rights and obligations of the
parties to the contract of sale with respect to the delivery of goods sold. Incoterms
2000 do NOT apply to the contract of carriage. A brief description of each Incoterm
is outlined below:
EX WORKS (EXW)
The seller delivers when he places the goods at the disposal of the buyer at the
seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not
cleared for export and not loaded on any collecting vehicle. This term represents
the MINIMUM OBLIGATION FOR THE SELLER, and the buyer has to bear all
costs and risks involved in taking the goods from the seller’s premises. However, if
the parties wish the seller to be responsible for the loading of the goods on
departure and to bear the risks and all costs of such loading, this should be made
clear by adding explicit wording to this effect in the contract of sale. This term
should not be used when the buyer cannot carry out the export formalities directly
or indirectly. In such circumstances, the FCA term should be used, provided the
seller agrees that he will load at his cost and risk.
38
goods for export, this should be made clear by adding explicit wording to this
effect in the contract of sale. This term can only be used for sea or inland
waterway transport.
The CFR term requires the seller to clear the goods for export. This term can
only be used for sea or inland waterway transport. If the parties do not
intend to deliver the goods across the ship’s rail, the CIP term should be used.
39
The seller delivers the goods to the carrier nominated by him but the seller must
in addition pay the cost of carriage necessary to bring the goods to the named
destination. This means that the buyer bears all risks and any other costs
occurring after the goods have been so delivered. “Carrier” means any person
who, in a contract of carriage, undertakes to perform or to procure the
performance of transport by rail, road, air, sea, inland waterway, or by a
combination of such modes. If subsequent carriers are used for the carriage to the
agreed destination, the risk passes when the goods have been delivered to the
first carrier. The CPT term requires the seller to clear the goods for export. This
term may be used for all modes of transport.
The term “frontier” may be used for any frontier including that of the country of
export. Therefore, it is of vital importance that the frontier in question be defined
precisely by always naming the point and place in the term. However, if the
parties wish the seller to be responsible for the unloading of the goods from the
40
arriving means of transport and to bear the risks and costs of unloading, this
should be made clear by adding explicit wording to this effect in the contract of
sale. This term may be used for all modes of transport when the goods are
to be delivered at a land frontier. When a delivery is to take place in the port
of destination, on board a vessel, or on the quay (wharf), the DES or DEQ terms
should be used.
41
The seller delivers the goods to the buyer, not cleared for import, and not
unloaded from any arriving means of transport at the named place of destination.
The seller has to bear all the costs and risks involved in bringing the goods
thereto, other than, where applicable, any “duty” (which term includes the
responsibility for and the risks of the carrying out of customs formalities, and the
payment of formalities, customs duties, taxes, and other charges) for import in
the country of destination. Such “duty” has to be borne by the buyer as well as
any costs and risks caused by his failure to clear the goods for import in time.
However, if the parties wish the seller to carry out customs formalities and bear
the costs and risks resulting there from, as well as some of the costs payable upon
import of the goods, this should be made clear by adding explicit wording to this
effect in the contract of sale. This term may be used for all modes of
transport, but when delivery is to take place in the port of destination on
board the vessel or on the quay (wharf), the DES or DEQ terms should be
used.
42
While selling abroad, you may undergo the following risks:
i. Credit risk
ii. Currency risk
iii. Carriage risk
iv. Country risk
These risks can be insured to a great extent by taking appropriate steps.
Credit risk against the buyer can be covered by insisting upon an irrevocable letter
of credit from the overseas buyer. An appropriate policy from Export Credit and
Guarantee Corporation of India Ltd. can also be obtained for this purpose.
Country risks are also covered by the ECGC.
As regards currency risk, i.e. possible loss due to adverse fluctuation in exchange
rate, You should obtain forward cover from your bank authorised to deal in foreign
exchange. Alternatively, you should obtain export order in Indian rupee.
Carriage risk, i.e. possible loss of cargo in transit can be covered by taking a
marine insurance policy from the general insurance companies.
43
The following documents are required for custom clearance of the shipment of
goods by Air / Sea:
ARE.1 duly approved by the Central Excise Officer or Invoice showing clearance of
excisable goods.
44
Shipping Bill
This is the most important documents required by the customs authorities for
allowing exports. It contains all the details of the goods shipped. The clearing and
forwarding agent (also known as Custom House Agent), or the exporter himself /
herself fills up the shipping bill.
45
46
47
Packing List
48
The packing list is an extension of the commercial invoice, as such it looks like a
commercial invoice. .The exporter or his/her agent---the customs broker or the
freight forwarder---reserves the shipping space based on the gross weight or the
measurement shown in the packing list.
Customs uses the packing list as a check-list to verify the outgoing cargo (in
exporting) and the incoming cargo (in importing). The importer uses the packing
list to inventory the incoming consignment.
• Quantity
• Weight
• Measurement
• Total Quantity
49
50
Invoice
An invoice a commercial document issued by a seller to the buyer, indicating
the products, quantities, and agreed prices for products or services the seller has
provided the buyer. An invoice indicates the buyer must pay the seller, according
to the payment terms. The buyer has a maximum amount of days to pay these
goods and are sometimes offered a discount if paid before.
From the point of view of a seller, an invoice is a sales invoice. From the point of
view of a buyer, an invoice is a purchase invoice.
51
52
Packaging and Labelling
Packaging refers to a container in which the product reaches the end use
consumer. It is a part of the presentation of the product and stays right till the
consumer takes it from the retail store. It should not be confused with packing.
Packing refers to the external protective covering used for the safe transportation
of the goods to the importer.
As a matter of fact, the competition between the exporters at the foreign market
place is not in relation to the core product or its basic tangible features but it is
the augmented product.
Functions of Packaging –
Packaging of goods for exports performs the following functions:
1) The product is broken down into saleable units in terms of size or weight or
any other dimensions relevant to that product.
53
Packaging Design –
The exporter should also keep in mind the product and the target group of
customers while designing the primary packaging of the product.
54
55
Labelling
Labelling is the process of fixing labels on the export product. Its main purpose is
to inform the consumer essential details in respect of the product as regards its
quantity, quality, how to use it and maintain it. Many a time, the foreign buyers
insist on inclusion of a particular type of label to comply with the regulations of
their countries. Different countries have different regulations as regards labelling
of the product.
One of the most common regulations is in respect of the origin of the goods i.e. a
product must carry a label to indicate the country in which it has been
manufactured.
Forms of Labels –
1) Strip of cloth
2) Card label
3) Adhesive sticker
4) User’s manual
56
Features of good quality label –
57
Findings
• Planning applications
• Execution applications.
Chapter – 6
Planning applications are designed to devise an optimal solution for filling an
order. Findings &
Recommendations
Execution applications are designed to track the physical status of goods, manage
materials and track financial information associated with the supply chain.
Certain Supply Chain Management applications are based on open data models
and support the sharing of data within and outside an organization. Through the
sharing of data, SCM applications can improve the time-to-market of products,
reduce product costs and allow a better management of resources.
Minimized Delays
Many supply chains – particularly those that haven’t been enhanced with a supply
chain application – are plagued by delays that can result in poor relationships and
lost business.
Late shipments from vendors, slow downs on production lines, and logistical errors
in distribution channels are all common issues that can negatively impact a
company’s ability to satisfy customer demand for its products.
With supply chain software, all activities can be seamlessly coordinated and
executed from start to finish, ensuring much higher levels of on-time delivery
across the board.
Supply chain software’s provide complete, 360 degree visibility across the entire
supply chain network – something that cannot be easily achieved with disjointed
manual processes.
58
With supply chain, users can monitor the status of all activities across all
suppliers, production plants, storage facilities, and distribution centres. This
enables more effective tracking and management of all related processes, from
the ordering and acquisition of raw materials, through manufacturing and shipping
of finished goods to customers. So the status of mission-critical activities can be
tracked at all times, and potential inefficiencies or problems can be identified and
corrected immediately, before they become unmanageable.
Reduced Costs
Weaknesses –
• Being the sole manufacturer, the company have the burden to meet the
global and domestic customer requirements.
• There are three major buyers of Imperial auto products in India which is
quite a risky position depending on just three of these companies.
○ TATA
○ Cummins
○ JCB
59
•
Recommendations
• Since, India is expected to top the world in terms of car volumes on nation’s
road, it provides great opportunity for Imperial Auto but at the same time
they should increase their production capacity in order to meet the customer
requirements.
• There are three major buyers of Imperial auto products in India which is
quite a risky position depending on just three of these companies. They can
have other buyers which can help them reduce their risk of order
cancellation. They should increase their share in the other companies in
order to minimise the risk.
• The company has very less domestic warehouses due to which they fall for
extra expenses after the production. They are more and more emphasizing
on immediately exporting goods produced to their international warehouses.
• The company has made substantial investments to fully automate the rubber
hose manufacturing process; they should also focus on purchasing
appropriate fully automated machines for other products to reduce the
production time because improved machines will take less time.
60
Conclusion
61
Bibliography
1) www.impauto.com
2) Export Management – P.K.Khurana
3) Supply chain management - John T. Mentzer
62
63
SYNOPSIS
OBJECTIVE: Chapter – 7
To have an efficient understanding of Imperial Auto Industries, its Supply Chain Management
Annexure
processes, Export Procedures and Documentation.
RESEARCH METHODOLOGY:
My research is an exploratory research because the objective of the exploratory research is to
generate new ideas and insights and helps to determine the best research design, data collection
method and selection of subjects.
RECOMMENDATIONS:
• Being the sole manufacturer Imperial Auto should increase their production capacity in
order to meet the customer requirements.
• The company has very less domestic warehouses due to which they fall for extra expenses
after the production.
• The company has currently only 3 major buyers, it can go for more domestic buyers.
• Use of latest machinery can be of great advantage to the company and which is a must in
today’s modern world.
• Should also focus on purchasing appropriate fully automated machines for other products to
reduce the production time.
CONCLUSION:
• Being a member of Imperial Auto Industry facilitates to know about the Supply Chain
Management Processes of the company and also tell us about the delegation of powers. It
gives an idea about the team work done by the marketing & export team together.
• It is quite knowledgeable to know the Export Procedures.
• To learn the Export Documents is of great importance as it helped to learn what all is
necessary to be taken into consideration while processing the order before exporting.
I express my sincere gratitude towards my Industry guide, Mr. Vijay Patel and my Faculty guide,
Mr. Ravi Prakash for their able guidance, continuous support and cooperation throughout my
project, without which the present work would not have been possible. They have not only
64
provided me with knowledge required but also made me feel comfortable during the internship
programme.
65
FUEL INJECTION PIPE ASSEMBLIES
BRAKE TUBES
66
Product Range
67
TEFLON HOSE ASSEMBLIES
68
69
CRDI PIPES
70
CRIMPED BRACH HOSES
71
Case Study
RAW MATERIALS & FINISHED PRODUCT HANDLING & STORAGE
Imperial Auto Industries is well established strong company and has heavily
invested in several auto-parts plants in important automotive fields; each plant’s
facilities meet international standards to assure the quality of the product
at international level.
THE BRIEF
As the demand for these products has increased, methods of storing and handling
raw materials and finished goods have to be continually evolved. The project was
to consider alternative methods and technologies which would increase storage
capacity whilst at the same time improving accessibility.
THE APPROACH
This is a complex manufacturing operation with many varied processes, fed with a
variety of raw materials and components. Because production throughput long ago
out stripped the on-site warehouse capacity, finished goods are taken off-site to
be handled by a distribution contractor. The current phase of evolution involved
just-in-time supply of components and packaging to feed production. This meant
that the on-site storage resources had to be rationalised in order to continue to
store certain vital commodities whilst creating space for continuous in-feed and
finished product output.
72
Discussions were held with the product managers and teams in the production
areas as well as the receipts and despatch supervisors to identify requirements
and constraints.
A new dispatch bay complex was designed which allowed the existing facilities to
be dedicated to inbound materials. The two warehouse areas were completely re-
designed and furnished with new equipment where required which included on line
labelling and stretch wrapping for dispatch.
THE RESULT
The problems of congestion and materials shortages which had been worsening
were eliminated with a smooth reliable flow of materials in and finished product
out of the plant
73