STUDY AND ANALYSIS OF SHIPMENT AND

TRANSPORTATION COST OF VARDHMAN

TEXTILES LIMITED

Presented by:

Deepika

Introduction about Textile Industry

Largest industry when it comes to employment

Contributes about 34% of total exports

India is the second largest producer of cotton yarns and fifth in production of synthetic fibres and yarns.

Contd..

Segments of Textile Industry

Processes used in Textile Industry

Leading Textile mills

Vardhman group

Set up: 1965Steel:1973Sewing thread:1982 Fabric weaving:1990Acrylic fibre: 1999

Vision

Rooted in Values, Creating World Class

Textiles.

Mission statement

Vardhman aims to be world class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of-the-art technology and human resources. Vardhman is committed to be responsible corporate citizen.

Logo of group

Major Highlights

Largest exporter of cotton yarns.Largest range of textile products.Second largest producer of

sewing thread in the country.First in Indian textile industry to

get ISO certification in yarns and sewing thread.

Group units

State Number of

units

Punjab 8

Himachal

Pradesh

9

Madhya Pradesh 5

Gujarat 1

Tamil Nadu 1

Business portfolio

YarnFabric Sewing threadAcrylic fibre Steel

Organizational hierarchy

Functions of departments

MIS Exports Finance Marketing HR Taxation EDP & IT Projects & Planning

SWOT Analysis

Strength

Weakness

Opportunity

Threat

Current ratio

2007-08 2008-09 2009-10

Current assets (Rs. Lac)

153628.45 161172.29 203654.93

Current liabilities (Rs. Lac)

26204.85 24142.11 26702.47

Current ratio 5.86 6.67 7.62

Quick ratio

2007-08 2008-09 2009-10

Quick assets (Rs. Lac)

66592.12 99162.24 92909

Current liabilities (Rs. Lac)

26204.85 24142.11 26702.47

Quick ratio 2.54 4.1 3.47

Debt-Equity ratio

2007-08 2008-09 2009-10

Debt (Rs. Lac)

239123.43 394594.29 262079.79

Shareholders’ fund (Rs. Lac)

117213.90 127275.03 145584.96

Debt-Equity ratio

2.04 1.95 1.8

Earning per share

2005-06 2006-07 2007-08 2008-09 2009-10

Earning per share (Rs.)

33.98 29.72 21.21 24.37 37

2.5

12.5

22.5

32.5

Rs.

Turnover of Vardhman group

2005-06 2006-07 2007-08 2008-09 2009-10

Turnover(Rs. Crore)

1957.25 2159.24 2346.36 2495.38 2767.22

250

750

1250

1750

2250

2750R

s.

Cro

re

Segment revenue for 2009-10

10%

6%

20%

7%

3%

54%

Revenue of segments(Rs. Crore)

Sewing Thread Steel Fabric Acrylic Fibre Unallocated Yarns

Logistics and logistics management

Logistics is the management of • the flow of goods • information and • other resources between the point of origin and the point of consumption

Business logistics

“having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer"

Definition

Sub part of logistics

It includes all types of mode of transport used by the company for shipments.

Mode of transport may be1. Rail 3. Air2. Sea 4. Road

It is the physical process of transporting goods by land, air, and sea

Terms of shipment

• Cost and freight (C&F)

• Cost, insurance, and freight (CIF)

1.American President Lines

3.Shipping Corporation of India

4.Wan Hai Lines

2.Mediterranean Shipping Company( MSC)

5.K-LINE

7.OOCL

6.NYK

A person licensed under these regulations to act as agent for the transaction of any business or the import or export of goods

•Transact business in the Customs Station

•Advise the client

•Maintain records and accounts

•Ensure that all documents

To study the shipment & inland transportation costs for export shipments through different destinations. To analyze the share of major shipping lines in context to different ports 

To analyze the share of major shipping lines in context to different sectors. To draw out suggestions, for reducing lead time of cha’s to different export destinations

Research methodology

Research design: Descriptive

Sampling oTarget populationoSampling unitoSample sizeoSampling technique: judgemental

Contd..

Data collection: primary and secondary

Limitations

Limited scope

Difficult to analyze the data

Data analysis and Interpretation

within 8 days

9-10 days 11-12 days 13-15 days 16-18 Days 19-20 days above 20 days

3ACES 0.220849420849423

0.444787644787645

0.690347490347492

0.893436293436293

0.953667953667954

0.974517374517375

1

JK 0.265 0.51 0.710000000000001

0.905 0.965000000000001

0.98 1

10.00%

30.00%

50.00%

70.00%

90.00%

110.00%

EFFIC

IEN

CY

(I

N %

AG

E)

Table 4.3 Comparison of sob data of 3ACES & JK ( Delhi Port)

Table 4.3 Comparison of sob dataof OM & JUPITER( Bombay Port)

within 8 days

9-10 days 11-12 days 13-15 days 16-18 Days 19-20 days above 20 days

JUPITOR 0.522082018927439

0.813880126182965

0.921135646687698

0.960567823343849

0.965299684542595

0.971608832807583

1

OM 0.551876379690949

0.757174392935983

0.902869757174398

0.95364238410596

0.973509933774835

0.977924944812362

1

10.00%

30.00%

50.00%

70.00%

90.00%

110.00%

EFFIC

IEN

CY

(IN

%A

GE)

within 8 days

9-10 days 11-12 days 13-15 days 16-18 Days 19-20 days above 20 days

pink 0.242603550295858

0.43786982248521

0.656804733727817

0.828402366863905

0.94674556213019

0.970414201183432

1

ITS 0.254143646408836

0.475138121546961

0.696132596685084

0.878453038674039

0.972375690607736

0.983425414364641

1

10.00%

30.00%

50.00%

70.00%

90.00%

110.00%

EFFIC

IEN

CY

(IN

%A

GE

Table 4.8 Indian Sub Sec.

APL25%

KLINE4%

MOL9%NYK

30%

SCI19%

WANHAI12%

YML1%

Table4.9 Far East

APL74%

CSAV1%

KLINE

1%

MOL3%

NYK8%

OOCL3%

SCI2%

WANHAI8%

YML0%

Table 4.10 Middle East

ANL22%

SCHENKER12%

WANHAI25%

RCL20%

PAREKH22%

Table 4.11 South East

ANL32%

MSC13%

YML55%

Table 4.12 South Africa

CMA2%

DAMCO46%

DELMAS2%

EMU10%

MSC12%

SAFMARINE21%

TEAM GLOBAL8%

Table 4.13 Europe 

AFL1%

APL7%

CMA6%

CSAV4%

DAMCO9%

HAPAG2%

KLINE2%

MAERSK4%

MSC33%

SCI29%

UASC2%

Table 4.14 North Africa 

CSAV14%

KLINE7%

MOL1%

MSC8%

SCI70%

Table 4.15 South America

 APL20%

CMA17%

CSAV

2%

HAM-SUD26%

KLINE7%

MOL26%

MSC2%

Table 4.16 North America 

 

ANL1% APL

18%

CMA18%

MSC59%

NYK3%

OOCL1%

Port wise analysis of shipping lines

 

 

Table 4.17 Korea 

 

 

APL78%

CSAV1%

HYUNDAI2%

KLINE2%

SCI5%

SINOKOR10%

WANHAI1%

Table 4.18 Japan

 

 

 

APL81%

MOL

5%

NYK

6%WANHAI

7%

Table 4.19 Hongkong

 

 

 APL98%

NYK0%

WANHAI1%

YML1%

Table 4.20 Bangladesh 

 

 

 

APL29%

EVERGREEN6%

MISC9%

MOL6%

NYK30%

SCI20%

YML1%

Table 4.21 China

 

 

 

 

APL68%

HYUNDAI2%

KLINE1%

MOL2%

NYK2%

OOCL4%

WANHAI13%

SCI3%

MAERSK2%

COSCO1%

CSAV2%

Table 4.22 Vietnam 

 

 

 

 

APL63%

EVERGREEN8%

NYK10%

OOCL13%

WANHAI3%

OTHERS3%

Table 4.23 Egypt 

 

 

 

 

 

CSAV15% KLINE

7%

SAFMARINE1%

SCI66%

UASC11%

Table 4.24 Srilanka

 

 

 

 

 

 

APL22%

KLINE12%

MISC3%

MOL3%

NYK8%

SCI19%

WANHAI33%

Table 4.25 Australia

 

 

 

 

 

 

APL25%

CMA8%

HAPAG7%

KLINE5%

MISC24%

MOL5%

NYK21%

MAERSK2%

OOCL3%

Table 4.26 Belgium

 

 

 

 

 

 

AFL4%

CMA8%

CSAV12%

MSC7%

SAFMARINE3%

SCI61%

OTHERS5%

Table 4.27 Spain

 

 

 

 

 

 

APL12%

DAMCO4%

HANJIN2%

MSC77%

UASC5%

ANALYSIS OF SAVING THROUGH M.P. UNITS 

 

 

 

 

 

 

 

MDP BBY OTH MDP BBY OTH MDP BBY OTH MDP BBY OTH1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER

0

50

100

150

200

250

114

138

69

148

88

148

65

206

8

ANALYSIS OF PRIMARY DATA

 

 

 

 

 

 

 

 

Findings

 

 

 

 

 

 

 

 

•It is found out that JK is more efficient than 3 ACES. •OM is showing better performance than Jupiter.•Overall ITS’s performance is better than Pink City•APL is handling more business of vardhman Textiles than other shipping lines.

CONTD…

 

 

 

 

 

 

 

 

•In North Africa SCI is handling 70% of the total business.

•APL is handling 98% of the total business in Hong Kong

•Vardhman has done more ICD stuffing this year comparative to previous year.

•Vardhman has made a cost cutting RS.29.19 Lacs through the shipment from Mandideep.

CONTD…

 

 

 

 

 

 

 

 

•If company will depend upon only 3ACES , it can create some problem in future. To avoid it, business should be diversified.

•As both cha’s are providing same level of services even than JUPITER is more preferable because JUPITER is handling much more business than OM but providing the same efficiency level

•Cost of OM & JUPITER is same but according to efficiency more shipments should be done through JUPITER.

•Lead time of getting shipments examined can be reduced by providing more business to ITS.

Recommendations

 

 

 

 

 

 

 

 

•JK should be given more business as it is providing better service

•Cost of 3 ACES is more than JK, even than it is handling a big share of non M.P. business. Share of 3 ACES should be reduced

•As both cha’s are providing equal services even than JK is preferable over 3ACES because It may be beneficial from cost aspect. JK is also better in case of examination of shipments.

•Overall performance of JK is good and can be provided with more business.