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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.
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