export procedures of nalco

EXPORT PROCEDURES OF NALCO

Presented By: PRATICK GAYEN 08DM070

RESEARCH METHODOLOGYOBJECTIVE To understand the export procedures of Nalco and various

documents required for that.

DATA SOURCES:

SECONDARY DATA: Internal data: Financial statements, annual reports, director’s

report, research reports files, docets which contained customer letters, sales call reports, and customer lists.

External data: Internet and Nalco website

PRIMARY DATA: Depth interview with Nalco staff and officials

NATIONAL ALUMINIUM COMPANY LIMITED ( NALCO ) Incorporated in 1981, as a public sector enterprise of the

government of India, National Aluminium Company (NALCO) is Asia’s largest integrated aluminium complex, encompassing bauxite mining alumina refining, aluminium smelting and casting, power generation, rail and port operations.

Commissioned during 1985-87 under extremely difficult logistics of project management that too without time or cost over-runs, Nalco has emerged to be a star performer in production and export of alumina and more significantly, in propelling self-sustained growth.

It is the first Indian company to be registered with the London Metal Exchange and has ISO 9000-2001 and ISO14001 certifications for all its units including mines, alumina refinery, aluminium smelter and power plant. Nalco products are exported to more than 30 countries.

EXPORT OF METAL Nalco started exports of Aluminum metal in September

1988. The company’s metal was registered with the London Metal

Exchange(LME),London in 1989. The company presently exports primary aluminum in the

form of Ingots and Sows. The Ingots and Sows that are exported are normally of LME

grade i.e. conforming to the specification: Al.99.7 pct min, Fe.0.20 pct max and Si 0.10 pct max.

Export of others products, such as Wire Rods ,Billets etc., have been done in the past and could be considered in future depending on the market situation and availability of products of required quality.

Nalco presently exports through the sea-ports in Kolkata, Paradip & Vishakhapatnam and through land to Bangladesh .

EXPORT PROCEDURES IN NALCO REGISTRATION OF CUSTOMER ORDER BOOKING:• LIMITED TENDERING• ONE-TO ONE CONTRACTS• PARTICIPATION IN GLOBAL TENDERS SALE ORDER:Material descriptionQuantityShipment scheduleDelivery basisPriceMutational period ( in case of lame linked contracts )Payment termsStandard terms and conditions

Name & addressee of advising/ negotiating bank

EXPORT PROCEDURES IN NALCO

DISPATCH INSTRUCTION LETTER OF CREDIT RAKE DISPATCH DOCUMENTS :

[A] APPLICATION FOR REMOVAL OF EXCISABLE GOODS FOR EXPORT(ARE-1 FORM)

[B] PACKING LIST


PRE-SHIPMENT ACTIVITIES & DOCUMENTS

[A] DECLARATION OF DESTINATION TO NALCO’s PORT OFFICES

[B] RAKE DATA UPDATION [C] PROFORMA INVOICE[D] PACKING LIST[E]CAST/HEAT WISE STATEMENT[F]ARE-PI STATEMENT


POST-SHIPMENT DOCUMENTATION• Bill of Lading• Certificate of Origin • Shipping Bills )


ACTIVITIES RELATED TO METAL SHIPMENT AT PORT (VIZAG / PARADIP

/KOLKATA)

SUGGESTIONS As Nalco is a public sector undertaking the export

procedures and documentation are already pre-defined and pre-determined as per the guidelines of Nalco and it cannot deviate from that.

Currently Nalco’s customer base is concentrated only in the Asian market; it can expand its customer base further outside Asia to make its global presence more strong like its competitors.

As far as the documentation part is considered, some documentation part consumes more time like the L.C; also there are many lengthy procedures. Nalco should opt for a more smooth procedure which consumes less time.

SUGGESTIONS Quality specifications should be maintained

so as it conforms to the standards demanded by the buyer so as to get minimal number of customer complaints.

Nalco has currently implemented e-export system which some customers are not very convenient with so Nalco should switch to a more user-friendly e-system.

Nalco should address the customer complaints more efficiently

export procedures of nalco

Documents