Rattan Institute of Technology & Management

Palwal, Haryana
Summer Internship Project
on
‘marketing strategy
For

INTERNATIONAL MARKETING

Submitted in partial fulfillment of the award of degree of

MASTERS OF BUSINESS ADMINISTRATION
(Session 2017-2019)
Affiliated to

J.C.BOSE UNIVERSITY OF SCIENCE AND TECHNOLOGY,

YMCA FARIDABAD
Submitted to: Submitted by:
Controller of Examination Name: Monu
Roll no:17MBA64
Semester 4th
 2

DECLARATION

This is to certify that I Monu, student of MBA 4th sem., have completed the Project
Report titled ”(International Marketing)” in partial fulfillment of the requirement
for the award of Degree of Masters of Business Administration at Rattan Institute
of Technology & Management , Palwal, which is affiliated to YMCA
University.
The information and data given in the report is authentic to the best of my
knowledge.
This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Signature:

Place: Name: Monu

3

AKNOWLEDGEMENT

The research on “MARKETING STRATEGY” had been given to me as part of the curriculum

in 2-Years Masters Degree in Business Administration.

All praise and honor to Almighty God who guided us throughout this project.

I am indebted to my Guide Prof. Mahesh Tanwar for his support and guidance at each stage of

the project work failing which project completion would have been a rather difficult task.

I also thank for guiding me and also helping me in solving problems related to my research,

forming hypothesis etc.

I am also indebted to my Parent and to our Beloved Friends for their care and encouragement.

(MONU )
 4

LIST OF FIGURES/ TABLES

FIGURE NO. FIGURE TITLE PAGE

Figure 1............................................. Pacific verticals ....................................................................3
Figure 2...............................................Organizational Structure .................................................... 5
Figure 3...............................................Home Lighting Systems .................................................... 7
Figure 4...............................................Solar pumps ...................................................................... 7
Figure 5...............................................Solar Water Heating Systems ........................................... 8
Figure 6...............................................LED indoor portfolio. ....................................................... 8
Figure 7...............................................LED outdoor portfolio ....................................................... 8
Figure 8...............................................SWOT analysis of company .............................................. 9

Table 1.......Roadmap set by Indian Government to achieve 100GW solar power. ...................... 2
5

CONTENTS

CHAPTERS PAGES
TITLE PAGE
SUMMER TRAINING CERTIFICATE
PREFACE
ACKNOWLEDGEMENT
LIST OF FIGURES/ TABLES
Chapter 1 Introduction.................................................................................................................... 1
1.1Overview of the Industry...,......................................................................................... 1
1.2Profile of the Organization ….......................................................................................2
1.2.1Management team.......................................................................................... 4
1.2.2 Core Values................................................................................................... 5
1.2.3 Clients .......................................................................................................... 6
1.2.4Products.......................................................................................................... 7
1.3Competition Information ..............................................................................................9
1.4SWOT Analysis.......................................................................................................... 9
Chapter 2 Objective and Methodology......................................................................................... 10
2.1 Methodology ............................................................................................................ 10
Chapter 3 Literature Review ....................................................................................................... 11
Chapter 4 Data analysis .................................................................................................................12
4.1Supply Chain practices in Pacific Fire Controls ....................................................... 12
4.2Documentation Work ................................................................................................ 12
4.3Vendor Selection Criteria............................................................................................14
4.4Memorandum of Understanding ............................................................................... 16
4.5 Exhibition Visit ....................................................................................................... 16
4.6Import Issues ............................................................................................................. 16
4.6.1 Outsourcing and Buyer Identification ......................................................... 16
 6

4.6.1Clearing and Forwarding Agent....................................................................17

4.6.2Letter of Credit ........................................................................................... 18
4.6.3Incoterms.......................................................................................................19
4.6.4 Some other terms. ......................................................................................... 22
Chapter 5 Findings and Recommendations ................................................................................. 23
5.1 International Level. ................................................................................................. 23
5.2National Level......................................................................................................... 24
Bibliography ...................................................................................................................................26
Annexure …................................................................................................................................. 27
Annexure 1 ...................................................................................................................... 28
Annexure 2 ...................................................................................................................... 30
Annexure 3 ...................................................................................................................... 31
Annexure 4. ...................................................................................................................... 32
Annexure 5 ...................................................................................................................... 33
Annexure 6 ...................................................................................................................... 34
Annexure 7 ...................................................................................................................... 35
Annexure 8 ...................................................................................................................... 36
Annexure 9. ...................................................................................................................... 40
Annexure 10. .................................................................................................................... 43
Annexure 11. .................................................................................................................... 44
Annexure 12. .................................................................................................................... 47
Annexure 13. ................................................................................................................... 51
Annexure 14. .................................................................................................................... 52
Annexure 15. .................................................................................................................... 53
Annexure 16. .................................................................................................................... 54
Annexure 17. .................................................................................................................... 58
 CHAPTER 1 - INTRODUCTION
This sections includes a complete introduction about the company, its profile, products portfolio,
core values, clients, competition information, SWOT analysis, during its journey of the last two
years.

1.1OVERVIEW OF THE INDUSTRY AS A WHOLE

Established in 1987, Pacific Fire Controls is a pioneer and a diversified leader in the field of
Passive Fire Protection & Evacuation Systems, serving customers with fire security equipments
and services for buildings, industries, Shopping malls, hospitals etc with a dedication to protect
life and property from fire hazards 24 hours a day.

They are the manufacturers of Fire Doors & distributors of renowned fire safety and evacuation
products like Coopers Fire & Smoke Curtains UK, Evac + Chair UK & many more...

The commercial office is located in a well associated area of Karol Bagh. The manufacturing plant
is located in one of the most prominent industrial sector.

Our Fire Doors are manufactured as per BS: 476 part 22 & IS 3614 part & are duly approved by
CBRI, Roorkee. All products offered by us strictly follow the applicable norms and standards to
their respective country of Origin and are acceptable in Indian market.

We seek partnership that adds value to our every employee and customer.

Our friendly and professional staff is expertise to fully meet the individual requirements & needs of
the clients

2015 has been a year of growth for Indian Solar Industry. At the end of an eventful 2014, the
Ministry of New and Renewable Energy (MNRE) announced that India’s total grid-connected
solar capacity crossed 3 GW in December 2014. A total of 886 MW was added during the
calendar year 2014, which made it another year of less than 1 GW installation. The MNRE
started the process for allocation of 3 GW of solar projects under the state specific programme.
Several Central Public Sector Undertakings (USA) and government organizations are also in the
process of setting up solar plants. 3 southern states – Karnataka, Andhra Pradesh and the newly

1
 carved Telangana – allotted 500 MW of solar projects each, and if all goes well, a majority of
these projects will be commissioned by end of 2015/early 2016.

Apart from that, several projects that were started in 2014 will be completed in 2015. These
projects include the 750 MW of solar projects allotted under the Phase 2, Batch 1 of JNNSM,
allocation under the state policies of Uttar Pradesh, Punjab and Madhya Pradesh. Overall, it is
expected that around 2 GW of solar capacity will be added in 2015.

While the 2 GW growth prospects give immediate relief to the industry, what excites and
sometimes overwhelms the industry is the ambitious revision of solar targets by the new
government. The government is proposing a 5-fold increase in the JNNSM targets and is
planning to revise it from 20 GW of grid-connected solar to 100 GW by 2022 or even earlier.

The government has nonetheless gone ahead and released the year-wise roadmap to achieve the
goal of 100 GW by 2020:

Table 1: Roadmap set by Indian Government to achieve 100GW solar power

Overall, 2015 promises to be a good year for the Indian solar sector and the start of a golden era
for solar if all the government is able to convert good intentions to reality.
2
 1.2PROFILE OF THE ORGANISATION
In order to provide the requisite focus to the Renewable Energy Business, Pacific Fire Controls.
was incorporated as an entity in 2013. The company generates the ideas, technologies and
solutions that meet the planet's demand for smarter, cleaner & better energy by creating a
sustained value.

Pacific is structured around 3 business verticals:

i. Pacific solar solutions vertical:

The company’s Solar energy based solutions are designed to last long and serve a variety

ofpurposes, under the brand name “Pacific Solar”.

• Solar Lighting portfolio - Solar led lanterns, Solar home lighting systems, Solar street
lighting systems.
• Solar Thermal portfolio - Solar water heating systems (ETC & FPC)

• Solar Miscellaneous portfolio - Solar water pumps, Solar road flashers, Solar signages
and much more.

The core strength lies in making need-based quality products and providing prompt aftersales
service.

i. Pacific energy consulting services vertical:

The company is committed to provide our clients with all the information and
resources you need to ensure you have access to high quality consulting services
for residential, commercial, industrial applications especially solar specific &
LED specific.

ii. Pacific LED solutions vertical:

PACIFIC offers various solutions for LED, both for Indoor and Outdoor applications.
PACIFIC Led Portfolio comprised of:
LED Bulbs: 5 Watts, 7 Watts, 10 Watts

3
LED Panels: Of various configurations (edge lit / back lit)
LED Downlighters: Of various shapes, sizes and Watts
LED Street Lights: Of different WattagesLED
Focus Lights: Of all configurations

5
4

6
Moreover, Pacific is flexible to provide any customization for any type of LED products.

Pacific
SOLAR
SOLUTIONS

Pacific Pacific Fire

ENERGY
CONSULTING
Controls and
SERVICES energy Solutions

PACIFIC LED
SOLUTIONS

Figure 1:Pacific Verticals

7
1.2.1MANAGEMENT TEAM

MR. RAKESH ARORA

The Managing Director and CEO of Pacific Fire controls who guides the company in strategy
and promotions. With innovative ideas he oversees the marketing activities & heads the product
development. He is passionate about Solar Energy and envisions it to take a lead in Renewable
Energy Sources in India. The potential for Solar Energy to become a trillion-watt energy market
in the world excites him and it has driven him to start this venture with much zeal and
enthusiasm. He is also a member of IEEE.

PROF. K.R. CHARI

He is the Advisory Board Member. Former Vice President Development, Unique Computing
Solutions India (A subsidiary of Unique Computing Solutions, USA). Currently he is Senior
Professor at Birla Institute of Management Technology (Greater Noida) and is also Chief
Mentor of Center for Innovation and Entrepreneurship Development CIED. His area of expertise
are: Energy Management, System Design, Value Engineering.

R&D TEAM

Pacific do have a team of skilled and experienced workforce, which works diligently to offer an
excellent SOLUTION AND SERVICES to our clients. Pacific team is dedicated to deliver a
range of products that can meet the dynamic needs of the clients in this ever-changing era.
Our team comprises the following members:

• Quality Analysts

• Sales Managers

• Operations Managers

• Packaging experts

• Warehousing experts

• Skilled employees

• Supervisors

8
9
INTEGRITY: We work with highest ethical standards and demonstrate a behavior that is honest,
decent and fair. We are dedicated to the highest levels of personal and institutional integrity.

INNOVATION: We constantly support development of newer technologies, products, improved

processes, better services and management practices.

COMMITMENT: We set high performance standards for ourselves as individuals and our teams.
We honor our commitments in a timely manner.

EXCELLENCE: We are committed to deliver and demonstrate excellence in whatever we do.

TEAM WORK: We work together as a team to provide the best solutions and services to our
customers. Through quality relationships with all stakeholders we deliver value to our customers.

OUR PHILOSOPHY

Our clients should know us, as a solution provider, they can trust with technology to lead them into
the future. Our system is based on our client’s real needs, not the latest industry fad or buzzword. We
offer solutions that make sense for our customers, now and in the future.

1.2.3CLIENTS
i. Residential

ii. Commercial

iii. Hospitals & healthcare facilities

iv. Large corporate & SME business houses

v. Industrial

vi. Petrol pump stations

vii. Telecommunication towers (BTM)

viii. Government

ix. Remote village electrification

x. Retail

xi. FMCG
10
 xii. Logistics

xiii. Automative

xiv. Builders & developers

xv. Colleges

xvi. Universities

xvii. Schools

xviii. Architects

xix. Interior designers

xx. Banking services

xxi. Government buildings

xxii. RWA

xxiii. Government contractors

xxiv. Hospitals

xxv. Electrical consultants

xxvi. Lightning consultants

xxvii. Carbon footprint services

xxviii. Corporate offices / Shopping

complexes

xxix. Industrial units

xxx. Government Buildings / Courts /

Jails

xxxi. Townships / depots

xxxii. Housing societies

xxxiii. Reports / guest houses / hotels

11
 xxxiv. Farm houses / bungalow.

xxxv. Defence establishments

xxxvi. Rural electrification

1.2.4PRODUCTS

Figure 3:Home Lighting Systems Figure 4: Solar Pumps

EVACUATION CHAIR Figure 5: Solar Water Heating System

1
Figure 6: LED indoor portfolio

Figure 7: LED outdoor portfolio

1
 1.3COMPETITION INFORMATION
Various competitors prevail in the market for PACIFIC based on the marketing of Led lights.
These are:
i. Philips viii. Oreva

ii. Osram ix. MoserBaer

iii. Havells x. Surya

iv. Wipro

v. Bajaj

vi. Eveready

vii. SYSKA

1.4SWOT ANALYSIS

• Existing player in the market

STRENGTHS •Restructuring based on real life issues

•Market well segmented
• Aggressive Marketing Strategy

• Low brand visibility

• Failure to penetrate the market first time around

WEAKNESS •Requirement to build a new team

• Limited capacity to launch a big marketing campaign

• Business engine for fiscal growth

OPPURTUNITIES • Value for money an essential component in

market scenario

• Competition from existing player in similar

THREAT market

1
 • Competition from new entrants in the market

Figure 8: SWOT Analysis of the company

1
 CHAPTER -

2 OBJECTIVE AND METHODOLOGY

The primary objectives of the project are:

i. To prepare the documentary framework for Indian market for a startup company to be used
in supply chain management and for day to day business operations.
ii. To study the role of Clearing and Forwarding agents and Warehouse service providers in
providing the services that can be availed by Pacific for its involvement in the EXIM
business in the near future.
iii. To identify the buyers in the international market.

2.1 METHODOLOGY
The methodology adopted for the completion of the project will be totally based on the secondary
data provided by the company. The secondary data will be used to find the various formats and
the information to be used and included respectively for the preparation of the documents. The
secondary data will also be used to find out the questions and matter of the discussion to be used
while doing meeting with the officials.

10
CHAPTER -

3 LITEATURE REVIEW
The popularity of the supply chain concept has been stimulated from many directions including
the quality revolution, notions of materials management and integrated logistics, a growing
interest in industrial markets and networks, the notion of increased focus and influential industry-
specific studies. The term ‘supply chain management’ was originally introduced by consultants
in the early 1980s and has subsequently gained tremendous attention. Analytically, a typical
supply chain is simply a network of materials, information and services processing links with the
characteristics of supply, transformation and demand. The term ‘supply chain management’ has
not only been used to explain the logistics activities and the planning and control of materials
and information flows internally within a company or externally between companies. It has also
been used it to describe strategic, interorganizational issues, to discuss an alternative
organizational form to vertical integration, to identify and describe the relationship a company
develops with its suppliers, and to address the purchasing and supply perspective. Various
subject areas such as purchasing and supply, logistics and transportation, marketing,
organizational behavior, network, strategic management, management information systems and
operations management have contributed to the explosion of SCM literature.

In order to address the various import issues of a business, the various types of Incoterms,
preparation of documents, modes of payments and the different types of officials involved in the
executing the EXIM business have been studied. A thorough study of these issues can help a
business which is new to the EXIM in order to identify the appropriate choice among these terms
and get well versed with the different policies included in the execution of the export orders.

11
CHAPTER -

4 DATA ANALYSIS
This section includes the secondary data collected for various sources over the internet. This data
will be used to create various documents for the supply chain management and for the
international marketing purposes.

4.1SUPPLY CHAIN PRACTICES IN Pacific Fires controls

Various supply chain practices are followed in Pacific starting from procuring products from
vendors, adding value by green packaging, providing insurance and transportation facilities and
finally delivering quality products to the clients.
These practices include documents preparation, various policies, terms and conditions regarding
various operations and finally signing Memorandum of Understanding (MOU) with various
business entities. These practices help Pacific to carry out smooth and hindrance free day to day
operations.

Pacific will also market the solar and LED products at international level. For this purpose, the
company has its IMPORT EXPORT CODE (IEC) and will be availing the facilities of clearing
and forwarding agents along with the preparations of documents required in EXIM business.
There are various INCOTERMS involved which Pacific have to keep in mind while engaging in
the import export business.

4.2DOCUMENTATION WORK
There are various documents required which are required at various stages while marketing the
solar and LED products to the clients. In the absence of these documents, there can be
communication gaps which can give rise to the disputes between PACIFIC and the other party
involved in the business. Two copies of ach document has been prepared (for Delhi and UP
Office).
These documents include:

i.Quotation: A formal statement of promise (submitted usually in response to a request for

quotation) by the potential supplier to supply the goods or services required by a buyer, at
specified prices, and within a specified period. It may also contain terms of sales and

12
CHAPTER -
 payment and warranties.
ii. Purchase Order: This is the document by which PACIFIC will place orders according to its
requirement describing the various products to be purchased from the supplier. This document
will include product description, their unit prices and the total amount to be paid by PACIFIC .
Some terms and conditions are also included in this PO which the supplier has to comply with
thereby eliminating any arising of disputes.
iii.
Delivery Challan Form: It shows the issue of items or goods by PACIFIC. When these goods are
sold to the customer, then delivery challan is prepared consisting the description of the goods, its
unit price and the total quantity to be delivered along with their total amount. It is very useful for
accounts department because accounts department will raise the sales invoices on the customers
only when it is confirmed by the sales department. Finally, the accounts department matches all
the items according to the purchase order of customers and delivery challan. By doing this practice
cross check of all the transactions are done. The chances of errors are minimized due to this
practice.

iv. Dispatch Note: A dispatch note is a short note which will be used by PACIFIC to inform the
buyer that the goods he has ordered have been sent. This document contains vital information
about the items ordered and other relevant order details.

v.v Annual Service Contract Proposal: This form will be used by PACIFIC to sign the contract
with its clients for providing the annual service and maintenance of the products delivered by
PACIFIC. This includes the clients’ details and the total charges involved in providing the
services.

i. Service completion report: This report will be filled by the PACIFIC official, who will be
visiting the client’s place for providing service to any fault faced by the client, after the
completion of the report. The report includes detail about the description of the fault, the remedies
applied and the overall customer feedback for the service obtained.

13

15
 4.3VENDOR SELELCTION CRITERIA
Selecting a vendor is probably one of the most crucial activities PACIFIC must undertake. So
selecting a potential vendor means selecting a partner in business that will be trustworthy to work
in a professional as well as profitable manner. Thus, it is important to choose a company that can
supply the PACIFIC’s requirements now and for the near future.
Some of the factors should be kept in mind while selecting a vendor. These are:

i. Years in business

PACIFIC need to know that the company is established and ready to service its
requirements.

ii. Ability to constantly supply products or services.

PACIFIC need its products and services on a regular basis. A vendor that has supply issues

will affect PACIFIC’s ability to supply its customers.

iii. Flexibility to allow changes in orders or product lines.

All businesses need to change their orders sometimes. So if the vendor heavily penalizes
PACIFIC for doing this, that vendor is not the appropriate one.

iv. Substantial catalogue of products or range of services.

This not only indicates an established vendor of size, but also means that PACIFIC can
have flexibility in its ordering. As the business grows, PACIFIC can keep with the same
vendor. It also means that PACIFIC is able to minimize the number of vendors it is dealing
with.
v. Testimonials and references.

These are valuable if PACIFIC can check that the vendor is reliable and as they claim to

be. vi.Sustainability and financial stability.

vii. Prices.

16
 Discounts on the price list are always negotiable, but they are an important part of
selecting a vend
viii. Delivery times.

PACIFIC need to know that deliveries can be made where and when it wants them to be
delivered.
Thus considering the above mentioned criterion, PACIFIC has developed a document
named Procurement policy.

A successful vendor selection process also needs to be established in order to do business with best
available vendor right from the beginning.

i. An Evaluation Team analyzes the business requirements and prepares the necessary
policies. The team publishes these documents to the areas relevant to this vendor selection
process and seek their input.

ii. List of Possible Vendors is compiled who will be able to deliver the material, product or
service. Write a Request for Information (RFI) to be sent to the listed vendors. Evaluate
their responses and Create a "Short List" of Vendors.

iii. A Request for Proposal and Request for Quotation is prepared and sent to the short
listed vendors.

iv. After getting various proposals, the preliminary review of these proposals is done. The
proposals with benefit to the company are selected and are then approached for further
negotiation.

v. The final stage in the vendor selection process is developing a contract negotiation
strategy. In this the company lists its priorities along with the alternatives. The time
constraints and the benchmarks are defined. The potential liabilities and the risks while
making the contract are assessed. The negotiation is done according to the suitability of
both the company and the vendors.

vi. The prepared Procurement Policy is presented to the selected vendor that will enable the
vendor to understand the terms of the company while procuring from any vendor.

17
4.4MEMORANDUM OF UNDERSTANDING
A Memorandum of Understanding (MoU)is a formal agreement between two or more parties.
Companies and organizations can use MOUs to establish official partnerships. It is often used in
cases where parties either do not imply a legal commitment or in situations where the parties
cannot create a legally enforceable agreement. Thus PACIFIC has prepared many MOUs with
suppliers, distributors, courier service providers, mentors and colleges.

4.5EXHIBITION VISIT

I visited an exhibition on 2nd July, 2015 in Pragati Maidan namely INDIAN MATERIAL
HANDLING SHOW &LOGISTICS SHOW and INDIA WAREHOUSING SHOW 2015. A
large number of companies (around 150) exhibited in the show some of which are JASO India,
Tat Blue Scope Steel, Stallion Systems and Solutions, Honeywell, Godrej etc. These companies
included manufacturers of conveyors, warehouse structures and facilities, packaging material,
forklifts, racking systems, barcode scanners and printers, tracking devices, automated doors,
warehouse or factory under-roof insulation materials and some were Clearing and Forwarding
agents providers. In all, the exhibitor companies are the large manufacturers of all types of
material handling and warehouse service providers that will be needed in supply chain
management and for exports and imports.

4.6IMPORT ISSUES
These issues like Incoterms, Letter of Credit, Clearing and Forwarding Agent services, CBU,
CKD, SKD, are important for any company engaged in the EXIM business. Thus PACIFIC
should keep in mind these issues and review them properly before stepping into an EXIM
business.

4.6.1OUTSOURCING AND BUYER IDENTIFICATION

Since PACIFIC is a service providing company, it is procuring from the OEM suppliers. For the
procurement of more innovative products such as solar panels, solar backpacks, solar caps, solar
chargers, solar curtains, LED street lights, LED garden lamps which are in turn to be sold to the

18
 international clients is done through the outsourcing from the Chinese suppliers from the e
portal Alibaba.com.

For this, a mail including the company’s profile and the international procurement policy has
been sent in order to receive the quotation from the Chinese vendors. Then according to the
vendor selection criteria, the appropriate vendor is selected.

The buyer has been identified by screening out the countries which are deprived of power and have
recently suffered from any natural calamity.

So, PACIFIC is focusing more on the power needy nations rather than exporting to all the
countries. PACIFIC has plans to make clients in most of the South African nations and recently
earthquake suffered nation, Nepal
PACIFIC will also be outsourcing with the help of Customs House Agents (CHA) in order to do
transactions of any business relating to the entry or departure of conveyances or the import or
export of goods at any Customs station.

4.6.2CLEARING AND FORWARDING AGENTS

Clearing and forwarding (C&F) agents are authorized by the Government of India to not only
help the importers and the exporters but also to bring it to the notice of the custom officials about
any irregularities in the customs rules and regulations updated by the customs, importer and
exporter.
The clearing agent should be converse with customs act rules and regulations.

The essential services which PACIFIC can avail from C&F agents are:

i.Warehousing facility for the solar and LED products before their transportation to the
docks/port. ii.Transportation of solar and LED products to the docks and arrangements of
warehousing at the port.
iii.Arrangement of containers required for shipment of the solar and LED products.

iv.Booking of shipping space or air freighting.

v. Advising PACIFIC regarding the relative cost of sending its products by different
airlines/shipping lines as well as selection of the route of the flight/ sea route.
vi. Making arrangements for shipment of goods to be on board the ship/plane.

19
 vii. Arranging for marine/cargo insurance of the shipment. viii.Preparation and processing of

shipping documents required for custom clearance.

ix. Arranging for various endorsements/issue of certificates from various agencies.

x. Providing assistance in the packing of the consignment.

xi. Making arrangements for local transportation of goods to the port/docks.

xii. Forwarding the documents to PACIFIC for their negotiation with the bank.

xiii.

The following services can be provided by the leading C&F agents at the specific request of the
PACIFIC:
i. Providing warehousing facilities abroad at least in some of the major international markets in
case the importer refuses to take the delivery of the goods for any reason.
ii. Providing assistance to bring the goods back to India if the situation so demands.

iii. Providing assistance to locate the goods in case of shipment is misplaced or the cargo is
stranded at some port.
iv. Making arrangements for assessment of damage to the goods to title claim with the insurance
company.

Thus for smooth and timely shipment of cargo, PACIFIC should appoint a suitable Clearing and
Forwarding agent.

4.6.3LETTER OF CREDIT (L/C)

It is a written commitment to pay for the shipped consignment, by an
iŵpoƌteƌ͛sbank(called theissuing bank) to theexporter's bank(called
theacceptingbank,negotiatingbank,orpayingbank)i.e. PACIFIC’s bank.

L/C guarantees payment of a specified sum in a specified currency, provided PACIFIC meets
precisely-defined conditionsand submitsthe prescribeddocumentswithin a fixed timeframe. These
documents almost always include a cleanbill of ladingor air waybill,commercialinvoice,and
certificateof origin.
20
 To establisha L/C in favor of PACIFIC (called thebeneficiary) the buyer (called the
applicantor accountparty) either paysthe specified sum + servicechargesup frontto the issuing
bank, ornegotiatescredit. L/C is aformaltradeinstrumentand will be used usually where PACIFIC
is unwilling to extend credit to the buyer. In effect, a
L/Csubstitutesthecreditworthinessof a bank for the creditworthiness of the buyer.

Since the unambiguity of the terminology used inwritinga letter of credit is of vital importance,
theInternationalChamberOfCommerce(ICC)has suggested specificterms(calledIncoterms) that
are now almost universally accepted and used.

A letter of credit is a non-negotiable instrument but may be transferable with theconsentof the

applicant i.e. the importer. Although L/C comes in numerous types, the most basic ones are:

i.Revocable-credit letter of credit ii.Irrevocable-creditletter of credit, which comes in

twoversionsiii.Confirmedirrevocableletter ofcreditiv.Not-confirmed irrevocable letterofcredit.

Procedure under letter of credit at sight:

OpeningaLetterofCreditat sight is common practice in the export business. Under sight LC, the
payment of export proceeds will be sent to PACIFIC’s bank by buyer’s bank on receipt of the
original shipping documents as per the terms and conditions mentioned on LC.
i. Once after completion ofexportcustomsclearanceprocedures,PACIFIC has to prepare all the
required documents as per the terms and conditions mentioned in the L/C.
ii. These documents will be submitted in PACIFIC’s bank, along with the original LC. The bank
will verify all documents and make sure, the documentation is in order as per LC conditions.
iii. These documents will be sent to buyer’s bank and in turn to the buyer after necessary approval
in documentation by PACIFIC’s bank.
iv. Once the buyer’s bank receives the documents, the export sales amount as per the said
documents will be sent to PACIFIC’s bank.

21
 4.6.4INCOTERMS
These are the set of three letter standard trade terms most commonly used in international
contracts for the sale of goods. It is essential for PACIFIC to be aware of these terms while
engaging into EXIM business and prior to the shipment of the products to various countries
especially power deprived nations of Africa. The latest INCOTERMS 2012 are mentioned
below:

i. EXW- EX WORKS

The Seller’s only responsibility is to make the goods available at the Buyer’s premises. The
Buyer bears full costs and risks of moving the goods from there to destination.

ii. FCA – FREE CARRIER (… named place of delivery)

The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The
Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the
Buyer bears the costs and risks of moving the goods to destination.

iii. CPT – CARRIAGE PAID TO (… named place of destination)

The Seller pays for moving the goods to destination. From the time the goods are transferred to
the first carrier, the Buyer bears the risks of loss or damage.

iv. CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination)

The Seller pays for moving the goods to destination. From the time the goods are transferred
to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however,
purchases the cargo insurance.

v. DAT – DELIVERED AT TERMINAL (… named terminal at port or place of

destination) The Seller delivers when the goods, once unloaded from the arriving means of
transport, are placed at the Buyer’s disposal at a named terminal, at the named port or place of
destination. “Terminal” includes any place, whether covered or not, such as a quay,
warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved
in bringing the goods to and unloading them at the terminal at the named port or place of
destination.

22
 Under DAT incoterms exporter must be unloading the goods from the arriving means of
conveyance at the terminal at the named port or place of destination.

vi. DAP – DELIVERED AT PLACE (… named place of destination)

The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of
transport ready for unloading at the names place of destination. The Seller bears all risks involved in
bringing the goods to the named place. Under DAP incoterms importer must be unloading the goods
from the arriving means of conveyance at the named place of destination. vii.DDP – DELIVERED
DUTY PAID (… named place)

The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller
bears all costs and risks of moving the goods to destination, including the payment of
Customs duties and taxes.

MARITIME-ONLY TERMS

i. FAS – FREE ALONGSIDE SHIP (… named port of shipment)

The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and
risks of loss or damage.

ii. FOB – FREE ON BOARD (… named port of shipment)

The Seller delivers the goods on board the ship and clears the goods for export. From that point,
the Buyer bears all costs and risks of loss or damage.

iii. CFR – COST AND FREIGHT (… named port of destination)

The Seller clears the goods for export and pays the costs of moving the goods to destination.
The Buyer bears all risks of loss or damage.

iv. CIF – COST INSURANCE AND FREIGHT (… named port of destination)

The Seller clears the goods for export and pays the costs of moving the goods to the port of
destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the
cargo insurance.

Differences between DAT and DAP:

23
 i. Delivery Place

Under DAT incoterms delivery place must be a terminal. Incoterms 2010 rules defines
terminal as follows “Terminal” includes any place, whether covered or not, such as a
quay, warehouse, container yard or road, rail or air cargo terminal.

Under DAP incoterms delivery place could be any place, which is located further

deep in the arriving country comparing the terminal as described in DAT incoterms. ii.

Unloading of the goods from the means of conveyance

Under DAT incoterms exporter must be unloading the goods from the arriving means
of conveyance at the terminal at the named port or place of destination.
Under DAP incoterms importer must be unloading the goods from the arriving means of
conveyance at the named place of destination.

4.6.5SOME OTHER TERMS

Since solar and LED products contain various parts and are need to be assembled to form a
complete product, while shipment of these parts or complete assembly is done to other countries,
these terms come into picture.
i. CBU: Completely Built Unit
Export the complete product to the customer's country directly, without any processing or
assembly.

ii. SKD: Semi Knocked Down

Shipment in the form of semi-finished products to be assembled by the factories in clients’
country, which is suitable for SKD import tariff and lower than CBU countries.

iii. CKD: Completely Knocked Down

Shipment in the form of all knocked down, and patch, to be assembled by the factories in
clients’ country, which is suitable for CKD import tariff and lower than SKD, CBU and have
better ability to be manufactured in the clients’ countries.

24
CHAPTER 5 - FINDINGS AND RECOMMENDATIONS
Based on the analysis done in the previous chapters, my contributions to the company are:

5.1INTERNATIONAL LEVEL
i. I found and suggested some Incoterms that will be required when PACIFIC will be get
involved in the EXIM business.

ii. I suggested PACIFIC about the importance of Letter of Credit to be used by the company
while receiving payments for the shipped consignment to foreign countries. iii.I had
meetings with two Clearing and Forwarding agents and one domestic warehouse facility
provider at PACIFIC. Having interaction with them I learnt about the services that they can
provide and asked some questions about the services that will be suitable for PACIFIC’s
products. Based on the discussion carried in the meetings, I suggested some services that
will be suitable for PACIFIC to procure from these agents and service providers.

iv. As a part of sourcing, I contacted some Chinese suppliers through mail on the online B2B
portal i.e. Alibaba.com regarding the procurement of various innovative products that
PACIFIC deal in. These products include solar garden led, solar caps, window solar
chargers, solar caps, solar backpacks and flexible thin film solar cells. As a result, many of
these suppliers have replied back. Now PACIFIC will short-list these vendors based on its
International Procurement Policy and will contact the short listed ones for procurement of
these above mentioned products.
v. Challenges faced by the company

• Brand visibility

• Requirement to build a new team

• Limited capacity to launch a big marketing campaign

• Competition from existing player in similar market

• Competition from new entrants in the market vi.Overcoming the challenges

• Proper segmenting, targeting and positioning

25
 • Adding value to the procured products

• Building strong distribution networks in the international market

• Organizing events, campaigns, exhibitions

• Market penetration

5.2 NATIONAL LEVEL

i.Various formats for different types of documentation work and quotation have been prepared.
The final formats for all the documents and the quotation were prepared containing all the
important clauses, which will be further used for operations. These documents include
Quotation, Delivery Challan, Dispatch Note, Goods Transfer Challan, Payment
Receipt, Annual Service Proposal, Service Completion Report.
(Annexure 1-7) ii.The general Trade Terms and Conditions for both UP and Delhi office
including various clauses such as pricing, product, payment, insurance and delivery have been
prepared. This document is finalized which is to be used for dealing with any company doing
business with PACIFIC. (Annexure 8) iii.The various criterion for the selection of vendors from
whom PACIFIC will be procuring goods for further sale have been found. Based on these found
criterion, a document called Procurement Policy have been developed for vendor selection
which will help the vendors to comply with this policy while doing business with PACIFIC.
(Annexure 9)

iv.The terms and conditions for tie ups with the Courier Services Providers whose services
will be availed for the carrying of the goods from PACIFIC to the clients have been
prepared. (Annexure 10)

26
 v.

The Supplier Assessment Form have been prepared for the company. This form includes various
parameters will be used to assess the performance of a supplier. This will help us to judge the
appropriate supplier with whom more goods will be procured in the coming years. (Annexure 11)

vi. The terms and conditions and a proper format for Purchase Order have been prepared which
includes many terms related to delivery, dispatch, packing, mode of shipment, documents
required etc. The clauses of Quality control, Confidentiality and Inspection have been solely
contributed by me. (Annexure 12)

vii.
The Client’s Enquiry Form have been prepared. This form will be used to collect all the necessary
information regarding a client with whom PACIFIC will be dealing with.
(Annexure 13)
viii.
The terms and conditions for Insurance and Transportation have been prepared. These terms
and conditions will be used as a basis for availing any transport service as well as insurance terms
which can be applied to the products involved in transition from or to
PACIFIC. (Annexure 14-15)
ix.
The formats for MOU (Memorandum of Understanding) with the courier companies and
suppliers including various terms have been prepared. These MOUs will be signed between
PACIFIC and the above stated parties after dealing with them once. These
MOUs will be renewed after a tenure of one year. (Annexure 16-17)
x.
During my visit to the exhibition I interacted with many professionals and shared ours company
portfolio with each other. I also gained knowledge regarding their company’s operations and
products. This interaction helped me to relate their products and services with PACIFIC’s
requirement and made many contacts that can be useful for PACIFIC in order to procure their
products and services in the near future.

25

28
BIBLIOGRAPHY
1. ‘Business in a Box’ software for finding the document formats, accessed on 26th May, 2015
2. An article on ‘Selecting A Vendor: Your Vendor Selection Criteria’ http://www.purchasing-
procurement-center.com/selecting-a-vendor.html, accessed on 1st June, 2015.
3. An article on ‘The Successful Vendor Selection Process’,
http://operationstech.about.com/od/vendorselection/a/VendorSelectionHub.htm,accessed on
1st June, 2015.
4. A report on ‘BMS@VES EXIMROLE OF CLEARING AND FORWARDING AGENTS’
accessed on 1st July, 2015.
5. A pdf on ‘Incoterms 2012’,http://www.batf.uk.com/en/international/membership-
offers/incoterms-2015.cfm, accessed on 10th July, 2015.
6. A webpage on CBU, SKD, CKD,http://www.ktc.com.cn/Sales/dghz/cjch/,accessed on 12th
July, 2015.
7. A news on ‘2015 - A Year of Growth for Indian Solar Industry’,
http://www.intersolar.in/en/for-press/news/industry-news/2015.html,accessed on 24th July,
2015.
8. PACIFICenergy.com, accessed on 24th July, 2015.

29
30
ANNEXURES
• Quotation
• Delivery Challan Form
• Dispatch Note
• Goods Transfer Challan
• Cheque/ Cash/ DD Receipt
• Annual Service Contract Proposal
• Service Completion Report
• Trade Terms and Conditions
• Procurement policy
• Terms and conditions for tie ups with courier companies
• Supplier Assessment Form
• Purchase Order
• Client’s Enquiry Form
• Insurance terms and conditions
• Transport terms and conditions
• MOU with courier service provider MOU with supplier

31
ANNEXURE

32
33
 ANNEXURE
2

DELIVERY CHALLAN FORM

(Returnable / Non-Returnable)

ORIGINAL DUPLICATE OFFICE

WHITE PINK YELLOW

Party Name: ChallaŶ No.: …………… Dt.: ……….

IŶvoice No.: …………… Dt.: ……...
Address : Dispatch Through: …………………
Vehicle No.: …………………

Mobile : G. R. / L. R. No. : ……………………LST / CST / TIN No. :

Sr. No. Description No. of Units No. of Packages Estimated Value

E & O.E.
GRAND TOTAL

Prepared by Approved by Receiver Signature & For PACIFIC

Stamp EnergySolutions Pvt. Ltd.

Authorized Signatory

Regd. Office: B – 282, Yojana Vihar, Delhi – 110092 (INDIA)

Mob: +91-9643479104 Email:info@www.pacific-india.net/about-us.html Website www.pacific-india.net

34
 ANNEXURE
3

PACIFIC ENERGY SOLUTIONS PVT. LTD.

DISPATCH NOTE
ORIGINAL DUPLICATE OFFICE COPY
WHITE PINK YELLOW
DN Code: DN Date:
Consignor: PACIFIC Energy Solutions Pvt. Ltd. Consignee:

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main

Johripur Road, Loni Border, Ghaziabad-201102,
U.P. (INDIA) Address:
Mobile: +91-9643479104
Contact Person: LR No.:
Contact Phone No.: LR Date:
Transporter: Vehicle No:
Requisition Date: Challan No:
Requisition Time: Challan Date:
Requisition Type: Req. Remark:
CST No.: TIN No.:
VAT No.:
Sr. No. Description No. of Units No. of Packages EstimatedValue

Dispatch Note Remarks:

……………………………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………………………….
V.A.T. No.:09788831532 w.e.f. 22/04/2015
C.S.T. No.:09788831532 w.e.f. 22/04/2015
T.I.N. No.:09788831532 w.e.f. 22/04/2015

We acknowledge receipt of above material

Created by : Approved by : Receiver Signature & For PACIFIC ENERGY SOLUTIONS PVT.LTD.
Stamp
Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102, U.P. (INDIA)
Mob: +91-9643479104 Email: info@www.pacific-india.net/about-us.html Website www.pacific-india.net

35
 ANNEXURE
4

PACIFIC ENERGY SOLUTIONS PVT. LTD.

GOODS TRANSFER CHALLAN

ORIGINAL DUPLICATE OFFICE

WHITE PINK YELLOW

Token No:
GTN Code: GTN Date:
Consigner: Consignee:

Delivery Address: LR No.:

LR Date:
Contact Person:
Contact No: Requisition Type:
Trans. Name: Vehicle No:
Requisition Date: Requisition Type:
Dispatch Date: Dispatch Time:
V.A.T. No: C.S.T. No:
T.I.N. :
Sr. No. Description of ProductCode Serial No. Item Type Qty. PackagingIn Rate Value(Rs.)
Goods Crate

Rupees (in words):

GTN Remarks:
Reference GTN Code:V.A.T.
No.:
C.S.T. No.:
T.I.N. No.:09788831532 w.e.f. 22/04/2015

We acknowledge receipt of above material

Prepared by Approved by Receiver Signature For PACIFIC ENERGYSOLUTIONS
&Stamp PVT. LTD.

Authorized Signatory

36
 ANNEXURE
Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad – 201102, U.P. (INDIA)
Mob: +91-9643479104Email: info@www.pacific-india.net/about-us.html Website www.pacific-india.net
5

PACIFIC ENERGY SOLUTIONS PVT. LTD.

CASH / CHEQUE / DD RECEIPT

TIN NO.: Dated: / /

Receipt No.:
Received with thanks from Mr. / Ms. / M/s
………………………………………………………………………………………….…………………………………………………………………
….
……………………………………………………………………………………………………………………………………………………………
……. .…………………………………………………………….
the suŵ of ‘s…………………………………………. OŶ accouŶt of
………………………………………………………………………… BLJ Cash / CheƋue / D.D. No.
…………………………………………………………….
Dated: ………….…………….

Rs. Bill No.

Prepared by Approved by Receiver Signature For PACIFIC Energy

&Stamp SolutionsPvt. Ltd.

Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102,
U.P. (INDIA)
Mob: +91-9643479104 Email:info@www.pacific-india.net/about-us.html Website www.pacific-india.net

37
 ANNEXURE

PACIFIC ENERGY SOLUTIONS PVT. LTD.

ANNUAL SERVICE CONTRACT PROPOSAL

ORIGINAL DUPLICATE OFFICE

WHITE PINK YELLOW
Quot. No.: Date: / /
Customer Ref: Product Code:
Call No.:
Details: ANNUAL SERVICE CONTRACT CHARGES FOR YOUR ………………………………….……………………………………….
Serial Number:
CoŵpaŶLJ’s Service Tadž No.: AAHCP0914ASD001
Customer Details:
Name:
Address:
Contact No.:
Email ID :

Contract Amount

Kind Att. Name: Contact No. :

Dear Sir/Madam,
TOWARDS THE NON-COMPREHENSIVE ANNUAL SERVICE CONTRACT CHARGES FOR RENEWAL OF
YOUR………………………………………………………………………………………………………………………………………………….
Sr. No. Serial Description Qty. Unit Charge Amount
Number

Service Tax 14%

Subtotal Amount
Rounding off
Total Amount
Amount (in words) Grand Total
Terms & Conditions:
1. Payment – 100% in advance along with confirm purchase order.
2. Duties & Taxes – As per applicable at the time of delivery.
3. Validity – 30 days.

For any query please call Mobile: +91-9643479106

38
 ANNEXURE
Prepared by Approvedb Receiver Signature & For PACIFIC Energy Solutions Pvt. Ltd.
y Stamp
Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102, U.P. (INDIA)
Mob: +91-9643479106 Email: info @www.pacific-india.net/about-us.html Website:www.pacific-india.net

39
ANNEXURE

40
 ANNEXURE
͛

TERMS AND CONDITIONS

(FOR UP OFFICE)

Payment Terms:
1. All prices are inclusive of excise duty whenever applicable at prevailing rates, but are
exclusive of Freight, Cartage, Loading and Unloading charges, Octroi, taxes and other local
levies, if any, shall be charged extra as applicable at the time of dispatch.
2. All prices are subject to change without any prior notice as per company discretion.
3. All prices are subject to our general terms and conditions of business.
4. Maximum Retail Price (MRP) whenever mentioned are inclusive of excise duty and sales
tax as per the prevailing rates.
5. Kindly contact our authorized PACIFIC representatives for prices marked.
6. The price list attached to any product, supersedes all earlier pricelist.
7. Local payments are to be made through A/c payee cheque / DD in 100 % advance, before
delivery. Outstation payments are to be made through a Demand Draft payable at Delhi or a
Cheque payable at Delhi at par.
8. 100 % advance along with full taxes and duties should be paid along with Purchase Order
(PO).
9. Interest will be charged at 24 % per annum if payment not made by due date.
10. The consignment will be sent only when cheque will be cleared.
11. CST will be calculated @ 5.5 % without Form C and @ 2 % with Form C (Mandatory to
submit the C form to get the 2 % tax input).
12. MRP is the Maximum retail price. Products cannot be sold above the MRP prices mentioned
(for Dealers, Distributors and Incentive Teams)
13. Dealers may sell at prices lower than the list price. (for Dealers and Distributors)

41
Transportation Terms:
1. PACIFIC ENERGY SOLUTIONS PVT. LTD.is not responsible for any shortage, damage,
breakage etc. once the goods are in the custody of the transporter.
2. Maximum liability limited to the value of goods under any circumstances.
3. Transportation as actual paid by the buyer against actual based on transportation receipt.

Insurance:
1. Force Majeure Conditions: The deliveries are subject to force majeure conditions &
unforeseen circumstances.
2. PACIFIC ENERGY SOLUTIONS PVT. LTD. is responsible for arranging insurance
coverage for the consignment and the amount will be charger from the client of PACIFIC.

Packing and courier terms:

The packing and courier charges will be extra as per actuals.

Warranty and Replacement terms:

1. No warranty for physical damage/ burnt.
2. Warranty void, if sticker is removed.

Delivery:
1. Delivery within 2-3 weeks from the date of receipt of technically & commercially clear PO
along with 100 % advance payment. (LED)
2. Delivery within 1-2 weeks from the date of receipt of confirmed PO and payment. (Solar)

Installation:
1. Cost of unloading, shifting and installation is extra.
2. Insurance, transportation, unloading and installation are exclusive of selling price of
PACIFIC Energy Solutions Pvt. Ltd.

42
3. Installation: on to pay basis strictly.

Dispute:
1. In case of any dispute related to Performa invoice / invoice than the matter will be referred by
Managing Director of PACIFIC ENERGY SOLUTIONS PVT. LTD. for the sole
arbitration of person nominated / appointed by him in this regards and the person so
appointed will act as an Arbitrator in terms of Indian Arbitrator and Conciliation Act, 1996.
2. Goods once sold they will not be taken back nor exchanged.
3. All disputes are subject to UP jurisdiction only.
4. If you want us to follow any Statutory or regulatory requirements related to the products to
be supplied by us, please let us have that information at the time of issuing Purchase Order
itself.
5. Kindly note that in case of any of the government levies undergo a change during the
currency of the contract, the same shall be accordingly amended in our Contract or Purchase
Order as well. (For Imports and Exports)
6. The goods remain the property of PACIFIC ENERGY SOLUTIONS PVT. LTD. till the
receipt of the invoice value.
7. Continuous design improvement is a routine practice at PACIFIC ENERGY SOLUTIONS
PVT. LTD. Technical Data provided may change without any prior intimation. Customers
are advised to reconfirm the data or product dimensions before purchase with our local
office’s representative.
8. Product photos is for illustration only and may not reflect actual products. Company has
all rights to change product shape, model and specifications.
9. The image depicted in the price list may vary from the actual product.
10. Any additional facility, if provided will be charged extra.

Pricing:
1. The products mentioned in the same pricelist are subject to the discounts as per the prevailing
PACIFIC’s trade policy from time to time. (For Dealers, Distributors and Incentive
Teams)

43
2. For any additional features, please contact the nearest PACIFIC branch representative for
revised pricing.

Payment Table:

Sales Tax UPVAT 14.5 % or 2 % against form ‘C’ charged Extra.

2 % C.S.T. against ‘C’ form extra. In case the value of
the invoice is less than Rs. 5,000 you may submit Rs.
500 in lieu of the ‘C’ form and the same will be
refunded after you submit the ‘C’ form to us.
Alternatively, for the Invoice less than Rs. 5000 please
confirm acceptance to 14.5 % VAT while placing your
purchase order. Rate ruling at the time

PAN No. / TINNo. ofOur supply PAN No.will : beAAHCP0914A, charged

irrespective Our VATof due TIN
NO: 09788831532
Payment 100% along with purchase order / Proforma
Invoice. 100 % payment in advance against Proforma
Invoice by demand draft / cheque payable at Delhi
along with C Form in advance ,

Packing and Freight prior to Charge extradispatch as applicableof goods.

Delivery Within 1-2 weeks from the date of receipt of confirmed

PO and payment ( Solar only ) & 2-3
Warranty WEveryeks for LEDproduct is warranted for different
duration of months against defective workmanship. In
case of any manufacturing defect, you will have to
return it to our works, Freight paid for repair/
replacement. No advance replacement will be made. It
does not cover fuses, test leads, battery, damaged IC’s
and burned PCB.

Bank details VIJAYA Bank. A/c No: 601900301000768, IFSC

Code: VIJB0006019, Branch: 109, Shrestha Vihar,
Delhi-1100092

Validity Upto one month from the date of quotation

Company service tax no AAHCP0914ASD001

44
 Prices Ex Works Ghaziabad
Packing, forwarding, freight, insurance, Octroi / town duty
etc.

Minimum Order Minimum Order should be for Rs. 10,000/-, otherwise

Handling Charges of Rs. 200/- will be charged extra.

Specifications Specifications of the offered products as per PACIFIC’S

catalog available at our website www.pacific-india.net/

Guarantee All products are guaranteed against defective workmanship

as per our standard guarantee policy.
This transaction is subject to UP Jurisdiction only.
Validity Up to one month from the date of quotation.

We hope you shall find the above in order. Should you require any further information /
clarification, we will be pleased to assist you.
Hope you will consider our offer favorably and let us have your valued orders.
Please feel free to contact us in case you need any more information.

Thanks and Regards

PACIFIC ENERGY SOLUTIONS PVT. LTD Team

45
 ANNEXURE 9

PROCUREMENT POLICY

STAGE 1

1. PRODUCTS PORTFOLIO
Solar and led.
2. TECHNICAL SPECIFICATIONS
Detailed technical specifications along with in-house test reports and testing certificates.
3. OEM PRICE LIST
Should be nominal in price less than the price offered to distributors as its OEM.
4.PRICING TERMS
It has to differential pricing i.e. slab wise (means different prices as per quantity slabs) /
discounting slab as per quantity.
5. TRADE TERMS & CONDITIONS
Which can be a win- win situation for both the entities.
6. LOCATION OF OFFICE
Near to Delhi – NCR would be more preferable.
7.QUANTITY TO BE ORDERED
Looking for an adequate quantity i.e. safety stock so as to minimize the inventory holding,
carrying and spoilage costs.
8.PRODUCTION CAPABILITY
How much quantity can be produced per day and per month?
9.SUPPLY LEAD TIME: [TIME TAKEN TO DELIEVER (AS PER QUANTITY ORDER)
FROM THE DATE OF SENDING PURCHASE ORDER]
Time should be nominal so as to fulfill, even the urgent need of any client.
 40
10. PRICE BASIS
F.O.R. site (duly packed)
11. PAYMENT TERMS

Scheduled for payment 30 days from the date of goods received.

12.LOCATION OF FACTORY
To visit your integration unit just to cross verify whether PACIFIC'S PROCUREMENT
POLICY is in accordance or not for e.g. standards maintained, processes involved, material
used in manufacturing, to carry out quality checks.
13. QUALITY OF STOCK SUPPLIED
That should be as committed / discussed earlier.
14. TRANSPORTATION COST
In the scope of OEM supplier.
15.PERSON FOR HANDLING QUALITY CONTROL AT YOUR FACTORY / OFFICE
One person should be appointed by your organization, so as to coordinate with us on techno-
commercial parameters and to cross verify the quality of the lot before sending to PACIFIC.
16.DESIGN COLLABORATION CAPABILITY
So that PACIFIC'S technical dept. could suggest for improvisation in efficiency, design and
can reduce the costs by applying reverse engineering concepts too.
17.GUARANTEE

The material supplied against the order should carry a comprehensive onsite warranty against
all manufacturing defects for a period of 24 m onths from the date of Invoice to PACIFIC.
The standard response time should be within 48 ho ur s.

18. PACKING: (As per your standard packing procedure to avoid damages in transit)
Goods shall be securely packed to avoid loss or any damages such as breakage, pilferage etc.
during transit. Any loss due to improper packing, shall be to your account.
19. COMPLETENESS:
Supplier confirms that the complete requirements as contained in the Drawings/
Specifications
/ Clarifications submitted are understood and all items of Project whether specifically
mentioned or not in Technical Specifications, but are necessary for completeness.

40
20. WARRANTY CLAUSE ON YOUR PRODUCT:
21. TYPE OF WARRANTY COVERED (Vary from product to product)
22. WARRANTY ISSUES: POST SALES
Provision of extended warranty should be there: as for key projects it will be a crucial factor.
The warranty period will start from the date of billing done by PACIFIC.
23. REPLACEMENT TERMS AND CONDITIONS FOR FAULTY PRODUCTS
Replacement time: should be 2 days; for safe & efficient operation & maintenance. Guaranteed
performance shall be supplied by the supplier at no extra cost. (N/A) (Vary from product to
product)
24. TAXATION: DELHI / UP BILLING, ANY SEZ / EXCISE ZONE
25. PRODUCT RECALL
Expenses incurred in a whole process of taking the product back from client's side and repair /
replace it and then send it back to client will be done by supplier if it’s in warranty phase.
26. RANDOM SAMPLING
If the product fails, the minimum requirement the whole lot won’t be acceptable by PACIFIC.
27. INSURANCE (NEGOTIABLE)
In the scope of supplier.
28. PACKAGING
Individual box along with volume based boxes.
29. PRINTING / LABELLING
Pad printing /seal printing / stickers / transparent impression leaving stickers has to be provided
by supplier so that PACIFIC can fulfill the client’s order ASAP.
30. INSPECTION / PLACE OF INSPECTION
Internal test / warranty reports shall be provided (as per manufacturer standard).
31. PRE SALES SUPPORT
Providing initial technical support; to train PACIFIC’s representative.
32. POST SALES SUPPORT
Guarantee, warranty, upgrade and repair services.
33. GREEN PACKAGING
34. GREEN SUPPLY CHAIN PRACTICES
35. CUSTOMIZATION (IF REQUIRED)
Could be provided by the supplier as per key client’s requirement.

41
36. FROM DATE OF SALES
Mapping by PACIFIC.
37. QUALITY
Should be optimum; so as to have maximum customer satisfaction.
38. SERVICE BACK UP
PACIFIC requires training support of PACIFIC'S team member at no additional cost.
39. MAINTENANCE ISSUES (IF ANY)
40. DISCOUNTS
Bulk order quantity, cash discount.
41. AVAILABILITY OF SPARES PARTS
PACIFIC requires spare parts from supplier side, as if warranty gets expired client will be
requiring spare parts. Therefore, in order to retain the client and to acquire more clients service
backup factor in terms of spare parts is crucial.

42
42. STANDARIZATION
The supplied lot should be strictly same in every aspect as of the sample passed by PACIFIC.
43. CERTIFICATIONS
ISO9001:2008; ISO 14001: 2004, CE, MSME, SSI, NSIC, MNRE, NABARD, DGS&D
44. One technical person from PACIFIC shall visit your site before dispatch; so as to cross check
the processes involved.

43