Study of Logistics and Warehousing Funct PDF

Jaypee Business School
A Constituent of Jaypee Institute of Information Technology

(Declared Deemed to be University u/s 3 of UGC Act)
A-10, Sector 62, NOIDA, 201 307, INDIA, www.jbs.ac.in
“Study of Logistics and Warehousing functions in Central Warehousing Corporation”
Corporate Internship Report

Internship Report submitted as a partial requirement for the award of the two year
Master of Business Administration Programme
MBA 2014-16
Name: PRASHANT SHARMA
Central Warehousing Corporation, Delhi
Corporate Internship Supervisor

Name: Sh. R. S. Shukla, Regional Manager
JBS Faculty Supervisor: Prof. Asit Bandyopadhayay
Start Date of Internship: 15th April, 2015

End date of Internship: 14th June, 2015
Report Date: 23rd June, 2015
CENTRAL WAREHOUSING CORPORATION Page 1

SELF CERTIFICATE
This is to certify that, I PRASHANT SHARMA have completed the project report titled “ A study of
Logistics and Warehousing functions in Central Warehousing Corporation” under the guidance of
“Sh. R. S. Shukla, Regional Manager” for the fulfilment of the award of MASTER of BUSINESS
ADMINISTRATION from JAYPEE BUSINESS SCHOOL, NOIDA. This is the original piece of work and i
have neither copied it from anywhere nor submitted it earlier elsewhere.
PRASHANT SHARMA
(14609058)
MBA 1st Year

ACKNOWLEDGEMENT
Taking the privilege to express my gratitude towards Sh. R. S. Shukla for providing me an
opportunity to work under their guidance.
It is their valuable efforts and suggestions which has helped me to enrich this type of complicated
knowledge. I would also like to express my gratitude towards PROF. ASIT BANDYOPADHAYAY
(FACULTY GUIDE)who provided me certain useful tips and suggestions and made my project more
substantial.
I would also like to thank all my corporate mentors namely, Sh. A. K. Agarwal/Sh. Deepak Jhulka
(Executive Engineer, CWC, CC, Delhi); Dr. B. B. Singh (AGM), Sh. Ajay Tomar (Superintendent) (CWC,
ICD PPG); Sh. Narendra Kumar (Manager, ICD Loni); Sh. K. D. Sharma (AM, administration), Sh. M.B.
Sharma (CWC,RO Delhi) and Sh. Premram (Warehouse manager, CW, Sahibabad) for helping me
throughout my internship programme.
Last but not the least, I would also like to thank and offer an appreciation to everyone whom I could
not mention here but have directly or indirectly supported and helped me to face this challenge and
complete this project right in time.
PRASHANT SHARMA
MBA 1st YEAR
14609058

TABLE OF CONTENT
PARTICULARS PAGE NO.
Executive Summary 5
Introduction and Objectives 6
Company Profile 7-13
Industry Analysis 14-26
Financial Analysis 27-36
Detail study/research 37-47
Conclusion and Recommendation 48-50
Key Learning 50-51
Contribution to the company 52
References 53

EXECUTIVE SUMMARY
The report is basically prepared for the partial fulfilment of MBA. This study is conducted to
understand “the logistics and warehousing functions in Central Warehousing Corporation”.
This report that I have made consist of two parts; the first part includes the following information:
 Firstly, the company analysis of Central Warehousing Corporation is done, that includes the
brief profile of the organization along with its Mission, Vision and Objectives. Also it
includes information about the management of the organization along with the services
provided by Central Warehousing Corporation.
 Secondly, the Industry analysis of Logistics and Warehousing sectors is carried out, giving
information about growth drivers, trends, Evolution, SWOT analysis and marketing mix.
 Lastly, the financial analysis for last 3 years in comparison with Container Corporation of
India.
In the second part, I have done a study “to understand the logistics and warehousing functions in
Central Warehousing Corporation”. This study helped me in gaining a lot of information about how
the organization works and what all processes are carried out.
In the end, solution is also provided that includes the use of warehouse management system along
with RFID technology, this will eventually help the organization in smooth functioning of different
processes.

INTRODUCTION
Logistics is all about the movement of goods, information and money from one business location to
another. Logistics has played an important role in business economic system. It includes various
activities like warehousing, handling of goods, inventory control, marketing, forecasting and
customer service.
Initially the logistics industry was mainly related to transportation and warehousing. But now in the
current scenario, it covers all the phases of a value chain that includes amalgamation of various
activities like transportation, distribution, warehousing and various value added services such as
packaging, documentation, collection of payment etc.
The continuous advancements in the field of information technology has also given way for logistics
sector to grow remarkably.
Logistics industry in India has large opportunities to grab and to have a continued growth in coming
future.
Warehouses play an important in any supply chain and logistics company. The Indian warehousing
industry is changing its shape with impact of external factors, previously, a warehouse was merely a
godown with 4 walls and a roof but now with the help of technological advancements, the
warehouses have become modernized and fully automated.
The requirement of warehousing space will grow from 400 mn sq.ft. in 2010 to 500 mn sq. ft. in
2015. As the demand for warehousing space increases, there is need for modernization of these
warehouses for better efficiency;optimization of these warehouses can be done by investing in new
advanced technologies that will change the look and feel of the warehouses.
The reports starts with the overview of the logistics and warehousing industry that gives information
about the growth, current market conditions and infrastructure available. This report will give brief
information about what the industry is all about and what are various advantages and challenges of
these sectors in the market.
OBJECTIVES
1. To get the hands on experience of various logistics operations.
2. To understand the logistics industry as a whole and its various aspects.
3. To get live experience of a warehouse management.
4. To understand the company and its various functions.
5. TO understand current working conditions of the organization

COMPANY PROFILE
NAME: CENTRAL WAREHOUSING CORPORATION

INDUSTRY: Warehousing & Logistics
CORPORATE OFFICE:
Central warehousing corporation,
4/1 Siri Institutional Area,
Hauz Khas, New Delhi – 110016
Email – warehouse@nic.in
Website – www.cewacor.nic.in
CENTRAL WAREHOUSING CORPORATION (CWC) came into existence in 1957 giving warehousing and
logistics backing to the agriculture sector, it is one of the greatest warehouse administrators in the
nation, providing distribution centres and logistic administrations to a large amount of customers.
Similarly, it offers benefits in the area of transportation and handling of goods.
CWC is handling 474 distribution centres across the nation with a storage limit of 11.8 million tons,
leading to warehouse administration of a variety of items that includes products ranging from agro
based to complex modern items.
The activities of the corporation include food grain warehouses, industrial warehousing, air cargo
complexes and inland clearance depots. Apart from this, CWC also offers services in the area of
clearing and forwarding, handling & transportation, obtainment and conveyance, disinfestation
administration, fumigation administrations and other auxiliary exercises.
Similarly, CWC offers consultancy administration and also provides training for the development of
warehousing base to distinctive organizations.
Initially, the main objective of the corporation was to provide scientific warehousing facilities for the
agriculture sector, but in last 60 years, the company has changed a lot and the mission of the
company includes not only the warehousing services as well as the focus on logistics services and
related activities with lot of value addition.
CWC is one of the leading market facilitator that provides integrated warehousing infrastructure and
other logistic services.

MISSION
To provide reliable, cost effective, value-added and integrated warehousing and logistics solutions in
a socially responsible and environment friendly manner.
VISION
To emerge as a leader market facilitator by providing integrated warehousing infrastructure and
other logistic services, supporting India’s growing economy with emphasis on stakeholder
satisfaction.
OBJECTIVES
 To meet changing need of agriculture, trade, industry and sectors by providing scientific
warehousing and related infrastructure facilities.
 To reduce losses during warehousing, handling and distribution.
 To be a major player in providing pest control services using environmental friendly

methods.
 To assist in implementation of Warehousing Act, 2007 with a view to extend credit potential
of warehoused goods through banking institutions and NBFCs.
 To achieve global presence in the warehousing and logistics field.
 To plan and implement Human Resource Development programmes to improve

commitment, motivation and productivity of employees for achieving customer satisfaction.

COMPANY MANAGEMENT
 Board of Directors:
 Dr. C.V. Ananda Bose , IAS(Retd.), Chairman
 Sh. C Viswanath, IAS, Chairman & MD, FCI
 Sh. Subhasish Panda, IAS, Joint Secretary, Dept. of Food & Public Distribution
 Sh. Virendra Singh
 Sh. K.V. Pradeep Kumar, Cochin Oil Merchant’s Association
 Sh. Vishwa Ranjan Gupta, Director (Finance)
 Sh. J.S. Kaushal, Director (Personnel)
 Dr. Rakesh Gupta, GM, PNB
 Mrs. Manju Agarwal, Deputy MD (Rural Business), SBI
 Sh. Harpreet Singh, Managing Director
 Management:
 Sh. Sanjay K Rakesh, IAS, CVO
 Sh. O.P. Bharti, GM (Insp & Pub.)
 Sh. N.K. Grover (Finance)
 Sh. A.K. Sharma, GM (Pur)
 Sh. I.C. Chadda, GM (Tech.)
 Sh. S.K. Sharma, Supdtg. Engineer
 Sh. A. S. Gopalan, Deputy GM (Finance)
 Sh. Anang Pal, Deputy GM (Comm.)
Human Resource Development
Currently the corporation has a workforce of 5222 employees. In order to reduce the establishment
cost and to have right amount of workforce, as per the target fixed under MOU, VRS scheme was
offered to group ‘D’ employees against which 184 group ‘D’ employees opted for the same.
The government of India directives on reservation of SCs, STs and OBCs are being followed.
At present, the SCs and STs constitute 27.88% of the total strength of the corporation.

Training of Personnel
The corporation lay due emphasis on Human Resource Development (HRD) activities. A number of
need based training programmes in different functional areas were conducted for upgrading the
skills and efficiency of the officials.
During the year, the corporation organized 8 training programmes which was attended by 158
participants from other departments and realized Rs. 22.09 lakhs towards course fee and hostel
charges.
In addition to above, following special training programmes were also conducted during the year:
1. 04 Residential short term training programmes on “Storage pest management and

Fumigation”.
2. 01 Residential programme on “warehouse management and scientific storage”.
3. 11 programmes on “warehouse management and food storage management” were

conducted by various regional offices.
4. Indian Institute of Management (IIM), Indore, organized two 5-day Executive management
development programmes on Agriculture business and supply chain management.
Services Provided:
 Storage
 CWC provides better storage and handling services for more than 400 commodities
that includes Agricultural produce, Industrial raw material, final goods and variety of
other items.
 The modernized storage techniques facilitate more than 200 commodities through a
network of 474 warehouses in India with its 4538 trained personnel.
 Ports and Inland stations are equipped with import and export warehousing
facilities.

 Disinfestation and bonded warehousing facilities.
 ISO containers are being handled, stored and transported to different locations.
 ICD/CFS Services
 Export :
 Export cargos are received.
 Aggregation and storage of export cargo.
 Customs examine the cargo and supervise in the stuffing of cargo in the
containers.
 Import :
 Import containers are moved from the port.
 LCL and FCL containers are de stuffed at the specified location.
 Cargo is examined by the customs.
 Bonding Facility
 66 Custom Bonded Warehouses are currently operated by CWC with a total capacity
of about 0.42 million Mts.
 CWC promoted the concept of Custom Bonded Warehousing to facilitate deferred

payment of custom duty to encourage entrepreneurs and export oriented units.

 The Custom Bonded Warehouses are easily accessible as they are well connected
with the port towns for smooth movement of goods to and from the discharge
points.
 Air Cargo Complex
 As CWC is growing, it has expanded to greater extent and that has led it to get into the
operations of Air Cargo Complexes.
 Due to this CWC has become a complete service provider, also known as multi modal
transport operator.
 Currently, 3 Air Cargo Complexes are operated by CWC at the International Airports of
Amritsar, Goa, Singanallur and Virugambakkam and also managing cargo warehouse at
Indira Gandhi International Airport, New Delhi.
 Container Train Operations
 CWC has gained a category – I licence from the Indian Railways for running container
trains on pan India basis.
 Currently, CWC is transporting EXIM containers between Loni (Delhi) – J. N. Port (Navi
Mumbai) and Loni – Mundra.
 About 300 trains are run by CWC in these sectors.
 Pest Control Services and Disinfestation
 An additional responsibility was entrusted to CWC by Govt. of India on 23rd March,

1968, to undertake Pest Control Services in parallel to warehousing activities.
 Following are some of the area of expertise of CWC in Pest Control Services:
 Container Fumigation

 Rail Coach Disinfestation
 Storage Pest Management
 Anti-termite treatments & many more…
 CWC provides Pest Control Services to following clients:

 Air India
 Indian Railways
 Airport Authority of India
 Indigo Airlines
 Jet Airways
 AIIMS
 VSNL, ONGC, AIR & a many more…
 Services are provided at below centres also:
CFS-JN Port CFS-Panambur (Mangalore)
CFS-Tuticorin (Tamil Nadu). ICD-Patparganj (Delhi)
CFS-Tuticorin (Tamil Nadu). CW-Nampally (Hyderabad)
CFS-Chennai CW-Kakinada (Hyderabad)
CFS-Adalaj (Ahmedabad) CWC-Regional Office, Bhopal
CFS-Kandla Port (Gandhidham) CWC-Regional Office, Kolkata
CFS-Vizag CW-Cochin (Hyderabad)
CFS-Whitefield (Bangalore) CWC-Regional Office, Mumbai

INDUSTRY ANALYSIS
LOGISTICS INDUSTRY
India has become one of the best suited destinations for logistics service providers. The logistics
sector in India has great potential but still it is yet to be utilized fully. However, there is greater
demand for logistics in India especially because of the growth of the Indian economy and also
because of the introduction of new companies in the sector. The logistics industry has a worth of
almost $100 billion US dollars and will be going to see the growth of up to 9-10% in coming years.
There are various reasons that have led to the growth of the sector; some of them are, raising
investments, mega infrastructure projects, various new regulatory policies and other development
projects.
The logistics industry is witnessing a quick growth and will continue to grow in coming years. This
increase in demand is caused due to consistent growth of the economy and industries such as
automotive, engineering, pharmaceuticals and food processing.
This sector serves as the backbone for some other major sectors like retail, automobile etc. and we
should focus on smooth functioning of this sector. Various organizations are outsourcing their
requirement for logistics to third party logistic players so that they can focus more on their core
functions.
Small entrepreneurs having family owned businesses are the major players in this sector and have
contributed significantly to the sector. They generally focus on short term goals as because they are
of small scale and have limited investment capability.
Bad working conditions, less salaries, less availability of manpower policies has led to the very less
attraction of people towards this sector for employment.
Initially, the companies in the industry were incapable of investing in workforce development and
also the government had not focussed much in this area. There are very less formal training
institutions. But recently, CII- Institute of logistics has taken initiatives and started teaching logistic
courses in the management institutes
Advantages – Logistics Industry
1. Participation of Private Sector

a. Participation of private players in the areas such as rail transport, coastal shipping
has increased to a great extent.
b. As per the 12th five year plan, private partners are going to invest more in the
infrastructure development of roads, airports etc.

2. Evolving Services
a. New specialised services are being evolved in the market.
b. These services will help in higher growth in the logistics sector.
3. Increase in Outsourcing
a. Logistics services are outsourced more and more so that the companies can focus
more towards their core services.
b. Due to globalization, various global 3PL players are reaching Indian market.
4. Maturing end users

a. Organized retail and other sectors have grown to a greater extent and they are
dependent on logistics services.
b. As foreign player participation is increasing, there is need of value added services.
Evolution – Logistics Services
Before 1990s 1990s to 2000 After 2000

 Outsourcing of logistics  Various value added  Third party logistics
was limited to services were (3PL) service providers
transportation and introduced such as introduced.
warehousing only. inventory  Outsourcing increased
 Contracts signed were management, custom and various value
for a shorter duration clearance. added services have
only  Business functions come up.
 Emphasis on physical were integrated to  Customers become
distribution have a smooth end to part of process for
management, so as to end supply chain. value addition.
reduce inventory and
distribution costs.

Logistics Industry – Development Level
Emerging Trends of Indian Logistics Industry
As India is becoming a manufacturing centre, the Indian logistics industry is going to gain high
momentum; this is also because of the improvement of transportation infrastructure. Growth of
manufacturing sector in India is gaining speed and that will result in the growth of the logistics
sector.
This industry will further grow due to the boost in Indian economy and India becoming the first
nation to overcome crisis among other nations.
1. The growth in agriculture sector along with the boost in the industrial sector resulted in
increase of supply chains within the country.
2. As 3PLs are coming in the market, the local companies are outsourcing their logistics
activities, so they focus more on their core activities.
3. The companies within the logistics sector are moving beyond the national boundaries and
this move is expected to gain high importance in coming future.
4. Collaborating efficiently and strengthening alliances are the factors that will help the
logistics sector grow more and more.
5. The companies who are specialized in the logistics field have reached at top in the logistics
industry in a very short duration of time.

6. Some of the new developments are :
a. Multimodal transportation solution
b. Infrastructure facilities for inter-modal transportation
c. Railways have introduced the facility of dedicated freight corridors.
d. Development of large logistics park.
e. Improved coastal shipping facilities.
7. The problems of the companies related to logistics and warehousing can be reduced by the
use of new technologies like RFID etc.
8. As the logistics sector is having a rapid growth, various software have come up in the market
for automating the process and helping the companies to work smoothly.
9. Various ERP solutions have also hit the market.
10. The effectiveness of the logistics is highly influenced by information technology.
Growth Drivers – Indian Logistics Industry
The industry has risen to a great extent in the past 10-12 years. There are various drivers that have
contributed towards this growth of the sector. Some of the major drivers are Government initiatives,
increase in the use of Information Technology, services offered by retail and manufacturing sector
are improved.
1. Government’s Role–The Government of India has played an important role in the growth of
logistics sector by amending various laws and taxes. Following are some steps taken by the
government:
a. Privatization of rail freight is increased.
b. To increase trade, Special Economic Zones (SEZs) are being set up.
c. Inland Container Depot (ICD) for sea freight is privatized.
d. Cargo terminals are added to the Airports.
e. Road infrastructure is improved for better connectivity.
f. For the promotion of export-import trade, bilateral agreements are signed.
g. Import duty on FMCG is revised.
2. Information Technology – Now a days, all the supply chain management functions are using
the benefits provided by IT. EDI (Electronic Data Interchange) facilities are being used at
most of the ports in India. This has reduced the amount of workforce needed and the extra
hard work needed and eventually also helped in putting the operational cost at an optimum
level. Conventional forwarders are moving towards new methods of transportation because

of the innovative logistics solutions that eventually leads to the retention of the customer as
well as the satisfaction of the customer.
3. Third Party Logistics (3PLs) – Most of the logistics sector in the country comprises of third
party logistics and has been the major contributor towards the growth of the sector.
Innovative and customized services are being offered for specific product categories by
these firms. New and best technologies are used so as to have timeliness in the delivery of
goods and services. They are following the rule of 4Rs i.e. Delivering Right product at the
Right time to the Right place at the Right cost. This helped them in overcoming various
challenges and problems.
Key Challenges – Logistics Industry
1. Poor Infrastructure
Transport networks, Information technology, warehousing and distribution facilities are not
integrated properly.
2. Trade Regulations
At different levels a number of regulations are imposed by the national, regional and local
authorities. These rules and regulations are different for different cities and that blocks the
formation of one national network.
3. Trained manpower
3PL, manufacturing and retail sectors lacks skilled and qualified workforce at the practical
level.
4. Lack of training Institutes

The perception of people towards the logistics sector is not that good that resulted in the
less availability of training institutes and further lead to less availability of skilled workforce.
5. Lack of research and development (R&D) of the industry

The logistics industry is very less penetrated, even though we all know the importance of the
logistics industry. With the prioritization of the research and development, we can highlight
the problems of the industry and work towards finding the solutions to those problems.

Government Initiative – Logistics Sector
An infrastructure oriented budget was announced by the Finance Minister that includes the
following main proposals:
1. INR 70,000 crores to be invested in the infrastructure, also includes INR 14,031 crores and
INR 10, 050 crores for roads and railways respectively.
2. Finishing of one lakh kilometre of roads that are currently under construction and also
ordering the development of another one lakh kilometre of road for remote areas to be
properly connected.
3. Implementation of GST (Goods & Services Tax) by 1 April, 2016.
4. Consideration of plug-and-play projects for development of roads, railways, ports and

airports by the Government.
5. Privatization of Ports so that they can come under the companies act.
WAREHOUSING INDUSTRY
The warehousing comprises of storage of goods and are called terminals that are used for activities
such as bulking/de- bulking, stuffing/ de- stuffing, cross docking and temporary storage.
Till 2016, the complete warehousing area is expected to grow at a CAGR of 7-9%, and furthermore
there will be 16-18% increase in the area of organized segment and 6-7% in the unorganized
segment. Mostly the small/medium entrepreneurs are operating the warehouses for the other
companies.
However, the Government has come up with various schemes such as Gramin Bhandaran Yojana,
Private Entrepreneurs guarantee and negotiable warehousing receipts and also there are various
initiatives taken by the government like providing infrastructure status to cold stores, which will
eventually help the warehousing sector to reach to greater levels.
Following are some specialized warehousing skills required by the work force:
1. Picking and Packing

2. Inventory management
3. Usage of warehousing equipment like stackers, pallet trucks
4. Use of Warehouse Management System

Advantages - WAREHOUSING
1. Growth of the economy

a. As the local and EXIM freight volumes increases, there is a growth in the production
and consumption also.
b. As per 12th Five year plan, main focus is on strengthening of investment.
2. Modern Warehousing
a. New and modern warehousing formats are introduced.
b. Sectors like IT, Electronics and telecommunications are expected to grow in coming
future.
3. Increment of outsourcing
a. Many companies have started outsourcing their logistics to focus more towards
their core activities.
b. Due to Globalization, many foreign 3PL companies are ready to invest in the market.
4. FTWZ
a. FTWZ (Free Trade Warehousing Zones) are still less explored and are not yet fully
developed.
b. The FTWZ offers various value addition activities to the various industries.
Evolution – Warehousing
Before 1990s 1990s to early 2000 2005 – 2013

 Development of the  Globalization occurred  Various world class
Indian Economy and MNCs along with warehousing centers
 Focus changed towards global 3PLs came in the are developed
management of end to Indian market  Latest material
end supply chain  Infrastructure of handling equipments
 The warehouse warehousing was are installed
structure was very improved  Use of IT systems has
simple and used for  Various material increased to a greater
storage purpose only handling and storage extent
 All the work was done equipment were  Supply chain activities
manually, even the purchased are integrated on an
good were kept on the advanced level
floor only.
Government Initiatives – Warehousing

1. National policy on Handling, Storage and Transportation
a. For the reduction of storage and transit losses of food grains this policy was
introduced in June 2000.
b. With the help of private sector, various facilities such as bulk grain handling, storage
and transportation up to 5.5 lakh MT have been created.
2. Introduction of GST
a. GST (Goods & Services Tax) introduced that helped in reducing the logistics cost.
b. Expected to be helpful for large warehouses.
3. Warehousing Act
a. A Negotiable Warehouse Receipt (NWR) system introduced under The Warehousing
Act, 2007.
b. This will help the global companies to invest in the Indian market.
4. Private Investments
a. Private players are asked by the Government for large scale investment, so as to
develop Logistics Park and Free Trade Warehouse Zones.
b. At the major logistics hub such as Mumbai, Bangalore, Chennai, Hyderabad and NCR,
various Logistics Parks are under development.
5. Development of Infrastructure
a. The main focus in on developing such infrastructure that will lead to decongest road
network.

b. Two major developmental projects of Government are Golden Quadrilateral and
NSEW (North-South-East-West) corridor.
Marketing Mix – Logistics Industry

Marketing Logistics is the term that helps us in understanding the marketing mix for Logistics
Industry. The demand is created by marketing and with the effective flow of goods/services, the
logistics fulfil that demand.
This is mainly an integration of marketing and operations. Every company needs both these
functions to operate with profit.
Marketing Logistics take into account the transportation of goods in a planned manner and results in
the control over distribution mechanism.
It involves:
a. Planning
b. Actual delivery
c. Marketing Information flow
The companies try to implement an effective marketing logistics strategy, focusing on 4Ps of
marketing i.e. Product, Price, Place and Promotion. This helps them to have a competitive edge over
the other companies.
An effective implementation of these 4Ps helps the companies to deliver the goods and services to
the customers and also to focus more towards new potential customers.
PRODUCT
Knowing the right customer and showcasing the products and services to the customers is one of the
functions of the marketing logistics. The services to be provided may vary from customer to
customer as each customer has different needs to be fulfilled. Despite all these differences, on every
transaction, the customer awaits 100% confirmation and reliability. The goal of this aspect includes
on-time delivery, error free invoicing and zero damage.

PRICE
Both internal and external factors are taken into consideration while deciding the prices within an
organization. The price drivers should be recognized by the marketing logistics. Customer’s profile,
type of the product and the order type are some factors that drive the pricing strategy. Marketing
logistics cannot control these factors but still it must analyse these factors to understand their
impact on customer’s decisions. Size based shipping cost, and distance to be covered for the delivery
of the product, are some other factors that drive the pricing strategy. Furthermore, the labour cost
and raw material used in the production process also drives the pricing mechanism in the
organization.
PLACE
This component in marketing logistics helps in the simplification of transactions between the
customer and the logistics provider for an organization.
The execution of logistics is to be done in such a manner that customer never gets to know the
complexities within a logistics process. The background processes related to the logistics delivery to
the customer should never be exposed.
The increase or decrease in the cost is deeply impacted by the location of the factory, warehouses
and the customer.
PROMOTION
It is an important function of marketing logistics process. While introducing a new product in the
market, the company should coordinate the logistics of various marketing material. Let us take an
example, Box of the product should be designed by the arts department and some other outside
party must manufacture those boxes using the designs given by the arts department. This helps the
organization to produce a good quality product with help of different departments working
together.

COMPETITIVE ANALYSIS
List of logistics and warehousing companies in the market
PRIVATE PLAYERS
DHL
BlueDart
Agarwal Packers and Movers
DTDC
Gati
All Cargo Logistics Ltd.
Aqua Logistics Pvt Ltd.
First Flight Courier Ltd.
PUBLIC PLAYERS
Container Corporation of India

Central Warehousing Corporation
SWOT analysis of Logistics Industry
 STRENGTH
(1) Existence of dedicated freight corridor.

(2) Automated logistic activities.
(3) Customer satisfaction is the highest priority
(4) Highly skilled workforce.
 WEAKNESS
(1) Costly as well as less profitable

(2) Mostly unorganized players in the market
(3) Higher infrastructure cost

 OPPORTUNITY
(1) Availability of new National Highways such as Golden Quadrilateral.

(2) Various development projects such as Delhi - Mumbai industrial corridor.
(3) Globalized scenario.
 THREATS
(1) Regulatory control

(2) Highly competitive environment with the coming up of MNCs.
(3) It is less profitable and a cost affair.
SWOT analysis of Warehousing Industry
 STRENGTH
(1) Availability of Warehousing Development & Regulatory Act (WDRA)

(2) Tax relief under 80(I)(B)
(3) Cold store are given infrastructure status
(4) Agri-warehouses and cold stores are provided with subsidies
(5) 100%FDI
 WEAKNESS
(1) Global warehousing infrastructure is insufficient

(2) Complete supply chain is not fully integrated with the warehouses
(3) Unskilled workforce
 OPPORTUNITY

(1) Availability of new National Highways such as Golden Quadrilateral.
(2) Various development projects such as Delhi - Mumbai industrial corridor.
(3) Globalized scenario.
 THREATS
(1) Regulatory control

(2) Various unorganized players in the market
(3) Less availability of land

FINANCIAL ANALYSIS
Balance Sheet of Central Warehousing Corporation for the financial year 2012, 2013 &
2014
Particulars FY – 2014 FY – 2013 FY – 2012

CAPITAL & LIABILITIES
Share Capital 680,210,000 680,210,000 680,210,000
Reserve Fund Under 14,873,003,564 13,742,603,564 12,710,203,564
Section 30 (1)
Reserve for Bad & 1,456,143,362 1,337,547,040 862,646,018
Doubtful Debts
Capital Reserve 45,954 45,945 45,954
Self-Indemnification 160,939,714 146,092,146 132,664,948
Reserve Fund
Reserve for Benevolent 112,713,136 187,423,247 180,673,329
Fund
Reserve for Corporate 0 5,611,975 3,820,970
Social Responsibility
Fund
Reserve for Research 5,175,563 1,394,423 0
and Development
Fund
Grant from Govt. of 94,940,504 132,336,000 50,300,000
India
Deferred Tax Liability 591,570,375 311,677,382 1,791,174,012
(Net)
Outstanding Liabilities 4,283,652,425 4,737,233,878 2,577,981,187
Provision for Pay and 4,258,929,414 3,815,312,845 4,649,764,388
Allowances
Provision for Taxation 832,523,334 411,829,874 1,471,322,688
Provision for Dividend 371,856,014 317,324,686 316,003,970
Unclaimed Dividend 809,157 766,867 709,242
Profit & Loss 99,042 39,384 49,674
Appropriation Account
TOTAL 27,722,611,558 25,827,449,265 25,427,569,944
PROPERTY & ASSETS
Fixed Assets 12,047,476,670 11,103,731,555 10,703,509,867

Investments (at Cost) 1,106,828,173 1,100,059,373 1,100,059,373
Income accrued on 97,019,616 124,975,489 20,686,701
Investments
Self-Indemnification 160,939,714 146,092,146 121,012,206
Reserve Fund
Investment
Benevolent Reserve 112,713,136 187,423,247 154,846,388

Fund Investment
Current Assets 4,332,015,899 3,496,218,533 2,828,939,636
Loans and Advances 4,141,564,491 3,462,041,250 4,269,533,995
Cash and Bank 5,698,121,012 6,086,310,919 4,436,466,227
Balances
unamortized 25,932,847 120,596,753 349,611,631
Expenditure
Significant Accounting
Policies
TOTAL 27,722,611,558 25,827,449,265 25,427,569,944
PROFIT AND LOSS ACCOUNT – CENTRAL WAREHOUSING CORPORATION
Particulars FY – 2014 FY – 2013 FY – 2012

Expenditure
Warehousing License Fee 6,645,337 5,251,578 8,829,078
Consumption of 135,223,711 152,208,372 154,571,102
Chemicals, Covers &
Dunnage
Pay & Allowances 5,616,843,628 5,034,165,007 5,077,032,797
Travelling Allowances 51,027,727 48,129,102 38,580,552
Establishment (Others) 395,503,778 365,134,972 351,763,529
Wages 106,859,582 95,067,438 86,990,943
Repairs & Maintenance 334,328,099 285,794,493 242,347,917
Rent, Rates & Taxes 489,007,053 518,468,690 459,723,561
Insurance 138,751,839 135,340,322 126,047,598
Printing & Stationery 24,898,131 22,801,003 20,238,248
Miscellaneous 490,463,328 565,892,714 471,886,789
Expenditure
Marketing Facilitation 3,845,593,012 3,213,503,498 2,487,961,282
Expenses
CRT Operation Expenses 416,096,172 394,889,529 462,394,963
Bank Charges 659,319 1,558,433 3,445,216
Interest (Expenses) 19,410,629 4,263,247 63,375,903
Director’s Remuneration 1,478,307 1,607,561 1,201,467
Auditors’ Fee and 8,017,472 6,296,877 4,567,564
Expenses
Loss on Sale of 1,438,979 21,707,022 6,463
Assets/Assets Written off
Bad Debts Written Off 165,314 294,554 4,881
Depreciation/Amortization 329,886,686 383,609,576 252,023,949
Impairment Loss 295,000 234,544 19,647
Reserve for Bad & 301,115,455 501,741,101 210,827,397
Doubtful Debts
Provision for Wealth Tax 360,000 360,000 357,213

12,714,068,558 11,758,319,633 10,524,198,059
Profit for the year 2,567,784,537 2,308,659,922 1,662,273,101
TOTAL 15,281,853,095 14,066,979,555 12,186,471,160
Profit For the Year 2,567,784,537 2,308,659,922 1,662,273,101
Les: Prior Period 3,037,216 216,326,116 71,062,752
Adjustments
Profit Before Tax 2,564,747,321 2,092,333,806 1,591,210,349
Less: Tax Expenses 954208,509 696,846,772 586,637,512
PROFIT AFTER TAX 1,610,538,812 1,395,487,034 1,004,572,837
CARRIED DOWN
INCOME
Warehousing Charges 7,992,465,965 7,557,245,253 6,773,902,179

(Income)
Marketing Facilitation 4,574,151,155 4,210,277,676 3,345,535,753
Income
Income from CRT 470,403,640 432,767,917 508,544,076
Operations
Income from CFSs/ICDs 732,917,825 659,424,481 595,344,821
Income from Pest Control 196,712,599 202,567,863 168,147,652
Services
Interest (Income) 666,325,213 574,371,607 494,514,164
Dividend Income 211,618,119 256,487,144 99,152,648
Miscellaneous Receipts 137,862,246 106,774,879 133,821,618
Excess Liability, Provision 299,132,099 66,903,204 66,385,449
and Depreciation Written
Back
Profit on Sale of Assets 263,834 159,531 1,222,800
Significant Accounting
Policies
TOTAL 15,281,853,095 14,066,979,555 12,186,471,160
CASH FLOW STATEMENT – CENTRAL WAREHOUSING CORPORATION
PARTICULARS FY – 2014 FY – 2013 FY – 2012

Net profit before tax 2,564,747,321 2,092,333,806 1,591,210,349
Net Cash from 324,304,168 2,055,541,750 2,102,223,495
Operating Activities
Net Cash (Used) in 334,624,171 123,549,557 (700,782,696)
Investing Activities
Net Cash (Used) in 377,869,904 282,147,501 (390,297,638)
Financing Activities
Net Increase/Decrease 388,189,907 1,649,844,692 1,011,143,161
in cash and cash
equivalent
Cash and cash 6,086,310,919 4,436,466,227 3,425,323,066

equivalent at the
beginning of the year
Cash and cash 5,698,121,012 6,086,310,919 4,436,466,227
equivalent at the end
of the year
Balance Sheet of Container Corporation of India for the financial year 2012, 2013 & 2014
Particulars FY – 2014 (in crores) FY – 2013 (in crores) FY – 2012 (in crores)
EQUITY & LIABILITIES
Shareholder’s Funds
(a) Share Capital 194.97 129.98 129.98
(b) Reserves and 6,694.78 6,090.49 5,476.45
Surplus
6,889.75 6,220.47 5,606.43
Minority Interest 27.52 -
Non – current
liabilities
(a) Deferred tax 304.98 274.25 243.78
liabilities (Net)
(b) Other Long 17.39 10.77 21.64
term liabilities
(c) Long term 28.34 28.29 22.81
provisions
350.71 313.31 288.23
Current Liabilities:
(a) Trade Payables 179.29 168.33 121.59
(b) Short Term (0.00) 38.46 -
Borrowings
(c) Other current 444.84 321.72 327.36
liabilities
(d) Long term 132.87 170.95 -
provisions
757.00 699.46 602.92
TOTAL 8024.98 7,233.24 6,497.58
ASSETS
Non-Current Assets
(a) Fixed Assets
1. Tangible 3020.17 2,734.39 2,351.69
Assets
2. Intangible 51.89 48.96 42.01
Assets
3. Capital work in 241.48 188.33 104.09
progress
4. Intangible - 0.05 0.05

assets under
development
(b) Non – Current 676.71 368.99 293.10
investments
(c) Long-term 743.50 369.33 392.92
loans and
advances
(d) Other non- 20.09 12.79 11.98
current assets
4,753.84 3,722.84 3,195.84
Current Assets
(a) Inventories 16.65 54.88 8.17
(b) Trade 47.82 28.49 19.59
receivables
(c) Cash and bank 2698.41 2,945.95 2,757.44
balances
(d) Short-term 381.73 372.14 408.53
loans and
advances
(e) Other current 126.53 108.94 108.01
assets
3271.14 3510.40 3,301.74
TOTAL 8,024.98 7233.24 6,497.58
PROFIT/LOSS – Container Corporation of India
Particulars FY – 2014 (in crores) FY – 2013 (in crores) FY – 2012 (in crores)
Revenue from 5,108.53 4,444.99 4,060.95
operations
Other income 369.94 332.57 316.54
Total Revenue 5,478.47 4777.56 4,377.49
Expenses :
Terminal & Other 3,645.60 3,089.13 2776.17
service charges
Employee benefits 126.38 109.26 99.91
expense
Finance costs 1.01 3.04 -
Depreciation and 193.38 176.32 158.49
amortization expenses
Other expenses 258.50 197.12 161.27
Total expenses 4224.87 3,574.87 3,195.84
Profit before 1,253.60 1202.69 1,181.65
exceptional and
extraordinary items
and tax
Exceptional items - - -

Profit before 1,253.60 1202.69 1,181.65
extraordinary items
and tax
Extraordinary Items - - -
Profit before tax 1,253.60 1202.69 1,181.65
Tax expenses:
(1) Current tax 268.02 241.60 236.39
(2) Deferred tax 29.04 31.47 15.22
(3) Tax 5.21 (0.99) 52.16
adjustment for
earlier years
Profit(Loss) for the 951.33 930.61 877.88
period from continuing
operations
Profit(Loss) from - - -
discontinuing
operations
Tax expense of - - -
discontinuing
operations
Profit/Loss from - - -
Discontinuing
operations (after Tax)
Profit/Loss for the 951.33 930.61 877.88
period but before
share of results of
Minority Interest
Less: Share of Minority 1.47 - -
in Profit/Loss
Profit/Loss for the 949.86 930.61 -
Period of the Group
Earnings per equity
share:
(1) Basic 48.72 47.73 67.54
(2) Diluted 48.72 47.73 67.54
CASH FLOW STATEMENT – CONTAINER CORPORATION OF INDIA
PARTICULARS FY – 2014 (in crores) FY – 2013 (in crores) FY – 2012 (in crores)
Net profit before tax 1,253.60 1,202.69 1,181.65
Net Cash from 656.60 910.38 803.98
Operating Activities
Net Cash (Used) in 554.25 442.23 (104.00)
Investing Activities
Net Cash (Used) in (343.89) (279.77) (234.16)
Financing Activities

Net Increase/Decrease (241.54) 188.38 465.82
in cash and cash
equivalent
Cash and cash 2,950.01 2,761.63 2,295.68
equivalent at the
beginning of the year
Cash and cash 2,708.47 2,950.01 2,761.50
equivalent at the end
of the year
COMPARATIVE RATIO ANALYSIS OF CENTRAL WAREHOUSING CORPORATION AND CONTAINER

CORPORATION OF INDIA.
CENTRAL WAREHOUSING CONTAINER CORPORATION
RATIOS FY2012 FY2013 FY2014 FY2012 FY2013 FY2014

LIQUIDITY RATIO
(a)Current ratio 0.56 0.64 0.93 0.60 0.81 0.70
(b)quick ratio 2.07 1.17 1.20 1.11 1.67 1.98
PROFITABILITY
RATIO
(a)Return on
assets
27% 21% 36% 21% 45% 43%
(b) return on
investment
26% 40% 55% 31% 37% 42%
LEVERAGE
RATIO:
(a)Debt equity
ratio
(B) Fixed assets 4.29 4.35 4.50 4.15 3.73 4.60
ratio. 0.07 0.04 0.03 0.02 0.05 0.09

ANALYSIS AND INTERPRETATION:
LIQUIDITY RATIO:
These ratios basically help to find out the ability of the concern to meet its current obligations.
Under liquidity ratios we calculate various types of ratios like current ratio, liquid ratio, absolute
liquid ratio etc.
For the purpose of analyzing the balance sheet of CWC and CONCOR we have calculated the current
and liquid ratio under the head liquidity ratio.
(a) CURRENT RATIO:
It shows the relationship between current assets and the current liabilities and the ideal one
is considered as 2:1 but not always as it measures the quantity of assests not the quality
which may not give the true picture.
The current ratio of central warehousing corporation for the FY 2012, 2013 and 2014 is 0.56,
0.64 and 0.93 respectively showing an increasing trend but still the firm is not in the position
to meet its current obligations.
The current ratio of container corporation of India for the same 3 FY is 0.60, 0.81 and 0.70
even the container corporation of India is not in the position to meet its current obligations
with the help of its current assests.
But if we compare the performance of the two organizations the container corporation of
India is still in the better place.
(b) LIQUID RATIO:

It exhibits the relation between liquid assests and the current liabilities. The ideal is
1:1.
The liquid ratio of central warehousing corporation for the FY 2012, 2013 and 2014 is
2.07, 1.17 and 1.20 this shows that central warehousing corporations ability to pay
off its current liabilities using its liquid assests seems good. Though it has been an
declining trend.
The liquid ratio of Container Corporation of India for the same three financial years is
1.11, 1.67 and 1.98 even the liquid ratio of Container Corporation seems good
considering the ideal ratio.
If we make the comparison between the two, Containers Corporation of India is still
in the better place.
PROFITABILITY RATIO:
These ratios basically help the firm to find out the profits earned during the year.
Under these ratios like gross profit ratio, net profit ratios, Return on investment (ROI),
return on assets (ROA) etc. are calculated. For the purpose of our analysis we have
calculated ROI and ROA.

(a) RETURN ON INVESTMENT:
This ratio basically helps to find out whether resources of an organization is being used
efficiently that means whether the firm is earning returns on the investment made.
The ROI of warehousing corporation of India for the FY 2012, 2013 and 2014 is 26, 41
and 55% revealing an increasing trend and showing that ROI of the firm increasing.
The ROI of Container Corporation of India for the same three years is 31, 37 and 42%
showing an increasing trend but in comparison the ROI of warehousing corporation is
better.
(b) RETURN ON ASSESTS:

This ratio measures the ability of the firm to earn profit from the assests employed. It is
measured in terms of percentage.
The ROA of warehousing corporation for the FY 2012,2013 and 2014 is 27, 21 and 36%
respectively revealing an increasing trend though it should be more because higher the
ROI the better it is.
The ROA of Container Corporation for the same three year is 21, 45 and 43%, so if we
make a comparison the ROA of Container Corporation of India is better than
warehousing corporation.
LEVERAGE RATIO
From the leverage ratio we come to know about the long term position of the company. For this we
calculate ratios like capital gearing, debt equity etc.
(a) DEBT EQUITY RATIO
The debt equity ratio shows the relationship between the outsiders fund and
shareholders fund. This basically shows the cushion available to firm when firm
liquidates.
The debt equity ratio of central warehousing corporation for the FY 2012, 2013 and 2014
is 4.29, 4.35 and 4.50 showing an increasing trend and for the container corporation for
the same three FY is 4.15, 3.73 and 4.60.
(b) FIXED ASSESTS RATIO
It exhibits ratio between of fixed assests to long term funds.

The central warehousing fixed assets ratio for the FY 2012, 2013 and 2014 is 0.07, 0.04
and 0.03 and for the container corporation the same ratio for the three years is 0.02,
0.05 and 0.09.

ANALYSIS OF CASH FLOW STATEMENT:
 NET CASH FLOW FROM OPERATING ACTIVITIES:

The net cash flow of central warehousing from operating activities for the financial
2012, 2013, 2014 is 324,304,168, 2,055,541,750 and (700,782,696) showing that for the
first two years the there is positive balance but not in the year 2014 as it exhibiting negative
balance.
The container corporation of India’s cash flow from operating activities for the same three
years is 656.60, 910.38, 803.98 respectively (in crores) revealing an positive balance hence
the container corporation of India’s cash flow from operating activities is better.
 NET CASH FLOW FROM OPERATING ACTIVITES:

The net cash flow of central warehousing from investing activities for the financial
year 2012, 2013 , 2014 is 334,624,171, 123,549,557 (700,782,696) respectively. For the
first two financial year the cash flow from investing activities is positive but in the year 2014
it the cash flow is negative.
For the container corporation of India the cash flow from investing activities for the same 3
years is 554.25, 442.23, (104.00) respectively (in crores) showing that the for the first two
financial years the balance is positive but not for 2014.
 NET CASH FLOW FROM FINANCING ACTIVITIES
The net cash flow of central warehousing for the financing activities for the FY 2012, 2013,
2014 is377,869,904 ,282,147, 501 ,(390,297,638) showing that for the first two years there is
positive balance but in the financial year 2014 the results from investing activities are
negative
The net cash flow of Container Corporation of India from the financing activities for the
same three years is (343.89),(279.77) and (234.16) showing negative results for all the three
years hence in terms of cash flow from investing activities the container corporation of India
stands at better place.

DETAILED STUDY/REASEARCH PROJECT
CENTRAL WAREHOUSING CORPORATION

(A GOVT. OF INDIA UNDERTAKING)
Study of Logistics and warehousing functioning in


SCOPE OF THE REPORT
1. The report helps us in understanding the scenario of Logistics Industry as well as the
Warehousing Industry in India.
2. To understand the functioning of Central Warehousing Corporation.
3. To understand various operations performed at different locations of CWC in the field of

Logistics and Warehousing.
4. To understand the financial status of the organization.
5. To study Export/IMPORT process of various field offices of Central Warehousing

Corporation.
DETAILS of INTERNSHIP PROGRAMME
Joined the Summer Internship Programme at CENTRAL WAREHOUSING CORPORATION, the start
date of internship was 15th April, 2015 and the end date was 14th June, 2015. The duration of the
training programme was of 8 weeks, during those 8 weeks, i undergone trainings at different
locations of CENTRAL WAREHOUSING CORPORATION in Delhi/NCR region.
There is a proper schedule of the organization, according to which the training is carried out.
Following is the schedule of training programme I attended:
S. No. Name of Centre Training Schedule
1. Construction Cell, Delhi 15.04.2015 to 29.04.2015
2. ICD, Patparganj, Delhi 30.04.2015 to 13.05.2015
3. ICD, Loni 14.05.2015 to 28.05.2015
4. Regional Office, Delhi 29.05.2015 to 05.06.2015
5. CW, Sahibabad-II 06.06.2015 To 14.06.2015

Construction Cell, Delhi
Construction Cells are the offices which mainly deal with office work to be done for the construction,
repair and maintenance of warehouses across the country. It is kind of a corporate office; this
corporate office is headed by the Executive Engineer of the organization.
There are 4 Construction cells of CWC for the four main regions i.e. East, West, North and South.
EAST:
Central Warehousing Corporation,
Construction Cell,
Kolkata
Executive Engineer – Sh. S. B. Singh
WEST:
Construction Cell,
Mumbai
Executive Engineer – Sh. Lovelesh Kumar
NORTH:
Construction Cell,
Delhi
Executive Engineer – Sh. A. K. Agarwal
SOUTH:
Construction Cell,
Chennai
Executive Engineer – Sh. G. S. Sudakar
I joined the construction cell at Delhi on 15th April, 2015.
Work done and key learning:
The basic nature of work done at construction cell, Delhi is of handling the projects, in the
management terminology, we call it Project Management. The handling of the project is done by
using techniques like PERT, CPM, GANTT Charts etc.

PERT
PERT (Project Evaluation & Review Techniques) is a tool that is used in statistical analysis for project
management. It helps in representing and analysing a task used for the completion of a project.
PERT basically helps in time management, as it helps in calculating the time required to complete
one task and also the minimum time taken by any project to complete.
Steps of PERT
PERT involves following steps:
1. Milestones and specific activities are identified.

2. The proper sequence of the activities is determined.
3. A network diagram is constructed.
4. The time required by each activity is estimated.
5. The critical path is calculated.
6. Regular updating of PERT chart is needed as the project progresses.
Benefits of PERT
PERT gives us following information:
1. Gives the expected completion time of the project.

2. The critical activities gathered from PERT charts helps in knowing the duration of the project,
as they impact the completion time of the project.
3. Cost as well schedules are monitored with the help of PERT.
4. A large variety of projects can be managed through PERT.
5. Becomes very useful while scheduling and controlling large projects.
CPM
CPM (Critical Path Method), helps in prioritizing a group of project activities. CPM helps in the
construction of a project model and this model includes the following:
1. With the help of Work Breakdown Structure, activities required to complete the project are
listed.
2. The amount of time required by each task for completion.
3. Gives information about the activities dependent on each other.
4. Gives information about the logical end points.

With the help of the above values, CPM helps in calculating the longest path for the activities and
also helps in calculating the activity start/end time.
Key Learning
1. Understood the working scenario of the construction cell.

2. Hands on experience on above mentioned project management techniques.
3. Learned about the amount of paper work involved before the physical construction of a
godown starts.
ICD Patparganj
ICD Patparganj came into existence in 1984 as a Container Freight Station (CFS) with Central
Warehousing Corporation (CWC), a Govt. of India undertaking, as the custodian. In the beginning of
its operations, the work of export/import cargo on LCL (Less Container Load) was handled. Currently,
the centre is headed by Dr. B. B. Singh, Asstt. General Manager.
In April, 1995, this station was given the status of full-fledged ICD and under the customs Act, 1962,
it was declared as an independent port.
A setup of Customs office headed by Sh. , being an important and business potential centre, central
warehousing corporation has started renovating the campus/godown under the received aids from
ministry of Commerce by providing development of roads with paver blocks and replacement of AC
sheets roofing by pre-painted color coated sheets and strengthing of floors, providing CCTV cameras,
air-conditioning of office blocks etc. for all the godowns, the work is in the final stages. A team of
engineers having 2electrical and 2 civil engineers are taking care of renovation work.
I joined the ICD Patparganj on 30th April, 2015 and learned about the export/import process.
The steps of export/import processes are defined below.
Steps used in Export process
1. Filling of Declaration/Annexures at the Service Centre-Customs.

2. Generation of shipping Bill/submission of Check list/allotment of shipping bill no.
3. Handling charges are paid by Exporters to the CWC before arrival of Goods – CWC
4. Carting of goods on presentation of documents – CWC
5. Physical arrival of goods at the station-allotment of entry no. at gate – CWC

6. Goods enter the warehouse verification by Godown incharge – CWC
7. Goods arrival stage attended by inspector (shed) – Customs
8. Shed Supdt. Marks the documents to inspector for examination.
9. Feeding of examination report in the system and allowed Let Export Order (LEO) by Supdt.
(Customs).
10. After LEO, 5 nos. hard copies of S/bills generated – signed by inspector
11. S/bills along with examination report is attached – TR I, TR II, copies handed over
12. Shipping lines prepare stuffing plan based on TR I, TR II & obtain customs approval.
13. Stuffing of goods into nominated containers by CWC under customs supervision.
14. Based on stuffing report customs seals are issued for putting on containers.
15. Customs allow movement of loaded container – Inspector/Supdt.
16. Movement of container by H&T agent of CWC.
17. Inland haulage of container to exit port by Rail through LONI/TKD
18. Inland haulage of container to exit port by road under CWC control.
Steps used in Import process
1. Filling of SMTP by shipping lines at port of landing.

2. Inland haulage of import container to ICD-TKD/LONI by rail.
3. Shifting of import container from LONI/TKD rail terminal to ICD-PPG – CWC
4. IGM filling at Service entry (Customs) ICD PPG – by shipping lines.
5. Filling of declaration/Annexures at the Service Centre by CHA
6. Generation of check list, submission of check list, allotment of B/E no. – Customs
7. First Check
a. Approved by D.C.
b. Generation of single copy B/E for examination
c. Shed Inspector for examination and report
d. Shed Appraiser for examination
e. Group appraiser for examination
f. B/E for Audit on Computer system
g. Assessment by D.C. on computer system
h. Generation of 3 hard copies of B/E & TR-6 challan
i. Payment of duty in bank
j. Shed appraiser for out of charge
k. CWC for payment sheet
8. Second Check
a. Assessed B/E on IAD screen for audit
b. Assessment by D.C. on system
c. Generation of 3 hard copies of B/Es & TR-6 challan
d. Payment of duty by importer in bank
e. Shed inspector for examination and report
f. Shed appraiser for examination and out of charge

g. CWC for payment sheet
9. Issue slip/Gate Pass by CWC
10. Physical movement of container out of ICD Patparganj.
Key Learning:
1. Understood the functioning of the warehouse.

2. Got to know the export and import processes carried out at the depot.
3. Done data entry on the system about the cargo came to the depot.
4. Understood below processes:
a. Verification of goods coming to the warehouse.
b. Feeding of data in the system
c. Marking of the cargo in the warehouse
d. Allocation of space for particular cargo within the warehouse.
e. Generation of Shipping Bills.
f. Stuffing of goods into nominated containers
g. Issue of gate pass for the containers
h. Physical movement of container out of ICD Patparganj.
ICD LONI
Worlds Window Infrastructure & Logistics Private Limited (WWILPL), a strategic alliance partner of
Central Warehousing Corporation, operates and manages the ICD (Inland Container Depot) LONI.
In just 7 years ICD LONI has achieved huge success in providing services to its customers – Rail
operators, importers, exporters, freight forwarders. It is one of the best logistics hub in North India.
It is located near Delhi border in Ghaziabad district. This ICD came into existence on 11th march,
2007.
WWILPL is planning an integrated Logistics Hub, where not only the services like EXIM, domestic
freight handling & transportation are provided but value added services, specialized warehousing
and social amenities will also be provided. Currently, ICD Loni spreads across 27.5 Acres of land with
developed warehousing space of around 2.08 Lac Sq. Ft. An adjacent land of around 100 acres has
been acquired for further developments.
It has recently installed new E-filling system that helps in online transactions.
ICD provides best in class infrastructure, handling and storage services.
I joined ICD Loni on 14th May, 2015 and understood the export/import process.

EXPORT FLOW CHART
Receiving job order from ICD PPG/SRE
Actual arrival of container at ICD Loni
Forwarding note with relevant document submitted at ICD for respective containers
Verifying the container detail with job order & also find the actual no. of containers arrived at ICD.
Differences if any to bring in to notice
Entry container detail in CTR receipt file
Preparation of load plan
Submission of load plan to all concern
Getting wagon train report (WTR) from H&T operator
Preparation of train summary & also verify the detail with forwarding note and other documents
attached
Submission of summary to all concerned
Preparation of rail freight summary & submission of train summary to railway with request to issue
R.R within 2 hrs of departure of train
Preparation of final freight summary for billing

Submission of freight summary to all concerned & file a copy of it duly verified & signed by dealing
assistant & incharge
Billing to all concerned parties
IMPORT FLOW CHART
Import train summary received from rail section RO, Navi Mumbai
Inward summary submitted to operator for inward handling and surveying, discrepancy if any may
be notified by operator for sending confirmation to JNPT, in case of other operator container paper
handed over to CWC
Forwarding job order to ICD PPG with copy indorsed to H&T contractor ICD PPG for movement of
import containers – two more copies (one at out gate and another to operator for issue of Gate
pass)
Landing certificate to be submitted for container destined to ICD Loni on CWC train/carrier bond
Maintenance of record in hard/soft copies for future use
Key Learning:
1. Understood the functioning of Export/Import through train operations.

2. Got to know information about the type of containers being loaded on the train.
3. Understood the export/import train summary received by the ICD office.
4. Understood below processes:
a. Verification of goods coming to the ICD Loni through trains.
b. Issue of forwarding job order as per the cargo received at ICD Loni
c. Verifying container details with job order

d. Feeding of data in the system
e. Preparation of load plan
f. Preparation of train summary
g. Preparation of final freight summary for billing
h. Billing to all concerned parties
i. Issue of gate pass for import containers
j. Physical movement of container out of ICD Loni
Regional Office, Delhi
Regional offices are the offices that handle the administrative work of the organization. Here, all the
administrative work like that of legal issues, recruitment process and other administrative work.
Regional office of central warehousing corporation is situated in Scope Minar Core – 3, 1st Floor,
Laxmi Nagar, Delhi. Regional Office is headed by Regional Manager, Dr. R. S. Shukla.
I joined RO, Delhi on 6th June, 2015. Duration of training here was of 1 week.
Key Learning:
1. Study of various documents related to organization.

2. Got to know the list warehouses across India along with their capacities.
List of warehouses in Delhi
S. No. Warehouse Location Capacity
1. Palam Accompanied baggage warehouse, 500

IGI Airport
2. ICD Patparganj Inland Container Depot, Near 38105
Ghazipur Village, Patparganj
3. R.P. Bagh G. T. Karnal Road, Opp. SBI Colony, 38153
R. P. Bagh
4. Safdarjang Flyover Under Safdarjang flyover, near 3780
laxmi bai nagar market

List of warehouses in Noida/Ghaziabad
S. No. Warehouse Location Capacity
1. Greater Noida 2-C, Udyog Kendra, Surajpur 58200

2. Noida Plot C-1A, opp. Transport 15000
nagar
3. Surajpur (UP) – I UPSIDC Industrial area, 23072
Surajpur
4. Ghaziabad Industrial Area, Ghaziabad 21045
5. ICD – Loni Near Neoli railway station 113407
6. Sahibabad Industrial Area, Sahibabad 23338
3. Prepared some excel reports that includes details about the employees of the organization.
4. Understood the recruitment process of the organization. The recruitment process includes
following steps:
a. Issue of notice regarding vacancy for a particular post in the organization.
b. Advertisement to be printed in recognized newspapers like Times of India,
Hindustan Times & Employment News. Also the advertisement is given online on
particular job portals.
c. Short listing of candidates for the written examination.
d. After written exam, candidates who qualify written exam are called for interview.
e. After the interview process is completed, results of the selected candidates are
uploaded on the organization’s site (http://cewacor.nic.in/index.php).
CW – Sahibabad
Central Warehouse Sahibabad II, is a unit having constructed capacity of godown, 20200 MT,
situated at plot#4, industrial area, Sahibabad, Distt. Ghaziabad, which is very near/opposite to
Sahibabad Railway station and on NH-58 main link road from Delhi to Ghaziabad.
Since the centre is situated almost at Delhi UP border and in a very important industrial area, the
storage capacity of 20200 MT is available for the industrialists to store their raw material/ goods.
Mainly the storage of zinc is carried out. The warehouse manager of the centre is Sh. Premram.
Being an important centre and very business potential centre, central warehousing corporation has
considered the centre to be renovated by providing cement-concrete roads, RCC floors and
replacement of AC sheet roofing by pre-painted polyester coated sheets, the renovation work is in
progress and Sh. Anil Kumar Soam (Asstt. Engineer) is taking care of the work.

CONCLUSION & RECOMMENDATION
CONCLUSION:
The worth of Indian Logistics Industry in 2012-13 was estimated to be US$ 130 billion. Over the last
five years it has grown at a rate of 16%. The sector includes freight and passenger transportation via
rail, road, air and water and also warehousing and cold storage. The volume of air cargo has grown
about 8.5% from 1999 to 2014.
The National Highway Development Programme of Indian government aims to develop 60,000 km of
National Highways by 2016. The government has also announced various incentives for the private
players who are willing to invest in free-trade warehousing zones and cold storage.
The growth of logistics sector can be driven by such measures. Various growth drivers for this sector
are: rapid developments in sectors such as automobile, pharmaceuticals, FMCG products;
Globalization has helped India in the increase in trade practices; various government initiatives;
outsourcing of logistics has increased to a greater extent. In coming future, some other key trends
that will help the industry to grow will be the entry of more and more global players, increase in
multi-modal logistics service providers and huge investments.
In the current scenario of warehousing sector, the concept of warehouse has shifted from a
‘godown’ – only four wall and shed – to modernized spaces which are highly automated and have
advanced infrastructure facilities. Due to the introduction of GST (Goods and Services Tax), the
warehousing sector has gained momentum and can change its perception among the people that a
warehouse is a costly affair, to a smart warehouse that is providing a cost saving opportunity.
Due to this boom in the warehousing sector, Indian logistics industries should focus more towards
modernization of their warehouses. The growing economy is also one factor that is providing a
platform for the warehousing companies to expand and grow and to compete with the global
leaders of warehousing sector.

RECOMMENDATIONS
Following will be the recommendations from my side for Central Warehousing Corporation, which
might help them to enhance their working conditions and to grow to a greater extent.
1. Warehouse Management Systems should be installed at different locations of Central

Warehousing Corporation.
2. A new technology based on RFID should be introduced in the current system so as to avoid
delays in the manual feeding of data into the systems.
Warehouse Management System
Warehouse management system, a part of supply chain, primarily focuses on controlling the
movement and storage of material in a warehouse. It captures the real time information about how
much the warehouse is full or empty. The WMS (Warehouse management system) consist of
physical warehouses, tracking devices and connection between products station.
This system usually works best with the help of new automatic identification and data capture
technology such as barcode scanners, wireless LANs and RFID (Radio frequency Identification).
The main objective of the WMS is to provide an automated system for the management of
warehouses.
RFID – Radio Frequency Identification
RFID is the transferring of data with the help of wireless technology. The main purpose is to
automatically identifying and tracking tags from the goods. RFID is different than a barcode, as for
barcode, it is necessary to have the tag in the sight of scanner but in case of RFID, there is no need
for tag to be in the sight of scanner.
In 2014, the worth of RFID market is $8.90 billion and it is expected to grow up to $28 billion by
2024.
This technology works by linking the warehouse employees with backend warehouse management
system where all the activities are being recorded with the help of a wireless device used by
employees. The employees will scan the tags on the pallets and the information on these tags will
directly reach the warehouse management system by itself. This helps in reduction of a lot of
manual work and also to have better control over the functioning of a warehouse.

Proposed Solution:
The main solution which can be useful for the organization is to implement a “Warehouse
management System with an integrated RFID – based technology”. This solution will help in better
control over the warehousing and logistics activities by providing a better warehouse management
system which makes the work of a warehouse fully automated and systematic.
Benefits
Following will be benefits for the organization, once they implement a WMS with RFID:
1. Cost of warehouse labour can be reduced to a greater extent.

2. Cost of clerical labour can also be reduced.
3. Physical inventories can be eliminated.
4. The cost incurred in the rectification of human errors made while manually filling the
information can also be reduced.
5. Use of RFID can increase the efficiency of the warehouse.
6. The space of the warehouse can be used properly and effectively.
7. A lot of paper work can be reduced.
8. The accurate information can provided to anyone at any time, giving transparency to the
system.
9. Complexity of large warehouses can be reduced using RFID technology.
10. In comparison to barcode scanners, RFID stores a large amount of information.
Key Learning:
The summer internship programme that I attended for duration of 8 weeks has provided me a lot of
corporate exposure and also helped me in understanding the working culture of a professional
organization.
Following are my key learning which I gained during my internship programme:
 Understood the functionality of Central Warehousing Corporation in the field of

Warehousing & Logistics.
 By going to different locations of the organization, got to know various different working
cultures.
 Understanding the role of various employees at various posts such as Junior Technical
Assistant, Assistant Engineer, Superintendent, and Regional Manager Etc.

 At field offices i.e. ICD Patparganj, ICD Loni and CW Sahibabad II, learned about various
aspects of warehousing and logistics, some of these aspects are:
 the export/import processes of container movement by trucks from ICD Patparganj
 the export/import processes of container movement by trains from ICD Loni
 Storage of goods and raw materials in the warehouses at CW Sahibabad II
 At Corporate offices i.e. Construction Cell, Delhi and Regional Office Delhi, learned about the
official work being done for the working of the organization. Some of that work is:
 How to handle projects using project management techniques such as PERT, CPM
etc.
 Updating excel data on a regular basis.
 Recruitment process of the organization.
 Other administrative work being carried out within the organization.
 Study of Financial position of the organization in the market and also the status as compared
to its competitor (Container Corporation of India) in the market.
 During the preparation of the Internship report, following are my key learning:
 Understanding the origin of Central Warehousing Corporation along with its mission,
vision and objectives.
 Knowing the management of the organization.
 Understanding the work done by the organization in the area of human resource
development.
 Study of various services provided by Central Warehousing Corporation
 By doing the industry analysis, I came to know about various aspects of logistics and
warehousing sectors in India. Following topics are covered through industry analysis:
 Advantages of logistics and warehousing sectors.
 Emerging trends of both the areas
 Various growth drivers
 SWOT analysis of both the sectors

CONTRIBUTIONS TO THE COMPANY
 Helped the corporate mentor at ICD Patparganj in marking of cargo on a sheet manually and
then feeding that information onto the system.
 Helped in generating the desired documents (de-stuffing sheet, gate pass, assessment sheet
etc.) for loading and unloading of container as well as the physical movement of containers
to & from the ICD.
 At ICD Loni, helped the mentor in filling the details of the train carrying the containers onto
the system and getting the desired documents which are being forwarded to concerned
people and also to the accounts department for payment of charges.
 At corporate offices in Delhi, my mentors provided me with documents to be entered into

the excel, I performed this task of data entry and learned about the paper work being done
in the offices.
 This report is to be submitted in the office also, and with this report I have given a
recommendation of a Warehouse management system along with RFID technology, if they
implement this, it will help the organization in following ways :
 Less paper work

 Accurate information
 Less manual work in warehouses
 Less time consuming
 Increases the efficiency of the warehouse

REFERENCES
 http://cewacor.nic.in/index.php
 http://www.ibef.org/download/indian-logistics-industry-gaining-momentum.pdf
 http://www.icdloni.com/index.html
 http://www.oocities.org/icddelhi/patparganj.htm
 https://en.wikipedia.org/wiki/Central_Warehousing_Corporation
 https://www.kpmg.com/IN/en/services/Tax/unionbudget2015/Documents/KPMG-Union-
Budget-TL-PoV-2015.pdf
 https://en.wikipedia.org/wiki/Warehouse
 http://www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-warehousing-
segments-in-India
 http://www.safeducate.com/PDF/KPMG%20Report%20on%20Logistics,%20Transportation%
20and%20Warehousing%20(2013-2017,%202017-2022).pdf
 http://www.concorindia.com/

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Jaypee Business School

A Constituent of Jaypee Institute of Information Technology

“Study of Logistics and Warehousing functions in Central Warehousing Corporation”

Corporate Internship Report

Name: PRASHANT SHARMA

Central Warehousing Corporation, Delhi

Corporate Internship Supervisor

JBS Faculty Supervisor: Prof. Asit Bandyopadhayay

Start Date of Internship: 15th April, 2015

Report Date: 23rd June, 2015

CENTRAL WAREHOUSING CORPORATION Page 1

CENTRAL WAREHOUSING CORPORATION Page 2

CENTRAL WAREHOUSING CORPORATION Page 3

PARTICULARS PAGE NO.

Introduction and Objectives 6

Company Profile 7-13

Industry Analysis 14-26

Financial Analysis 27-36

Detail study/research 37-47

Conclusion and Recommendation 48-50

Key Learning 50-51

Contribution to the company 52

CENTRAL WAREHOUSING CORPORATION Page 4

CENTRAL WAREHOUSING CORPORATION Page 5

1. To get the hands on experience of various logistics operations.

2. To understand the logistics industry as a whole and its various aspects.

3. To get live experience of a warehouse management.

4. To understand the company and its various functions.

5. TO understand current working conditions of the organization

CENTRAL WAREHOUSING CORPORATION Page 6

NAME: CENTRAL WAREHOUSING CORPORATION

CENTRAL WAREHOUSING CORPORATION Page 7

 To reduce losses during warehousing, handling and distribution.

 To be a major player in providing pest control services using environmental friendly

 To achieve global presence in the warehousing and logistics field.

 To plan and implement Human Resource Development programmes to improve

CENTRAL WAREHOUSING CORPORATION Page 8

Human Resource Development

CENTRAL WAREHOUSING CORPORATION Page 9

1. 04 Residential short term training programmes on “Storage pest management and

2. 01 Residential programme on “warehouse management and scientific storage”.

3. 11 programmes on “warehouse management and food storage management” were

CENTRAL WAREHOUSING CORPORATION Page 10

 Export cargos are received.

 Aggregation and storage of export cargo.

 Import containers are moved from the port.

 LCL and FCL containers are de stuffed at the specified location.

 Cargo is examined by the customs.

 CWC promoted the concept of Custom Bonded Warehousing to facilitate deferred

CENTRAL WAREHOUSING CORPORATION Page 11

 Air Cargo Complex

 Container Train Operations

 About 300 trains are run by CWC in these sectors.

 Pest Control Services and Disinfestation

 An additional responsibility was entrusted to CWC by Govt. of India on 23rd March,

CENTRAL WAREHOUSING CORPORATION Page 12

 CWC provides Pest Control Services to following clients:

 Services are provided at below centres also:

CFS-JN Port CFS-Panambur (Mangalore)

CFS-Tuticorin (Tamil Nadu). ICD-Patparganj (Delhi)

CFS-Tuticorin (Tamil Nadu). CW-Nampally (Hyderabad)

CFS-Chennai CW-Kakinada (Hyderabad)

CFS-Adalaj (Ahmedabad) CWC-Regional Office, Bhopal