LEAD TIME ANALYSIS OF IMPORTED

RAWMETERIALS FOR BERGER PAINTS

 Page |2

Acknowledgment
My summer training with BERGER PAINTS INDIA LTD. is a lifetime experience that
cherish throughout my career. This project has provided me a great opportunity to expe
the work culture and work process of Berger Paints Material Division.

This project can never be prepared by the singular efforts but I also demand the hel
guardianship of some conversant persons who under pin actively or passively in the comp
of a successful project.

I wish to express my sincere gratitude to Mr. D.K.Virmani (Head-Materials Dept B

Paints) and Mr. Pradip Bandyopadhyay (Manager H.R. Dept Berger Paints) for givin
the opportunity to do my summer training at his highly esteemed Organization.

I am also grateful to Mr. Arindam Mukhopadhyay (Assistant Manager, Materials)

valuable guidance, advice, suggestion and constant encouragement rendered to me at
stage.

I am also thankful to respected Prof. Soumendu Ganguly(internal guide), for givin

information and guidance during my training period.

I would like to thank to Prof. Sudipto Mitra (campus head) and faculty members
Lopamudra Bhatacharya and Prof. Mahua Banerjee who were always there for my
whenever needed.

I am also thankful to all others who helped me directly or indirectly towards the completi
my project work.

AVISHEK KABIRAJ
 Table of Contents
Page |3

Component Page No
 Executive Summary 4-5

 Objectives 6

 Paint 7-12
 Indian Paint Industry 13-18
 Company Profile- Berger Paints 19-21
 Brand details of Berger Paints 22-25
 Major Raw Materials Imported 26-35

 Time Scheduling 36-37

 Research Methodology. 38-47

 Findings and Analysis :-

 Inbound logistics Lead time analysis- Port to Port. (Sea 48-67

transport).
68-74
 Custom clearance and its lead time analysis.
75-79
 Warehousing Details and Charges.
80-85
 Inbound logistics Lead time analysis- Port to Plant.

(Road transport).

 Total time analysis. 86-88

 Recommendations. 89-92

 Conclusion. 93

 References. 94

 Annexure 95-96

EXECUTIVE SUMMARY

INTRODUCTION
 Page |4

The length of the performance cycle is a major difference between domestic and global
operations. Instead of 1 to 5 days transit time and 2 to 10 days total performance cycles, global
operation cycles often require weeks or months. The reasons leading to longer order cycle to
delivery cycle are communication delays, special packaging requirements, ocean freight
scheduling, slow transit time, customs clearance and etc. In this project the various delays
caused while importing the raw materials for Berger Paints has been depicted and how the delay
time can be reduced to minimum has been proposed.

AIM AND OBJECTIVES:

The main aim of this project is to analyze the total lead time for importing raw materials for
Berger Paints from 17 different countries to its 7 different plants. And also to project the delays
caused during its transportation and how it can be reduced to minimum.

METHODOLOGY:

To meet the research objectives, following activities have been performed.

1. An extensive search of relevant literature from news articles, internet, books. This step
guided the development of the methods and instruments for collecting data.
2. Survey has been carried out by face to face interviews with different agencies.
3. The Survey was included both by quantitative, forced-choice or close ended questions,
qualitative and open-ended questions. Analysis was done on the basis of the information
gathered at the time of interview.

FINDING AND RECOMMENDATION:

In this project the total importation of raw materials for Berger Paints has been depicted into
four different sub structures:
 Page |5

Inbound logistics Lead time analysis- Port to Port. (Sea transport).

Custom clearance and its lead time analysis.

Warehousing Details and Charges.

Inbound logistics Lead time analysis- Port to Plant. (Road Transport).

And the lead time has been projected along with the various delays which increases it.

Then a total Time Analysis is done considering all the above four processes and
recommendation is given how the total delay can be reduced and the whole process can be more
smoothly handled and efficiency can be increased while having cost effectiveness.

OBJECTIVES
“Knowing is not enough; we must apply.
Willing is not enough; we must do.”-  Johann Wolfgang.

PRIMARY OBJECTIVE:-
 Page |6

Inbound logistics Lead time analysis (Port to Port):- Here we try to analyze time
taken for importing raw materials of paints for Berger Paints from Source Countries
to 3 different ports (Kolkata Port, Chennai Port, and Mumbai Port) of India.
Inbound logistics Lead time analysis (Port to Plant): - Here we try to analyze time
taken for road transportation of the raw materials from the three different Ports
(Kolkata Port, Chennai Port, Mumbai Port ) to the seven different Plants of Berger
Paints.

SECONDARY OBJECTIVE:-

Identify the following:-

Custom clearance analysis and its delays.

Warehousing Details and Charges.

PAINT
DEFINITION:

Paint is any liquid, liquefiable, or mastic composition which after application to a

substrate in a thin layer is converted to an opaque solid film.
 Page |7

Paint is a pigmented material which when applied to a surface forms a solid opaque
coating under normal conditions of atmospheric temperature or elevated temperature. It
can be used as a protective coating or decorative coating.

PURPOSE OF PAINT:

Paints are used mainly for four reasons:

To protect the surface.
To decorate the surface.
To hide the surface.
Aesthetics & Identity

COMPOSITION OF PAINTS:

Paint is composed of pigments, solvents, resins, and various additives. The pigments give
the paint color; solvents make it easier to apply; binder help it dry and bind the paint;
and additives serve as everything from fillers to ant fungicidal agents. Proper paint
formulation requires suitable selection of solvents, pigments, binders and some additives.

The important features required for each of these components will be discussed below.

COMPONENTS OF PAINT

Pigment Binder Solvent Additives

The important features required for each of these components will be

discussed below.

PIGMENT:
 Page |8

By pigments we mean the insoluble solid substances, supplied in fine particles sizes which
give the dried paint film its desired color and other optical properties and also to confer
increased hardness, durability and protective properties. Pigments have also been found to
affect the consistency and the application properties of the paints consistency and the
application properties of the paints considerably.

Factors influencing the properties of pigments:

Color: Clean, bright and intense, reproducible hues are most important for all pigments.
The basic hues of the pigment have been found to be determined by its chemical
composition, whereas modification of brightness, cleanliness and intensity are affected
by the refractive index differences.

Crystal habit and crystal modification : crystal defects and ,modification of crystal
lattice patterns influence pigment characteristics. Where multiple lattice structure exists
for a given pigments, controls must be exercised during formation to obtain the proper
crystal habit and thereby to prevent incorrect hue and other unwanted pigment properties.

Particles size: hiding power of a pigment depends primarily upon the ability of the
dispersed particles to scatter light. Tinting strength is also related to the particle size and
approaches a maximum at similar values for some inorganic pigments and at low particle
sizes for carbon blacks.

Particle shape: the shape of pigment particles has also been shown to influence paint
properties, especially with respect to flow and settling, and in some instances paint film
durability. Pigments particles generally exist in three different shapes, namely nodular,
acicular and laminar. In the nodular form, particles are more or less spherical. In the
acicular shape, the particles are needle like. They have been assumed to have an
advantages effect on the mechanical properties of films due to their reinforcing effect.
Laminar shaped pigments are also known as flake, leaf or scale pigments.

Surface area : knowledge of surface area of pigments particles is essential, it varies

with the type of the pigments and the methods used for their preparation. In order to
achieve satisfactory performance properties of the films surface must be wetted properly
by a vehicle to achieve complete dispersion.

Oil Absorption : it is defined as the amount of oil in gms. required by 100 in gms. of
pigment to form a pasty mass. The rate of oil absorption varies from pigment to pigment
depending on their particle size and surface nature. This information is important while
formulating paint.
 Page |9

Bulking Value : Bulking value of a pigment is defined as the number of liters occupied
by 100 kilogram of pigment. This gives idea about the volume occupied by a given
weight of pigment.

Corrosion inhibiting properties : some pigments are used in corrosion inhibiting

primers because they produce such conditions, which would prevent or retard corrosion.
Some pigments, produce an alkaline condition, which retards the conditions for
corrosion. They would also neutralize the acids of the medium and other acids which
cause the corrosion. Sometimes soaps have water repellent properties and therefore
would decrease the absorption of water by the coating and thereby retarding the
condition for corrosion .Certain pigments have a passivating action by providing ions
which react with metal and reduce its tendency to corrode.

.
BINDER OR VEHICLE:

Binder, which is also called Vehicle or medium for paints, is the firm forming material;
which binds the pigments and keeps them in suspension in a film. These clear media are of
considerable importance, since they control to a great extent many of the fundamental
properties of the coating. Te ease and manner of application ; speed of dying under various
conditions and properties like protection against corrosion and resistance to different
chemicals are all largely dependent on the other type of medium used.

SOLVENT:

It might be assumed that because the solvents paint is ultimately lost through evaporation,
their importance is small relative to that of the other ingredients. In practice, considerable
 P a g e | 10

knowledge of the properties of the volatile ingredients of paints is essential in order to

formulate the wide variety of finishes.

ADDITIVES: -

Besides the three main categories of ingredients, paint can have a wide variety of miscellaneous
additives, which are usually added in very small amounts(1 - 4 gm in 100 gm of paint) and yet
give a very significant effect on the product. Some examples include additives to modify surface
tension, improve flow properties, improve the finished appearance, increase wet edge, improve
pigment stability, impart antifreeze properties, control foaming, control skinning, etc. Other
types of additives include catalysts, thickeners, stabilizers, emulsifiers, texturizers, adhesion
promoters, UV stabilizers, flatteners (de-glossing agents), biocides to fight bacterial growth, and
the like.They are available in all stages of paint making -

Processing : Wetting, Dispersing agents

Application : Thixotropic Additives (for making thick structure prevents sagging)

Storage : Anti- skinning agents

Performance : Biocides

FLOW SHEET SHOWING THE PRINCIPLES OF PAINT MAKING

PIGMEN MEDIUM OR SOLVENT ADDITIVES

T VARNISH
 P a g e | 11

GRINDING
EQUIPMENT

DRYERS

MIXER STAINER

FILLING

Painting Surface
DESPATCH
 P a g e | 12

Factors of good Paints

THE INDIAN PAINT INDUSTRY

 P a g e | 13

The size of the paints market in India is estimated at Rs 110 bn, with the contribution of
the organized and unorganized segments in the ratio of 65:35.
.

The paint market is expected to grow at 8 to 10 % p.a over the next few years. The
growth could be higher if industrial activity picks up as the industrial paint segment is
gaining more importance .

Paints can be broadly classified as decorative and industrial on the basis of the end use.

The Indian market is dominated by the decorative segment which comprises almost 70%
of consumption as compared to developed countries where the industrial segment is
more dominant. The ratio is India is also likely to shift more towards industrial segment,
especially with growth in the auto and white goods industry.

Over the last five years the excise rates have come down drastically from 40% to 18%
resulting in erosion of the unorganized sector’s share.

The paint industry is characterized by low fixed assets intensity but high working capital
intensity. The main investments are in brand building and distribution infrastructure.

New trends are emerging in technology and marketing. Introduction of TINTING

MACHINE at the dealer / retailer level will bring down working capital costs. Also new
technology is being used for increasing the utility and lifespan of paints.

Indian industry will have to keep pace with global technological changes to maintain their
competitiveness. Already a few alliances have been entered into and the number is likely to
increase in the future.
 P a g e | 14

The outlook for the industry is positive especially given the good prospect for automotive and
white goods industry. Moreover, housing is expected to grow rapidly on the back of rising
incomes and government incentives. The supply situation remains a cause for concern and will
keep prices under check. The key to success will be innovative marketing.

INDIAN PAINT INDUSTRY

DECORATIVE PAINT
INDUSTRY
INDUSTRIAL PAINT
INDUSTRY

NOTE: DECORATIVE PAINT INDUSTRY (70%).

INDUSTRIAL PAINT INDUSTRY (30%).

The decorative segment dominates the market in India with a 70 % share with the rest accounted
for by industrial paints. This as compared to the developed countries where the share is the
reverse with the industrial segment being the major one .With increased industrialization , the
ratio in India is also likely to change in the favor of industrials and both segments are likely to
be equal partners by the end of five year
 P a g e | 15

THE PAINT MARKET SEGMENTATION:

ON PRODUCT LINES:

Decorative or architectural paints

Decorative or architectural paints cover mainly the housing sector.

Decorative or architectural paints can be differentiated into

Premium segments: - (40%) Premium decorative paints are acrylic emulsions used
mostly in the metropolitan cities.

Medium segments: - (40%) The medium range consists of enamels, popular in smaller
cities and towns.

Distemper segments :-( 20%) Distempers are economy products demanded in the
suburban and rural markets.

Decorative paint segment : ON PRODUCT LINE

Premium segment: Metropolitan

cities
Medium segment: Smaller cities
& towns
Distemper segment: Suburban &
Rural market

NOTE: Decorative paints sold in India covers 40% Premium segment, 40% Medium segment
and 20% of all are Distempers segment and it is here that the unorganized sector has
dominance.
 P a g e | 16

Industrial paints
Industrial paints cover mainly the automotive segment.

Industrial paints can be differentiated into:

Automotive Paints - 50%

High Performance Coating - 30%.

Powder Coating - 10%

Coil Coating - 5%

Marine Paints - 5%

Industrial paint segment: ON PRODUCT LINE

Automotive Paints
High Performance Coating
Powder Coating
Coil Coating
Marine Paints

NOTE: Industrial paints sold in India covers 50% Automotive paints , 30% High performance
coating paints ,10%Powder coating paints, 5%Coil coating paints , 5% Marine coating paints.
 P a g e | 17

ON MARKET SEGMENTATION:

Decorative or architectural paints:

Decorative paints can be differentiated into:

Decorative Paints Segment Market Size In Rs (Million)

Enamel 8600
Wall finishes 4730
Primers 2150
Wood finishes 430
Total 15910

8600
9000
8000
7000
6000 4700
5000
4000
3000 2150

2000
430
1000
0
Enamel Wall finishes Primers Wood finishes

Market size in Rs (million)

 P a g e | 18

Industrial paints:
Industrial paints can be differentiated into:

Industrial Paints Segment Market Size In Rs(Million)

Auto 4386
CRP 1075
Powder 860
Coil 94.6
Others 731
Total 7147

4386
4500

4000

3500

3000

2500

2000

1500 1075
860
731
1000

500 94.6

0
Auto CRP Powder Coil Others

Market size in Rs (million)

COMPANY PROFILE
 P a g e | 19

INTRODUCTION:

Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis
Berger, who through his marvelous shades, had offered people a chance to transform
their homes through the power of imagination. At Berger it is believed in taking paints
to the level of fine art. Enriched by the imagination of Lewis Berger since 1760.

COMPANY BACKGROUND:

Berger Paints India has reported a sales turnover of Rs. 491.87 crore and a net profit of
Rs. 37.02 crore for the quarter ended Jun 2010.

For the quarter ended Jun 2009 the sales turnover was Rs. 372.63 crore and net profit
was Rs. 28.38 crore.

Berger Paints India Limited (the Company) is ranked no. two in terms of volume and no. three

in terms of value in Indian paints industry. The Company has a 19% market share in the

decorative segment which accounts for a bulk of its volumes. Berger paints enjoys good

brand equity in lower priced paints and has market domination in the east. The Company’s

production facilities are situated all across India; enabling it to cater to all the major regions.

The Company is a part of the UK Paints group, India.

COMPANY HISTORY:

1923 - The Company was incorporated on 17th December, in West Bengal. The
Company manufacture and sell paints, varnishes, dry colours,enamels,pastes, distemper,
ships paints, boiler components and various other kinds of paints to meet the
requirements of trade, commerce and industry. Some of the brands manufactured are
Castle, Parrot, Duroglaze, Luxol, Murisan, Synthetic, Soligum, Apexior, etc.
 P a g e | 20

1975 - The Protection Paints division was launched to specialize in heavy duty paints
required to with standex acting conditions of high chemical and atmospheric corrosion in
chemical process industries and other allied industires and installations.

1986 - The Company concluded a technology agreement with Vaspa Corporation of

U.S.A. for manufacture of highly anti-corrosive coatings.

1995 - The Company proposed to set up a new factory at Pondicherry with an installed
capacity of 18,000 tpa of paints, enamels and varnishes and 6,000 tpa of synthetic resins.
It was also proposed to augment the
existing powder manufacturing capacities at theplant in Howrah.

2001 - Berger Paints India Ltd. has unveiled a new brand promotion strategy which it
claims to be the first of its kind in the industry.

- Despite a slight increase in sales, the net profit of Berge Paints India Ltd has dropped
by around 10 per cent for the half-year ended September 30, 2001.

- Berger Paints Ltd and ICI Ltd, have formed a 50:50 joint venture to manufacture auto
and industrial coatings at Rishra in West Bengal.

2006 - Berger Paints India Ltd has entered into a Joint Venture Agreement (JV) with
Nippon Bee Chemical Co Ltd of Japan for the purpose of formation of a Company for
manufacture and sale of coatings for plastic substrates used in automobiles and parts
thereof in India.

2007 - Berger Paints India Ltd has entered into a Joint Venture Agreement (JV) with
Nippon Bee Chemical Co Ltd of Japan for the purpose of formation of a Company for
manufacture and sale of coatings for plastic substrates used in automobiles and parts
thereof in India.
 P a g e | 21

2008 - Berger Paints India Ltd has informed that Mr. Gerald Kenneth Adams has been
appointed as a Director of the Company effective January 30, 2008.

2009 - Berger Paints India Ltd has informed that Mr. Pulak Prasad was appointed an
Additional Director (non-whole time) of the Company under Section 260 of the
Companies Act, 1956.

2010-Even as it considers an acquisition proposal, Berger Paints India (BPIL) is rapidly

completing a slew of greenfield and brownfield projects which will double its capacity
by 2015, besides enabling it to set up its biggest capacity within two years. It is also
planning to revive the proposal to set up an automotive paint unit at Jejuri near Pune in
Maharashtra.

BERGER PAINTS FACTORIES:

 PONDA (GOA)

 JAMMU(J&K)

 VALLAB VIDYA NAGAR ( GUJRAT)

 DEVLA (U.P.)

 PONDICHERRY

 HOWRAH (West Bengal)

 RISHRA (WEST BENGAL)

THE MAJOR BRAND DETAIL OF BERGER PAINTS

 P a g e | 22

Berger color bank offers an excellent range of products that appeal to the discerning
householder as well as the budget conscious individual keen on stretching the rupee. The range
of products available are mentioned below. The products are available in 1 liter , 4 liter, 10 liter
and 20 liter containers.

SOME OF THE WELL KNOWN BRANDS OF BERGER PAINTS:

INTERIOR FINISHES FOR WALLS

NAME DESCRIPTION COVERAGE

LUXOL SILK SPLENDOR Premium silk with excellent richness and high 20-28 m^2/ltr/coat
durability. Has a sheen finish.

Rangoli fashion finish Rich acrylic emulsion with a matt finish 24-26m^2/ltr/coat

Luxol gold luster finish Premium quality semi glossy synthetic enamel 12-14m^2/ltr/coat
for kitchens, toilet and hotels.

Bison super distemper Premium quality acrylic distemper with matt 12-14m^2/ltr/coat
finish

INTERIOR FINISHES FOR METAL SURFACES

NAME DESCRIPTION COVERAGE

Luxol gold enamel Super premium , durable , glossy synthetic 18-22m^2/ltr/coat

enamel for furniture grills, windows etc.

Luxol gold luster finish Premium quality semi glossy synthetic 12-14m^2/ltr/coat
enamel for windows , grills, etc
 P a g e | 23

NAME DESCRIPTION COVERAGE

Wood keeper melamine A unique two pack for cold catalyzed wood 9.5-15.5
finish coating system . m^2/ltr/coat

Woodkeeper clear finish A polyurethane enriched clear wood finish 9.5-

specially for hard working wooden surfaces. 15.5m^2/ltr/coat.

INTERIOR FINISH FOR WOOD SURFACES

NAME DESCRIPTION COVERAGE

Weather coat classic 100% acrylic, tough paint 13-15m^2/ltr/coat

smooth

Weather coat classic Tough exterior paint with textured surface 7-9m^2/ltr/coat
texture
EXTERIOR FINISHES FOR WALLS
Walmasta classic Economy acrylic emulsion 10-11m^2/ltr/coat

NAME DESCRIPTION COVERAGE

Luxol gold enamel Super premium , durable glossy synthetic 18-22m^2/ltr/coat

enamel for windows,grills etc.

Luxol gold lusture Premium quality , semi glossy synthetic 12-14m^2/ltr/coat

enamel for kitchens ,hotels balcony ,
staircases ,etc .

EXTERIOR FINISHES FOR METAL SURFACES

 P a g e | 24

PRIMERS AT A GLANCE

NAME DESCRIPTION COVERAGE

Color bank all purpose Available in both water and solvent 8 to 9 m^2/ltr/coat
primer thin able versions. Surely the best
primer available for any surface
walls or wood.

MAJOR RAW METERIALS IMPORTED

RAW MATERIAL SCENARIO:

 P a g e | 25

The paint industry is raw material-intensive, in terms of value and quantity of raw materials
used. Raw material costs account for around 70% of total production costs. Imports
constitute around 30% of the raw material requirements.

70% of total Production Cost is of Raw Material Cost

30%

70%

IMPORTED RAW METERIALS AND COUNTRIES FROM:

METERIAL COUNTRY FROM

SYIA195NX795 BELGIUM
(PORT ANTWERPEN)

NATROSOL 250HHBR BELGIUM ( PORT ANTWERPEN)

 P a g e | 26

BELGIUM:

METERIAL COUNTRY FROM

1.MATT HARDNER CHINA

(PORT ZHANJIANG)
THROUGH MALAYSIA

2.CMC BONDWELL CHINA (PORT XIAMEN)

THROUGH MALAYSIA

3.TITANIUM DIOXIDE ANATASE CHINA (PORT SHANGAII)

4. ADDITOL(P964), CHINA(ZHANJIANG)
SYNTHACRYL-700 THROUGH MALAYSIA

5.MODIFIED PHENOLIC RESIN CHINA(HONGKONG)

6.IRON OXIDE RED, CHINA( PORT ZHANJIANG)

IRON OXIDE ORANGE THROUGH MALAYSIA

7.CALCINED KAOLIN CHINA

(INNER MOGOLIA CLOSET- PORT
TIANJIN)

8.C9PETROLEUM CHINA(ZHANJIANG)
RFESIN N100 THROUGH MALAYSIA

CHINA:
 P a g e | 27

GERMANY: -

METERIAL COUNTRY FROM

PENTAERYTHRITOL GERMANY (PORT BREMERHAVEN)

ALPASTE SRAPA ,

METALLIC R-274,
GERMANY (PORT BREMERHAVEN)
STD AL POWDER,

AL PASTE

VESTANAT T 1890L, GERMANY (PORT HAMBURG)

POLYOIL

CARBON BLACK ,
GERMANY (PORT KIEL)
PRINTEX,

LAMPBLACK101BEADS.

TITANIUM DIOXIDE RUTILE KRONOS GERMANY (PORT KIEL)

BAYSILONE PAINT ADDITIVE, GERMANY(PORT BREMEN)

SOLIGEN STABILIZER

TEGO PHOBE 1401, GERMANY (PORT BREMERHAVEN)

ADHESION RESIN

BLANC FIXE SUPER "F" GERMANY (PORT KIEL)

‘
ALUBRIGHT 3900 GERMANY (PORT BREMERHAVEN)

SILRES BS-1360 GERMANY (PORT BREMERHAVEN)

TYLOSE HS 10000 GERMANY (PORT HAMBURG)

 P a g e | 28

JAPAN:-

METERIALS COUNTRY FROM

DURANATE 22A75PX,
JAPAN(OSAKA)
DURANATE TPA 90SB,

ALUMINIUM PASTE 970519,

ALUMINIUM 7130N,

ALUMINIUM PASTE 7640NS

TITANIUM DIOXIDE RUTILE CR50 JAPAN

(OSAKA)

HEXA HYDRO PHTHALIC ANHYDRIDE JAPAN (TOKYO)

METHYL ETHYL KETOXIME JAPAN

(OSAKA)
 P a g e | 29

JORDAN:-

METERIAL COUNTRY FROM

CALCIUM CARBONATE JCFS JORDAN

(AMMAN)

NITHERLANDS: -

METERIAL COUNTRY FROM

URALAC P4055,

URALACP5127, NETHERLANDS
(AMSTERDAM)

URALACP4140,

URALACP5201

SETALLUX NETHERLANDS
(PORT MOERDIJK)

SINGAPORE:-

METERIAL COUNTRY FROM

 P a g e | 30

TEXANOL SINGAPORE

SICOTRANS REDL-3035, SINGAPORE

SICOTRANS YELLOW

1916,REDL- 2817

METHYL METHACRYLATE SINGAPORE

SURFYNOL 104 SINGAPORE

ACRYSOL RM 825 SINGAPORE

ROPLEX HG-706
SINGAPORE

SOUTH KOREA:-

METERIAL COUNTRY FROM

HIQUE332 SOUTH KOREA (YEOSU)

TIWAN:-
 P a g e | 31

SPAIN:-

METERIAL COUNTRY FROM

METHYL ISO BUTYL KETONE SPAIN (BARCELONA)

METERIAL COUNTRY FROM

PARAFORMALDEHYDE92 PCT TIWAN (TAICHUNG)

SWEDEN:-

METERIAL COUNTRY FROM

BERMOCOLL EHM-200 SWEDEN(LYSEKIL)

TRIMETHYLOLPROPANE SWEDEN(LYSEKIL)

THILAND:-
 P a g e | 32

METERIAL COUNTRY FROM

CRYLCOAT-2441 THILAND (BANGKOK)

EPOXY RESIN EPOTECYD 127,

EPOXY RESIN PROTECYD901X75, THILAND (BANGKOK)

EPOXY RESIN EPOTE YD 903

CRYLCOAT-1510 THAILAND (BANGKOK)

TIWAN:-

METERIAL COUNTRY FROM

PARAFORMALDEHYDE92 PCT TIWAN (TAICHUNG)

U.A.E.(SHARJAH):-

METERIAL COUNTRY FROM

UAE(SHARJAH)
EPOXY RESIN

ZINC DUST STANDARD-7 UAE(SHARJAH)

UNITED KINGDOM :-
 P a g e | 33

METERIALS COUNTRY FROM

BENTONE-27,

MPA 60,

UK(LONDON)
BENTONE38,

BENTON"EW",

BENTONE
SD-2,

RHEOLATE-278,

BENTONE SD-3

USA: -

METERIAL COUNTRY FROM

RUTILE TI PURE USA(PORT WILMINGTON)

TIXOGEL-MP USA( PORT SAN FRANCISCO)

CUMARR-29 USA(PORT PITTSBURGH)

TROYKYD D-666 USA(NEW JERSY) NEAREST PORT NYK

 P a g e | 34

VIETNAM:-

METERIAL COUNTRY FROM

GUM ROSIN "WW" GRADE VIETNAM

(HO CHI MINH CITY)

TIME SHEDULING

TOTAL TIME ALLOTED: 8 WEEKS ( 2 MONTHS)

STAGES ACTIVITIES NUMBER OF DAYS NUMBER OF

PLANNED DAYS ACTUAL
WORK
STAGE1 Knowing the Paint industry, 7 DAYS 5 DAYS
Company profile & selecting the
Project title from Berger Paints .
STAGE 2 Gathering information on Raw 4 DAYS 5 DAYS
materials imported from different
Countries and Plant locations of
Berger Paints.
STAGE 3 Visiting Shipping Agents for 14 DAYS 16 DAYS
 P a g e | 35

information on Inbound Logistics

Lead Time Analysis For Port to Port
Importation.
STAGE 4 Visiting Custom Clearance officer 8 DAYS 5 DAYS
for information on Custom Clearance
of Imported goods.
STAGE 5 Visiting Ware Housing Companies 10 DAYS 11 DAYS
for Warehousing details and
Charges.
STAGE 6 Visiting Road Transport Agents for 10 DAYS 14 DAYS

information on inbound logistics

Lead Time Analysis for Port to Plant

Importation.
STAGE 7 Preparing the Project Report 7 DAYS 10 DAYS

TIME SHEDULING GRAPH

 P a g e | 36

18
16
16
14 14
14

12 11
10 10 10
10
8
87 7

65 5 5
4
4

0
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 STAGE 7

NO. OF DAYS PLANNED NO. OF DAYS ACTUAL WORKED

RESEARCH METHODOLOGY
 P a g e | 37

“Systematized effort to gain new knowledge”.

-Redman and
Mory.
DEFINITION:-

A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other.

RESEARCH MODEL:-

Research is a systematic and organized effort to investigate specific problem or problems

encountered by an organization that needs a solution. A research can also be carried out to
gather knowledge that can be later used in an organization or some other institutions to solve
problems.

Type of Research:-

Applied Research- This type of research is carried out to solve a problem faced
by an organization. The intention of applying the findings of the research is to solve specific
problems faced by the organization.

Basic Research – This type of research is carried out to generate knowledge by

trying to comprehend how certain problems that occur in an organization can be solved. The
findings of this research can be later used by organization to solve certain problems. The
findings of this type of research contribute to building of knowledge in various functional areas
of business.
 P a g e | 38

In this research paper we have done a Basic Research to find out the Lead Time
Analysis of Imported Raw Materials from Port to Plant for Berger Paints India Pvt
Ltd. We hope the findings of our research will help the company’s Materials
Department to analyze better, the total time taken for importation of raw materials and
how it can be reduced by avoiding the delay time. And it will also give a clear
projection on the warehouse charges offered by different companies for storing the raw
materials.

DEFINITION OF THE RESEARCH PROBLEM:-

A problem is any situation where a gap exists between the actual and the desired ideal states.

Here the objective is to show “How the Lead Time of Importation is calculated and
how it can be reduced to minimum”. This study is carried in the backdrop of Berger
Paints India Pvt. Ltd. This reveals the overview of the total time taken by the raw
materials to reaches the destined plant by avoiding unnecessary delays. Hence finding
answers to some of the most interesting questions.

1. How lead time for importation of raw materials can be more accurately
calculated so that the production is not hampered?
2. How delay time can be reduced to minimum?
3. What are the warehouse charges and how they are calculated?

RESEARCH FRAMEWORK:-

The report has been prepared on the basis of information collected from different

sources. In order to achieve the objective of the project proper research method was applied.

After giving thorough brain storming session, objectives were selected and the set on the base of

these objectives, information was gathered giving major emphasis on new ideas or insight so as

to determine and bind out solution to the problems.

 P a g e | 39

RESEARCH DESIGN:

Purpose of the Study:

Studies may be either:

1. Exploratory study.

2. Descriptive study.

3. Causal study.

These classifications are made according to the objective of the research. In some cases the
research will fall into one of these categories, but in other cases different phases of the same
research project will fall into different categories.

Exploratory study - This type of study is undertaken when much is not known about the
situation at hand or very less or no information is available on how similar problems have been
solved in the past.

This research has the goal of formulating problems more precisely, clarifying concepts, and
gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses.

Descriptive study - This type of study is undertaken in order to ascertain and describe the
characteristic of the variables of interest in a situations.

Causal research: - seeks to find cause and affect relationships between variables. It
accomplishes this goal through laboratory and field experiments.

The very purpose of our study of Lead Time Analysis of Imported Raw Materials is
to have a Descriptive study on various steps involve in transportation of raw materials
from the source port to the destined plant.
 P a g e | 40

RESEARCH PROCESS:-

In this project I had to survey the various location of Kolkata. In my survey primarily I had to
find out the shipping agents who performs importation of goods from various countries of the
world. And various road transportation agents who transports goods in trucks, trailers, tankers in
various parts of the country.

Secondarily I had to survey the custom clearance department to find out the custom clearance
details and what are the various formalities and paper work one has to show for getting a
clearance from the customs department. And the warehousing agents for the warehousing
charges and in what basis they are charged by various agents, for storing the raw materials after
they are cleared by the customs department.

For these objectives the research methodology that I followed:

Defining the objective

Scope of the study
Limitation of the study
Develop the research plan

Identify data types and sources

Research approaches
Research Instruments
Determine sample plan and size
Contact methods
Collect the data
Collect the information
Analyzing and interpretation of the data
 P a g e | 41

Objectives of the study:-

Inbound logistics Lead time analysis (Port to Port).

Inbound logistics Lead time analysis (Port to Plant).

Custom clearance analysis

Warehousing Details and Charges.

Scope of the study:-

To know the time taken for importing the raw materials from 17 different
countries all around the world through sea route.

To know the custom clearance details and what are the various formalities and
paper works required for clearance.

To know the warehousing charges and in what basis they are charged by
various warehousing agents in Kolkata.

To know the time taken for transporting the imported raw materials from 3
different ports to 7 production plant of Berger Paints in India.

Limitations of the study:-

Time limit restricts detailed research work for this particular topic.

Warehousing charge details are restricted to warehouses of Kolkata only.

Most of the officials have lack of time so they don’t communicate properly.

Due to steep competition between the shipping agents, between warehousing

agents and between transportation agents they aren’t willing to disclose
information regarding charges.

The research regarding the warehouse charges are geographically restricted to

Kolkata only. Hence the result cannot be extrapolated to other places.
 P a g e | 42

Research plan:-

Time span – 20.05.2010 to 25.07.2010

Total 8 weeks and 5 days of working.

Actual field working-

1. To identify various shipping agents, warehousing agents and

transportation agents.
2. To meet officials of the above mention agents and the custom
clearance officials directly in their office as their availability.
3. To meet truck drivers personally for information regarding

normal delay time.

Introduction and gathered product knowledge – 6 days

Data collection time – 5 weeks & 5 days.

Analysis of the data -1 week.

Final Preparation of project – 1 week.

Data types and sources:-

For this project both primary and secondary data were the most valuable source of
information.

Primary data:

Primary data are data freshly gathered for a specific purpose.

In my project the source of primary data is Interviewing Method.

Secondary Data :

Secondary data are those which are previously may have been collected for other
purposes but that can be used in the immediate study. The secondary data was the
 P a g e | 43

most important source for my project to find out the raw materials importation
details. In my project the secondary data are collected from: –
List of raw materials imported from 17 different countries and
their addresses given from the company.
Internet.
Newspaper.
Magazines.
Company web site.

Secondary data has the advantage of saving time and reducing data gathering costs. The
disadvantages are that the data may not fit the problem perfectly and that the accuracy may be
more difficult to verify for secondary data than for primary data.

Research approaches:
From the two data source which I have mentioned above secondary data are the easiest
way to gather and the cost of collecting this data is very low and easily available from
the respective association.
After collecting the secondary data or information from the secondary sources then I
started collecting primary data from the agencies to narrow down my research. There are
basically five ways to collect data:-
Survey Research: - This method was one of the most appropriate way to
collect data. The research approach is a widely used method for data
collection and best suited for descriptive type of research.
This approach I have used while surveying the warehouse charges of
different warehouse agencies.
Observational Research: - This method was widely used by me in my
project, because this survey has provided me the details of time taken in
importing the raw materials from different countries as this could only be
found out by observing the time taken by the ships to travel from the source
countries to the 3 destination ports of India provided to me by the different
shipping agencies. And also through observation research I could judge the
 P a g e | 44

time taken by the road transport to reach the destination plant from the
warehouses provided to me by different road transportation agents.
Focus-group Research: - This method was also used by me in my project
because for getting the warehouse charges I had to filter other warehouse
agencies and focus on the groups who can provide me the minimum area
coverage of 5000 sq. feet for storing the raw materials for Berger Paints.
Behavioral data:-This method was also not used by me in my research.

Research instrument: - There is various way of research instrument of collecting

primary data, the various methods are:-

Questionnaires.
Psychological tools.
Mechanical Devices
Qualitative Measures.

Here psychological tool was used as the research instrument.

Sampling Plans:-After deciding the research approach and instruments, now I had to
decide on the sampling plan which was one of the important task, because from the
bunch of people I had to select only those people(agents), whom I can target from now
onward .There are three way of sorting the data.
Sampling Unit: - who is to be surveyed? And now my task was to define the
target population, which will be sampled from the number of people.
In this project my target population was only various types of agents:
1. Shipping agents
2. Warehousing agents
3. Road transportation agents
4. Custom clearance officials.
 P a g e | 45

Sample Size: -
Unit Numbers
Shipping agents(of Kolkata) 4
Warehousing agents 4
Road transportation agents 4
Custom clearance official 1

Sampling Area:- Sample collected from the different parts of Kolkata and suburb as
follows –
Khidirpur
Alipore for Ware housing agents.
Ballygunge
Hazra
Khidirpur. for Shipping agents.
Burrabazar
Hazra
Rishra for Road transport agents.
Dunlop
Hazra for Custom Clearance agent.
 P a g e | 46

Contact methods: - After identified the exact location of agents through internet my
task was how to contact them, and for me there was only two ways of contacting them.

Primary:

Personal Interview: - this method was the most appropriate way of

survey, because by personal interview I came to know the exact time
taken and charges of the warehouses of their individual Company.

Secondary:

Telephone: - This method is also used by me because the agents had no

time for me and there was no other option to meet them so through
telephone I got to fix an appointment to meet them and explain them my
requirements or sometimes collected information from them over phone.
e-Mail:- This method is also used by me because the shipping agents
of MUMBAI and CHENNAI could only be contacted and approached about
my requirement through mails for gathering information.
 P a g e | 47

FINDING: Inbound logistics Lead time – Port to Port.

LEAD TIME:

Here lead time means total time which is considered approximately for the raw materials to
reach from source port to destination port via sea ways .

While calculating the lead time some points are taken into consideration:

1. Availability of proper shipment: This means availability of ships of proper size and
proper cargo containers so that the raw materials can reach the destination in the exact
form as required.

2. Availability of proper labor :This means availability of proper

Manpower to load (while in source port) and unload (while in destination port) the raw
materials.

3. Availability of proper connecting ships: If proper connecting ships between source

port and destination port are unavailable then it might cause a delay.
4. Transshipment: is the shipment of goods or container to an intermediate destination,
and then from there to the source destination this is done because of transloading.

5. Delay in delivery :Delay in delivery can happen due to many reasons: D1

Delay due to natural calamities like storms, tsunamis , hurricanes, etc.

Perils, dangers and accidents of the sea or navigable water.
An act of war or fighting between armed forces.
Civil war, riots, subversion and civil commotions.
Detention, arrest, restraint or any interference made against the ship by the ruler
of any State or territory, or under provisions of law, provided that it is not caused
by fault or neglect of the carrier.
Quarantine (spread of something considered dangerous )restrictions.
Strikes, lockouts, stoppage or intentional slowdown at any port which obstruct
the loading and discharge of goods, or berthing or unberthing.
Act of piracy.
Latent defects of the ship not visible or discoverable by inspection with care and
skill which can normally and properly be expected of a person engaged in an
occupation of inspector of ships.
Error in navigation arising from the fault of the pilot in the discharging of his
duties or from the pilot's instruction.
 P a g e | 48

Analysis :Inbound logistics Lead time - Port to Port.

Inbound logistics Lead time : To find out the amount of time it takes to stage, ship and
transport an order, in order to receive material from the supply base for manufacturing the
product from date of release of purchase orders, to receive of materials in Berger Paints India
Ltd. (BPIL) considered as lead time. It includes the following:

Execution/Production of material at source.

Transporting materials from manufacturing installation to source port.
Sea passage time of containers.
Clearance at destination port.
Transportation at BPIL installation.

Details analysis of shipment of raw material of Berger Paints from different countries and time
taken to reach the THREE destination ports (KOLKATA, MUMBAI AND CHENNAI PORTS.)
are given below:

Figure 1: TIME TAKEN FROM BELGIUM

25

20

15 BELGIUM-
23 ANTIWERPAN
21
19
NO. OF 10

DAYS
5

(Y 0
AXIS) KOLKATA MUMBAI CHENNAI

METERIAL COUNTRY FROM TO KOLKATA TO CHENNAI TO MUMBAI

SYIA195NX795 BELGIUM(ANTW 22DAYS 21HRS 20DAYS 18DAYS 17HRS

ERPEN) (7688NMILES) 17HRS (6289NMILES)
(6963NMILES)

NATROSOL BELGIUM(ANTW 22DAYS 21HRS 20DAYS 18DAYS 17HRS

250HHBR ERPEN) (7688 NMILES) 17HRS (6289NMILES)
(6963NMILES)
 P a g e | 49

Figure 2: TIME TAKEN FROM CHINA

15.5
16 14 13.5
13 13
14 11.5 12 12 11.5 11.5 11
12 10 9.5
9 9
10
8
6
NO. OF
4
DAYS
2
(Y AXIS) 0
KOLKATA MUMBAI CHENNAI

CHINA-ZHANJIANG CHINA-XIAMEN CHINA-SHANGAII

CHINA HONGKONG CHINA TIANJIN

METERIAL COUNTRY FROM TO KOLKATA TO CHENNAI TO MUMBAI

CHINA 11DAYS 16HRS 11DAYS 14DAYS

MATT HARDNER (ZHANJIANG) (3921NMILES) 12 HRS (4710 NMILES)
THROUGH (3863NMILES)
MALAYSIA

CHINA 9DAYS 18 HRS 9DAYS 12DAYS 2HRS

CMC BONDWELL (XIAMEN) (3272NMILES) 14 HRS (4062NMILES)
THROUGH (3215NMILES)
MALAYSIA

TITANIUM DIOXIDE ANATASE CHINA 11DAYS 6HRS 11DAYS 2HRS 13DAYS 14HRS
(SHANGAII) (3779NMILES) (3722NMILES) (4569NMILES)

CHINA 11DAYS 16HRS 11DAYS 12 HRS 14DAYS

ADDITOL(P964), (ZHANJIANG) (3921NMILES) (3863NMILES) (4710 NMILES)
SYNTHACRYL-700 THROUGH
MALAYSIA
 P a g e | 50

MODIFIED PHENOLIC RESIN CHINA 9DAYS 2HRS 8DAYS 22HRS 11DAYS 11HRS
(HONGKONG) (3054NMILES) (2997NMILES) (3844NMILES)

CHINA (INNER 13DAYS 1HR 12DAYS 21HRS 15DAYS 9HRS

CALCINED KAOLIN MOGOLIA (4376NMILES) (4320 NMILES) (5166NMILES)
CLOSET-PORT
TIANJIN)

CHINA(ZHANJIAN 11DAYS 16HRS 11DAYS 12 HRS 14DAYS

C9PETROLEUM G) THROUGH (3921NMILES) (3863NMILES) (4710 NMILES)

RFESIN N100 MALAYSIA

IRON OXIDE ORANGE, CHINA(ZHANJIAN 11DAYS 16HRS 11DAYS 12 HRS 14DAYS

IRON OXIDE YELLOW 920, G) THROUGH (3921NMILES) (3863NMILES) (4710 NMILES)
RUTILE TITANIUM DIOXIDE MALAYSIA
 P a g e | 51

FIGURE 5: TIME TAKEN FROM GERMANY

25

20

15
23 23 23 23.5
21 21 21.5 21.4
NO. OF 10 19 19 19.5 19.4
DAYS
5
(Y AXIS)
0
KOL MUM CHEN

GERMANY-BREMERHAVEN GERMANY -HAMBURG

GERMANY-KIEL GERMANY-BREMEN

METERIAL COUNTRY TO KOLKATA TO MUMBAI TO CHENNAI

FROM

PENTAERYTHRITOL GERMANY 23DAYS 19DAYS 8HRS 21DAYS 8HRS

(BREMERHA 12HRS(7889NMILES) (6491NMILES) (7164NMILES)
VEN)

ALPASTE SRAPA , GERMANY 23DAYS 12HRS 19DAYS 8HRS 21DAYS 8HRS

(BREMERHA (7889NMILES) (6491NMILES) (7164NMILES)
METALLIC R-274, VEN)

STD AL POWDER,

AL PASTE

VESTANAT T 1890L, GERMANY 23DAYS 15HRS 19DAYS 11HRS 21DAYS

(HAMBURG) (7943NMILES) (6545NMILES) 12HRS
POLYOIL (7218NMILES)

CARBON BLACK ,
GERMANY 23DAYS 17HRS 19DAYS 21DAYS
(KIEL) (7962NMILES) 12HRS(6564NMILE 13HRS(7237N
PRINTEX, S) MILES)

LAMPBLACK101BEADS.

TITANIUM DIOXIDE RUTILE GERMANY 23DAYS 17HRS 19DAYS 21DAYS

KRONOS (KIEL) (7962NMILES) 12HRS(6564NMILE 13HRS(7237N
S) MILES)
 P a g e | 52

BAYSILONE PAINT ADDITIVE, GERMANY( 23DAYS 19DAYS 21DAYS

BREMEN) 14HRS(7924NMILES) 10HRS(6525NMILE 10HRS(7199N
SOLIGEN STABILIZER S) MILES)

GERMANY 23DAYS 19DAYS 21DAYS

TEGO PHOBE 1401, (BREMERHA 12HRS(7889NMILES) 8HRS(6491NMILES 8HRS(7164NMI
VEN) ) LES)
ADHESION RESIN

BLANC FIXE SUPER "F" 23DAYS 19DAYS 21DAYS

GERMANY 17HRS(7962NMILES) 12HRS(6564NMILE 13HRS(7237N
(KIEL) S) MILES)

ALUBRIGHT 3900 GERMANY 23DAYS 19DAYS 21DAYS

(BREMERHA 12HRS(7889NMILES) 8HRS(6491NMILES 8HRS(7164NMI
VEN) ) LES)

SILRES BS-1360 GERMANY 23DAYS 19DAYS 21DAYS

(BREMERHA 12HRS(7889NMILES) 8HRS(6491NMILES 8HRS(7164NMI
VEN) ) LES)

TYLOSE HS 10000 GERMANY 23DAYS 19DAYS 21DAYS

(HAMBURG) 15HRS(7943NMILES) 11HRS(6545NMILE 12HRS(7218N
S) MILES)
 P a g e | 53

FIGURE 4: TIME TAKEN FROM JORDAN:

13
14

12 10.5

10 8.5

8 JORDAN-
AMMAN
6

4
NO. OF
DAYS 2

0
KOL MUM CHEN

METERIAL COUNTRY TO TO MUMBAI TO CHENNAI

FROM KOLKATA

CALCIUM CARBONATE JORDAN 12DAYS 8DAYS 14 HRS 10DAYS 14HRS

JCFS (AMMAN) 18HRS (2882NMILES) (3555NMILES)
(4281NMILES
)

Figure5: TIME TAKEN FROM JAPAN

16
15
16 13.5 13.3
13 12.5
14
12
10
NO. OF 8
DAYS 6
4
(Y AXIS)
2
0
KOL MUM CHEN

JAPAN OSAKA JAPAN TOKYO

 P a g e | 54

RAW FROM TO KOLKATA TO MUMBAI TO CHENNAI

MATERIAL COUNTRY

DURANATE
22A75PX, JAPAN(OSAKA) 12DAYS 21HRS 15DAYS 6HRS 12DAYS 17HRS
(4331NMILES) (5121NMILES) (427NMILES)
DURANATE
TPA 90SB,

ALUMINIU
M PASTE
970519,

ALUMINIU
M 7130N,

ALUMINIU
M PASTE
7640NS

TITANIUM JAPAN 12DAYS 21HRS 15DAYS 6HRS 12DAYS

DIOXIDE (OSAKA) (4331NMILES) (5121NMILES) 17HRS(427NMILES)
RUTILE
CR50

HEXA JAPAN 13DAYS 13HRS 15DAYS 21HRS 13DAYS 9HRS

HYDRO (TOKYO) (4550NMILES) (5340NMILES) (4494NMILES)
PHTHALIC
ANHYDRIDE

METHYL JAPAN 12DAYS 15DAYS 12DAYS

ETHYL (OSAKA) 21HRS(4331NMILES 6HRS(5121NMILES) 17HRS(427NMILES)
KETOXIME )
 P a g e | 55

Figure 6: TIME TAKEN FROM MALAYSIA

6.3 6.5
7
6
4.5
5 3.8 3.8 4
4
3
2
NO.OF
DAYS 1
0
KOLKATA CHENNAI MUMBAI

PORT PENANG(NO.OF DAYS) PORT KELANG(NO. OF DAYS)

MATERIAL COUNTRY KOLKATA CHENNAI MUMBAI

FROM

ADDITOL P-964 MALAYSIA 3 DAYS 20HRS 3DAYS 6DAYS 9HRS

(PENANG) ( 1293NMILES) 19HRS(1279NM (2142NMILES)
ILES)

CAFCO SPRAY MALAYSIA 3 DAYS 20HRS 3DAYS 6DAYS 9HRS

(PENANG) ( 1293NMILES) 19HRS(1279NM (2142NMILES)
ILES)

DISTILLED MALAYSIA 4DAYS 15HRS 4DAYS 6DAYS 16HRS

COCONUT FATTY (PORT (1556NMILES) 4HRS(1396 (2242NMILES)
ACID KELANG) NMILES)

TITANIUM DIOXIDE MALAYSIA 4DAYS 15HRS 4DAYS 6DAYS 16HRS

RUTILE (PORT (1556NMILES) 4HRS(1396 (2242NMILES)
KELANG) NMILES)
 P a g e | 56

FIGURE 7: TIME TAKEN FROM NITHERLANDS.

23.5 23
25 21 20.75
19 18.7
20

15

10
NO. OF
5
DAYS
0
KOL MUM CHEN

AMSTERDAM MOERDIJK

METERIALS COUNTRY KOLKATA MUMBAI CHENNAI

FROM

URALAC P4055,

URALAC NETHERLANDS 23DAYS 19DAYS 21DAYS 1HRS

P5127, (AMSTERDAM) 4HRS(7789NMILES) (6390NMILES) (7064NMILES)

URALAC
P4140,

URALAC
P5201

SETALLUX NETHERLANDS 22DAYS 22HRS 18DAYS 18HRS 20DAYS 18HRS

(MOERDIJK) (7695NMILES) (6296NMILES) (6969NMILES)
 P a g e | 57

Figure 8: TIME TAKEN FROM SINGAPORE

7
7
6 5
4.7
5
4
3
NO. OF
2
DAYS1(Y
AXIS)0
KOL MUM CHEN

SINGAPORE

METERIAL COUNTRY TO KOLKATA TO MUMBAI TO CHENNAI

FROM

TEXANOL SINGAPORE 4DAYS 7DAYS 4DAYS 17HRS

21HRS(1634NMILES 5HRS(2424NMILES) (1578NMILES)
)

SICOTRANS 4DAYS 7DAYS 4DAYS 17HRS

REDL-3035, 21HRS(1634NMILES 5HRS(2424NMILES) (1578NMILES)
)
SICOTRANS
YELLOW SINGAPORE

1916,REDL- 2817

METHYL SINGAPORE 4DAYS 7DAYS 4DAYS 17HRS

METHACRYLATE 21HRS(1634NMILES 5HRS(2424NMILES) (1578NMILES)
)

SURFYNOL 104 SINGAPORE 4DAYS 7DAYS 4DAYS 17HRS

21HRS(1634NMILES 5HRS(2424NMILES) (1578NMILES)
)

ACRYSOL RM 825 SINGAPORE 4DAYS 7DAYS 4DAYS 17HRS

21HRS(1634NMILES 5HRS(2424NMILES) (1578NMILES)
)

ROPLEX HG-706 4DAYS 7DAYS 4DAYS 17HRS

SINGAPORE 21HRS(1634NMILES 5HRS(2424NMILES) (1578NMILES)
)
 P a g e | 58

FIGURE 9: TIME TAKEN FROM SOUTH KOREA (YEOSU)

16 14.5

14 12.5
12
SOUTH
12 KOREA
YEOSU
10
NO. OF
8
DAYS
6

(Y AXIS) 4

0
KOL MUM CHEN

MATERIALS COUNTRY FROM TO TO TO

KOLKATA MUMBAI CHENNAI

HIQUE332 SOUTH KOREA 12DAYS 4HRS 14DAYS 13HRS(4882 12DAYS (403NMILES)

(YEOSU) (4092NMILES) NMILES)

FIGURE10: TIME TAKEN FROM SPAIN

17.86
18 15.75
16 13.75
14
NO. OF 12
10
DAYS 8
6
(Y AXIS) 4
2
0
KOL MUM CHEN

SPAIN- BARCELONA

MATERIALS COUNTRY FROM TO KOLKATA TO TO

MUMBAI CHENNAI

METHYL ISO SPAIN (BARCELONA) 17DAYS 13DAYS 15DAYS

BUTYL 22HRS(6020NMIL 18HRS(4621NMILES) 18HRS(5295NMILES)
KETONE ES)

FIGURE 11: TIME TAKEN FROM SWEDEN

METERIAL COUNTRY KOLKATA MUMBAI CHENNAI

FROM
 P a g e | 59

BERMOCOLL EHM- SWEDEN 25DAYS 1 19DAYS 22DAYS (7392NMILES)

200 (LYSEKIL) HR(8416NMIL 24HRS(6719NMILES)
ES)

TRIMETHYLOLPROPA SWEDEN 25DAYS 1 19DAYS 22DAYS (7392NMILES)

NE (LYSEKIL) HR(8416NMIL 24HRS(6719NMILES)
ES)

25
25

24
SWEDEN-LYSENKIL
23
22
22
21
NO. OF
21
DAYS
20

19
KOL MUM CHEN

FIGURE 12: TIME TAKEN FROM TIWAN (TAICHUNG):

14 12.3

12 10 TIWAN -TAICHUNG
9.75
10
NO. OF
8
DAYS
6

4
(Y
AXIS)2
0
KOL MUM CHEN

METERIALS COUNTRY FROM KOLKATA CHENNAI MUMBAI

PARAFORMAL TIWAN (TAICHUNG) 9DAYS 22HRS 12DAYS 7 HRS 9DAYS 18HRS

DEHYDE92 (3334NMILES) (4124NMILES) (3278NMILES)
PCT

FIGURE 9: TIME TAKEN FROM THILAND

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9.5
10
9 7.2 7
8 THILAND
7 -BANGKOK
6
5
NO. OF4
DAYS 3
2
(Y
1
AXIS)
0
KOL MUM CHEN

METERIAL COUNTRY FROM KOLKATA MUMBAI CHENNAI

CRYLCOAT- THILAND 7DAYS 7HRS 9DAYS 15HRS 7DAYS 3HRS

2441 (BANGKOK) (2451NMILES) (3241NMILES) (2394NMILES)

EPOXY RESIN
EPOTECYD
127,
THILAND 7DAYS 7HRS 9DAYS 15HRS 7DAYS 3HRS
EPOXY RESIN (BANGKOK) (2451NMILES) (3241NMILES) (2394NMILES)
PROTECYD901
X75,

EPOXY RESIN
EPOTE YD 903

CRYLCOAT- THILAND 7DAYS 7HRS 9DAYS 15HRS 7DAYS 3HRS

1510 (BANGKOK) (2451NMILES) (3241NMILES) (2394NMILES)

FIGURE 11: TIME TAKEN FROM U.A.E:

 P a g e | 61

8.4
9
8 UAE- SHARJAH

7 6.2

6
NO. OF 5
DAYS 3.2
4
(Y AXIS) 3
2
1
0
KOL MUM CHEN

MATERIAL COUNTRY KOLKATA MUMBAI CHENNAI

FROM

UAE(SHARJAH) 8DAYS 10HRS 3DAYS 7HRS 6DAYS 6HRS

EPOXY RESIN (2832NMILES) (1105NMILES) (2107NMILES)

ZINC DUST STANDARD-7 UAE(SHARJAH) 8DAYS 10HRS 3DAYS 7HRS 6DAYS 6HRS
(2832NMILES) (1105NMILES) (2107NMILES)

FIGURE 15: TIME TAKEN FROM UK.

 P a g e | 62

22.7
25
20.5
18.5
20 UK-LONDON

15

NO. OF 10
DAYS
5
(Y
0
KOL MUM CHEN

MATERIALS FROM KOLKATA MUMBAI CHENNAI

COUNTRY

BENTONE-27,

MPA 60,

UK(LONDON 22DAYS 18HRS 18DAYS 20DAYS

BENTONE38, ) (7644NMILES) 14HRS(6245NMILES) 14HRS(6918NMILES)

BENTON"EW",

BENTONE
SD-2,

RHEOLATE-278,

BENTONE SD-3

FIGURE 6: TIME TAKEN FROM USA:

 P a g e | 63

35 32
28.7 29 29.8
28.5 27.8
30 26.7 26.5 26.5 26
24.5 24
25

20
NO. OF
15
DAYS

(Y AXIS) 10

0
KOL MUM CHEN

WILMINGTON SAN FRANSISCO PITTSBURGH NUYORK

METERIAL COUNTRY KOLKATA MUMBAI CHENNAI

FROM

RUTILE USA 28DAYS 17HRS 24DAYS 13HRS 26DAYS 13HRS

TI PURE (WILMINGTON) (9650NMILES) (8251NMILES) (8924NMILES)

26DAYS 18HRS 29DAYS 3HRS 26DAYS14HRS

TIXOGEL-MP USA (8990NMILES) (9780NMILES) (8933 NMILES)
(SAN
FRANCISCO)

USA 31DAYS 27DAYS 29DAYS 20HRS

CUMARR-29 (PITTSBURGH) 23HRS(10747NMIL 20HRS(9348NMILES) (10022NMILES)
ES)

USA(NEW 28DAYS 8HRS 24DAYS 4HRS 26DAYS 5HRS

TROYKYD D-666 JERSY) (9525 NMILES) (8127NMILES) (8800NMILES)
NEAREST PORT
NYK

FIGURE 17: TIME TAKEN FROM VIETNAM

 P a g e | 64

9
9
8 6.75 6.5
7
6
5
4
NO. 3
OF
2
DAYS
1
0
KOL MUM CHEN

HO CHI MING CITY

RAW COUNTRY TO KOLKATA TO MUMBAI TO CHENNAI

METERIAL FROM

GUM ROSIN "WW" GRADE VIETNAM 6DAYS 18HRS 9DAYS 2HRS 6DAYS 14HRS
(HO CHI (2267NMILES) (3056NMILES) (2210NMILES)
MINH CITY)

WORLD SEA ROUTES

P a g e | 65
 P a g e | 66

SEA TRADE ROUTES IN

INDIAN OCEAN

Custom Clearance Findings

Need for custom clearance:

 P a g e | 67

All goods imported in India have to pass through the procedure of customs clearance after they
enter Indian Borders. The goods are examined, appraised, assessed, evaluated and allowed to be
taken out after payment of custom duty. Since the entire process is complex the importers
usually take the help of clearing agents.

General procedure:

Custom clearance of sea consignments involves the following major steps:

1. Preparation of bill of entry :

on receipt of advice of arrival of the vessel, the importer or their agents are required to
present a bill of entry in the prescribed form. Bill of entry is of three types:

 bill of entry for home consumptions(white bill)

 bill of entry for warehousing (yellow bill)
 ex- bond bill of entry(green bill).

2. Noting of bill of entry :

The noting of bill of entry is filed with the import department of the customs house. The
noting clerk examines the paper and if found in order signs the bill of entry.

Note: the date of noting is important because the rate of duty applicable to the goods
would be the rate as in force on the date of noting except in case of warehouse goods
where the rate applicable would be that in force on the date of physical clearance.
“the bill of entry after noting is returned back to the importer.”

3. Submission of bill of entry for appraising of goods:

After noting the bill of entry is submitted to the receipt counter in the appraising
department along with the following necessary documents for Chemical composition
(in case of import of chemicals and allied products) products:
 P a g e | 68

1. Import license.
2. Exporters invoice
3. Original copy of bill of lading and its non negotiable copy .
4. Two copies of packing list
5. Manufactures test certificate.
6. Weight specification.
7. Certificate of origin.
8. Delivery order issued by shipping company or its agent.
9. Freight certificate (in case of F.O.B. consignment)
10. Insurance certificate (in case of F.O.B and C&F consignment).
11. Declaration from the importer of having paid no commission to agents of India.
12. Customs declaration.
13. Catalogue /drawing of the machinery/ equipment/ material or etc.

4. Passing of bill of entry:

The information /documents submitted by the importer along with bill of entry are
verified by the appraiser concerned who after necessary verifications and examination decides
the product classification and passes the assessment. The underlying objectives are to assess the
correct value of the custom duty.

Either of the following situations can arise:

a) If the information/ documents submitted by the importer is found to be adequate by the

appraiser for the acceptance of declared value and determination of the classification, he
may allow clearance of goods (i.e. clearing of licensing formalities, assessment and
payment of custom duty) prior to examination of the goods.
This procedure where assessment is completed and duty is recovered prior to
examination of goods is known as “second check procedure”.

b) If there is a doubt relating to classification (this being possible if the

information/documents is adequate to accept declared value and determine classification,
 P a g e | 69

the appraiser may raise a “query-memo” which is normal course is required to be

replied within 2 days.
The group appraiser may also issue examination order to the shed appraiser and decide
the product classification after receipt of examination report.
This procedure where assessment is completed and duty is recovered after examination
of goods is called “first check procedure”.

5. Licensing formalities:

Bill of entry (original and duplicate) is received in the license section for necessary debit
entry and for pre audit. Thereafter, duty is computed by computist and then returned to
importer for payment of duty in the accounts/ cash department.

6. Payment of custom duty:

All copies of bill of entry along with pay slip are submitted to the accounts section for
payment of duty. The following types of custom duties are levied on goods imported in
India.
A) Basic duty:

Basic duty is levied on all goods imported into India as prescribed in the First Schedule
of Customs Tariff Act, 1975. This schedule is amended from time to time to modify,
alter or vary the nature of duty. This duty can be levied either as a percentage of value of
goods or at a specified rate.
B) Auxiliary duty:

Auxiliary duty is levied in addition to the basic duty and is prescribed under the finance act
every year. However with effect 28.02.1993 the duty has been withdrawn after
restructuring and rationalizing the basic duty.

C) Countervailing duty or additional duty:

 P a g e | 70

This duty is levied equal to excise duty leviable on like articles produced or
manufactured in India. This duty is levied on total cost of imported goods

D) Specific duty: The duty is levied in order to counter balance the excise duty leviable on
the imports going into the production of such goods produced in the country.

All copies of bill of entry along with pay slip are submitted to the accounts section for payment
of duty. A stamp is affixed on all copies of bill of entry as proof of having paid the duty.

7. Examination of goods and delivery from port:

After recovery of duty, all copies of bill of entry except the original (original is retained in the
accounts section) are returned to the importer for getting the goods examined in the docks (in
case of second check examination). In the docks shed appraiser/ examiner shall examine goods
and if in order shall give the out of charge for taking the delivery from port trust (custodian of
goods) after payment of port trust charges.

LEAD TIME:
 P a g e | 71

Here lead time means total time which is considered approximately for the raw materials to get
clearance from customs.

Here while calculating lead time one thing is kept in mind that if any delay occurs while
submitting the following documents then delay time gets added with the lead time causing a
high lead time which eventually effects the production.

So, delay occurs if the following papers are not submitted on time: D2
1. Import license.
2. Exporters invoice
3. Copy of letter of credit
4. Original copy of bill of lading and its non negotiable copy .
5. Two copies of packing list
6. Manufactures test certificate.
7. Weight specification.
8. Certificate of origin.
9. Delivery order issued by shipping company or its agent.
10. Freight certificate (in case of F.O.B. consignment)
11. Insurance certificate (in case of F.O.B and C&F consignment).
12. Declaration from the importer of having paid no commission to agents of India.
13. Customs declaration.
14. Catalogue /drawing of the machinery/ equipment/ material or etc.

Custom clearance analysis

 P a g e | 72

In the above page the details of information of custom clearance which were found while
visiting the custom clearance office and meeting the officers are given and from that an analysis
was done through a flowchart which gives a step by step clear picture, how the paper work is
done and the parameters through which a scrutiny is done on the imported goods. And after
clearing the formalities the goods are submitted to the clearing agents who deliver the goods to
the warehouses.

FLOWCHART EXPLANATION:

START

Preparation of Bill- of-Entry

Noting of bill of entry

Verification of bill of
entry by the appraiser

Appraiser accepted
value/description etc??

YES

2.
1
 P a g e | 73
1 2.
3.

Goods examined earlier

Inspection of goods
(first check)?
(first check)

Passing of
N
bill-of-entry
Examination
Licensing of goods by
YES
formalities appraiser (2nd
check)
Payment of port
Computation of duty trust charges

Typing of duty on Bill-

Delivery from Port
of-Entry on perforated
typewriter Trust

Audit of Bill-of-Entry STOP

by internal audit

Scrutiny by licensing
department

Assistant Collector’s
signature

Payment of duty

3
.
 P a g e | 74

Findings: on WAREHOUSE

WARE HOUSE:

A Warehouse is a commercial building for storage of goods. Warehouses are used by

manufactures, importers, exporters, wholesalers, transport businesses, customs, etc. they
are usually large lain buildings in industrial areas of cities and towns. They usually have
loading docks to load and unload goods from trucks. Sometimes warehouses load and
unload goods directly from railways, airports, or seaports. They often have cranes and
forklifts for moving goods, which are usually placed on ISO standard pallets loaded into
pallet racks.

WARE HOUSING CHARGES:

After visiting certain ware housing agencies, following details were found,

Wear housing rates are calculated according to certain parameters:

1. Storage charges.

2. Cargo unloading charges. . (Each packet/piece weighing within 3 MT)

3. Cargo loading charges. (Each packet/piece weighing within 3 MT)

4. Insurance recovery.

Payment parameters :

Bills are raised on fortnight basis and to be settled within 5days of submission
thereof. In case payments are released beyond 15days of submission, interest @11%
shall be recovered.
 P a g e | 75

LEAD TIME OF WAREHOUSE:

Here lead time means total time which is considered approximately for the raw materials to

reach the warehouse for storing of materials and time taken to upload the raw materials in trucks

for further transport to the plant.

Here while calculating lead time one thing is kept in mind that if any delay occurs while

unloading the raw materials in the warehouses and/or loading the raw materials back to the truck

for further transportation to the plant then delay time gets added with the lead time causing a

high lead time which eventually effects the production.

D3 & D4
So, Possibilities for delay :

1. No availability of proper transport (trucks, tankers or/and tailors) from port to the

warehouses.

2. No availability of manual labours who will unload the materials into the warehouse.

3. No availability of proper instruments like forklift, shaft cranes to place the materials at a

safe place.

4. Non submission of papers and payments before uploading the materials back to the truck

for further transportation to the plant.

5. No availability of labours for uploading the materials to the truck for further

transportation to the plant.

6. No availability of proper road transport which will transport the material to the plant.
 P a g e | 76

COST ANALYSIS OF WAREHOUSES

From the above parameters of ware housing charges the cost analysis of the following ware
houses were done :

1. Tiwari Warehousing Company.

2. Syndot Packers & Movers.
3. Balmer Lawrie & Co. ( Used by Berger Paints for storing Raw materials)
4. A S Syndicate Pvt. Ltd.

Storage charges : Storage charges are considered as amount in Rupees per square feet
per month:

28
30
23.5
25 22
20
20 STORAGE CHARGES
in Rs. ( PER
15 SQ.FEET/MONTH)

10

0
 P a g e | 77

Cargo loading and unloading charges : Cargo loading and unloading charges are
considered as amount in Rupees per Metric- ton:

97
97
96 95 95
95
94
Cargo
93 92 loading &
92 unloading
charges(R
91 s.)
90
89

Insurance recovery charges: The insurance charges are given by the ware housing
company over the goods kept in their custody and is charged as Rupees per kg per day
of cargo value:

1.5 1.5 1.5 1.5

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

Insurance recovery charges(Rs. 1.5/kg/day of cargo value)

NOTE: Insurance recovery is Rs.1.5 per kg per day of cargo value for all the companies.
 P a g e | 78

Cost analysis of different warehouses:

SERIAL NO. CARGO CARGO INSURANCE

COMPANY NAME ADDRESS STORAGE LOADING UNLOADING RECOVERY
CHARGES CHARGES CHARGES

Tewari Jani Kunj Hode 28/- PER sq. Rs.95 per Rs.1.5 per kg
1. Shed Dump Rs.95 per
Warehousing feet/ month MT MT per day of cargo
Road , Brace
company value
Bridge Road ,
Kolkata -88.

Syndot Packers Syndot Packers 20-23/- PER Rs.97 per Rs.97 per Rs.1.5 per kg per
2. & Movers & Movers Sq.feet MT MT day of cargo
3657 , Jyothi
/month value
Roy Road New
Alipore, Kolkata ( AS PER
THE
GOODS)

Balmer lawrie P-3/1 Transport 20/- PER Rs.95 per Rs.95 per Rs.1.5 per kg per
3. and co. ltd Depo Road sq.feet/ MT MT day of cargo
Kolkata - 88
month value

A S Syndicate 23C, Ahiripukur 23.5/- PER Rs.92 per Rs.92 per Rs.1.5 per kg per
4. (Ware Housing) 1st Lane, sq.feet/ MT MT day of cargo
Pvt Ltd Ballygunge,
month (Negotiable) (Negotiable ) value
Kolkata,
700019
 P a g e | 79

FINDING: Inbound logistics Lead time – Port to Plant.

LEAD TIME:

Here lead time means total time which is considered approximately for the raw materials

to reach from supplier works to plant via road ways.

While calculating the lead time some points are taken into consideration:

1. Availability of proper transport: This means availability of trucks of proper size and in

proper condition so that the raw materials can reach the destination in the exact form as

required.

2. Availability of proper labor: This means availability of proper manpower to upload

(while in port) and unload (while in plant) the raw materials.

3. Delay in delivery: Delay in delivery can happen due to many reasons: D5&D6

Unavailability of proper transport.

Unavailability of proper labor to upload the goods in the vehicles.

Natural calamities.( flood, storm, earthquake, landslide and etc.).

Man made calamities.( strike, rallies , road blockage, accident of other vehicles and etc.).

Vehicle mishap: accident, break down , tire puncher and etc.).

Road jam.

Delay after reaching the plant while unloading the materials from the truck and storing

the materials in the plant. Which is mainly caused due to un availability of labours for

unloading .
 P a g e | 80

4.Normal delay: this delay is considered as the time taken by the driver and his helper for

their rest and food. According to the truck drivers of various road transportation agencies:

In a whole day (24 hours):

Time allotted for food (4 times a day) and refreshing: 4hrs (approx).

Time allotted for sleep and rest: 6 hrs.(approx).

Total hours of driving each day: 24-(4+6) = 14 hrs a day.

 Transit time : Here transit time is calculated as the exact time it takes for the raw

materials to reach the plant , by considering the exact total distance between the port and

the plant and then dividing it by the approximate speed of the vehicle (which is taken as

30kmph in this analysis.).

 P a g e | 81

Analysis: Inbound logistics Lead time - Port to Plant.

FROM MUMBAI PORT:

8 8 8
8
7 6
6
4.5
5 4
4 3
2.5 2.5
3 2 2.1 2.1
1.5
2
1 0.2
0

LEAD TIME (DAYS) TRANSIT TIME (DAYS)

FROM PORT TO PLANT DISTANCE LEAD TIME TRANSIT TIME AVG SPEED
(FACTORY) IN Km.

MUMBAI PORT PONDA (GOA) 344Kms 4 DAYS 15HRS 30KMPH

MUMBAI PORT JAMMU(J&K) 1582KMS 8 DAYS 60 HRS(2.5 30KMPH

DAYS APPROX)

MUMBAI PORT VIDYA VALLABH 447Kms. 2DAYS 20HRS( 1 DAY 30KMPH

NAGAR APPROX)
( GUJRAT)

MUMBAI PORT DEVLA (U.P.) 1220Kms 6 DAYS 48HRS( 2DAYS 30KMPH

APPROX)

MUMBAI PORT PONDICHERRY 1073Kms 5 DAYS 36HRS ( 1.5 30KMPH

DAYS APPROX)

MUMBAI PORT HOWRAH( WEST 1691Kms 8DAYS 57HRS( 2.5DAY 30KMPH

BENGAL) S APPROX)

MUMBAI PORT RISHRA (WEST 1695Kms 8 DAYS 57HRS( 2.5DAY 30KMPH

BENGAL) S APPROX)
 P a g e | 82

FROM KOLKATA PORT:

7 7
7 6 6
6 5
5
3.5
4 3 3
2.5
3 2 2 2
2
1 0.04 0.04
0

LEAD TIME (DAYS) TRANSIT TIME (DAYS)

FROM PORT TO PLANT DISTANCE LEAD TIME TRANSIT AVG SPEED

(FACTORY) IN Km. TIME

KOLKATA PORT PONDA (GOA) 1756kms 8 DAYS 58HRS 30KMPH

(3 DAYS
APPROX)

KOLKATA PORT JAMMU(J&K) 1775kms 8 DAYS 60HRS 30KMPH

( 3.5DAYS
APPROX)

KOLKATA PORT VALLABH VIDYA 1574kms 7 DAYS 53HRS 30KMPH

NAGAR (3DAYS
( GUJRAT) APPROX)

KOLKATA PORT DEVLA (U.P.) 1226kms 6 DAYS 41HRS 30KMPH

(2DAYS
APPROX)

KOLKATA PORT PONDICHERRY 1465kms 7 DAYS 49HRS 30KMPH

( 2.5DAYS
APPROX)

KOLKATA PORT HOWRAH( West 22Kms 2 DAYS 1 HR 30KMPH

Bengal)

KOLKATA PORT RISHRA (WEST 19Kms 2 DAYS 1 HR 30KMPH

BENGAL)
 P a g e | 83

FROM CHENNAI PORT:

2
1.8
1.6
1.4
1.2
1
0.8
0.6 0.2
0.4
0.2
0
PONDICHERRY

LEAD TIME (DAYS) TRANSIT TIME (DAYS)

FROM PORT TO PLANT DISTANCE LEAD TIME TRANSIT AVG SPEED

(FACTORY) IN Km. TIME

CHENNAI PONDICHERRY 134KMS 2 DAYS 5 HRS 30KMPH

PORT

NOTE: FROM CHENNAI PORT GOODS ARE ONLY SUPPLIED TO PONDICHARY PLANT.
 P a g e | 84

ROAD MAP FROM PORT TO PLANT

FROM
BOMBAY
PLANT
FROM
CHENNAI PORT
FROM
KOLKATA
 P a g e | 85

TOTAL TIME ANALYSIS

CURRENT SENARIO :

SOURCE PORT
PLANT
D6

D1
UNDER SHIPPING
AGENT

D5
DESTINATION PORT

D2 UNDER CUSTOMS UNDER ROAD

CLEARANCE TRANSPOTATION
AGENT AGENT

CUSTOMS
FROM
INSPECTION
BOMBAY

UNDER
WAREHOUSING
D3 AGENT

WARE HOUSE

D4
 P a g e | 86

Here the above chart is an O &M Chart where:

D DELAY TIME Agents involved

D1 Delay caused during UNDER SHIPPING

AGENT
shipping of the raw materials

D2 Delay caused during custom UNDER CUSTOMS

clearance of raw material CLEARANCE AGENT

Delay caused during UNDER

D3 unloading raw materials in WAREHOUSING
warehouse. AGENT

Delay caused during UNDER

D4
uploading raw materials from WAREHOUSING
warehouse into trucks for AGENT
transporting it to plant.

D5 Delay caused during UNDER ROAD

TRANSPOTATION
transporting the raw materials
AGENT
through road transport from
warehouse to plant.

Delay caused while unloading UNDER ROAD

D6 the raw materials from truck TRANSPOTATION
AGENT
into the stores of BPIL plant.

TOTAL = D1 + D2 + D3 + D4 + D5 + D6
DELAY
(D)
 P a g e | 87

 From the above scenario we can see that there are 6 different kinds of delay which slows

down the process of reaching the material from source to destination.

 Here there is an involvement of 4 different agents under whose guidance the material

reaches from the source to destination.

 If one the four agents fails to run the process smoothly then the delay time increases by a

huge margin gradually effecting the production of paint.

 The major cause of these delay is due to lack of synchronization between all the four

agents , i.e. if one fails to deliver on time then all the other 3 gets effected.

 Now on the costing point of view, each of the four agencies has to be paid a certain

amount as their carrying cost or storing cost which comes to 20-25% on total cost of the

material for the whole process.

 Hence a total of 20-25% of total cost of material is spent on its transportation but still

efficiency is not up to the par.

COST OF = CHARGE OF + CHARGES+UNDER + CHARGES +

SHIPPING AGENT CUSTOMS UNDER
IMPORT CLEARANCE WAREHOUSING
AGENT AGENT

CHARGES
UNDER ROAD = 20-25% OF TOTAL COST
TRANSPOTATIO
N AGENT OF MATERIALS.
 P a g e | 88

RECOMMENDATION

SUGGESTIVE SENARIO: CURRENT SENARIO:

SOURCE PORT
SOURCE PORT

D6
UNDER SHIPPING
d1 D1 AGENT

d5 DESTINATION
DESTINATION UNDER ONE PORT
PORT INTERNATIONA
L AGENT
UNDER CUSTOMS
D2
CLEARANCE
AGENT

CUSTOMS
CUSTOMS INSPECTION
INSPECTION D5

UNDER
D3
WAREHOUSING
AGENT

WARE HOUSE WARE HOUSE

UNDER ROAD
D4
TRANSPOTATION
AGENT
 P a g e | 89

Here the above chart is a recommended Operation &Management Chart where:

d REDUCED DELAY TIME Agents involved

Reduced Delay during

d1
shipping of the raw materials

- Delay during custom clearance

of raw material can be nullified

- Delay during unloading raw

materials in warehouse can
be nullified.
UNDER ONE
Reduced Delay during
INTERNATIONAL
- AGENT
loading raw materials from
warehouse into trucks for
transporting it to plant which
can be nullified.

d5 Reduced Delay during

transporting the raw materials
through road transport from
warehouse to plant.

- Reduced Delay during

unloading the raw materials
from truck into the stores of
BPIL plant which can be
nullified.
TOTAL = d1 + - + - + - + d5 + -
DELAY(d)

THE ACCOUNTABILITY ON SINGLE AGENT OFFER BETTER

CONTROL
 P a g e | 90

SO UNDER AN INTERNATIONAL AGENT:

Recommendation to reduce delay

 Delay during custom clearance of raw material can be nullified as it will be under
one agency hence all the paper submission and submission of bill of entry will be
on time hence there will be no delay during custom clearance.
 Delay during unloading raw materials in warehouse can be nullified as here the
transporter of the materials from port to warehouse and the warehouse personal
are under the same agency hence synchronization and efficiency of time will be
maximum without any delay.
 And same during loading goods from warehouse as under one organization hence
arrangement of transportation and labour for uploading will be done by one unit
without any hindrance.
 Unloading of goods from trucks to the plant will be done by labours arranged by
the International agent so the delay can be nullified.

TOTAL D1 D2 D3 D4 D5 D6
DELAYTIME (D) = + + + + +

WILL BE REDUCED TO

TOTAL
REDUCED d1 - - - d5 -
= + + + + +
DELAY TIME (d)

Fig: Showing reduced delay

 P a g e | 91

Recommendation to reduce cost

 Now on the costing point of view, with one International agent the carrying cost and
storing cost will come to 10-15% (max) of total cost of the material for the whole
process.
 Hence a total cost can be reduced from 20-25% to 10-15% with efficiency up to the
par.

COST OF = 20-25% OF TOTAL COST OF

IMPORTATION MATERIALS.

WILL BE REDUCED TO

REDUCED COST
10-15% OF TOTAL COST OF
OF = MATERIALS.
IMPORTATION

10% OF TOTAL COST OF

SAVINGS OF
TOTAL
= MATERIALS.

Fig: Showing reduced cost.

 P a g e | 92

Conclusion

In these 2 months project collecting data from different types of agencies and finding out total

lead time was my work and obviously I had to face some resistance in the way. But I have

managed to counter the resistance and this project was a great experience for me. It has given

me the opportunity to get exposure in the world of Supply chain and Logistics. There were many

tough moments that I had to face regarding communication. But, at the end of the project I have

to admit that these difficulties have made me much more efficient. The whole system of the

company has helped me a great deal and this was the best part of the project.

All in all, it was a real great exposure for me. For a fresher like me, it has given me a

huge opportunity to showcase my endowment and ability to work as a professional which has

always been an ambition for me. Working for one of the leading paint company of India, Berger

Paints India Ltd, has given me the apprehension of how to go about in an organization and also

it has given me ability to over view problems as opportunities to find out innovative and

profitable solutions.
 P a g e | 93

REFERENCES

Bibliography:

Supply Chain and Logistic Management – Donald.J Bowersox , David J. Closs.

Purchase Management- Prof. L.C. Jhamb.

Production and Operations management – Prof. S.N Chari.

Web Help:-

www.shippingrates.com

www.bergerpaints.com.

www.globalsupplychain.com.

www.wikepedia.com.
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ANNEXURE

INTERIOR WALL COATING

ENAMEL
FINISH

WOOD FINISH

EXTERIOR WALL COATINGS

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