2

DOON BUSINESS SCHOOL

A PROJECT REPORT
ON

STUDY of EXPORTS of CHEMICAL PRODUCTS by

SCM
WITH REFERENCE TO
AMI Global

UTTRAKHAND TECHNICAL UNIVERSITY

DEHRADUN

KRIPESH KRISHNAN
190360500083

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ACKNOWLEDGEMENT
I take this opportunity to thank Mr. K Krishnan (Assist Manager) of AMI
Global, Delhi who help me to understand the ins and outs of the SUPPLY
CHAIN MANAGEMENT and guided me throughout this live project.
Thanks to my faculty guide Prof. Himanshu Chauhan who has always been
there to take on a discussion and clarify my doubts.
I would also thank all those people who directly or indirectly helped me to do
my live project.

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TABLE OF CONTENTS

S No. TOPIC Page No.

1 Objectives 4

2 Executive Summary 5

3 Introduction to topic 8

4 Company Profile 11

5 Porter’s Five Forces Model For Logistics Industry 17

6 SWOT Analysis 20

7 About the Project 21

8 Research Methodology 25

9 Data Collection & Analysis 29

10 Findings 39

11 Suggestion & Recommendation 40

12 Bibliography 42

13 Annexure 43

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OBJECTIVES of the PROJECT

 The objective of this study is to study about the intensity of the export of
these chemical products in USA and Africa as this is a very important
part of the LOGISTICS epically at this COVID-19 situation where these
is the huge amount of exports of pharmaceutical and other chemical that
are used as vaccines and for other needs as well. This project emphasis
the export of these chemical products of to USA and Africa as these are
the 2 countries that has the most shipment done for, not only chemicals
but also other materials are also been exported to these countries so
selecting these 2 countries will help me in analysing the intensity of
chemical products in this Logistics world as well as make me understand
the need of Supply Chain Management in the world of logistics. So, the
main objective behind this live project is to better understand the Supply
Chain Management and the intensity of exporting chemical products in
USA and Africa.

 To know about the various freight forwarder and shippers and what do
they prefer and what is the way of their business and their preference and
what is their desired place of exports and their intensity of exports in
other countries.

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EXECUTIVE SUMMARY

It is not possible for a country to fulfil all its basic necessities. Our ancestors knew this very
well, this led to bartering and many more innovations took place at this time. One out of the
big discoveries was lighting up the fire which changed the life of a society. Their demands
forced them to go beyond boundaries and take the benefit of comparative advantage. In 1498
Vasco De Gama discovered India's new route for business purposes. After that we connected
in a new way to the world. It was also a very important Discovery for our relationship with
the outside world that opened up new ways to us as well as other countries. All these
exchanges for international business created a demand for the logistics industry. 

With the entrance of big players like UTI, All Cargo and Team Global a new trend in the
logistics market that causes mergers or joint ventures. These days there are many
international players with the speciality and reliability, which are serving Indian Industries:
exports and imports both the ways. With the entrance of these big players competitiveness
has increased to its full swing, resulting a cost cutting and innovative ways in the industry.
These days almost all the big players have their own CHA (customs house agent),
Warehouse, ICD’s (Inland Container Depot) and all means of transportations.

AMI Global Logistics have its own place in the market that provide excellence in the field of
logistics solutions, supply chain management and various other value-added services. The
objective of making this report is to study the Exporters of Chemical products from Delhi
NCR who exports their shipment in USA and African Countries and identify the scope for
promotion, establishing a brand image and expansion of the present share market of AMI
Global. The methodology followed to meet this objective is to take a business appointment
from the shippers and meet them personally and jot down the necessary information in the
notebook and later on fill up the questionnaire. During all this process we have to keep in
mind about the promotion of AMI to the Exporters.

The result of this study shows that AMI in Delhi is not among the top players
though the services and customer satisfaction is very good. AMI has enough
efficiency to explore in functionality but it lags due to number of logistic
companies which have tie ups with manufacturer or have nominations with third
party for their mutual benefits. One suggestion I would like to add here is that
AMI should explore its offices in USA as it is second largest Importer as per the
study and most of the imports in USA is done with the nomination system.

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INTRODUCTION TO TOPIC
The meaning of logistics is the full synchronisation of a complex operation involving many
people, facilities or supplies. Logistics is concerned in many different things and is used by
many different people.

The purpose of any logistics operation is to move a particular product or service from
supplier to customer- this path is called the supply chain management and it needs to keep
moving in order for goods to reach its destination at the right time. Logistics managers play a
significant role in all of this, they deal with a large range of people including suppliers,
retailers, manufacturers and consumers.

The Global Chemical Industry in 2017, the U.S. chemical industry had final sales
exceeding $765 billion and directly employed more than 529,000 workers, with
additional indirect employment by industry suppliers of more than 1.8 million.
Total FDI in the industry passed $700 billion in 2017. According to Moody’s
investors Service, the sector outlook for the chemical industry in both North
America and Europe has changed from negative to stable. This stable industry
sector outlook reflects a broad improvement in industrial demand across these
regions since early 2009, and chemical buyers are appearing to be more open to
price increases now than they were a year ago.

A strong export market has also boosted sales for chemical producers in the US
and Europe, with strong demand in Asia and Latin America. Capacity additions
in Asia and the Middle East have also proved to be slower than expected. US

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exporters are likely to gain from a relatively weak dollar, while European
exporters must content with higher input costs and the need to rationalize
production further.

Major items imported into India are Arts & Craft , Machineries & Parts, Fertilizers Allied,
Raw wool, Transport Equipment, Aircraft Spare Parts, Textiles, thread, office equipment,
cattle feed, stationary, electrical goods, medicine Medical equipment, electronic goods, Steel
rod and sheets, billets, M.S. wire rods, industrial raw materials, polythene granules, jackets,
PVC compound, telecommunication equipment, soybean oil, palm oil, milk powder and
condensed, spices, POL products, textile dyes, gold, silver, video, leather products, television
part, light equipment , garments, industrial Chemicals, computer parts. 

India's major export items are live animals, leather chemical, Textiles, readymade garments,
ready cotton frock cotton, red, fruits, vegetables, confectionery and Bakery product, milk
product, soap and detergent, coffee, tea, cumin seeds and Pepper, absorbers, salt, sugar, rice,
Raisin, pulses, tobacco, Pharmaceutical, petrochemical, Beedi leaves, textile Chemicals,
enamel and other Paints, organic solvent, cement, paint, Pipe and pipe fittings, sanitary
wares, electrical equipment, medicines, writing and printing papers, books and magazines,
cosmetic good, seafood, chemical fertilizers , insecticides, dyes and colour additive, hand
tools, Agri equipment and parts, vehicles and spare parts, coal, machinery and parts, glass
sheet and glassware.

Dyes & Dye Intermediates/ Pigments / Optical Brightener

Dyestuff industry comprises of 3 key constituents, namely, dyestuffs, pigments and
intermediates, The Indian dye and dye intermediates market is expected to grow at a CAGR
of 6.3% from 700,000 Tonnes in FY’07 to 1,200,000 Tonnes in FY’15 on account of strong
growth in the end use segments. The main end use segments for these products are textiles,
paper and leather industries which together for – 88% of the total demand.

Organic Chemical
Organic chemical is one of the important sectors of the Indian chemical industry. It
has played a vital role by providing chemicals and intermediates as input to other
industrial sectors like paints, adhesives, pharmaceuticals, dye stuff and
intermediates, leather chemicals and pesticides. Global production of organic
chemicals are around 400Mn Metric tonnes per annum. Production was just 15 Mn
metric tonnes fifty years back.
Major producers of organic chemicals are USA, Germany, UK, Japan, China and
India. Few Latin American countries such as Brazil and Chile are increasing them
presence in global organic chemicals market.
There are important numerous varieties of organic chemicals. The chart below
Shows select organic chemicals manufactured and exported from India. Availability
of natural gas for use as feedstock is a critical PART OF THE ENTIRE
PRODUCTION,
Formaldehyde and acetic acid are important methanol derivatives and
are used in numerous industrial applications. Phenol is an aromatic
compound and derived from Cumene, a benzene and propylene derivative

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Inorganic Chemical
The majority of inorganic Chemicals are derived from materials in the earth crust such as
minerals, metal and salt. the main drivers in exports are sulphuric acid, carbon black,
phosphoric acid, antioxidants for rubber, sulphates, chlorides etc. the main drivers in organic
Chemicals are sulfuric acid, carbon black, phosphoric acid, antioxidants for rubber and other
sulphate that is Peroxosulphates.

Exporting is the main concern for most of the firms in today's economy.
 Whether to export or not?
 Where to and how to?

These are the major questions for companies willing to expand their International markets.
export marketing is not just a method to find buyers, public importers and approach them
with the Expectations of export orders what are well planned strategic marketing processes
one should follow and performed well to get success in international market. since last 10
years of international market India, we can see that major export marketing efforts get field
due to lack of implementing strategic marketing Action Plan. so, what is the strategic
marketing Action Plan?

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 Strategic marketing action plan is a set of functional areas of export marketing which should
be performed well and followed step by step to get success added in export marketing.
performing following tasks step by step will give you a rapid success in export marketing
with sustainable and profitable export growth sales growth.

 Step-1: - Identify your target market

 first step of export marketing is to see target market and market needs where your product,
services have good market potential and demand. India is developing country and their 4 all
the developed countries a much aware about the harmful impact of chemical Industries waste.
the environmental rules and regulations in these countries are very strong. therefore,
developed countries import such product which have hazardous effect during manufacturing
process. on the other hand, raw material required in manufacturing of such products, is
exported from India as India has good natural resources. in this way the topic, STUDY of
EXPORTS of CHEMICAL PRODUCTS by SCM justify itself in the field of logistics
industry.

Step-2: - Developing export marketing strategies

 second step of export marketing is to build up right export marketing strategies, positioning
strategy, product strategy, pricing strategy, branding strategy, supply strategy and
promotional strategy according to target market needs. MI Global provide all basic solutions
to logistics such as FCL (full container loaded), LCL (loose container loaded), air freight,
supply chain management etc. to attract its customers. It has 7 branches within India and
approx. 8-10 agents worldwide, to handle the shipment in a more sufficient way.

Step- 3: - Preparing market communication tools

 steps to prepare informative and appealing Marketing Communication tools like sales letter,
product catalogue Soma company profile, website approaches that can support in positioning
and promoting your company. it is very important tool to grow a business in an appropriate
way to stop use of modern technologies is very common in today's competitive world so that
supplies visit the webpage to know various information regarding to the shipments.

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 Step-4: - Promotion
 after that the step is promotion which plays a major role in export marketing success main
objective of promotion is to build awareness among buyers, importers and exporters of what
you are and what you offer. sales team comes into action in this stage. the quality of
Salesforce justifies the quality of promotion among buyers, exporters.

Step-5: - Export Enquiries

 Salesforce come into action now. exporters need enquiries about the comparative rate for a
particular place. success in export marketing begins with generating genuine export enquiry
from prospective buyers, importers which requires expertise and focused work of promotion,
Sourcing genuine buyers and approaching them professionally. 

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COMPANY PROFILE
Company Background
(From the Company website Itself www.amilogistics.com )

AMI GLOBAL Logistics is an emerging leader in logistic solution and evolved as a dynamic

MTO operator over last two decades.
Incorporated in 1995, it already carved a niche for itself in freight forwarding, total logistics,
and a complete end-to-end Logistic Solutions. It provides the best workplace to the
employees, with the best of resources, global clientele and focuses on quality service. It is
embarked on the mission to be a top-ranking company in India.
We believe in working with our customers as a value adding stakeholder in the long term.
Over the last 2 decades, we have evolved to meet the dynamic needs of our customers with
our passion for adding value to our customers focuses on excellence, fundamental
understanding about service delivery.
We meet the changing needs of the trade through:

As a Logistic service provider, we have developed competencies in designing customized

service offering to cater entire logistics needs of our customers. We work closely with our
customers to understand and design integrated service modules that create positive and
tangible results in their supply chain and adds value to their core business. Our innovative use
of technology brings transparency in the end to end supply chain of customers business.
At AMI GLOBAL, we are professionally geared to enhance convenience for our customers.
We believe in partnering with our customers over the long haul. Our focus has always been
on selling value and building long term relationships. To provide a single point of contact
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and to render seamless service delivery to customers, over the years we have developed
synergies with each link of customers’ supply chain.
AMI GLOBAL constitutes of a team of logistics professionals with astute knowledge of the
trade and the nuances of effective supply chain management. Our passion for logistics has
attracted some of the best-known talents in the industry, especially at a juncture when there is
a shortage of experienced and skilled personnel within the logistics domain.
AMI GLOBAL is registered with the Director General of Shipping in India as a licensed
Multimodal Transport Operator which allows us to be innovative on the “last mile
connectivity” such that, our customers’ can now move away from the “one size fits all”
option and actually customize their transport options to be more efficient both in terms of the
time and cost.
Our global presence has opened up an international platform for our customers in India. By
being accessible in India through 9 offices in India and associate offices spread across
the globe, we are never out of reach.

Management Team

PADMA LAL
Managing Director
Mrs Lal is successfully handling position of M.D. at AMI since last twenty-two years and is
deeply involved in the overall growth of the Company. She has done her graduation in
Statistics and Economics from Mumbai University with first class and has further completed
her Masters in Arts and in Economics with Econometrics and mathematical economics and
also Masters in Philosophy.

PRAVIN MHATRE
Chief Operations Officer
Mr. Pravin Mhatre is a veteran shipping professional with 4 decades of experience in the
fields of Chartering, Post Fixture, Liner Agency, and Freight Forwarding. In past, he held a
senior management position in various renowned shipping lines.
He had the good fortune to work with Indian and Overseas ship owners and travelled
extensively around the world for business development activities. He holds degrees in
Economics, Law, and Management. He is a fellow of Narottam Morarjee Institute of
Shipping.
Presently, he spearheading the Freight Forwarding and Logistics division with thrust on
developing Long-term Strategy and growth in new verticals.

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MOHAN GUPTA
Chief Finance Officer
Mr. Mohan Kumar Gupta is associated with AMI from 2002. With over two decades of
experience in finance management, he has played a major role in the success of AMI growth
story by handling finance in the best way during ups and down of world economies. He has
successfully managed the finance of Agency business of AMI operated by its subsidiary Hi-
Tos from 2003-2008. He played an important role in the implementation of In-house web-
based Business software on all India basis for all the business needs.
Even though Logistics need huge working capital for its operation, with his extensive
experience in Finance and efficient cash flow management, he is successful in making AMI a
debt free company. His internal control systems and monitoring procedures have protected
AMI from any adversity in financial markets.
After completing C.A. from Institute of Chartered Accountants of India and C.S. from
Institute of Company Secretaries of India, he started his career as Assistance Manager in
Jindal Iron and Steel Co. Ltd., Mumbai in 1998. He worked as Finance Manager in a
construction Company in Muscat, Oman for a year before joining AMI in 2002.

PADMANABHA KOTIAN
General Manager – Documentation & Operations
Mr. Padmanabha Kotian is associated with AMI. Since 2008. He has over 38 years’
experience in the shipping industry and has mastered all finer nuances of the trade. He has in-
depth knowledge of Import and Export Documentation, Claims and legal issues. He is
specialized in coordinating with Government and Semi-Government agencies like Central
Excise, Customs, Port Authorities etc. He has successfully managed the shipping activities
of AMI operated by its subsidiary Hi-Toss Liner Agency from 2006-2008. He played an
important role in handling all legal and claims activities on all India basis for the business
needs.
Even though Logistics need extensive endowment for its operations, he drives costs savings
with a focus on Visibility, Variability, and Velocity. However, with his extensive experience
in Operations management, he is successful in making AMI a process driven the company.
His internal control systems and monitoring procedures have protected AMI from any
adversity in shipping guild.
He is Commerce graduate from Mumbai University and started his career in Documentation
with insight and carried the know-how for 11 years with Intermodal Transport & Trading and
Samrat Shipping in Mumbai. He was also bonded with Safmarine India since its outset in
India with enormous background and maturity heading Documentations and Claims ensuring
proper compliance and adherence to all appropriate regulations.

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VISION
Our vision is to be a “Global Logistics & Supply Chain Management Solutions Provider with
Value, Excellence, and Delivery forming the cornerstones of our business”
MISSION
AMI mission is to be the leading Logistics & Supply Chain Management Service Provider in
the industry by offering innovative, cost effective and quality solutions tailor-made to each
customer’s supply chain requirements.
The entire organization is bound by a common thread –commitment to meeting the evolving
needs of our customer and growing alongside our customers.

Organizational Structure

Product Line and Value Chain

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 Full Container Load

FCL is our best transit time to cost combination product for full container loads FCL
imports and exports, both products offer features like schedule flexibility, frequency
of selling per port-pair, reach to remote inland destinations and availability of
equipment. We are Masters in FCL movements. Whether it is exports from India for
imports to be handled both equally professionally. competitive freight rates, show
space, guaranteed connection at transhipment points are some of the keyboard
effects. 

 Less Than Container Load

A comparatively priced LCL exports and LCL imports of a schedule integrity, reliable
performance, lower supply chain cost and complete visibility throughout the supply
chain pipeline. We are one of the leading LCL consolidators. From India we offer this
parcel service to worldwide locations, including even to remote locations in Central
Africa. We also bring in your LCL parcels from worldwide locations and give
deliveries write up to the consignee's doors. This service can be also offered in
combination with other services like air flight or road transport to offer faster delivery
time. 

 Break Bulk and Project Shipments

Break bulk is a special product for oversized loads which needs special equipment or
those unsuitable for container loading. For example, for Complex projects we assign a
dedicated team of Technical experts with the experience and resources to match your
exact requirements. It starts from understanding your logistics needs, analysing cargo
sizes, shape, deciding and planning of a complete project and executing it as planned.
It's a complicated process with our experts simplified completely as a solution for
you.

 Air Freight
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 Our global air flight services, combined with Road feeder service or Ocean freight
connections, offer you door to door delivery anywhere in the world. This product is
unique by itself because of immediate, all-inclusive price calculations, time defined
delivery promise and shipment visibility. One of the best air flight rates, offering of
various cost vs delivery schedule options are some of the key benefits.

 Supply Chain Management

 Our experience of air freight and ocean freight, combined with the Global coverage,
integrated with the road transport network and warehousing options provide an
excellent foundation to develop our Supply Chain Management Solutions. We believe
and deliver the value of Excellence. We are great listeners. We engineer, develop and
deliver effective solutions to the complex Global supply chain requirements. You
benefit from every new innovation, whether it involves a simple extension to air and
ocean freight product, whether it means development in warehousing, or whether it
requires a completely new integrated supply chain model. Warehousing distribution,
kitting, pick packing, inventory management we handle everything. We are great
listeners and we would like to understand your business and will be able to create
innovative logistics solutions.

 Value Added Services

 For today's Logistic business, supplying transportation services from point A to B is
no longer enough. You require additional essential services from your logistics
provider. AMI assures you offer an array of such value-added services. We can build
interfaces with your IT systems or place staff directly with you to take care of
documentation, customs, exercise, stuffing, destuffing or even help you to design your
sea worthy packing. Our operations staff is experienced experts in customs related
documentary requirements and clearance. To club with air freight or sea freight they
offer Road Transport Service through dedicated service partners who are best known
in the industry for reliability.

INDUSTRY ANALYSIS
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Porters 5 Forces Model

New
New Market
Market Entrants
Entrants
1.
1.Easy
Easytoto enter
entermarket
marketat at the
the
bottom
bottom end
end
2.
2. Can
Can bebe located
located anywhere
anywhere so so
little
littlegeographic
geographic resistance.
resistance.
3.
3.Low
Low incumbents
incumbents resistance
resistance

COMPETITIVE
COMPETITIVE RIVALRY
RIVALRY
1.
1. Large number of
Large number of firms.
firms.
2. Short term contracts.
2. Short term contracts. BUYER
BUYER POWER
POWER
PRODUCT
PRODUCT AND AND TECHNOLOGY
TECHNOLOGY
DEVELOPMENT
DEVELOPMENT
3.
3. High fixed
High fixed costs
costs therefore
therefore 1.
1. Buyer
Buyer choice
choice due
due to
to high
high
competition
1.
1. Increases in rail
Increases in railfreight.
freight. need
need economy of
economy of scale
scale competition
2.
2. Few
Few buyers
buyers for
for shipments
shipments so so
2.
2. Replacement of
Replacement offreight
movement
movement with
freight
with info
info
4.
4. Little differenciation so
Little differenciation so no
no high
highpower
powerforforbuyers
buyers
movement
movement need to change supplier.
need to change supplier.

SUPPLIER
SUPPLIER POWER
POWER
1.
1. Little
Little alternative
alternative for
for fuel
fuel
2.
2. Product
Product or or service
service level
level
quaity
quaity for
fortrucks
trucks
33 Labour
Labour shortage
shortageforfor drivers
drivers
leads
leads to
to high
high wages
wages

Competitive Analysis

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Although trade generally benefits a country as a whole, powerful interests within countries
frequently put obstacles that is, they seek to inhabit free trade. These are several ways this
can be done:

 Tariff Barriers: A duty, or tax or fee, is put on products imported. This is usually a
percentage of the cost of the good.

 Quotas: A country can export only a certain number of goods to the importing country.
For E.g., Mexico can export only a certain quantity of tomatoes to the United States, and
Asian Countries can send only a certain quota of textiles here.

 Voluntary export restraints: These are not official quotas, but involve agreements made
by countries to limit the amount of goods they export to an importing country. Such
restraints are typically motivated by the desire to avoid more stringent restrictions if the
exporters do not agree to limit themselves, for e.g. Japanese car manufacturers have
agreed to limit the number of automobiles they export to the United States.

 Subsidies to Domestic Products: If the government supports domestic producers of a

product, these may end up with a cost advantage to foreign producers who do not get this
subsidy. U>S> honey manufacturers receive such subsidies.

 Non-Tariff Barriers: Such as differential standards in testing foreign and domestic

products for safety, disclosure of less information to foreign manufacturers needed to get
products approved, slow processing of imports at ports of entry, or arbitrary laws which
favour domestic manufacturers.

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Justifications for protectionism: Several justifications have been made for the practice
of protectionism. Some appear to hold merit than others:

 Protection of an “infant” industry:

Costs open higher, and quality lower, when an industry first gets started in a country, and it
must be very difficult for the country to complete. However, as the industry in the country
matches, it may be better able to compute. Thus, for example, some countries have attempted
to protect their domestic computer market while they gained strength. 
The US attempted to protect it market for small autos American manufacturers were caught
unprepared for the switch in the demand away from the larger cars, caught US auto Makers
unprepared. This is generally an accepted reason in trade agreements, but the duration of the
protection must be Limited.

 Resistance to unfair foreign competition:

 The US sugar industry contents that most foreign manufacturers subsidize their sugar
production, so the US must follow to remain competitive. This argument will be of
little merit with the dispute resolution mechanism available through the World Trade
Organisation.

 Preservation of vital domestic industry:

 The US wants to be able to produce its own defence products, even if foreign imports
would be cheaper, since the US does not want to be dependent on foreign
manufacturers with whose country’s conflicts arise. Similarly, Japan would prefer to
be able to produce its own food supply despite its exorbitant cost. For an industry
essential to National Security, this may be a compelling argument, but it is often used
for less compelling ones. 

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SWOT ANALYSIS

STRENGTH WEAKNESSES

1. Abundant and chep labour here can

complete on price
1.Inconsistent Quility
2. Low capital investment and high ratio of
2. Inadequate market study and marketing
value addition
strategy
3. Aesthetic and functional qualities
3.
3. Capacity
Capacity to
to handle
handle limited
limited orders.
orders.
4. Wrapped in mist of antiquity
4. Untimely delivery schedule
Variety
Variety of
of products
products which
which are
are unique
unique

1.
1. Widespread
Widespread novelty
novelty seeking
seeking 1.
1. Decline
Decline in
in India
India share
share due
due to
to better
better quality
quality
2.
2. Large discretionary income at
Large discretionary income at disposal
disposal of
of products
products produced
produced by by competitors
competitors from
from
consumer
consumer from
from developed
developed countries
countries Europe
Europe Siuth
Siuth Africa
Africa ,Asia
,Asia etc.
etc.
3.Growth in search made by retail chains in 2. Better terms of trade by competing
2. Better terms of trade by competing
major importing countries for suitable countries
products and reliable suppliers. 3. Better packaging
4. Use of e- commerce in direct marketing 4. Stricter international standards
standards

THREATS
OPPORTUNITIES

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ABOUT THE PROJECT

As I begin with this live project, I took the study for analysing the competitiveness and
performance of AMI global in the world of exports/imports, and also the study of supply
chain management in the world of logistics. I was able to use my skills to analyse the data
and it was a very interesting project as SCM is a vast topic to cover and has a lot of
classification, it holds all the procedure of a product from its birth to reaching the product to
the final consumer.
The title of the project is “Study of Exports of Chemical Product by SCM” Before the starting
of this project I needed to understand many things related to the industry and the company
Itself.
At the beginning of this project I was able to get hold of a presentation on this Supply Chain
Management through slide share which made me help to understand a clear view of logistics
and the companies who are into logistics business. Then as one of my family member works
in the logistics field it was very helpful for me to get the details of that company (AMI
GLOBAL) as it is a freight forwarder company and one of the players of this logistics
business, and studied about the company from the company website and external sources.
We need to first know about some of the basic terminology used in the company and used
with the customers and that are used in the logistics world known as INCOTERMS and will
be heard further in the project-

 EXW(EX-Works)
One of the simplest and most basic shipment arrangements places the minimum
responsibility on the seller with greater responsibility on the Buyer. In an EX-Works
transaction, goods are basically made available for pickup at the shipper / seller’s
factory or warehouse and ‘delivery’ is placed when the Merchandise is released p the
consignee’s freight forwarder. The buyer is responsible for making arrangement with
their forwarder of insurance, export clearance and handling all other paper work.

 FOB (Free on Board)

One of the most commonly used and missing terms, FOB means that the shipper /
seller uses his freight forwarder to move the Merchandise to the port or designated
port of origin. Though frequently used to describe inland movement of cargo,
FOB specifically refers to Ocean or inland waterway transportation of goods.
Delivery is accomplished when the shipper / seller releases the goods to the buyer’s
forwarder. The buyer's responsibility for insurance and transportation begin at the
same moment.

 FCA (Free Carrier)

 In this type of transaction, the seller is responsible for arranging transportation, but he
is acting at the risk and the expense of the buyer. When in FOB the freight forwarder
or carrier is the choice of the buyer, in FCA the seller chooses and works with the
freight forwarder f\or the carrier. Delivery is accomplished at a predetermined port or
destination point and the buyer is responsible for Insurance.

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 FAS (Free Alongside Ship)

 In these transactions, the buyer bears all the transportation costs and the risk of loss
of goods. FAS requires the shipper / seller to clear goods for export, which is
reversible from past practices. Companies selling on these terms will ordinarily use
their freight forwarder to clear the goods for export. Delivery is accomplished when
the goods are turned over to the buyer’s forwarder for insurance and transportation.

 CFR (Cost and Freight)

 This term formerly known as CNF defines two distinct and separate responsibilities-
one is dealing with the actual cost of merchandise “C” and the other “F” refers to the
flight charges to the predetermined destination point. It is the shipper / seller's
responsibility to get goods from their door to the port of destination. Delivery is
accomplished at the time. It is the buyer's responsibility to cover insurance from the
port of origin for the port of shipment to the buyer's door. Given that the shipper is
responsible for transportation, the shipper also chooses the forwarder.

 CIF (Cost, Insurance and Freight)

 This arrangement similar to CFR are, but instead of the buyer ensuring the goods for
the maritime phase of the voyage, the shipper / seller will ensure the Merchandise. In
this arrangement the seller usually chooses the forwarder. Delivery as above, is
accomplished at the port of destination.

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 CPT (Carriage Paid To)

In CPT transactions the shipper / seller has the same obligations found with CIF, with
addition that the seller has to buy cargo insurance, naming the buyer as the insured
while the goods are in transit.

 CIP (Carriage and Insurance Paid to)

 This term is primarily used for multimodal transport. Because it relies on the Carriers
insurance, the shipper / seller is only required to purchase minimum coverage. When
this particular agreement is in force, freight forwarders often act in effect, as carriers.
The buyer's insurance is effective when the goods are turned over to the forwarder.

 DAT (Delivered at Terminal)

This term is used for any type of shipment. The Shipper/seller pays for carriage in the
terminal, except for costs related to import clearance, and assumes all risks up to the
point that the goods are unloaded at the terminal.

 DAP (Delivered at Place)

 DAP term is used for any type of shipment. The shipper / seller pays for carriage to
the named place, except for cost related to import clearance, and assumes all risk prior
to the point that the goods are ready for unloading by the buyer.

 DDP (Delivered Duty Paid)

 DDP terms tend to be used in intermodal for courier type shipments. Whereby the
shipper / seller is responsible for dealing with all the tasks involved in moving goods
from the manufacturing plant to the buyer / consignee's door. It is the shipper / seller's
responsibility to ensure the goods and absorb all costs and risks including the payment
of duty and fees.

After having some idea about the INCOTERMS, I am now equipped with necessary
knowledge which is frequently used. Now I have to study about the chemical
industries in Delhi and NCR. I collected the details from the FIEO (Federation of
Indian Export Organisation) website. All the industries which are involved in the
export activities are registered here. It is the Apex body of export promotion
organisations of India which was established in 1965. it provides the crucial interface
between the international trading community of India and the Central / State
Government, Financial Institutions, ports, Railways, surface transport and all involved
in the export trade facilitation. Directly and indirectly serve the interest of over
100,000 exporters in the country. FIEO’s direct members contribute more than 70%
of India's exports. it is an ISO 9001-2008 certified organisation ensuring high quality
service to its members and associates.

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 With the help of FIEO website I am able to collect more than 150 companies’ data
which are involved in the process of Export /Import of chemical goods worldwide and
located in Delhi-NCR. The country's chemical industry was estimated at USD 163
billion in 2018 and we believe that it has the potential to reach USD 304 billion by
2025 growing at a CAGR of 9%. The growth is expected to be driven by raising
demand in end user segments and expanding export fuelled by increasing export
competitiveness. The Government of India plans to invest USD 34 billion in three
approved Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs).
Government recognizes the Chemical industry as a key growth element of Indian
economy. In the Chemical Sector, 100% FDI is permissible. Manufacture of most
chemical products is De-licensed. In wake of this immense growth opportunities
coupled with intense competition are acting as major drivers behind the dynamic
growth in certain segments like Logistic and manufacturing too. 

This live project has provided me with clarity on the industry and their functions.
It shows that there is a lot of scope od chemical exports in near future as n this
COVID-19 situation India is exporting medicines to the US in a huge quantity.

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RESEARCH METHODOLOGY
In this project, the export scenario in India has undergone a tremendous change. The
liberalization initiated by the government, the keen competition in the Market place & the
rapid increase in the export of services have all combined to change the picture completely.
This project will be covering various aspects of export finance. Areas covered in this project
are related to concept and types of export finance, financial institutions etc. AMI overseas is
the company which is upfront about shipping times, building turnarounds. Component
performance, and they never try to up sell you product you don't need. Following objective
will need to justify in this project.

A. Approach to the problem

Export transparency carries through, down the line to engineers and technicians. If there's a
problem with a component and it doesn't seem like it's performing as it should the process
start over. At times, there will be a customer that doesn't really know what a certain part is for
but wants it anyway. They, through their conversation, find out what the system's role will be
and they determine what components are necessary to do those things best. If there is a
component that seems out of place, they will then educate the customer and he/she will then
now be knowing, make the right decision to either include component or not in their
configuration. They don't do any arm twisting or up-selling. There are no clever tactics at
work here. They simply sell the best components left from their testing and provide
exceptional support and advice to our customers. We educate as necessary to highlight the
pros and cons of certain component combinations to create a better fit for a customer and
their system.

B. Type of research design

In this project, the export scenario in India has undergone a tremendous change the
liberalization initiated by the government, the keen competition in the market place & the
rapid increase in the export of services have all combined to change the picture completely

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This project will be covering various aspects of export finance. Areas covered in this project
are related to concept and types of export finance, financial institutions etc. CRANEO is the
company which is upfront about shipping time, building turnaround component performance,
and they never try to up sell you product you don't need this transparency carries through on
down the line to engineers and technicians. If there's a problem with a component and it
doesn't seem like it's performing as it should, the process starts over. At times, there will be a
customer that doesn't really know what a certain part is for but wants it anyway. They,
through their conversation, find out what the systems role will be and they determine what
components are necessary to do those things best. If there is a component that seems out of
place, they will then educate the customer and he/she will then, now knowingly make the
right decision to either include a component or not in their configuration. They don't do any
arm twisting or up-selling. There are no clever tactics at work here. They simply sell the best
components left from our testing and provide exceptional support and advice to their
customers. They educate as necessary to highlight the pros and cons of certain component
combinations to create a better fit for a customer and their system.

C. Sources of data collection:

Source of data collection is from keeping Zoom Meeting and calling (as due to the COVID-
19 situation it is mandatory to maintain Social Distancing) with the management of the
export’s houses. I use to call the company's representatives to get an appointment for the
Video Meetings regarding the expansion and promotion of AMI Global and to make a
business relationship with new customers, which is an indirect objective of the report.

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The following research methodology is proposed to be adopted for the Live Project Research
to achieve the objective of the study:

Primary Data 

Primary research is an investigation which involves collection of original data, using

accepted research methodology. The primary research contains two different type of data
collection:
 1.Questionnaires
 2. Semi structured interviews

Based on the Semi structured interview. questionnaire has to be filled. Because the kind of
information I needed for my Live Project according to privacy policies of the companies.

Secondary Data

Secondary data is to be mostly used for the research. For collecting data on exports from
India I used to visit various websites which was involved with logistics and other webpages
of logistics company and newspapers and government websites which equipped with
necessary information. The source of secondary data to be used ranges from magazines,
books, websites, newspapers, Business Today and articles of many economists. 

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SAMPLING TECHNIQUES

Sampling size is more than 40 companies. Either I had to call in the company or email them
for the appointment. Out of them I manage to collect a data sample of 31 companies only
because many of the shippers hesitate to give information. The sample selection technique to
be used is simple random selection. Somehow, I was able to take appointment from the
shippers for meetings with the help of an AMI official. Random sampling has been done for
carrying out the survey on the consumers and the retailers.

DATA COLLECTION AND ANALYSIS

Questionnaire
Data Collection from different Shipper and Forwarder
1. Which Country do you export in Africa?

Port Name KENEYA TANZANIA UGANGA RWANDA BURUNDI ZAMBIA DRC MOZAMBIQUE

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No. of 16 15 14 15 15 15 15 15
Companies
Export

EXPORTERS% 51.6 48.4 45.2 48.4 48.4 48.4 48.4 48.4

(AFRICA)

EXPORTER%(AFRICA)
54

52

50

48

46

44

42
KENEYA TANZANIA UGANDA RWANDA BURUNDI ZAMBIA DRC MOZAMBIQUE

EXPORTER%(AFRICA)

Interpretation: Kenya is the most loving place for the exporters and other countries have
also the same share of Indian imports, reason is almost all the companies knows the
importance of demand in African Market.

2. Where do you export in USA?

PORT NAME USEC USWC US GULF

No. of Companies 13 7 7
Export

EXPORTERS% (USA) 41.9 22.6 22.6

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eXPORTERS % (usa)
45

40

35

30

25

41.9
20

15

22.6 22.6
10

0
USEC USWC US GULF

EXPORTERS % (USA)

Interpretations: Being the closer physical location of US east coast; is the most likely pace
as compared to USWC and US GULF

3. Another place where you export?

Destination name No. of Exporters

AFRICA 11
ASIA 1
USE 9
EUROPE 5

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DUBAI 3
GULF 3
NIGERIA 2
KOREA 2

OTHERS (AIR & SEA)

5%
5%
8%
36%
8%

13%

3%

23%

KOREA NIGERIA GULF DUBAI EUROPE USA ASIA AFRICA

Interpretation: Africa is the most lovable place for Indian Exporters with a share market of
36% followed by USA with a share market of 23%, then Europe with 13% and so on.

4. What type of business you prefer or engaged in?

TYPE OF AGREEMENT EXPORTERS EXPORTERS %

FOB 20 42

CIF 22 46

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EX WORK 4 8

ALL TYPE 2 4

TYPES OF BUSINESS

50
45
40
35
30
25
20
15
10
5
0
FOB CIF EXWORK ALL TYPE

EXPORTERS%

Interpretation: 46% of Exporter prefer CIF for the export and then 42% prefer FOB for their
shipments

5. Which type of container do you prefer for your shipment?

TYPE USED BY EXPORTERS

FCL 29

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LCL 9

AIR 2

CONTAINERIZATION REQUIREMENTS

5%

23% FCL
LCL
AIR

73%

Interpretation: Most of companies use full container load with 72% of shippers, and then
23% use LCL and then AIR.

6. Which logistics company do you prefer for your shipment?

FREIGHT FORWARDERS No. Of EXPORTERS %

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DHL 3 9.7
PIL 1 3.2
MAERSK 1 3.2
NOT FIXED 4 12.9
OTHERS 22 71.0

COMPETITORS

10%
3% DHL
3% PIL
MAERSK
13% NOT FIXED
OTHERS

71%

Interpretation: PIL and MASERK is the leading companies which are the real competitor of
AMI with 5% share only. DHL is also leading with 10% market share. Here point to be noted
is that others small companies have 71% market share. They don’t have any face; we can call
them hidden competitors which are very dangerous.

7. Satisfaction Level

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VERY SATISFIED 23

SOMEWHAT SATISFIED 7

COMPROMISE 0

SOMEWHAT DISSATISFIED 0

VERY DISSATISFIED 1

SATISFACTION WITH PRESENT LOGISTICS

25

20

15

10

0
VERY SATISFIED SOMEWHAT COMPROMISE SOMEWHAT VERY
SATISFIED DISSATISFIED DISSATISFIED

SATISFACTION LEVEL

Interpretation: All the companies except a few are very satisfied with their present freight
forwarder.

8. Are you aware of AMI Global?

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RESPONSE EXPORTERS

YES 7

NO 24

CONSCIUSNESS ABOUT AMI

23%

YES
NO

77%

Interpretation: 77% respondent said that they haven’t heard the name of AMI Global.
Therefore, company needs to be promoted well.

9. Role of inventory in logistics?

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VERY IMPORTANT 20
IMPORTANT 9

SOMEWHAT 0

DOESN’T EFFECT 0

NO REPLY 2

Sales

6%

29%

65%

VERY IMPOTANT IMPOTANT SOMEWHAT DOSEN'T EFFECT NO REPLY

Interpretation: Inventory is very important to figure out the exporters therefore it must be
managed properly.

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10. In your view, which country has the higher documentation and difficult clearance
process?

USA
UK
SRI LANKA
GERMANY
CHINA
PERU
RUSSIA
FRANCE

Sales

10%
20% USA
9%
1% UK
SRI LANKA
15% GERMANY
20% CHINA
PERU
5% RUSSIA
20%
FRANCE

Interpretation: Respondent said that UK, USA and Germany have almost higher documentation
requirement and clearance requirement by 20% while Russia and France have a percentage of 10%
and 9% while exporting in China is 15%.

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FINDINGS

1. Kenya is the most loving place for the exporters and other countries have
almost the same share of Indian exports, other countries like Burundi,
Tanzania, Rwanda.  Uganda, Zambia, DRC and Mozambique have same
share market.

2. Being the closer physical location of US cast coast, is the most likely
place as compared to US and US GULF.

3. Africa is the most loveable place for Indian exporters with a share market
of 36% followed by USA with a share market of 23%, then EUROPE
with 13% and so on.

4. 46% exporters prefer CIF for their exports and then 42% prefer FOB for
their shipments. It shows that other ways of business are not so popular.

5. Most of the companies use full container load with 72 % of shippers and
then 23% use LCL and then AIR.

6. PIL and MAERSK is the leading companies which are the real
competitor of AMI with 3% share only. DHL is also leading with 10% of
market share. Here point to be noted is that others small companies have
71% market share. They don't have any face we can call them hidden
competitors which are very dangerous.

7. All the companies except a few exceptions are very satisfied with their
present freight forwarder.

8. 77% respondent said that they haven't heard the name of AMI India.
Therefore, company needs to be promoted well.

9. Inventory is very important for figure for the exporters therefore it must
be managed properly.

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10. Respondent said that UK, USA and Germany have almost higher
documentation requirement and clearance requirements by 20% while
Russia and France have a percentage of 10% and 9% while exporting to
the CHINA is 15%

SUGGESTIONS AND RECOMMENDATIONS

Taking away the constraints. however, calls for a combined effort and
supportive endeavour of the Government, industry and trade. With proper
policy framework by the Government and initiatives by the industry and trade,
it is opportune for India to harness the production potential and exploit the
overseas market opportunities. By a proper blend of policy support and
incentives and facilities, India should make an endeavour to achieve an export
target of US$ 1Trillion by the year 2025, which by all means, is in the realm of
possibility. However, removing the constraints and creating an enabling
atmosphere is an important prerequisite. The steps required include the
following:

-Planting material needs to be augmented by stepping up the application of

technology of tissue culture

-- Ideology has to be developed indigenously to make it easily accessible and to

dispense with any imports

--Research efforts are to be strengthened to produce varieties that are in demand

in overseas markets and to increase the shelf-life.

- Domestic marketing has to be strengthened and facilitated by opening up,

action centre Encouraging growers' cooperatives would help considerably

- Infrastructure has to be created by way of cold chains, storage at airports,

reefer transport facilities, etc.

- Credit facilities particularly the rate of interest and the quantum of funds have
to be investor-friendly. NABARD has to give utmost importance to the
floriculture industry.

-Human resources are to be developed by imparting specialized knowledge

through training programs right from production through export marketing.

-India needs to strengthen her export efforts to tap markets such as USA,
European countries and Japan.
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-Exim-policies have to be modified to exploit the full potential of floriculture

industry EOUS may be encouraged to market as much as 75 percent of the
output in the domestic market

These are the recommendations to the Govt. of India so that the quantity of
exports will increase and we will overcome the trade deficit.

Recommendations to AMI Global.

1. AMI Global should increase its operations in the USA also as it is the second
most consumer of chemicals products exported from India. It can be done only
through establishing new offices in various key locations in the USA.

2. AMI Global should increase its operations for imports as well. Because in
India every year there is a trade deficit which means import is more than the
exports so there is a great opportunity in Imports too.

3. AMI Global should use a proper set of 4 p's of marketing mix. During the
analysis part a shocking outcome that very few people are aware about the AMI
in market therefore AMI India should increase the use of promotion tools. It
should increase its awareness among exporters.

4. In the Logistics industry there is a great competition because of the small

companies therefore AMI Global should go for takeover or joint ventures to
increase its functions.

5. AMI Global should do collaboration with exporters. Because during visits in

many companies they said that their shipment is done through nominations
only.

6. AMI Global doesn't provide logistics to exporters of seafood. Though India's

marine products export to an all-time high of Rs 45,000 crore ($6.3billion) in
Dec-2019 fiscal year. The exports crossed earlier records in quantity, rupee
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value and US dollar terms. Based on quantity, the country exported 9,28,215
tonnes.
BIBLIOGRAPHY

Websites :

 www.google.com

 http://www.chemexcil.gov.in

 http://www.fieo.org/

 http://www.foreign-trade.com

 www.amilogistics.com

 http://seai.in

 http://timesofindia.indiatimes.com/business/india-business/exports

 www.slideshare.com

 http://www.farrow.com/article-what-is-freight-forwarding

 https://www.maersk.com/solutions/freight-forwarding

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ANNEXURE
ABBREVIATIONS USED
CFR-Cost and Freight
CIF-Cost, Insurance and Freight
CIP-Carriage and Insurance Paid To
CPT-Carriage Paid To
DAP-Delivered At Place
DAT-Delivered At Terminal
DDP-Delivered Duty Paid
EXW-EX-Works
FAS-Free Alongside Ship
FCA-Free Carrier
FCL-Full Container Load
FIEO-Federation of Indian Export Organizations
FOB-Free On Board
GATT-General Agreement on Trade and Tariffs
INCOTERMS-International Commercial terms
LCL-Less than Container Load
SCM-Supply Chain Management
SMEs-Small and Medium-sized Enterprises
WTO-World Trade Organization

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