Devashya TrivediHemal Shah

Karan GargRahul Guhathakurta

Sandipan RoyDiploma in Logistic and Shipping OperationGoG-AMA Center for International Business

Ahmedabad Management Association

Castor Oil and it’s Derivatives : Packaging, Logistic Planning & SCM Operation

Agenda

• Product Summary - Castor Oil • Castor Oil – Packing• HCO • HCO – Packing• Logistics & SCM Operations• Questions

Castor (Ricinus communis L.) is a non edible oilseed.

It is cultivated around the world because of the commercial importance of its oil.

India is the world leader in castor production and dominates the international castor oiltrade.

The Indian variety of castor seed has an oil content of 48% but only 42% can beextracted, while the cake retains the rest.

The Castor seed products have widespread application in many industries like Paint, Lubricant, Pharmaceutical, Textiles, etc.

These products are growing in importance because of their biodegradable and eco-friendly nature.

Product Summary : Castor Oil & it’s Derivatives

Source: N. K Proteins Limited, Ahmedabad

Biggest Consumer Market : Tonnage –per-Region

Source: Castor Seed Seasonal Outlook, Karvy Comtrade Limited 2006

Source: N. K Proteins Limited, Ahmedabad

Export Figures

Source: Castor Seed Seasonal Outlook, Karvy Comtrade Limited 2006

Source: Castor Seed Seasonal Outlook, Karvy Comtrade Limited 2006

Flexi Tanks

Steel Drums ( 200kgs / 225 Kgs )

ISO Tank

Bulk Carrier

Packing & Stuffing

Flexi Tank

• Flexi tank is a package that is used for storage and transportation of bulk non- hazardous cargoes and is intended for installation in the standard 20 ft sea or railway container.

• Standard flexitank is composed of 4 inner layers of food-type Polyethylene and 1outer layer of woven Polypropylene fabric.

• Flexitank is a special, soft and tight tank with different sizes ranging from 14CBM up to 24CBM in order to maximize the capability of a heavyweight 20ft depending on SG of the product to be carried.

• A drum is a cylindrical container used for shipping bulk goods. Drums are made of steel

• Are generally used for the transportation of certain dangerous materials or modest quantities of bulk goods.

• These metal drums have two openings with flanges

Drums

ISO Tank• ISO tanks are the revolutionary concept in the

transportation of liquid, gaseous and powder chemicals.

• They provide a sturdy safe and user friendly mode of loading, carriage, transportation, shipping and discharge of various hazardous, non-hazardous and food grade chemicals adhering to the international norms regulations of safety.

ISO Tank

Bulk Carrier

• A bulk carrier, bulk freighter, or bulker is a merchant ship specially designed to transport unpackaged bulk cargo.

• Today, bulkers make up 40% of the world's merchant fleets and range in size from single-hold mini-bulkers to mammoth ore ships able to carry 365,000 metric tons of deadweight (DWT).

• The Carrier has to be cleaned after every consignment

Bulk Carrier

Bulk Carrier

Problem Area

Hydrogenated Castor Oil

• HCO, also known as castor wax • It is a hard, brittle, insoluble wax. • Mainly used for coatings and greases where

resistance to moisture, oils and other petrochemical products is required.

• Hydrogenated oil is also utilized in the manufacture of waxes, polishes, carbon paper, candles and crayons

Packing

• 25kgs, Laminated Paper Bags, Palletised• 25kgs, Laminated Paper Bags, Unpalletised• 25kgs, Polypropylene, Palletised• 25kgs, Polypropylene, unPalletised• 500kgs/600kgs/1000kgs Jumbo bags,

Palletised

Packing

Packing

Packing

Route Optimization 1: Ahmedabad to Mundra Port

Source: Google Maps

Source: Google Maps

Route Optimization 2: Ahmedabad to JNPT Mumbai

Source: Google Maps

Route Optimization 3: Ahmedabad to Pipavav Port

Source: Google Maps

Mundra (INMUN): MSC , SIMATECH , IMEX, EPIC, ZIM - HANJIN - CSAV - CIN OEL , APL, SHREYAS Shipping, SPX(SIN-PAK-XPRESS) , YANG MING / OOCL , EMIRATES / TS LINES / OOCL , FAR SHIPPING Lines - SINGAPORE , MIDAS, KUX (Kandla UAE Express) , IPG (India -Pak-Gulf)-Feeder , H & H

Nava Shiva Mumbai (INNSA): NMG - SIMATECH - CEEKAY - OEL , GIS, IMEX, EPIC, Super Galex : ZIM - HANJIN - CSAV - CIN

GTI Mumbai (INGTI): MSC , EMIRATES / TS LINES / OOCL

Pipavav Port (INPAV): SHREYAS Shipping , SPX(SIN-PAK-XPRESS) , EMIRATES / TS LINES / OOCL

Available Shipping Lines

Logistic Planning & Execution

Factors to be Considered:

1.Ocean Freight2. Availability of Vessels3.Availability of Containers4.Availability of Space5.Trans-shipments6.Over Land Movement – Rail or Road 7.Port Charges8.Form of Cargo9.After Shipment Service

Ports of Trans- Shipments:

1.North America – East Coast/ South America/Europe – Rotterdam2.North America- West Coast/Asia/ South-East Asia/ Japan/ China - Singapore

Cost Calculation Rotterdam

 

Particulars Mundra Pipavav  1356 1450

Ocean Freight 63732 68150Transportation 21500 19000

Service Tax 554 489THC 8500 6435

Service Tax 876 663Lift on charge 1350 0Service Tax 139.05 0

Cert of Origin 250 250BL Charges 1000 1000Service Tax 103 103

Agency Charges 2300 2500Service Tax 237 258

     Total 1,00,540.08 98847.555

Total in USD 2094.58 2059.32Total USD / PMT 97.42 95.78

Cost Calculation Rotterdam -HCO

 

Particulars Mundra Pipavav  $1356 $1450

Ocean Freight 63732 68150Transportation 21500 19000

Service Tax 554 489THC 8500 6435

Service Tax 876 663Lift on charge 1350 0Service Tax 139.05 0

Cert of Origin 250 250BL Charges 1000 1000Service Tax 103 103

Agency Charges 2300 2500Service Tax 237 258

     Total 1,00,540.08 98847.555

Total in USD 2094.58 2059.32

Cost Calculation Rotterdam

 

Particulars Mundra Pipavav  1356 1450

Ocean Freight 63732 68150Transportation 21500 19000

Service Tax 554 489THC 8500 6435

Service Tax 876 663Lift on charge 1350 0Service Tax 139.05 0

Cert of Origin 250 250BL Charges 1000 1000Service Tax 103 103

Agency Charges 2300 2500Service Tax 237 258

     Total 1,00,540.08 98847.555

Total in USD 2094.58 2059.32Total USD / PMT 97.42 95.78

Cost Calculation Xingang – Castor Oil 

Particulars JNPT / GTIL Pipavav Mundra  $81.00 $131.00 $256.00

Ocean Freight 3,807.00 6,157.00 12032Transportation 3500 3500 16500

Service Tax 91 91 424.88Concor 13100 8600 0

Service Tax 405 166 0THC 6110 4280 5500

Service Tax 629.33 440.84 566.5Repo 6000 4000 0

Service Tax 618 412 0Lift on charge 250 250 885Service Tax 26 26 26

Cert of Origin 250 250 250BL Charges 1000 1000 1000Service Tax 103 103 103

Handling Charge 1770 1770 0Service Tax 182 182 0

Agency Charges 1000 1000 1000Service Tax 103 103 103

       Total 38,944.08 32330.59 38390.38

Total in USD 811.34 673.55 798.24Total USD / PMT 37.74 31.33 37.13

21.5 MTS

Cost Calculation Rotterdam

 

Particulars Mundra Pipavav  1356 1450

Ocean Freight 63732 68150Transportation 21500 19000

Service Tax 554 489THC 8500 6435

Service Tax 876 663Lift on charge 1350 0Service Tax 139.05 0

Cert of Origin 250 250BL Charges 1000 1000Service Tax 103 103

Agency Charges 2300 2500Service Tax 237 258

     Total 1,00,540.08 98847.555

Total in USD 2094.58 2059.32Total USD / PMT 97.42 95.78

ASK EASY QUESTIONS

Questions……………………………

HAPPY NEW YEAR