EXPORT

PROCEDURES O

F

NALCO

INTRODUCTION National Aluminium Company Limited

( Nalco ) Incorporated in 1981, as a public sector enterprise of the

government of India, National Aluminium Company (NALCO) is Asia’s largest integrated aluminium complex, encompassing bauxite mining alumina refining, aluminium smelting and casting, power generation, rail and port operations.

Commissioned during 1985-87 under extremely difficult logistics of project management that too without time or cost over-runs, Nalco has emerged to be a star performer in production and export of alumina and more significantly, in propelling self-sustained growth.

It is the first Indian company to be registered with the London Metal Exchange and has ISO 9000-2001 and ISO14001 certifications for all its units including mines, alumina refinery, aluminium smelter and power plant. Nalco products are exported to more than 30 countries.

EXPORT OF NALCO

Nalco started exports of Aluminum metal in September 1988.

The company’s metal was registered with the London Metal Exchange(LME),London in 1989.

The company presently exports primary aluminum in the form of Ingots and Sows.

The Ingots and Sows that are exported are normally of LME grade i.e. conforming to the specification: Al.99.7 pct min, Fe.0.20 pct max and Si 0.10 pct max.

Export of others products, such as Wire Rods ,Billets etc., have been done in the past and could be considered in future depending on the market situation and availability of products of required quality.

Nalco presently exports through the sea-ports in Kolkata, Paradip & Vishakhapatnam and through land to Bangladesh .

OBJECTIVE OF PROJECT

To understand the export procedures of NALCO. To study documentation and related procedure

in NALCO To find out Problem faced by Nalco in this

competitive market. To analyze the CSI for the export procedures of

Nalco

EXPORT PROCEDURES IN NALCO

TENDER :- Spot tender(limited tendering) Long term tender (open tendering)PROCEDURE FOR EXPORTING :- Registration Tender Lme (london metal exchange) Price Contents in tender Opening of credit Shipment Final transaction

BASIC DOCUMENTS REQUIRED TO EXPORT Commercial invoice Bill of lading Certificate of origin Packing list Shipping the product Freight forwarders Packing Labeling Shipping Tariffs Licenses Insurance

RESEARCH METHODOLOGY

COLLECTION OF DATA :-

Visiting the mine sites as well as the port where export facilities are available.

Interviews

Questioner

PERFORMANCES OF NALCO

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

0

1000000

2000000

3000000

4000000

5000000

6000000

Bauxite(MT)Alumina(MT)Aluminium(MT)Power(MU)

NALCO’s production performance for the last 13 years

Export Sales performance in the last 13 years

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

0

200000

400000

600000

800000

1000000

1200000

Alumina(MT)Aluminium(MT)

ANALYSIS

PROBLEM FACED BY NALCO IN THIS COMPETITIVE MARKET

The 1st problem that NALCO faces is the problem of the Marketing policy for registration that is followed by NALCO

The 2nd problem faced by NALCO is its pricing policy

The 3rd problem faced by NALCO is that of Quotational period

The 4th problem that NALCO faces is that of Logistic problem

SWOT ANALYSISSTRENGHTS1. Availability of huge deposites of bauxite

2. State of the art technology

3. Huge power production

4. Maintenance of production & quality of metal produced

5. High profitability ratio

6. Co-ordination among various departments

7. Experienced & qualified professional drawn across India through rigorous selection process

WEAKNESS Scattered plant sites Depends upon lme quotes

OPPORTUNITIES Growh of potential domestic markets Widespread use of alumina and aluminium for

various purposes

THREATS Instability of LME prices High tax rate imposed on export Devaluation of rupee leading to increase of debt

amount Dumping of metal at low cost by the european

countries