EXPORT PROCEDURES OF

NALCO

Presented By:
PRATICK GAYEN
08DM070
 RESEARCH METHODOLOGY
OBJECTIVE
To understand the export procedures of Nalco and various
documents required for that.

DATA SOURCES:

SECONDARY DATA:
Internal data: Financial statements, annual reports, director’s
report, research reports files, docets which contained
customer letters,
sales call reports, and customer lists.
External data: Internet and Nalco website

PRIMARY DATA:
Depth interview with Nalco staff and officials
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 METAL
 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 .
EXPORT PROCEDURES IN NALCO
 REGISTRATION OF CUSTOMER
 ORDER BOOKING:
• LIMITED TENDERING
• ONE-TO ONE CONTRACTS
• PARTICIPATION IN GLOBAL TENDERS
 SALE ORDER:
Material description
Quantity
Shipment schedule
Delivery basis
Price
Mutational period ( in case of lame linked contracts )
Payment terms
Standard terms and conditions
Name & addressee of advising/ negotiating bank
EXPORT PROCEDURES IN NALCO
DISPATCH INSTRUCTION

LETTER OF CREDIT

RAKE DISPATCH DOCUMENTS :

[A] APPLICATION FOR REMOVAL OF EXCISABLE GOODS FOR EXPORT(ARE-1 FORM)
[B] PACKING LIST
EXPORT PROCEDURES IN NALCO
 PRE-SHIPMENT ACTIVITIES & DOCUMENTS
[A] DECLARATION OF DESTINATION TO NALCO’s PORT OFFICES
[B] RAKE DATA UPDATION
[C] PROFORMA INVOICE
[D] PACKING LIST
[E]CAST/HEAT WISE STATEMENT
[F]ARE-PI STATEMENT
EXPORT PROCEDURES IN NALCO
 POST-SHIPMENT DOCUMENTATION
• Bill of Lading
• Certificate of Origin
• Shipping Bills
)
EXPORT PROCEDURES IN NALCO
ACTIVITIES RELATED TO METAL
SHIPMENT AT PORT (VIZAG /
PARADIP /KOLKATA)
SUGGESTIONS
 As Nalco is a public sector undertaking the export
procedures and documentation are already pre-defined
and pre-determined as per the guidelines of Nalco and it
cannot deviate from that.

 Currently Nalco’s customer base is concentrated only in

the Asian market; it can expand its customer base further
outside Asia to make its global presence more strong like
its competitors.

 As far as the documentation part is considered, some

documentation part consumes more time like the L.C;
also there are many lengthy procedures. Nalco should opt
for a more smooth procedure which consumes less time.
SUGGESTIONS
 Quality specifications should be maintained
so as it conforms to the standards
demanded by the buyer so as to get
minimal number of customer complaints.
 Nalco has currently implemented e-export
system which some customers are not very
convenient with so Nalco should switch to a
more user-friendly e-system.
 Nalco should address the customer
complaints more efficiently