INTRODUCTION

Throughout the years the business situation in India has experienced sensational transformation,
setting new patterns and measurements, particularly in the wake of Globalization which has
tossed open huge vistas abroad and as a spin-off thereto, calls for aggressiveness and competency
at the universal level. While time is the substance, there is no bargain on quality and costviability is similarly vital. The usual way of doing things of the business administration should
be always reoriented tuned in to the pervasive and the changing business sector flow.
Gone are the times of "Everything I DO MYSELF". Related participative try is the request of the
day, where, while keeping the center movement restricted to in-house, the other fringe and
routine exercises are outsourced to an equipped related gathering. This is the place Cargomen
Logistics India Private Limited comes to assume its part as a related and participative
outsource. We have been tuned to fill in as a nearly related work focal point of the business
worry to manage matters identifying with statutory endorsements and clearances concerning
fares and imports.
Built up in the year 2000,"Cargomen"s competency has been perceived by the trading and
bringing in group and it might be relevant to express that about more than 200 customers (80%
of them being Multinationals and of which half being Fortune 100 customers) have outsourced
their work concerning legislative clearances and endorsements from DGFT, STPI, CEX,
CUSTOMS, RBI , DRUG CONTROLLER OFFICE and "Cargomen" has endeavored its best to
render administrations to the most extreme fulfillment of the customers.
VISION: Our Vision is to increase the value of our Customers, Business Partners & Associates
and we do this through continuous improvisation in our process keeping the cost and time in
control. We believe our success depends on offering quality service to our Customers, Business
Partners & Associates; providing services which are cost and time effective, while adhering to
the highest standards of Business ethics and Integrity
MISSION: To Be Recognized as Trusted Logistics Partner across the Globe. We have been
building trust among all our Customers, Business Partners & Associates since a decade and
aspire to continue the same in our future endeavors as well

SERVICES OFFERED BY CARGOMEN LOGISTICS

Import Customs Clearance

Export Clearance under various Schemes
Duty Drawbacks
SAD Refunds
SVB (Clearance under Related Party Transaction)
Clearance under EOU/SEZ/EPCG/Advance License
Clearance Under Wireless Planning-Committee (WPC License)
Pre & Post Import Consultation
Custom documentation
Carting / receiving goods
Examination of shipments
Handling of stuffing & de-stuffing at ports, ICD/CFS and at customers warehouse/Factory.
Trucking
Freight Forwarding
Customs brokerage
Licensing and advisory services

ENVIRONMENTAL ANALYSIS WHERE CARGOMEN WANTS TO GROW:

1. As it is written in the case that the cargomen logistics is proficient in handling
documentation and getting custom clearances, hence they should keep on doing what
they are already doing because they get the revenues of 6 cr. and a profit margin of nearly
40-50% which is huge
2. Moreover, by acquiring the new vehicles and warehouse, they would only get the profit
margin of 1 to 2% with extended responsibility
3. Even if, cargomen logistics want to grow its empire by entering into warehouse and
transportation business which is previously held by the 3 rd party logistics, then they might
think of getting started from Bangalore and Chennai because Andhra Pradesh was in
turmoil of getting segregated into 2 states i.e. Telangana and Andhra Pradesh.
4. The reasons behind starting in the above written cities are that both are developed and
development means more business. Moreover Elections were going to be held in Andhra
Pradesh which means political leaders could easily sway the minds of officials of
cargomen by saying that they would favor special economic zones in order to increase
their vote bank.

5. Political situations also become critical in the state where elections are going to be held
hence it would be better option to set up a warehouse in politically stable state.
6. There is no denying the fact that setting up cost of warehouse in Chennai and Bengaluru
will be more but we cannot compromise over the availability of power, security, and
proximity to ports which is more in these two cities.
7. One thing that goes into the favor of Hyderabad is number of employees. If there are 105
employees in Hyderabad only, then it is possible that cargomen is making most of its
profit from Hyderabad. Here one thing can be done, transportation business can be started
in Bangalore and warehouse can be set up in Hyderabad but after confirmed deal with the
government that it will favor special economic zones so that they dont have to shift like
TATA plant in singrur. Setting a warehouse in Hyderabad will result in cost reduction as
well as assurance of land, labor, power supply and safety.

ANALYSIS OF CURRENT BUSINESS AND FUTURE AREAS OF GROWTH:

Currently, cargomen is into the business of providing single window clearance to its
clients out of which half of them are fortune 100 companies. This fact proves that

they are doing commendable job in the field in which they are currently working
Moreover, with the revenues of 6 cr. They are making profits of 40 to 50% i.e. nearly

2.5 to 3 cr. which is more than expected as compared to their revenue.

As we also know that when it comes to transportation and warehouse, cargomen uses
vehicles on lease and available market space respectively to carry out its operations
hence this becomes the area where they become dependent on others for logistics.

Therefore it creates an opportunity for cargomen to expand by buying new vehicles

and building new warehouses but it would result in huge initial cost with very less
profit margin. Moreover Indian market is suffering from slump hence it could take
long time to reach breakeven point

But the thing is, once they reach breakeven point then it would add to their assets and
will return huge profits because there will be no more lease to be paid by the

company and there will be no more rent to be paid because they will own their
property.

RECOMMENDATIONS AND CONCLUSION:

In the end, we would like to conclude that:
1. Every organization wants to expand their portfolio by becoming independent. Currently,
transportation and warehousing of Cargomen is controlled by third party logistics which
they want to acquire in future.
2. Sometimes, firms are ready to bear the initial losses while entering into the whole new
business because of the economies of scale that they could get in the years to come. Same
is the case cargomen Ltd. Even if they know that there would be a little margin of 1 to
2% in physical logistics, they want to enter into it because they do not want to
compromise over quality and delivery of cargos in the coming future and do not want to
spoil their goodwill in the market which they have made by the concept of single
window clearance.
3. Ultimately no company would require suffering only because of the mistake committed
by the third party.
4. In the case, we have also come to know that clients are happy with the services provided
by Cargomen logistics hence they are ready to invest in their company. Clients trust the
services provided by cargomen and believe that they would continue to grow and expand
in the future with same mission and enthusiasm.
5. Hence if the investors are ready to take the risk then cargomen should expand because if
they keep that space empty, then other competitor will penetrate into that market and will
snatch the market share.
6. Moreover cargomen will be diversifying in the business which is related to their main
business which means they would be better able to integrate processes and procedures
required to carry out efficient logistics.