INTRODUCTION National Aluminium Company Limited ( Nalco )

Incorporated in 1981, as a public sector enterprise of the government of India, National Aluminium Company (NALCO) is Asias 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 companys 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
6000000

5000000

4000000

Bauxite(MT) 3000000 Alumina(MT)

Aluminium(MT)
Power(MU) 2000000

1000000

0 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

NALCOs production performance for the last 13 years

Export Sales performance in the last 13 years

1200000

1000000

800000

600000

Alumina(MT) Aluminium(MT)

400000

200000

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 ANALYSIS
STRENGHTS
1. 2. 3. 4. 5. 6. 7. Availability of huge deposites of bauxite State of the art technology Huge power production Maintenance of production & quality of metal produced High profitability ratio Co-ordination among various departments 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