Cost & Pricing

For

ASIAN FOOD INDUSTRY

Guided by
Mr.Ayay Taheliyani [External]
Mrs.Vaishali Shah [Internal]

Prepared by
Zalak Trivedi [08/MBA/58]
 INTRODUCTION
• ASIAN FOOD INDUSTRY IS A PARTNERSHIP FIRM
ESTABLISHED IN JANUARY 1999.

• AFI DEVELOP, MANUFACTURE, PROCESS AND EXPORT ALL

KINDS OF SPICES/FOODSTUFF

• AFI IS BASICALY TWO STAR EXPORT HOUSE. HAVING AN

ANNUAL TURNOVER MORE THAN 300 Cr.

• AFI IS 100% EOU

AFI REGISTERED WITH
• Spice Board of India
• DGFT
• APEDA
• FIEO
 Geographical spread facility

TRADING HUB OF AFI

• DUBAI
• SINGAPORE
Products [spices/foodstuff] of AFI
MANAGEMENT STRUCTURE

BUSINESS
PARTNERS

PURCHASE MARKETING FINANCE

MANAGER MANAGER MANAGER

EXPORT
FACTORY MANAGER
MANAGER
 EXECUTIVE SUMMARY

• MARKETING DEPARTMENT
• PROCESSING DEPARTMENT
• EXPORT DEPARTMENT
• FOREIGN TRADE DEPARTMENT
• ACCOUNT DEPARTMENT
• FINANCE DEPARTMENT
• COST & PRICING
• CONCLUSION
 Marketing AFI apply
department For pre-
receive an Shipment loan.
order.
Settlement of Bank sanction 65%
bank account. to 85% loan with
interest

Buyer pay cash & AFI purchase

receive container raw material

Processing/packaging
Firm’s bank send completes
Document to buyer
Bank
MY LEARNING

Fumigation certificate
Post shipment
will issue.
document submitted to
bank

Shipping line Self-sealing/Excise

issue B/L Sealing

Apply for
Containers post
loaded on Bank shipment
ship by CHA sanction loan
100%
loan
EXPORT
• DOCUMENT
1. PRE-SHIPMENT INVOICE.
2. POST-SHIPMENT INVOICE.

• SPICE-BOARD
1. AFALATOXIC.
2. SUDAL
• ANNEXURE

1. EXCISE SEALING.
PART. WORKINGDAY HOLIDAY
SUPRITENDENT 85 Rs 140 Rs.
INSPECTOR 75 Rs. 105 Rs.

2. SELF-SEALING.
• BILL OF LADING.
1. RECEIVED FOR SHIPMENT.
2. SHIP ON BOARD.

• PROCEDURE
1. DIRECT TRADING.
2. FACTORY STUFFING.
• PURCHASE BILL

1. REGISTERED DEALER PURCAHSE

 C FORM
 H FORM

2. UNREGISTERED DEALER PURCHASE

• CUSTOM HOUSE AGENTS.

 N. S. BHANUSHALI.
 M. M. INTERNATIONAL.
FOREIGN TRADE
• EXPORT AND TRADING HOUSE

 CERTIFICATE OF REGISTRATION
AS EXPOTER

 REGISTRATION CUM MEMBERSHIP

CERTIFICATE
• INCENTIVES / CREDIT

 DUTY ENTITLEMENTPASSBOOK SCHEME

[1.5% credit]

 VISHESH KRISHI AND GRAM UDYOG YOJANA

[5% credit]
FINANCE CONCERN TO,

• BANKING TRANZATION
• WORKING CAPITAL MANAGEMENT
• COLLECTION OF FUNDS
• CREDIT PERIOD
FINANCIAL DATA.doc
 PART-2

COST & PRICING

 Cost

• Raw material cost

• Loading cost
• Transportation [purchase]
• Electricity
• Processing cost
• Labor cost
• Shortage
• Container cost
• Agency charges
• Handling cost + Service tax
• Fob exp.
• Freight
• Bank charges
 Price

• Total Cost
• Profit
 Factory to port transport expense

20 feet 40 feet
Factory to, container container
[Rs.] [Rs.]
Mundra 17500 18500

Kandla 15000 16000

 Ocean freight charges

Particular 20 feet 40 feet

container[$] container[$]
Jeddah port 375 700

Algeria port 400 700

Kuwait port 550 950

Dubai 181 306

Yemen 600 800 to 900

 Free on board expense from factory

Kandla Kandla Mundra Mundra

Particulars
20 feet 40 feet 20 feet 40 feet

Transportation 15000 16000 17500 18500

Handling o/h 5500 8500 5500 8500

Loading
450 675 450 1000
charges

Agency charge 1850 2500 1850 675

Total
23800 28675 26300 2500
expenses
 Free on board expenses from port

Particular 20 feet 40 feet

Handling cost + 5500 + service tax 8500 + service tax

service tax [2%]
Fare charges 1000 1000

Loading charges 450 675

Agency cost 8800 2500

Total expense 8800 12675

COST & PRICE CALCULATION
 Cost & price of fennel seed

• Product segment - Good quality

• Exchange rate - 47.20
• Quantity - 14 mtt
• Port of loading - mundra
• Port of discharge - Yemen
• Container size - 40 ft.
 Particulars Amt. Amt.
[Rs.] [$]
Prod. cost [per mtt.] 65000 1377.11
Container cost 15000 317.79
Fob exp. 10000 211.86
Freight 35400 750
Total per ton.cost 69313.67 1468.51
Bank charges[2%] 1385.79 29.36
Total cost 70699.46 1497.87
Profit [4%] [per mtt] 2827.75 59.91
Total price [per mtt] 73490.4 1557.78
Total price [14 mtt] 1029381.024 21808.92
 Cost & price of Chilly Powder

• Product segment - No.1 quality

• Exchange rate - 47.20
• Quantity - 20 mtt
• Port of loading - kandla
• Port of discharge - Dubai
• Container size - 20 ft.
Particulars Amt. Amt.
[Rs.] [$]

Prod.cost [per mtt.] 40000 847.45

Container cost 15000 317.79
Fob exp. 8800 186.44
Freight 8528.72 181
Total per ton.cost 41546.17 881.71
Bank charges[2%] 832.60 17.64
Total cost 42449.32 899.35
Profit [5%] [per mtt] 2124 45
Total price [per mtt] 44573.32 944.35
Total price [20 mtt] 891466.4 18887
 Cost & price of Turmeric Whole

• Product segment - Premium quality

• Exchange rate - 48
• Quantity - 25 mtt
• Port of loading - kandla
• Port of discharge - Kuwait
• Container size - 40 ft.
Particulars Amt. [Rs.] Amt. [$]

Prod.cost [per mtt.] 103000 2145.83

Container cost 15000 312.50

Fob exp. 12675 264.06
Freight 45600 950
Total per ton.cost 105930.72 2206.89
Bank charges[2%] 2117.76 44.14
Total cost 108049.92 2251.04
Profit [10%][permtt] 10804.8 225.1

Total price [per mtt] 118854.24 2476.13

Total price [25 mtt] 2971358.88 61903.31
 CONCLUSION

• THERE IS LACK OF COORDINATION AMONG

DOCUMENTATION, FINANCE AND
WAREHOUSE DEPARTMENT. WHICH IF
IMPROVED CAN SAVE LOT OF TIME AND
THERE BY COST.

• INCREASE PRODUCTION CAPACITY TO

MEET DEMAND
 CONT…

• AFI STILL NEEDS TO MAKE ITS PRESENT FELT IN

INTERNATIONAL SPICE MARKET AS QUALITY
EXPORTR OF SPICES. AFI NEEDS TO IMERGE AS A
NEW BRAND BY ENGAGING MORE INTO
INTERNATIONAL FOOD FESTIVALS. SO THAT
THERE IS EQUAL PUSH AND PULL FACTOR IN
TERMS OF SALES.
AMOUNT SPENT ON ADVERTISING AND
MARKETING YER WILL GIVE GOOD AND
SATISFACTORY RETURNS.