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Re-configuration the distribution network and

possible use of multimodal transport


An Internship report submitted in partial fulfillment of requirements for

Masters of Business Administration (Logistic and supply chain management)

May-July, 2105

Under the Guidance of

Internal Mentor: External Mentor:

Balaram Swamy Jutta Mr. Kaushal singh

Industry Fellow, UPES Dehradun Asst. Manager Logistic, Adani Wilmar

Submitted by

Abhay Kumar Singh

SAP id: 500034068

Enrollment Number: R600214001

Masters of Business Administration (Logistic and supply chain management)

2014-16

College of Management & Economics Studies, UPES

1
Student Declaration
I hereby declare that this submission is my own work and that, to the best of my knowledge and belief, it
contains no material previously published or written by another person nor material which has been
accepted for the award of any other degree or diploma of the university or other institute of higher
learning, except where due acknowledgment has been made in the text.

Signature of the student

Abhay Kumar Singh

SAP id: 500034068

Enrollment Number: R600214001

MBA (LSCM)

2014-16

College of Management & Economic Studies, UPES

2
Acknowledgement
In the process of carrying out any research, the researcher would have received help from different
persons and organizations. So, all those helps should be acknowledged under this heading. In an academic
research, a sample list of people who are to be acknowledged is as follows:

Internship mentor (both industry mentor and faculty mentor)


Organizations heads
Colleagues of the department (both industry and university) who rendered their valuable
suggestions and criticism during the summer internship period
The executives in different organizations who provided data and literature for the research.
The type setting office and personnel.

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Certificate
This is to certify that the summer internship report entitled Multimodal transport submitted by Abhay
Kumar Singh to UPES for partial fulfillment of requirements for Masters of Business Administration
(Logistic and supply chain management) is a bonafide record of the internship work carried out by him
under my (our) supervision and guidance. The content of the report, in full or parts have not been
submitted to any other Institute or University for the award of any other degree or diploma.

Signature of Industry mentor

Mr. Kaushal singh

Asst. Manager Logistics

Adani Wilmar Limited

College of Management & Economic Studies, UPES

4
Certificate
This is to certify that the summer internship report entitled Multimodal transport submitted by Abhay
Kumar Singh to UPES for partial fulfillment of requirements for Masters of Business Administration
(Logistic and supply chain management) is a bonafide record of the internship work carried out by
her/him under my (our) supervision and guidance. The content of the report, in full or parts have not been
submitted to any other Institute or University for the award of any other degree or diploma.

Signature of Faculty mentor

Balaram Swamy Jutta

Industry Fellow

College of Management & Economic Studies, UPES

5
List of Figures
Figure no. Page no.

1. Brief history 14

2. Mundra plant of Adani Wilmar.. 15

3. Brands 16

4. Fortune rice bran health.. 17

5. Fryola (Special product for frying purpose) 17

6. Avsar (Vanspati ) 17

7. Bullet kachi ghani mustard oil.. 18

8. Raag gold. 18

9. Fortune besan 18

10. Fortune Pulses 18

11. Jubilee masterchef bakery... 19

12. Alpha cookwell... 19

13. A-kote red... 19

14. Wilkrim... 19

15. Product portfolio. 20

16. Supply chain type-1 21

17. Supply chain type-2 21

18. Pie chart of market share 23

19. Supply chain of pulses 27

20. Decoupling point. 27

21. Supply chain of oil industries by truck 30

22. Supply chain of oil industries by train. 31

23. Supply chain of industries (directly to customer) 31

24. Picture of material maintance paper in depot.. 34

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25. Multimodal transport by truck. 37

26. Multimodal transport by train. 38

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List of Abbreviations
APSEZ Adani Port and Special Economic Zone

AWL Adani Wilmar Limited

D.O Delivery Order

EDI Electronically Data Interchange

IT Information Technology

FMCG Fast Moving Consumer Goods

FMFO First Manufacture First Out

MMT Million Metric Tonne

MTO Multimodal Transport Operator

MT Metric Tonne

NTPC National Thermal Power Corporation

ROI Return on Investment

SAP System, Application and Products

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C O N T E N T
Sl. # Topic Page No.

01. Declaration I

02. Acknowledgement II

03. Certificate of Industry Guide III

04. Certificate of Faculty Guide IV

05. List of Figures VI

06. List of Abbreviations VII

07. Executive Summary 11

08. CHAPTER 01: The Company, Customers and Competitors 12-25

1.1. The Company and the Group 12

1.2. Customers and Markets 21

1.3. Competitors Generic and Substitute Products and Manufacturers 22

14. Industry Analysis Michael E. Porters Five Forces Model 24

1.5. Discussion 25

09. CHAPTER 02: The project area and objective 26-42

2.1. Mapping the supply chain of Adani Wilmar Limited, Haldia 26

2.2. IT Application and Automation 32

2.3. Warehouse and depot management 33

2.4. The project area 36

2.5. Objective 42

10. CHAPTER 3: The Research Methodology 43-44

3.1. Introduction 43

3.2. Research objective 43

3.3. Research design 43

3.4. Exploratory design 43

3.5. Qualitative approach 43

11. CHAPTER 4: Data, Analysis and, Inferences 45-48

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4.1. Data 45

4.2. Analysis 47

4.3. Inferences 48

12. CHAPTER 4: Recommendation 49

13. Appendix- I (Questionnaire) 50-52

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Executive Summary
This report provides an analysis and evaluation of the current multimodal transportation system used in
Adani Wilmar limited. In this research we have to find which mode of transportation is best and cheapest
mode of transportation. As we know that, in todays world different mode of transportation is used for
transportation of goods from one place to other place. So, I have to analyze which is best as well as
cheapest mode of transportation.

Results of data analyzed show that railway is the best and cheapest mode of transportation. In particular,
comparative performance is poor in the area of road transportation.

The report finds that transportation of goods is completely based on the demand. The transportation is
completely based on demand, so mode of transportation is chosen accordingly. The major areas of
weakness require further investigation and remedial action by management. Recommendations discussed
include:
Improvement in area of warehouse management.
Demand forecasting should do more accurately so that trucks dont have to wait in a
queue in warehouse.
We can improve transportation by using hub and spoke model for reduce the cost and
better connectivity.

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CHAPTER 1

Company, Customer and Competitor


1.1 The Company and the group

Adani Group is an Indian multinational conglomerate has diversified into various companies basically
dealing in the fields of Energy, Logistics, Agribusiness and Resource Trading:

Adani Power Ltd.


Adani Retail Ltd.
Adani Wilmar Ltd.
Gujarat Adani Energy Ltd.
Adani Mining ltd.
Gujarat Adani Port Ltd.
iCall India Ltd.
Mundra Port and Special Economic Zone Ltd.
Adani Agri Logistics Ltd.
Adani Agri Fresh Ltd.
Adani Properties Ltd.
Adani Welspun Ltd.
Largest distribution network among all branded edible oil players in India
More than 93 stock points
5000 distributors
Approx. 1 Million outlets all over India
Adani Group is an Indian multinational conglomerate company headquartered in Ahmedabad,
Gujarat, India. Its diversified businesses include resources, logistics, and energy sectors. The Group is the
largest port developer and operator in India with Mundra being the countrys largest commercial port. The
Flagship Company of the Adani group is Adani Enterprises Limited. In April 2014, it added the 4th unit
of 660 MW at its Tiroda Power plant, making Adani powers the largest private power producer of the
country
.The company was founded in 1988 as a commodity trading business. First generation
entrepreneur Gautam Adani is the founder & chairman of Adani Group. According to Mr Gautam Adani,
The Group was created with a vision of Nation Building by developing assets of national economic
significance. This reflects in the choice of businesses the group has entered and developed over the years.
In 1990, Adani group develops its own port Mundra port. In 1995, Adani started construction at Mundra.
In 1998, it became the top net foreign exchange earner for India. Soon in 1999, the company commenced
coal trading, followed by a joint venture in edible oil refining in 2000 by forming Adani Willmar.
The groups second phase started with the creation of large infrastructure assets. The company established
a portfolio of ports, power plants, mines, ships and railway lines within and outside India. In 2002, Adani
handled 4 million MT of cargo at Mundra, becoming the largest private port in India. Later in 2006, the
company became the largest coal importer in India with 11 million MT of coal handling.

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The company expanded its business in 2008 as they bought Bunyu Mine in Indonesia having 180 million
MT of coal reserves. In the subsequent year, the firm started 330 MW thermal power generation, followed
by 2.2 million MT per annum edible oil refining capacity in India.
Adani Enterprises is the largest trading house of India in importing coal with a market share 60%. It also
supplies coal to NTPC, India. Adani group became India's largest private coal mining company after
Adani Enterprises won the Orissa mine rights.
In 2011, Port of Dahej became operational and now has a capacity of 20 million MT capacity. The
company also bought Galilee Basin mine in Australia with 10.4 billion MT of coal reserves. It also
commissioned 60 million MT of handling capacity coal import terminal in Mundra, making it the worlds
largest.
Further in the same year, the Adani group also bought Abbot Point port in Australia with 50 million MT
of handling capacity. It also commissioned Indias largest solar power plant of 40 MW. As the firm
achieved 3960 MW capacity, it became the largest private sector thermal power producer in India.
In 2012, the Adani Group took the next phase of growth. It has embarked on the third phase of
development an integration infrastructure business. It revamped its logo and developed a new identity.
The company focuses on three important business clusters that include resources, logistics and energy.
In 2014, Adani Power emerged as Indias largest private power producer. Adani Power's total installed
capacity now stands at 9,280 MW.
Mundra Port, the flagship port of Adani Ports and SEZ Ltd. (APSEZL), has achieved a new landmark of
handling 100 million metric tonnes in FY 13-14. Mundra is the only commercial port in India to have
achieved such a unique feat. APSEZL, Indias largest port developer and operator is part of the Adani
Group.
On 16 May 2014, Adani Ports acquired Dhamra Port on East coast of India for Rs 5,500 crore. Dhamra
Port was 50:50 joint ventures between Tata Steel and L&T Infrastructure Development Projects which is
now acquired by Adani Ports. The port commenced operations in May 2011 and handled a total cargo of
14.3 million tonnes (MT) in 2013-14. The acquisition of Dhamra port will help the company ramp up its
capacity to over 200 million tonne by 2020, making it a leader among private sector port operators in the
country.
Ports controlled by Adani Group are:

Adani Mundra Port


Adani Hazira Port
Adani Murmugoa Coal Terminal
Adani Vizag Coal Terminal Pvt. Ltd.
Adani Petronet Port Pvt. Ltd. (Dahej)
Adani Kandala Bulk Terminal Pvt. Ltd.
Adani Dhamra Port
Adani Ennore Port

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Brief history (Diagram)1:-

1988: Commodity Trading Firm, quick growth and diversification into import and
export

1990: Developed Mundra Port

1999: Energy Trading (Coal)

2000: Formed Adani Wilmar Ltd. with Willmar International

2002: Mundra became the largest private port in India (4 MMT)

2006: Became the largest coal importer (11 MMT)

2008: Expansion into Mining and Power sectors

2012: Revamping of Image and further expansion

2014: Became Indias largest power producer

Fig. 1

1
Source: https://en.wikipedia.org/wiki/Adani_Group

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The corporate headquarters of the company is situated in the city of Ahmedabad.
Founder: - Gautam Adani
Revenue: - $ 9.389 bn
Net income: -$ 0.371 bn
Net assets: - $ 17.353 bn (Adani group, 2014)
Return on assets: - 0.021372
Number of Employee: -10,400 (Adani group, 2014)
Number of refinery all over India: - 22

Fig. 2. Mundra plant of Adani Wilmar

It owns Fortune, Indias largest edible oil brand through a joint venture with Willmar in Singapore. Adani
Wilmar Limited (AWL) is a joint venture incorporated in January 1999 between Adani Group, the leaders
in International trading & Private Infrastructure with businesses in key industry verticals - resources,
logistics and energy and Wilmar International Limited - Singapore, Asia's leading Agri business group.
Capacity: -Today, AWL owns refineries in 22 strategic locations across India, has 8 crushing units and 19
packing units. Cumulatively, this translates to a refining capacity of over 10300 tonnes per day, seed
crushing capacity of 7485 tonnes per day and packaging capacity of 8500 tonnes per day.

Distribution: -AWL has the largest distribution network among all branded edible oil players in India,
with more than 93 stock points, 5000 distributors and *10% Retail Penetration which spans across
approx. 1 Million outlets all over India.

Brands: -Fortune is the most prestigious brand in the Adani Wilmar Products portfolio. Fortune
became the no.1 brand in the market within just 2 years of its launch and still continues to be a leader.
Readers Digest honored Fortune as the Most Trusted brand for 4 years, most recently in 2014, and it was
adjudged as a The Economic Times Best Brands 2014. Also, it has been chosen as the Most Valuable
Brands for the year 2013-14.Besides these it has also won Mint Strategy Award in September
2014.Fortune has grown from strength to strength and continues to deliver the joy of eating to Indian

2
ROA=Net Income/Net Asset

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households. Fortune not only has the largest range of cooking oils in India, but also continues to innovate
and lead the cooking oil industry with new introductions recurrently.

Adani Wilmar has a range of premium edible oils, vanaspati, packed Basmati Rice, pulses, Soya
Chunks and also the first national brand in besan. It also has a range of customised specialty fats for
institutional customers. The product portfolio of Adani Wilmar spans under various brands such as -
Fortune, Kings, Bullet, Raag, Avsar, Pilaf, Jubilee, A-Kote, Fryola, Alpha and Aadhaar. It has the largest
portfolio of brands in the Indian edible oil industry. It goes to great lengths to deliver its brand promise
For a healthy growing India.

Following the success in India, AWL introduced branded Edible oil to Middle-East and is now exporting
its products to more than 19 countries in the Middle-East, South East Asia & East Africa including
Singapore, Australia & New Zealand (all these data taken from (about us: Adani wilmar, 2010)).

Cause for success

The one common thread that runs across all food recipes at least in urban India is the excessive
use of oil.
India is the worlds second largest producer of oil seeds contributing nearly 7% to the global
production.
The country is also the worlds second largest importer of edible oils.
Edible oil industry in India is pegged at 13 million tons per annum.
Per capita consumption of about 12 kilos.
It goes to great lengths to deliver its brand promise For a healthy growing India. Some of Adani Wilmar
Flagship products are:

Consumer Essentials:

1. Fortune
2. Fryola
3. Kings
4. Bullet
5. Raag
6. Avsar
7. Alpha
8. Aadhaar
9. Alife
The basic segmentation of edible oils is:
Fig. 3 Brands
Sunflower
Soya
Rice Bran
Mustard
Groundnut
Other Products:

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Besan made from Chana Dal
Pulses: Arhar and Chana
Soya chunks
Rice: Basmati and Long grain
Industry Essentials:

Special fats used in Baking, for filling and other purposes.

Some of the products image of Adani Wilmar: -

Fig. 4 Fortune Rice Bran Health

Comes in: 5 liters jar, 1liter pouch

Source: http://adaniwilmar.com/ProductDetails/Fortune/2

Fig. 5 Fryola (Special product for frying purpose)

Comes in: 15 Liter tin, 1 liter pouch

Source: http://adaniwilmar.com/ProductDetails/Fryola/2

Fig. 6 Avsar (Vanspati )

Comes in: Pouches - 200 ml, 500 ml, 1 litre,


Barni - 2 litres, 5 litres, 15 litres, 15 kgs |
Tins- 15 litres, 15 kgs

Source: http://adaniwilmar.com/ProductDetails/Avsar/2

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Fig. 7 Bullet - Kachi Ghani Mustard Oil
Comes in: Pouches - 1 litre |
PET Bottles - 200 ml, 500 ml, 1 litre |
Jerry Cans - 2 litres, 5 litres, 15 litres
Tin - 15 kgs |
Barni (wide mouth) - 2 litres, 5 litres

Source: http://adaniwilmar.com/ProductDetails/Bullet/2

Fig. 8 Raag Gold


Comes in: Pouches - 500 ml, 1 Ltr |
Jerry Cans - 15 litres |
Tins - 15 litres, 15 kgs

Source: http://adaniwilmar.com/ProductDetails/Raag/2

Fig.9 Fortune Besan


Comes in: Pouches 200 gm, 500 gm, 1 kg
Sacks 10 kgs, 25 kgs, 35 kgs

Source: http://adaniwilmar.com/ProductDetails/Fortune%20Besan/2

Fig. 10 Fortune Pulses


Comes in: Pouches: 500 gm, 1 kg
Sack: 30 kgs

Source: http://adaniwilmar.com/ProductDetails/Fortune%20Pulses/2

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Jubilee Masterchef Bakery Shortening has five variants:
Brown Label - For premium biscuits, soft cookies, cakes, pies
and as a filler fat
Yellow Label - For puffs, Danish pastries, khari, faen and
bakar-khani and other premium puff products
Green Label - For biscuits, cookies and cakes
Red Label - For economic solution of all bakery applications
Gold Label - For premium puffs, Danish pasteries, khari, faen
and bakar-khani.
Comes in: Bag in Box: 15kgs

Fig. 11 Source: http://adaniwilmar.com/ProductDetails/Jubilee%20Masterchef/2

Fig. 12 Alpha Cookwell

Alpha Cookwell is a premium quality vanaspati, granulated and


produced from a unique combination of hydrogenated palm, palm
kernel, soybean and sunflower oils.

Comes in: Tins - 15 kg

Source: http://adaniwilmar.com/ProductDetails/Alpha%20Cookwell/2

Some Lauric Range Products are:-

Fig. 13 A-Kote Red


A-Kote Red is from non-lauric oils under the most selective
conditions of fractionations and dehydrogenation processes.
Comes in: 15 kg Bag in box

Fig.14 Wilkrim
Frozen Dessert fats category: They are made from vegetable oils
which generates excellent mouth feel and are economical, odour less,
good for health.

Comes in: 20 kg Bag in box

Source: http://adaniwilmar.com/ProductDetails/Lauric%20Range/2

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Fig. 15 Product portfolio (Diagram):-

Products

Edible Oil Rice Besan & Pulses Soya Chunks

Fortune Fortune Fortune soya


Fortune Besan
Basmati chunk

Kings
Fortune Pulses
Pilaf
Bullet

Ragg

Avsar

Fryola

Aadhaar

Alpha

Alife

Jubilee

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1.2 Customer and Market

Adani Wilmar caters demand of all region of the country. Adani Wilmar accounts of 20% market in
edible oil segment (Business standard, 2014). But its prime focus is in northern part of the country (like in
Delhi, Uttrakhand, Punjab, Uttar Pradesh, and Bihar) where fortune remains No. 1 brand. And in southern
part of India Adani Wilmar prime focus is sunflower oil. As in southern part of India people prefer
sunflower oil rather than palm oil. As Adani Wilmar focus is edible oil and some other grocery products
(like dal, besan, rice, badi). So its supply chain also works accordingly.

The refineries of different kinds of oil are also located very strategically. Southern part of country is
prefers sunflower oil so; most of the sunflower oil refinery is located in southern part of India. In this way
they can easily caters to the demand of southern part of the country as well as they can also reduce the
logistic cost of the company. And eastern part of India (like Orissa, Jharkhand, Bihar, West Bengal) all
these regions catered by Haldia plant as demand of plam and soya oil is more so; Haldia plant focus on
plam and soya oil refinery. In Haldia, besan and dal plant is also there; they are under the brand name of
fortune. Basically dal and besan have same supply chain as oil. Mostly demand of dal and besan comes
from utter Pradesh and Bihar.

Adani Wilmar follows 2 kinds of supply chain:-

1. In this supply chain, when the packaging of goods is done in factory and the product is ready to
dispatch from the warehouse. Then the carton are loaded in truck or train and dispatched to the depot.
Then the goods are unloaded in the depot. And then stored in the depot when demand of goods comes
from market then distributor place the order to the depot and then the goods are dispatched to the
distributor. Then the goods are again delivered to the retailer and ultimately the product is delivered to the
consumer.

Factory Depot Distributor Retailer Consumer

Fig.16 Supply chain type 1

2. In this supply chain, when the packaging of goods is done in factory and the product is ready to
dispatch from the warehouse. Then the carton are loaded in truck and dispatched to the institutional shops
(like Reliance fresh, Future bazar, etc.). Then the goods are unloaded in the warehouse of the institutional
shops. The goods are placed in the shelf of the super market. Then the customer will come and select the
goods.

Factory Institutional Consumer


Shops

Fig. 17 Supply chain type 2

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1.3 Competitor

Generic and substitute, Product and Manufacturer

Adani Wilmar Limited is major player in edible oil segment because of its brand fortune and turnover of
Adani Wilmar is Rs. 17300 crore (Telegraph india, 2014) in year 2013-14. But many other market players
are also there in the market in edible oil section. We are taking account of top 5 market player. Now we
will compare these market players with Adani Wilmar. It will give us the exact data where Adani Wilmar
stands in front of their competitors. We consider these companies as a competitor because of the
following reason: -

By comparing financial data (like net income, value of asset and ROI) with Adani Wilmar
limited.
Their market share.
Their penetration in different region of the country.

Major competitors of Adani Wilmar are Following: -

1. Ruchi Soya Industries Limited Ruchi Gold, Nutrela, Mahakosh.

2. Mother Dairy Dhara.

3. Cargill Gemini, Nature fresh, Sunflower vanaspati, Sweekar.

4. Agro tech food Ltd. Sundrop.

5. Marico Saffola

Mustard oil can act as a substitute of Fortune but as mustard oil consists of lots of fat therefore it is less
preferred.

1. Now, market share of ruchi is 18 %. The southern region of India accounts for 70% market share in
sunflower oil segment. Ruchi is a major player in sunflower segment

Turnover of ruchi soya = Rs. 16000 cr. (economic times, 2014)

2. Dhara oil enjoy 9% market share in edible oil section (economic times). Dharas turnover is Rs. 725 cr
(mother dairy, 2014).

3. Cargill market share in edible oil section is around 11% and annual turnover is Rs. 1500 cr.

4. Sundrop market share in edible oil section is 13.8% (India Brand Equity Foundation, 2014) and annual
turnover if Rs. 450 cr.

5. Marico market share in edible oil section is 8% as the market share of saffola is the brand under
Marico. It has a turnover Rs. 4,687 cr (Marico, 2014).

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Fig. 18 Pie chart Representation of these brands in the market:-

Market share

Adani wilmar
ruchi
Mother dairy
Cargill
Marico
Agro tech food ltd.
others

So, By analyzing this figure we can conclude that Adani Wilmar Ltd.s fortune is an undisputed leader in
the market.

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1.4 Industries Analysis Michel E. Poter five force model

1.4.1 Threat of new entrance: - Edible oil business is very old in this world. Initially most of the things are
manual but now a day we can say that entire business is moving towards automation. India is a big
country and people prefer oily things to eat. So, in India edible oil companies may be more than thousand
(which may be registered or unregistered) in number. But by looking at the market share of Adani Wilmar
in edible oil segment we can say that fortune is well established brand in the market. Edible oil segments
also a profitable. So new player may come in to this segment but they should have something new or
different (Like new technology, better method for cost leadership,) than existing brands; then only they
may survive in the market otherwise new entrance is not possible.

1.4.2 Threat of substitute product or service: -We can consider mustard oil as a substitute of the fortune
but as todays generation is more concern about health so most of the consumer will take prefer fortune as
in mustard oil consist of fat. And price of some refined oil is also less than mustard oil people may prefer
to consume refined oil rather than mustard oil.

1.4.3 Bargaining power of customer: -Fortune is a well establish brand amongst consumer. There is large
number of alternative present in the market (like its competitors). But refine oil have a loyal customer
base as the price of some variant is less than its competitor. So bargain power is there but due to its
strategies (like cost leadership, loyal customer base) Adani Wilmar is doing its business smoothly. So, as
we see that the customer thinks that price of fortune is appropriate and they will easily pay for it.

1.4.4 Bargaining power of suppliers: -Adani Wilmar Limited has certain fixed number of supplier and
Adani Wilmar also defined term and conditions on which they will procure the raw material from its
supplier. So these approaches narrow down any bargaining threat from suppliers side. Company only
buy raw material from outside and packaging materials (like tins, bottles, jars) are manufactured inside
the factory. So this approach also helps the company to narrow down its suppliers as well as their bargain
power. But the transportation of goods or logistics part is outsourced; as name and number of transporters
are fixed but the transportation charge is decided as per the day rate i.e. there is no fixed rate for
transportation of goods from one place to other whatever the day rate is there Adani Wilmar have to pay
to the transporter. This approach also increases competition amongst transporters. So the power to
supplier is also limited.

1.4.5 Intensity of competitive rivalry: -Fortune is well established brand in the market. Market penetration
is very good in the market and but improving quality of the product they do have a competitive advantage
over its competitor

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1.5 Discussion

Fortune is a well establish brand in market and the company is also growing at exponential rate. Now
companys focus is in diversification of the business. As the company wants to diversify in new segments
like pulses, rice and badi under the brand name of fortune. Initially rice was launched with a new brand
name pilaf but in May 2015 Adani Wilmar decided to launch it again under the brand name of fortune.
As pulses are new segment in Adani Wilmars product portfolio so they have only one production unit
which is located in Haldia plant.

Adani Wilmar also manufacture its packing material like 15 liter jar, 5 liter jar, 2 liter jar, 1 liter bottle,
and 15 liter tin etc. These activities give company a competitive edge over its competitor and with the
help of this, company is generating economies of scale. Only cap is coming from outside.

In Haldia factory, Adani Wilmar is using new technologies which improve the quality of the products. As
they have high speed packing machine which can pack up to 50 packet/min. Space utilization in
warehouse in Adani Wilmar plant in Haldia is also very good as they are using horizontal as well as
vertical space. Overall capacity of warehouse is 2000 tonnes and daily production is around 1000-1200
tonnes of oil. So, Warehouse is almost full every time so very less space for forklift movement.
Movement of goods inside warehouse is done with the help of manual forklift (Trolley). Company should
also work to increase the size of warehouse or shift some work to other place.

Adani Wilmar policies also help company to grow further. Like company give credit for maximum 21
days, companies strict labor law. Places in which the plants are located is also gives a competitive
advantage. All major plants are near port which helps the company to import crude from outside India and
process them and then dispatch to the market.

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Chapter 2

The project area and objective


2.1 Mapping the supply chain of Adani Wilmar Limited, Haldia

Multimodal transport refers to a combination of at least two means of transport. This results in an
integrated transport chain where the strength of each alternative is utilized. Main characteristics of
multimodal transportation are transshipment terminals that allow efficient cargo handling between short-
distance and long-distance traffic as well as application of standardized and reusable loading units.

Some objectives of this project

To find the best way to transport the goods from one place to other place like factory to depot.

To find the cheapest way to transport the goods from factory to depot.

In Haldia, Adani Wilmar Product segment constitutes Pulses, and Edible oil. First we will discuss about
the pulses plant supply chain:-

Input: - Yellow Pea With ingredients (which is imported from Canada, USA, or Singapore)

Output: - Besan, and Pulses

Volume: - Production capacity of pulses plant is 100 tonnes.

Pulses are a new product segment of Adani Wilmar. And its first and only plant is in Haldia. Adani
Wilmar setup this plant in 2014. And it is operational form last year. So until no seasonality demand
pattern is observed in pulses. In pulses value addition is done during operational stages (like). At last the
finished goods are stored in the plant warehouse until the demand form customer side came.

For pulses they use depot or distributer. Adani Wilmar also delivers the finish good directly to the party3.
As this is a new segment for Adani Wilmar so seasonality, trend, forecasting is not done.

3
Party means the individual retail customer or institutional shops.

26
Yellow
peas are Crushing
Ships Kolkata Trucks Haldia and
imported
Port Trust plant packing
from
Canada,
USA

Crushing Stored in
and the Plant
Directly to the customers Retailer Consumers
packing warehouse
for delivery

Fig. 19 Supply chain of pulses

Edible oil supply chain

Adani Wilmar supply chain is leagile4 in nature. As until depot they use lean production approach but
after depot the demand is completely based from customer side. Whenever consumer demand increases
the goods are retailer place order to the distributor and then distributor dispatch the goods from depot. So
depot is their decoupling point. And some value addition is done in the depot. As some of the cartons is
destroyed in transit and these are replace with new cartons in the depot. So this is the only value addition
done at later stage.

Oper Depo Distri Retail Cons


Plant
ation t butor er umer

Lean Agile

Decoupling Point

Fig. 20 Decoupling point

4
Lean +Agile= leagile

27
Adani Wilmar forecast the demand with the help of previous years sales data which is available in their
SAP system. In the head office Ahmedabad, First sales data is collected from each zone. The regional
office also provides their sales data to head office. After collecting all these data they interpret the data.
And then next year plan is prepared.

After forecasting the demand, head office decide how much quantity is to be produce by which plant. The
production order is now provided to the plant manager. And plant manager is to divide the quantity to be
produce in each month.

Sales planning are also done at head office. As sales planning is done at strategic level. Company gives a
target amount to each distributer. The distributer has to sale at least that much amount of goods. Adani
have 85 depots all over the country. And Adani has distributer in each city that looks after the distribution
of goods to the retailer. Adani Wilmar provides target to every distributor they can sale goods more than
that which is also decided by Head Office, Ahmedabad.

Supply chain is control and monitor by region logistic head who look after the flow of goods from one
place to other place. It is also monitor and control at plant level he is responsible for warehouse
management as well as the movement of goods from one place to other. Company takes logistics
responsibility until the goods is delivered to the distributer. Once the goods are delivering to the
distributer companys supply chains responsibility is over.

Adani Wilmar has 3 different types of supply chain, which are based on basis of demand. But for all
models of supply chain few steps are common like crude is imported from Malaysia, Indonesia by ship.
The ship comes in Haldia Port. From Haldia port to Haldia plant the crude is delivering by pipeline. As in
to the Adani Wilmar has a pipeline network between Haldia port and Haldia plant.

The crude come into the plant value addition is made in the plants refinery. First crude is stored in a 100
tonnes container then it is transferred to the refinery for value addition. When value addition is done, the
refined oil is stored in a 100 tonnes vessel. Now the packaging of the oil starts at packaging section. After
packaging, the oil packets are place in carton and at last it is stored in factorys warehouse.

Edible oil business is also affected by seasonality. The sales data of each year show that during festival
season demand always increases. During winter season there is a huge demand increases. But there is
sharp fall in demand during summer season. As people reduces the consumption of oil and in market
different kind of seasonal fruit is available so people shift their focus towards those consumables.

Demand during peak season: - 1200-1400 tonnes

Demand in weak season: - 600- 800 tonnes

There is always stock available in the depot to cater or fulfill whenever there is a sudden increase in
demand.

Haldia plants feature: -

Daily production capacity= 1600 tonnes

Average daily production= 1200 tonnes

28
Cater to these regions= West Bengal, Bihar, Jharkhand, Orissa, Assam, Some part of utter Pradesh, Delhi,
Hyderabad.

About packaging material= Oil is Packed in different kinds of packages like pouches of different sizes,15
liter tin, 5 liter jar, 2 liter jar ,1/2 liter small bottle,1 liter bottle etc. All these materials are manufactured
inside the plant it help the organization to generate economies of scale. Only caps of jar is coming from
outside.

These are: -

1. Finished goods are delivering by truck.

In this model, finished goods are taken from warehouse to the depot by truck. With the help of this model
company cater small distribution order to different place. It also help in catering mixed products demand
like if someone wants in some depot there is a demand of 100 (15 liter) tin, 200 (12 liter) cartons and 500
(20 liter) cartons. This demand can be fulfilled with the help of this model.

Advantage

1. Company can easily fulfill small demand made by distributor.

2. Company can fulfill mixed5 demand.

Disadvantage

1. Cost of transportation is high.

2. It may take long time.

3. Not feasible for longer distance.

5
It is the combination of different variants of products like 100 (15 liter) tin, 200 (12 liter) cartons and 500 (20 liter)
cartons.

29
Finish
Crude is
Refining goods are
imported Haldia
Truck Ship Haldia Pipeline and stored in
from plant
Port packing plant
Malaysia,
warehous
Indonesia
e

Finish
goods are Consumer
Truck Truck Retailer
stored in Depot Distributor
plant
warehous
e

Fig. 21 Supply chain of oil industries by truck

2. Finished goods are delivering by train.

In a train, there are 42 racks and if company wants to deliver the goods by train then company have to fill
all these 42 racks. First the goods are carried to the loading points of the train then the train is loaded. All
42 racks have to be filled so company may deliver excess amount of goods then the demand of the region
(like in a region if demand is 1000 tin of fortune soya Oil, Company may deliver 2000 or more tin) as
company wants to utilize entire space of the rack. This model is uses when the companies have to deliver
the goods to a distant area whose demand is large. This model helps the company to reduce the logistic
cost.

Advantage

1. Used for delivery of bulk demand at distant region.

2. Helps in reducing the logistic cost.

Disadvantage

1. Company deliver excess goods then demanded. So depot might face problem in storing those goods.

2. Chances of waste of goods are high. As the goods are in huge quantity and it may remain for longer
period in the depot. It may happen that the materials gets expire.

30
Finish
Crude is goods are
Refining
imported Haldia stored in
Ship Haldia Pipeline and
from plant plant
Port packing
Malaysia, warehous
Indonesia e

Finish Rack
goods loadi Rack
Truck Train unloa Truck Truck Distri Consu
are ng Retail
ding Depot butor mer
stored point er
in point
plant
wareh
ouse
Fig. 22 Supply chain of oil industries by train

3. Goods are delivering directly to the party

From Haldia plant the goods may also deliver directly to the party, modern format stores or institutional
shop. These parties may send a truck directly to the plant warehouse or company may send the goods by
the truck to the party via depot. I.e. first the company sends the goods to the depot and then paper work I
done at the depot and then the goods is redirected to the party.

Crude is
imported Refining
Haldia Haldia and
from
Ship Port Pipeline plant packing
Malaysia,
Indonesia

Finish
Refining goods are Direct to
Tanker Consumer
and stored in customers
packing plant
warehous
e

Fig.23 Supply chain of oil industries (directly to party)

31
2.2 IT Application and Automation

IT Application

Company is using SAP which is used for information sharing tool. IT use in dispatching goods from
Adani Wilmar is these following steps: -

1. Whenever a truck arrives at factory D.O (Delivery Order) is generated in SAP system.

2. Then vehicle and driver detail is recorded in SAP then the vehicle is allowed in the factory premises.

3. D.O it given to the supervisor and he update the amount of goods loaded by him the truck in SAP
system.

4. And ultimately the vehicle is dispatched from the factory.

SAP system keeps a record of every goods that is produced by the company and stored in the warehouse.
It also keeps record of every item which is restricted for quality check and blocked stock. SAP system
also keeps record of those materials which is in the area of rework because of leak or packaging defect.

With the help of SAP they also know how much item is left in which depot and accordingly they will
dispatch the goods from the factory warehouse to the depot. This information is available to the entire
organization. It helps in timely delivery of material of goods to the depot. Here EDI (Electronically Data
Interchange) is uses to keep track of the material at the depot. This system helps them to know in which
area demand is rising and in which area demand is falling and so that they can take corrective action on
these events.

SAP also help in generating sale planning, billing, credit policy, defaulter list, etc. Entire organization is
using SAP for different kinds of activity. As for forecasting initially data is collected from SAP database
and then forecasting and planning for the organization is done. Billing section keeps record of those
distributors whose bill is pending (As already discussed that credit policy of company is 8 days).

SAP system is also used by logistic department. As whenever a vehicle is dispatched from warehouse
SAP system keep record in the system until the goods are deliver to the respective warehouse or the
concerning person. When the transaction of good is finish the data is stored in data warehouse for future
reference.

Automation

Companys production process is fully automated. But packing of oil packet or jar in cartons is done
manually and then it is stored in warehouse of the plant. In warehouse only 2 forklifts are there for
movement of good from one place to other place. For loading of goods the pallets are moved with the
help of manual cart. The space within the warehouse is very less (as warehouse capacity is 2000 tonnes
and daily production is around 1000-1200 tonnes).

32
2.3 Warehouse and depot management

After packaging of products in their respective cartons the cartons are placed in pallet and then stored in
factory warehouse for dispatch. In Haldia, capacity of the warehouse is 2000 tonnes with daily production
of 1000-1200 tonnes. If for any reason dispatches of goods are block then it would cause a severe
problem for the production process, as space for finish goods is small. So warehouse management is very
important factor to run the production process smoothly.

In Haldia plant, warehouse management team faces lots problem but biggest of them is lack of space
for storing finish goods. They try to follow First Manufacturing First Out (FMFO) basis but due to lack of
space sometimes they found it is very difficult for them to follow this practice. Like; suppose todays date
is 5-may-2015 and there is a demand of 20 liters fortune cartons in the market and the labors loading
those material which are manufactured today itself but there are some 20 liters cartons those are
manufactured on 3-may-2015 and it is placed in upper row of vertical racks but it is blocked by some
other material (like 15 liter tin). Labors may not take interest in removing first those tin and then taking
those 20 liters box out for dispatch. So they load those goods which are manufactured today itself. Here
SAP plays a vital role as records of these kinds of material is there in the SAP system. When those
blocking material are removed with the help of forklift; those goods are there from 3-may-2015 are taken
for dispatch immediately.

So as we see that in plant warehouse, management sometime faces problem. Now we will discuss about
the depot of plant and try to find out how they are managing their material in the depot? As I visited 3
depot of Adani Wilmar these are:

1. Alampur depot, Adani Wilmar

2. Jaypore depot, Adani Wilmar

3. Jamshedpur depot, Adani Wilmar

In Alampur depot, material comes from different plants. Like: -

From Haldia plant they receive Vansapati, Refine oil, Fortune rice bran, Fortune soya oil, Fortune
dal and besan
From Delhi they receive Fortune basmati rice.
From Kakinada plant they receive sunflower oil.

In Jaypore depot, material comes from these plants: -

From Haldia plant they receive Vansapati, Refine oil, Fortune rice bran, Fortune soya oil, Fortune
dal and besan
From Delhi they receive Fortune basmati rice.
From Kakinada plant they receive sunflower oil.
From Vidisha, Madhya Pradesh they receive mustard oil.

Jamshedpur depot also receives goods from these plants.

33
Fig. 24 Picture of material maintenance paper in depot

Whenever goods arrive at the depot this material maintenance paper is maintained and placed at the top
of the stack. This material maintenance paper constitutes following element:

1st line: Stock send for dispatch is mentioned which means these good are ready for dispatch to the
respective party.

2nd line: Adani Wilmar Limited name of the company is mentioned in the sheet.

3rd line: In this line location of the warehouse is mentioned then number of the card is also mentioned in
the paper.

4th line: In this line Product Description is there, under this category; we have:

Date: - Date at which the goods arrives at the warehouse.


Invoice number: - Invoice number of the product.
Batch number: - Batch number mentioned at the cartons.
Manufacturing date: - Manufacturing date of the goods.

34
In the same line, stock quantity (cartons) is noted for the entire stack, it constitutes following:

Opening quantity:
Received quantity: Number of cartons received
Dispatched quantity: Those items which are already dispatched.
Closing quantity: Remaining number of cartons

At last expiry date is mentioned, in which date is mentioned at which the material is going to be expired.

Warehouse managers do not have access of the material at the company. So they cant see the material
available in the factorys warehouse. But if they want some product from the company then they can
place order by email or by calling to the logistic manager in the warehouse.

Whenever a new consignment reach in the warehouse they are kept at a different place in a proper stack
then this material maintenance paper is filled completely at that point and it is placed over the stack so
that it can give all information about the product. In warehouse they maintain First manufacture first out
(FMFO), it simply means that those products who are manufactured first will be delivered first.

35
2.4. The project area

Multi-modal transport

Multimodal transport refers to a combination of at least two means of transport. This results in an
integrated transport chain where the strength of each alternative is utilized. Main characteristics of
multimodal transportation are transshipment terminals that allow efficient cargo handling between short-
distance and long-distance traffic as well as application of standardized and reusable loading units.
However, combined freight transport can be organized in different ways. In general, trucks cover short
distances between the loading area and the transshipment point respectively between the place of arrival
and the recipient. Long-distance haulage is conducted by other means of transport such as train, ship or
even plane.

Multimodal transport is also known as combined transport; it is the transportation of goods involving at
least two types of transportation. To better understand the scope of multimodal transport, the United
Nations definition offers a more detailed perspective: International multimodal transport means the
carriage of goods by at least two different modes of transport on the basis of a multimodal transport
contract from a place in one country at which the goods are taken in charge by the multimodal transport
operator to a place designated for delivery situated in a different country

Normally, even if multiple carriers are involved, this is under the control of one carrier, called the
multimodal transport operator or MTO. The carrier is usually not the owner of all the transport facilities
utilized. In the United Nations definition, the transport is across countries so different laws complicate
matters.

To have a basic knowledge of multimodal transport, the manager involved is advised to study the
following issues:

Cargo consolidation: This is when smaller shipments are put together to save on transport charges and
also to improve security. What usually happens is that the freight forwarder tries to fill up a container load
with cargo from different companies to reduce freight expenses.

Shipping arrangements and services: Learn the advantages and disadvantages of different shipping
arrangements and services. Study what is most suitable for your type of cargo and delivery needs. Making
the right shipping arrangement could mean not only significant savings but also quicker delivery and
better condition of the goods on arrival.

Freight quotations and payment procedures: It is critical that you understand freight quotations and how
to do job costing, so you can choose the best price for your shipment. Know the payment procedures for
the transport services.

Cargo handling equipment: Know about the different cargo handling equipment used in ports and ships.
Note that yearly, thousands of container vans are reported lost at sea because of negligence in handling or
securing the containers. Included in this category is also determining the type of vehicles that will best
handle your cargo.

36
Legal aspects of multimodal transport: A large part of legal complications are due to the multinational
nature of the transport. There are different laws in each country. Not only that, it is also difficult to
pinpoint the legal liability.

Cargo handling, packaging, procedures and documentations: You must learn how the cargo is handled to
determine the proper service for your cargo. Other important things to learn are the right packaging to
protect cargo and to indicate how it should be moved. Finally, you must know the necessary procedures
and documentations relating to the cargo

Use of multi-modal transport in Adani Wilmar limited: -

Adani Wilmar limited uses multi-modal transport for transport of goods from one place to other place.
These are: -

1. Ships (Raw Factory Trucks (16,


20,25 tonnes)
material)

Distributor Small Carriers Depot


(3-10 tonnes)

Small vehicles Retailers


(tempo)

Fig. 25 Multimodal transport by truck

We can observe from the above figure that Adani Wilmar is using 4 transport modes for transportation of
good from one place to other place. Here rectangular boxes show the mode of transportation and elliptical
figures represents destinations. Like;

1. As earlier it is discussed that Adani Wilmar is imports its raw material from Indonesia, Malaysia, and
Canada. So, the raw material is carried to factory with the help of ship.

2. After factory the goods is dispatched to depot by trucks.

3. Then from depot to distributor small carriers (7- 10 tonnes trucks) will deliver goods.

4. At last from distributor the good are delivered to the retailer by small vehicles.

So, it is concluded that in this entire chain 4 transport modes are used these are ship, trucks, small carriers
(like 407), small vehicles (tempo). All these modes are owned by different carriers.

37
2.
Ships (Raw Factory Train
material)

Distributor Small Carriers Depot


(7-10 tonnes)

Small vehicles Retailers


(tempo)

Fig. 26 Multimodal transport by train

We can observe from the above figure that Adani Wilmar is using 4 transport modes for transportation of
good from one place to other place. Here rectangular boxes show the mode of transportation and elliptical
figures represents destinations. Like;

1. As earlier it is discussed that Adani Wilmar is imports its raw material from Indonesia, Malaysia, and
Canada. So, the raw material is carried to factory with the help of ship.

2. After factory the goods is dispatched to depot by trains.

3. Then from depot to distributor small carriers (7- 10 tonnes trucks) will deliver goods.

4. At last from distributor the good are delivered to the retailer by small vehicles.

So, it is concluded that in this entire chain 4 transport modes are used these are ship, trains, small carriers
(like 407), small vehicles (tempo). All these modes are owned by different carriers.

We know that, we have to find out which is the best way of transportation amongst: -

1. by road

2. by rail

3. by water

But form company, I can to know that they are not using waterways as it takes lots of time to transport
goods from one place to other place (i.e. more than one month) . By interviewing few people I came to
know that five years back Adani Wilmars Haldia plant did send some goods by waterway but it takes
one and half month to deliver that goods to its destination. So they decided not to use waterways. There
are various problem faced by ship or boat in Indian River some of them are: -

38
1. Water level is not suitable for boats.

2. Lack of port.

3. Draft is not enough for the boat.

4. Flood in rainy season.

These reasons do not allow transporting a FMCG product from one place to other place. As Adani
Wilmar is a FMCG company and these products come with expiry date so Adani Wilmar wants to place
these goods in retailers shelves as soon as possible. So, they can cater to the demand as soon as possible.
But by using waterway it is not possible.

As we see that Adani Wilmar is FMCG Company who wants to put the product in the shelves as soon as
possible so road or railway is best mode of transportation. Now we have to find out which mode is best as
well as cheapest for transportation of goods. We will select those destinations which can be catering with
the help of both road as well as railway.

Adani Wilmer limited transport their goods to different depots based on their demand i.e. if in a distant
region is more than Adani can deliver their goods with the help of railway. As if they book railway for
delivery of goods they have to take entire 42 racks and Adani also make sure that all these racks are full.
So if the demand is more than only railway is an option otherwise Adani Wilmar is using its road
transportation to deliver the goods.

First we will see Advantage of road and railway and then we will compare these with the help of our
data.

Adani Wilmar limited deliver goods to almost every destination or depot by road. By road they deliver
goods to Guwahati, Jorhat, Patna, Lucknow, and some part of Odisha, Bihar, West Bengal, Andra
Pradesh, and Jharkhand. By the help of road transportation Adani Wilmar can deliver goods in proper
time. So that it would be easy to fulfill the demand of the consumer.

Here are some the advantages of road transportation: -

1. on time delivery.

2. All depots which are near to the factory can be catering with the help of road transportation which less
costly compare to railway. Like Place in West Bengal, Odisha, Jharkhand, and some part of Bihar road
transport is cheaper than railway because railway have fixed rate of transportation of goods for number of
days. So road transportation is preferred over railway.

3. Damage in case of road transportation is very less. Even if any damage happens that much amount is
deducted from transporter. Damage which is bigger than Rs. 30000 is covered under insurance. So Adani
Wilmar limited always makes sure that no big loss can be caused to the company because of these
damages.

4. Most of the warehouse located outside the city. So road transportation plays a vital role in delivering
the goods at the depot.

39
5. Last mile connectivity is provided by road transport only.

6. In some places where demand is not too high then road transportation is the only way to transport
goods from factory.

Disadvantages of road transport:-

1. It is a costly way to transport goods for longer distance.

Railway transportation is completely depends on demand in different regions. Adani Wilmar Haldia Plant
delivers products to only 4 locations which are:-

Guwahati
Jorhat
Patna
Lucknow

These locations are very far from Haldia and demand in these regions is also high so demand in these
regions is fulfilled with the help of train.

Advantages of rail transport: -

1. Bulk movement of goods.

2. Less costly than road transportation.

3. Suitable for long distance transportation.

4. The railways provide greater employment opportunities for both skilled and unskilled labor. Over 16
lakh persons are depending upon railways for their livelihood.

Disadvantages of rail transport: -

1. Lack of Flexibility:
Another disadvantage of railway transport is its inflexibility. Its routes and timings cannot be adjusted to
individual requirements.

2. Lack of Door to Door Service:


Rail transport cannot provide door to door service as it is tied to a particular track. Intermediate loading or
unloading involves greater cost, more wear and tear and wastage of time. The time and cost of terminal
operations are a great disadvantage of rail transport.

3. Unsuitable for Short Distance and Small Loads:

Railway transport is unsuitable and uneconomical for short distance and small traffic of goods.

40
4. Under-utilised Capacity:
The railway must have full load for its ideal and economic operation. As it has a very large carrying
capacity, under-utilisation of its capacity, in most of the regions, is a great financial problem and loss to
the economy.

41
2.5. Objectives of this project

To find the best way to transport the goods from one place to other place like factory to depot.

To find the cheapest way to transport the goods from factory to depot.

42
Chapter 3

The Research Methodology

3.1. Introduction

This chapter outlines the research methodology of this study. The research was conducted in single phase
and the research methodology will thus be discussed under the single phase. Data in this phase were
collected by using a qualitative approach. Written narratives were obtained from Adani Wilmar limited
working in Haldia plant.

3.2. Research objective

The objectives of this study were to identify and describe the best and cheapest way for transportation of
goods from factory to depot.

3.3. Research design

The design of a study is the end result of a series of decisions made by the researcher concerning how the
study will be conducted. The design is closely associated with the framework of the study and guides
planning for implementing the study. It is a blueprint for conducting the study that maximizes control
over factors that could interfere with the validity of the findings. Research designs vary with regard to
how much structure the researcher imposes on the research situation and how much flexibility is allowed
once the study is under way. The research designs of most quantitative studies are highly structured.
This study allowed for a structured approach in Phase 1.

It is also possible to do research using more open techniques, known as qualitative research. Qualitative
research focuses on meaning, experience and understanding and therefore these designs give the
researcher the opportunity to interact with the individuals or groups whose experiences the researcher
wants to understand. In this study, data in Phase 1 were collected using a qualitative approach.

3.4. Exploratory design

Survey studies are classified as exploratory research designs. Exploratory studies provide an in-depth
exploration of a single process. Like descriptive research, exploratory research begins with some
phenomenon of interest, but rather than simply observing and describing it, exploratory research aims at
investigating the full nature of the phenomenon, the manner in which it is manifested, and the other
factors with which it is related. An exploratory study is undertaken when a new area or topic is being
investigated.

3.5. Qualitative approach

The qualitative research paradigm, in its broadest sense, refers to research that elicits participant accounts
of meaning, experience or perceptions. It produces descriptive data in the participants own written or
spoken words. A qualitative study is concerned with non-statistical methods and small purposively
selected samples. Qualitative method is especially useful for exploring the full nature of a little-

43
understood phenomenon. Little was known about the phenomenon of operation in Adani Wilmar who is
operating in different location of India. A qualitative research design was therefore chosen to obtain
narrative sketches from Adani Wilmar working in Haldia. The phrase personal documents to refer to
any first-person narrative that describes an individuals actions, experiences and beliefs; they state that the
criterion for calling written material personal documents.

The rationale for using a qualitative approach for this phase of the study was to explore and describe the
experiences of logistic department head. A qualitative approach was the most appropriate way to capture
their experiences.

44
Chapter 4

Data, Analysis and, Inferences


4.1. Data

Data collected for this project are primary as well as secondary data.

Primary data is information that you collect specifically for the purpose of your research project. An
advantage of primary data is that it is specifically tailored to your research needs. For this project primary
data are collect by interviewing different people of logistics of the company, observing different operation
of the company

Secondary data is information that has been collected for a purpose other than your current research
project but has some relevance and utility for your research. And secondary data is collected from internet
and surveys.

Here we will discuss about road and railway cost, as we know that Guwahati, Jorhat, Patna, Lucknow,
only these destination cater with help of road and railway.

In case of railway

Number of racks = 42 Wagon

Size = 20 feet each

Capacity = 63 tonnes

In case of oil,

Each rack carry = 55 tonnes

In case of pulses,

Each rack carry = 63 tonnes

Loss permissible (maximum) = 1 tonnes

Overall capacity of train = 2000 tonnes

Cost of carry (each tonne) = Rs. 2300 (Including the charges of transportation of goods from factory to
loading area of train in source side and from unloading area to the depot in destination side)

Total cost of carrying goods by train = 2000*2300 =46, 00,000

45
Now in case of road,

From Haldia mostly 20 tonnes trucks are going to the above destination and cost of transportation of each
tonne is Rs. 3500.

Overall capacity of truck = 20 tonnes

Cost of carry (each tonne) = Rs. 3500

So, total cost to send 1 truck of 20 to these destination = 20*3500= 70,000.

Loss of 0.1% is allowed in road transportation.

So only 20 liters of loss is allowed if it is above 20 liters then that amount of money is deducted from
transporters payment.

Special case: - In case of 15 liters tin 0.2% loss is allowed.

46
4.2. Analysis

Loss analysis

As we know that in a 20 tonnes truck only 0.1% of loss is allowed =20 kg

So according to this in 2000 tonnes in train loss can be allowed = 2000 kg (0.1% of the load)

But according to company history loss is less than 1000 kg.

This shows that train provide safe medium of transportation.

So after loss analysis we can say that train should be preferred for long distance transportation of goods.

Overall analysis shows that, transportation of goods by train is most viable medium. As it is cost efficient
as well as best mode of transportation of goods.

47
4.3. Inferences

According to the analysis railway is the best and cheapest way for transportation of goods for longer
distance. We can use railway only when there is a huge demand of goods at a distant location. So, we can
cumulate the demand of nearby location of the depot. I this we demand of that distant location is high and
the company can cater the demand by railway which not only save the cost but also reduce the loss. Like,
when a train is transporting goods from factory to depot of Guwahati then all the nearby location should
be cater by this train only. With the help of train, Adani Wilmar can send different kinds of products like
dal, refined oil of different category, vanaspati.

48
Chapter 5

Recommendation
The following recommendations are offered as possible ways to improve multimodal transportation in
Adani Wilmar limited: -

1. Multi modal transportation in Adani Wilmar is completely demand driven. So, company should
improve its demand forecasting process.

2. Company should also use railway as a mode of transportation of goods for long distance. Railway
provides best and cheapest way to transport goods.

3. Although transportation in railway is completely based on demand so company can use hub and
spoke model in distant location for transportation of goods from factory to depot. It is an effective way
to transport goods. It also provides better a way to cater the nearby location of the depot. It not only
reduce the cost but also reduce the amount of losses cause to the company.

49
Appendix- I (Questionnaire)
Name of the organization -

Name of the responder

Position in organization

Questions

Q. What is the capacity of Haldia plant?

Q. What are the advantages of having plant at Haldia?

Q. How many products are manufactured in this plant? Name them.

Q. How many places you are catering from Haldia plant? Name them.

Q. Can you tell me about the entire supply chain operation performed in this plant?

Q. From where did you bring raw material for your plant?

Q. How the raw materials are transported to the plant?

Q. In your warehouse, in which order you are dispatching the goods to the customer?

Q. What is the capacity of your plants warehouse?

Q. How you are stacking your Finish goods in the warehouse?

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Q. Are you following lean operation in your plant?

Q. Can you tell me what is the procedure followed by the drivers when they come to the factory for
transportation of finished goods to the depot?

Q. If any accident happens while transportation then, what procedure is followed by the company?

Q. How many mode of transportation is used to transport good, (1) from factory warehouse to depot?

(2) From depot to distributor?

(3) From distributor to retailers?

Q. What is capacity of trucks which is to be transported from, (1) from factory warehouse to depot?

(2) From depot to distributor?

(3) From distributor to retailers?

Q. Name those destinations which are catered with the help of train?

Q. What is the capacity of the train?

Q. What is the cost of transportation of goods by truck?

Q. What is the cost of transportation of goods by train?

Q. What is the amount of loss incurred by the company?

Q. Is there any insurance cover to cope with the losses due to transportation?

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Q. How the company forecast the demand of the market?

Q. Did you find your decoupling point in the supply chain?

Q. Can you tell me the market share of Adani Wilmar in packaged oil industry?

Q. What is the use of IT application in your plant?

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