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Cost & Pricing: Guided by MR - Ayay Taheliyani (External) Mrs - Vaishali Shah (Internal) Prepared by Zalak Trivedi

The document discusses the cost and pricing structure of Asian Food Industry (AFI), an exporter of spices and foodstuff. It outlines AFI's production costs, transportation costs, export costs, pricing methodology which includes costs plus a percentage profit margin. It also notes some areas for improvement like increasing production capacity and better coordination between departments to reduce costs and better promote their brand internationally.

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kjpatel9
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43 views

Cost & Pricing: Guided by MR - Ayay Taheliyani (External) Mrs - Vaishali Shah (Internal) Prepared by Zalak Trivedi

The document discusses the cost and pricing structure of Asian Food Industry (AFI), an exporter of spices and foodstuff. It outlines AFI's production costs, transportation costs, export costs, pricing methodology which includes costs plus a percentage profit margin. It also notes some areas for improvement like increasing production capacity and better coordination between departments to reduce costs and better promote their brand internationally.

Uploaded by

kjpatel9
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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.

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