SUMMER INTERNSHIP PROJECT REPORT ON

“STUDY ON PROCESS OF E-TENDERING

IN LOGISTICS AT RASHTRIYA CHEMICAL & FERTILIZER LIMITED”

Submitted By

SHRUTI KESHAV DESHMUKH

SPECIALIZATION - OPERATIONS

ROLL NO: 181112

In Partial Fulfilment of the Requirement of

Master of Management Studies (MMS)

(Under University of Mumbai)

Under The Guidance Of

PROF. BALASHANKAR RAMDAS

2018 – 2020

PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

NEW PANVEL, NAVI MUMBAI – 410206

 DECLARATION

I, Shruti Keshav Deshmukh, studying in Pillai Institute of Management Studies And

Research, hereby declare that the presented Summer Internship Report titled ―Study on the
process of E-tendering in logistics at Rashtriya Chemical & Fertilizer Limited‖ is uniquely
prepared by me after completing two months of internship at Rashtriya Chemical & Fertilizer
Limited under the able guidance of Shri. Pradeep Mahajan, Dy. General Manager
(Marketing). I also confirm that, the report is only prepared for my academic requirement and
not for any other purpose.

Date: Signature:

Place: New Panvel Shruti Keshav Deshmukh

[i]
 CERTIFICATE OF APPROVAL

This is to certify that the project titled ―Study on the process of E-tendering in logistics at
Rashtriya Chemical & Fertilizer Limited‖, as a part of the curriculum of Master of
Management Studies (MMS) is submitted by Shruti Keshav Deshmukh, a student of Pillai
Institute of Management Studies and Research with Operations specialization for the
academic year 2018 - 20 has been approved.

Prof. Balashankar Ramdas

(Faculty Guide)

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INTERNSHIP CERTIFICATE

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 ACKNOWLEDGEMENT

The success and final outcome of the project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of the
project. All that I have done is only due to such supervision and assistance and I would not
forget to thank them. I respect and thank Mrs. Nanda N. Kulkarni (Dy. General Manager
HRD) for providing me an opportunity to work in RCF Ltd and giving me all support and
guidance which made me complete the project duty. I am extremely thankful to Shri P.
Mahajan RCF Ltd for providing guidance. Very grateful to be under guidance of Mr. Amit
Fale(Senior Marketing Manager) inspite of having a very busy schedule while managing their
corporate affairs they guided me. I would also like to express my sincere gratitude to thank
our Institute Director Dr. Satish Nair Sir, for helping me with my project and giving me their
valuable inputs in completing my project report. I owe my deep gratitude to our project guide
Prof. Balashankar Ramdas who took keen interest on my project work and guided me all
long, till the completion of our project work by providing all necessary information for
developing a good project report.

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Executive Summary

The study is on one of the largest fertilizer company RCF‘s tendering and procurement
process. The project starts on broader prospects; it gives overview of fertilizer industry in
India, it also talks about the players in the fertilizer and then it talks about the company, RCF.

It talks about the company‘s mission, vision, products and services, organisation chart.

Then it gives an introduction about the tender and various types of tender and it goes on to
explaining the procedures for the tendering and the guidelines it has to follow to comply with
the procedures. The process of e-procurement is done on the central government portal has
also been explained in detail. How the transparency is maintain with the ethics the company
should follow in making a purchase by giving equal opportunity to all to participate in
bidding process is also stated clearly. The payment procedures along with how it follows its
guidelines have also been mentioned.

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 INDEX

Sr. Page No.

1. Introduction to the Project ………………………………………………… [1]

2. Brief company profile………………………………………………………

2.1 Organization History in brief……………………………………… [2]

2.2. Brief details of the Top Management…………………………….. [5]

2.3. Size of the organization ………………………………………….. [7]

2.4. Vision and Mission of the organization ………………………….. [8]

3 Industry Analysis…………………………………………………………….

3.1. PESTEL ...………………………………………………………… [9]

3.2. Porter‘s Five Forces Analysis……………………………………… [13]

3.3. Porter‘s Generic Strategies ………………………………………… [15]

4 Company Analysis:

4.1. SWOT……………………………………………………………….. [16]

4.2. 7S Framework ………………………………………………………. [17]

4.3. Value Chain Analysis ……………………………………………….. [18]

4.4. BCG Matrix …………………………………………………………. [20]

5 Introduction……………………………………………………………………..

5.1 Objectives of the study ………………………………………………. [21]

5.2 Expected Benefits ……………………………………………………. [21]

5.3 Limitations of Study …………………………………………………. [21]

6 Methodology…………………………………………………………………….

6.1 Logistics Industries …………………………………………………… [22]

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 6.2 E-procurement……………………………………………………….. [29]

6.3 Handling and Transportation………………………………………… [46]

6.4 Review of Literature…………………………………………………. [54]

7 Observations…………………………………………………………………….

7.1 Classification of Observations ……………………………………….

7.1.1 About organizational learning ……………………………… [55]

7.1.2 About self-learning …………………………………………. [55]

7.2 Trends/Patterns ………………………………………………………. [56]

8 Identification of critical issues or problem areas ……………………………….. [56]

9 Conclusion………………………………………………………………………..

9.1 Summary of trends in organization …………………………………… [57]

9.2 Summary of feedback given to the organization ……………………… [57]

9.3 Summary of self-learning …………………………………………….. [57]

10 Learning's and Takeaways ……………………………………………………. [58]

11. References and Bibliography………………………………………………….

11.1 References…………………………………………………………… [59]

11.2 Bibliography…………………………………………………………. [60]

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 1. Introduction to Project

(Tendering)

Tendering is the process of making an offer, bid or proposal, or expressing interest in

response to an invitation or request for tender. Organisation will seek other businesses to
respond to a particular need, such as the supply of goods and services, and will select an offer
or tender that meets their needs and provides the best value for money.

Tender request documents; also referred to as invitation to tender, request for tender (RFT),
Request for Proposal (RFP) etc. outline what is required, i.e., what the requesting
organisation‘s needs are. These documents are also outlining the particular requirements,
criteria, and instructions that are to be followed.

Future tenders are generally widely advertised to offer opportunities to a number of suppliers
encourage competition and provide a greater pool of offers to select from.

Interested suppliers will then prepare a tender, the document that outline the offer that they
are making, and will include pricing, schedules as well as their eligibility for the project or
procurement. They will outline their advantage over competitors; provide information on
qualifications, competencies and experience. Further they have to demonstrate how their bid
offers the best value for money.

The submitted tenders are then evaluated with regard to define criteria. In a normal tendering
situation, this process should be conducted fairly and honestly, and in a manner that is free
from bias or favour. The offer that best meets all of the requirements outlined in the request,
and provides value for money should win the contract.

The tendering process is generally utilised for procurements or contracts involving substantial
amounts of money. Tendering is utilised by:

 Government departments, offices and agencies

 Private sector companies and businesses
 Overseas markets and businesses

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 2. Brief company profile:

2.1 Organisation history in brief:

The Rastriya Chemical and Fertilizers Limited (RCF) committed to the Indian farmer is a
major fertilizer and chemical manufacturing company with about 80% of its equity organized
by the Indian government. It is 100 km from two operating units, one in Trombay in Mumbai
and another in Thal, Raigad district from other Mumbai. The Indian government has given
RCF the status of 'Mini Ratna'.
RCF is one of the earliest units established in the country with an increase in fertilizer
production for food security. It manufactures a wide range of urea, mixed fertilizers, organic
fertilizers, micronutrients, 100 percent water-soluble fertilizer, soil conditioner and industrial
chemicals. It produces 23 lakh metric tonnes urea, 6.5 lakh metric tonnes of mixed fertilizers
and 1.6 lakh metric tonnes of industrial chemicals each year. The company's brand "Ujjwala"
(urea) and "Sufla" (mixed fertilizers), which is the name of a house in rural India with a high
brand equity carrying. There is a nation-wide marketing network in all the major states of
RCF. Apart from its manufactured products, the company is also engaged in the marketing of
SSP and like imported fertilizer inputs, DAP, MOP and NPK fertilizers. In addition to
fertilizer products, RCF also has about twenty industrial chemicals that contain dyes,
Food and textiles and synthetic fibers from pesticides and cement to paint; Essential
chemicals for every industry from medicines; Specialty solvents and dye are produced by
RCF from explosives to share. RCF has also pioneered the manufacture of Argon in basic
chemicals such as methanol, ammonia, ammonium nitrate, sodium nitrate, sodium nitrite,
ammonium bicarbonate, methylamines, dimethyl formamide and dimethyl acetamide, ant
acid, India. Today RCF is the only manufacturer of dimethyl formamide in India.

RCF has operated more than two dozen chemicals and fertilizer plants in Trombay for the last
five decades successfully and safely. The company has operated plants in Thal for last thirty
years and maintained environmental quality. It has become a big challenge in itself and
reflects the company's commitment towards worrying about the environment and the
neighbourhood.

RCF has been spent more in the last few years, various pollution control and environmental
improvement schemes were worth 400 crore rupees. This "Chembur Green" Under the
project, large-scale drives are included for plantation. Full transparency is maintained by the

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company in the dissemination of data and information related to the environment. Real-time
emission levels are displayed through an enlightened board placed at the factory door to see
the public through four dedicated continuous ambient air surveillance systems located around
the factory boundary. No wonder the company has maintained ISO 14000 recognition for the
environment for fifteen years. Both ISO 9000 for the quality of the manufacturing units and
the OHSAS 18000 for occupational health and safety are recognized.,

In order to promote balanced use of fertilizers for improving agricultural productivity and
also to help maintain soil health, RCF has set up 12 (twelve) Stable Soil Testing
Laboratories(STL) strategic places, i.e. Mumbai, Kolhapur, Soil fairs in the surrounding
districts of Nagpur, Ahmednagar, Satara (STL) in Latur Hassan, Vijayawada, Kolar,
Suryapet, Raipur, Nanded and Lucknow covering in the soil testing activity. In addition to
stable STL‘s, the company also operates 6 (six) mobile soil testing laboratories. Farmers have
been provided free of cost for this service. Since the last 40 years, more than 50 lakh soil
samples of RCF have been analyzed.

The company will help in the implementation of major projects, which are in the forefront for
development through the reduction of the demand and supply gap between fertilizers in the
country. Based on 1.27 lakh MT of urea plant and Talcher coal gasification in the company
Thal, 1.27 lakh MT of urea plant is engaged in developing a project for any other. Apart from
this, with the proposed fertilizer projects in India, RCF Resources is looking for opportunities
for setting up joint venture projects in rich countries.. RCF has consistently received the best
rating of "Excellent" for the last several years. After getting recognition with the status of
'Mini Ratna' by the Government of India, it is now ready to get Navratna status. RCF has
maintained a good financial position.

CSR ACTIVITY

RCF takes its CSR (Corporate Social Responsibility) seriously. It works diligently to reach
out to the needy and works for the general good of society.

A host of activities are undertaken by the company which include adoption of villages,
providing drinking water, school facilities and scholarships, mid-day meals to students,
special coaching facilities to poor children to enable them get admission in IITs and NITs,

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community medical facility through mobile medical vans, special measures for SC/ST and
the under privileged, providing training to farmers etc.

As part of its social efforts, the Company has adopted 63 villages in Maharashtra, Karnataka
and Andhra Pradesh for overall development. This program has brought about a qualitative
change in the economic status of farmers and people in various other occupations in villages.

MOU is a mutually negotiated agreement between the management of the CPSEs and the
Government of India. Under this agreement, the enterprise undertakes to achieve targets
contained in MOU and set in the beginning of the year, making it a performance contract.

RCF has been signing MOU with the Department of Fertilizers (DOF), Govt. of India every
year.

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2.2. Brief details of the Top Management

Board of Directors

Shri U. V. Dhatrak Ms. Alka Tiwari

Chairman and Managing Director Government Nominee Director

Shri Sudhir D Panadare Ms Gurveen Sidhu

Director (Technical) Government Nominee Director

Shri Umesh Dongre Shri Harim Pathak

Director (Finance) & Chief Financial Officer Independent Director

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Shri K. U. Thankachen Shri G. M. Inamdar

Director (Marketing) Independent Director

Shri Dr. Shambhu Kumar Shri Suryanarayana Simhadri

Independent Director Independent Director

Shri Prof. Anil Kumar Singh

Independent Director

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2.3. Size of the organization (turnover, employees, geographical spread)

1. Size: RCF Ltd has two units in India one at Trombay, Multiproduct integrated fertilizers
& process chemicals factory in Mumbai spread across 765 acres and another at Thal,
which is large producer of Urea along with Industrial Chemicals located 100 km south
of Mumbai spread across 997 acres.
2. Turnover: Total Sales Turnover of fiscal year 2019 is Rs. 8885.47 Cr.

3. Employees:

Total number of workers in RCF (as of year 2019)

Location Officer Worker Total

Trombay 719 832 1551

Thal 506 691 1197

Marketing 229 35 264

•Total 1454 1558 3012

4. Geographical Spread:
RCF markets the Ujwala and Suphala brand of fertilizers in the states of Maharashtra,
Gujarat, Tamilnadu, Andhra Pradesh, Karnataka, Uttar Pradesh, Rajasthan, Bihar,
West Bengal, Punjab, Madhya Pradesh, Chattisgarh and Haryana. RCF has its own

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 regional marketing teams in all the 12 States where it markets its products. RCF has a
wide marketing network of 33 branch offices and more than 500 marketing
professionals in the field.

Vision and Mission of the organization:

Mission statement
'Build and sell fertilizers and chemicals with the aim of maximizing the value of steak holders
with reliable, ethical and social obligations, with rapid development through professional
excellence.'

Vision Statement
'Making a world-class corporation in the field of fertilizers and chemicals while maximizing
the value of steak holders, by taking proper care of the environment while ensuring the
optimum utilization of resources in the Indian market with the rightful position.'

Value statement
Honouring the commitment of honesty, honesty, transparency and respect to all stakeholders
in every area of the business, RCF will be effective and striking for the highest quality. '

[8]
 3. Industry Analysis

3.1. PESTEL:

PESTEL analysis describes a framework of macro-environmental factors used in

the environmental scanning component of strategic management. It is part of an external
analysis when conducting a strategic analysis or doing market research, and gives an
overview of the different macro-environmental factors to be taken into consideration. It is a
strategic tool for understanding market growth or decline, business position, potential and
direction for operations.

Political Factor

An activity related to government policy and its administrative practices that can have an
effect on something. Most business operators will keep a watchful eye on any political factor,
such as new legislation or regulatory shifts, which could have a substantial impact on how
their company operates and its bottom line.

Keeping in mind the incentives offered by the government under the fertilizer policy 2001, it
can rightly be said that the political trends for this industry are positive .some of these
incentives are as follows:

 The production and import of fertilizer has been subsidized by the government to meet
the local demand for fertilizers at low prices.

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  Investors will enjoy the same exemption/concession on relocation of equipments and
second hand plants as that on new plants.

 As urea is an important raw material required by the industry the production of which
requires gas, the government provides concession in the rates of gas.

 Urea is the source of nitrogenous fertilizer and it is heavily subsidized by the GOI.
Today urea is the only fertilizer which remains controlled. GOI controls the MRP of
urea and has fixed it at INR 5,360 per MT

 Urea production dominates the fertilizer production in the country. While India is the
second largest consumer of urea, GOI is working towards increasing the production of
urea so as to end all urea imports by 2022.

 DAP is the second most used fertilizer after urea and after the recent fall in the prices
of key raw material used in making DAP, India has started to manufacture DAP which
was imported previously.

 GOI is also encouraging the use of SSP which is considered a substitute of DAP.

 No custom duty is applicable on any import done by producers of rock phosphate and
phosphorous.

 The government also allow tax relaxation to this industry.

 The government also provided export benefits and incentive to suppliers of capital
goods required for different projects of the industry.

 The gas price has been declared to remain consistent for ten years to eliminate
uncertainty.

Economical Factor

The Indian economy mainly depends upon its agricultural produce. The fertilizer industry
enjoys favors from the government because it facilitates the agricultural sector which account
for 22% of the GDP. Indian manufacturer of Chemical fertilizers are now adopting some of
the most advanced manufacturing process to prepare innovative new Product to supplement

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the Indian agriculture. India is also ranked as the third largest exporter and producers of
nitrogenous fertilizers.

The government has imposed strict bans on export of fertilizers in order to gain economic
stability. Furthermore government has provided subsidies to the extent of 27 billion for the
supply of urea and DAP specifically and to facilitate import and production of fertilizer in
general.

In the present day scenario, there are more than 57 large sized and 64 medium and small
sized chemical fertilizers production units in India. The main objective of these chemical
fertilizer industries is to make sure that there is a proper supply of primary and secondary
fertilizers to Indian crops in adequate quantities. Some of the prominent products
manufactured by the Indian fertilizers industry are nitrogenous fertilizers, phosphate based
fertilizers such as Calcium, Ammonium Nitrate, Urea, Ammonium Sulphate and other
complex fertilizers.

It has also helped India achieve the objective of being self-sufficient in the production of food
grains and has accelerated the growth of agriculture.

Social Factor

The facts and experiences that influence individuals' personality, attitudes and lifestyle. The
marketing department of a business needs to take into account the various social factors
characteristic of the consumer groups it is targeting to help increase a product's appeal to
those potential buyers. If the waste of this industry is not disposed of properly. It can lead to
several diseases such as asthma, kidney failure and lung cancer. But the use of artificial
fertilizers cannot be brought to an end because it saves the time of the farmers and they prefer
artificial fertilizers over bio fertilizers

Technological Factor

In order to meet the demand of fertilizers in the country, it is very important to have in depth
technological knowledge, the ability to plan and develop processes and monitor them for
perfect execution.

The operators of fertilizer plants are aware of the latest technological developments and are
capable enough to meet international standards of production and capacity utilization.
Furthermore, efforts have been made to develop environment friendly procedures so as to

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avoid pollution as much as possible. As a result, the performance of our gas plants in
considered among the best.

Other techniques such as de-bottle necking and energy conservation are also being used to
increase efficiency, improve the capacity utilization and lower costs per ton. Furthermore,
switching to liquefied Natural Gas (LNG) is also an option that is being considered to
efficiency and reduce cost

India‘s demand for the fertilizers is to increase its supply manifold in the near future those,
there are great investment opportunities for foreign investors to invest in Indian Chemical
fertilizers industry, optimize the fertilizer production through the use of modern technology,
and gain value able returns.

Environmental Factor

An identifiable element in the physical, cultural, demographic, economic, political,

regulatory, or technological environment that affects the survival, operations, and growth of
an organization.

The chemical fertilizers industry is one of the most energy intensive sector, and it is very vital
from the view point of environmental discussions. Today there is a great need to increase the
productivity of chemical fertilizers through implementation of pollution free and environment
friendly technologies. This will be helpful in achieving economic, social and environmental
development objective. The chemical fertilizers industry of India gained momentum after
India adopted the liberalization and globalization policy in 1991.The government aimed to
reduce subsidies and attract new investments by decontrolling all the Phosphatic and Potassic
fertilizers. The department of fertilizer is the nodal organization that is responsible for the
planning, development and promotion of the chemical fertilizers industry in India this
department also monitors the production, distribution and imports of fertilizers. Besides it is
also responsible for management and provides financial assistance to the investor who is
investing in this sector.

Legal Factor

Powers and limitations that arise from legislation and interpretation of laws, and which impel

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or restrain individual or organizational activities.

The Government of India has made ambitious plans to set several chemical fertilizer projects
in place. This plan aims to increase the production of fertilizers those, there are a lot of
opportunities for new investors to enter into a joint venture with government undertakings
and earn good return on investment. Great potential lies ahead for foreign investors looking
to invest in the chemical fertilizers industry in India.

The Government of India has declared fertilizer as an essential commodity under the
Essential Commodities Act, 1955 (ECA) and has notified Fertilizer Control Order, 1985
(FCO) under this Act. Accordingly, it is the responsibility of the State Governments to ensure
the supply of quality of fertilizers by the manufacturers/importers of fertilizers as prescribed
under the FCO under the ECA. As per the provision of the FCO, the fertilizers, which meet
the standard of quality laid down in the order can only be sold to the farmers. There are 71
fertilizer testing laboratories including four laboratories of the Government of India at
Faridabad, Kalyani, Mumbai and Chennai with an annual analyzing capacity of 1.34 lakh
samples. The quality of the fertilizers imported in the Country is invariably checked by the
fertilizer quality control laboratories of the Government of India.

3.2. Porter’s Five Forces Analysis:

Porters Five force analysis is framework for industry analysis and business strategy
development formed by Micheal E. Porter of Harvard Business School in 1979.

1. Threat of new entrant

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Highly capital extensive nature and stringent government policies restricts induction of new
[players. Processing of raw materials requires very large machinery and high processing cost,
so it is not easy for new entrant to cope up with these high investments.

2. Threat of substitute products or services

Urea remains the dominant nitrogen-based fertilizer while DAP is the leading phosphate
fertilizer in India. The tendency of other fertilizers to substitute these main products is
limited. Nitrogen, phosphate and potash cater for different nutrition needs. Therefore these
should appropriately be considered as complementary products rather than substitutes.

3. Bargaining power of customers (buyers)

Each company has adequate number of distributers under them. Some of the bigger players
like R.C.F. have nationwide coverage as far as distribution is concerned. India is having
different climatic conditions over different areas, so all over the year there is high demand for
fertilizers from different localities. But in adverse climatic conditions, the bargaining powers
of customers are high. But for industrial products there is Demand-Supply situation.

4. Bargaining power of suppliers

Price and supply of key inputs like natural gas is regulated in India. As far as raw materials
are concerned; major raw material are consist of import like Rock, Sulphur, Dap/Map, and
Mop. The sources of this material are very few and hence the company does not have much
bargaining power.

5. Intensity of competitive rivalry

The company faces stiff rivalry competition for industrial products. As far as fertilizer is
concerned 50% allocation is done by government through ECA for Urea. The balance 50% is
for home state consumption. Hence intensity of rivalry is reduced to certain extent. For
Complex fertilizer, though there are competitors, indirect control of the government reduces
the impact.

3.3. Porter’s Generic Strategies:

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Porter's generic strategies define how a company pursuits competitive advantage through its
chosen market scope. There are four generic strategies, either lower cost, differentiated,
differentiated focus, cost focus. A competitive advantage is an advantage over competitors
gained by offering consumers greater value, either by means of lower prices or by providing
greater benefits and service that validates higher prices.

RCF follows Cost Leadership strategy provided at low cost so as to capture maximum market
share, and so the RCF being leader in terms of cost in fertilizer industry. They are increasing
market share by charging lower prices, while still making a reasonable profit on each sale
because they‘ve reduced costs.

Focus strategies concentrate on particular niche markets and, by understanding the dynamics
of that market and the unique needs of customers within it, develop uniquely low-cost or
well-specified products for the market. The mostly focus market at RCF are farmers RCF
directly reaches to the farmers they also provides training to educate them and providing
inputs for better crop realization.

4. Company Analysis:

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4.1. SWOT:

SWOT analysis (or SWOT matrix) is a strategic planning technique used to support a person
or organization to identify the Strengths, Weaknesses, Opportunities, and Threats related to
business competition.

Strength

RCF‘s strength lies in its skilled manpower high Brand equity for the products manufactured
such as Ujjwala, Suphala Microla, Biola and Sujala. The wide spread marketing network
ensures that the company reaches the products to all parts of the country. The Farmers‘
Training Institute and R&D Centre ensure that quality services are provided to the
farmers/dealers by educating them and providing inputs for better crop realization. RCF has a
wide portfolio of chemical product and withstand difficult economic situations by adopting
optimal mix of production. The well maintained plants and equipment ensure uninterrupted
production and distribution of goods.

Weakness

The Plants have been in operation for a very long time, some of them since 1965 by carrying
out regular upkeep, maintenance and up-gradation. The complex fertilizer has based on
imported raw materials which can face severe volatility in raw material prices and foreign
currency exchange rate affecting the profitability of the company.

Opportunities

Due to Company‘s good reputation, several opportunities exist, abroad, for

collaborations/Diversification in manufacturing and, mining of raw materials and marketing
of varieties of products. The increased availability of feed stock gas would permit for
undertaking major expansion at Thal. Alternate feedstock like Coal gasification gives an
opportunity for undertaking Fertilizer Project in other part of the country. All these
opportunity would lead to substantial increase in turnover of the company by marketing
varieties of fertilizers. Clean Development Mechanism (CDM) activities enable realization of
carbon credits. Experience and Skilled Manpower of the company has been demand for
rendering O&M service in India and abroad.

Threats

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Manufacturing and marketing of Fertilizers is the core business of the company. Agro-
climatic conditions have a large effect on the performance of the company. In the recent
years, there has been high volatility in the prices of the raw material and creation of scarcity
impeding production and marketing plans, the chemicals business is highly susceptible to cut
throat global market competition.

4.2. 7S framework to analyse the different aspects of the organization:

1. Strategy:

Strategy is the plan of action an organization prepares in response to, or anticipation of,
changes in its external environment. RCF practices Cost Leadership strategy which involves
gaining market share by targeting cost-conscious or price-sensitive customers like farmers.

2. Structure:

It is the way in which the organization is structured and who reports to whom. In RCF, there
is a managerial hierarchy which is followed, where the workers report to the subordinate
managers, who in turn report to the Sr. manager and so on.

3. Systems:

This refers to some systems or internal processes to support and implement the strategy and
run day-to-day affairs. RCF uses SAP software for every department which ensure systematic
flow of information.

4. Shared Values:

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These are the core values of the company that are evidenced in the corporate culture and the
general work ethic. All members at RCF share a common fundamental idea to achieve
excellence in their work and provide the customers with excellent product. This keeps the
employees working towards the common destination as a coherent team and is important to
keep the team spirit alive.

5. Style:

The style of leadership adopted. In RCF, Democratic style of Leadership is adopted wherein
the subordinates are involved in making decisions. The most unique feature of this leadership
is that communication is active upward and downward. Due to this, the employees give their
best performance for the company.

6. Staff:

It consists of the employees and their general capabilities and experience. RCF has hired very
capable employees who give their best in every aspect of the work done. The employees are
selected on the basis of merit.

7. Skills:

It involves the actual skills and competencies of the employees working for the company.
The employees in RCF are well skilled and know their job very well.

4.3. Value Chain Analysis

Value chain analysis focuses on analysing the internal activities of a business in an effort to
understand costs, locate the activities that add the most value, and differentiate from the
competition. To develop an analysis, Porter's model outlines primary business functions as
the basic areas and activities of inbound logistics, operations, outbound logistics, marketing
and sales, and service. The model also identifies the discrete tasks found in the important
support activities of firm infrastructure, human resources management, technology, and
procurement.

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Primary Activities:

In RCFL, the primary activities include Inbound Logistics, Operations, Outbound Logistics,
Marketing and Service. Inbound logistics may refer to the movement of materials (raw
material- chemicals) inside the RCF from suppliers to manufacturing unit. Operations include
the manufacturing of chemicals and fertilizer as per demand etc. Outbound Logistics includes
the movement of the end product i.e. Chemical and fertilizer outside of the RCF to the
customer with means of transport by Rail and by Road. Marketing is another major activity
which involves promoting the company to the customers by reaching various parts of the
country through advertisement, surveys and trainings to farmers etc.

Support Activities:

In RCFL, the support activities include Infrastructure of the firm, Technology, Procurement
and Human Resource Management. Infrastructure plays a very important role as for a RCF to
work effectively, good infrastructure is necessary as it‘s a chemical company it has
successfully and safely operated two dozen chemical and fertilizer plants for the past five
decades at Trombay and has operated plants at Thal for last thirty years and maintained the
quality of environment. Technology plays an important role as previously the process used to
be very tiresome because everything had to be done manually but now with the help of
technology, the process became comparatively fast thus saving time. Technology rather
software such as SAP is used and also e-procurement to reduce corrupt practices to a
significant extent and increased the accountability of procurement officials. Human Resource
Management is important as the workforce which is entitled to do the job is selected through

[19]
HRM process. It takes into account the needs of the people and satisfies them so that they
won‘t go on strike and give their best for the company.

4.4. BCG

1. Question mark

 Products with low market share and high growth rate in RCF are Microla, Biola,
Dimethyl Formamide. This product can absorb great amount of cash if the market
share remains unchanged (low)

2. Stars

 Urea, suphala 15:15:15, Ammonia Sujala are the stars or leaders of product at
RCF. These product has high growth rate and high market share which requires
heavy investment to maintain its large market

3. Cash cows

 These products have low growth rate and high market share. They generate more
cash than required. Products (chemicals) in cash cow are Methylamine, Di-
ammonium Phosphate, and Sulphuric acid.

4. Dogs

 Products under dog category are Nitric Acid, DiMethyl Acetamide, and
Phosphoric Acid. These have low market share and low growth rate

[20]
 5. Introduction

5.1 Objective:

1. To study thorough understanding of how logistics industries works.

2. To analyse the process of e-procurement, e-tendering.
3. To understand how Handling and Transport contract are lined up at RCF

5.2 Expected benefits (to organisation):

RCF gives internship for various streams and expects new ideas, more convenient
alternate methods which can be easily implemented instead of their traditional method.

5.3 Limitation of the study

 Time factor was the main limitation for the study as the project was restricted to
small period.
 Rake Points are widely spread all over the country and the distance is too long
from the headquarters. So the whole study is based on secondary data.

[21]
 6. Methodology

Primary and secondary data was collected from various means as mentioned below.

a. PRIMARY DATA-

The primary source used was from:

 Discussion with management of the organization.
 Discussion with employees within the organization.
 Tender Guidelines
 Notice Inviting Tenders (NIT)
 Observation method

b. SECONDARY DATA-

The secondary data mainly consist of data & information collected from various websites,
annual reports, circulars, brochures, magazines.

c. TOOLS FOR DATA COLLECTION:

 Tender Guidelines
 Notice Inviting Tenders (NIT)
 Discussion with management of the organization.
 Discussion with employees within the organization.
 Observation Method

6.1 LOGISTICS INDUSTRIES

"Logistics is the art & science of managing & controlling the flow of goods, energy,
information and other resources like products, services and manpower from the source of
production to the marketplace. It is difficult to accomplish any marketing or manufacturing
activity without logistical support. It involves the integration of information, transportation,
inventory, warehousing, material handling and packing. The operating responsibility of

[22]
logistics is the geographical repositioning of raw materials, work in progress and finished
inventories where ever required at the lowest cost of production."

Logistics speaks of having ‗The right item in the right quantity at right time at right place for
the right price in the right condition to the right customer‖. Logistics services market India is
on a growth trajectory owing to rapid globalization and 100%FDI allowance. Logistics
services broadly encompass courier services, freight forwarding, third party logistics and
reverse logistics. Growth in international trade is providing huge impetus to the demand for
the logistics services. Growing competition in retail sector transcends need of reverse
logistics to handle returns and store up gradation. Third party logistics providers need to
customize their services and charge competitive rates to benefit from retail boom in India.

One of the major segments contributing to a rapidly growing logistics industry is the
warehousing business. The growth in international trade coupled with the rise in
containerization levels has led to high demand for warehouses. This creates tremendous
opportunity for the private sector. The market, which is valued at INR 20 bn, is expected to
grow due to the demand generated by importers and exporters for specialized services. E-
commerce logistics in particular will lead the way for the industry in the coming years, as the
Indian e-commerce industry is expected to reach at least US$100 billion by 2020.

Understanding India’s logistics industry

Achieving this growth will not be easy and India‘s logistics industry has its challenges.
Indian Logistics Industry is expected to grow at a CAGR of 8.6 percent between 2015 and
2020.
The Indian logistics industry is complex and under developed. Logistics costs are high due to
poor physical and communication infrastructure; high dwell time at ports; low levels of
containerization; and a multi-layered tax system, interstate tax system contributing to
significant delays at state border crossing points.

Demand for logistics:

Traditional growth drivers:
1. Export, Import cargo
2. Agriculture
3. Manufacturing (Mainly Textile & Automobile)

[23]
New growth drivers:
1. Organized retail
2. IT & Telecommunication
3. Healthcare

Elements of logistics cost (in %)

Segmentation of Logistics

Challenges of logistics industry in India:

1. Transport related challenge

* over saturated traffic on railway networks
* High Rail freight tariffs

[24]
 * Poor terminals
* Uncertainty of time
* Poor road qualities
* disintegrated transport sector

2. Port Issues
* Regular congestion at ports
* High turnaround time
* Inadequate facilities
3. Poor state of ICDs & CFS
4. Complex tax regime
5. Technology related issues

Recent Budget shows some government stances on improving infrastructure which improve
India‘s logistics sector.
Some of the key measures are:
 Enhance government spending on infrastructure to stimulate economic growth.
 Focus on building roads, highways and rural infrastructure
 Focus on the maritime sector as an important economical route for bulk transport with
initiatives, such as Sagarmala,
 Focus on the development of inland waterways for passenger and freight transport to
decongest existing road traffic
 Expedite development of existing projects in transport infrastructure especially
highways, railways & other new initiatives
 Revive government and private investments, the policy measures announced for
developing the transport infrastructure including initiatives such as Bharatmala,
Sagarmala, inland waterway development, schemes for incentivizing coastal shipping
besides other initiative and policy.

Impact of GST

Goods and service tax is a colligation of multiple taxes levied by both Central (i.e, excise duty,
countervailing duty and service tax) and state (Value-added tax, Octroi and entry tax, luxury

[25]
tax, etc) governments when an end-user purchases goods or services. It means same level of
taxation would be charged on a specific product or service across the entire country
irrespective of being manufactured and sold in different states. The planned dual GST model
(central GST and state GST) proposes to replace around 29 state and federal taxes and tariffs
for a single tax at the point of sale.

The Indian logistics sector continues to evolve, improve with the changing business
environment. It is poor as compare to developed & developing countries. In developed
countries like the US, logistics costs comprising transportation costs account for 7% to 9% of
the cost of the final product, warehousing cost accounts for about 1% to 2% and inventory
holding costs account for about 3% to 5%. In developing countries, logistics costs are
estimated to be higher at around 15% to 25% of the final cost of the product due to lack of
adequate logistics system. In India, logistics cost is around 13%, comparatively higher than the
developed & other developing countries.

To stay competitive we need efforts from all the ends. From both government & private
sectors. With spending on infrastructure & implementation on GST Indian logistics industry
will surely transform. Also with the use of technology & so many tech based companies
transport industry is also integrating. Which ultimately benefit our logistics sector & economy.

The future is bright for logistics industry in India- the expectation is that a tipping point for the
industry will soon be reached which will propel it to greater heights.

Logistics Activities and fields:

There are two types of logistics activities such as:

Inbound Logistics- Inbound logistics is one of the primary process of logistics concentrating
on purchasing & arranging the inbound movement of materials, parts, or unfinished inventory
from suppliers to manufacturing or assembly plants, warehouses or retail stores.

Outbound Logistics- Outbound logistics is the process related to the storage & movement of
final product & the related information flows from the end of the production line to the end
users.

[26]
The importance of logistics is increasing also due to globalization as more and more multi-
national companies (MNC) are sourcing, manufacturing and distributing on a global scale,
making their supply chains very complex to manage. However, outsourcing logistics
activities to experienced logistics service providers (LSP), also known as third-party logistics
(3PL) providers, may enable companies get very efficient and customized logistical support
while themselves focusing on the core organizational activities. Today, there are many large
multi-national LSPs that offer complete supply chain solutions across many diverse countries
in terms of their socio-economic and political environments. Apart from core logistical
activities such as transportation and warehousing, LSPs also offer value-added services such
as customs clearance, freight forwarding, import/export management, inventory management,
assembly/installation, packaging and labelling, distribution, after sales support, reverse
logistics and so on. By outsourcing logistics, companies can leverage the expertise of LSPs
while concentrating on their core competencies.

"Logistics operations at RCF

A vital aspect of our marketing management is the movement of Fertilizers including Urea
(from Trombay & Thal) & Suphala 15:15:15, Suphala 20:20:0, Specialty fertilizers (bio
fertilizers, liquid micronutrients and solid soluble fertilizers) from Trombay at various
destinations, rakepoints/warehouse as per the monthly dispatch plan. The fertilizer
movement is facilitated by Rail & Road transportation depending upon the distance in
Kilometers in the states of Maharashtra, Goa, Gujarat, Madhya Pradesh, Karnataka, Tamil
Nadu, Kerala, Uttar Pradesh, Bihar, West Bengal, Orissa, Punjab, Haryana & Rajasthan.

Transportation Contracts: In order to ensure steady material movement all-round the year,
H&T contracts with estimated quantity are lined up for earmarked rake points/warehouses on
all India basis. Also, S & D contracts are lined up for movement of fertilizers by road from
Trombay & Thal. Transportation contracts are also lined up for various ports for movement
of imported material.

At present all contracts are operating for one year with a provision for extension for a period
unto one year.Recently, the contracts are proposed to be lined up for a period of flat 15
Months without extension.

Logistics Section Responsibilities/Activities:

[27]
1. Lining up and finalization of transportation new contracts as per tender guidelines &
NIT completed step by step through series of activities viz. Administrative approval,
PQ qualification, Price Bid, e-RA, L-1 negotiations, finalization of contract issue of
work order in co-ordination with concerned state/area offices. Monitoring and
extension of the contracts.
2. Gate Office Operations at Trombay & Thal, issue of OBD against indents and
material dispatch by road as per material availability and DOF monthly plan.
3. Verification and processing of transports' bills for both the units.
4. Co-ordination with area offices and all concerned departments for smooth operations.
RR collection and despatch.
5. Finalization of NIT, report generation & record keeping.

Peer Competition:

These are some of the RCFL competitors in India in Chemical and Fertilizer indsutries.

[28]
6.2 E-PROCUREMENT

Internet has changed the business processes. As a result RCF has decided to switch over to
online procurement mode of transaction, also known as e-procurement.

e-Procurement can be through two different modes

 e-Tendering
 e-Auction (both reverse and forward)

Since, RCF is in initial stage of use e-Procurement business process, after extensive use and
achieving stabilisation in lining up of varied contracts, detailed internal Guidelines shall be
framed. Till such time, individual NITs shall contain necessary rules to be followed for e-
Procurement.

The e-Reverse Auction (both reverse and forward) is already being used in the Company

Brief steps involved in e-Tendering & e-Reverse Auction are enumerated below :

1. e – Tendering :

• Preparing Tender documents On-line for Limited / Open tenders.

• Assisting in obtaining digital certificates for authorized officers on behalf of RCF /

vendors.

• Generation of user ID and passwords for vendors and RCF officers.

• Hosting of tender documents (NIT) for Limited/Open tenders.

• Defining tender schedule

• Release and Uploading of tender documents (NIT)

• Allowing download of tender documents only to qualified/ authorized vendors in case

of Limited tenders

• Clarifications on tender documents on line

[29]
 • On line pre bid clarification/ amendments

• Preparation of bids on line

• Submission of bids on line

• Up loading bids on line

• Submission of EMD off-line (Online - Optional)

• Opening of bids on line

• On line evaluation of technical bids

• On line technical clarifications

• Arriving at technical loading off-line/ on line

• Incorporation of loading of technical deviations as above

• Opening of price bids on line • Generation of comparative statements / other reports on

line / off

Minimum value for E.Tendering:- E.Tendering is mandatory as per the Govt. notification,
above Rs. 2 Lacs. However, E.Tender is to be done above Rs. 1 Lakh to promote E-
tendering.

E.Tender poor response:- In case of poor response against E.Tender, physical tender can be
issued with the approval of ED, for getting more competitive offers.

2. Reverse Auctioning :

• Short listed vendors to be allowed to participate in reverse auction

• Generation of Alias names and passwords of participating vendors

• Defining time period and rules of time period extension

• Defining base/ starting price for reverse auction

• Defining Bid decrement/ increment value

[30]
 • On line submission of bids

• Generation of statement of complete history of reverse auction from start to close of

event giving price submitted by each participant bidder at different time period.

• The vendors, RCF personnel and administrator of the successful tenderer should be
able to see only the price/ corresponding quantities and nothing else during the bidding
process. On completion of the bidding process the System should show the lowest price
quoted by various vendors.

Difference between Manual and e- Tendering

Manual tendering

 The process is time consuming and requires lot of paper work

 The tender advertisements is published through press advertisement
 The bids are submitted by the suppliers manually
 The bids are open in the presence of the suppliers
 The bid evaluation is done manually which is time consuming
 The payment is done manually in this process

e-Tendering

 The process is less time consuming and requires no of paper work

 The tender is published by the e-publishing on CPP portal
 The supplier register themselves on CPP portal bids are submitted online
 The bids are open online
 The bids evaluation are done online
 The payment procedure is online through different means

[31]
 EXISTING MANUAL TENDERING PROCESS

Tender Note Sheet

Bid Tender
Creation Preparation
Submission Opening

Technical Note Sheet

Tender Bid Verification
Verification Opening

Tender Note Sheet

Tender
creation Approval
Approval

Tender Tender PO
Publishing creation Preparation

Tender
creation

[32]
E-Tendering process

E- Tendering process starts with the registration on CPP portal

1. Client(person from who the tender originates)fill online application to advertise the
tender and includes important dates(date of publication, date of submission)
2. The period of publication begins.
3. Interested parties request the necessary documents.
4. Download of documents. Certain company wish to offer certain documents in
different formats (bigger font size, different data format or in paper format etc.). Some
companies offer this service on demand
5. The tender applicant works on his offer and send it digitally signed and encrypted
6. During the period of publication, certain system allow client to edit their documents.
The system will automatically send details of the changes to those who have
expressed an interest in the tender. Bidder needs to poses a valid DSC for
participating in e-tendering. It can be procure from any of the Certifying Authority
registered under CCA India eg Sify, nCode, MTNL, eMudra etc.

Types of Tender

Precautions to be taken while issuing tender

On receipt of indent, following precautions have to be taken while issuing the enquiry.

 Enquiry are to be issued only in the prescribed format under by fax/courier/ hand
delivery/ speed post/email (with a request for acknowledgement) etc.
Acknowledgement/ written proof of dispatch will be considered must in any of the
modes adopted.

 Enquires can be suitably modified to confirm the material/service proposed to be

procured but before the date of opening the price id and after giving equal opportunity
to the original tenderers. Unless there is change in technical/ commercial
specifications or in case vendor has deviated from NIT terms and after technical and
commercial clarifications, withdraws or modifies some or all deviations and if the
vendor insists, he may be allowed to revise the price by giving add-on or take-off bid
in closed envelopes, which shall be open along with original price-bid. Accepting of
revised price-bids should be avoided. If the bidder has been allowed to submit revised

[33]
 price bids then the original price bid will not be open unless, after opening of revise
price bid, it is found to have cross-reference to the original price bid. If there are no
changes in technical/commercial specifications, vendors shall not be allowed to revise
their price-bid during the validity period of price-bid. In case of limited/poor
response, efforts are to be made to avoid the situation requiring extension of validity
period or entertaining party‘s request for revision of price bids.

 The detailed description of material/services and technical specifications/drawings

and design as applicable shall be provided.

 The delivery time and the various general and special terms and conditions governing
the purchase /work shall be clearly indicated.

 A standard NIT/enquiry documents should stipulate that:

 RCF Ltd. Reserves the right to accept or reject any/all bids without assigning any
reasons. Whenever any tender application is rejected for any non-technical and non-
commercial reasons, the logical reasoning for rejection shall be recorded in the
proceedings of award of contract.

 RCF Ltd. shall have the right to place order/award the work to one or more
vendors/contractors.

 RCF Ltd. shall have the right to split the quantum of work/purchase and/or combine
works/purchases at its sole discretion. However, the basis of splitting shall be
specified in the NIT itself.

Following are the types of tendering:

(i) Limited tenders (iv) Open tenders

(ii) Single tenders (v) Repeat orders
(iii) Verbal enquiry

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SUBMISSION OF TENDERS

 The tenderer, after studying all tender documents carefully and after visiting the site for
satisfying himself of the local conditions, location and accessibility of the site, nature,
extent and character of the operations, may obtain all clarifications in writing before
tendering. Submission/uploading of tender implies that the tenderer has obtained all the
clarifications required by him. No claim on ground of want of knowledge in such respect
will be entertained.
 The tenderer has to quote for all the slabs/Items covered in the PRICE BID (BOQ),
failing which their tender is liable to be rejected.

VALIDITY OF TENDER

 The rates quoted in the tender are to hold good for a period of 120 days from the date of
opening of the tenders and if the contract is awarded, the same rates will be valid for the
entire period of contract. No tenderer can withdraw his tender or revoke or revise the rates
within the aforesaid period of 120 days (four months) and If the tenderer withdraws /
revises / revokes OR shows unwillingness to conform with his offer, the earnest money
deposit (EMD) shall be forfeited by the company and the tenderer is also liable for de-
listing from the current panel of pre-qualified transporters of said Rake-point / warehouse
and will also not be eligible for immediate next empanelment for a minimum period of
one year, which can extend up to five years by RCF.
 If the tender submitted is not in the name of any individual, the tenderer shall disclose the
nature, constitution and registration of the tendering firm and the tender shall be signed
by a person or persons duly authorized to do so by means of a legally valid documents
which, or a duly certified copy of the same, shall be attached with the tender.

MODES OF TENDER

The following guidelines shall be followed for lining up any contract for purchase or service
or composite:

(A) No Press Advertisement (On All India basis) for lining up of contract upto estimated
(evaluated) value of Rs. 100 lakhs. However press Advertisement may be considered
irrespective of Value, where general participation is involved. (E.g. disposal of office
furniture, cars etc.)

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All tenders above Rs. 1(one) Lakh will be displayed on RCF and CPP Portal.

(B) Limited Tenders are to be avoided to the extent possible in order to make fair and
transparent tendering procedure.

Estimated Value of tenders

In addition to the prequalified vendors, Enquiries to be sent to all registered parties

Upto Rs. 5 Lakhs

Minimum 6 parties
Above Rs.5 – upto Rs.10 Lakhs
Minimum 12 parties
Above Rs. 10 Lakhs
Open Tender

If, Limited Tendering is resorted to, in cases other than the above, approval of the concerned
GM or higher is required with proper justification.

However, limited tenders will be uploaded on RCF/CPP websites for information and if new
party applies, will be considered for future tenders subject to fulfilling of PQ criteria.

(i) Open tender (press) shall be floated wherever estimated (evaluated) cost exceeds Rs 100
Lakhs. (ii) Global tender shall be floated where source of supply may include imports and
estimated (evaluated) cost exceeds Rs 500 Lakhs.

A note as under shall be incorporated while publishing the NITs for tenders floated on
limited / single / proprietary basis on websites (CPP, NIC,RCF etc.), wherever for justifiable
reasons, party(s) applying against web-site, is(are) not being considered for subject (present)
tender but are being added, subject to meeting the PQ criteria, to the pre-qualified parties‘ list
for future tenders for that item : ―This tender is issued on a limited / single / proprietary
basis and is published on the Company‘s web-site and CPP portal for INFORMATION only.
Unsolicited bids will not be accepted in this tender. Other vendors interested in quoting in
our FUTURE TENDERS for this item, may visit www.rcfltd.com for details of registration /
prequalification.‖

Vendors qualified through RCF website /CPP portal will also be considered as prequalified
vendors.

[36]
NIT format in RCF for tendering:

Sr. No. Documents Item details

1 NIT
2 ANNEX-I
3 ANNEX-II
4 ANNEX-III
5 ANNEX-IV
6 ANNEX-V
7 ANNEX-VI
8 ANNEX-VII
9 ANNEX-VIII
10 ANNEX-IX
11 ANNEX-X
12 ANNEX-XI
Instruction for Bidders
Process compliance form
Pre-qualification details
Technical bid
Term & condition
Modalities for e-Tendering, e-Reverse
auction & special instructions
General term & condition
Format for bank guarantee towards
security deposit and performance bank
guarantee
RCF approved banker‘s list
Vendor updating form
Solvency certificate format
Benefits to micro & small enterprises

 The submission /Uploading of information, Undertakings, Documents, Certificates

etc. in Packets as given under.

PART-I : TECHNO-COMMERCIAL BID (Un-priced Bid)

To be To be
uploaded uploaded
Referring
in as per
Page No
Contents Annexure
Packet
No.
No.

EMD :

[37]
 Duly Signed, sealed and Scanned copy of E.M.D. Challan
deposited in Bank Account Or EMD Exemption Certificate
Packet :1 7 Annexure-
I

“PRE-QUALIFICATION DETAILS”

Packet :2 Duly Signed, sealed and Scanned copy of ―Pre-qualification 12-16 Annexure-
Details‖ II

SUPPORTING DOCUMENTS FOR PRE-

QUALIFICATION ”

Duly Signed, sealed and Scanned copy of self-attested

Party’s Party’s
supporting documents as per pre-qualification criteria :
Documents Documents
I. Certificates regarding Constitution of firm (as
applicable)
Packet :3
II. Authorization Letter
III. Work completion certificates,
IV. PAN card Copy,
V. Average Annual Certified /Audited Financial turnover
during last successive three years ending 31 st March of
the previous year.
VI. Turnover certificate for the said last successive 3 years
issued by Chartered Accountant.
VII. Bank solvency certificate,

VIII. The Tenderer should have GST Registration Number for

the location for which this Tender is invited.

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 (A) UNDERTAKINGS: To be submitted duly signed and
sealed.
Annexure-
AND XII & XIV
45-48
Packet :4 (B) PROCESS COMPLIANCE FORM, :

To be submitted ―Process compliance statement with duly

signed and sealed by authorised person of Tenderer.

PART-II: PRICE BID ( Bill of Quantity i.e. B.O.Q.)

Price Bid (BILL OF QUANTITY i.e. BOQ ) given with tender to be uploaded after
filling all relevant information like Basic Rate in Rupees per MT per KM for Slabs,
Rupees per MT for movement to local warehouse and for Rake handling.
(i) The priced BOQ should be uploaded in the system strictly as per the format
available with the tender failing which the offer is liable for rejection
(renaming or changing format of BOQ sheet will not be accepted by system).
(ii) Vendor should quote prices in BOQ only, offers indicating rates anywhere
else shall be liable for rejection.

EARNEST MONEY DEPOSIT (EMD) :

Another term for earnest money is deposit. Earnest money is the amount of money given by
the buyer to the seller with an offer to purchase a home. The purpose of the deposit is to show
good faith that you are serious about purchasing the home. EMD is Earnest money deposit.
LO is the Listing Office.

RCF has its format of EMD that is shown below:

E.M.D. –Scanned copy of EMD submitted to be uploaded in Packet – No. 1

RTGS/NEFT: EMD to be deposited in RCF‘s account through RTGS/NEFT and details

of this transaction with UTR number to be submitted along with technical bid for

[39]
 verification. Bank details for payment of EMD by RTGS/NEFT are as follows :
(I) Beneficiary Name : Rashtriya Chemicals & Fertilizers Limited

Name of Bank : State Bank of India

Branch : Amravati

Branch Code : 00311

IFSC Code : SBIN0000311

A/c No. : 00000011092399572

□ BANK & BRANCH NAME ______________________________________________

□ NEFT /UTR No _______________________________________________

Date of NEFT/UTR_______________________________________________________

OR

□ Upload the Valid MSME or NSIC CERTIFICATE with UDYOG AADHAR

MEMORANDUM No. (UAM No.) -for exemption of EMD.

Earnest Money shall not be accepted in any form other than specified above and tenders not
accompanied by earnest money as above, are liable to be rejected.

[40]
 1. Please Submit/upload the RTGS/NEFT receipt of EMD Payment.
2. No interest shall be payable on the earnest money deposit.
3. The earnest money deposit will be refunded to the unsuccessful tenderer/s after
finalization /issue of work Order of the said contract..

EMD SUBMITTED AS ABOVE

(Sign and Seal of Tenderer/Authorised person)

RATES TO BE QUOTED : UNDER GST SCENERIO (PRICE BID –BOQ)

(i) FOR TRANSPORTATION FROM RAKE POINT/WAREHOUSE: Only BASIC RATES

to be quoted for transportation to all KM Slabs, and transportation to local warehouse which
are INCLUSIVE OF WARAI CHARGES AND ALL OTHER CHARGES BUT
EXCLUSIVE OF GST.

(ii) FOR HANDLING OPERATIONS AT RAKE POINT: Only BASIC RATES to be quoted
for handling operations starting from unloading from wagons & stacking on platform to de-
stacking& loading into trucks which are INCLUSIVE OF WARAI CHARGES AND ALL
OTHER CHARGES BUT EXCLUSIVE OF GST.

GST as applicable on handling operations will have to be paid by Contractor to Government

and the same will be reimbursed by RCF to Contractor. At present GST rate applicable on
handling operations is 18%.

GST on transportation will be paid by RCF as per applicable rates under Reverse Charge
Mechanism OR

Transporter has option to pay GST on transportation under forward charge Mechanism. GST
rate is 12% on transportation under forward charge basis. GST on transportation under
forward charge mechanism has to be first paid to Government by contractor and same will be
reimbursed by RCF on submission of GST compliant Bill as per GST Norms in Annexure –
XV.

VOLUME OF WORK : There is no definite volume of work, which will be entrusted to

the contractor at any time or during the period of contract. But the quantity likely to be

[41]
moved will be as under at & from said rake point/ warehouse during the period of contract.
The Quantities of Slab-wise movement, Transp. to local W/H and Rake (unloading &
loading) are as under

Lead Estimated
Distance Qty.(M.T.)
Distance Slab (Kms) For the
Sl.
(For arriving Contract
No
at L-1) period.
1 0 to 15 Kms. (FLAT RATE IN RS/MT ) 15 1500
16 Kms. To 50 Kms- (GRADIENT RATE IN 35
2 6000
RS/MT/KM)
51 Kms. To 100 Kms.-(GRADIENT RATE IN 75
3 12000
RS/MT/KM )
101 Kms. To 150 Kms..-(GRADIENT RATE IN 125
4 5500
RS/MT/KM)

Total 25000
8 Transport to local warehouse(RATE IN RS/MT) FLAT RATE 3000

4.0 The Methodology of Quoting of Rates is as under :

0-15 KM (FLAT RATE) (RS/MT)

Transportation BASIC RATE 16-50 KM (GRADIENT RATE) (RS/MT/KM)
Rates INCLUSIVE OF 51-100 KM (GRADIENT RATE) (RS/MT/KM)
ALL CHARGES 101-150 KM (GRADIENT RATE) (RS/MT/KM)
BUT 151-200 KM (GRADIENT RATE) (RS/MT/KM)
EXCLUSIVE 201-250 KM (GRADIENT RATE) (RS/MT/KM)
OF GST Transportation to Local Warehouse (FLAT (RS/MT)
RATE)

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 SINGLE BASIC RATE INCLUSIVE OF WARAI
CHARGES AND ALL OTHER CHARGES BUT (RS/MT)
Rake Handling EXCLUSIVE OF GST FOR UNLOADING FROM
Rate WAGONS & STACKING ON PLATFORM, DESTACKING
& LOADING INTO TRUCKS

5.0 EVALUATION OF RATES: Assuming if the rates are as follows: -

Sr. Slab Lead Distance (KM) Rate in Rs. Per M.T. (for
No. for arriving at L-1 example)BASIC RATE INCLUSIVE
OF ALL CHARGES BUT
EXCLUSIVE OF GST

A 0 to 15 KM 15 KM Rs. 200.00 (Rupees Two hundred

&paise zero )

B 16 -50 KM 35 KM Rs. 4.00 (Rupees four &paise zero

only)

C 51 – 100 KM 75 KM Rs. 3.00 (Rupees three &paise zero

only)

D 101 – 150 KM 125 KM Rs. 2.00 (Rupees two &paise zero

only)

E 151 – 200 KM 175 KM Rs. 1.00 (Rupees one &paise zero

only)

F 201-250 KM 225 KM Rs. 0.50 (Fifty paise only)

G Transp. to Local W/H Flat Rs, 50.00 (Rupees Fifty & zero
paise only)

H AT RAKE POINT FOR UNLOADING FROM Rs. 50.00 (Rupees Fifty only)
WAGONS & STACKING ON PLATFORM,
FOR DESTACKING & LOADING INTO
TRUCKS AND ALSO DIRECTLY LOADING

[43]
 INTO TRUCKS FROM WAGON : ONLY
BASIC RATE TO BE QUOTED INCLUSIVE
OF WARAI CHARGES AND ALL OTHER
CHARGES BUT EXCLUSIVE OF GST

1) For Slab-wise movement at 75 Kms., the rate will be as under

For transportation I) For local movement up to 15 KM =Rs. 200.00
II) + movement in next Slab (16-50 KM) =[35-15 KM]= 20 KM X Rs.
4.00] = Rs. 80.00
III) + Movement in next slab [51-100 KM] = [50-35 KM ]= 15 KM X Rs. 4.00
=Rs. 60.00) + [ 75-50 KM ]= 25 KM X Rs. 3.00 =Rs. 75.00

Thus total for 75 KM = Rs.200.00 + Rs. 80.00 + Rs. 60.00 + Rs.75.00 = Rs.
415.00 per MT
+ Transportation to local W.H. =Rs.50.00
For Handling Basic rate for unloading and loading = Rs. 100.00 per MT
(Unloading
&Loading)
Grand total = Rs. 415.00 (GST extra will be paid by RCF Under Reverse charge mechanism)
+ Rs. 50.00 for transportation to local W.H. + Rs. 100.00 (GST extra will be reimbursed to the
Contractor) = Rs. 565.00 /MT

The above is example for Tenderers information; however the payment will be made for the
actual H & T work done.

SCOPE OF WORK & TERMS AND CONDITIONS OF CONTRACT.

1.00 Rashtriya Chemicals & Fertilizers Ltd, invites e-tenders for handling & transportation
of fertilizers in bags of 50 Kgs., 45 Kgs., 25 Kgs., and / or 10 Kg each etc. and also
Minikit bags from said Rake point/warehouse to various destinations of said district
and other destinations of said State. The contract involves handling and transportation
of fertilizers at said Railhead/Godown to various destinations of said district and other

[44]
 destinations of corresponding State in such a way that there will be neither cut and
torn bags nor any weight loss due to use of pointed objects/hooks etc

1.01 The successful tenderer shall ensure that the material handed over to them is
delivered in full without transshipment at destinations without any damage either to
the material or to the packing in such a way that there will be neither cut and torn bags
nor any weight loss due to use of pointed objects/hooks etc within 3 days from the
date of lifting from said rake point/ warehouse.
2.0 PERIOD OF CONTRACT

The period of contract is 18 (EIGHTEEN) months. However RCF reserves the right to
terminate the contract, without assigning any reasons thereof, by giving 7 (Seven) days
notice.

It is further agreed that the Company may forfeit the Security Deposit on refusal/failures of
the contractor to work promised herein above.

5.0 ESCALATION/DE-ESCALATION OF RATES (DIESEL PRICE ADJUSTMENT):

a) Any increase or decrease in the prices of diesel rates will be adjusted on the basis
of one litre = 4 km/10 MT, which means for every 40 paise of increase per litre in
diesel price, one paise per KM/MT will be allowed in case of increase and will be
reduced in case of decrease in the Diesel price.

The Transport Contractor will have to supply sufficient number of Trucks per day as
required during the period of contract, within the stipulated time, failing which the
consequences thereof will rest entirely with the contractor.
The transport contractor will supply trucks from time to time as fixed and intimated
by the company within the stipulated time (i.e. maximum of one day for lifting from
rake point and maximum three days for lifting from warehouse). In case of failure to
supply trucks as stipulated above and as given in the quota letter of the company,
penalty at the rate of Rs 700/- (Rs Seven hundred only), plus GST, per truck
short supplied in the stipulated period will be imposed on the contractor.

[45]
 The transport contractor will have to transport the fertilizer without transshipment
failing which a penalty of Rs. 700/-(Rs. Seven hundred only) ), plus GST, per
truck will be imposed. Only in case of accident the penalty will be waived on
submission of sufficient proof i.e. FIR lodged etc. with the approval of General
Manager (Mktg).

6.0 TRANSPORTATION FROM RAILWAY STATION

The Transport Contractor will undertake the job of operation at Railway stations
starting from unloading from the wagons upto loading into trucks. These charges will
be as per rates finalized in the contract. No Hundekari charges will be paid. The
Transport Contractor will be responsible for any demurrage/ Warfage charges to be
paid to the Railways.

6.3 HANDLING AND TRANSPORTATION

All Fertilizers companies need to move their material from the point of production to the
point of final consumption through supply chain management and various distribution
channel with safe handling & transportation of product at right place, on right time at
most viable cost. For the said purpose companies have Logistics arrangements to line up
H&T contracts for a period of time to facilitate and support marketing activities.

1.0 Objective & Scope:-

Handling & Transportation contracts are lined up to facilitate the MOST economical
movement of fertilizers to various destinations from earmarked rake point/warehouse.
Material is loaded in the railway wagons at the two units as per the indents/PO generated
in SAP system by Logistics. Railway Receipt (RR) are despatches to Area office by
Logistics. After the rakes are placed at the destination rake point broadly, the following
activities are carried out at the rake point/warehouse covered under H &T contract.

i) Unloading from the wagons and stacking at platform.

ii) De-stacking and loading into trucks.

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iii) Movement of material directly from rail-head to parties against sale orders,
movement to warehouse.
iv) Movement from warehouse to parties‘ destinations against sale orders.

ECONOMIES OF RAIL & ROAD TRANSPORTATION

[47]
 2.0 Basic Requirements for Lining up H&T contracts :

2.1 Administrative Approval :Proposals for obtaining administrative approval for lining
up new H&T contracts from area Marketing office to be put up to HQ at least four
months in advance with estimated quantity based on the average sale quantity of last
three years adjusted to quantity requirement of fifteen months vis –a-vis sales plan
for the current year.
2.2 Press ad Matter and expenditure to be collected from empaneled Ad agency.
2.3 Estimated contract value has to be worked out with base diesel rates and current rates
and mentioned in the proposal Working sheet to be enclosed. Any Change in whole
sale price index during the period is to be adjusted
2.4 Any clarifications and updates may be collected from Logistics section before putting
up the proposals for rake points.
2.5 Specific NIT is to be prepared for single rakepoint basis by the Area Office as per
latest tender guidelines .NIT along with proposal to be forwarded through proper
channel to registered office.
2.6 Final evaluated proposal for obtaining Administrative approval as per DoP clause
No.3.1.1 is to be put up by Logistics covering all details about the rake
point/warehouse proposed for lining up H&T contract.

FUNCTIONS AND PRINCIPLES OF TRANSPORTATION WITH EMPHASIS ON

MOVEMENT BY ROAD

3.0 Check List for e- compliant NIT,

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3.1 Proposed Rake point/Warehouse name & address to be clearly mentioned. All the
pages of NIT are to be numbered and total No. of pages to be mentioned on cover
page.
3.2 Name and contact details of the NIT issuing authority are to be mentioned on the
cover page of NIT.
3.3 In case of any emergency or accident state incharge will be contacted in the capacity
of security coordinator by H&T Contractor.
3.4 Date and time of submission and opening of tender along with pre-bid meeting time
and place to be mentioned on cover page of NIT.
3.5 Scope of work to be properly specified..
3.6 Rate quote nature to be specified whether Gradient/Block wise.
3.7 Offer Validity period of 120 days.
3.8 Currently, Period of contract is for 15 months
3.9 Terms of Payment and levy of penalty as per standard NIT.
3.10 e-RA clause as applicable as per the contract value.
3.11 Approved average lead distance in (Km) to be mentioned in BOQ
3.12 Terms and conditions governing the contract to be verified.

4.0 Lining up of the H&T contract by way of contract e-tender:

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4.1 Valid Digital Signature Certificate mandatory for Logging In in CPP Portal
4.2 Creation of tender documents i.e. NIT & BOQ.
4.3 Systematic Upload of tender documents in CPP Portal and RCF Web site following
all the steps.
4.4 Ensuring schedule date and time of tendering process in e-tender system in CPP
Portal.
4.5 In case of 2 or less tenderers participating in tender, bring to the notice of concerned
DGM and upload corrigendum seeking extension of tender submission date further
upto a period of seven days.
4.6 Uploaded corrigendum with approval within the last date of upload of tender if any
discrepancy is reported in NIT.

5.0 Pre-qualification process for empanelment of H&T contractors.

5.1 Download technical bids from CPP portal after opening of tender documents on
schedule date and time.
5.2 Carry out scrutiny of documents strictly as per approved PQ criteria for
prequalification recommendations of the parties.

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 5.3 List out shortfall documents of all parties and upload in CPP Portal for one time
submission of shortfall documents by the concerned tenderers giving a maximum time
period of seven days.
5.4 After the completion of the time period of submission of shortfall documents, Local
approved committee is to put up for Pre-qualification recommendations and forward
to HQ through concerned DGM.
5.5 Logistics to evaluate local committee recommendations and put up for committee
recommendations for approval as per DoP 3.2.3.
5.6 After the PQ approval. Feed the names of the Pre-qualified parties in the system
mentioning the date and time of price bid opening and the parties will be informed
about their Pre-qualification status by system.
5.7 Price bids are to be opened in e-tender system by marketing and finance officials by
decrypting with DSC on schedule date and time under intimation to Vigilance Deptt.
5.8 After Price bid opening L-1 party is determined by the system.

6.0 Procedure of H & T / Steps of H & T:-

6.1 Receipt of indents/orders from dealers as per demand
6.2 Preparation of rake programme and intimate to the Transporter
6.3 Receipt of Rake at rake point
6.4 Railway receipt (RR) handover to Transporter (In case RR not received on time then there
is option for submission of indemnity bond on stamp paper to concern railway authority
to enable to handle the rake without RR, RR can be submit letter on).
6.5 Preparation of delivery Challans/ lorry receipt /Bilty by Transporter for delivery of
material
6.6 Preparation of DO (Delivery orders) and handover to the transporter
6.7 Delivery of material to customers as per issued delivery order by concern district
incharges
6.8 Receipt of Acknowledgement about delivery of material to customer on delivery Challans
6.9 Preparation of final delivery report & submission of the same to concern district
incharges by transporter
6.10 Based on final report cross verification about delivered qty. with respective dealers
done by the concern district incharges
6.11 Raising of invoices to customers
6.12 Preparation & submission of Bills by the transporter to respective District offices

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6.13 Verification of bills like Bill Qty., Delivery destination & Acknowledgement of
delivery Challans
6.14 Reconciliation of Billing Qty. with AO Invoice Qty.
6.15 Forwarding of H & T bills to Finance department through A/I for settlement
6.16 Through checking of bills in all respect i.e. Qty., delivery challan, destination,
distance, rate including diesel hike impact, slab wise qty. monitoring
6.17 Settlement of Bills as per NIT clause

7.0 Conduct of e-RA as per the procedure:-

7.1 After the price bid opening e-RA is to be conducted for all the parties for further rate
reduction. It is mandatory for all the parties to participate in e-RA .
7.2 e-RA will be centrally coordinated by Logistics with the service provider. All the details
along with decrement factor for e-RA will be provided to the service provider by
Logistics.
7.3 Before conducting e-RA demo training for all the participants will be conducted by the
service provider for systematic submission of bids.
7.4 After the e-RA, the L-1 position and variance in the contract value over the estimated
value will be appraised to the committee and if it is required the L-1 party may be called
for final negotiations.
8.0 Committee Negotiations:-
8.1 Negotiations may be conducted on case to case basis as per the requirement & approval.
8.2 .The concerned area offices are required to submit all market information pertaining to
the rake point along with the competitors‘ rates compiled and compared with RCF lead
distances & L-1 rates. Negotiations will be centrally coordinated by Logistics.

9.0 Final Award of contract :-

9.1 The proposal for final approval for award of contract as on now for a period of 15 months
will be put up by Logistics covering all details as per DoP 3.2.3.
9.2 Approval for award of contract is to be handed over to concerned area office for issue of
work order signing of contract with the L-1 party and execution of contract as per terms
of NIT.
9.3 EMD of the unsuccessful tenderers are to be returned after the finalization/award of
contract .

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9.4 Security Deposit is to be collected from the L-1 party as per NIT.
10.0 Execution of Contract :-
10.1 The H&T contract is to be strictly executed as per the terms and conditions of NIT,
committee recommendations and remarks of approving authority.
10.2 Risk control Matrices (RCMs) as applicable for marketing must be followed.
10.3 Time bound agreement on stamp paper is to be signed by the party and security
deposit within the given time period is to be collected from the party .
10.4 The volume of work is no guarantee .However, the performance of the contractor is to
be regularly monitored.
10.5 In case on non-performance ,suitable penalty is to be levied as per NIT clause.
10.6 It is to be ensured that the contract is not sub-let.
10.7 Four months before the expiry of fifteen months of the H&T contract of a rake point ,
proposal is to be put up from the area office for lining up the contract to avoid any delay
in the process.

11.0 Internal Controls for operative effectiveness of H&T Contracts.

11.1 Working on near realistic estimates on scientific basis.
11.2 Advance planning and putting the proposals on time to avoid any delay and further
extensions of existing contracts.
11.3 Judicious working while processing of transporters‘ bills with diesel escalation/de-
escalation formula mentioned in NIT. The last date of upload of price bids will be the
base rate for working out diesel formula.
11.4 Timely processing of bills, verification of payment of service tax by the transporter
and deductions and payment as per NIT clause. Compliance with the Govt. Notifications
issued from time to time .
11.5 Collection of security deposit and releasing after the completion of the contract with
necessary deductions if any.
11.6 Stock reconciliation of the executed quantity through H&T contract with SAP data.

Extension of contract period: Before expiry of original contract period will have initiate for
lining up of new contract, in case new contract finalization process is taking time then there is
option for extension of existing contract for further specified period based on same terms and
condition subject to competent authority approval

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Regularizing of contract: After expiry of original contract period as well as extension
period (if extended) will have to analyse slab wise approved Qty. V/s slab wise actual
executed Qty. and after analysis if it is find that actual executed Qty. is higher as compare to
approved Qty. then will have to put up for regularization of contract.

6.4 Review of Literature

1. Specialty chemical cos capex to jump 70% by 2020: Report
November 13, 2018 05:06 ET | Source: Research and Markets

The chemical manufactures are expected to jump to 70% combined in fiscal 2018 and 2020.
Domestic demand has grown at 8-10% in 2017-2019. Because of environmental compliance
and cost competitiveness capacities coming up will remain high over. So the Indian specialty
chemicals in global supply chain are seen rising 100 basis points to 5.2 per cent in fiscal
2022.

2. Indian Fertilizer Market Industry Trends, Share, Size, Growth, Opportunity and Forecast
Report 2018-2023

June 19, 2019 | Source: IBEF

The Indian fertilizer market is looking forward to reach CAGR of around 13% during 2018-
2023. Fertilizers have played a key role in the success of India's green revolution and
subsequent self-reliance in food-grain production. The increase in fertilizer consumption has
contributed significantly to sustainable production of food grains in the country. As a result,
the demand of fertilizers has witnessed double digit growth rates over the past several years.
Still, the average intensity of fertilizer use in India remains much lower than most of the
developed and emerging countries around the world.

[54]
 7. Observation
7.1 Classification of observation
7.1.1. About organisational training
Every year RCF gives training to many interns. Students from various backgrounds
like Agriculture, Biotechnology, Engineering and Management etc. gets chance for doing
internship at RCF. They have internship fees as per the time of training period. Usually the
Summer Internship period for management students‘ period is of two months so in the month
of May and June students from many colleges applies for internship at RCF. HR committee at
RCF makes batches of student as per student‘s specialisation like Marketing, Operation,
Finance, HR gets assigned under respective Manager.
I was assigned under guidance of Marketing General Manager in Logistics. Training
was giving on-floor and not on field. As I was in department of Handling and Transportation
by Rail. They made us understand How and where to apply Tender Online, what is its
process? How handling and transport contract are made. What is the approval process?
They gave us various files of such contracts of different contractors to read. There SOPs,
NIT, Updated Tender Guidelines etc. were given to us for more understanding. At every
Saturday all Interns from all departments were called at one place where HR of RCF make
each intern to interact with the rest. There used to be presentation session, and also interns
were told to share their experience at RCF and what department they are in what all they
learned in that week etc.

7.1.2. About self-learning:

Firstly, about training I got to know how the process of handling and transportation
contract happens at government organisation their Approvals process. How they maintain
their records. Secondly because of weekend presentation session we were able to know little
about other department also. We meet other interns, got to know their reviews. Presentation
session increased our self-confidence to speak to face unknown group of people.
Also, HR department gives on-job training to their employees once in 2-3 months. Apart
from their daily job 2hr session other than Work like Personal Development session,
Motivation session etc. are given. Luckily I was the part of same. Along with Employees of
RCF we were also asked to attend the session. The session was of ―Conflict in Management‖
and ―Secret of Happiness‖. And so I learned some more valuable things during internship
period.

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7.2 Trends/Patterns
1. REDUCTION IN TENDER CYCLE TIME
In the pre e-procurement era, the departments used to take 90-150 days for finalization of
high value tenders. The tender cycle time has gradually come down to an average of 45 days
over a period of one year and further reduced to 35 days at the end of the second year. This
improvement is due to automated work flows, the ability to track and monitor file movements
through a function called ‗Tender tracker and tender monitor‘, which pictorially displays the
tender file status, indicating the number of days each government worker has taken to clear
the file. These software features have made the procurement process transparent. There is a
greater accountability since the electronic records and documents can be retrieved at any
given time and all the activities of a system user are logged in the system. The works
department has been able to divert surplus resources from procurement wings to other needy
wings like work execution.
2. REDUCTION IN OPPORTUNITIES FOR CORRUPT PRACTICES
The e- Procurement system allows a supplier to view the NIT, download bid documents and
Bill of quantities, free of cost on ‗anywhere‘ and ‗any time‘ basis from the internet. This has
empowered the supplier as he is no more dependent on the RCF‘s officers for issue of RFPs,
clarifications on the bids, bid submission, information on tender evaluation status etc. The
entire e-Procurement process has been designed to eliminate the human interface i.e. supplier
and department interaction during pre-bid and post bid processes has been minimized. The
automatic tender evaluation functionality has reduced subjectivity in tender evaluation and
helped to curb opportunities for corrupt practices to a significant extent and increased the
accountability of procurement officials.
In terms of transparency, any supplier or an ordinary citizen can get information about
tenders which are live on the platform through a search engine on the home page. The NIT,
corrigendum, bid documents, Bill of Quantities are available to all citizen for free downloads.
A supplier participating in a tender knows the list of other participants, the documents
furnished by his competitors, price quotations and the evaluation result, as soon as a stage is
completed by departments in the system. Short information on the status of tenders and award
values will also be available to any citizen accessing the web site.

8. Identification of critical problems and issues.

No critical issue as such.

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 9. Conclusion:
9.1 Summery of trends in organisation
1. Along with RCF many government organisation has started using online way to upload
tenders on government website Central Public Procurement (CPP Portal) which maintains
transparency in all aspects of procurement.
2. In the pre e-procurement era, the departments used to take 90-150 days for finalization of
high value tenders. The tender cycle time has gradually come down to an average of 45 days
over a period of one year and further reduced to 35 days at the end of the second year.

9.2 Summary of feedback given to organisation

In this period of two months I observed that mostly employees are well experienced
with their job. Latest tools and techniques are used for process. Organisation has cooperative
and friendly environment. In brief, RCF is one of the good places to work with.

9.3 Summary of self-learning

This internship provided me a practical experience and exposure of how the logistics
department works in an organization. The internship report consists of the information about
the company and work done. This small attempt made me realize the importance of
discipline, time and professionalism when one is actually employed to an organization.

[57]
 10. Learning and Takeaways

1. Application of concepts, tools, techniques and skills learnt at PiMSR

As we have learnt and implicated the industry analysis tools such as PESTEL, Porters Five
Force Model, Porters Generic Model; Company analysis such as SWOT, 7s,Value chain
analysis, BCG and Ansoff‘s matrix. And also learned how to use online library
EBSCOHOST

2. Mention new knowledge, tools techniques or skills that you may have picked

As it was new learning experience to work in organization. Various things got to know such
as documentation, handling processes, how to deal with contracts, management of manpower
and the working of some department.

3. Any augmentation of soft skills such as building interpersonal relationships?

During these 2 months we were interacted with General Manager of Marketing in Logistics, I
observed how teamwork helps to solve critical issues. Also got a chance to attend session on
―Conflict Management‖, and so learned how to react in such situation. Also met and
interacted with Finance Deputy Manager, I somewhat understand how work ethics in
government office are. I observed how our immediate Manager (Marketing in Logistics) used
to negotiate with the vendor, then the procedure of making contracts etc.

4. Any direction for future learning or career path that you may like to pursue

During internship period at RCF ltd I learned several things such as outbound logistics,
procedure of handling and transportation contract, e-procurement, government regulation on
goods and also government subsidies on transports etc.

This will help me in constructing my career transportation in logistics industry or in any PSU
organization.

[58]
 11. References & Bibliography
a) References

1. RCF Home Page (http://www.rcfltd.com/index.php/en/)

2. RCF intranet (http://172.14.2.64/Pages/RCFHome.aspx)

3. Central Public Procurement Portal (www.eprocure.gov.in)

4. T.S. Krishnamachari (Deputy Secretary to the Government of India); Preliminary

Information Memorandum (PIM) for Bidders - RASHTRIYA CHEMICALS &
FERTILIZERS LTD.
(https://dipam.gov.in/preliminary-information-memorandum-pim-bidders-rashtriya-
chemicals-fertilizers-ltd)

5. Government of India ; PSU Division › Rashtriya Chemicals and Fertilizers Limited

(RCF)
(http://fert.nic.in/page/rashtriya-chemicals-and-fertilizers-limited-rcf)

6. June 19, 2019, Specialty chemical cos capex to jump 70% by 2020: Report, IBEF;
(https://www.ibef.org/news/specialty-chemical-cos-capex-to-jump-70-by-2020-
report)

7. November 13, 2018, Indian Fertilizer Market Industry Trends, Share, Size, Growth,
Opportunity and Forecast Report 2018-2023, ResearchAndMarkets
(https://www.globenewswire.com/news-release/2018/11/13/1650191/0/en/Indian-
Fertilizer-Market-Industry-Trends-Share-Size-Growth-Opportunity-and-Forecast-
Report-2018-2023.html)

8. Anshul Chouhan, May 23, 2017, Indian Logistics Industry — Overview & Impact of
GST
(https://medium.com/@anshulchouhan/indian-logistics-industry-overview-impact-of-
gst-3f38c617e39)

9. 2019 Vol: 5 Issue: 1, International Review of Research in Emerging Markets and the
Global Economy-An Online International (Double-Blind) Refereed Research Journal
(http://globalbizresearch.org/emergingmarkets/issues.php?id=258)

10. PTI New Delhi , August 23, 2018, Moody‘s puts India growth in 2018, 2019 at 7.5%,
The Hindu Business Line
(https://www.thehindubusinessline.com/economy/moodys-puts-india-growth-in-
2018-2019-at-75/article24759405.ece)

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b) Bibliography

i. Tender Guideline Version 3.0 of RCF

ii. NIT documents of RCF

iii. Sample - India Fertilizer Market - Mordor Intelligence

iv. Annual Report of RCF

v. Standard Operating Procedure (SOP) for Handling & Transportation (H&T) Contract
on all India basis

vi. Trombay Process & Services (2009 edition)

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