Rishi Shipping

Strategic Managementat

Presented By:Fenil Ramaigya (09091)Pawan Kumar (09098)Tapan Tacker (09110)

Shweta Thomas (09111)Tithi Srivastava (09112)

Jay Vidhani (09119)

Industry Overview

• Chennai, Cochin, Ennore, Jawaharlal Nehru Port Trust (JNPT), Kolkata (including Haldia), Kandla, Marmugao, Mumbai, New Mangalore, Paradip, Tuticorin and Visakhapatnam.

• 200 non-major or intermediate ports. However, only around one-third of these are operational.

Tolani Institute of Management Studies 2Apr 10, 2023

• Traffic handled at Indian ports (both major and non-major) has increased at a CAGR of 9.1% from 578.7 million tonnes in FY06 to 818.7 million. tonnes in FY10.

• 24 million tonnes of cargo handled at Kandla Port in FY10.

Industry Overview

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Company Overview• Established in 1997 by Mr. B.K. Mansukhani.• 200 trucks, dumpers and trailers.• 45 loaders.• 40 excavators.• 4 mobile cranes, 8 self propelled barges each of 2000

metric tonnes capacity.• 4 dumb barges each of 1000 metric tonnes capacity

and two dumb barges of 2500 metric tonnes capacity along with four tugs for towing dumb barges.

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• IFFCO, IPL, NFL, RCF, CHAMBAL FERTELISERS and ZUARI INDUSTRIES.

• RS has also first time introduced containers for carting fertilizer bags from godowns to railway platforms for loading into rakes.

• RS has installed 20 electronic bagging plant machines in port for bagging and stitching fertilizer/sugar bags.

• In the year 2009/10, RS handled 6 million tonnes of cargo, which is ¼ of the total cargo (24 million tonnes) handled at Kandla Port.

Company Overview

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Mission

• To Provide Turn-Key Solutions in logistics for importers and exporters at competitive rates.

• To become a market leader by attracting more customers by maintaining healthy relations.

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Hierarchy

Chairman (B.K. Mansukhani)

Managing Director (Manoj Mansukhani)

Customs Dept.

Stevedoring

Barges

Maintena

nce Dept.

Transportatio

n

Managing Director ( Neetu Mansukhani)

A/C Dept.

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Services Offered

• Stevedoring• Custom House Agent• Clearing & Forwarding• Cargo Handling• Barges• Warehousing & Storage• Timber, Sugar, Coal & Fertilizers

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SWOT AnalysisSTRENGTHS

•Favorable Location•Good Management

Reputation•Strong workforce•Turn-Key solutions

OPPORTUNITIES• High Technology Solutions

for faster services• Turn-Key Solutions for

Timber importers

WEAKNESSES•Cannot provide services to small scale importers and

exporters• Cannot move cargo ships to

and fro to nearby ports

THREATS• Unfavorable Political

Environment• Global Financial Crisis

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Barges

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Environmental Scanning• Event: Discovery of Limestone at Jakhau.• Trends: Cement industries at Mul Dwarka

started purchasing gypsum from Jakhau.• Issue: Cargo ships cannot move between

nearby ports due to M.S. Act.• Expectation: Cargo movement will be allowed

in the new River Sea Act.

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ETOPEnvironmental

SectorsNature of

ImpactReason of Impact

Economic As Indian Economy is growing rapidly hence, EXIM will increase.

Market Rishi Shipping has the finance and expertise to capitalize the growing market.

International As more number of Companies are becoming Globalized, EXIM will also increase.

Political Changes in government policies are very slow.

Social Vessels are more efficient carriers than Trucks etc. Road traffic will decrease.

Technological Introduction of barges and floating cranes has enabled new solutions for the industry.

Suppliers Healthy competition in supplier market, but very high steel prices.

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star

Stevedoring(Loading/Unloading

Vessel)

•High Market share•More opportunities further•Less Competition

Question???

Packing/Unpacking

•Less Competitors•More Profit

Cash Cow

CHA(Custom House Agent)•High Competition so less growth•High Investment

Dog

Forwarding •Low Scope•High Competition•Low profit margin

HIGH

LOW

HIGH LOWRelative Market Share

Rela

tive

Gro

wth

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BCG Matrix

RivalryAmong

CompetingSellers

Substitute

Products

BuyersPotential New Entrant

s

Suppliers

Porter’s 5 Force Model

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Corporate-Level Strategies

Stability• No Change• Profitability• Pause and proceed with caution

Restructuring

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Business-Level Strategies

Before Proceeding, we need to understand the following terms:

• Charterer• Demurrage• Despatch

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Cost Leadership

Differentiation

Focused CostLeadership

FocusedDifferentiation

Business-Level Strategies

Broad Target

Narrow Target

COMPETETIVESCOPE

Low Cost products/services

Differentiated products/services

COMPETETIVE ADVANTAGE

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Strategic Alliances

• Working at full capacity

• Sometimes has to hire machineries and labor to complete its work

• But can never give its own machineries for hire

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Market Location Tactics

• Warehousing near port

• Packing/Unpacking facilities near port

• Dispatch through Railways

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Corporate Social Responsibilities

• Suggested changes in River Sea Act soon to be implemented

• Has been actively involved in seminars to bring awareness about shipping

• Soon to appear as a guest faculty at TIMS for teaching shipping course

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Conclusion