Winter Internship Project

Carried out at

National Engineering Industries Limited, Jaipur (Raj.)

Submitted towards the partial fulfillment of

MBA(Autonomous)+MMM
(2006-08) From:

VISHWAKARMA INSTITUTE OF MANAGEMENT

Submitted by: Vivek Goyal
Project Guide:

Mr. Anil Shah

(Sr. Manager (Marketing)

NEI Ltd., Jaipur

Light passenger Vehicle

Commercial Vehicle

Tractors

Two Wheelers

Three Wheelers

PCs/ MUVs/SUVs

LCVs/ Buses/ M& HCVs

Farm /Earthmoving & construction equipment

Motorcycles Scooters/Moped

Passenger/ Goods Carrier

KEEPING THE NATION ON THE MOVE

CONTE NTS
1. Acknowledgement. 2.Declaration 2. Objective 3. Rationale for undertaking the research 4. Executive summary 5. Introduction a. Industry scenario b. Organization profile c. Organization structure 6. Objective of the study 7. Methodology. 8. Sample for survey 10. Scope of the study
3

11. Recommendations 12. Conclusions. 13. Bibliography.

ACKNOWLEDGEMENT
I feel great pleasure to thank

Dr. Ajay Pandey, Dy. Div. Manager (HRD)

The coordinator of my winter project at the organization . Without his

support it would not have been possible to complete my winter project.

The word falls short to show my gratitude to

Mr. Anil Shah, Sr. Manager-Marketing

For giving me the exposure to the industry and giving in depth knowledge of various marketing strategies applied in the dynamic business environment.
I am deeply thankful to Mrs. Manisha Maurya, Asst. Engineer and all staff members of Marketing Department, for encouragement, heartily cooperation and valuable guidance.

This is a Winter Internship report on training at NATIONAL ENGINEERING INDUSTRIES LTD. JAIPUR. The training period was of 30 days. It started on 11-12-2006 and completed on 10-01-2007.

Declaration

I, Vivek Goyal, student of MBA(Autonomous)+MMM (2006 2008),VIM, Pune hereby declare that this project report titled To identify the new product for development through market research activity has been originally prepared by me and pertains to my original work done during the winter training tenure, for National Engineering Industries Ltd., Jaipur. One copy of this project report has been submitted to NEI and another to VIM, other than that this report has not been submitted to any other organization.

Vivek Goyal
MBA(Autonomous)+MMM (2006 - 2008) VIM, Pune

OBJECTIVE:

To identify the new product for development through

market research activity

Rationale for undertaking the research: -

This study was chosen keeping in view the interests of the company as well as the winter trainee. The target aimed by the research was To identify the new product for development through market research activity in bearing market in the Jaipur region by interviewing Workshops owners/mechanics and Distributors/Stockiest of various companies. This meant a lot of exposure for the trainee as and when he would interact with
7

different people with different requirements. Also both the organization and the trainee will know the trends in market. The survey so done may form the basis of plan of action by NEI Ltd. It will help them to know weather the product should be manufactured or not. The organization can decide which product should be manufactured to get increasing sales and growth of organization.

Executive Summary :-

I. Study of bearing industries in India. Categories of bearings. Major players in the industry with foreign collaborators. Distribution of production. Industry structure. Market share of major players. Structural deficiencies. Market dynamics. Share of user segment. Opportunities & Threats to bearing industry.

II. The next section includes a detailed profile of National engineering Industries Ltd, Jaipur. The profile includes the following headings. o o o o Establishment. Vision, Mission & Values. Milestones. Technical collaborations.

o o o o o o o o o o o

Valued customers. Quality policy Environmental policy. Product range. R&D Quality certifications. Marketing network. Organizational departments. Organizational structure. SWOT analysis. Competitors

III. This section includes a study of the 30 Workshops/Mechanics & Distributors/Stockiest visited in Jaipur.
IV. The fourth section includes recommendations based on data gathered and

first hand experience of the bearing market in Jaipur. V. The fifth section includes a conclusion, which sums up the entire study to Recommendation. Conclusion

Indian Bearing Industry- A Profile

The Bearing manufacturing activity in India started in the late 40s with the production of small and standard bearings.

The Indian industry today manufactures small and medium bearings mainly in five categories. 1. 2. 3. 4. 5. Ball bearings. Cylindrical roller bearings. Taper roller bearings. Spherical roller bearings. Needle roller bearings.

Collaboration with foreign companies

Indian company SKF Bearings National Engineering Industries Collaborator SKF, Sweden NTN, Japan, BRENCO U.S.A. , Izumi Kinzoku Kogyo Co. Ltd., Japan Torrington, USA & Nadella, France FAG, Germany Timken, USA Clevite, USA

NRB Bearings FAG Precision Bearings Timken Bimetal Bearings

Today the industry is meeting around 70% of its demand for common varieties and sizes of bearings and rest is imported. The industry has established a highly diversified product range of around 500 types of bearings. Automobile industry accounts for bulk of the total demand of this industry. Given the rising production in auto sector, the demand for bearings is going to increase in coming years. The production for the year 2003-04 was 2705 million numbers. Almost all the units have foreign collaboration. The Indian Bearing industry makes around 500 types of bearings as against over 30,000 types of bearings being used by the Indian industry. In our large country we hardly manufacture 2-3% of the total range being offered around the world. And the industrial units--however big or small--are

10

mainly dependent on imported stuff. Our manufacturers in India are small producers as compared to the volume of requirements received by the bearing traders.

Distribution Of Production:
The bearings industry can be further sub-segmented into ball and roller bearings. Roller bearings further are of four types - taper, cylindrical, spherical and needle roller bearings. During the past six years, the highest growing sub-segments have been cylindrical roller and needle roller bearings. Both these have grown on a lower base. Distribution Of Production Bearing Type Ball Bearing Taper Roller Cylindrical Roller Needle Roller Spherical Roller Share (%) 54 30 7 6 3
7 6 3 Ball Bearing Taper Roller 54 Cylindrical Roller Needle Roller Spherical Roller

30

Industry Structure:
Bearing Industry in India can be divided into three segments.
Industry structure

1. Organized sector. 2. Unorganized sector. 3. Imports.

30%

1 55% 2 3

15%

11

Market Share Of Major Players:

Name of the Company SKF NEI (NBC) FAG NRB ABC TATA TIMKEN HMT Total Sales in Fy 05-06 (In crores) 594 409 360 225 154 135 126 24

700 600 500 400 300 200 100 0

TA TA TI M KE N (N H M T FA G SK BC N R AB C ) B F

594

409

360 225 154 135 126 24

12

N EI

Market Dynamics:
Original Equipment Manufacturers (OEM) Market: The OEM market for bearing represents the demand arising out of manufacturing new vehicles and industrial manufacturers. The demand for the OEM market directly depends upon the growth in user industry. OEM market accounts for 60% of total demand of bearing industry. This market is characterized by requirements of high quality, stringent delivery norms and lower margins.

Replacement Market:
The replacement market represents the demand arising on account of replacing the used and worn-out bearings. The size of replacement market is dependent on equipment population and frequency of maintenance. Replacement market accounts for 40% of total demand for bearing industry. The margins in this market are higher. The replacement market is highly price sensitive and has higher share of unorganized players and cheaper imported bearings. OEM Market Replacement Market 60% 40%
Market Dynmics

40% 60%

Replacement Market OEM Market

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Share of User Segment:

Automobile:
India is the: Largest Three Wheeler Market in the World 2nd Largest Two Wheeler Market in the World 4th Largest Passenger Vehicle Market in Asia 4th Largest Tractor Market in the World 5th Largest Commercial Vehicle Market in the World

Indian Auto Industry

Two Wheelers 15% 4% 5% Passenger Cars Commercial Vehicles Three Wheelers

76%

Engineering: The engineering segment mainly comprises of capital goods

and heavy engineering industry. The demand growth from OEM segment here mainly depends on the growth of industrial and infrastructure related activities. increasing demand for industrial products has boost demand for engineering goods.

Electrical equipments: Includes manufacturers of fans, compressors,

motors etc. This segment mainly consumes smaller bearings. Both small and large players manufacture these products.

Railways: Railways is quite a big consumer of bearings in India. It uses

bearings in locomotives, wagons, coaches etc. It requires Roller Bearing in Axle Box, Spherical Roller Bearing, Cartridge Tapered Roller Bearing etc.

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Sector Automobile General Engineering Heavy industries including railways Electrical equipment & others

% Share 45 28 21 6

Share of User Segment Automobile

21%

6% 45%

Gen. Engg.

28%

Heavy indus including railways Elec. Equip.

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Opportunities for the Bearing Industry:

1) India is now amongst one of the most preferred destinations for exporting hub for most of the major global OEM players. Following is just an extract of list of companies already outsourcing from the country. Hyundai Export base for small cars Ford exporting CKDs of Ikon to South Africa and other countries Tata Indica being sold in UK under the Rover brand 20,000 pa Skoda Hub for exports of cars to neighboring countries General Motors Global Purchasing Team Volvo Global buying team Delphi International purchase office Renault scouting for truck part suppliers Toyota is investing Rs 380 crore in a plant to make manual transmissions. It will supply manual transmission gearboxes to its worldwide markets, production capacity 160,000 units annually. Maruti is putting up an Rs 350 crore diesel engine plant. Maruti plans to start making its own common rail direct injection diesel (CRDi) engines (using Fiat technology) from its new plant in Haryana in 2006. Fiat's India operation is working towards becoming a global sourcing hub for components. It exported components worth E7 million last year to its operations in South Africa

2) Passenger cars estimated to touch two million in 2010 and three million in 2015. 3) Higher GDP growth. 4) Indias huge geographic spread Mass Transport System 5) Increasing Road Development. E.g. Golden Quadrilateral project, Pradhan Mantri Gram Sadak Yojna. 6) Replacement of aging four wheelers. 7) Graduating from Two-wheeler to four-wheeler. 8) Increasing dispensable income of rural agricultural sector (more tractors) 9) Growing Concept of Second Vehicle in Urban Areas. 10) Reduction in excise duty to zero, in the tractor segment.

16

11) Bearings are used in more than 50 % of the auto compo

Threats to the Bearing Industry:

Import Threat:
The custom duty on imported bearings including excise is 36% (aprox.) expected to come down further in line with WTO agreements. Reduction in import duty is likely to attract more imports in the future. The imported bearings are targeted mainly at the replacement market. Imports are widespread in the case of ball bearings. Coupled with inflow of spurious products the organized sector is also facing threat from smuggling of goods. Major imports of ball bearing are from Japan, China, Russia and Romania.

Spurious Products:
Spurious products form a significant part of the Indian bearing market. Spurious products mainly cater to the replacement market, which is price sensitive. Spurious bearings are of poor quality and are relatively unsafe and unreliable. They use material, which are of inferior quality and the workmanship is also poor. The presence of unorganized sector in the bearing Industry poses a real threat to the organised players.

Increase in Raw Material Prices:

Steel and alloy steel forms the basic material for the manufacturing of bearings, account for almost 45% of total net sales. Steel prices therefore has significant impact on margins. The significant increase in steel prices have resulted in pricing and margin pressure on bearing manufacturers. Companies expect that the steel prices will show an upward trend or atleast remain firm in the coming future.

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Company Profile
The renowned industrialist, late Shri B.M. Birla, under the name of National Bearing Company Limited, founded NATIONAL ENGINEERING INDUSTRIES LTD., JAIPUR in the year 1946 as a pioneer industry in the field of bearing manufacturing.

The first bearing was manufactured in 1950 with a modest start of 30,000 bearings in 19 sizes. The company is now manufacturing nearly 3.8 million bearings per month in over 500 different sizes ranging from 6 mm bore to 1300 mm outer diameter and has the capacity to manufacture bearings up to 2000 mm outer diameter. At NEI, the development of bearings is a neverending job. With ever increasing activities and grant of industrial licenses for other vital industries and manufacturing of Roller Bearing Axle Boxes for Railway Rolling Stock, Steel Balls, Tapered Roller Bearings, Spindle Inserts etc., the name of the company was changed in 1958 to "National Engineering Industries Ltd." retaining its original trade mark NBC. The industry is spread over 118 acres of land in Jaipur and 56 acres in Gunsi (Newai). This is the only unit in the country manufacturing wide variety and range of bearings such as Ball Bearings, Steel Balls, Tapered Roller Bearings, Cylindrical Roller Bearings & Axle Boxes for Railway Rolling Stock including Spherical Roller Bearings, Cartridge Tapered Roller Bearings and Large Diameter special Bearings in separate fully equipped factories. The development of National Engineering Industries Ltd. was pioneered with a theme "Indigenisation and Self-reliance". NBC Bearings are widely used by 2 and 3 Wheelers, Cars, Trucks, Tractors, Electric Motors, Railway wagon, Coach & Locomotive manufacturers as Original Equipment. It is also popular among Steel Mills, Heavy Engineering Plants, Bulldozers, Shovels, Tillers and Thermal Power Plants all across the country and abroad.

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VISION:
We will be the best market driven Anti-friction Bearing Company providing innovative products & services to achieve satisfaction of customer & other stake holders by using world class technology, management practices and through employee commitment. We will diversify in allied precision engineering products & special purpose machines.

MISSION:
It is the business of precision Rolling Bearings and seeking opportunities for new business consistent with its vision to: Provide products & services of world-class quality. Meet customer requirement. Increase shareholders value. Develop mutually beneficial supply relationship. Create opportunities for the employees to achieve their reasonable aspiration.

VALUES:
INTEGRITY. COURTESY AND HUMILITY. COMMUNICATION AND OPENNESS. HARMONY AND COOPERATION. FAIRNESS. ADJUSTMENT AND ASSIMILATION.

19

 CUSTOMER FOCUS. MILE STONES:

YEA R
1946 1950 1952 1957 1967 1971 1975 1976 1981 1984 1985 1990-95 1995 1996 1997 1998

ACHIEVEMENTS
Company established as National Bearing Corporation (NBC) under technical collaboration with Hoffmann,U.K. Ball Bearing production started. Railway Bearing production started. Company name changed to National engineering Industries Ltd. (retaining NBC as trade mark). Tapered Roller Bearing production started under technical collaboration with Federal Mugul Corporation, USA. Established Research & Development division & Machine Build Division. Large Diameter Special Bearing production started . Steel roller Bearing with technical know how from FAG-SRO. Separate factory for Ball Bearings at Gunsi (Newai). Cartridge Taper Roller Bearing production started in technical collaboration with Brenco Incorporated, USA. Largest bearing with O/D 1.3 mts & weight 4.39 tons produced. Modernization in 3 phases. ISO-9001 Certificate. Technical collaboration with Izumi Kinzoku Kogyo Company Limited, Japan for machine retrofitting / remanufacturing & overhauling Technical collaboration with NTN corporation of Japan for Taper Roller Bearing & Hub Bearing. 4th phase of modernization started.

20

1999 2003 2005

Implementation of 1st phase of SAP-ERP solution. TS-16949 certification. AAR certification M-1003 for CTRB.

THE NEI EDGE:

NEI is powered by a strong faith in its own capabilities. This explains its success in building up an improved infrastructure of technical strength for designing and consulting engineering machines, even designing new mean and methods for upgrading. NEI provides a friendly environment to work together as a team with mutual understanding, responsibility, trust, respects and dignity. NEI always attempts to explore new ideas and adopt the latest technology in world to come up with very best for customers. The company has been awarded ISO-14001; ISO-9001 & ISO-TS 16949 certificate The Mark of Excellence in Quality Management System by BVQI of U.K. in 1995. The bearings of NBC are widely used as O.E. by automobiles, steel mills, thermal power plant, railways etc. NEI has acquired knowledge-based management to leverage resources to gain a competitive edge in the market place by turning intellectual assets into value through innovation

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TECHNICAL COLLABORATIONS:
NBC has technical collaboration with leading bearing companies of the world. They are1) NTN Corporation, Japan: One of the world leaders in the field of bearing & precision technologydesigning, manufacturing, supplying bearing. With manufacturing facilities & state of the art warehousing facilities all over the world. NTN a technical partner (collaborator) of NEI for manufacturing Deep Groove Ball Bearings & Taper Roller Bearings. http://www.ntn.co.jp 2) BRENCO Incorporated, U.S.A.: BRENCO Incorporated, U.S.A is world no.1 in Cartridge/ Railroad bearing technology with 65% market share. BRENCO & NEI established technical collaboration or licensining agreement for the manufacturing of 6x11 class-E Cartridge Taper Roller Bearing for the Indian Railways since 1979. This equates to over 1.2 million bearings in the last 26 yrs. BRENCO/NEI has established an 80% market share in India. NEI has started exporting 6x11 class E- CRTBs to BRENCO for use in American Railroads. The expectations sales due to export in 2005-06 is 30000 No.s. (TRBs).By the year 2008-09 the expected sale including 6^1/2 x 12 class-F CTRBs is 108000 Nos. www.brencoqbs.com.

3) Izumi Kinzoku Kogyo Co. Ltd., Japan: Since 1996 - For re-manufacturing, retrofitting and overhauling of grinding and super finishing machines for bearing races. http://www7.ocn.ne.jp/~izk.co.
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VALUED CUSTOMERS:
Two & three Wheelers:

BAJAJ AUTO Ltd. HERO HONDA MOTORS LTD. HONDA MOTORCYCLE &SCOOTER INDIA LTD YAMAHA MOTORS INDIA LIMITED KINETIC ENGINEERING ENFIELD INDIA TVS MOTOR INDIA (P) LTD MAJESTIC AUTO LIMITED FORCE MOTORS SCOOTERS INDIA LIMITED MAHINDRA & MAHINDRA

23

ATUL AUTO LTD

Passenger Cars/MUVs/SUVs

MARUTI UDYOG LIMITED

HINDUSTAN MOTORS TATA MOTORS LTD.

MAHINDRA & MAHINDRA FORCE MOTORS

Tractors:

MAHINDRA & MAHINDRA

EICHER MOTORS ESCORTS PUNJAB TRACTORS TAFE NEW HOLLAND VST TILLERS HMT TRACTORS
24

LCV &HCV:
TATA Motors Ltd.

Ashok Leyland Eicher Motors Force Motors Hindustan Motors

Mahindra & Mahindra Ltd

Indian Railways:
Production Unit For locomotive & Passenger Coaches:
Chittranjan Locomotive Works
Diesel Locomotive Modernization Works

Diesel Locomotive Works Integral Coach Factory

Rail Coach Factory

All Zonal Railways: Wagon Builders:

Bharat Wagon & Engineering Co. Ltd. Braithwaite Ltd.

Bridge & Roof Ltd. Hindustan Engineering & Industries Ltd. Modern Industries Titagarh Wagons Ltd.

Burn Std. Company Ltd. Jessop & Company Ltd. Texmaco Ltd.

25

AGRI :
KIRLOSKAR BROTHERS BIRLA POWER SOLUTIONS BHARAT BIJLEE LTD. CROMPTON GREAVES LTD.

INDUSTRIES:
AUTO ANCILLARIES:
SHIVAM INDUSTRIES (OEM FOR CROMPTON GREAVES). GODREJ & BOYCE MANUFACTURING CO. GREAVES COTTON LTD JINDAL ELECTRIC & MAGNETIC TEXTILES: SUNDARAM FASTENERS LIMITED GUJARAT CASTINGS SANTHI GEARS LIMITED

Asian Mill Pvt. Ltd Indian Rayon & Industry Ltd. Oswal Wollen Mills Ltd. Sri Ramco Spinners Banswara Textiles Rana Polycot
VSM Weaves India LTD

Arvind Mills Ltd. JCT Ltd. Polyspin Export Ltd. Rajasthan Textiles Mill Welspun Winsome Textiles

Sugar Industry:
Thiru Arooran Sugars. DSM Sugars. Sree Ambika Sugars.

Cement & Steel:

Birla Corporation Ltd. Ridhi Sidhi L&T Ltd.
26

JCT Steel Bhushan Ltd. Shree Cement Ltd.

Tamilnadu Cement Ltd

Chemicals:
TATA Chemicals Coromandes Fertilizers Ltd. Asian Paints Ltd. Isrochemicals Cadilla Pharmaceuticals Ltd. Pesticides India Wockhardt Nirma Cadilla Health Care Gujrat Organic

Large Diameter:
Chattisgarh State Electricity Board Indraprasth Power Generation Company Ltd. Maharashtra State Electricity Board Madhya Pradesh Power Generation Company Ltd. National Thermal Power Corporation Punjab State Electricity Board Rajasthan rajya Vidyut Utpadan Nigam Ltd. Tamil Nadu State Electricity Board Ltd. TATAPower, Mumbai Uttar Pradesh Vidyut Utpadan Nigam Ltd.

Steel Plants:
SAIL, Bokaro Steel Plant, Bokaro SAIL, Rourkela Steel Plant, Rourkela SAIL, Durgapur Steel Plant, Durgapur SAIL, Bhilai Plant, Bhilai Rolling Mills

Others:
Hindustan Zinc Ltd. Tuticorin Thermal Power Pepsi Ankleshwar Birla tyres The Mysore Paper Mills Ltd. Birla NGK Rainbow Papers Shivam Industry G.S. Auto Surya Roshni North Chennai Thermal Power Eveready Industry Ltd. Aman Machine Tools Orient Paper Mill
International Combustion (I) Ltd.

NTPC Hind Glass Industry CEAT Sukhjit Starch

FILATEX INDIA LTD.

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QUALITY POLICY:
NEI is committed to design, develop, manufacture & supply products to Customers as per their requirement & strive to provide customer delight through value added products, continual improvement & employee involvement. NEI believes in the maxim Customer is always right. With this in mind NEI designs, manufactures and deliver products to provide customer satisfaction through continuous improvement. To achieve this management abides to Provide education and training in planned manner to the employees and seek their involvement Maintain international quality management system as per ISO-9001 and adopt QS-9000 system. To implement the above said policy, NEI has set the following Objectives: 1) Fulfill commitment to customers Quality as per customer requirements Delivery as per commitment 2) Education and training.

28

3) Develop, motivate and involve employee for continuous through Task forces Quality circles Suggestion scheme 5 s programme For implementing the practices of well-known Japanese management technique of 5 s, the company has taken several steps. 5 s consists of the followinga) S seiri (straighten up) Differentiate b/w the necessary & the unnecessary and discard the unnecessary. Work in process Unnecessary tools Unused machinery Defective products Papers & documents b) S seiton (put things in order) Things must be kept in order so that they are ready for use when needed. There should be place for everything and everything should be in its place. c) S sieso (clean up) Keep the work place clean. d) S seiketsu (personal cleanliness) Make it a habit to be clean & tidy. e) S: shitsuke (discipline) 4) Develop new products. 5) Maintain and improve quality system as per ISO-9001 for continued suitability and adopt QS-9000 system.

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ENVIRONMENTAL POLICY:
NEI believes that a clean and balanced environment is a prime responsibility of the company during manufacturing process of different types of bearings, its components and related activities or services. Keeping the above in view NEI is committed to: Prevention of pollution. Work closely with government and local authorities and comply with all applicable laws governing environmental protection through appropriate mechanism. Improve environmental performance through continual improvement. Adopt international environmental management systems as per ISO-14001. Further the management promotes Conservation of natural resources. Minimization of waste generation, its recovery, recycle, reuse quick disposal. Necessary training programmes to enhance environmental awareness amongst employees.

NEI is having two plants one at JAIPUR and other at GUNSI (Newai) in Rajasthan (INDIA).

PLANT AT JAIPUR:
Plant at Jaipur manufactures the following bearings

(i) Ball Bearing:

Precision Ball Bearings from 6 mm bore to 75 mm bore diameter are manufactured on state of the art manufacturing facilities with in process and post-process gauging in grinding in centrally air conditioned assembly lines with auto gauging and testing equipments. The latest advanced techniques for manufacturing and Quality Assurance are implemented to meet the rapid
30

increase in demand for Quality, diversity of specifications and new types of bearing.

(ii). Steel Balls:

Precision Steel Balls up to 25 mm diameters for NBC Bearings are manufactured on precision grinding and lapping machines to achieve super finished surface, accuracy and roundness as per ISO standards. This Division is spread over a covered area of 4,700 Sq. Meters. (iii). Tapered Roller Bearing: Precision Tapered Roller Bearings are manufactured in Inch and Metric series from 15.875mm bore to 95.25mm bore with technology obtained from our earlier collaborator, Federal Mogul Corporation, USA and now with NTN Corporation, Japan. These bearings are used by all major Automobile manufacturers in the country as Original Equipment. This Division is spread over a covered area of 11,652 Sq.

(iv). Railway Bearing:

Roller Bearing in Axle Box:
With the production of Roller Bearings and Axle Boxes since 1952, the company has fully met the requirements of the Indian Railways (one of the largest systems of the world) by designing and developing Axle Boxes and bearings for fitment to Locomotives manufactured by Diesel Locomotive Works, Chittaranjan Locomotive Works, various wagon builders, the ICF broad and meter gauge coaches. Over a million NBC bearings and boxes are in service with the Indian Railways. The development of completely indigenised Axle Boxes and bearings for the
31

high speed Rajdhani Locomotive, the Yugoslavian and Egyptian Railway wagons are the highlights of the design capabilities at NEI. (b) Spherical Roller Bearing: The manufacturing of Spherical Roller Bearings was started in the year 1975-76 for fitment to broad gauge and meter gauge passenger coaches with designs, technology, machines and equipment procured from the Collaborators. (c) Cartridge Tapered Roller Bearing: For fitment to the new BOX-IN Up rated Wagons designed by the RDSO, NEI is the only manufacturer in the country to indigenise these bearings to a high percentage under collaboration with the largest manufacturer of these bearings in the world. Production of these bearings commenced in the year 1984. These bearings are Grease packed and require no field lubrication for a period of 7 Years. This Division is spread over a covered area of 4,855 Sq.meters

(v). Large Diameter Bearing:

Self-sufficiency in steel is the call of the day, so is the importance of bearings in Steel Mills Equipment. NEI has the distinction of being one of the ten manufacturers of these bearings in the world, who can manufacture large diameter bearings up to 2000 mm diameter Mr. G.P. Birla released the largest bearing manufactured by NEI for fitment to the Plate Mill of Rourkela Steel Plant in September 1985. This 4-Row Tapered Roller Bearing measures 1300 mm dia and weigh 4.39 tons. The large diameter bearings are mainly manufactured out of case carburising steel, heat treated on special equipment and furnaces developed by NEI. Precision grinding is done to close tolerances on CNC Twin Spindle Programmable Berthiez Machine for bearings ranging from 500 to 2000 mm diameter with electronic sizing and numerical display

32

Production of these bearings started in 1975 and to date over 100 different types of special large diameter bearings have been manufactured and successfully used, saving considerable foreign exchange for the country The Large Diameter Bearings Division is spread over a covered area of 2,508 Sq. Meters.

PLANT AT GUNSI (NEWAI):

Established in the year 1980-81 as an expansion project of NEI Ltd. The factory is equipped with fully automated grinding lines with electronic in-process & post-process gauging and centrally air-conditioned assembly lines with auto gauging and test equipments for quality and reliability of the products. The plant is spread over a covered area of 7,200 Sq. Meters.

RESEARCH & DEVELOPMENT AT JAIPUR:

Design & Development:

Complete in-house facility for design development of all types of bearings and tooling is available. The design of all types of bearings is done on ProEngineer 3D Modeling & Analysis Software. Complete engineering and research facility is available to solve intricate Problems with expert advice on design, development, manufacturing, installation and maintenance of bearings. With the signing of the technical collaboration agreement with NTN Corporation, Japan & BRENCO Inc of USA, the capability to offer finest engineering services in the bearing industry has enhanced. Services of team of experienced engineers are available for selection of bearing as per application.

Machine Building:
33

NEI has the capability of machine building to design, develop and manufacture special purpose CNC Grinding Lines, HT Lines, Material Handling Equipments and other special purpose machines which have been made for its captive use to keep pace with latest technology. R&D Division is spread over a covered area of 2,007 Sq. Meters.

SAP - ERP:
In order to reengineer and integrate the Business processes for sales, production, materials and finance, NEI has successfully implemented SAPERP. By use of this Package, our processes now conform to international standard.

QUALITY CERTIFICATIONS:
ISO / TS 16949:2002

NEI extensively embarked upon system improvement and implemented

modern concepts of Total Quality Management. NEI has been awarded TS 16949: 2002 on 17th October, 2003- THE MARK OF EXCELLENCE IN QUALITY MANAGEMENT SYSTEMS by BVQI for design, development, manufacture & supply of Ball Bearing, Tapered Roller Bearing and Cylindrical Roller Bearings. NEI Ltd. is the first bearing company in India to have been recommended for TS 16949: 2002. This certificate is awarded to only suppliers of automobile manufacturers.

TS 16949: 2002 quality management system is based on ISO 9001: 2000

in which many supplementary and additional requirements of automobile industries have been incorporated. TS quality management system in NEI starts with identification of all customer requirements and ends with ensuring that all customer requirements have been fulfilled. This also requires continuous improvement in all areas. Every process is critically studied and performance indicators for measuring output of those processes defined. Measurement of efficiency and effectiveness of every process only decides how ably the process has been performed. Simplicity, effectiveness & efficiency of processes, error

34

proofing and continuous improvement in processes thus become the highlight of TS quality management system.

ISO 9001:2000
NEIs large dia bearing division and railway bearing division are manufacturing Cylindrical Roller Bearings, spherical roller bearings, cartridge tapered roller bearings, railway rolling stock and spares has also been awarded to ISO 9001: 2000 on 9th October, 2003 by BVQI.

ISO 14001:1996
NEIs everlasting concern for cleaner, pollution free environment has made the NEI to go on the path of Environmental management System. NEI was awarded ISO -14001 certificate by BVQI in the month of March 2000 for Environmental Management System. NEI has done tremendous efforts in resource conservation, recycling and thick plantation. The efforts at NEI have saved precious natural resources like water, oil and power etc.

AAR M 1003
NEI has been awarded AAR Certification M 1003 By Association of American Railroads (AAR) for Cartridge Taper Roller Bearings in Feb 2005

35

Marketing Network

36

NEI has extensive marketing network covering all the Metros and the North, West, East & South automotive clusters.

A mind mapping of NBC bearings.

Over 4000 No 1 bearing supplier to Indian railways

Crores

500
differen t sizes

56 yrs old Brand

C.K. Birla Group

Governmen t Supply
3.8 million bearings per month All major automaker s are clients.

SAP /ER P
20 mm to 1300 mm up to\ 200 mm capacity

OE M

Replacemen t

Roller Bearing s
37

Ball Bearing s

Export to Europe & South East Asian countries.

Keeping the nation on the Move.

Organizational Departments
National Engineering Industries Ltd.

Production
ERP
EDP

Marketing

Finance

Personnel

QA

TPM

R&D

Maintenance Mechanical

Accounts

Budget

TQM

SQC

IR & Welfa re HRD Safety & Hygiene

Security

38

OEM

Replacement Market

Railways

Export

Organizational Structure

President

Sr.VP FIN.

Sr. VP MFG

DGM, QM

VP. Mktg (BB/TRB)

Dy. GM Mktg (RB/LDB)

AVP, R&D

AVP. Pers.

DM 39

GM GM DGM DM DM

DM

AGM

Manager,QA Sr. Manager

DDM

DDM

VP DGM QM MKTG AVP R&D PERS. GM DM DDM

VICE PRESIDENT Manager DIVISIONAL GENERAL Mktg MANAGER QUALITATIVE MANAGEMENT MARKETING ASSISTANT CICE PRESIDENT RESEARCH & DEVELOPMENT PERSONNEL GENERAL MANAGER DIVISIONAL MANAGER DEPUTY DIVISIONAL MANAGER

Manager (RB)

Sr. Manager (LDB)

Swot Analysis:
Strength:
Belong to big industrial house, a Birla enterprise Has collaboration with NTN Japan & BRENCO U.S.A. Strong R&D department. Sound HR practices and vast pool of knowledge workers. Leading suppliers to Railways. The company has fully met the requirements of the Indian Railways (one of the largest systems of the world) by designing and developing Axle Boxes and bearings for fitment to Locomotives Leading manufacturer of Taper roller Bearing. Japanese Technology. Accreditation to ISO 9001 ,ISO14001 & ISO TS-16949 by BVQI. Unparalleled range from 20 mm to 2000 mm diameter bearing, that serves the core sector of transport , thermal power, steel , heavy

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industries and many more. SAP-ERP implementation. Participation of employees through suggestion schemes, quality circle, committees etc. Automation at Taper Bearing assembly. Distributors across the nation. Oldest bearing manufacturer in India. Infrastructure: 118 acres in Jaipur 56 acres in Newai Sound marketing system and management. TQM Reliable brand in India. 60 yrs old enterprise.

Weakness:
Advertising lacks punch not enticing for the end consumer. Low Exports. Internationally low brand image. Focusing on stockiest & business buyer rather than end consumers. NTN is in indirect collaboration and also markets its own bearings with its own brand name. Not present in every category. E.g. Needle roller bearings.

Competitors
Major Competitors: 1. 2. 3. 4. 5. 6. SKF FAG NRB TATA TIMKEN ABC

These are the major competitors of NEI. They have their own strength and weakness. SKF is the biggest competitor among these.
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Objective of the study:

To

identify the new product for development through market research activity

According to Rajan SaxenaA new product is any product which is perceived by the customer as being new. This could involve repositioning of existing product or offering the existing products at low prices, or making improvements in the existing products, or adding new product items

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to the existing product line, or for the matter, taking up a product line which is totally new to the organizations or new to the world.
Research Methodology:The methodology adopted for this research was a survey of Distributors, Spare part Dealers, Mechanics, and workshops of various companies. These people were asked various questions regarding bearings used in various vehicles and latest models (existing in Indian market). The survey was done for two wheelers, three wheelers, four wheelers, MUVs, LCVs, HCVs. As the objective of the survey was to find out the bearing numbers Which are used at different applications in vehicle. Information was collected in following way.

Personal meeting
By asking Questions from Distributors bearings used at different applications in vehicles. By asking Questions from Spare part dealers bearings used at different applications in vehicles. By asking Questions from Workshops of various companies bearings used at different applications in vehicles. By asking Questions from mechanics bearings used at different applications in vehicles. The sample chosen for research included workshop owners /mechanics working in and around Jaipur. Total number of Workshops & Distributors/ stockiest took part in this survey were 30. The primary source of data collection has been the various Workshops /Mechanics in Jaipur. For a better response, the Distributors/stockiest were surveyed so as to have comprehensive results and the observations made, may be helpful to NEI to take necessary steps at every level of the Value chain. The secondary data was collected from various companies catalogs, which manufacture the bearings in India. Secondary data were helpful, when survey was done.

Samples for survey:

Workshops for Cars /Muvs /Suvs.

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Workshops for Two wheelers. Workshops for Three wheelers. Mechanics Distributors of various bearings Brands. Spare part dealers also dealing in Bearings. Workshops of various companies.

Scope of the study:

The worksheet was administered to the Workshops/Mechanics & Distributors/Stockiest present in Jaipur area. So the received responses are a picture of market scenario of Jaipur only and the results should not be considered to be representative of the scenario of the whole bearings industry throughout India or any location other than Jaipur. Whatever conclusion may come out from the survey, the user of the information should keep this fact in mind that this is only representative of the scenario of Jaipurs bearing market and the information so obtained should not be applied elsewhere without proper survey of that particular area.

Data Analysis
The data so collected from various companies was analyzed using the MS Excel software provided under the Microsoft office. The data is analyzed under the various heads so as to get a broad picture of bearings in the Jaipur bearing market.

Recommendations
1)

NBC

should

increase the range of bearings. NBC

manufactured term market.

over 500 types of bearing but it is not enough for existing in long

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2)
3) NBC

NBC is the no. 1 supplier to the Indian railway, so it will be

best for NBC to become no. 1 in other sectors like automobile and industry also.

is the strong brand in the market so it should keep its popularity

by keeping competitive prices with best quality. 4) NBC should keep on increasing the range of bearings as the models launched in the market and before launching the models. 5) Duplicate bearings are being sold in the market with same packaging and same printing of NBC. These bearings looks like 100%NBC bearing, but these bearings have poor quality as compare to real NBC. These bearings are spoiling the name of NBC. Because of these bearings manufacturers and retailers NBC is getting loss and his image in the market. While purchasing bearings consumers think they will be using best quality bearing(NBC), but these bearings does not work as NBC bearing does and they get fail very soon. So again consumer does not purchase NBC. So it is required to take steps against these manufacturers and whoever sold these bearings. For keeping best image and getting more profit. 6) NBC does not have good image and complete range for Tata trucks. So these bearing should be manufactured for getting profit and competition to SKF and Timken. 7) As well as NBC does not have range for latest cars which are being launched day by day in the market, so there is also required to manufacture requires bearings for organization growth. 8) It was seen when survey was being done, that NBC does not give good schemes like coupons, any other prices to mechanics so they dont like to purchase only NBC. They like to purchase the bearing with good quality at

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reasonable price and which gives them coupons and other things. So NBC should make some schemes to keep mechanics happy. 9) It was seen that advertisements of NBC are not adequate, so there should be aggressive advertisements. 10) There is required to meet continuously with mechanics in their own garage or their workshops.
11) List of new sizes to be developed is made and is being retained to organization, as list is confidential.

Conclusion
The topic assigned to me To identify the new product for development

through research activity required a great deal of field study. The market
survey forms an essential part of the project work. The conclusions were drawn on the basis of the information gathered during the training.
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NBC is already manufacturing over 500 types of bearings it is good for the company ,but there is required to increasing the range of bearings. There is good market for bearings which are not being manufactured by NBC. (Specially in Cars)

Better is not enough when best is expected

To remain a strong Brand in the marketplace company has to be a bit aggressive in advertising and promotions and to keep its distributors updated about the new developments in the company.

Bibliography
Various companies catalogues:SKF TIMKEN ABC NBC NRB TURBO MINR TEXSPIN www.siam.com
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www.tma.com Siam(Data from society of automobile association) Tma (Data from tractor manufacturing association)

KEEPING THE NATION ON THE MOVE

Manufactured by National Engineering Industries Ltd., Jaipur Est. 1946

(A C. K. BIRLA GROUP CO.) So send us a mail at neiexport@neibearing.com and we will remove friction from your dreams.

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