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MARKET RESEARCH AND MARKET AWARENESS PROGRAM ON RAILS, PARALLEL FLANGE BEAMS AND COLUMNS OF
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) GURU JAMBHESHWAR UNIIVERSITY, HISAR
TRAINING SUPERVISOR MR. AMIT GUPTA MARKETING SALES MANAGER JSPL CORPORATE OFFICE
SESSION: 2005-08
ACKNOWLEDGEMENT
The present work is an effort to throw some light on Market Research and Market Awareness Program On Rails, Parallel Flange Beams and Columns of JINDAL STEEL & POWER LTD. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Mr. Amit Gupta, Project Manager (JSPL corporate office). I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.
KARAN NAGPAL
EXECUTIVE SUMMARY
The mission of present day Marketing is not telling or selling but satisfying customer needs and delight. The competition has increased tremendously and customer is offered with so many substitutes. The job of the marketer has become tough if they have to grow and survive in future. The new world is based on Digital Revolution and Management of information. Information has no. of attributes. It can be infinitely differentiated, customized, and personalized. Philip kotler quoted on marketingThe future is not ahead of us. It has already happened. Unfortunately it is unequally distributed among companies, Industries, and nations. The project report is humble attempt to explain role of Traders, Builders, Architects, and Designers in promoting Iron and Steel companies. Various measures have been suggesting to enrich marketing strategy and hypothesis has been tested.
TABLE OF CONTENTS
I. II.
Sample design
III. IV.
COMPANY PROFILE About the company Market Presence Range of products and services SWOT Analysis
DATA ANALYSIS AND INTERPRETATION FINDINGS / OBSERVATIONS CONCLUSIONS RECOMMENDATIONS ANNEXURES BIBLIOGRAPHY / REFERENCES
V.
VI. VII. VIII. IX.
INTROD UCTION
INTRODUCTION
OBJECTIVE
To have modern and efficient steel industry of world standards, catering to diversified steel demand. To achieve global competitiveness in cost, quality, product-mix, efficiency and productivity To attain Finished Steel production of 110 mTpa by 2019-20 Production 2019-20 CAGR (Base 0405) 110 7.3% Imports 6 7.1% Exports 26 13.3% Consumption 90 6.9%
STRATEGY
Demand Side Strengthening of delivery chain Interface between producers, designers of steel intensive products, Creating awareness about cost-effective and technically efficient end-
Supply side
Enhanced and easy access to critical inputs iron ore & coking coal Expansion and improvement in quality of infrastructure Well developed financial market Increased focus on R&D, training of manpower and integrated information services
-Planned Investments of US$ 7.7 bn. - Includes only growth in existing Units
OPPORTUNITIES
High economic growth driven increasingly by industry Faster Urbanisation Increased Fixed Asset Building Automobiles and component industry growth
POLICY
Pro-active stance of Govt. Encouragement for overseas investments
8th largest steel producer in the world Production of Finished steel in 2005-06, 42.7 MT, a growth of 11%. Apparent Consumption of Finished Steel in 2005-06 - 38.1mT, growth of Largest producer of Sponge Iron - 12.8 MT in 2005-06 (a growth of 25%). Indias exports of Finished Steel in 2005-06, 4.4 MT, Imports 3.7 MT Huge Iron Ore reserves 23 bn. tonnes Private Steel Producers are opting for Forward as well as Backward Indian Steel Producers are increasingly looking for overseas acquisitions in
Integration steel as well as raw materials. Iron and Steel industry is a core sector of Indian economy. It is the basic input and raw material for hundreds of industries and forms the basis for producing machines and spare parts. Steel is being used in Industrial Buildings, Multi-storey Buildings, Road bridge composite construction, Utility buildings and car parks, Technological structures, and Railways. The Iron and Steel sector has experienced challenges in the last 3 years. India is the eight largest steel producers in the world. Also, reconstruction activities in Afghanistan and Iraq are likely to impact the steel prices and the growth in domestic market in construction; infrastructure and automobiles are showing signs of pick ups. The project is important as Marketing is an extensive term comprising many specialized branches such as sales and advertising. Different companies adopt different style of marketing. To understand those it needs to be studied first is what marketing style is.
After completing the preparation a marketing style needs to be designed. The points that need to be taken into consideration before laying out one differ according to the company and the product. How marketing should be developed needs to be understood keeping into mind following points. The Targeted Market Unique Selling Proposition The Brand Image The Market Share The Competitors Strategies Product differentiation The companys philosophy and vision
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
OBJECTIVE OF STUDY
To bridge the gap between Traders & company by putting light on various aspects. To bring an awareness to Contractors, Builders, Promoters, Investors & Architects regarding H-Flanges beams & columns. Scanning and Understanding the marketing strategies. of the competitors. Finding the Unique Selling Proposition and image of JSPL H-Flanges Beams and Column. The research & analysis will give information of the market & recommendation & suggestion will lead to developing new strategy to capture the market.
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ALTERNATIVE HYPOTHESIS
Quality means Sale for Traders
NATURE OF STUDY
The research for this project is exploratory in nature. The aim is focused on getting the actual happenings inside the market. The study would be characterized by high degree of flexibility and hence would rely on Secondary Data and Small Scale Survey.
The Data is collected from primary and secondary sources mainly from internet and personal dialogue with officers of the SAIL.
Primary Data
Personal meetings with respondents and administers Findings and suggestions are from the observations
Secondary Data
Internet, and sail websites Company literature National Journals, newspaper
Refereed Books
Research Design
The success of any study lies in its methodology. One has to present a clear idea of the research procedure used in the study since the value of any systematic research lies in its methodology.
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Methodology is the science of methods; it is indispensable because of its scientific pre-thought. It is an outcome of fact provided by the SAIL.
Sampling Process:
The basic idea of Sampling is that by selecting some of the elements in a population .We may draw conclusions about the entire population. A population element is the individual participants or object on which the measurement is taken. It is unit of the study. While an element may be a person, it can just easily be something else.
Sample Design
A study is inconsistent without right sample selection in terms of selection criteria, size, unit, and method of execution. A sample should be a subgroup of elements of the whole population selected for the participation of the study of else it will lead to sampling errors.
Methods of sampling
There are various methods of sampling like probability or non probability sample. If probability, is it simple random or complex random?
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PERSONAL INTERVIEW:
During the personal interview, the presence of the interviewer, permits flexibility on procedure further explanations or classifications can be requested to the interviewer if desired.
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Study suffers from various limitations that are natural to it. The information and the data provided by the respondents are based on their oral statements. Mentions may also be made to the limited time, single-handed effort in the field. The study is confined to the northern region of India on sampling basis. The study includes 7-8 traders of each Trade and almost all big Builders, Promoters and Architects in Delhi and NCR. As there was not much published literature available, therefore the study undertaken was exploratory in nature.
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Shri Om Prakash Jindal more popularly known as O.P. Jindal was born on August 7, 1930 to a farmer Late Netram Jindal of village Nalwa of district Hisar in Haryana. Since his childhood the young Jindal had interested in technical work. He started his industrial career with a small bucket-manufacturing unit in Hisar. In 1964, he commissioned a Pipe Unit Jindal India Limited, followed by a large factory in 1969 under the name Jindal Strips Limited. Sh. Jindal always had the conviction that India should be self-reliant in every sector of industry. He visited several foreign countries to elicit latest industrial technical development and know-how. He acquired a great deal of knowledge, which he aptly applied to enhance production of his industrial establishments. At present, there are twenty factories under the flagship of the Jindal Organization, which are worth over Rs.17,500 crores, under whose umbrella thousands of families directly or indirectly benefit themselves.
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Sh. O.P. Jindal was the Chairman of the Jindal Organization. In November 2006, Sh. Jindal was conferred the prestigious "Life Time Achievement Award" for his outstanding contribution to the Indian Steel Industry by the Bengal Chamber of Commerce & Industry. According to the latest Forbes' List, Sh. O.P. Jindal has been ranked 13th amongst the richest Indians of the country and placed 548th amongst the richest persons of the world. His life's mission was to help others particularly the common man in every possible way. The list of his philanthropic activities is rather long. He was the Chairman of N.C. Jindal Charitable Trust, under whose auspices a 300 Bed N.C. Jindal Institute of Medical Care functions in Hisar Haryana. A 10+2 Girls Residential School in the name of Vidya Devi Jindal School is also run at Hisar. The girls school spreads over 40 acres of land. Another 10+2 school by the name of N.C. Jindal Public School for 4000 students is being run in Delhi. For his selfless social services and philanthropic contributions, he was unanimously nominated as the Chairman of the Maharaja Agarsen Medical Education & Scientific Research Society. He was also the custodian trustee of the Agroha Vikas Trust. Sh. Jindal was known for his unassuming generosity and donates crores of rupees annually not only to known but also to needy strangers. Numerous social and religious institution of India also received liberal donations from Sh. Jindal for noble causes. He was a successful industry visionary and would remain as a role model for others. On account of his dedicated services to various sections of society particularly, of the poor and backward classes, he was revered by all. In the recent years, he was dedicating his maximum time for alleviating poverty of the economically backward people. Sh. Jindal always advocated for granting a rightful place for weaker sections in politics. He was above caste politics and wanted all to come up regardless of their caste, colour and creed. For these qualities he commanded great respect amongst the masses. He firmly held the view that all differences in life that exist today can be amicably resolved with meaningful meetings and dialogues. Sh. Jindal's philosophy was that without the upliftment of weaker and backward sections of society our nation's dream of being a leading nation of the world shall 19
remain unfulfilled. To realize his this conviction he was motivated into politics. Like industry even in politics he had a successful story to tell. He received tremendous support and cooperation of people in the political arena and resultantly became a Member of the Haryana Legislative Assembly in 1991. Soon after in 1996, he was elected as a Member of Parliament in the 11th Lok Sabha from the Kurukshetra Parliamentary Constituency of Haryana with a landslide victory. Infact, he was the first industrialist of India to be elected as a Member of Parliament in Lok Sabha. As a Member of Parliament, he proved himself as a matured, seasoned and an honest parliamentarian who came up to the expectation of people, who had consigned faith in him. He liberally funded various welfare projects not only from the Government but also from his personal resources. Sh. Jindal was a sitting Congress MLA from the Hisar Legislative Assembly and was appointed Minister of Power, Govt. of Haryana. Sh. Jindal won the Hisar Legislative Assembly seat of Haryana consecutively thrice. Sh. Jindal's mantra was where others saw walls he saw doors. Then whether it was opening doors or breaking down walls he always led the way. The life journey of Sh. Jindal from a farmer's son to a successful industrialist, a philanthropist, a politician and a leader would serve as a great source of inspiration for generations to come
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GROUP PROFILE
In the world of business, the Jindal Organization is a celebrity. Ranked sixth amongst the top Indian Business Houses in terms of assets, the Group today is a US $2 billion conglomerate. Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multibillion, multi-locational and multiproduct steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. New directions, new objectives... but the Jindal motto remains the same- "We are the Future of Steel ". The group has been technology-driven and has a broad product portfolio. Yet, the focus at Jindal has always been steel. From mining of iron-ore to the manufacturing of value added steel products, Jindal has a pre-eminent position in the flat steel segment in India and is on its way to be a major global player, with its overseas manufacturing facilities and strategic manufacturing and marketing alliances with other world leaders. Jindal Organization aims to be a global player. In pursuance of its objectives, it is committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service.
O P JINDAL GROUP
JINDAL
Sponge Iron Power Steel Slabs , Rounds & Blooms Ferro Alloys Steel Structure & Rails
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MARKET PRESENCE
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create and exchange that satisfy individual and organizational objective. The marketing concept requires that customer satisfaction rather than profit maximization is the goal of the organization. In other words, the organization should be consumer oriented and should try to understand consumers requirement and satisfy them quickly and efficiently, in way that are beneficial to both organization and the consumer. This means that any research organization should try to obtain information on consumer need and gather marketing intelligence to help and satisfy these needs efficiently. Marketing research is a critical part of such a marketing intelligence system, it helps to improve management decision making by providing relevant, accurate and timely information. Every decision poses unique needs for information and relevant strategies can be developed based on the information gathered through marketing research. One of the major tasks in researching a market is to estimate its a current decisions hang on these estimates whether the market demand upon in future to justify the market entry. Once a company enters a market segment in order to allocate it resources effectively. Thus we can see that demand estimate is essential in carrying out three important functions: Analysis of market opportunities Planning of marketing efforts Control of marketing performance
A market is a set of all actual and potential buyer of a product. The actual or, available market is a set of buyer who has interest and access to a particular market offer.
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If the organization is not satisfied with its current sales or has some expansion plans, it could try to attract a large percentage of people from its served market by promoting the product to available market. Untimely it could try to expend the potential market by launching the campaign to convert uninterested buyer into interested buyer.
BY PRODUCT: In the steel industries we heated the coke we get some gas and tar product such as Ammonia, Tar, Benzene etc. These products are unwanted but we cant leave them vain. Because they are profitable as well as harmful for the environment and industries. So we go through the certain process and made some valuable product. Example: - When we heat the coke we get ammonia gas, we mix it in the sulfuric acid and made ammonia sulphate that use as a fertilizer with brand name RAJA.
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COMPANY INTRODUCTION
Jindal Steel & Power Limited (JSPL), part of the US$ 1.8 billion Jindal Organization; redefines dynamism. JSPL, an ISO-9002 and 14001 certified company with its obsession for excellence, is increasing its portfolio of value added products, bringing the worlds best to India and making. an international mark. Production capabilities expanding to serve the infrastructure sector, catalyzing economic development and growth. JSPL has its integrated steel plant (as approved by Joint Plant Committee) at Raigarh in the state of Chhattisgarh, India. The facilities including worlds largest coal based Sponge Iron Plant (installed capacity 650000 tpa) with six rotary kilns. Captive iron and coal mines make it one of the lowest cost producers of sponge iron. Growth and expansion plans include an additional 720000 MTPA capacity sponge iron plant comprising of four rotary kilns. The new plant is scheduled for commissioning by next year end. JSPL also has 150 MW power generation facility based on Waste Heat Recovery from rotary kilns, washery rejects and coal fines, which is being expanded to almost 300 MW by next year.
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BOARD OF DIRECTORS
. : . .
Smt.Savitri Jindal Shri Naveen Jindal Shri Vikrant Gujral Shri Ratan Jindal Shri Amir Z. Singh Pasrich Shri Rajender Singh
Shri Subir Bisht (ICICI) Shri Anand Goel Shri Sushil K. Maroo Shri M. L. Gupta
Company secretary
Shri T. K. Sadhu
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CORPORATE OFFICE : Jindal Centre, 12 Bhikaiji Cama Place, New Delhi-10066 Ph: 011 26188340-50, 26188360-75 Fax:011-2161271 MUMBAI : Jindal Enclave, New Prabhadevi Marg, Off. Appa Saheb Marathe Road, Mumbal 400025 Ph: 022 24328000, 24368742 Fax: 022 24327700 KOLKATA : 41, Shakespeare Sarani, Room No.2, 3rd Floor Kolkata 700017 Ph: 033 22473616/22477398 Fax: 033 22476203 CHENNAI : 4C Century Plaza, 560-562, Anna Salai, Chennai 60018 Ph: 044 52132334/52132134 Fax 044 24329146/52132334 WORKS RAIGARH : Kharsai Road, Post Box No. 16, Raigarh 496001 (Chhattisgarh) Ph: 07762 227001-05 Fax 07762 227021-22, 227030 RAIPUR :13 K.M.Stone, G.ERoad, Trader Hasaud, Raipur 492001 (Chhattisgarh) Ph: 0771 2471205-07 Fax: 0771 2471214
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PRODUCT PROFILE
Every product has at least one USP, which can become its strongest point-and help the product sell more. The USP helps you position your brand distinctively. Another important component in fostering a marketing style is Value Addition and Hot rolled parallel flange beams and column are most sought after sections by structural engineers, architects and construction companies the world over. Advantages of using Parallel Flanges Beams and Column over ISMIB Greater choice of profilewith universal rolling method, there will be choice of large no. of beams and column with different weight in kg/in and statically properties in comparison to traditional I-beams on account of caliber rolling method. Facilitate bolted or welded construction there is no taper in Hbeam flange. Flow drill and Hollo-bolt helps to produce bolted joints with hollow sections. Ensured quality of material and constructionthe Parallel Flanges Beams have superiority in terms of strength, sectional efficiency, load bearing capacity, workability and economy in comparison to traditional beams.
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Reduced steel consumptionwith the adoption of new technology the JSPL beams are cost effective because of less weight. The co. is able to save 15-30% of steel.
Time-saving construction-pre-forined steel frames saves on construction time, they can be erected very fast and metal decking at floors ensures fast track, formwork-free construction.
Efficiency in construction-pre-fabricated and sleek steel reduces construction time which in turn reduces related costs including reduced interest during construction and quicker revenue generation.
Fire safety-everyone knows material weaken in fire, yet JSPL ignore this fact in design calculation. These are based on the strength of structural members at 20 degree C, and not on their reduced strength at elevated temperature of 600,800,1000 degree C or more.
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collaboration
agreement
Corporation, Japan for technology transfer to produce superior quality, worlds longest rails of 120m finished length, along with Parallel Flanges beams, column and Sheet piles for first time in the country. The agreement covers know-how transfer encompassing steel-making, secondary refining and continuous casting up to rolling and finishing of long, rails and universal beams; deputation of NKK multi-disciplinary specialists at the JSPL plant; and training of JSPL personal at NKK steel works in Japan. NKK is already supplying rails for high-speed bullet trains, Shinkansen in Japan. This technical collaboration shall enable production of long rails requiring far less joints in tracks, ushering a new era in rail travel safety and introduction of fast trains in India a reality. Railways, the backbone Indian economy covers 63,000 route kilometers. -It has the largest network in Asia and second largest in the world. Carrying 13 million passenger and over 1.3 million tones of freight daily, it is most important means of transport in the country. Efficient transportation system is essential for development of an industry, business and trade and brings synergy in the development of region across state boundaries. As a step toward forward integration JSPL is setting-up a rail & universal beam mill to produce superior quality worlds longest, 120m long, finished rail for the first time in India. A Flash-butt welding plant, with state-of-art technology, is also being 30
installed to produce long welded rails up to 480m for direct transportation to Indian Railways construction sites.
Advantages:
With the availability of 120 m long rails, there will be drastic reduction of weld population in Indian rail tracks (from 160 welds per track km presently to 17) resulting enhances safety and cost reduction. The performance of Indian Railways would improve on account of enhanced safety, increased reliability, comfort and prolonged rail life.
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Specifications of Rails: JSPL rails are being rolled to different sections ranging from BS-75R (37.1 Kg/m) to UIC-70 (70 Kg/m): conforming to Indian Railways as well as international specifications. Rails can be supplied in customized finished lengths ranging from 13 m to 120 m and flash butt welded rails from 240 m up to 480 m.
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POWER
JSPL generates power to meet its captive
requirements. The surplus power is supplied to Chhattisgarh state Electricity Board. The current generation of power is 150MW. Work on another 55MW plant has also been completed. Building upon the strength of our unshakeable foundations, JSPL is poised for a quantum leap in the core sector of power, contributing to the growing needs of the nation. At JSPL, we generate power to meet our captive requirements. In 1991, we entered this vital core sector by utilising waste heat from the rotary kiln boilers and the coal rejects of the washery. JSPL has 255 MW power generation facility with a capacity expansion to 350 MW on anvil. JSPL is one of India's most economical power producers in the private sector. Jindal Power Limited has been established to sharpen our focus, leading to planned growth with a 1,000 MW. Thermal power plant being established in Raigarh district, about 40 kms from our existing plant. An MOU with the State Government has been signed and preliminary work on this project has already commenced. The serious intent of the JSPL foray into power can be gauged from its accelerated pace of expansion and meeting commitments not only on time but well in time. The thrust into this core sector is not only in keeping with our philosophy of creating opportunities where others see problems, but is also in complete synergy with the businesses we already are in. Our vision of utilising existing in-house strengths to fuel further growth has made us a force to reckon with. JSPL has a long-term commitment
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to this vital core sector. Jindal Power Limited will serve to further sharpen our focus on the power sector and thus lead to faster growth.
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FERRO CHROME
Ferro chrome is an essential component in the manufacture of stainless steel and special steel. JSPL manufactures ferro chrome through the continuous smelting of chrome ore, coke, coal and quartz at the submerged arc furnace (SAF). At temperatures of 16001700oC, the chrome ore gets reduced by the carbon of the reductants. The SAF is tapped at regular intervals depending on the power input. Metal and slag come out together and by virtue of the higher specific gravity, the metal settles in the first receptacle. After solidification, the metal is removed from the receptacle and crushed to the required sizes. The emphasis on quality control is strict and in accordance with the stringent requirements of international standards. High-grade chrome ore is made available from captive chrome ore mines in Sukinda Valley of Orissa. Throughout the manufacturing process, special emphasis is laid on ensuring quality of the material at all levels. The plant is fully equipped with a state - of - the - art laboratory, complete with the latest high - tech testing facilities at 36 par with the best
manufacturers in the world. From each tapping, control samples are collected and analysed so as to maintain the international standards of product quality. Almost the entire production of ferro chrome(36,000 MTPA) is committed to India's leading manufacturer of stainless steel. An increase in production capacity is on the anvil and global markets are being tapped to sell the increased production.
STEEL Steel at our Raigarh plant is being manufactured using the Electric Arc Furnace. The steel melt shop (SMS) is equipped with ladle furnace and vacuum degassing and has continuous casting facilities for wide slabs, rounds and blooms. The capacity of SMS is 4, 00,000 MTPA. Steel at our Raigarh plant is being manufactured using the Electric Arc Furnace. The steel melt shop (SMS) is equipped with ladle furnace and vacuum degassing and has continuous casting facilities for wide slabs, rounds and blooms. The steel making capacity at present is 1.15 million TPA. JSPL has recently signed an MoU with the State Government of Orissa to set up a 2 million tonne steel plant with an investment of Rs.13,500 crores which would be expanded to 6 million tonne and another MoU has been signed with the State Government of Jharkhand to set up a 5 million steel plant with an investment of Rs.12,000 crores.
Product Range
Carbon & Alloy Steels confirming to National & International Standards like SAE, AISI, DIN,IS and ASTM
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SIZE RANGE
Billets : 150 x 150 mm squares. Length upto 12 Metres ; Rhomboidity 5mm (max) ; Bend 5mm per Metre ; Width across flat +4mm, -3mm ; Normal cast surface Bloom : 280mm x 320mm rectangle Round : 160mm diameter rounds Slabs : Width 1000mm to 1500mm ; Thickness 150mm & 200mm ; Length 5.0metre to 9.0metre in 1250mm width , 3.0metre to 6.8metre in 1500mm width ; Rhomboidity 5mm max ; Bulging - 2.5mm max; Camber 2mm per Metre ; Normal cast surface On the Anvil Blooms: 285mm x 390mm rectangle Rounds : 200mm & 220mm diameter
HEAVY MACHINERY
A wide range of machinery has been manufactured and supplied to prestigious Indian companies including L&T, Laffarge Cement, South Eastern Coal Field, SAIL, Jindal Strips, Jindal Steel & Power amongst others. The Division is ISO 9002 certified and is equipped with state-of-the-art quality testing and inspection facilities. Some of the machinery manufactured includes gear boxes up to weight of 17 MT, equipment of sponge iron plant, Cold Rolling and Hot Rolling mills; material preparation and handling equipment, etc.
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INSTALLED CAPACITIES
At Raigarh Products Sponge Iron Mild Steel Ferro alloys Oxygen Gas Power Hot Metal/Pig Iron Rail & Universal Beam Mill At Raipur Machinery & Castings Ingots CF Castings 11,500 MTPA 30,000 MTPA Capacity 1,350,000 MTPA 1,150,000 MTPA 36,000 MTPA 14430 M Cum PA 255 MW 250,000 MTPA 750,000 MTPA
3,000 MTPA Future Plans 2006 JSPL has recently signed an MoU with the State Government of Orissa to set up a 2 million tonne steel plant with an investment of Rs. 13.50 crores which could be expanded to 6 million tonne and onther MoU has been singed with the State Government of Jharkhand to set up a 5 million steel with an investment of Rs. 12,000 crores. Year 2006 - 07 Project under expansion :
10.0 Lac MTPA capacity Plate Mill 75 MW Capacity Power Plant based on fuel gases of coke oven 7.0 Lac TPA Rebar, TMT and Wire Rod Mill 23.0 Lac MTPA Capacity Sinter Plant 8.0 Lac MTPA Coke Oven Plant 12.5 Lac MTPA Blast furnace 12.5 Lac MTPA Blast Melting Shop III 5.0 Lac MTPA Steel Melting Shop II 5.0 Lac MTPA Rail & Structural Mill
SALEM STEEL PLANT Certified for ISO9001:2000 Quality Assurance and ISO 14001:1996 Enviornmental Management Systems, Salem Steel Plant (SSP), is one of Indias leading producers of quality stainless steels. The plant is capable of rolling 186200 tonnes of hot rolled carbon/stainless steel flat products and 70000 tonnes of cold-rolled stainless steel sheets/coils annually. SSPs products, branded Salem Stainless are well accepted in the domestic and international markets. The plant has gone beyond its designed capacity in producing thinner gauges and supplies value-added 0.13 mm thick stainless steel, as well as hot rolled carbon steel in thickness of 1.5,1.4 and1.25 mm. In hot rolled special grade carbon steel, SSPs boiler quality steel requires special mention. The plant also supplies LPG grade IS:6240 steel in sheet form. The plant has developed new applications of its products viz. LPG tanks for automobiles, stainless steel ceiling fans, corrugated sheets, water tanks, etc. 44
SSPs Blanking Line has an annual capacity to produce 4000 tonnes of ferritic grade coin blanks or 3600 tonnes of utility blanks. One rupee, 50p and 25p coins are minted from the blanks supplied by SSP to the Govt. Mints in Noida, Mumbai, Kolkata nad Hyderabad. The plant also supplies ferritic stainless steel strips to Govt. Mints. Industrial segment using Salem Stainless include hi-tech areas like atomic power stations, heavy engineering, chemicals & fertilizers, railways, automobile, construction, dairy & food processing, bulk solid handling, power, etc.
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IISCO produces a range of steel structurals and special sections as well as pig iron. The plant pioneered the production of center-sill-Z section used in the fabrication of wagons and Z type sheet pilling section used in the construction of barrages, bridge foundations and other projects and colliery Arch section used for roof support in the collieries. IISCOs Merchant & Rod Mill is equipped with ISO9001:2000 certification.
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Iron Ore Mines Mines Kiriburu Meghahatuburu Bolani Barsua Kalta State Jharkhand Jharkhand Orissa Orissa Orissa 3.00 2.01 1.15 Annual capacity(MT) 4.25 4.30
RMD is planning to expand capacity in view of the enhanced production plans of the steel plants and cope with the requirement of high quality iron ore. The lime stone quaries under RMD are located at Kuteshwar, Purnapani and Bhawnathpur. Dolomite quarry is at Tulsidamar. RMD has centralized workshop at Bolani for repair/overhauling of engines & transmission of heavy earthmoving machinery operating at the mines. 47
Besides the above, RMD has three customer service office at Rourkela, Durgapur and Bokaro for coordination with the steel plants. Two liaison offices are also maintained at Bhubaneshwar and New Delhi for better coordination with government agencies and other statutory authorities.
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enquiry to order booking, order tracking to delivery, and even consultancy after-sales service. CMOs International Trade Division(ITD) in New Delhi exports iron & steel products of SAILs four main integrated steel plants and maintain close liaison with buyers abroad. ITD has successfully established SAILs reputation as a producer of quality steel products and a consistent supplier across the five continents. Among the notable destinations are China , Korea, USA, Canada, Philippines, Indonesia, Malaysia, Saudi Arabia, Iran UAE, Europe(UK, Italy, Spain, Germany), Taiwan, Japan, Thailand and Singapore, as well as neighboring countries like Sri Lanka, Myanmar, Nepal and Bangladesh, etc. The critical function of ensuring efficient and proper dispatch of export materials and timely import of raw materials to maintain the pace of production of the SAIL plants is performend by CMOs Transport & Shipping Division(T&S). Headquartered at Kolkata, T&S has branch offices at Haldia, Paradip and Vizag ports. Both ITD and T&S are accredited with ISO 9001:2000 certification.
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safety personnel and trade union leaders. The emphasis is now on systematic approach to safety management. A multi-disciplinary Safety Engineering Department exist in each of the steel plants and mines to look after their safety needs. SSO also manages the Secretariat of the Joint Committee on Safety, Health & Enviornment in the steel industry(JCSSI), a bipartite forum which addresses safety, health and environment issues in steel plants and mines with active involvement of their managements and central/plant level trade unions. The JCSSI also provides guidelines to its member organizations like SAIL, Tata Steel, RINL, HSCL, Dasturco, etc., on promoting safety, occupational health and pollution control measures.
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installed in the plants and evalution of the emission/discharge data; monitoring air, water and noise qualities of RMD group of mines as per the State Pollution Control Boards stipulations; conducting environmental awareness training programmes for plants/mines personnel at MTI and CPTI; internal evaluation of SAIL plants project proposals from environmental angle and according environmental concurrence; and coordinating with the Central and State pollution control authorities/ministries.
GROWTH DIVISION
Growth Division (GD) in kolkata functions as a nodal agency for manufacture and supply of various spare parts and equipment to the SAIl plants by utilizing available inhouse facilities and vendor base. The main objective of GD are effective utilization of captive engineering facilities of each steel plant; providing technical help to manufacture specialized equipment to cater to present requirement as well as long term expansion and modernization; and undertake projects within SAIL plants or outside.
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SWOT ANALYSIS
STRENGTHS
Brand Name Large Distribution Network Wide product offering at different price points Economic products Encouraging exports Awarded many awards Economy with technology
WEAKNESS
Lack of in house R & D New model introduction limited Dominance mainly at certain specific level only
OPPORTUNITY
Rise of Indian middle class and small cities A booming steel industry Rising exports
THREATS
Many players fighting for the same cake Entry of new players Cannibalism
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DATA ANALYSIS
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ANALYSIS OF DATA
1. Domestic Steel Sales by technology
Resin 0.5%
UV 57%
Eureka Forbes Aqua guard range dominates the market with 65% share in UV purifiers. HLL is the sole player in Chlorine based water purifiers currently launched only in TN market. In Resin based water purifiers Ion exchange dominates the market with 88% share. Softenizer & Iron remover for potable water filtration, Ion exchange controls 88% market.
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HLL 14%
HLL 2%
Eureka 51%
Eureka Forbes is strong in UV water purifiers, it has widest range of offerings. Ion Exchange strong in RO & resin based systems. Permioincs dominates in Ultra filtration (UF) systems. In Iron removal units & softeners Ion exchange & Morf India is a major player. Others include 160+ players like Luminous, Waterdoc, Sumeet appliances, Millipore, Hi-tech, Moniba, Sintex,etc.
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TECHNOLOGY HIGH
RO
UF
UV
Resin
PRICE LOW
Chlorine
15 Organized players 35 + Unorganized players
HIGH
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Hotels 14%
Hospitals 11%
The major of the Corporates in areas like Delhi & Mumbai use 20/ 25 liters mineral water jars. The Small and medium size hotels prefers Point of use water filtration systems. In Big Hotels (5 Star) Potable water filtration system is the part of complete water treatment plant. Hospitals mainly use complete water filtration plant Potable filtration system is a part of it. Airports uses Point of use water filtration systems Major brand are Aquagaurd and Zero B. Most of the educational institutes in C grade cities directly uses supply water for drinking purpose. Large & Medium size Industrial units has complete water filtration plant, however small units uses Domestic range of water filtration systems. Food & Beverage units use complete water treatment plant Potable water filtration system is the part of it.
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5. Technology Usage
UV water filtration systems are having good installed base, but RO systems are aggressively replacing the UV system market. POE Includes: Water softener, Activated carbon filters & Point of Entry RO & UV Plants. Resin based water filters are Preferred in B & C grade cities, due to lower costs.
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6. Purchase Details
77% of the respondents have either received sales call or a visit from the company, but only 23% have bought Through Dealers or Franchisee, there are chances of respondent becoming aware of the water filters by these sales calls. Majority of sales in Corporates & Educational institute segment through sales call. Sales in airport segment is through tenders Directly by the company. Institutional users prefers to purchase directly through the company.
No 23 %
Yes 77 %
Franchises 4 %
Dealer 21 %
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7. Installations
Franchise 10%
Installation in majority of the cases done by company service personals. AMC service is available after warranty period. In Industrial & hospital segment, users prefers their own technical team. Corporates, Educational institutes, Airports uses AMC services through suppliers or Dealers. Average cost of AMC differs on Technology & category of product used. 4 to 6 service calls are made per year excluding services on immediate calls.
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8. Purchase Criteria
When asked about the key features the consumer is looking for while buying the water filter, the following where the result found, as can be seen quality is the most important feature an user is looking for while buying the product, followed by brand image, price & performance respectively.
Quality Brand image Price Performance After sales support Warranty Technical support Aesthetics Installation facility Delivery Sales person Presales service Range of products 0 6.7 6.6 5.7 5.3 4.7 4.5 4.3 4.2 4.1 5 10 15 20 25 9.4 9.4 11.5 23.6
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9. Expectations
Top 5 expectations on PRODUCT Product performance Product quality Design and compactness of the product Durability Brand name Top 5 expectations on SUPPORT Faster response Good sales service Monthly visit/ call to check on the product Better after sales service Personnel 32% 19% 9% 9% 5% 37% 22% 15% 10% 7%
Top 5 expectations on COMMERCIAL TERMS Competitive price Cash discounts Facility for payment to be made in installments Facility for credit system Better Warranty periods Top 5 expectations from the SUPPLIER Good Service Timeliness Relationship/ partnership Personnel attitude Delivery on schedule 16% 12% 11% 10% 10% 48% 13% 11% 4% 4%
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The project revolves around the traders of Naraina Trade New Delhi, Faridabad Trade and Ghaziabad Trade. The survey was conducted over 7-8 Iron & Steel traders dealing in steel Beams & Columns of each Trade. A variety of questions were asked ranging from market size, primary and secondary players, major competitors, where does JSPL H-Flanges Beams and Columns stand in comparison to ISMB, additional benefits provided by other companies, sizes in demand, consumption of steel beams and column of size 200 and above etc. It was found that Quality of H-Flanges Beams and Column is comparatively high and it was adopted by all the traders. Also at the same time 90% of traders said that for them Quality means sale. 60% traders feel that JSPL produces odd sizes as compared to existing ones m the market. Customer shows little hesitation in buying sections that arent ISMB sections. There is a common felling in the market that loss of taper has reduced the strength of the product. 70% sales accounts for products of primary manufacturers like SAIL, JSPL, VSP etc. The rest 30% the Beams and Column is sold of secondary players among them MAHAMAYA, VANDANA and PRAIKASH holds the maximum share. Due to non-availability of raw material certain manufacturers, primary or secondary arent producing their sections. Hence, at present JSPL is the leader in sales. 90% of Traders seeked for additional facilities like
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Turn over discount (provided by SAIL) Interest free Credit (by SAIL) Quality discount (by SAIL) Pen, keychain, calendars etc for sale promotion (ESSAR) Authorized Dealers. Post-sales service (if any) Monthly turnover of Trade is between 3200-3500 tones for total structural and JSPL has approx. 35% share in the Naraina Trade. Some companies have their offices at their manufacturing units and also in or nearby places.
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CONCLUSION
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CONCLUSION
For Traders Quality means SALE
OEMS & STRUCTURAL CONSULTANTS &DESIGNERS The market research and market awareness program revolves around 5-6 top most builders, promoters, investors of Delhi and NCR like IJNITECH LTD., DLF IJMVIERSAL LTD., OMAXE CONSTRUCTION LTD. JAI KRISHAN ESTATE (P) LTD, ANSAL BUILD WELL LTD etc. It also includes 8-9 valued architects, planners, and designers like VASTUMDHI, MODERN (INDIA) ARCHITECTS, S. GHOSH AND ASSOCIATES, DIMIENTIONS ARCHITECTS, and AJAY BATRA ARCHITECTS etc. A variety of questions were asked like the area they deals in Academic institution, corporate architecture, factory, industrial projects etc, What all points you consider while using Beams and Column quality, easy availability, costs time of delivery etc, You prefer using or suggesting Primary player or Secondary players beams and column which one and why, have ever used or suggested H-flanges beams and column 80% of builders and contractors deals in academic and residential architecture Almost all the builders prefer RCC structure over Beams and Columns Everyone knew about Jindal and there was 70% awareness of product hot rolled parallel flanges beams and column among builders and constructors. Among Architects and Designers there was sufficient awareness of H-Flanges beams and column but only 40% knew about JSPL Hot rolled parallel flange beams and column. 70% of builders felt the loss of taper has reduced the strength.
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15% of architects felt while 85% had sufficient knowledge about the strength of internationally approved H-Flanges beams and column. For builders easily availability and cost effectiveness is the priority for using beams and column. For architects quality and easily availability is the prime measure for suggesting beams and columns. For Government projects and size 200 and above primary player is taken into use and among them SAIL & JSPL dominate. Till the end of the project 6 out of 10 architects recommended H-Flanges beams and columns.
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RECOMMENDATIONS
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RECOMMENDATIONS
Frequency of Trade visit by the concerned people should increase. Proper steps should be taken to bring about a change in the feeling that loss of taper has reduced the strength. In comparison with Naraina & Ghaziabad Trade, there was little awareness in Faridabad. So company should increase its marketing effort in the city. Local players have their manufacturing units close to Delhi and can give the delivery in one or two days from the day order is placed. Primary and secondary players have their dealers and agents in Delhi and NCR who are regularly in touch .with the market and provide details of sections in demand to the company beforehand. And above all, traders are company customers and customer are seeking for value addition in terms interest free credit, quality discount, post-sale service etc the company should include certain steps to develop better customer relation.
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ANNEXURES
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ANNEXURES
QUESTIONNAIRE-A
(For Traders) This questionnaire is designed with the objective of analyzing the role of Traders in booming the companys sale. 1. NAME 2. LOCATION 3. Who are the Primary players of Steel Beams & Column and their distributing agent? 4. Who are the Secondary players of Steel Beams & Column and their distributing agents? 5. Monthly consumption of size 200 and above in tones? 6. What is the awareness of JSPL H-Flange Beams & Column in market? a. Good b. O.K. c. Poor If so, any suggestion ........................................................................ .............................. .......................................... 7. What are the Merits of JSPL H-Flange Beams & Column over competitors? a............................................................................................................................ b........................................................................................................................... c........................................................................................................................... 8. What is the De-merits of JSPL H-Flange Beams & Column over competitors? a............................................................................................................................ b........................................................................................................................... 9. Who holds the maximum market share and the reason behind it? a............................................................................................................................ b...........................................................................................................................
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QUESTIONNAIRE-B
(Architects and Builders) This questionnaire is designed with an objective to analyze the awareness of JSPL HFlanges Beams and Column between Builders, promoters, Planners, Architects and Interior Designers. 1. 2. 3. NAME LOCATION Deals in 4. 5. Academic institution Corporate architecture Factory Industrial Projects
What are the points you consider while using Beams and Column Quality Easy availability Costs Time of delivery
You prefer using or suggesting Primary player or Secondary players beams and column. Which one and Why........................................................................ .............................................................................................................................. ..............................................................................................................................
6.
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If yes what is the performance level 7. Beams Very good Good O.K Poor and Good Moderate Low Column to Builders and Architects
Response scale after explaining the benefits of Hot Rolled Parallel Flanges
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BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS
Kotler Philip, Marketing Management, New Delhi, Prentice Hall Of India Private Limited, 2003 Kothari C.R. Research Methodology, New Delhi, Wishwaw Prakashan Gurgaon Chamber of commerce & Industry Post Box No. 2 Khandsa Road, Gurgaon., Haryana Tel: 95124-2370303, 2370404 Various magazines, news letter on iron and steel industry
WEBSIDE ADDRESS
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