Académique Documents
Professionnel Documents
Culture Documents
TATA STEEL
2012
12 February, 2012
SR. NO.
STUDENTS NAME
COURSE
ROLL NO.
Sandeep Ghatuary
MBA (MKTG)
(Kolhan University). PROJECT REPORT SUBMITTED TO: TMDC (Jamshedpur). PROJECT GUIDE: Mr. Kapil Nandrajog. CAM, Jamshedpur. Marketing and Sales Tubes. TATA STEEL LIMITED, Tubes Division, Jamshedpur.
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ACKNOWLEDGEMENT
At the prime outset, we owe are sincere gratitude to the management and allied discipline of TUBES DIVISION, TATA STEEL (Jamshedpur), for giving an opportunity to undergo the summer training. The project report is inspired from the annual reports of the company, market survey and information provided by the employees in required fields; whom I should certainly acknowledge, as without their contribution, this report would not have been appropriate. We specially thank Mr Kapil Nandrajog, CAM, Tubes Division, Tata Steel Ltd; for his valuable guidance. We should appreciate and sincerely acknowledge suggestions from Mr Ibrar Khan, Sales coordinator, Tubes Division, Tata Steel; who has always been my source of incessant motivation and has always extended his unstinted support in the making of this project. We also thank Mr. Gautam Ghosh, personnel, TMDC for his kind attention to all our problems and queries during the research period. All should be worthless, if we dont mention the support and encouragement shown by my parents. Without their help and wishes, this project would not have been a success.
INTERNAL
EXTERNAL
12 February, 2012
PREFACE
We want to express our gratitude to Tubes Division,Tata Steel (Jamshedpur), for the experience and practical knowledge that we gained during the summer internship project. It was the first time when we went to the market not to buy anything but to do a survey to know the Market Potential and Customer Preferences of Tata Pipes. The main requirement was to interact with dealers and customers. The project consists of company details, market research, data collection method, questionnaire and data analysis. We hope that our findings and recommendations would help the company, to analyse its strategy in comparison to its competitors. We are obliged to work in such an esteemed organization and have tried our best to align our objective with the companys goal.
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EXECUTIVE SUMMARY
Tubes Division, TATA Steel is the leading manufacturer of commercial Tubes in the market with a well established national network. It delivers quality and enjoys enormous brand equity. It faces threat from competitors who try to turn the market to their side by scoring over the points where Tubes Division, TATA STEEL, falls short. Therefore, we, marketing students, working in Tubes division, TATA STEEL as management trainees, have undertaken a project, to find out the market potential of TATA PIPES in Jharkhand. Our main objectives are: (1) To find out and compare the market share of major segment. (2) To measure the threat of substitution from another segment, PVC pipes. (3) To find out the critical factors that might result in loss of market share and brand equity. The sole purpose of our research work is to benefit the TUBES DIVISION, TATA STEEL, in following ways: (1) Critical factors affecting sales, once identified, can be worked upon so as to eradicate the risk of loosing market share to the competitor. (2) Working on the problematic areas would also save its reputation in the market. (3) Knowledge about strengths and weaknesses of the competitors from the same segment, would help the company build its marketing strategies accordingly so as to maintain or increase its market share. (4) Realizing opportunities, as, new product development; PVC pipes, to eradicate the threat of substitution from the segment. This report is precise and purely specific to its purpose; targeted to enable Managers to take relevant decisions. companies in commercial steel pipe
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CONTENTS
SR. NO
1
TOPIC
PAGE NO.
11
2 COMPANY HISTORY 3 VISION & MISSION 4 THE FOUNDER 5 PIONEERS 6 LOCATION MAP OF TATA STEEL 7 COMPANY PROFILE 8 BOARD OF DIRECTORS 9 BUSINESS ETHICS 10
12-13
13
14
15-17
17
18
19-20
21
22-23
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CSR 11 STRATEGIC BUSINESS UNITS 12 FINANCIAL DATA (MARCH05 MARCH 09) 13 SUBSIDIARY ASSOCIATES 14 INTRODUCTION TO TUBES DIVISION 15 ORGANIZATIONAL HIERARCHY 16 SIPOC MODEL 17 PRODUCT & ITS APPLICATION; 39 38 37 36 30-335 27-29 24-26
PRODUCT MILL SPECIFICATION 18 PRODUCT PROFILE & SPECIFICATION; MANUFACTURING TECHNOLOGY 19 20 SEGMENT CHOSEN FOR RESEARCH WORK; PROJECT CHARTER 21 STEPS FOLLOWED AS PER OPERATIONAL DEFINITION 49 MANUFACTURING PROCESS 45 46-48 40-44
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22 RESEARCH METHODOLOGY 23 LIMITATIONS; QUESTIONNAIRE DESIGN 24 SAMPLE QUESTIONNAIRE 25 DATA ANALYSIS 26 HYPOTHESIS SUBSTANTIATION 27 SWOT ANALYSIS OF TATA PIPES 28 COMPANY PROFILE OF KEY COMPETITOR: JINDAL PIPES 29 PRODUCT RANGE 30 SWOT ANALYSIS; THREAT OF SUBSTITUTION IDENTIFIED 31 RECOMMENDATION 34 BIBLIOGRAPHY
50
51
52-58
59-89
90
91
89
93
94
95-96
97
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Tata steel Ltd. was established in 1907 and was the first integrated steel plant in India . It commenced its operation 1911,with a capacity of 1,00,000 tones per annum of ingots and expended to a million tones per annum of saleable steel by the mid fifties , presently it has an annual capacity of 6 million tones at its Jamshedpur plants. TATA STEEL LTD.operates as India's largest integrated steel works in the private sector with a market share of nearly 13 percent and is the second largest steel company in the entire industry. Its products and services include hot and cold rolled coils and sheets, tubes, construction bars, forging quality steel, rods, structurals, strips and bearings, steel plant and material handling equipment, Ferro alloys and other minerals, software for process controls, and cargo handling services. Through its subsidiaries, TATA STEEL LTD. also offers tinplate, wires, rolls, refractories, and project management services. Its steel plant at Jamshedpur produces four million tones of hot and cold rolled flat and long products. The plant ,equipped with the latest steel making facilities such as basic oxygen furnaces , vacuum degassing and continuous casting units ,presents the very epitome of technological advancement .A whole range of steel addressing the needs of the construction/ Engineering and Automotive sector, testify to Tata Steel capability . These product have found acceptance not only in the domestic market but all over the world. The company is backward integrated with owned iron ore mines and collieries. With its competitive advantage in raw materials, efficient operations and the benefits of a recently-completed $2.3 billion programme of modernization, Tata Steel is among the lowest cost steel producers in the world. The steel major has won the Prime Minister's Trophy four times. This award is instituted by the Indian ministry of steel and awarded to the country's best integrated steel plant. In 2000, it became the first Tata company to win the JRD Tata QV award, given to the company with 'world class' operations under the Group's Tata Business Excellence Model
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COMPANY HISTORY
Tata Iron & Steel Company Ltd. (TISCO); now known as TATA STEEL LTD. is the iron and steel production company associated with the Tata group of some 80 different industrial and other business enterprises in India, founded by members of the Tata family. Tata's Early Beginnings in the 1800s The story of TATA STEEL LTD. is the story of one family or, more accurately, one man whose vision and determination to give India a modern industrial economy helped to provide a platform for the country's independence half a century after his death. At the same time, he helped create what was by 1970 India's biggest nonpublic enterprise. Jamsetji Nusserwanji Tata was born into a well-to-do family of Bombay Parsees in 1839.Tata's father was a successful merchant with interests in the cotton trade to Britain. Tata joined the family business after an education at Elphinstone College in Bombay and was sent to Lancashire, England, in 1864 to represent the firm there. Tata's own background was in cotton production. He believed that mills could function successfully in India in close proximity to the cotton-producing areas in the west of the country, thereby putting them in a strong position to undercut their Lancashire competitors. He obtained air conditioning equipment from suppliers in the United States and the latest cotton spinning machinery installed to provide the optimum climatic conditions for spinning. His early ventures showed promise and in 1874 he founded his first company, the Central India Spinning, Weaving and Manufacturing Company. Cotton was only a start. From his travels in other industrialized nations he had come to identify three essential elements for a modern industrial economy: steel production, hydroelectric power, and technical education. Although he did not live to see any of his schemes in these areas come to fruition, he laid the foundations on which his sons, and then later generations of his family, were able to build to realize his ambitions.
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Tata Steel was established by Indian Parsi businessman Jamsetji Nusserwanji Tata in 1907 (he died in 1904, before the project was completed). Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in England. It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident fund for its employees as early as in 1920, which became a law for all employers under the PROVIDENT FUND ACT only in 1952. Tata Steel's furnaces have never been disrupted on account of a labour strike and this is an enviable record.
VISION
Tata Steel enters the new millennium with the confidence of a learning, knowledge-based and happy organization. We will establish ourselves as the supplier of choice by delighting our customers with our services and our products. In the coming decade, we will become the most cost-competitive steel plant and so serve the community and the nation. Where Tata Steel ventures others will follow.
MISSION
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India's industrial base through the effective utilization of men and materials. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices. Tata Steel recognizes that while honesty and integrity are essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the Company seeks to scale heights of excellence in all that it does in an atmosphere free from fear, and one, which encourages innovativeness and creativity.
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THE FOUNDER
JAMSETJI NUSSERWANJI TATA (1839-1904) Jamsetji Nusserwanji Tata ranks among the greatest visionaries of Industrial enterprises of all time. Gifted with the most extraordinary imagination and prescience, he laid the foundations of Indian industry, contributed to its consolidation, and became a key figure in Indias industrial renaissance. Born on 3rd March, 1839 into a family descended from Parsi priests in Navsari, a centre for ageold Parsi culture, he was educated at Elphinstone College, Bombay. Initiated early into the techniques of trade by his father, he traveled wide, gained a scientific outlook, and set up at first, textile business in India, introducing new machinery that vastly improved the production of cotton yarn in the country. He however realized that Indias real freedom depended upon her self-sufficiency in scientific knowledge, power and steel, and thus devoted the major part of his life, and his fortune to three great enterprises The Indian Institute of Science at Bangalore, the hydro-electric schemes, and the Iron & Steel Works at Jamshedpur. Wealth to him was not the end but a means to an end, the increased prosperity of India. His attitude to labour was remarkably ahead of his times, constantly reinforcing the norm that the success of industry depended upon sound and straightforward business principles, the interests of the shareholders, the health and welfare of the employees. As early as 1892, he established the J N Tata endowment for higher education abroad of outstanding Indian students.
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PIONEERS
SIR DORABJI TATA (1859-1933) J N Tata had exhorted to his sons to pursue and develop his lifes work; his elder son, Dora Tate carried out the bequest with scrupulous zeal, and distinction.Dorab Tata was the first Chairman of the gigantic Tata enterprises. He had a deep interest in people. The great labour strike in 1920 in Jamshedpur ended in a day due to his intervention. It demonstrated India could have no better employer of labour than Sir Dorab. A great sportsman (riding, tennis, football, cricket), he was President of the Indian Olympic Association which he served keenly with liberal funds, and total commitment. He was the Founder of the Parsi Gymkhana of Bombay, and a founder member of the Willingdon Sports Club. His charities were numerous and munificent. The Dorab Tata Charitable Trust that he executed, covering property and crores of rupees is used today for innumerable charitable causes and institutions. BHARAT RATNA JEHANGIR RATANJI DADABHAI TATA (1904-1993) JRD Tata has been one of the greatest builders and personalities of modern India in the twentieth century. He assumed Chairmanship of Tata Sons Limited at the young age of 34; but his charismatic, disciplined and forward-looking leadership over the next 50 years and more, led the Tata Group to new heights of achievement, expansion and modernization. Under his stewardship, the number of Tata ventures grew from 13 to around 80, encompassing steel, power generation, engineering, hotels, consultancy services, information technology, art and culture, consumer goods, industrial products, etc. He was the pioneer of civil aviation in India. In 1932, he introduced air transport in the country--the enterprise later became Air India. He implicitly followed the principles of business ethics of the great visionary Jamsetji Tata, his ideal. He also personally crusaded for issues that he felt were imperative for Indias development--family planning, womens education, spread of literacy. The 100% successful
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family welfare schemes at Tata Steel and the various educational programs for all, directly emanate from JRD Tatas insight. Numerous national and international honours were bestowed on JRD Tata. These included Knight Commanders Cross of the Order of Merit of the Federal Republic of Germany, Bessemer Medal of the Institute of Metals, London, and the United Nations Population Award. Government of India conferred the highest civilian award of the land, Bharat Ratna to JRD Tata in 1992.For all his colossal achievements, JRD Tata was a modest, sensitive man, forever espousing the cause of his employees. His natural love for people endeared him to all... across the entire spectrum of society. RATAN TATA (1993 Till now) Ratan N. Tata serves as Chairman of the board, Member of Group Corporate Centre and Member of Group Executive Board of Tata Group. Mr. Tata was appointed Director-incharge of National Radio & Electronics Company Ltd. Indias industrial renaissance.Tata Steel is a solid manifestation of the iron grit, courage and determination of its founder, Jamsetji Tata (NELCO) in 1971. He serves as Chairman Emeritus for Nelco Ltd. Tata Motors Ltd. , Tata Chemicals Ltd. , Tata Power Company Ltd. ,Tata Iron & Steel Co. Ltd. and Tata Tea Ltd. Mr. Tata joined Tata Group in 1962. As a Chairman of Tata Industries Ltd. since 1981, he was responsible for transforming the company into a Group strategy think-tank and a promoter of new ventures in high technology businesses. In 1991, Mr. Tata was appointed Chairman of Tata Sons Ltd. the holding company of the Tata Entities and currently holds the Chairmanships of major Tata companies. During the tenure, the groups revenues have grown over ten-fold to annualized group revenues of $62.5 billion. Mr. Tata is on the Central Board of the Reserve Bank of India, a member of the Prime Minister Council on Trade and Industry beside a member of various global councils. He is also the Chairman of two of the largest private sector promoted philanthropic trust in India. The Government of India honored Mr. Tata with its second highest civilian award, the Padma Vibhushan, in 2008. Earlier, in 2000, he had been awarded the Padma Bhushan. He has also been conferred an honorary doctorate in business administration by the Ohio State University, an honorary doctorate in technology by the Asian Institute of Technology, Bangkok,
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an honorary doctorate in Science by the University of Warwick, and honorary fellowship by the London School of Economics. Mr. Tata has been on the company Board since over 19 years including 13 years in an executive capacity and is actively involved with product development and other business strategies pursued by the company. One of his achievements include designing and developing an indigenous Indian car-Indica & Nano; which decides creating a record of sorts, is one the leading products in its category in the car market. Cyrus Mistry (From Dec2012) Cyrus Mistry, 43, is the son of construction tycoon Pallonji Shapoorji Mistry. Valued at $8.8 billion, Pallonji holds an 18.5 per cent stake in Tata Sons, making him the single largest shareholder. He has been a director of Tata Sons since September 1, 2006. He served as a Director of Tata Elxsi Limited, from September 24, 1990 to October 26, 2009 and was a Director of Tata Power Co. Ltd until September 18, 2006.Mr Mistry serves as Chairman of the Board of Shapoorji Pallonji Group and Afcons InfrastructureLimited. Mr Mistry also serves as Director of various companies including - Forvol International Services Ltd, Shapoorji Pallonji & Co. Ltd, Cyrus Investments Ltd, Shapoorji Pallonji Power Co. Ltd, Buildbazaar Technologies (India) Pvt Ltd, Sterling Investment Corporation Pvt. Ltd, Samalpatti Power Co. Pvt. Ltd, Shapoorji Pallonji & Co. (Rajkot) Pvt. Ltd, Shapoorji Pallonji Finance Ltd, Shapoorji Pallonji Infrastructure Capital Co. Ltd, Oman Shapoorji Construction Co. Ltd. Mr Mistry has been a Non-executive Director of Forbes Gokak Limited since June 23, 2003. Mr Mistry is Fellow of the Institute of Civil Engineers. He holds BE (Civil Engineering) from Imperial College, London and Master of Science in Management from London Business School. He holds a Bachelor of Commerce from Mumbai University. An avid golfer, Mr Mistry is also a founder member of the Construction Federation of India. He is a trustee of the Breach Candy Hospital Trust, Mumbai. He is also on the board of Imperial College India Foundation. He has been appointed deputy chairman and chairman-designate of Tata Group and its holding company Tata Sons which will make him the first non-Indian national to head the Indian conglomerate. Mistry will work with the current chairman Ratan Tata for one year and begin serving as chairman in December 2012
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COMPANY PROFILE
The Tata Steel Group has always believed that mutual benefit of countries, corporations and communities is the most effective route to growth. Tata Steel has not limited its operations and businesses within India but has built an imposing presence around the globe as well. With the acquisition of Corus in 2007 leading to commencement of Tata Steel's European operations, the Company today, is
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among the top ten steel producers in the world with an existing annual crude steel production capacity of around 30 million tonnes per annum and employee strength of above 80,000 across five continents. The Group recorded a turnover of Rs.147,329 Crores (US$ 28,962 million) in 2008 - 2009. The Company has always had significant impact on the economic development in India and now seeks to strengthen its position of pre-eminence in international domain by continuing to lead by example of responsibility and trust. Tata Steels overseas ventures and investments in global companies have helped the Company create a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries. The Groups South East Asian operations comprise Tata Steel Thailand, in which it has 67.1% equity and Nat Steel Holdings, which is one of the largest steel producers in the Asia Pacific with presence across seven countries. Managing a global workforce and setting global benchmarks is primarily about managing diversity. In a process of inclusive growth, every person contributes to the blueprint of the future and is truly committed to the stated objectives. And one of the key requisites for successful diversity management is a shared vision.
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BOARD OF DIRECTORS
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BUSINESS ETHICS
The Tata Steel Group is proudly represented by people who act with integrity and passion. The strong focus on Value Creation and Corporate Citizenship has helped the group build an enviable corporate reputation founded in honest and transparent approaches. The values and principles, which have Governed Tata Steels business for a century, have been deployed through the implementation of the Tata Code of Conduct (TCOC), which was first formally articulated in 1998. This Code was intended to serve as a guide to each employee on the values, ethics and business principles expected of him or her in personal and professional conduct. The Management of Business Ethics is effectively instituted today in Tata Steel through its four pillars concept.
A number of initiatives are continuously taken to reinforce the Code of Conduct among employees and other stakeholders. The systems and processes are revisited and modified constantly to ensure that they are not subjected to unethical practices. The Communications function of Tata Steel Group has been of supreme importance in connecting and building relationships of trust within the organization and outside and in reflecting the aspirations and goals for the future. The senior leadership team in the Company is actively engaged in communication on business ethics at various levels and forums. The Company does not ever hesitate to take visible disciplinary actions when necessary and no violation of TCOC, however insignificant, is ever tolerated. The aim is to strengthen employee involvement in a positive and regular manner and enhance the
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sense of accountability.
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and social status of the communities. The most prominent social-activity groups are: Tata Steel Rural Development Society (TSRDS), Tata Cutural Society (TCS), Community Development & Social Welfare Department (CD&SW), Tata Steel Family Initiatives Foundation (TSFIF) & Urban Services. Years of involvement, either directly or through the operating units has made Tata Steel one of the largest non-governmental agencies to be engaged in community development in the Country. Through the years the Company has Supported and nurtured leadership among self-help groups and village advocacy groups, Encouraged multi cropping and irrigation across thousands of acres in over 800 villages in Jharkhand, Orissa and Chhattisgarh. Earmarked dedicated resources for social welfare, rural and tribal development and programmes for community empowerment. Encouraged enterprise development to create sustainable growth in the villages. Adopted rehabilitation and resettlement initiatives under the 'Tata Parivar programme for all families affected by Greenfield projects.
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FLATS
The Flat products business group of the Steel division is the countrys largest manufacturer of world-class steel products. With a capacity of 2.5 million tones per annum of hot rolled, cold rolled and coated products, this business group produces approximately 65% of total saleable steel. The steel with a soul, Tata Steelium is one of the first branded cold rolled steel products in India. The brand promises superior formability, flatness, surface quality, thickness, consistency and strength
LONGS
The Long products business group of the Steel division produces value-added finished products comprising SBQ (Special Bar Quality), wire rods, merchant bars and semis in the form of continuous cast billets.
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FERRO ALLOYS AND MINERALS This business unit operates the chrome mines in Sukinda valley in Orissa and has a Ferro chrome making unit in Bamnipal and a Ferro manganese unit at Joda. It is one of the largest players in the global ferro chrome market.
TUBES
Tata Steel Tubes business unit is the largest domestic manufacturer of steel tubes. It promotes three lines of businesses: Standard tubes, Precision tubes and Closed structural.
BEARINGS Tata Bearings is a leader in the auto ancillary two-wheeler market segment.It produces around 22.46 million ball bearings and 2.56 million taper roller bearings.
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GROWTH-SHOP
Growth Shop delivers world-class services and equipment. Over the years, it has played an important role in the modernization of Tata Steels Jamshedpur plant. The Growth Shop has the capacity to design, manufacture and commission equipment for the Steel and allied industries.
RINGS The Rings division produces rings and annular products at the ring plant and Ring Rolling Mill for ball bearings, taper roller bearings, cylindrical roller bearings, spherical roller bearings and auto-components.
AGRICO
Tata Agrico products are the most sought after hand tools and implements for agriculture and industrial applications in the country.
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FINANCIALS FOR THE LAST 5 YEARS (Figures in crores) Cash Flow for last 5 years
Particulars Profit Before Tax
Net Cash Flows from Operating Activity
Mar'11 9,776.85
8,542.72
Mar'10 7,214.30
8,369.22
Mar'09 7,315.61
7,397.22
Mar'08 7,066.36
6,254.20
Mar'07 6,261.65
5,118.10
-13,288.13
-5,254.84
-9,428.08
-29,318.58
-5,427.60
5,652.81
-1,473.13
3,156.42
15,848.07
7,702.46
907.40
1,641.25
1,125.56
-7,216.31
7,392.96
3,234.14
1,592.89
465.04
7,681.35
288.39
4,141.54
3,234.14
1,590.60
465.04
7,681.35
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SUBSIDIARY ASSOCIATES
Corus : Europes second largest steel maker with operations in the UK and mainland Europe and over 40,000 employees worldwide. Its long and strip products cater to the construction, automotive, packaging, engineering and other markets worldwide. Corus is implementing major investments at its plants at Ijmuiden, in the Netherlands and at Scunthorpe in the UK as part of its drive to strengthen product differentiation, improve operational efficiency and reinforce existing competitive position, particularly in the
construction and automotive sectors, including the development of new advanced high strength steels.
Tinplate Company of India Limited (TCIL) : With a market share of over 35%, it is the industry leader in India. It has the capability to supply all tinning line products including electrolytic tinplate / tinfree steel and cold-rolled products.
Tayo Rolls Limited: India's leading roll manufacturer and supplier, the company produces rolls which find application in integrated steel plants, power plants, the paper, textile and food processing sectors, and the government mint.
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Tata Ryerson Limited (TRYL): TRYL Is in the business of steel processing and distribution. It offers hot and cold rolled flat steel products in customized sizes and quantities through processing services and materials management services.
Tata Refractories Limited (TRL): It produces High Alumina, Basic, Dolomite, Silica and Monolithic Refractories and offers design, procurement and re-lining applications services. It is one of the few companies worldwide to produce silica refractory for coke ovens and the glass industry.
Tata Sponge Iron Limited (TSIL): TSIL is the first Indian sponge iron plant based on Tata Steel's Direct Reduction Technology. Its major product lines are sponge iron lumps and fines.
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Tata Metaliks: Amongst the top wealth creating companies (EVA+) in the country, Tata Metaliks is engaged in the business of manufacturing and selling foundry grade pig iron.
Tata Pigments Limited: TPL's range of products includes oxides of iron, dry cement paint, exterior emulsion paint and distemper. Its products are used in paints, emulsion, cement floors, plastic etc.
Jamshedpur Injection Powder Limited (Jamipol): JAMIPOL manufactures carbide de-sulphurising compounds which are used for de-sulphurising hot metal for the production of low-sulphur, highquality steel.
TM International Logistics Limited (TMILL): TMILL provides material handling and port operation services at Haldia and Paradip Ports in addition to providing freight forwarding and chartering services.
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mjunction services limited : mjunction, operating at the cutting edge of Information Technology, is a 50:50 venture of SAIL and Tata Steel. It is India's largest ecommerce company and the world's largest eMarketplace for steel. mjunction offers a wide range of selling, sourcing and knowledge services that empower businesses with greater process efficiencies
TRF Limited: TRF, one of India's leading companies in the business of design, manufacture, supply, installation and commissioning of engineered-to-order equipment and systems in the areas of bulk material handling, processing, reclaiming and blending. TRF has also made its mark in the fields of coke oven equipment, coal dust injection systems for blast furnaces and coal beneficiation systems.
Jamshedpur Utility and Service Company Limited (JUSCO): Reengineered out of Tata Steel's town services, JUSCO is a wholly owned subsidiary of Tata Steel and is the country's first enterprise that provides municipal and civic services for townships. JUSCO is the only EMS 14001 civic services provider in the country
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The Indian Steel and Wire Products Limited (ISWP): Recently acquired by Tata Steel, ISWP has two units - a wire unit comprising wire drawing mills, wire rod mills and a fastener division and a steel roll manufacturing unit named Jamshedpur Engineering and Machining Company - JEMCO.
Dhamra Port Company, Orissa: A JV between Larsen & Toubro Ltd. and Tata Steel Ltd., the company will build a deep-draft (18 meters) all weather port on the east coast of India. The port will handle 80 million tons per annum of cargo.
Hooghly Met Coke & Power Company : A joint venture with West Bengal Industrial Development Corporation Ltd., HMC&PC envisages an annual met coke production capacity of 1.2 million tones and 90 MW of electric power
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Lanka Special Steel Limited: The only unit in Sri Lanka manufacturing galvanised wires.
Sila Eastern Company Limited: Established to develop limestone mines in Thailand, mainly for the captive use of Tata Steel.
NatSteel Asia (NSA): A leading supplier of premium steel products for the construction industry. NatSteel Asia became a 100% subsidiary of Tata Steel in February 2004. NSA produces about 2 MT of steel products annually across its regional operations in seven countries
Tata Steel Thailand: The company is the dominant steel producer in Thailand. The company has the capacity to produce 1.7 million tons of steel for the construction industry per year.
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Tata BlueScope Steel Limited: A joint venture with BlueScope Steel Limited, Australia, Tata BlueScope Steel Limited offers a comprehensive range of branded steel products for building and construction applications. The Company is constructing a state-ofthe-art metallic coating and painting facility at Jamshedpur
Tata Steel KZ: Proposes to set up high carbon ferrochrome plant in South Africa. The plant is slated to be commissioned by October 2007 with an annual production capacity of 135,000 tons during Phase 1. Tata NYK: A joint venture with Nippon Yusen Kabushiki Kaisha (NYK Line) for setting up a shipping company to cater to dry bulk and break bulk cargo. Tata Steel and NYK will each hold 50% stake in the joint venture company.
TUBES DIVISON
INTRODUCTION
Steel Tube Technology opened up in India in the early 1950s with the establishment of the Indian Tube Company Ltd. (ITC), a joint venture between Tata Steel and Stewarts & Lloyds UK. After the disinvestments by British Steel, ITC merged with Tata Steel to form the Tubes Division in 1985, which today is the leading Welded Steel Tube Company in India with a manufacturing capacity of 200,000 tones. Pipes manufactured by the Companys strategic business unit Tata Tubes, is the most prominent brand in the industry today which is retailed through a wide
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distribution network. A deeply thought out branding exercise was undertaken in order to unleash the power of the Tata Pipes' brand in the welded steel category. The Tubes-SBU promotes three lines of businesses - (i) The Commercial Tubes Business under the Tata Pipes brand, (ii) The Precision Tubes Business and (iii) The Steel Hollow Sections Business under the Tata Structura brand. Tata Tubes - a Strategic Business Unit (SBU) of Tata Steel, is the largest domestic manufacturer of steel tubes today. Tata Tubes is presently the leading "Welded Steel" Tube Company in India with a manufacturing capacity of 400,000 tonnes. Its main works is situated at Jamshedpur and the marketing head office in Kolkata.
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SIPOCMODEL
TATA STEEL.
CUSTOMER - TATA MOTORS; TOYOTA; HONDA; M&M. & MANY OTHERS THROUGH EPROCUREMENT.
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Structural Tubes
0.60mm - 5.50mm
3HFIW
12.70mm - 76.20mm
0.60mm - 6.00mm
4ERW
31.75mm -114.30mm
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Thickne ss (mm)
15
L M H
21.4 21.8 21.8 26.9 27.3 27.3 33.8 34.2 34.2 42.5 42.9 42.9 48.4 48.8 48.8 60.2 60.8
21.0 21.0 21.0 26.4 26.5 26.5 33.2 33.3 33.3 41.9 42.0 42.0 47.8 47.9 47.9 59.6 59.7
2.0 2.6 3.2 2.3 2.6 3.2 2.6 3.2 4.0 2.6 3.2 4.0 2.9 3.2 4.0 2.9 3.2
0.947 1.21 1.44 1.38 1.56 1.87 1.98 2.41 2.93 2.54 3.10 3.79 3.23 3.56 4.37 4.08 5.03
1056 826 694 725 641 535 505 415 341 394 323 264 310 281 229 245 199
20
L M H
25
L M H
32
L M H
40
L M H
50
L M
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H 65 L M H 80 L M H 100 L M H 125 M H
60.8 76.0 76.6 76.6 88.7 89.5 89.5 113.9 115.0 115.0 140.8 140.8
59.7 75.2 75.3 75.3 87.9 88.0 88.0 113.0 113.1 113.1 163.9 163.9
4.5 3.2 3.6 4.5 3.2 4.0 4.8 3.6 4.5 5.4 4.8 5.4
6.19 5.71 6.42 7.93 6.72 8.36 9.90 9.75 12.2 14.5 15.9 21.9
6.26 5.83 6.54 8.05 6.89 8.53 10.1 10.0 12.5 14.5 16.4 18.4
150
M H
166.5 166.5
163.9 163.9
4.8 5.4
18.9 21.3
19.5 21.9
53 47
51 46
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Dimension and nominal mass of steel tubes-light , medium & heavy conforming to IS :1239 Large diameter pipes to specifications IS3589:2001 Tubes for water, Gas, and sewage extracts from IS: 3589
Specification
IS:3589
Fe330
0.17
0.055
0.055
330
Specification
Test
Hydrostatic test MPa 5 Flattening test No opening shall occur by fracture in the weld until the distance between the plates <75%of OD. For further
Permissible variations
Outside diameter (+,-) o.75% Thickness Straightness
(+,-) 10%
IS:3589
Dimensions and nominal mass of steel Tubes-preferred sizes Nominal Bore (mm) Outside diameter (mm) 200 200 219.1 219.1 4.35 5.00 23.04 26.40 43.40 37.88 Thickness (mm) Mass of tube (kg/mtr) Mass of tube (meter/ton)
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OD= outside diameter in mm, T = thickness in mm ; Abbreviation : Mpa=megapascal = N/Sq.mm, N=newton=kg.m/sq.second, s=second , t= thickness , D= diameter, Uti= up to and including , YP=specified minimum yield strenght(psi), P= test pressure for plane end pipe,YS = yield strenght,TS=tensile strenght, OD= outside diameter ,NB= nominal bore ,L light series , M = medium series , H =heavy series
MANUFACTURING TECHNOLOGY
(1)The Tata Group has been a pioneer in adopting the most modern, state-of-the-art technologies for its businesses. (2)The Standard Tubes Plant for Tata Pipes and Tata Structura boasts of high class facilities in tube making, with technology from OTO Mills (Italy), Kusakabe (Japan) and MAIR Research (Italy). (3)The Precision Tubes plant has added a new 4" mill from OTO Mills (Italy) to its existing 2" and 3" mills, thereby extending the Precision Tubes range to 114.3 Outer diameter and 6 mm thickness, with a combined capacity of 90000 tonnes per annum. The recently set up hydroforming mill from Schuler Germany, has a capacity of 3500 tonnes. (4)The Tata Steel Tubes Division uses HFIW (High Frequency Induction Welding) mills to manufacture its tubes. It has an ERP in place to control the business, which seamlessly integrates the key functional units within the SBU.
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MANUFACTURING PROCESS
Commercial tubes are manufactured by the high frequency induction welding process which commonly known as the HFIW process. The current manufacturing range extends from 12.7mm to 76.2mm OD. The thickness range is from 0.6mmto 4.06mm. The process entails forming of hot rolled steel strip into tubular shape and welding the edges under pressure, using induction heating. Since forming takes place at ambient temperature using cold rolled strip, a very close control on dimensions and surface finish of the tubes is possible. Pre-treated hot rolled strip, subsequently cold rolled to close tolerances, is the feed-stock for the manufacture of precision ERW tubes. In the 3-inch HFIW mill, the hot rolled strips are leveled and the end cuts square to enable end to end welding of coils to form endless lengths of strips for maintaining the continuity of the mill. The strip edges are then trimmed to ensure cleanest possible surface for welding. The mill proper consists of series of forming rolls which bend the strip progressively into tubular form by centre forming with abutting edges. The process of tube making in the 3 inch Commercial tube mill, through quite similar to that of the old mill, incorporates the latest technology. The superior edge forming technique employed here has made it possible o roll tubes with thickness/diameter ratio ranging from 1.6to10%.it has a state-of-the-art automatic weld-temperature controller, which ensures complete consistency in the weld quality irrespective of any minor variations in the mill speed, strip thickness etc. its automatic high speed cut-off machine is designed to cut tubes of at speeds of 100 meters/minute. The entire manufacturing process of tata pipes take place in commercial tube mill.
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PROJECT CHARTER
BUSINESS CASE: Undertaking this project would benefit the organization in following ways: 1. In estimating the current market share and finding out new business opportunities. 2. In identifying the problematic areas to be worked upon to maintain or increase the market share & brand equity. 3. It would also help in detecting the strengths and weaknesses of the competitors and provide knowledge about their aggressive marketing strategies. PROJECT: To find the market potential of Tata pipes in Jharkhand. GOALS/ OBJECTIVES: 1: Find out the share of commercial steel and PVC pipes in commercial pipe market. 2: Identify the possible threat of substitution to commercial steel pipes from commercial PVC pipes. 3:Find out the market share of three categories of commercial steel pipes (light, medium & heavy); market share of different sizes of commercial steel pipes in the above three categories; their percentage consumption in three segments (plumbing, irrigation & process). 4: Find out the market share of major companies in steel pipe segment for the financial year 2009-10;
12 February, 2012
identify the market leader. 5: Find out the market share of major companies in PVC pipe segment and identify the market leader. 6: Find out if TATA PIPES has risk of loosing its market share to the competitor in the steel pipe segment. 7: Find out all the possible factors affecting sales; identify the areas that may pose a potential risk for TATA PIPES to lose its market to the competitors. 8: SWOT analysis of TATA pipes. 9: Give due recommendations. 10: Suggest market opportunities, if there are any.
OPERATIONAL DEFINITION: 1 2 3 4 5 6 7 8 9 Observation Priliminary data gathering Problem definition Theoretical framework Generation of hypothesis Scientific research design Data collection Broad area of research interest identified Interviewing & literature survey Research problem should be delineated Variables should be clearly identified. Hypothesis development Population & sample should be defined. Preparing questionnaire & conducting survey
Data analysis, interpretation &deduction Hypothesis substantiation Recommendation. Suggestion on findings Summarizing the work done in a report
10 Report writing.
PROJECT SCOPE: 5 cities of Jharkhand (Jamshedpur, Ranchi, Bokaro, Dhanbad, Hazaribaag); 10 dealers in each city.
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MILESTONES: 05th dec 09st dec 10th dec 15th dec 16th dec 19st dec
th th
Observation Preliminary data gathering by literature review. Problem definition, theoretical framework & generation of hypothesis.
20 dec 05 jan
Data collection: 06th jan 10th jan 11th jan 14th jan 15th jan 20st jan 21st jan 25th jan 26 jan 31 jan 1st feb 5th feb 6th feb 10th feb 12th February ROLES AND RESPONSIBILITIES: Names of students Amit sharma, Amit singh, Brajesh Amit sharma, Amit singh, Brajesh Responsibility Observation to generation of hypothesis. Scientific research design & questionnaire preparation. Amit sharma, Amit singh, Brajesh Amit sharma, Amit singh, Brajesh Amit sharma, Amit singh, Brajesh Amit sharma, Amit singh, Brajesh Amit sharma, Amit singh, Brajesh To conduct survey in Jamshedpur Conduct survey in Ranchi. Conduct survey in Bokaro. Conduct survey in Dhanbad & Hazaribaag Data analysis to report writing & presentation.
th th
Survey in Jamshedpur Survey in Ranchi Survey in Bokaro Survey in Dhanbad Survey in Hazaribaag Data analysis and interpretation; hypothesis substantiation & recommendation. Report writing Report presentation.
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STEPS FOLLOWED ACCORDING TO THE OPERATIONAL DEFINITION: (1) OBSERVATION: there exists certain factors that may affect the market potential of Tata pipes in Jharkhand. (2) LITERATURE REVIEW: Similar works done before, were consulted. They to avoid exploratory research, as the problematic area was already identified. Example: Project -To find the market potential of standard tubes in Jharkhand; prepared by Naushad Ali, PGDM student, Ranchi University. helped us
(3) PROBLEM DEFINITION: Tata pipes have the risk of loosing market share to its strongest competitor in Jharkhand.
(4) THEORITICAL FRAMEWORK: TYPE OF VARIABLE 1 Dependent variable (x) NAME Annual sales EXPLAINATION The major problem faced by TATA PIPES is its dipping sales; resulting in lose of market share. 2 Independent variable (y) price Price directly affects sales.
(1)profit margin & incentive plans for dealers (2) availability of demanded goods (3) time of delivery
They have a moderating effect in the sales and price directional relationship.
(5)HYPOTHESIS DEVELOPMENT: Sales of the product decreases with the increase in its price
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RESEARCH METHODOLOGY
POPULATION all commercial pipe dealers in Jharkhand POPULATION SIZE undefined SAMPLE commercial pipe dealers in 5 cities of Jharkhand (Jamshedpur, ranchi, dhanbad, bokaro & hazaribaag.); 20 dealers surveyed in each city. SAMPLE SIZE 100 SAMPLING METHOD convenience sampling TESTS THAT CAN BE USED IN ANALYZING DATA: HYPOTHESIS TESTING; BY USING CORRELATION AND REGRESSION.
DATA COLLECTION
PRIMARY DATA it was collected through sample survey by filling up questionnaires.
SECONDARY DATA - Secondary data was mainly collected from Internet. Data has been extracted from the official website of Tata Steel (www.tatasteel.com).
STRUCTURED INTERVIEW was done by letting the elements of our sample, fill the exact details asked in the questionnaire
UNSTRUCTURED INTERVIEW was conducted in places where questions in the questionnaire needed to be modified
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LIMITATIONS
Since we followed convenience sampling method, our study was restricted to certain specific cities of Jharkhand which may not present the exact market scenario but only give an estimate. Some of the respondents were unwilling to divulge their details as required for the research. So, we had to switch over to unstructured interviews which gave us a general information and not the exact values. Sampling errors might have crept in and attempt is made to minimize them. Considering the mammoth size of the market the sample size was probably inadequate as converting to other sampling methods, would have required us to visit places most of which fall in the naxalite infected zones, at geographical disparate location, making them unsafe for the survey. Since the topic was very vast and difficult it was not possible to touch each and every aspect of the topic in a short time period.
QUESTIONNAIRE DESIGN
EXPLORATORY RESEARCH: The main problem area was already identified through observation, focus group interviews and literature review. Therefore, there was no need of conducting any kind of exploratory research. DESCRIPTIVE RESEARCH: We got the dependent, independent & moderating variables through literature review; so our main aim was to find the characteristics of those variables. This was done by conducting descriptive research through targeted questions such as: what, when , where etc, about the variables. CORRELATIONAL STUDY: In order to prove the main hypothesis: increase in price of a product leads to the decrease in its sales, & the effect of moderating variables on the above relationship; we conducted correlational study to correlate the variables. SEMANTIC DIFFERENTIAL & LIKERT SCALING TECHNIQUES; DICHOTOMOUS & DOUBLE BARRELED QUESTIONS ARE USED.
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SAMPLE QUESTIONNAIRE
A STUDY TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JHARKHAND (We assure the secrecy of your information.) Name of the store Address Name of the dealer Contact number
(1)What products do you sell? (please tick) Steel pipes PVC pipes Both
(2)What is your annual sale of the following? Financial year 2008-09 2009-10 Steel pipes PVC pipes
(3) What are the annual demands of the following? GI pipes Black pipes PVC pipes
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(4)What is the percentage consumption of commercial steel pipes in the following segment? Plumbing irrigation process
(5)What is the percentage consumption of the following categories of commercial GI steel pipes in the given segments. light Plumbing Irrigation process Medium heavy
(6)What are the percentages upto which PVC pipes serve as the perfect substitute of commercial steel pipes in the following segments? plumbing irrigation process
(7)What are the percentage consumption of different categories of commercial steel pipes? light medium heavy
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(8)Which sizes (diameter in mm) of tubes do you deal with, in Commercial Steel pipes: GI ? (pls fill in the details as required). 15 L Annual sale(09-10) Application M Annual sale(09-10) Application H Annual sale(09-10) Application 20 25 32 40 50 65 80 100 125 150 Other sizes; pls specify
Steel pipes: BLACK 15 L Annual sale(09-10) Application 20 25 32 40 50 65 80 100 125 150 Any other; pls specify
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(9)Which brands do you sell? Also mention their annual sale. STEEL PIPES Tata pipes Annual sale (09-10) Annual sale (08-09) Jindal Bhansal Bhushan Surya RST Neezone local
PVC pipes paras finolex Tuff plast Annual sale(09-10) supreme gupta prince RST Bhansal Jindal local
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(10)Which brand would you prefer the most as a customer? (Please tick) Steel pipes Tata pipes Jindal Bhansal Bhushan Surya RST Neezone Others; specify
PVC pipes Finolex Tuff plast Gupta Supreme Prince Paras RST Bhansal Jindal Others; specify
Give ratings for your above chosen brand :(5-excellent,4-very good,3-good,2-average,1-poor)pricing Quality on time delivery demand value for money Steel pipes PVC pipes Advertise customer -ments feedback availability Othe -rs
STEEL PIPES: GI Tata pipes PVC PIPES Paras Prince RST Gupta Supreme Finolex Tuff Plast Bhansal Jindal Local Jindal Bhansal Bhushan RST Neezone local
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(12)Why do you recommend the above brand? (Please tick below) Quality Profit margin
(13) Do you think that high profit margin for retailers increase sales? Yes (
No ( )
(14)Do you have any complaints regarding tata pipes? (a) IF YES, then pls specify:
Yes ( )
No( )
Quality
On time delivery
poor
Improper communication
Price
availability
Others
(15)What was the sales target for last month, April 2010? ----------------
Yes (
No(
(i ) Then what were your actual sales? -------------------(ii ) why could you not achieve the target? (pls tick) Less demand Late delivery high price Low motivation due to less profit margin Public unawareness. Unavailability Of ordered goods Customer opting for other brands other
(b) IF YES, then, can you sell more than your target?
Yes ( )
No( )
(17)Do you think the price of Tata pipes affect its sales?
Yes ( )
No(
(18)Do you think TATA PIPES has a risk of loosing its market share?
Yes ( )
No( )
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IF YES, then why do you think so? (pls tick) unawareness of market demand rigid pricing policy poor longer dealers and retailers not benefitted Unavailability Others
(19)Which brand do you think is its strongest competitor? (In commercial steel pipe segment).
Jindal
Bhushan
Bhansal RST
Surya
Neezone
(20)Why do you think so? Give rating.(5-far better,4- better,3-at par,2-slightly poor,1-very poor)
Quality
Delivery time
Demand
customer feedback
profit margin
incentive plans
Othe -rs,
(21)Which promotional strategy/ strategies do you think would be the most effective in spreading awareness among customers about new products of Tata pipes?
T.V. commercial
Print commercial
Radio commercial
(22)What is your ROI per tube? STEEL PIPES: Tata pipes ___ , Jindal____ , Bansal____ , Bhushan___ , RST___ , Neezone___ , Local___ PVC PIPES: Paras ___ , Finolex___ , Prince___ , Supreme___ , Tuff Plast___ , Gupta___ , Bhansal___ , Jindal___ , Local___
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STEEL PIPE DEALERS 40% 50% PVC PIPE DEALERS BOTH STEEL & PVC PIPE DEALERS 10%
INTERPRETATION: 50% of the total number of commercial pipe dealers sell both steel and PVC pipes. Exclusive commercial ommercial steel pipe dealers are four times more in number than exclusive commercial l PVC pipe dealers.
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(2) Share of steel pipes and PVC pipes in commercial pipe market.
90% 80% 70% 60% 50% 40% 30% 30% 20% 10% 0% 23% steel pipes PVC pipes 77% 70%
2009-2010
2010-2011
INTERPRETATION: As per the financial year 2009-2010 : Steel pipes had 77% whereas PVC pipes covered 23% share of commercial pipe market. As per the financial year 2010-2011 : The market share of Steel pipes have decreased by 7% whereas the share of PVC pipes have increased by 7%. So, it can be said that, PVC pipe industry is a fast growing sector, steadily trying capturing the market of steel pipes; with a considerable growth of 7%.
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(3)Annual Annual demand of GI, BLACK (steel pipes) & PVC pipes in commercial pipe market.
GI steelpipes
PVC pipes
COMMENT: Galvanised pipes (GI pipes) have the highest annual demand of 50% ; Reasons: zinc nc coating for rust prevention PVC pipes serve as a perfect substitute of GI pipes, wit a demand of 30% ; Reasons: portability, easier fixation, durability, light weight, heat resistance resis and non rusting character. Black pipes have the lowest demand de of just 20%; 0%; Reason : mainly due to rusting. rusting
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20%
INTERPRETATION INTERPRETATION: Commercial steel pipes are majorly used in plumbing (44%) and irrigation segment (36%). It has least application in process segment that include industrial
engineering, construction, automobile parts, cold storage, HVAC etc engineering, In process segment commercial steel pipes are majorly used in cold storage & HVAC puposes. So, they have the least percentage of usage (20%)
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(5)Percentage Percentage consumption of different catagories of commercial GI steel pipes in following segments. PLUMBING:
80% 70% 60% 50% 40% 30% 20% 10% 0% LIGHT 20%
70%
10%
MEDIUM
HEAVY
INTERPRETATION: medium category commercial GI pipes are prefered the most (specially from diameter 15mm 40mm). . 70% users use medium size pipes for their house plumbing. In case of some heavy duty plumbing purposes like public water supply system and high hig pressure water line heavy catagory pipes are ar used. Light catagory pipes are generally generally used in minor house plumbing, as curtain holders & in low pressure water supply lines. line
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IRRIGATION:
50% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% LIGHT MEDIUM HEAVY 20% 30%
INTERPRETATION:
In irrigation purpose medium type pipes are preferred the most. 50% of total GI pipes in
medium catagory are used in this segment
In long distance water supply and high pressure water supply heavy type of GI pipes are
used. In irrigation only 30% heavy type GI pipes are used. used
Only 20% light type GI pipes are used in personal ersonal irrigation and low pressure water
supply covering short distance.
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PROCESS:
40% 40% 35% 30% 25% 20% 15% 10% 5% 0% LIGHT MEDIUM HEAVY 25% 35%
COMMENT:
In process like cold storages, high air pressure line, ventilation line, air conditioning line
etc. normally heavy type pipes are used. 40% heavy types pipes are used in process purposes.
Comparatively in low pressure and in low duty process, medium and light type pipes are
used. Light type pipes are easy to bend, thats why light type pipes are used in that process where bending is required. For example :Automobiles parts.
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(6)Segments where the PVC pipes form perfect substitute of steel pipes.
80% 70% 60% 50% 40% Series1 30% 20% 10% 0% PLUMBING IRRIGATION PROCESS 17% 74% 68%
INTERPRETATION: PVC pipes are 74% substitutable in Plumbing, 68% in irrigation, 17% in process segment. Thus, steel pipe manufacturing companies face stiff competition from PVC pipes manufacturers in segments as, plumbing and irrigation, where PVC pipes are readily being used in place of steel pipes.
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JAMSHEDPUR
16 12
72
RANCHI
3 22 LIGHT MEDIUM HEAVY 75
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HAZARIBAGH
2
DHANBAD
4 13
83
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BOKARO
14 15
71
INTERPRETATION: Fom the graphs we can clearly see that in all the five cities the same trend of consumption is maintained. This is due to big domestic market, where medium pipes are primarily used for plumbing purposes. irrigation is also one of the main purposes for which medium steel pipes are used.
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(8)Percentage Percentage consumption of commercial commercial steel pipes in Jharkhand in categories: light, medium & heavy.
7.80%
19.20%
INTERPRETATION: Maximum pipes consumed are that of medium category (due to medium weight, lesser chances of breakage than light pipes, just pricing and numerous application. Medium pipes are also used as substitute for light pipes, thus increasing consumption). Consumption ion of light pipes are comparatively lower than that of medium ones, (due to their extremely light weight, greater chances of breakage and fewer application). Heavy pipes are the least consumed ones, (due to their extremely heavy weight and specific application in industries).
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(9)Percentage consumption of different diameters of commercial steel pipes in Jharkhand ; in following catagories:
LIGHT:
25% 20% 15% 10% 5% 0% 19% 22% 18% 13% 9% 5% 4% Series1 3% 3%
2%
2%
INTERPRETATION: 15mm 25mm are consumed the most; due to small size& less weight, they find many minor applications, as: curtain holders, railings etc Then after, the consumption decreases, due to lesser application.
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MEDIUM:
5% 4%
5% 4% 3%
Series1
INTERPRETATION: Medium steel pipes are mostly used for plumbing & irrigational purposes. For plumbing, 15mm 40mm sized tubes are mainly used. Tubes of higher sizes are used for purposes as irrigation, sewage pipes, water supply pipes etc.
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HEAVY:
14% 14% 12% 10% 8% 6% 4% 2% 0% 6% 5% 5% 4% Series1 10% 13% 12% 12% 10% 9%
INTERPRETATION: Due to extremely heavy weight, heavy steel pipes are used only on special purposes, where generally one time installation is required. Common applications are: steam & gas pipes, heavy water supply pipes, underground boring pipes etc.
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INTERPRETATION: Tata pipes is the market leader with the share of 30%. Jindal is the strongest competitor of Tata pipes in Jharkhand with a share of 20% of the market. Next comes the local steel pipe manufacturers, covering 13% of the market. Surya pipes are gradually sreading their market in the eastern belt, capturing 8% of the market. Surya pipes are in huge demand in northern India. Then comes, Bhushan, Bansal, RST & Neezone, which cover rest of the market.
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Prince 5.94% 22% 10% 14% 4% 5% Paras 18.50% Supreme RST Bansal 16.65% Jindal Gupta Tuff 2.49% 1.42% Finolex Local
INTERPRETATION: Finolex is the market leader in commercial PVC pipe segment with a share of 22%. Prince and supreme ar are the strongest competitors of Finolex inolex with a market share of 18.50% and 16.65% respectively. Tuff plast is also one of the big players in this segment with a market share of 14%
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TATA 5% 15% 70% 10% JINDAL BHANSAL BHUSHAN SURYA RST NOT BRAND CONSCIOUS
INTERPRETATION: Tata pipes is the most preferd brand by the customers; 70% of the customers go for tata pipes. Only 15% of the customers prefer Jindal pipes. 10% of the customers who are not brand conscious, go for any brand whichever is feasible to them at that particular time; it can be Tata pipes, , Jindal pipes or any other brand.
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supreme finolex 20% 10% 20% 10% tuff plast gupta prince paras 40% RST Bansal Jindal not brand conscious does not prefer pvc
INTERPRETATION: Prince is the most preferred eferred brand by the customers with preference of 40% Supreme stands the second in brand preference; preference 20%
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(13) Percentage risk of TATA pipes loosing market share to its competitor in
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RISK NO RISK Series1
INTERPRETATION: There is 80% risk that TATA PIPES may loose its market share to its strongest competitor, Jindal, in steel segment.
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6 5 4 3 2 1 0
INTERPRETATION: The key strength of tata pipes is its quality, demand & brand loyalty of customers. Areas that tata pipes should necessarily work upon:delivery time, availability of products, profit margin & incentive plan for dealers.
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JINDAL PIPES
6 5 4 3 2 1 0
INTERPRETATION: Key strengths of jindal are: on time delivery, pricing and availability. Area that should be worked upon is product promotion through advertisement & brand loyalty of customers.
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6 5 4 3 2 1 0
INTERPRETATION: Points where Jindal pipes score over Tata pipes: Product pricing Delivery time Value for money Product availability Profit margin for dealers Incentive plan
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FINOLEX PIPES:
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
COMMENT: Key strengths are quality, on time delivery, demand, availability and advertisement. The company should work on attractive incentive plans for dealers.
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PRINCE PIPES:
COMMENT: Key strengths are: quality, demand, value for money products, very good brand loyalty & customer feedback Area that should be worked upon is product promotion through advertisement.
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60%
COMMENT: 60% of the dealers are influenced by profit margin on the basis of which they recommend brands to their customers. Only 40% of the dealers dont go by the profit margin and recommend brands that deliver quality.
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(18) ) Promotional strategy that Tata pipes should use to make customers aware of its new products.
40% 35% 30% 25% 20% 15% 10% 5% 0%
Series1
INTERPRETATION: Effective ways for Tata pipes, to promote its new product is through T.V. commercials &
hoardings.
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PLUMBERS REVIEW
(Since Since plumbers were not comfortable answering the questionnaire, we had to conduct a focus group interview with 10 of them in Jamshedpur. An unstructured interview was held and the following information was obtained) obtained :
40%
60%
Series1
INTERPRETATION: Plumbers mostly recommend PVC pipes, mainly due to their light weight, heat resistant,
non rusting nature & easy installation.
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10%
TATA PIPES JINDAL PIPES SURYA PIPES RST NEEZONE BANSAL BHUSHAN 90% LOCAL
10% 30%
60%
LOCAL
INTERPRETATION:
Customers who want quality product are advised for Tata pipes. Price conscious customers, are advised for Jindal pipes.
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5%
TATA PIPES 20% JINDAL PIPES BANSAL BHUSHAN RST 15% SURYA NEEZONE
35%
10% 7% 8%
LOCAL
INTERPRETATION:
Due to its excellent quality, Tata pipes do not have to face any customer complaints. Whereas, its strongest competitor, Jindal pipes, have to face 5% customer complaints.
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INTERPRETATION:
70% of the plumbers recommendations are influenced by dealers & retailers. Only nly 30% of the plumbers give true advices.
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HYPOTHESIS SUBSTANTIATION
H0: Price of product and its sales have no relation. H1: Price and sales are correlated.
X axis = Variation in price as per increase in size. Y axis = Sales in thousands. COEFFICIENT OF CORRELATION (r) = - 0.888892814 COEFFICIENT OF DETERMINATION (r^2) = 0.7744 H0 = rejected H1 = accepted Thus, we conclude that, price of a product and its sales are almost negatively correlated; This is because of the effect of moderating factors like: availability, delivery time, profit margin & incentive plans for the dealers & brand loyalty of the customers. Purpose & application of different sizes of pipes also play a mojor role.
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WEAKNESS: Following are the issues that TATA pipes need to work upon. On time delivery. Avaibility. Pricing (to some extent).
OPPURTUNITY: New Product development: It should start manufacturing PVC pipes so as to cut down on competition from this sector and also increase its product line so as not to lose any market share.
THREAT : JINDAL PIPES due to their growing Market Share and its growing popularity across the dealers, plumbers and the customers.(in steel pipe segment). PVC PIPES due to their growing market potential as they are easily substituted in place of steel pipes.
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PRODUCT RANGE:
1. Black & Galvanized Steel Tubes Conforming to IS:1239(i) Equivalent to BS:1387 & Structural Tubes Conforming to IS:1161 2. ERW Pipes for water & sewage conforming to IS:3589 & water well casing conforming to IS:4270 3. ERW Line Pipes Conforming to API 5L, IS:1978, IS:1979 and ASTM A-53 4. ERW Boiler, Super Heater, Heat Exchanger, Condenser & Air Heater Tubes & Pipes 5. Square and Rectangular Hollow Section
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SWOT ANALYSIS
STRENGTHS: Product price lesser than the market leader, Tata pipes. good profit margins to the dealers. Short delivery time Good product availability More flexible as per market demand.
WEAKNESSES: Does not have strong brand image. Lacks behind from Tata pipes, in providing utmost quality. Ineffective product promotion.
OPPRTUNITIES: Jindal Pipes can well exploit the sense of dissatisfaction prevalent among the retailers for Tata pipes, to turn the tide in their favour.
THREATS: The ad campaigns, innovation, brand image and more transparent distribution network of other pipe companies pose major threat. Quality products of Tata pipes is also a big threat.
THREAT OF SUBSTITUTION IDENTIFIED: PVC PIPE SEGMENT Points where they score over commercial steel pipes:
Light weight Easy fixation Portability Heat & rust resistant
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RECOMMENDATIONS
TATA TUBES SHOULD DECREASE ITS LEAD TIME (DELIVERY TIME) DEALERS WOULD NOT HAVE AN EXCUSE TO SELL OTHER BRANDS. CUSTOMERS WOULD NOT SWITCH OVER TO OTHER BRANDS. THE BRAND IMAGE WOULD NOT GET HAMPERED.
AS WE KNOW THAT, DEMAND FOR TATA PIPES IS OVERWHELMING THROUGHOUT THE COUNTRY AND ABROAD, ITS QUITE GENUINE ON THE PART OF COMPANY THAT IT IS NOT ABLE TO PROVIDE DELIVERY IN TIME. BUT, THERE SHOULD BE ALTERNATIVE FOR MEETING THE EXTRA DEMAND.
TATA TUBES SHOULD EXPAND ITS PRODUCTION CAPACITY AND ALSO TRY FOR BETTER STOCKING OPTIONS.
TATA TUBES SHOULD EMPHASIZE ON BETTER LEARNING OF DEMAND FORECASTS, SEASONAL PATTERNS AND TRENDS. THIS WOULD HELP IN KNOWING ABOUT THE VOLATALITY OF THE MARKET . IT WOULD ALSO ENABLE THE COMPANY TO BE READY FOR ANY KIND OF UNEXPECTED DEMAND. IT SHALL NOT HAVE TO LOSE ITS MARKET SHARE TO THE COMPETITORS.
TATA PIPES SHOULD ALSO CONSIDER THEIR PRICING STRATEGIES, MAJORITY OF THE DEALERS AND CUSTOMERS HAD SIMIMAR COMPLAINTS OF HIGH PRODUCT PRICES.
12 February, 2012
WE ACKNOWLEDGE THE FACT THAT, TATA PIPES CANNOT REDUCE THEIR PRICES BECAUSE OF ITS BRAND IMAGE AND THE QUALITY THEY PROVIDE.
BUT AT THE SAME TIME, BETTER INCENTIVE PLANS TO THE DEALERS WOULD ALSO ENCOURAGE THEM TO EXTEND AN ADDED EFFORT WHICH WOULD RESULT IN FURTHER STRONG HOLD OF THE COMPANY.
THESE INCENTIVE PLANS ARE THE SOLE REASON WITH THE HELP OF WHICH THE COMPETITORS ARE TRYING TO CATCH UP THE MARKET SHARE.
THUS BETTER & COMPETITIVE INCENTIVE PLANS FROM THE END OF TATA PIPES WOULD ENSURE MAINTAINING AND FURTHER GROWTH OF THEIR MARKET SHARE.
PVC PIPES ARE GROWING IN STATURE YEAR BY YEAR AND HAVE BECOME A MAJOR CHOICE OF THE CUSTOMERS BECAUSE OF THEIR FEATURES SUCH AS LIGHT WEIGHT PORTABILITY HEAT RESISTANCE EASY FIXATION DURABILTY
I RECOMMEND TATA TUBES, TO GET INTO THE MANUFACTURING OF PVC PIPES AND LAUNCH THEM UNDER THE SAME BRAND NAME OF TATA PIPES. THIS MOVE WILL HELP TATAS TO DOMINATE THE PVC SEGMENT
TOO, DUE TO HIGH BRAND VALUE OF TATA PIPES. THIS WILL ALSO ENSURE THAT TATA PIPES WILL NOT LOSE BUSINESS JUST BECAUSE IT DOES NOT HAVE A PRODUCT IN THE PVC SECTOR.
12 February, 2012
BIBLIOGRAPHY
Marketing Research David Luck & Ronalds Rubin
Annual report Tubes Division, TATA STEEL Tata search- A journal for tech advances Technical training division study guide for TISCO works
Websites
12 February, 2012
12 February, 2012