Marketing Study of HEC

INTRODUCTION
ABOUT PROJECT AND ITS NEED
A variety of operations keep businesses, especially large corporations, running efficiently and effectively. Common business operation divisions include (1) production, (2) marketing, (3) finance, and (4) human resource management.

PRODUCTION Production includes those activities involved in conceptualizing, designing, and creating products and services. In recent years there have been dramatic changes in the way goods are produced. Today, computers help monitor, control, and even perform work. Flexible, high-tech machines can do in minutes what it used to take people hours to accomplish. Another important development has been the trend toward just-in-time inventory. The word inventory refers to the amount of goods a business keeps available for wholesale or retail. In just-in-time inventory, the firm stocks only what it needs for the next day or two. Many businesses rely on fast, global computer communications to allow them to respond quickly to changes in consumer demand. Inventories are thus minimized and businesses can invest more in product research, development, and marketing. MARKETING Marketing is the process of identifying the goods and services that consumers need and want and providing those goods and services at the right price, place, and time. Businesses develop marketing strategies by conducting research to determine what products and services potential customers think they would like to be able to purchase. Firms also promote their products and services through such techniques as advertising and personalized sales, which serve to inform potential customers and motivate them to purchase. Firms that market products for which there are always some demand. So in our project report we really emphasis on manufacture, production, financial aspects of HEC Ranchi to make our project more realistic and authentic.
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Marketing Study of HEC SCOPE OF PROJECT

Gathering information and theoretical knowledge is a part of study. It becomes complete when added with practical knowledge as the noted truth comes to sight. Hence one becomes more efficient and effective when a flavor of practical out look is added to the bosky mind. As the study has got wide relevance is formulating valid information about the HEC. The authentic project reports helps us in several purposes Goal setting To get the profitability of the company To implement the rule and regulation in the company To overcome the risks in the company To understand the companys marketing strategy To estimates the financial budgeting of the company and many more

ABOUT HEAVY ENGINEERING CORPORATION

Heavy Engineering Corporation or "HEC" is a Public Sector Undertaking ("PSU") in India. It is one of India's oldest and largest engineering companies. It is the biggest industry of its kind in Asia. HEC is under the Ministry of Heavy Industries, Govt. of India. Established in the year 1958 as the largest integrated engineering industrial complex in India with excellent design, Engineering, and manufacturing base. The company is engaged in the manufacture and supply of capital equipments, machine tools and spares needed for the core sector industries. Location HEC is situated near Hatia, in Ranchi, Jharkhand. Plants It consists of four units:
1. Heavy Machine Building Plant (HMBP). Set up in Collaboration

with erstwhile USSR Design & Manufactures Equipment and Spares for different Sectors. erstwhile CSSR (M/s SKODA)

1. Heavy Machine Tools Plant (HMTP).Set up in Collaboration with

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Design & Manufactures CNC & Conventional machine tools in medium & heavier ranges. Manufactures special purpose railway machine tools and reconditions old machine tools.
1. Foundry Forge Plant (FFP) - Set up in collaboration with erstwhile

CSSR (M/s SKODA) Manufactures heavy castings & forgings and rolls for hot & cold rolling mills for steel
1. Project Division - HEC Executes various projects in the core sectors

from concept to commissioning in different sectors like mining, power, steel plants, cement engineering etc.

COMPANY PROFILE
INTRODUCTION HEC was incorporated on 31.12.1958 under the Companies Act, 1956. The company started production in the year 1964. It was established under the Ministry of Industry with the primary objective of achieving self sufficiency and self reliance in the field of design and manufacture of equipment and machinery for core sector, especially steel industries. It was visualized at that time that one steel plant of one million ton capacity will be added every year in India, which however, did not materialize. Consequently the demand for steel making machinery was never as high as it was expected. Hence HEC diversified its area of operation in other core sectors like mining, railways, defence etc. Currently, the company is engaged in the manufacture and supply of capital equipment, machine tools and spares needed for the core sector industries namely; steel, coal, cement, power, defence, aluminum, ship building and railways etc. The head office and three plants of the company are situated in Ranchi, the capital of the newly formed state Jharkhand. The company has its offices in New Delhi and Kolkata.

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UNITS: Heavy Building (HMBP) : Machine Plant The Plant has a fenced area of 5,70,000 sq.m and a floor area of nearly 2,00,000 sq.m. It is well equipped with sophisticated machine tools and handling equipments to undertake manufacture of heavy machinery and equipment of top quality. It is engaged in design and manufacture of equipments and components for Steel Plant, Mining, Mineral Processing, Crushers, Material Handling, Cranes, Power, Cement, Aluminium, Space Research, Nuclear Power etc.. It is the largest foundry and forging complex in India and one of the largest of its kind in the world. The area of the Plant is 13,16,930 sq.m accommodating 76,000 tonnes of installed machinery to cope up with the various operations effectively. This Plant is the manufacturer of heavy castings and forgings for various HEC make equipments and related to Steel plant, Defence, Power, Nuclear energy etc.. Manufacturer of Forged Rolls for Steel Plants, Crank Shafts for Railway Loco etc. Set up in collaboration with M/s Skodaexport Czechoslovakia, HMTP is the most modern and sophisticated of its kind in the country which produces machine tools in heavier ranges. The Plant covers an area of over 2,13,500 sq.m. It designs and manufactures medium & heavy duty CNC and conventional Machine Tools for Railways, Defense, Ordnance factories, HAL, Space and other strategic sectors. Design, Engineering and execution of Turnkey Projects related to Bulk Material handling, Steel Plant projects, Cement Plant and other sectors.

Foundry Plant (FFP):

Forge

HEAVY TOOLS (HMTP):

MACHINE PLANT

Projects Division

Quality Policy: To achieve and maintain a leading position as supplies of reliable quality products,

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systems and services to meet customer needs and expectations Technology and associates: Over the years HEC absorbed and assimilated technology from various internationally renowned organizations: GM/s HITACHI ( Japan ) M/s RANSOM & RAPIER (UK) M/s BUCYRUS-ERIE (USA) Forged RollTechnology Walking DRAGLINE for open cast mines 10 Cu.M. Excavators for open cast mines

M/s O&K ORENSTRIN & KOPPELAG Hydraulic Excavators for coal mines (Germany) M/s GHH STERKRADE (Germany) M/s DEMAG (Germany) Mine Winders & Vertical Transportation System

LAUCHHAMMER Stackers, Reclaimers etc.

M/s SMS SCHLOEMANN (Germany)

SIEMAG Continuous Casting Plants

M/s Schelke Eisenhutte New generation Coke Oven Machines Maschinefabrick GMBH, Germany M/s Benxi Iron & Steel Group Crane Torpedo Ladle Cars Works Ltd., (China) M/s SKODA, CKD BLANSKO, TOS of CSSR M/s HERKULES (Germany) M/s HEGENSCHEIDT (Germany) M/s BOEHRINGER (Germany) M/s O-M (Japan)

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M/s CREUSOT LOIRE (France) M/s NATIONAL FORGE COMPANY (USA)

CAPITAL BASE:
The authorised capital of the company is Rs. 1000 crores and the paidup capital is Rs.606.08 crores.

EXISTING PLANT LAYOUT,MANUFACTURING PROCESS, FACILITIES, PRODUCTS AND PAST COLLABORATIONS:

More than 7000 acres of land had been conveyed to the company at the time of its incorporation by Govt. of Bihar for its use. The company has built plants, administrative office and township on this land. The company was set up with the capability to manufacture steel plant equipment that can enhance the steel producing capacity by one million tones per annum. The company has three manufacturing units and one project and consultancy division viz. (i) Foundry Forge Plant (FFP) (ii) Heavy Machine Building Plant (HMBP) (iii) Heavy Machine Tool Plant (HMTP) (iv) Project Division (TKP)

PLANT LAYOUT
The plant layout of HEC is mainly Functional layout.In this layout , the main idea is to arrange or gather machines or equipments of the same function into one group or department.The advantages of this layout arae as follows:1. Minimize material handling costs 2. Utilize space efficiently 3. Utilize labor efficiently 4. Eliminate bottlenecks 5. Facilitate communication and interaction between workers, workers and supervisors 6. Eliminate waste or redundant material
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7. Promote product and service and quality 8. Provide a visual control of activities

MANUFACTURING PROCESS:
The manufacturing process deployed in HEC is mainly manufacturing. The processes deployed in discrete manufacturing continuous in nature. Each process can be individually started or and can be run at a varying production rates. The final product produced out of single of multiple inputs. discrete are not stopped may be

This is different from Process manufacturing like production of paper or petroleum refining, where the end product is obtained by a continuous process or a set of continuous processes. Discrete manufacturing process allows for temporary stoppage of work in one area without affecting the entire unit, where as continuous process manufacturing requires that entire production process be stopped. The advantages of discrete manufacturing are as follows: work is generally of a high quality a high level of customisation is possible to meet the customer's exact requirements significant flexibility is possible workers can be easily motivated due to the skilled nature of the work they are performing

The installed capacity of the plant units is as follows:(i) FFP: 174540 T of casting and forgings (ii) HMBP: 105000 T of equipment and structures (iii) HMTP: 970 nos. of machine tools. Details of facilities available, the products and the past collaborators of the plant are as follows:-

FOUNDRY FORGE PLANT (FFP)

The plant was established in collaboration with SKODAEXPORT of erstwhile CSSR and equipped with facilities for melting, heavy and medium casting, all types of forging and machining. Some of the major facilities installed in the plant are as follows:7| Page

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a. Arc furnaces of capacity 5t, 10t, 20t and 60t. b. Vacuum arc degassing furnace of capacity 60t. c. Induction furnaces of capacity 0.5 t, 2t and 3t. d. Hydraulic forge presses of capacity 6000t, 2650t, 1650t and 1000t. e. 3t hammer, a series of small free forgings hammers and die forging presses. f. Various ranges of machine tools including one lathe of 53m bed length. g. Low frequency induction hardening machine for CRM rolls (25 mm depth). h. Centrifugal casting facility for slender bushes (350 mm dia and 1m long). i. Horizontal and vertical mist quenching equipment for quality heat treatment, producer gas & oxygen plant The plant has also acquired technical know-how from the following agencies:a. M/s Hitachi of Japan for updating forgings and forged roll technology. b. M/s National Forge of USA for nitriding and machining of diesel locomotive crankshafts. It manufacturers the following products:a. Medium and heavy castings/forgings for coal, defence, railway power

and other engineering sector - iron castings weighing upto 65 T pc.wt., steel castings weighing upto 70 T pc.wt., non-ferrous castings weighing upto 4 T pc.wt. and forgings weighing upto 50 T pc.wt.

b. Rolls for hot rolling mill and cold rolling mill of steel plant. c. Crankshafts for railways. d. Rolling mills, slabbing mills, blooming mills, SG iron rolls etc. In addition this plant has also developed the following critical products:a. Armour plate forging for defence b. Turret castings for defence. c. Propeller shafts for Navy.

HEAVY MACHINE BUILDING PLANT (HMBP)

The plant was established in collaboration with PROMASEXPORT of erstwhile USSR and equipped with facilities for machining, gear cutting, heavy structurals and heat treatment. The plant comprises the following shops:a. Heavy Machine Shop
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b. Medium and small machine shop c. Reduction gear shop d. Block of coke oven shop e. Heat treatment and forging shop f. Tools shop g. Repair shop h. Structural fabrication shop. Some of the major facilities installed in the plant are as follows:a. Giant lathe (SOB:4 m, CD:20m) b. CNC vertical turning and boring machine (job dia, 14m, job weight 250t) c. CNC plano milling machine (job size 3.5mx7mx2.5m,job weight 120t). d. CNC Horizontal boring machine (200 mm spindle dia x 18 m col.travel) e. CNC flame cutting machine (Max job size 25mx6.2m upto 500 mm thick). f. Gear cutting machine (max job dia 5m, max. module 40mm hobbing). The plant has also acquired technical know-how from the following agencies:a. M/s Schloemann Siemag (SMS) of Germany for Continuous Casting Plants. b. M/s Lurgi GmbH of Germany for Sinter Plants. c. M/s MANN of Germany for special purpose cranes. d. M/s Bucyrus-erie of USA for 10 cu.m. excavators. e. M/s Ransom and Rapier of UK for walking draglines. f. M/s GHH Sterkrade of Germany for Mine winders and vertical transportation system. g. M/s Orenstein and Koppel (O&K) AG of Germany for Hydraulic excavators. The plant designs and manufactures equipment and spares for the following:a. Steel plants. b. Coal/mining equipment viz. 5 and 10 cu.m. rope shovels, hydraulic shovels, draglines, crushers and grinders, material handling equipment etc. c. Aluminium, power, defence, space research and atomic energy etc.
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It has also a design and technology wing manned with trained and experienced engineers. Some of the major equipment successfully designed by HMBP are as follows:-

Steel Plant Equipment a. Sinter plant equipment (75 sq.m. to 312 sq.m.) b. Coke Oven batteries (4.3 m to 7 m tall ovens). c. Blast furnace (1033 cu.m. to 3200 cu.M) d. Steel melting shop equipment (100t to 300t LD converter) e. Continuous casting plant (for slabs/blooms/billets) f. Rolling mill equipment including 3600 mm plate mill g. EOT crane (up to 450t capacity). Mining Equipment a. Draglines upto 24 cu.m. Capacity and 96m boom.
b. Electric rope shovels (5/10 cu.m. capacity).

c. Primary gyratory, secondary and tertiary cone crushers and double toggle jaw crushers of various sizes. d. Mine winders

HEAVY MACHINE TOOLS PLANT (HMTP)

The plant was established in collaboration with SKODA of erstwhile, CSSR and equipped with facilities for manufacturing heavy machine tools-both conventional and CNC version. It has also design and R&D wing manned with trained and experienced engineers. The plant is equipped with CNC machine tools, conventional machine tools, induction hardening equipment etc. Subsequently, the plant has also acquired technical know-how from the following agencies:a. M/s HERCULES of Germany for roll grinding machines b. M/s HEGENSCHEIDT of Germany for railway lathes c. M/s O-M of Japan for vertical borers. d. M/s BOEHRINGER of Germany for plano-milling machines The plant designs and manufactures equipment and spares for the following:a. Special purpose railway machine tools
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b. CNC & Conventional machine tools in the medium and heavy range for

core and defence sectors like vertical turning and boring machine, roll turning lathe, roll grinding machine, deep hole boring machine, planer, plano-milling machine etc.

It also has also a fully equipped development wing and design section with CAD center, prototype assembling and testing facilities and manned with qualified and experienced engineers. HMTP has successfully indigenised the design of machine tools,both conventional and CNC version. For movement of the materials within the plant and upto Hatia railway yard (nearest railway station) HEC has its siding of approx. 100 kms. of railway lines served by its own diesel engines (8 nos.) and wagons (125 nos.). The company has power generating facilities consisting of 4 nos. of DG sets each of 2.8 MW in FFP and 1 no of 3.5 MW of DG set in HMBP as standby arrangement.

TURN-KEY PROJECT EXECUTION

HEC Executes various projects in the core sectors from concept to commissioning in different sectors like mining, power, steel plants, cement engineering etc. Fields of specialization: Material Handling Plant Coal Handling Plants Coal Washeries Low Temperature Carbonisation Plant and Gas Treatment Plants Tar distillation Plant & Processing Plants Direct Reduction Plants from Iron Ore Sinter Plants Continuous Casting Plants for Billets, Slabs and Blooms B.O.F. & Gas cleaning Plant Lime Calcination Plants Rolling Mills
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Cement Plants. Special Focus:

Concept to Commissioning for Bulk material Handling and steel plant projects. Feasibility studies & Site selection Basic Engineering with Process Flow Sheets, Energy and Material Balance Detail Specification of Plant and Process Equipment Manufacturing, Erection, Testing & Commissioning of Plant & Equipment Some of the projects executed: Project & features Capacity Year of Completion 1984

Coal Handling Plant at 675 TPH PARICHHA Thermal Power Station (UPSEB), UPSEB Turnkey: Design to commissioning Wagon Tippler, Ring Granulator, Plough Feeder, Conveyor (1.6 Km) Civil, Structure, Electrics Jayant CHP, Northern Coal 1200 TPH Fields Ltd. Turnkey: Design to commissioning Gyratory Crusher, Apron Feeder, EOT Crane, Conveyor (1 Km) Civil, Structure, Electrics Dankuni Coal Complex, Coal 1000 TPH India Ltd. Turnkey: Design to commissioning Low Temperature Carbunisation
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1987

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Marketing Study of HEC

Complex including : Wagon Tripler, Crusher, Screens, Conveyor (2.5 Km) Civil, Structure, Electrics Upto Lime Storage & Screening 1500 TPH Plant, Bokaro Steel Plant Turnkey: Design to commissioning Screens, Conveyors Civil, Structure, Electrics Coal Preparation Plant, 650 TPH Kedla, Central Coalfiels Ltd. Consultancy servives for project & detailed engineering, construction, erection & commissioning of washery including CHP Conveyors (4 Km) Raw Material Handling 1200 TPH System (Phase-II), Rourkela Steel Plant Turnkey: Design to commissioning Wagon Tripler, Wagon Pusher, Apron Feeder, Cone & Roll Crushers, Inspectors, Rod Mills, Weigh feeders, Vibro Feeders & Screen, Conveyor (7 Km) Civil, Structure, Electrics & PLC system Up to Raw Material Handling 1000 TPH System, NINL Turnkey: Design to commissioning Hammer Crusher, Feeders & screen, Conveyor (10.5 Km) Up to 1996

2001

1996

2001

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Second Launching ISRO 400 / 60 EOT Crane, 200 / 30 T EOT Crane 10T Tower Crane, FCVRP, SD Clean Room Mobile Launching Pad Pad, 2006

Coal Handling Plant (Ph-II), Nigahi, Northern Coal Fields Ltd. Planning, Design, Engineering, Construction, Fabrication, Supply, Erection, Trial run and Commissioning on Turnkey basis. Major Items : Gyratory Crusher, Apron Feeder, EOT Crane, complete utilities etc. Conveyor system of length approx. 4.0 km 3000T Silo with rapid wagon loading system of 5500 TPH.

2010

VISION To be a major Heavy Engineering Company in India providing quality products and services to the Steel, Mining, Coal, Railways and other Strategic Sectors.

MISSION 1. To acquire and maintain leading position as suppliers of quality equipment, spares, systems & services for the Steel, Mining, Coal, Railways and other Strategic Sectors. 2. To expand business into allied areas and other priority sectors of the economy. OBJECTIVES 1. GROWTH
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To attain substantial jump in production and bring about sustained growth to attain production level of Rs.3000 crores by 2011-12. 2. PROFITABILITY To provide reasonable & adequate return on capital employed, primarily through improvement in operational efficiency, capacity utilization & productivity, in order to generate adequate internal resources to finance the companys growth. 3. HUMAN RESOURCE PLANNING & DEVELOPMENT To enable each employee to achieve his optimum potential, improve his capabilities, perceive his role and responsibilities and participate in and contribute to the growth and success of the company. To continuously invest in human resources and be alive to their needs, hopes and aspirations. 4. CUSTOMER SATISFACTION To build a high degree of customer confidence by providing increased value for his money through improved product quality, delivery, performance and customer service. 5. MODERNISATION To upgrade and modernize plants and equipment with the aim of increasing availability of machines/equipment and removing bottlenecks. 6. TECHNOLOGY To achieve technological excellence in operation by development of indigenous technology and efficient absorption and adaptation of imported technologies to suit business needs and priorities with a view to providing a competitive advantage to the company.

MARKETING OF HEC
The Marketing of HEC is Industrial marketing (or business to business marketing) is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials. The main features of Industrial marketing are as follows:-

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Marketing is one-to-one in nature. It is relatively easy for the seller to identify a prospective customer and build a face-to-face relationship. Highly professional and trained people in buying processes are involved. In many cases, two or three decision makers must approve a purchase plan. Often the buying or selling process is complex, and includes many stages (for example, request for proposal, request for tender, selection process, awarding of tender, contract negotiations, and signing of final contract). Selling activities involve long processes of prospecting, qualifying, wooing, making representations, preparing tenders, developing strategies, and contract negotiations.

The Marketing of HEC often involves competitive tendering. This is a process where a purchasing organization undertakes to procure goods and services from suitable suppliers. Due to the high value of some purchases and the complexity of such purchases, the purchasing organization will seek to obtain a number of bids from competing suppliers and choose the best offering. An entire profession that includes tertiary training and qualifications has been built around the process of making important purchases. Suppliers who are seeking to win a competitive tender go through a bidding process. At its most primitive, this would consist of evaluating the specification (issued by the purchasing organization), designing a suitable proposal, and working out a price. This is a "primitive" approach because... There is an old saying in industrial marketing; "if the first time you have heard about a tender is when you are invited to submit, then you have already lost it." While flippant, the previous point illustrates a basic requirement for being successful in competitive tendering; it is important to develop a strong relationship with a prospective customer organization well before they have started the formal part of their procurement process.

LITERATURE REVIEW
During the literature review, we have gone through the findings in the field of Marketing study of HEC.

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Heavy Engineering Corporation has completed its fifty years of service to the nation. The year 2008 was marked as the Golden Jubilee Year of Heavy Engineering Corporation Limited. The performance of HEC had improved continuously although there was economic melt down world wide. The company has shown an appreciable growth in all the areas in the last five years. From a huge loss of 285 Cr. in 2005, it recorded 303.30 Cr. gross turn over with a marginal profit of 2.86 Cr. in 2006. It further increased its profit successively to 4.17 Cr in 2007-08, 18.37 Cr in 08-09, and 26.93 Cr. in 2009-10. What seemed impossible to create a turnover of 300 Cr at one time with old plant and machineries, HEC forged forward and crossed the 500 crore mark registering an all time high gross turnover of 511.84 Cr. HEC has signed an MOU with department of Heavy Industries for sales target of Rs.700 Cr. with a net profit of 36.80 Cr. for the financial year 2010-11.
2007-2008

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OBJECTIVES OF THE STUDY

This study program has got the following objectives:

To know about different plants and products. To know about the marketing strategy. To know about the customers and competitors. To know the international scope. SWOT analysis.

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RESEARCH METHODOLOGY
TYPES OF RESEARCH
On the basis of fundamental objectives of the research, marketing research projects are classified into three branches: Descriptive. When a study is designed primarily to describe what is going on or what exists. Public opinion polls that seek only to describe the proportion of people who hold various opinions are primarily descriptive in nature. For instance, if we want to know what percent of the population would vote for a Democratic or a Republican in the next presidential election, we are simply interested in describing something. Relational. When a study is designed to look at the relationships between two or more variables. A public opinion poll that compares what proportion of males and females say they would vote for a Democratic or a Republican candidate in the next presidential election is essentially studying the relationship between gender and voting preference. Causal. When a study is designed to determine whether one or more variables (e.g., a program or treatment variable) causes or affects one or more outcome variables. If we did a public opinion poll to try to determine whether a recent political advertising campaign changed voter preferences, we would essentially be studying whether the campaign (cause) changed the proportion of voters who would vote Democratic or Republican (effect).

RESEARCH DESIGN
The Research design used in the study was descriptive research design. It includes surveys and fact-finding requires of different kinds. The major purpose of description research designs, as it existing at present. Our study is concerned with the assessment of marketing study of HEC Ranchi. It makes an effort to know that how the organisation handles the differentdifferent projects,how it works.what are the significance of various plant in HEC,Ranchi
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SAMPLE DESIGN
We are doing our summer training project in HEC Ranchi and the employees working there are chosen for the study. The employees of different segments involved are: Executives Non-executives Technical Non-technical

SOURCES OF DATA:
Primary data: A brief questionnaire was designed and used by us as an instrument for collecting primary data. Keeping in mind the nature of our study the questionnaire prepared was STRUCTURED, NON-DISGUISED & contained open as well as closed ended questions. Secondary data: Internet Books Handbooks,files etc

Sampling Method In this study,Stratified random sampling method is used in selecting the samples. Geographical area: The Frame comprises the employees of HEC, Ranchi. Target Population: Employees working in HEC, Ranchi.

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Sample Size: 60 employees were surveyed.

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QUESTIONNAIRE
On the basis of following questions we have made our project:

1.

How many plants of HEC are there? What are the major products manufactured by each plant? Who are the major customers of HEC? Who are the major competitors of HEC? Being a PSU, is HEC really giving a good performance as compare to private sector? What is the international business scope of HEC Ranchi? What are the different strategy HEC is adopting for the upgradation of the plant?

2.
3.

4. 5.

6.

7.

8.

Do you think HEC need to restructure its business portfolio in current scenario, if yes, what? What makes HEC to manufacture a high quality products? From last few years HEC is in profit. What are the reasons according to you? Do you think that current manpower supply in HEC is sufficient? Most of the machines in the plant are facing frequent breakdown. What are the reasons? Do you think the offered prices of the products of HEC are competitive as compare to others? On what new product and areas, HEC should need to concentrate?

9. 10. 11.
12.

13.

14.

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Marketing Study of HEC THEORETICAL BACKGROUND

FINANCIAL POSITION OF HEC RANCHI Heavy Engineering Corporation, Ranchi turnover Crosses 500 Crore Mark HEC met the expectations of the country in the nation building exercise but did not do so financially. Due to one reason or the other, it was in the red except on three occasions i.e. during 1975-76, 1976-77 & 1988-89. But 2006 onwards the story is different. It geared up itself to rewrite its history around its Golden Jubilee Year (2008). From a huge loss of 285 Cr. in 2005, it recorded 303.30 Cr. gross turn over with a marginal profit of 2.86 Cr. in 2006. It further increased its profit successively to 4.17 Cr in 2007-08, 18.37 Cr in 08-09, and 26.93 Cr. in 2009-10. What seemed impossible to create a turnover of 300 Cr at one time with old plant and machineries, HEC forged forward and crossed the 500 crore mark registering an all time high gross turnover of 511.84 Cr. HEC has signed an MOU with department of Heavy Industries for sales target of Rs.700 Cr. with a net profit of 36.80 Cr. for the financial year 2010-11. The considerable improvement in work culture, team building, customer focus, commitment and ability to deliver in time or even ahead of schedule has helped the company for this growth and in getting approval of Govt. for implementation of 50 % DA merger. During his visit Honble Minister for HI and PE Shri Vilasrao Deshmukh in February 2010 had all praise for HEC. He assured all possible support to HEC in its pursuit for excellence and further growth. Earlier Honble Jharkhand High Court on 13.11.2009 quashed the winding up order and approved revival package of HEC. With the growing performance and now having positive net worth, HEC will be able to participate in tenders and get orders from organizations such as NTPC where negative worth is a disqualifying criterion.

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"Performance Excellence Award" conferred on HEC Ltd., Ranchi

At the 15th CEOs Conference 2011, being held at Goa from 16th to 18th May 2011, Heavy Engineering Corporation Limited, Ranchi has been conferred with a "Performance Excellence Award 2010" in organization category for its outstanding contribution to the Industry. The award was given by the Honble Chief Minister of Goa, Shri Digamber Kamat to Shri G K Pillai, Chairman and Managing Director, HEC. The conference was organized by Indian Institution of Industrial Engineering (IIIE). IIIE was founded in 1957 as a non-profit organization and a registered Society for propagating the profession of Industrial Engineering in India and is a Registered Public Trust under the Bombay Public Trust Act, 1950. It is dedicated to the advancement of Industrial Engineering education and practice and to the application of such scientific knowledge for development of industry and society. The award is a feather in the cap for HEC. The company has been on the path of growth for the last few years and has won many accolades for its performance and contribution to the nation, especially in the nuclear field. Recently, HEC was selected for "BRPSE Turn around Award 2010" and the award was bestowed on 10.03.11 for its outstanding efforts and achievements. The company has increased its turn over considerably and at the same time earned profits for the last five consecutive years a first for HEC.

HEC bags prestigious order of Draglines worth Rs. 306 Cr.

Heavy Engineering Corporation Ltd. (HEC) secured order for supply & commissioning of two numbers of Draglines (24 CuM/88 m) valued at Rs. 306 crores from Northern Coalfields Ltd.(NCL). Earlier in September, 2009 HEC bagged order for one Dragline from NCL against stiff Global competition. The manufacturing progress was impressive and supply ahead in schedule helped early starting of erection work. The board of Directors of NCL was satisfied with HEC's commitment to time bound delivery and order
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for two more machines placed on 28-Dec-2010. The machines are to be supplied in 20 and 32 months respectively and commissioned in 18 months subsequently at Amlori Project of NCL. HEC is the first Indian company to manufacture the heaviest machine on the earth that walks - Dragline with 24 Cubic Meter Bucket capacity and 96 meter long Boom. Dragline weighing around 1800 Tons is one of the most productive and large size machines that are used for removal of coal & over burden from open cast mines and no additional transportation device required to take the material to pit head or dump yard. It was 1983 when the first Dragline rolled out from HEC's works & commissioned in Jayant area of Northern Coalfields Ltd. Subsequently, HEC supplied 12 nos of Draglines to various CIL subsidiaries (NCL, MCL, SECL and BCCL). The machines being supplied under the present order have latest state of the art control system with faster response and easy maintainability. Some other advanced features incorporated in the machine that will increase the machine utility & safety are: Boom protection device, Self diagnostic system, Production Monitoring System which will record all operational data etc.

Visit of Dr.A.P.J. Abdul Kalam on 24.06.2009 Bharat Ratna & Former President of India

HEC should target annual turnover of Rs 3,000 crore : Kalam Ranchi: Speaking about the future growth plan for Heavy Engineering Corporation (HEC), Ranchi, former president A.P.J. Abdul Kalam set Rs 3000 crore as its annual turnover target in the next three to five years.

Addressing employees at the HEC premises, he lauded the growth of HEC in the past ten years and the turnaround it achieved in the last three years. He suggested that HEC enter into a long-term MoU with the the space research department.

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Heavy Engineering Corporation, as part of its growth plans, has been diversifying into strategic sectors like Space, Nuclear and Defence apart from its traditional sectors of Steel & Mines.

Due to its association with the space programme, HEC Ltd is now capable of meeting the challenges in terms of adopting advanced technologies or handling complex manufacturing jobs.

Kalam suggested that HEC increase focus on its foray into the manufacture of nuclear power reactors and equipment as the country is currently raising its nuclear power production capacity.

Speaking about the opportunities available, he added that HEC would be able to bag orders due to the modernisation drive at various steel plants in the country. One of the main thrusts of HEC is to play a major role in the expansion plan of SAIL.

Kalam, who had last been to HEC in April 1998, said that young project directors were ready to meet new challenges. Speaking elaborately on management and leadership qualities he also suggested improvements in the working atmosphere for its employees.

He indicated that HEC would play a significant role in achieving "India Mission 2020".

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Marketing Study of HEC

DATA ANALYSIS
QUESTION WISE DATA ANALYSIS

1.How many plants of HEC are there?

There are four plants in HEC. 1. 2. 3. 4. Foundry Forge Plant. Heavy Machine Building Plant. Heavy Machine Tool Plant. Project Division.

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1.What are the major products manufactured by each plant? FFP products
a. b. c. d. e. f. Heavy Casting and Forging Forged rolls Slag cups Heavy tyre casting Industrial turbine shaft Stainless steel die forgings

HMBP Products
The plant designs and manufactures equipment and spares for the following:-

a. Steel plants. b. Coal/mining equipment viz. 5 and 10 cu.m. rope shovels, hydraulic shovels, draglines, crushers and grinders, material handling equipment etc. c. Aluminium, power, defence, space research and atomic energy etc. It has also a design and technology wing manned with trained and experienced engineers. Some of the major equipment successfully designed by HMBP are as follows:-

Steel Plant Equipment a. Sinter plant b. Coke Oven batteries c. Blast furnace
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d. Steel melting shop equipment e. Continuous casting plant f. Rolling mill equipment g. EOT crane Mining Equipment a. Draglines b. Electric rope shovels c. Primary gyratory, secondary and tertiary cone crushers and double toggle jaw crushers of various sizes. d. Mine winders

HMTP Products
a. b. c. d. e. f. g. h. Vertical Turning & Milling machine Lathe Roll Grinding Machine Deep Hole Boring Machine Horizontal Boring Machine Radial Drilling Machine Planning Machine Plano Machine i. Special Purpose Railway Machine Tools

Project Division Products

a. b. c. d. Coal Handling Plant Coal Washery Raw Material Handling Plant Wheel & Axle Plant e. Super Alloy Plant

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1.

Who are the major customers of HEC?

STEEL SECTOR Steel Authority of India Bokaro Steel Plant Bhilai Steel Plant Durgapur Steel Plant Rourkela Steel Plant Alloy Steel Plant Rashtriya Ispat Nigam Ltd Tata Iron and Steel Company Essar Steel Jindal Steel INDOMAG MECON Neelachal Ispat Nigam Ltd. Bokaro Bhilai Durgapur Rourkela Durgapur Vishakhapattanam Jamshedpur Gujarat Mumbai New Delhi Ranchi Dubri/Orissa

MINING SECTOR Coal India Ltd. Northern

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Coalfields

Singrauli

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Limited Mahanadi Limited Eastern Coalfields Limited Bharat Limited South Eastern Coalfields Limited Cental Coalfields Ltd. Westen Coalfields Ltd. Hindustan Copper Ltd. Hindustan Zinc Ltd. NMDC Singareni Collieries Ltd. Neyveli Lignite Corporation Ltd. Neyveli Company Ranchi Nagpur Kolkata Udaipur Hyderabad Kothagudam Bilaspur Coking Coal Sactoria Dhanbad Coalfields Sambalpur

DEFENCE SECTOR Ordanance Factory Board Metal & Steel Factory Field Gun Factory Ordinance Factory
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Ichapore Kanpur Kanpur

Marketing Study of HEC

Ordinance Factory Ordinance Factory Gun Carriage Factory Ordinance Factory Indian Navy Misra Dhatu Nigam Ltd. Goa Shipyard Ltd. Mazhgaon Dock Ltd. DRDO

Ambernath Ambajhari Jabalpur Muradnagar

Hyderabad Goa Bombay Diff. Units

RAILWAY SECTOR Indian Railways Workshops Eastern Zone Jamalpur, Lilluah East Central Zone Central Zone Northern Zone Samastipur Matunga, Parel, Kurdwadi Alambagh, Charbagh North Central Zone North Eastern Zone Jhansi Gorakhpur, Izzatnagar Amritsar, Kanchrapara,

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North East Frontier Zone New Bongaigaon,

Dibrugarh, Lumding North Western Zone South Eastern Zone Southern Zone COFMOW Diesel Locomotive Works Chittaranjan Locomotive Works Integral Coach Factory Rail Coach Factory Diesel Works Loco Modernization Varanasi Chittaranjan Chennai Kapurthala Patiala Jodhpur, Bikaner, Ajmer Kharagpur Trivandrum

ALUMINIUM SECTOR Bharat Aluminium Company National Aluminium Company Korba Angul

POWER SECTOR Bharat Heavy Electricals Ltd. National Corporation

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Diff. Units Diff. Units

Thermal

Power

Marketing Study of HEC

Damodar Valley Corporation Jharkhand Board U.P. State Electricity Board Tamilnadu Electricity Board Lucknow Chennai State Electricity Durgapur Patratu

OTHER SECTOR Indian Space Research Sriharikota

Organisation Vikram Sarabhai Space Centre Variable Centre Bhabha Centre GOVT.MINT Fertiliser Corporation of India Tata Engineering & Locomotive Company Larsen & Toubro New Bongaigaon Refinery Oil & Natural Gas Commission Batliboi
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Trivandrum Kolkata

Energy

Cyclotron

Atomic

Research

Kolkata

Mumbai Barauni Jamshedpur

Mumbai Bongaigaon Mumbai Mumbai

Marketing Study of HEC

TATA Growth Shop Tin Plate Company India Ltd. Tata Yodogawa McNally Bharat TRF Limited TATA International

Jamshedpur Jamshedpur Jamshedpur Dhanbad Jamshedpur Kolkata

1.

Who are the major competitors of HEC?

STEEL SECTOR
1. L&T 2. BHEL 3. Bharat Forge 4. Telco Construction Equipment Co. Ltd

MINNING SECTOR
1.Bharat Earth Movers Ltd 2.W M I Cranes Ltd 3.L & T 4.Andhra Pradesh Heavy Machinery & Engg. Ltd

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MACHINE TOOLS INDUSTRY
HEC faces a cut throat competition with the foreign multinational companys in the Machine Tools Industry.

1.Being a PSU, is HEC really giving a performance as compare to private sector?

good

Attributes YES NO

Employees 45 15

Percentage 76% 24%

2.

What is the international business scope of HEC Ranchi?

INTERNATIONAL SCOPE OF HEC

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'HEC will look for global partners in nuclear arena' -- G.K. Pillai, Chairman & Managing Director, Heavy Engineering Corporation Ltd

HEC Ltd, the largest public sector engineering and industrial complex founded in 1958, is going through a makeover with foray in the nuclear sector, tie-ups with many international players of its forging and forge plants. G.K. Pillai explains his plan to Pradip Bhattacharya . In view of the economic downturn, will HEC restructure its business portfolio? Since HEC mainly manufactures capital goods items, an immediate restructuring of the business portfolio is not possible. The economic slowdown has made an impact on HEC. The primary area of HEC's business is steel and mining, though the slowdown has not affected the mining sector to a large extent. Due to the impact on the steel sector, many orders for the expansion of Steel Authority of India Ltd are getting deferred. Many other equipment, which has already been manufactured for Sail, is also not being lifted. These are definitely making an impact on our ongoing business. Notwithstanding the above, we are trying to make some short-term changes such as laying more emphasis on reconditioning of equipment and supply of spares. HEC manufactures and supplies machine tools and capital equipment for core sector industries. What are your plans for the nuclear sector?
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HEC has a huge infrastructure both in foundry and forge as well as in manufacturing fabrication and machining. However, this infrastructure and capacity is grossly under-utilised. The company has developed special steels for the nuclear segment and with success in this field, it intends to cater to special requirements in the nuclear area. With the opening up of the nuclear sector, major global players will be keen to work with Indian nuclear establishments. Thus, HEC intends to look for global partners to jointly manufacture equipment for the nuclear sector. Which new products will be manufactured by your machine tools division in Ranchi? The new machines which will be manufactured by our machine tools division include under floor wheel lathes in collaboration with Hegenscheidt, Germany, the world leaders in railway machine tools. Heavy Engineering Corporation Eyes Manufacture Nuclear Power Equipment International Partnership to

State-owned Heavy Engineering Corporation Limited (HECL) (Ranchi, India) is in talks with international engineering companies for a prospective jointventure partnership to manufacture equipment for nuclear power projects. Discussions are in progress with General Electric Company (Fairfield, CT), Alstom SA (Levallois-Perret, France) and Areva (Paris). HECL plans to hold the majority stake in this joint venture, reports Industrial Info Resources (Sugar Land, TX).

3. What are the different strategy HEC is adopting for the upgradation of the plant?

1. Technological Tie-ups for latest technology. 2. Investment Policy is adopted.

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3. Focus on Yielding. 4. Modernization. 5. Cost control.

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1.

Do you think HEC need to restructure its business portfolio in current scenario?
Attributes Yes No Employees 51 9 Percentage 85% 15%

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2. What makes HEC to manufacture a high quality products?

Attribute s
Governm ent Policy To maintain its brand Image To retain Its quality Believe in quality not quantity

Rank 1
14 16 10 17

Rank 2
13 15 18 16

Rank 3
16 18 19 14

Rank 4
17 11 13 13

Weighta ge
Attributes Governme nt Policy To maintain its brand Image To retain Its quality
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4
Rank 1 56 64 40

3
RANK 2 39 45 54

2
Rank 3 32 36 38

1
Rank 4 17 11 13

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Believe in quality not quantity

68

48

28

13

Attributes

Weightage 157 156 145 144 602

Believe in quality not quantity To maintain its brand Image To retain Its quality Government Policy
Total

COMMENT:
related to each other.

All the above attributes help in the organisation and all of them are very closely

3. From last few years HEC is in profit. What are the reasons according to you?

Attributes
Good administrative control Reduction in wastage Increase in yield Change in policy
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Rank 1
14 17 13 18

Rank 2
18 12 14 12

Rank 3
16 19 20 16

Rank 4
12 12 13 14

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4. Do you think that current manpower supply in HEC is sufficient?

Attributes Yes No Employees 42 18 Percentage 70% 30%

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5.

Most of the machines in the plant are of old technology & need rehabilitation. What are the reasons?
1. Need technological tie-ups with foreign partners who have

unique experience in modernization of steel plants.

2. No reconditioning or refurbishing of the plants could be done due

to companys poor financial health.

3. Many of the equipment available at HEC is nearly half-a-century

old and these are huge power guzzlers. HEC intends to replace these in batches with more energy-efficient devices that will bring overall benefit for the company and the country. 4. Lack of capital investment over R&D.

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1. Do you think the offered prices of the products of HEC are cheaper as compare to others?
Attributes Yes No Employees 51 9 Percentage 85% 15%

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2. On what product HEC should need to concentrate?

HEC need to concentrate in its major products so that it will help HEC to incease its profit and performance. Along with this it need to generate new ideas to build new products whose requirements are more in the market. Its major products are FFP HMBP HMTP Radial Drill Roll Grinder Heavy Duty Centre Lathe Deep hole boring Dragline Crushers Cranes Sinter car Forge rolls Electric Rope Shovel Slag cups Turbine

PROJECT Coal handling plants Ore handling plants Coal Washeries Cement plants

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FINDING
At last we would like to conclude that HEC is presently in growth stage.from last four years HEC is growing, despite all hurdles. In quality terms ,we found HEC products as a world class. Since HEC mainly manufactures capital goods items, an immediate restructuring of the business portfolio is not possible. The economic slowdown has made an impact on HEC. The primary area of HEC's business is steel and mining, though the slowdown has not affected the mining sector to a large extent. Due to the impact on the steel sector, many orders for the expansion of Steel Authority of India Ltd are getting deferred. Many other equipment, which has already been manufactured for Sail, is also not being lifted. These are definitely making an impact on our ongoing business.

Notwithstanding the above, we are trying to make some short-term changes such as laying more emphasis on reconditioning of equipment and supply of spares.

HEC has a huge infrastructure both in foundry and forge as well as in manufacturing fabrication and machining. However, this infrastructure and capacity is grossly under-utilised. The company has developed special steels for the nuclear segment and with success in this field, it intends to cater to special requirements in the nuclear area. With the opening up of the nuclear sector, major global players will be keen to work with Indian nuclear establishments. Thus, HEC intends to look for global partners to jointly manufacture equipment for the nuclear sector One of the challenges before the management is very old plant and machinery. Over the years, on

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account of the companys poor financial health, no reconditioning or refurbishing of these assets could be done. This has resulted in the poor state of plant and machinery. Now with the company making progress and coming out of the red and with the infusion of funds, it is the priority of the management to recondition the plant and machinery so that their utilisation and effectiveness can be enhanced.

Moreover, many of the equipment available at HEC is nearly half-a-century old and these are huge power guzzlers. HEC intends to replace these in batches with more energy-efficient devices that will bring overall benefit for the company and the country.

The capacity utilisation at the foundry and forge plants has been very low, about 23 per cent. With a perennial shortage of capital, the company could not improve it.

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SUGGESTIONS

As per our survey, we have find that HEC need to concentrate in the following areas for the better performance and profit of HEC. 1. Modernization of plants need to be done. 2. Recruitment of skilled employees are required. 3. Working condition need to be improved. 4. Yielding should be increased. 5. Investment should be done. 6. Need to focus on R&D. Note: HEC need to concentrate on cost reduction policy so that profit of the company increase. a. Good system of material management is required. b. Rejection must be decrease.

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LIMITATIONS OF THE STUDY

The limitations of the study which were felt as the organizational challenges to be faced in day to day routine by the employees and customers affected the performance of the company were as follows:
Due to the time constraint , the number of respondants were less.

There is a chance of personal bias which affects the original data.

The information gathered are somewhat near to the exact information

as because some of the employees are reluctant to share the information.

The time schedule of the employees were such that we couldnt

gathered much information.

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BIBLIOGRAPHY

1. Business

Research,

Kothari,

C.R,

New

Age

International

Publisher.
2. www.hecltd.com.

3. Annual Report of HEC.

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