Marketing Project

2012

TO FIND THE MARKET

POTENTIAL OF

COMMERCIAL PIPES IN

JHARKHAND.

TATA STEEL

SUBMITTED BY:

Sandeep Ghatuary

ROLL. NO. : 10MBA070023023

TATA STEEL LIMITED, (Tube Division) Burmamines, Jamshedpur.

TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,

2012

4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1

DETAILS OF GROUP MEMBERS:

SR. NO. STUDENTS’ NAME COURSE COLLEGE NAME & ADDRESS

ROLL NO.

1 Sandeep Ghatuary MBA (MKTG)

Jamshedpur Workers College, Mango

(Kolhan University).

10MBA070023023

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 don’t mention the support and encouragement shown by my

parents. Without their help and wishes, this project would not have been a success.

INTERNAL EXTERNAL


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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 company’s goal.


2012



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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 companies in commercial steel pipe

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.


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CONTENTS

SR. NO

TOPIC PAGE NO.

1

INTRODUCTION TO TATA STEEL LTD.

11

2

COMPANY HISTORY

12-13

3

VISION & MISSION

13

4

THE FOUNDER

14

5

PIONEERS

15-17

6

LOCATION MAP OF TATA STEEL

17

7

COMPANY PROFILE

18

8

BOARD OF DIRECTORS

19-20

9

BUSINESS ETHICS

21

10 22-23


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CSR

11

STRATEGIC BUSINESS UNITS

24-26

12

FINANCIAL DATA (MARCH05 – MARCH 09)

27-29

13

SUBSIDIARY ASSOCIATES

30-335

14

INTRODUCTION TO TUBES DIVISION

36

15

ORGANIZATIONAL HIERARCHY

37

16

SIPOC MODEL

38

17

PRODUCT & ITS APPLICATION;

PRODUCT MILL SPECIFICATION

39

18 PRODUCT PROFILE & SPECIFICATION; MANUFACTURING

TECHNOLOGY

40-44

19 MANUFACTURING PROCESS 45

20

SEGMENT CHOSEN FOR RESEARCH WORK; PROJECT CHARTER

46-48

21

STEPS FOLLOWED AS PER OPERATIONAL DEFINITION

49


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22

RESEARCH METHODOLOGY

50

23

LIMITATIONS; QUESTIONNAIRE DESIGN

51

24

SAMPLE QUESTIONNAIRE

52-58

25

DATA ANALYSIS

59-89

26

HYPOTHESIS SUBSTANTIATION

90

27

SWOT ANALYSIS OF TATA PIPES

91

28

COMPANY PROFILE OF KEY COMPETITOR: JINDAL PIPES

89

29

PRODUCT RANGE

93

30

SWOT ANALYSIS; THREAT OF SUBSTITUTION IDENTIFIED

94

31

RECOMMENDATION

95-96

34

BIBLIOGRAPHY

97


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INTRODUCTION TO TATA STEEL LTD.

� 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 India’s industrial renaissance.

Born on 3rd March, 1839 into a family descended from Parsi priests in Navsari, a centre for age-

old 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 India’s 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 life’s 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 India’s

development--family planning, women’s education, spread of literacy. The 100% successful


2012


family welfare schemes at Tata Steel and the various educational programs for all, directly

emanate from JRD Tata’s insight. Numerous national and international honours were bestowed

on JRD Tata. These included Knight Commander’s 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-in-

charge of National Radio & Electronics Company Ltd.

India’s 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,


2012


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 Dec’2012)

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


2012


LOCATION MAP OF TATA STEEL

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


2012


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 Steel’s 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 Group’s 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.


2012


BOARD OF DIRECTORS

Mr. Ratan Tata (Chairman)

Mr. B. Muthuraman (Vice Chairman).

Mr. H.M. Nerurkar (Managing Director).

Mr. N.N. Wadia (Independent Non Executive Director).

Mr. S.M. Palia (Independent Non Executive Director).


2012


Mr.Sureshkrishna (Independent Non Executive Director)

Mr. Ishant Hussain (Independent Non Executive Director)

Dr. Jamshed J Irani (Independent Non Executive Director)

Mr. S. Bhargava (Independent Non Executive Director)

Mr. Jacobus Schraven (Independent Non Executive Director)

Mr. Andrew Robb (Independent Non Executive Director)

Mr. Kirby Adams (Not Independent, Non Executive Director)


2012


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 Steel’s 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.

• Leadership

• System and Processes

• Training and awareness

• Measurement

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


2012


sense of accountability.

CORPORATE SOCIAL RESPONSIBILITY

"Every Company has a special continuing responsibility towards the people of the area in

which it is located. The Company should spare its doctors, managers to advice the people

of the village and supervise near development undertaken by co-operative effort between

them and the company" - Mr. J.R.D. Tata

The purpose of Tata Steel’s business has, since its inception, extended well beyond just steel

making. Since the beginning of operations, Tata Steel envisaged its Steel Works, mines and

collieries as symbols of nation building and an endeavour to improve the quality of life of its

people, with a special interest in the communities where it operates.

The belief that progress of the community is integral to a harmonious business environment led

to need-based interventions in the early years. This gradually evolved into structured

mechanisms represented by Tata Steel’s numerous social and community welfare groups. The

idea of inclusive growth has been initiated with the view that Tata Steel’s successes are shared

by all its constituents and shareholders. Therefore the scope of improvement initiatives reach

far beyond the immediate circle constituting employees and their families to communities that

are directly or indirectly impacted by the Company. In its global operations too, Tata Steel has

ensured that several specific initiatives are taken towards benefiting extended communities

through the Group’s business.

SUSTAINABILITY INITIATIVES:

In facilitating sustainable development and inclusive growth, Tata Steel Corporate

Sustainability Services (CSS) has been taking steps through its operating social arms that

address the needs of the community. In its areas of operation, capacity building for human,

social and financial value creation has spawned initiatives in sustainable livelihood, education,

health, renewable energy and affirmative action with the objective of improving the economic


2012


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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STRATEGIC BUSINESS UNITS

Apart from the main steel division, Tata Steel's operations are grouped under the following

strategic business units.

FLATS

The Flat products business group of the Steel division is the country’s

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.


2012


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.


2012


GROWTH-SHOP

Growth Shop delivers world-class services and equipment. Over the

years, it has played an important role in the modernization of Tata Steel’s

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.


2012


FINANCIALS FOR THE LAST 5 YEARS (Figures in crores)

Cash Flow for last 5 years

Particulars Mar'11 Mar'10 Mar'09 Mar'08 Mar'07

Profit Before Tax 9,776.85 7,214.30 7,315.61 7,066.36 6,261.65

Net Cash Flows from Operating Activity 8,542.72 8,369.22 7,397.22 6,254.20 5,118.10

Net Cash Used in Investing Activity -13,288.13 -5,254.84 -9,428.08 -29,318.58 -5,427.60

Net Cash Used in Financing Activity 5,652.81 -1,473.13 3,156.42 15,848.07 7,702.46

Net Inc/Dec in Cash and Cash Equivalent 907.40 1,641.25 1,125.56 -7,216.31 7,392.96

Cash and Cash Equivalent - Beginning of the Year 3,234.14 1,592.89 465.04 7,681.35 288.39

Cash and Equivalent - End of the Year 4,141.54 3,234.14 1,590.60 465.04 7,681.35


2012


SUBSIDIARY ASSOCIATES

Corus : Europe’s 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 / tin-

free 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.


2012


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.


2012


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, high-

quality 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.


2012


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): Re-

engineered 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


2012


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


2012


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.

\


2012


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-of-

the-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 Company’s strategic business unit Tata

Tubes, is the most prominent brand in the industry today which is retailed through a wide


2012


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.

ORGANIZATIONAL HIERARCHY OF TATA TUBES IS DEPICTED AS

FOLLOWING:


2012



2012


SIPOCMODEL

SUPPLIERS -CORUS; FERRO AND ALLOYS DIVISON AND

TATA STEEL.

INPUT -

IRON ORE ; COAL; FERRO AND ALLOYS.

PROCESS- HFIW ( HIGH FREQUENCY INDUCTION WIELDING PROCESS)

OUTPUT -COMMERCAIAL TUBES ; PRECISION TUBES; TATA STRUCTURA.

CUSTOMER - TATA MOTORS; TOYOTA; HONDA; M&M. & MANY OTHERS THROUGH E-PROCUREMENT.


2012


PRODUCT AND ITS APPLICATION

PRODUCT BRAND NAME APPLICATION

Commercial Tubes

Tata Pipes

Cater to the plumbing, irrigation, cold storage, HVAC

applications and other Industrial end usage.

Structural Tubes

Tata Structura

Used for a variety of architectural, industrial, scaffolding,

infrastructural and general engineering applications.

Landmark airport structures in India have been built using

Tata Structura

Precision Tubes

Tata Precision

Tubes

The Tubes Division entered the high-tech segment with the

successful commissioning of its hydroforming line and

commencement of supply of tubular hydroformed engine

cradle for the Tata Nano cars. It has also developed telescopic

front fork for motorcycles

PRODUCTION MILL SPECIFICATION:

SIZE RANGE

MILL OD THICKNESS

2”ERW 12.70mm - 50.80mm

0.60mm - 5.50mm

3”HFIW 12.70mm - 76.20mm

0.60mm - 6.00mm

4”ERW 31.75mm -114.30mm 1.50 mm- 6.00 mm


2012


PRODUCT PROFILE & SPECIFICATION

As the tubes are manufactured from high quality hot rolled coils from the advanced hot strip mill

of Tata Steel, they come with a number of sure advantages. These steel tubes are manufactured

in ISO certified manufacturing facilities, under strict quality control norms, and have high

strength and durability.The “Tata Steel Tubes Division” manufactures Tubes in accordance with

the Lioyds Register and according to Central Boiler Board; we are a “well known pipe maker”

under regulation 4C (2) of the IBR Act 1950. Few tube makers in India enjoy this self-

certification status. The division has also been accredited with the ISO 9002 Certification for

confirming to high quality standards.

COMMERCIAL TUBES:

Indian Standards: IS 1239 & IS 3589;

British Standards: BS 1387; American

Specifications: ASTM A 53

PRECISION TUBES: Indian Standards: IS:

1914, IS: 1978, IS: 2039, IS: 3074, IS: 3601,

IS: 7138, IS: 8036, IS: 1161, IS: 4923,

British Standards: BS: 980, BS: 1717, BS:

1775, BS: 3059, BS: 6323, American

Specifications: ASTMA 178, ASTM A

214,Japanese Standards: JIS: G 3445

PRODUCT SPECIFICATION OF TATA PIPES AS PER IS 1239:


2012


Nominal

Bore (mm)

Class

or

category

Outside diameter

(mm)

Thickness

(mm)

Mass of tube black and galvanised

Max.

Min.

Plain end

kg/m

Screwed & socketed kg/m

Plain end

meter/ton

Screwed & socketed meter/ton

15 L

M

H

21.4

21.8

21.8

21.0

21.0

21.0

2.0

2.6

3.2

0.947

1.21

1.44

0.956

1.22

1.45

1056

826

694

1046

820

690

20 L

M

H

26.9

27.3

27.3

26.4

26.5

26.5

2.3

2.6

3.2

1.38

1.56

1.87

1.39

1.57

1.88

725

641

535

719

637

532

25

L

M

H

33.8

34.2

34.2

33.2

33.3

33.3

2.6

3.2

4.0

1.98

2.41

2.93

2.00

2.43

2.95

505

415

341

500

412

339

32

L

M

H

42.5

42.9

42.9

41.9

42.0

42.0

2.6

3.2

4.0

2.54

3.10

3.79

2.57

3.13

3.82

394

323

264

389

319

262

40

L

M

H

48.4

48.8

48.8

47.8

47.9

47.9

2.9

3.2

4.0

3.23

3.56

4.37

3.27

3.60

4.41

310

281

229

306

278

227

50

L

M

60.2

60.8

59.6

59.7

2.9

3.2

4.08

5.03

4.15

5.10

245

199

241

196


2012


H 60.8 59.7 4.5 6.19 6.26 162 160

65

L

M

H

76.0

76.6

76.6

75.2

75.3

75.3

3.2

3.6

4.5

5.71

6.42

7.93

5.83

6.54

8.05

175

156

126

172

153

126

80

L

M

H

88.7

89.5

89.5

87.9

88.0

88.0

3.2

4.0

4.8

6.72

8.36

9.90

6.89

8.53

10.1

149

120

101

145

117

96

100

L

M

H

113.9

115.0

115.0

113.0

113.1

113.1

3.6

4.5

5.4

9.75

12.2

14.5

10.0

12.5

14.5

103

82

69

100

80

68

125

M

H

140.8

140.8

163.9

163.9

4.8

5.4

15.9

21.9

16.4

18.4

63

56

61

54

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


2012


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 Chemical requirements ladle analysis(%)

Physical properties requirement (minimum

values)

IS:3589

Steel grade

C(max) P(max) S(max) tensile strength

Mpa(min)

%Elongation

5.65√S (min)

Fe330 0.17 0.055 0.055 330 20

Specification Test Permissible variations

IS:3589

Hydrostatic test MPa

Flattening test

Outside diameter

Thickness Straightness

5 No opening shall occur by fracture in the weld until the

distance between the

plates <75%of OD. For further

(+,-)

o.75%

(+,-)

10%

Deviation less than 2%of the

total lenght

Dimensions and nominal mass of steel Tubes-preferred sizes

Nominal Bore (mm)

Outside diameter

(mm)

Thickness

(mm)

Mass of tube

(kg/mtr)

Mass of tube

(meter/ton)

200 219.1 4.35 23.04 43.40

200 219.1 5.00 26.40 37.88


2012


200 219.1 6.35 33.32 30.01

250 273.1 5.00 33.06 30.25

250 273.1 6.35 41.77 23.94

300 323.9 5.00 39.32 25.43

300 323.9 6.35 49.72 20.11

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.


2012


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.


2012


SEGMENT CHOSEN FOR RESEARCH WORK: COMMERCIAL TUBES

Application:

• Plumbing

• Irrigation

• Process (cold storage & HVAC)

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;


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 Observation Broad area of research interest identified

2 Priliminary data gathering Interviewing & literature survey

3 Problem definition Research problem should be delineated

4 Theoretical framework Variables should be clearly identified.

5 Generation of hypothesis Hypothesis development

6 Scientific research design Population & sample should be defined.

7 Data collection Preparing questionnaire & conducting survey

8 Data analysis, interpretation &deduction Hypothesis substantiation

9 Recommendation. Suggestion on findings

10 Report writing. Summarizing the work done in a report

PROJECT SCOPE: 5 cities of Jharkhand (Jamshedpur, Ranchi, Bokaro, Dhanbad,

Hazaribaag); 10 dealers in each city.


2012


MILESTONES:

05th dec – 09st dec Observation

10th dec – 15th dec Preliminary data gathering by literature review.

16th dec– 19st dec Problem definition, theoretical framework &

generation of hypothesis.

20th dec – 05th jan Scientific research design & questionnaire

preparation for sample survey.

Data collection:

06th jan – 10th jan Survey in Jamshedpur

11th jan – 14th jan Survey in Ranchi

15th jan – 20st jan Survey in Bokaro

21st jan – 25th jan Survey in Dhanbad

26th jan – 31th jan Survey in Hazaribaag

1st feb – 5th feb Data analysis and interpretation; hypothesis

substantiation & recommendation.

6th feb – 10th feb Report writing

12th February Report presentation.

ROLES AND RESPONSIBILITIES :

Names of students Responsibility

Amit sharma, Amit singh, Brajesh Observation to generation of hypothesis.

Amit sharma, Amit singh, Brajesh Scientific research design & questionnaire

preparation.

Amit sharma, Amit singh, Brajesh To conduct survey in Jamshedpur

Amit sharma, Amit singh, Brajesh Conduct survey in Ranchi.

Amit sharma, Amit singh, Brajesh Conduct survey in Bokaro.

Amit sharma, Amit singh, Brajesh Conduct survey in Dhanbad & Hazaribaag

Amit sharma, Amit singh, Brajesh Data analysis to report writing & presentation.


2012


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 helped us

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.

(3) PROBLEM DEFINITION: Tata pipes have the risk of loosing market share to its

strongest competitor in Jharkhand.

(4) THEORITICAL FRAMEWORK:

TYPE OF VARIABLE NAME EXPLAINATION

1 Dependent variable (x) Annual sales 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.

3 Moderating variables (z) (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


2012


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).

TYPES OF INTERVIEW CONDUCTED

Market survey was conducted by using both structured and unstructured interview,

because, most of the dealers did not have enough time to go through each question. So,

we had to conduct unstructured interviews for them and even in cases when some in

depth information was required.

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

slightly to gain the insight of a situation


2012


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.


2012


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 Steel pipes PVC pipes

2008-09

2009-10

(3) What are the annual demands of the following?

GI pipes Black pipes PVC pipes


2012


(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 Medium heavy

Plumbing

Irrigation

process

(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


2012


(8)Which sizes (diameter in mm) of tubes do you deal with, in Commercial Steel pipes: GI ? (pls

fill in the details as required).

Steel pipes: BLACK

15 20 25 32 40 50 65 80 100 125 150 Other sizes; pls specify

L

Annual

sale(09-10)

Application

M

Annual

sale(09-10)

Application

H

Annual

sale(09-10)

Application

15 20 25 32 40 50 65 80 100 125 150 Any other; pls specify

L

Annual

sale(09-10)

Application


2012


(9)Which brands do you sell? Also mention their annual sale.

STEEL PIPES

Tata pipes Jindal Bhansal Bhushan Surya RST Neezone local

Annual sale

(09-10)

Annual sale

(08-09)

PVC pipes

paras finolex Tuff

plast

supreme gupta prince RST Bhansal Jindal local

Annual

sale(09-10)

M

Annual

sale(09-10)

Application

H

Annual

sale(09-10)

Application


2012


(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

Advertise

-ments

customer

feedback

availability Othe

-rs

Steel

pipes

PVC

pipes

(11)Which brand do you mostly recommend to your customers?

STEEL PIPES: GI

Tata pipes Jindal Bhansal Bhushan RST Neezone local

PVC PIPES

Paras Prince RST Gupta Supreme Finolex Tuff Plast Bhansal Jindal Local


2012


(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? Yes ( ) No( )

(a) IF YES, then pls specify:

Quality On time

delivery

Less

profit

margin

poor

incentive

plan

Improper communication

of new developed

products

Price availability Others

(15)What was the sales target for last month, April 2010? ----------------

(16)Did you achieve your target? Yes ( ) No( )

(a) IF 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( )


2012


IF YES, then why do you think so? (pls tick)

unawareness

of market

demand

rigid

pricing

policy

poor

promotional

activities

longer

delivery time

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 Others Pls Specify

(20)Why do you think so? Give rating.(5-far better,4- better,3-at par,2-slightly poor,1-very poor)

Quality Deliv-

ery

time

Dema-

nd

Value for

money

Availab

ility

promotion 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?

Hoarding Wall painting T.V.

commercial

Print

commercial

Radio

commercial

Others pls

specify

(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___

TO FIND THE MARKET PO

4 3 , J a w a h a r l a l N e h r u

DATA REPRESENTATION

(due to unsatisfactory response to few

interpreted; so as to avoid any kind of miscommunication).

SEGMENT WISE COMPARISON

(1) Percentage distribution of commercial pipe dealers in Jharkhand.

INTERPRETATION:

• 50% of the total number of commercial pipe dealers sell both steel and PVC pipes.

• Exclusive commercial steel pipe dealers are four times more in number than

commercial PVC pipe dealers.

50%

O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.


DATA REPRESENTATION AND INTERPRETATIO

sfactory response to few questions, their data have not been represented nor

interpreted; so as to avoid any kind of miscommunication).

WISE COMPARISON OF COMMERCIAL STEEL & PVC PIPES

Percentage distribution of commercial pipe dealers in Jharkhand.

50% of the total number of commercial pipe dealers sell both steel and PVC pipes.

ommercial steel pipe dealers are four times more in number than

l PVC pipe dealers.

40%

10%

STEEL PIPE DEALERS

PVC PIPE DEALERS

BOTH STEEL & PVC PIPE

DEALERS

S IN JAHRKHAND. 12 February,

2012

7 0 0 0 7 1

AND INTERPRETATIO N

represented nor

OF COMMERCIAL STEEL & PVC PIPES

Percentage distribution of commercial pipe dealers in Jharkhand.

50% of the total number of commercial pipe dealers sell both steel and PVC pipes.

ommercial steel pipe dealers are four times more in number than exclusive

BOTH STEEL & PVC PIPE


2012


(2) Share of steel pipes and PVC pipes in commercial pipe market.

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%.

77%

70%

23%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

steel pipes

PVC pipes

2009-2010 2010-2011



(3)Annual demand of GI, BLACK (steel pipes)

market.

COMMENT:

• Galvanised pipes (GI pipes) have the highest annual demand

Reasons: zinc coating for rust prevention

• PVC pipes serve as a perfect substitute of

Reasons: portability, easier fixation, durability, light weight, heat resis

rusting character.

• Black pipes have the lowest de

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

GI steelpipes BLACK steel

50%



Annual demand of GI, BLACK (steel pipes) & PVC pipes in commercial pipe

pipes) have the highest annual demand of 50% ;

nc coating for rust prevention

serve as a perfect substitute of GI pipes, wit a demand of

portability, easier fixation, durability, light weight, heat resis

Black pipes have the lowest demand of just 20%; Reason : mainly due to rusting

BLACK steel

pipes

PVC pipes

20%

30%

Series1


2012

7 0 0 0 7 1

& PVC pipes in commercial pipe

of 50% ;

wit a demand of 30% ;

portability, easier fixation, durability, light weight, heat resistance and non

0%; Reason : mainly due to rusting.



(4) Purposes for which commercial

INTERPRETATION

• Commercial steel

irrigation segment (36%).

• It has least application in process segment that include industrial

engineering

• In process segment commercial

storage & HVAC

(20%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

PLUMBING



Purposes for which commercial steel pipes are used

INTERPRETATION:

Commercial steel pipes are majorly used in plumbing

irrigation segment (36%).

It has least application in process segment that include industrial

engineering, construction, automobile parts, cold storage, HVAC etc

In process segment commercial steel pipes are majorly used in cold

storage & HVAC puposes. So, they have the least percentage of usage

PLUMBING IRRIGATION

PROCESS

44%

36%

20%


2012

7 0 0 0 7 1

pipes are used.

pipes are majorly used in plumbing (44%) and

It has least application in process segment that include industrial

, construction, automobile parts, cold storage, HVAC etc

pipes are majorly used in cold

puposes. So, they have the least percentage of usage



(5)Percentage consumption of different catagories of commercial following segments.

PLUMBING:

INTERPRETATION:

• medium category commercial GI

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 hig

pressure water line heavy catagory pipes ar

• Light catagory pipes are g

low pressure water supply line

0%

10%

20%

30%

40%

50%

60%

70%

80%

LIGHT



Percentage consumption of different catagories of commercial

medium category commercial GI pipes are prefered the most (specially from diameter

. 70% users use medium size pipes for their house plumbing.

In case of some heavy duty plumbing purposes like public water supply system and hig

pressure water line heavy catagory pipes are used.

pipes are generally used in minor house plumbing, as curtain holders &

low pressure water supply lines.

LIGHT MEDIUM HEAVY

20%

70%

10%


2012

7 0 0 0 7 1

Percentage consumption of different catagories of commercial GI steel pipes in

(specially from diameter

. 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

enerally used in minor house plumbing, as curtain holders & in



IRRIGATION:

INTERPRETATION:

• In irrigation purpose medium type pipes are preferred

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

• Only 20% light type GI pipes

supply covering short distance

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%



medium type pipes are preferred the most. 50% of total

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.

20% light type GI pipes are used in personal irrigation and low pressure water

supply covering short distance.

LIGHT MEDIUM HEAVY

20%

50%


2012

7 0 0 0 7 1

50% of total GI pipes in

In long distance water supply and high pressure water supply heavy type of GI pipes are

ersonal irrigation and low pressure water

HEAVY

30%



PROCESS:

COMMENT:

• In process like cold storages, high air pressure line, ventilation line, air conditioning

etc. normally heavy type

purposes.

• Comparatively in low pressure and in low duty process, medium and light type pipes are

used. Light type pipes are easy to bend, that’s why light type pipes are used in that

process where bending is required. For example

0%

5%

10%

15%

20%

25%

30%

35%

40%

LIGHT

25%



In process like cold storages, high air pressure line, ventilation line, air conditioning

etc. normally heavy type pipes are used. 40% heavy types pipes are used in process

Comparatively in low pressure and in low duty process, medium and light type pipes are


bending is required. For example :Automobiles parts.

MEDIUM HEAVY

35%

40%


2012

7 0 0 0 7 1

In process like cold storages, high air pressure line, ventilation line, air conditioning line

pipes are used. 40% heavy types pipes are used in process

Comparatively in low pressure and in low duty process, medium and light type pipes are


parts.


2012


(6)Segments where the PVC pipes form perfect substitute of steel pipes.

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.

74%

68%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PLUMBING IRRIGATION PROCESS

Series1



(7) Area wise percentage consumption of commercial steel pipeslight, medium & heavy.

16

JAMSHEDPUR

75



Area wise percentage consumption of commercial steel pipeslight, medium & heavy.

12

72

JAMSHEDPUR

LIGHT

MEDIUM

HEAVY

22

3

RANCHI

LIGHT

MEDIUM

HEAVY


2012

7 0 0 0 7 1

Area wise percentage consumption of commercial steel pipes in catagories:



64

HAZARIBAGH

83

4

DHANBAD



34

2

HAZARIBAGH

LIGHT

MEDIUM

HEAVY

134

DHANBAD

LIGHT

MEDIUM

HEAVY


2012

7 0 0 0 7 1



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

purposes.

• irrigation is also one of the main purposes for which medium steel pipes are used.

71

14



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

irrigation is also one of the main purposes for which medium steel pipes are used.

15

71

BOKARO

LIGHT

MEDIUM

HEAVY


2012

7 0 0 0 7 1

Fom the graphs we can clearly see that in all the five cities the same trend of

This is due to big domestic market, where medium pipes are primarily used for plumbing

irrigation is also one of the main purposes for which medium steel pipes are used.



(8)Percentage consumption of comm

light, medium & heavy.

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 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).

73%

7.80%



Percentage consumption of commercial steel pipes in Jharkhand in categories:

Maximum pipes consumed are that of medium category (due to medium weight, lesser


Medium pipes are also used as substitute for light pipes, thus increasing consumption).

ion of light pipes are comparatively lower than that of medium ones, (due to


Heavy pipes are the least consumed ones, (due to their extremely heavy weight and

specific application in industries).

19.20%7.80%

LIGHT

MEDIUM

HEAVY


2012

7 0 0 0 7 1

ercial steel pipes in Jharkhand in categories:

Maximum pipes consumed are that of medium category (due to medium weight, lesser


Medium pipes are also used as substitute for light pipes, thus increasing consumption).

ion of light pipes are comparatively lower than that of medium ones, (due to


Heavy pipes are the least consumed ones, (due to their extremely heavy weight and


2012


(9)Percentage consumption of different diameters of commercial steel pipes

in Jharkhand ; in following catagories:

LIGHT:

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.

19%

22%

18%

13%

9%

5%4%

3% 3%2% 2%

0%

5%

10%

15%

20%

25%

Series1



MEDIUM:

INTERPRETATION:

• Medium steel pipes are mostly used for plumbing & irrigational purposes.

• For plumbing, 15mm

• Tubes of higher sizes are used for purposes as irrigation, sewage pipes, water

supply pipes etc.

0%

2%

4%

6%

8%

10%

12%

14%

16%

11%12%

14%



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.

14%15%

14%13%

5%4%

5%4%

3%

Series1


2012

7 0 0 0 7 1

Medium steel pipes are mostly used for plumbing & irrigational purposes.

Tubes of higher sizes are used for purposes as irrigation, sewage pipes, water

Series1



HEAVY:

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 &

underground boring pipes etc.

0%

2%

4%

6%

8%

10%

12%

14%

6%5%

10%



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.

10%

12%13%

14%

12%

10%9%

5%4% Series1


2012

7 0 0 0 7 1

Due to extremely heavy weight, heavy steel pipes are used only on special

gas pipes, heavy water supply pipes,

Series1



(10)Market share of Tata Pipes and

(commercial steel pipe segment

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.

8%5%

10%

7%

7%

13%



Market share of Tata Pipes and its competitors in Jharkhand.

steel pipe segment)

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

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.

30%

20%

TATA

JINDAL

SURYA

BHUSHAN

BANSAL

RST

NEEZONE

LOCAL


2012

7 0 0 0 7 1

its competitors in Jharkhand.

Jindal is the strongest competitor of Tata pipes in Jharkhand with a share of 20% of the

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

Then comes, Bhushan, Bansal, RST & Neezone, which cover rest of the market.



(11)Market share of compa

INTERPRETATION:

• Finolex is the market leader in

• Prince and supreme ar

18.50% and 16.65% respectively.

• Tuff plast is also one of the big players in this segment with a market share of 14%

4%

2.49%

14%

22%

5.94%



Market share of companies producing PVC Pipes.

Finolex is the market leader in commercial PVC pipe segment with a share of 22%.

Prince and supreme are the strongest competitors of Finolex with a market share of

18.50% and 16.65% respectively.

also one of the big players in this segment with a market share of 14%

18.50%

10%

16.65%

1.42%

5%

5.94%

Prince

Paras

Supreme

RST

Bansal

Jindal

Gupta

Tuff

Finolex

Local


2012

7 0 0 0 7 1

PVC pipe segment with a share of 22%.

inolex with a market share of

also one of the big players in this segment with a market share of 14%



(12)Customer’s brand preference

For steel pipes:

INTERPRETATION:

• Tata pipes is the most

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

brand.

15%

5%10%



preference :

Tata pipes is the most preferd brand by the customers; 70% of the customers go for tata

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

70%

TATA

JINDAL

BHANSAL

BHUSHAN

SURYA

RST

NOT BRAND CONSCIOUS


2012

7 0 0 0 7 1

70% of the customers go for tata

10% of the customers who are not brand conscious, go for any brand whichever is

, Jindal pipes or any other



For PVC Pipes:

INTERPRETATION:

• Prince is the most preferred brand by the customers with

• Supreme stands the second in brand preference

40%

10%

20%



eferred brand by the customers with preference of 40%

the second in brand preference; 20%

20%

10%

supreme

finolex

tuff plast

gupta

prince

paras

RST

Bansal

Jindal

not brand conscious

does not prefer pvc


2012

7 0 0 0 7 1

preference of 40%


2012


(13) Percentage risk of TATA pipes loosing market share to its competitor in

commercial steel pipe segment.

INTERPRETATION:

• There is 80% risk that TATA PIPES may loose its market share to its strongest

competitor, Jindal, in steel segment.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

RISK NO RISK

Series1


2012


(14) Ratings on various parameters:

TATA PIPES

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.

0

1

2

3

4

5

6

EXCELLENT

VERY GOOD

GOOD

AVERAGE

POOR


2012


JINDAL PIPES

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.

0

1

2

3

4

5

6

EXCELLENT

VERY GOOD

GOOD

AVERAGE

POOR


2012


(15)RATING OF JINDAL PIPES WITH RESPECT TO TATA PIPES:

INTERPRETATION:

Points where Jindal pipes score over Tata pipes:

• Product pricing

• Delivery time

• Value for money

• Product availability

• Profit margin for dealers

• Incentive plan

0

1

2

3

4

5

6

FAR BETTER

BETTER

AT PAR

SLIGHTLY POOR

VERY POOR


2012


(16)Customer rating for market leader in PVC Pipes

FINOLEX PIPES:

COMMENT:

• Key strengths are quality, on time delivery, demand, availability and advertisement.

• The company should work on attractive incentive plans for dealers.

00.5

11.5

22.5

33.5

44.5

EXCELLENT

VERY GOOD

GOOD

AVERAGE

POOR


2012


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.

00.5

11.5

22.5

33.5

44.5

EXCELLENT

VERY GOOD

GOOD

AVERAGE

POOR



(17) Basis on which dealers recommend commercial pipes to

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 don’t go by the profit margin and recommend brands that

deliver quality.

60%



Basis on which dealers recommend commercial pipes to their customers

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 don’t go by the profit margin and recommend brands that

40%

QUALITY

PROFIT MARGIN


2012

7 0 0 0 7 1

their customers.

60% of the dealers are influenced by profit margin on the basis of which they recommend

Only 40% of the dealers don’t go by the profit margin and recommend brands that



(18) Promotional strategy that Tata

its new products.

INTERPRETATION:

• Effective ways for Tata pipes, to promote its new product is through T.V. commercials &

hoardings.

0%

5%

10%

15%

20%

25%

30%

35%

40%



) Promotional strategy that Tata pipes should use to make customers aware of

Effective ways for Tata pipes, to promote its new product is through T.V. commercials &

Series1


2012

7 0 0 0 7 1

make customers aware of

Effective ways for Tata pipes, to promote its new product is through T.V. commercials &



(Since plumbers were not comfortable

focus group interview

held and the following information was obtained

(1)Pipes recommended mainly for bath

INTERPRETATION:

• Plumbers mostly recommend PVC pipes, mainly

non rusting nature & easy installation.

• Steel pipes are recommended only where it is particularly required.

0%

10%

20%

30%

40%

50%

60%

70%

STEEL PIPES



PLUMBER’S REVIEW

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) :

Pipes recommended mainly for bathroom fittings:

Plumbers mostly recommend PVC pipes, mainly due to their light weight, heat resistant,

& easy installation.

Steel pipes are recommended only where it is particularly required.

STEEL PIPES

PVC PIPES

40% 60%


2012

7 0 0 0 7 1

answering the questionnaire, we had to conduct a

with 10 of them in Jamshedpur. An unstructured interview was

light weight, heat resistant,

Steel pipes are recommended only where it is particularly required.

Series1



(2)Recommended steel pipe

(on basis of quality)

(on basis of price)

INTERPRETATION:

• Customers who want quality product are advised for Tata pipes.

• Price conscious customers, are advised for Jindal pipes.

60%



steel pipe brands:

(on basis of quality)

Customers who want quality product are advised for Tata pipes.

Price conscious customers, are advised for Jindal pipes.

90%

10% TATA PIPES

JINDAL PIPES

SURYA PIPES

RST

NEEZONE

BANSAL

BHUSHAN

LOCAL

30%

60%

10% TATA PIPES

JINDAL PIPES

BANSAL

BHUSHAN

RST

SURYA

NEEZONE

LOCAL


2012

7 0 0 0 7 1

Customers who want quality product are advised for Tata pipes.

TATA PIPES

JINDAL PIPES

SURYA PIPES

NEEZONE

BANSAL

BHUSHAN

LOCAL

TATA PIPES

JINDAL PIPES

BANSAL

BHUSHAN

SURYA

NEEZONE

LOCAL



(3)Brands and their

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.

10%

35%



and their percentage of customer complaints: (annually)

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.

5%

20%

15%

8%7%

10%

TATA PIPES

JINDAL PIPES

BANSAL

BHUSHAN

RST

SURYA

NEEZONE

LOCAL


2012

7 0 0 0 7 1

(annually)

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.

TATA PIPES

JINDAL PIPES

BANSAL

BHUSHAN

SURYA

NEEZONE

LOCAL



(4)Does dealers give commision for recommending particular brand?

INTERPRETATION:

• 70% of the plumbers’ recommendations are influenced by dealers & retailers.

• Only 30% of the plumbers give true

30%



Does dealers give commision for recommending particular brand?

70% of the plumbers’ recommendations are influenced by dealers & retailers.

nly 30% of the plumbers give true advices.

70%

YES

NO


2012

7 0 0 0 7 1

Does dealers give commision for recommending particular brand?

70% of the plumbers’ recommendations are influenced by dealers & retailers.


2012


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.

0

20

40

60

80

100

120

140

160

0 100 200 300 400

sales in thousands (y)

sales in thousands (y)


2012


SWOT ANALYSIS OF TATA PIPES

� STRENGTH: TATA pipes rules the market on following key areas.

• Quality.

• Brand Equity.

• Value for money.

• Demand

� 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.


2012


COMPETITOR IDENTIFIED IN STEEL PIPE SEGMENT: JINDAL PIPES

COMPANY PROFILE:

• Jindal Pipes and Tubes has been a recognized name in pipe industry. Jindal Pipes and

Tubes carry a range of products to suite customer needs. Product range includes PVC

pipe & Fittings, M.S Black pipes, Slotted pipes, G.I pipe & Fittings, Sanitary fittings,

Floor Tiles, Kitchen Sinks. Jindal Pipes Ltd.(JPL), was incorporated in 1970 with an

installed capacity of 3000 TPA for manufacture of Steel Pipes & Tubes. Since then, the

company has brought phenomenal development in Pipe Manufacturing Process through

many innovative measures.

• Today, it has annual turn over of Approx. Rs.682 Crores. Induction of sophisticated state-

of-the-art technical know-how and highly motivated & skilled work force have made

possible for the company to augment its production capacity to 2,50,000 TPA.

• It is now synonymous with India's one of the best and largest manufacturer of ERW,

Black and Galvanized Steel Pipes & Tubes in different thickness from 2.00mm to 10.00

mm having an outer Diameter ranging from 1/2" to 14" NB as per specifications of ISI,

API, BIS which confirms to the various international standards. Further, pipes upto 20"

NB can be supplied from the Group Company-Maharashtra Seamless Limited.

• The company recieved 'Regional Special Shield' for export performance for the year

1977-78 and from 1984 to 1988 . It was also awarded the 'Certificate for Export

Excellance 1990-91' by the Export Engineering Promotion Council.True to Jindal

Group's way of life, quality is at the helm of affairs as a perpetual phenomenon. It is our

constant endeavor to produce pipes of the highest quality and sustainability. To achieve

this, we stick to strict quality standards and in-house evaluations and we continously

educate and train our workers.Jindal Pipe has been constantly executing need based and

demanding orders for Pipes to meet the requirements of sectors like Agriculture, Oil,

Public Health, Housing,


2012


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


2012


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


2012


RECOMMENDATIONS

�� TATA TUBES SHOULD DECREASE ITS LEAD TIME (DELIVERY TIME)

• DEALER’S 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 AN D ALSO

TRY FOR BETTER STOCKING OPTIONS.

�� TATA TUBES SHOULD EMPHASIZE ON BETTER LEARNING OF D EMAND

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 STRAT EGIES,

• MAJORITY OF THE DEALERS AND CUSTOMERS HAD SIMIMAR

COMPLAINTS OF HIGH PRODUCT PRICES.


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 MANUFACTURI NG 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.


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 : www.tatatubes.net

www.tatasteel.com

www.google.com

www.tiindia.com

www.indianinfoline.com

www.tube.net.com


2012


Marketing Project

Documents

Transcript of Marketing Project