Reshu Report

7/30/2019 Reshu Report

1/54

Summer Internship Project

Market Mapping in JindalStainless Steel way Ltd.

Submitted in partial fulfillment of PGDM program2011-13

Submitted by

RESHU MANTRI

19/067

Company Mentor : FacultyMentor :

Mr. Payoj Jindal Ms.Shweta JhaGeneral Manager (Sales & Marketing) Assistant Professor

Jindal Stainless Steelway Ltd.

Apeejay School of ManagementNew DelhiJuly 2012


2/54

ACKNOWLEDGEMENT

I would like to express my sincere thanks to JINDAL STAINLESS STEELWAY

LIMITED, Gurgaon for giving me an oppurtunity to carry out summer internship

program in their organization. The whole period spent with the organisation has been of

immense learning experience about the Indian Steel Market.

I sincerely thank Mr. Payoj Jindal (General Manager, Sales and Marketing) and Ms.

Tanu Vyas (Corporate Communicatoion) for sharing their valuable knowledge that gave

me better understanding of the topic.

My special thanks goes to Ms. Shweta Jha and all my faculty members without whose

help this project could not have seen the light of the day.

Regards

Reshu Mantri

INDEX


3/54

S.No CONTENT Page No.

1) Executive Summary Pg 4

2) Market Mapping Pg 5 - 8

3) Stainless Steel Pg 9 - 19

4) Company Profile Pg 20 - 31

5) Research Methodology

6) Data Analysis and Findings

7) Conclusion and Learning

8) Recommendations

9) Bibliography

10) Annexure


4/54

EXECUTIVE SUMMARY

Jindal Stainless Steelway Ltd., has brought convenient, customized, just-in-time

services to the doorsteps of its valued customers. The company has partnered with

STEELWAY, a company in the business of Distribution and Processing of Steel, to

service its customers with exact Slit, Cut to size, Polished Stainless Steel sheets, Coils

and Blanks with highest standards of processing tolerances.

The project was about Customer Demand Mapping for the financial year 2012 13 and

2013 14. This project served dual purpose, first was to bring out the customer wise

actual demand across India and second was to help organization in Augmentation of

finishing line.

The project proved to be great learning experience which taught me that it is not easy to

make the Customer Accountant Managers understand the purpose of the Project and at

the same time it was very difficult to get it filled through them as they were very busy. So

it was necessary to have patience, flexibility and right amount of aggression.

I would like to sincerely thank my corporate mentor Mr. Payoj Jindal, whose constant

guide and support has been instrumental in the endeavor.


5/54

CHAPTER 1 MARKET MAPPING

Market Mapping is a distinct, well-codified methodology for organizations seeking to

align their marketing strategies and processes and/or product development priorities more

closely with the problems that customers need to solve most urgently. It is particularly

well suited to situations in which the primary mode of product or service distribution is

via indirect channels (e.g., distributors, value-added resellers, retail, etc.).

Market Mapping integrates the best of three generalized approaches to marketing process

improvement. Its explicit objective is to generate organizational momentum for

specific change, while avoiding the pitfalls to which each approach alone can be

vulnerable:

1. Introspective marketing process mapping and product feature/function

analysis can provide an essential baseline of information and insight. By itself,

however, this approach lacks traction in confronting and examining managerial

bias and does not provide the collective 'reality check' of fresh, direct customer

input.

2. In-depth market researchon its ownis often rejected, marginalized, or

ignored when it conflicts with managers' trusted "mental models" of customer

needs and market dynamics. It can also fail in accurately identifying customers'

deepest problems and the alternative solutions and strategies they employ to solve

them.

3. Facilitated executive brainstorming, strategy, and decision-making

workshops, while valuable in context, can easily float off into feel-good fantasy,

or devolve into political infighting among product, function, or other

organizational "silos." Such sessions tend to be useful only when ventilated by

plenty of new data on both internal processes and external realities.


6/54

DEFINITION OF MARKET MAPPING

A research method that identifies the key customer requirements in a market and

how existing products are positioned in that market. Market mapping is an

important way of identifying gaps in the market.

PURPOSE OF MARKET MAPPING

The idea of market Mapping is to identify gaps in the market, to show where a

sector is overcrowded and to stop the producer from becoming over-reliant on one

sector. Gaps can also provide entrepreneurs with the opportunity to embark on a

new business venture.

STAGES OF MARKET MAPPING

Market Mapping is a rapid, low-cost tool for generating sufficient relevant

knowledge. The various stages involved in Market Mapping are:

1) Project Planning

2) Market Study and Research

3) Networking, Identification of Target Companies and Referrals

4) Approach, Screening and Interview Candidates.

5) Compiling Data and Benchmarking

6) Presentation of Talent and Monitoring Report

7) Upgrade to full search if required

BENEFITS OF MARKET MAPPING

An understanding of the competitive environment and the key players within the

sector is critical not only for insight into future trends and competitive threats, but

also to better evaluate growth. Most executives have an in-depth knowledge of

what is happening in their markets from years of experience in their industries, yet

the exercise of market mapping validates general understanding, provides


7/54

important contextual data, unearths lesser known players, and serves as a guide

for development of growth strategies.

Market mapping is the act of identifying the key players within an industry

or subsector.It is a practice that is both broad and specific at the same time: the

scope is purposefully large that is, to understand the competitive environment in

your market but the goal is to prepare far more than a mere phonebook or list of

companies.

While it is usually most productive to evaluate your current market and

competitors, it is particularly valuable to map adjacent markets and regions in

which you are not currently active, as these could be excellent areas of growth, or

the source of future competitors.

Market Mapping is a custom-made solution for clients who are not sure of the

possibility of finding the ideal person or when a future role will be open soon,

not necessarily with a fully defined profile. It is the process of collecting market

information by confidentially assessing prospective candidates from a distance

without interviewing them or conducting a full search.

It saves time and offers valuable insights into the market that can facilitate

decision making in case of confidential projects. Market Mapping takes a

strategic, forward-looking approach to crafting market driven strategy and

segmentation, focusing on where customers are going, instead of where they

have been.

In addition, the Market Mapping process goes well beyond simply gathering and

reporting market data by providing a collaborative, team based process for

bridging the gap between information and action.


8/54

APPLICATIONS OF MARKET MAPPING

A crucial component in any segmentation project is to correctly identify which customers

should be segmented in the specified market. A market map defines the distribution and

value added chain between the ultimate user and suppliers. This takes into account the

various buying mechanisms found in a market. Market mapping is used in market

segmentation to help companies identify the target group(s) for their segmentation

project.

It includes a number of additional applications, such as:

a) Tracking changes in the channels to marketb) Determining your performance on these routes to marketc) Illustrating where sales and marketing resources are allocated.

These findings can be compared to key competitors' resource allocation. The Market

Mapping process goes well beyond simply gathering and reporting market data by

providing a collaborative, team-based process for bridging the gap between

information and action.

HISTORY OF STEEL


9/54

In 1913, when Steel Researchers were experimenting with different types and qualities of

alloys, Harry Brearley, in Scheffield, England, discovered Stainless Steel. While

experimenting with increasing levels ofchromium, he found out that at over 12 percent

chromium, the steel gained an exceptional resistance to acid corrosion. It was his work

that found the foundation for the development of a range of steel grades particularly

resistant to corrosion.

By the late 1920s, two types of Stainless Steel had been found to be most versatile and

useful; Martensitic Stainless Steel (chromium content of 13 18 percent) and

Austenitic Stainless Steel (18 percent chromium and 8 percent nickel). Today, Stainless

Steel is a generic term given for a group of corrosion resistant steels containing aminimum of 10.5 percent of chromium, which creates a passive, self renewing film of

chromium oxide around the steel at the atomic level, thereby impeding the iron from

rusting.

Technical development over the decades has followed two paths: the incremental

improvement of the standard grades invented in the 1920s as well as the development of

entirely new grades. However, the core attributes of Stainless Steel that is strength,

heat and corrosion resistance, formability, aesthetic appearance and low

maintenance have not changed with technical developments. Stainless Steel producers

still continue to do research into chemical composition, Innovations in Stainless Steel

making technologies, new rolling technologies, quality control and lower costs.

STAINLESS STEEL A DIFFERENT TYPE OF STEEL


10/54

Like all types of steel, Stainless Steel is not a single metal but an alloythat is a

material made from two or more separate elements alloyed or melted together.

All steels have in common a major ingredient Metal Iron to which a small amount of

Carbon has been added. Stainless Steelwas invented early in the 20th century when it

was discovered that a certain amountof the metal chromium (usually a minimum of 11

per cent) added to ordinary steelgave it a bright shiny gloss and made it highly

resistant to tarnishing and rusting. Thisrust-resisting property which we call corrosion

resistance is what sets stainlesssteel apart from most other forms of steel.

Not a Coating

It is important to appreciate that stainless steel is a solid material and not a special

coating applied to ordinary steel to give it stainless properties. Conventional steels

and indeed, several other metals, are often coated or "plated" with white metals such

as chromium, nickel or zinc to protect their surfaces or to provide other surface

characteristics. While such coatings have their own benefits and are still widely used,

the danger exists that the coating can be penetrated or damaged in some way, such

that its protective effect is undermined. The appearance of stainless steel can, however,

vary and will depend on the way it is made and finished.

Stainless Steel is Everywhere

The rust-resisting characteristic gives StainlessSteel its name. However, soon after its

discovery, it was realised that the material had many more valuable properties which

make it suitable for a vast range of diverse uses. In fact, the number of uses to which

stainless steel can be put are almost limitless, a point which can be illustrated with just a

few examples:

In the home:

Cutlery, dishes and other tableware

Kitchen sinks

Pans and cookware

In the town:

Bus shelters, telephone booths and other street furniture


11/54

Lifts and escalators

Subway trains and station infrastructure

In Industry:

Equipment for the manufacture of food products and pharmaceuticals

Plant for the treatment of potable and waste water

Fuel and chemical tankers.

Series/Grades of Stainless Steel

Three grades of Stainless Steel are widely used with varying alloy content

Three Distinct Series of Stainless Steel

200 Series 300 Series 400 Series

Manganese 5.5 - 12 % 2% maximum 1% maximum

Nickel 1 - 4 % 6 - 22 % 0.75% maximum

Chromium 10.5 - 20% 15 - 25 % 10.5% maximum

Copper 2% None None

Iron Balance Balance Balance

Industry Scenario Widely used in Asiaas an alternate to300 series, recentlydemand picking upin the Westernmarkets.

Most Widely usedglobally butexpensive givenhigh Nickel content.

Lower input costsbut high productioncosts.

Applications Automobiles, Tubesand Pipes, Utensils,Household goods.

Utensils, Tubes andPipes, Oil and GasSector.

Automobiles,Coinage, Consumerdurables, Blades.

Types of Stainless Steel


12/54

Stainless Steel grades are essentially alloys of iron with more than 10.5% chromium.

These grades may contain additional elements of nickel, manganese, carbon, nitrogen and

silicon. They can further be modified for special purposes by addition of molybdenum,

titanium, niobium, silicon, sulphur, etc. A wide range of these grades have been

developed based on specific requirements. These are classified into following categories

based on their micro structure:

a) Martensitic Stainless Steel: These are plain chromium grades containing

11.5% to 18% of chromium with relatively high carbon content. Initially

developed for cutlery, these are well suited for applications requiring high

hardness and resistance to abrasion and erosion. These grades are magnetic and

display fair cold forming characteristics. Although these can be hardened by air

cooling, oil quenching is sometimes used to assure uniform hardening. These

grades can be welded but require stress relieving after welding. They exhibit their

best corrosion resistance in the hardened condition and perform well in mildly

corrosive environment. Martensitic Stainless Steel grades are commonly used for

knife blades, turbine blades, surgical instruments, fasteners, shafts, spindles,

valves and pins.

b) Austenitic Stainless Steel: These grades are characterized by superior

corrosion and oxidation resistance, weldability, ductility and toughness

compared to Martensitic Stainless Steel. They effectively withstand attack of

organic acids (acetic, lactic, citric, etc.), exhibit good resistance to oxidizing acids

(nitric acid) and fair resistance to mineral acids (sulphuric acid). Austenitic

Stainless Steel grades are non magnetic in annealed condition but depending on

composition, they may become mildly magnetic when cold worked. These

Stainless Steel grades possess good high temperature properties such as creep

strength and resistance to oxidation or scaling.

They also exhibit excellent low temperature ductility and impact strength.

Austenitic Stainless Steel grades can be readily fabricated by bending, drawing,


13/54

spinning, punching, drilling, machining and welding can be readily polished to a

high finish. There are two broad categories: Chrome - Nickel (300 series) and

Chrome - Manganese (200 series). Typical applications for this category include

food processing, chemical plants, hospitals, kitchenware, etc. Chrome -

Manganese Stainless Steel is the fastest growing of all Stainless Steel categories.

Its applications include buildings, furniture, buses, trains, and kitchenware.

c) Ferritic Stainless Steel: These are non-hardenable plain chromium grades

with chromium content varying from 10.5% to 28% and with low carbon

content. These are magnetic and exhibit better resistance to corrosion than

formability, weldability and corrosion resistance is between those of Martensitic

and Austenitic types. The ferritics can be polished or buffed to achieve high

lustre.

d) Duplex Stainless Steel: These grades contain relatively high chromium

(between 18% and 28%) and moderate nickel (1% to 8%). This combination

of Ferritic and Austenitic structures is called Duplex. These grades exhibit high

resistance to stress corrosion cracking and chloride ion attack and have higher

yield strength than that of Austenitic of Ferritic steel grades. These properties

combined with suitable design lead to material saving. High quality fabrication

and welding are possible if the operator is trained well. These grades are used in

Marine Applications, Offshore Platforms, Paper and Pulp Industry,

Chemical, Petrochemical and Desalination Plants.

Stainless Steel Making Process


14/54

Stage 1 The Melt Shop

The raw material - recycled stainless steel and ferro-alloys - is transformed into molten

metal in an electric arc furnace with a melting capacity up to 160 tonnes. The molten

metal is then transferred to the converter. Alloying elements are added in the converter to

obtain the chemical composition. We can produce all of the standard grades. The ladle

metallurgy consists of adding some alloying elements to obtain the exact chemical

composition and the correct temperature before the continuous casting process. Then the

liquid steel is poured, cooled and solidified during the continuous casting process. At this

stage the maximum width is determined. The solid steel is cut with an oxygen flame into

slabs up to 30 tonnes in weight, up to 12 m long, 200 mm thick and up to 2 m wide.

Some slabs are then ground to remove surface defects before all of them are shipped to

the hot rolling mill.

Stage 2 Hot Rolling Mill

This process takes place at Arcelor Mittal Chtelet and initially involves slab reheating

in a furnace at an average temperature of1250 C. A first reduction in thickness from

200 to 40 mm is achieved through several passes on the roughing mill.The thermal tunnel

maintains the temperature of the slab reduced-in-thickness. Then the slab passes througha series of 7 rolling stands to reach approximately 3 mm in thickness (1.2 min / max 13

mm). The metal is cooled down and wound to form coils or"black coils ", because of

their oxidized surface. The coils are then shipped to the annealing and pickling plant.

We can also sell black coils.

Stage 3 First Annealing and Pickling

Black coils are heated in the annealing furnace. This step recovers the mechanicalproperties of our stainless steels. The oxides on the surface are broken down by shot

blasting. The pickling process in acid baths followed by water cleaning and air drying

results in white coils with no surface oxide, this is the HRAP finish. At this point, the

white HRAP coils can be sold without cold rolling, or further surface finishing.


15/54

Stage 4 Cold Rolling and Final Annealing

The thickness of white coils around 3 mm is reduced again with the cold rolling

mill process. The thickness can reach 0.3 mm minimum, by rolling several times in the

reversible cold rolling mill in order to achieve the thickness ordered by the customer and

the appropriate surface quality for the final use. After cold rolling, the annealing

operation recovers the mechanical properties of our stainless steels. A final pickling then

removes the annealing oxide and gives a matt aspect (2D). Another option is to anneal

under a protective atmosphere, to retain the cold rolled appearance for applications

requiring bright annealed finishes (BA). The annealing process recovers ductility and

formability required by customers for processing. In this case no oxide is created and no

pickling is necessary. The strip is very bright. The skinpass operation guarantees the

flatness and the coil surface. One, two or three passes can be necessary. By selecting

different skinpass rolls a surface finish suitable for visible applications, such as

household appliances can be produced (2B or BA).

Stage 5 Metal Finishing

During finishing the material is given its final surface finish appearance, as required by

the customers order. There are different operations such as: polishing, brushing or other

special processes. The last operation is where the final form of the material is achieved:

Coils can be cut to length to obtain sheets, blanks or discs. Coils can also be slit to width

in strip and narrow strip and blanks. Through other processes, we can produce other

finished products like tubes, made by forming and then welding the flat products.

Defects in Stainless Steel


16/54

Defect is a mark or flaw that spoils the appearance of Stainless Steel. Some of the

common defects in Stainless Steel are:

a) Sliver-B

DEFINITION

Thin arrow-shaped slivers or straight line defects varying in length, severity and location.

B type slivers are due to burning at the reheating furnace and are generally present near

the edges up to 300mm from each side of the strip, without repetition. The thicknesses of

these slivers are 200-400 microns with 5-25mm length.

REASONS

Grain boundary oxidation/grain boundaries breakage.

High sulfur in the fuel used in re-heating furnace.

REMEDIES

Avoid overheating (maintain recommended reheating practice).

Maintain proper length of flame and do not allow it to touch the slab.

Aimed sulfur is as low as possible.

Addition of boron helps to make compound with Cr (Cr2B), due to this compound

grain boundaries are more strengthened.


17/54

b) Rolled in Scale

DEFINITION

A surface defect consisting of scale partially rolled into the surface of the sheet.

REASONS

Inadequate high pressure in water descaling in hot strip mill.

Excessive reheating time and/ or too high a temperature.

Inadequate shot blasting.

REMEDIES

Optimum reheating, descaling and shot blasting.

c) Pitting

DEFINITION

A rough uneven surface, which is produced by either scale pits or, rolled in scale or,

refractory particles, is termed as pitting.


18/54

REASONS

Rolled in scale and scale pits due to poor descaling after reheating of the coil at

the hot rolling division.

Refractory particles, rolled at the hot rolling division.

Improper descaling

Foreign particles embedded while rolling

REMEDIES

Proper descaling of the slab/ coil during hot rolling.

Appropriate pressure for the water used for descaling, removal of scale/ refractory

particles completely. Avoid nozzle bending

Maintain proper nozzle angle

Avoid chocking of nozzles

d) Water/Acid Stain Mark

DEFINITIONStains on the plate affecting one or both surfaces, often due to water or acid from the

pickling bath or due to improper drying.

REASONS


19/54

Improper drying from Pickling bath

Low acid concentration

Poor cleanliness and metal content in the pickling bath

Poor water quality in the quenching station Poor washing of water surfaces.

REMEDIES

Good water quality

Ensure high-pressure water spray.

Proper Acid concentration

Ensure proper drying

e) Waviness

DEFINITION

Not flat. Strip deviating from the flat surface along the direction of rolling and exceeding

the standard tolerance for flatness.

REASONS

Rolling deformation on the edges are more than the center portion of the coil. Uneven

quenching at the Annealing & Pickling line may also generate some waviness.

REMEDIES

Rolling deformation should be same throughout the thickness of the strip.

Appropriate quenching.


20/54

CHAPTER II COMPANY PROFILE

The Group Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal,

has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present

multi-billion, multi-national and multi-product steel conglomerate. The organization is

still expanding, integrating, amalgamating and growing. The group places its

commitment to sustainable development, of its people and the communities in which it

operates, at the heart of its strategy and aspires to be a benchmark for players in the

industry the world over. The Jindal Organization today is a global player. Its relentless

quest for excellence has reaped rich benefits and it is today one of the worlds most

admired and respected groups within the steel fraternity.

Jindal Stainless: Like stainless steel the company is versatile in its thought process,

strong and unrelenting in its operations, environment friendly in its manufacturing

process, bright, shining and beautiful in its community support activities. The list of the

properties of stainless steel is endless, just as their values are all encompassing. Jindal

Stainless has always been committed to innovation and progression, research and

development. Their innovations are admired beyond the geographical boundaries of the

country. No wonder they are the strategic partners of global leaders by choice. Their

achievements narrate a story of their determination to succeed and the passion to win.

They will continue to leverage their opportunities in creating excellence that the world

cannot even think about.

Today they are the largest integrated stainless steel producer in India, tomorrow theywill rule the world. Jindal Stainless, a $780 million plus ISO: 9002 & ISO: 14001

company is the flagship company of the Jindal Organization. The company today has

come a long way from a single factory establishment, started in 1970. As the numero uno

it has taken on the task of making stainless steel a part of everybody's life by taking a 360


21/54

degrees approach from production of raw materials to supply of architecture and lifestyle

related products.

Major Facilities

Hisar Plant, India :At Hisar, Jindal Stainless has India's only composite stainless

steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled and

Cold Rolled Coils, 40% of which are exported worldwide.

Precision Strips

The company produces stainless steel precision strips in various grades. These

strips are produced in narrow 20-Hi mills in the precision cold rolling unit.

Blade Steel

The Company is the exclusive producer of stainless steel strips for making razor

and surgical blades in India.

Coin Blanks

Besides supplying CR Strips to the Government of India, the plant at Hisar houses

a coin blanking line for supply of coin blanks to the Indian Mint and Mints in the

global markets.

Vizag-India : Jindal Stainless has a Ferro Alloy Plant at Vizag with an installed

capacity of 40,000 metric tons per annum. Vizag unit uses chrome ore supplied

from captive Sukhinda chrome mines and sells output to Hisar plant as well as in

the export market.

Odisha Project - India : Jindal Stainless has set up a Greenfield integrated

Stainless Steel project in the state of Odisha with capacity of 1.6 million tons per

annum. Odisha ferro alloys division consists of ferro alloys manufacturing

facilities including ferro chrome, ferro manganese and silicon manganese and

waste heat recovery based and thermal captive power plants.

Major tasks of Jindal Stainless:

1. Developments of high value products to serve niche market.

2. Quality up gradation of existing products enabling global acceptance.

3. Cost reduction by process development, optimization and refinement to improve


22/54

competitive edge.

4. Technology enhancement to increase the quality production.

5. Market segment improvement by interacting and sharing knowledge with customers

and assisting them in trouble shooting operation. In addition to the above, R&D division

closely interacts with reputed national and international laboratories/scientific

institution/universities to avail expert services for critical investigation

Research and Development

The R&D division plays a pivotal role in retaining and consolidating companys

leadership position in the Stainless Steel industry. This is achieved through continuous

up-gradation of quality, processes, and services and through product innovation to

develop new products at competitive costs. Cross-fertilization of knowledge between

production, quality control and commercial units in order to maintain global standards

has been the guiding principle of the R&D function.

Development of high value products to serve niche markets

Quality up-gradation of existing products to enable enhanced global acceptance

Cost reduction by process development, optimization and refinement to provide a

consistent competitive edge

Technology enhancement to increase quality production Foster growth and develop new market segments through knowledge sharing with

customers and to assist them in their operations and applications of our products In

addition to the above, the R&D division closely interacts with reputed national and

international laboratories/ scientific institutions/ Universities to avail expert services and

knowledge for critical investigations.

QUALITY ASSURANCEUnderstanding customer requirements and supplying products as per their requirements is

ensured with the help of Quality Assurance and Quality Control groups. Across the entire

business chain of supplies, operations and marketing, appropriate quality assurance

systems are in place to ensure correctness at each step of the cycle. ISO 9001-2000

Certification of the plant is a testimony to this. ISO 14001 and OHSAS 18001 Systems


23/54

Certification of the plant assure their commitment towards the environment and for

providing a safe workplace for their employees. For ensuring quality at every step, the

production processes are constantly monitored and controlled to ensure that the finished

products are as per customers requirements. The plant has well equipped laboratories

with a battery of modern equipment such as Optical Emission Spectrometers, X-Ray

Fluorescence analyzer, Carbon Sulphur analyzer, Hydrogen analyzer, Nitrogen and

Oxygen analyzer, Corrosion Testing facilities, Universal Testing machine, Ultrasonic

Testing unit, Impact Testing machine, all types of Hardness testers, Surface Roughness

tester and E-cupping testing machine. Well documented procedures ensure correctness in

testing and certification of the products.

SUBSIDIARY COMPANIES

The company has following subsidiaries, namely Jindal Stainless UK Limited, Jindal

Stainless FZE, Dubai, PT Jindal Stainless Indonesia, Jindal Stainless Italy s.r.l., Jindal

Stainless Madencilik Sanayi Ve Ticaret A.S., Turkey, Jindal Stainless Steelway Limited,

Jindal Architecture Limited, Austenitic Creations Private Limited, Green Delhi BQS

Limited, and Parivartan City Infrastructure Limited.


24/54

INTRODUCTION TO SERVICE CENTRE

The Steel Service Centre Industry in India is fast developing into an inseparable connect

between the primary steel producers & its end users. The emergence of steel service

centers in India is a trend which is changing, beyond recognition, the way this vital raw

material, steel, is going to be bought & sold in the country in future. Service centers buy

raw material from the mill and process in different forms like slitting, cut to length and

polishing. Also undertake conversion activities for the producing mills to convert their

materials as per the customers requirements. In nut shell, they perform the role of a

pivotal link between the steel producers & end users.

Till few years ago, around 90 95% of Steel, in India, was distributed to the end users by

either the producing mills directly or by the unorganized sector comprising of big &

small distributors or stockiest. The materials were generally supplied in their mother

form, as produced and would be further processed by end users through local standalone

processors, to make them usable for end applications. Today, most of them have forged

alliances with international companies in steel servicing business to bring ready to use

processed steel directly to their customers doorsteps

OBJECTIVES OF STAINLESS STEEL SERVICE/ COIL CENTER

To provide distribution services in stainless steel to meet specific requirements of

customers effectively & efficiently.

To provide technical services to target customers to reduce their total cost.

To provide processing services to the Parent Steel Company & offer high quality

slit, cut to size, precision leveled stainless steel materials in various embossed

patterns & shapes with different surface finish & unmatched processing tolerance.


25/54

To provide different grades of stainless materials in small lots on just in time

basis, by breaking the bigger weight input units, to suit customers requirement.

JINDAL STAINLESS STEELWAY LIMITED: A SERVICECENTRE

Jindal Stainless Steelway Limited, an ISO 9001:2008 & 14001:2004 certified, the

domestic JSL service network, offers convenient, customized just-in-time services to the

doorsteps of its customers. The company is into the business of distribution and

processing of steel, to serve its valued customers with exact Slit, Cut to Size, Polished

Stainless Steel sheets, coils and blanks conforming to highest standards of processing

tolerances.

They have Service Centre facilities in Gurgaon, Mumbai, Chennai and Vadodara that are

installed with state-of-the-art, high-end Precision Slitting, Cut to Length, Blanking, and

Polishing lines supplied by leading equipment manufacturers such as FIMI & IMEAS of

Italy and IDH & Daehwa of South Korea. Each Service Centre has a capacity of 135,000

tons per annum and in addition, Gurgaon Service Centre has a Polishing Capacity of

6,000 tons per annum.

Some of the services offered are:

Cutting, Processing and Distribution of all types of Stainless Steel by adding

value to them.


26/54

VISIONWe are committed to provide world class ethical & quality service for our customer

delight.

Treat employees as 'partners' in progress

Be a good corporate citizen.

MISSION

To strive to be a world class service center of stainless steel through constant learning &

quality improvement.

VALUES

Credibility

Commitment

Customer satisfaction

Continuous Improvement

Teamwork

PRODUCTS

Types of Stainless Steel offered:


27/54

a) Cold Rolled (CR) Mother and Slit Coils / Sheets / Cut Blanks

b) Hot Rolled (HR) HR Plates / Coils

Grades offered

200 series 201, 202, 204Cu, Jsl, AUS(J1), J4, Jsl Tube, Jsl U, JT

300 series 301, 301L, 304, 304H, 304L, 309S, 310, 316L, 316Ti, 321

400 series 410, 420, 409L, 410S, 430, 436L, 439, 441

Width Ranges Available

Standard Width available are 1000mm, 1250mm, 1270mm.

Any other customized width in CR ranges from 50mm to 1250mm.

Length Ranges Available

Standard length available are 2500mm, 5000mm and 6000mm.

Any other customized length in CR ranges from 500mm to 6000mm.


28/54

Thickness Ranges Available

Max MinHRAP Coils 2.50 6.00HRAP Plates 4.00 50.0

CRAP Coils 0.40 4.00

Surface Finishes Offered

Surface

Finish

Definition

No. 1 Hot rolled annealed, shot blasted and pickled

2B Cold rolled annealed and pickled and skin passed; given anappropriate luster by again cold rolling

BA Bright annealed finish; processed with bright heat treatmentafter cold rolling

No. 3 Cold rolled annealed and pickled and polished with 100 to 120

grit

No. 4 Cold rolled annealed and pickled and polished with 150 to 180

grit

Scotch Brite Very fine hairline finish generated by polishing with rolls madeout of scotch brite material

Embossing Cold rolled annealed, pickled and given an appropriate embossedluster by embossing process

Antifinger Cold rolled annealed, pickled, coated with acryclic acid and

antifinger print

No. 8 Cold rolled annealed, pickled and polished to mirror finish

Competitors of JSSL

a) POSCO INDIA: POSCO India Private Limited is a subsidiary of POSCO,

the worlds fourth largest steel producer and one of the most competitive steel


29/54

companies. Posco signed a Memorandum of Understanding (MoU) with the

Government of Orissa in June 2005, to set up a 12 MTPA green field steel plant

near Paradip, Jagatsinghpur District, Orissa, with an estimated investment of USD

12 billion. The company will build a 4 million-ton per annum capacity steel plant

in Orissa, during the first phase of its project and expand the final production

volume to 12 million tons per annum. Posco India Pvt Ltd was incorporated on

25th August, 2005.

b) BHUSHAN STEELS : BHUSHAN Steel Ltd. formerly known as Bhushan

Steel and Strips Ltd. is a globally renowned one of the leading prominent player

in Steel Industry. Backed by more than two decades, of experience in Steel

making. Bhushan Steel is now Indias 3rd largest Secondary Steel producer

company with an existing steel production capacity of2 million tons per annum.

As one of the prime movers of the technological revolutions in Indian Cold

Rolled Industry, BSL has emerged as countrys largest and the only Cold Rolled

Steel plant with an independent manufacturing line (sheet width 1700 mm).

c) ESSAR STEEL : ESSAR Steel is a globally renowned steel corporation with

a production capacity of14 MTPA and footprint that straddles 5 continents -Asia,

Africa, Europe, America and Australia. Its Hazira Complex, in Gujrat is now

the 4th largest single location flat steel plant in the world. It commands

uninterrupted access to some of the worlds finest iron ore deposits. This ensures

self-sufficiency in operations and goes long way in delivering high-quality, cost

effective steel products. Its products find wide acceptance in sectors such as

automotive, white goods, construction, engineering and shipbuilding.

Future Outlook


30/54

Jindal Stainless Steelway Limited, one of the fastest growing subsidiaries of JSL

Stainless Ltd & has shown substantial growth in turnover over last years. The company

registered a gross turnover ofRs. 5 crores in the financial year 2011 -12.

Jindal Stainless Limited was the first to envision this big service opportunity in Stainless

Steel arena. The objective was to set up the service centre across India & outside to

provide customized stainless steel, in exact quantities & on exact time to the doorsteps of

its valued customers. JSSL is the largest stainless steel service center in India, which

serves different grades in tailor made forms, on just in time basis.

JSSL fourth service centre in Vadodra, Gujarat is in full operational state &serving the

industry with value added products like Embossing, Mirror finish etc. New Slitting line &

Circle cutting line will be soon installed at Vadodara service centre to cater tube &

utensils segment. To further increase the presence and capture the Indian market, JSSL

has opened a warehouse in Kolkata & will open new warehouse in Hyderabad soon.

The company is fully focused to increase the brand value of JSL for increase in market

share & to satisfy major SS demand driven segments. In same order, JSSL opening a

retail outlet in vicinity of Indias number one stainless steel trade market hub in Mumbai.

Retail outlet construction is almost 80% completed and it will become operational by

June 2012. The retail outlet will also used as order booking centre & display of our

products.

The service centre has achieved some mile stones in the last financial year 2011-12. JSSL

participated in Rice Pro-Tech Expo, 2012 at Bareilly, Uttar-Pradesh with a motive to

promote the use of stainless steel and has received an award ofGuest of Honour at

Event. The company has also achieved the highest ever sales in March 2012 in the history

of JSSL.

Our new parent mill facilities at Jajpur, Odisha is aptly poised to make the best of the

increased stainless steel demand advantage in the domestic market. The Odisha Plant has


31/54

high level of backward integration with ferro alloys and thermal power plant. As we

move forward, we plan to expand the existing stainless steel capacity at Odisha to 1.6

Million Tons. This Odisha Plant is one of its kinds with all the facilities under one roof.

Our parent mill Odisha also started supply of 1500 wider material in order to hone

business share. As per increase in capacity of our parent mill, JSSL has also taken

aggressive sales target for FY 12-13 which is 40 % higher than that of last financial year.

Indian economic parameters are robust and given our demographic profile, the economy

is poised to unfold newer horizons for future sustainable growth. Stainless steel

consumption in India currently stands around 2 million tons including patta market and

given the Indian government's prioritized focus on infrastructure development, the market

potential looks strong.

Indian markets are showing fast growing stainless steel demand and enormous future

growth potential as the industry succeeded to sustain its positive growth momentum on

the strong fundamentals of domestic demand from construction, automobile and

infrastructure sectors. As per ISSF, the per capita consumption of stainless steel in India

is 1.2 kg as compared to the world average of 4 kg and China's 5 kg. This low per capita

consumption of stainless steel in India presents immense opportunities for growth in

domestic stainless steel market.

The company is also focusing on its distribution channel to meet the specific requirement

of customers effectively & efficiently. JSSL started the material supply in Nepal &

Bhutan along with the existing sales offices in tier 2 cities with focus of customer value

management.


32/54

CHAPTER IV RESEARCH METHODOLOGY

Problem Definition

Should Mini Service Centres be setup to cater the needs of Existing Customers as wellas to attract Non- Existing Customers?

Approach to the Problem

a) Mapping the Current Demand of Jindal Stainless Steelway Ltd.

b) To identify Key Potential Customers.

c) To identify Demand for a Particular Service Region wise in order to suggest

Optimum Utilization of Machinery.

Type of Research Design

a) Exploratory Research This research is most commonly Unstructured and

Informal. It is undertaken to gain Background Information about the general

nature of the Research Problem. It is conducted usually when Researcher does not

know much about the problem and needs Additional Information.

In this project Exploratory Research is used as it involves communicating to

CAMs (Customer Accountant Managers) and getting Information from them

for better understanding of the Customers.

b) Descriptive Research It attempts to describe and explain conditions of the

present by using many subjects and questionnaires to fully describe a


33/54

phenomenon. It is concerned with describing the characteristics of a particular

individual, group, frequency of occurrence. This research is undertaken to provide

answers to questions of who, what, where, when, why and how.

In this project Descriptive Research is used as there are forms to be filled in Excel

format by Customer Accountant Managers (CAM) based on the Customer Base

they look after.

Sampling Technique

a) Sampling Universe/ Population A Population is the total collection of

elements about which we wish to make some inferences.

In this project the Population will be all the CAMS (Customer Accountant

Managers) of Jindal Stainless Steelway Ltd. in Vadodara and Gurgaon Service

Centres.

b) Sampling Size 15 Customer Accountant Managers together of Vadodara and

Gurgaon Service Centres.


34/54

FINDINGS AND ANALYSIS

1) Comparison of average consumption and JSSL dispatch in all the

four service centers in 2011-12


35/54

ANALYSIS:

Out of the four service centre Gurgaon has the highest dispatch of 2472 metric tons per

month and as Vadodara unit has been recently set up it has the least dispatch of 336

metric tons per month.

2) Market Share of JSSL all over India in 2011-12

ANANLYSIS:

Jindal Stainless Steelway Ltd. covers 49% of the entire stainless steel business in India

and is the highest earning subsidiary of Jindal Stainless Ltd. JSSL is the largest stainless

steel service center in India, which serves different grades in tailor made forms, on just

in time basis.


36/54




37/54

ANALYSIS:

By the end of this year it is expected that Mumbai would be giving highest

dispatch of 4323 metric tons per month and Vadodara Unit is expected to dispatch

772 metric tons from 336 metric tons per month.




38/54

ANALYSIS:

Based on the above graph it can be seen although the highest dispatch could be predicted

by Mumbai but there is wide difference between their potential and consumption of the

customers in that region. Gurgaon can give the best result as their potential is quite near

to the average consumption of their customers.

5) Growth of JSSL by 2012-13 and 2013-14

ANALYSIS:


39/54

On the basis of the data collected it is predicted that JSSL would grow 17% by

end of 2012-13 and 27% by the end of 2013-14. This shows that the company has

a bright future in the world of stainless steel.

6) Major Segments for which stainless steel is used by the customer

of JSSL


40/54

ANALYSIS:

As the pie chart shows Fabrication is the largest segment covering 71% of the pie

chart. Fabrication includes laser cutting, manufacturing, pharmaceuticals, textile

machinery, and chemicals. And trade is the second largest segment which covers

16% of remaining pie chart.

7) Series of stainless steel in demand by the customers in JSSL


41/54

ANALYSIS:

300 series is most widely used as it has excellent corrosion resistance and clean ability. It

is known as Food Grade Series and is used in Kitchenware. 200 series is used in building,

furniture etc. whereas 400 series is used in automobiles and architecture so their demand

is limited

8) Demand of major Finishes of stainless steel by customers in JSSL


42/54

ANALYSIS:

The major portion of the pie chart i.e., 78% is covered by No. 4 Finish which is a

Hair Line Finish that is most commonly used in Stainless Steel Industry. No. 8 is

a Mirror Finish which has an aesthetic appeal and covers a Niche Segment.

Scotch Brite is used for architectural purpose so has limited demand.

SWOT Analysis of the Study:

cvdfvfdvfvvvv

STRENGTH

Customer Account Managers had a MasterCell having complete details of theCustomers.

All the data collected are real, recent andstructured based on telephonic

communication.


43/54

STRENGTHMNBJ

CONCLUSION

This is the journey of new beginning. The experience of two month was really difficult to

explain in words. But I am trying to touch some portion of it. Summer Internship Process

was full of learning and gaining positive experience here at JINDAL STAINLESS

WEAKNESS

OPPORTUNITIES

THREATS

Details about all non existing customers werenot known because of lack of time and lack ofdetailed knowledge of Customer AccountManagers.

All information is based on primary data sothere might be possibility of error.

Direct Contact with Customer AccountManagers.

Live Project helped in better exposure.

Whether all Customer Account Managerswould fill the form on time or not.


44/54

STEELWAY LTD. Supervision here was very beneficial and most importantly even the

Interns were treated as a part of the professional environment.

I had joined Marketing Department of Jindal Stainless Steelway Ltd. where we started

working underMr. Payoj Jindal(General Manager, Sales and Marketing) who gave us a

live project on MARKET MAPPING. . He showed great trust on me by sharing live

company data with me and allowing me to prepare an analysis report on that. The trust

shown was a great motivation for the successful completion of my project. Ms. Tanu

Vyas (Corporate Communication) had supported and encouraged me throughout my

project and helped me out in all the problems related to the project.

In the first week of internship I got the complete knowledge about the company and

then visited the plant which is situated in Manesar.

There are 4 Service Centres of JSSL namely Mumbai, Chennai, Gurgaon and

Vadodara. Each of the Service Centres has Customer Account Managers (CAMs)

where each of them look after different customer base.

Two interns were assigned this project as the customer base was wide enough. As I was

one of the intern the regions assigned to me were Gurgaon and Vadodara unit. There was

an excel format designed by the company relating to market mapping and my work was

to follow up with the CAMs of regions assigned to me. On a total I had to get the format

filled from 15 CAMs including both the regions. The company gave me a list of the

CAMs along with their Names, Contact numbers and e-mail ids. Firstly Mr. Payoj had

sent a mail regarding introduction of this project and told that these project would be

handled by the trainees.

PURPOSE OF THE PROJECT

The project was about Customer Demand Mapping for the financial year 2012 13 and

2013 14. This project served dual purpose, first was to bring out the customer wise

actual demand across India and second was to help organization in Augmentation of


45/54

finishing line. This project would also help in making optimum utilization of the

machinery as their capacity would be reduced from September 2012. As the organization

is planning to set up new mini service centers this project would help them in taking this

decision to an extent.

MY ROLE IN THE PROJECT

My first work is to call up all the CAMs and give them brief of the form. After briefing

the form my major work was continuous follow up with the CAMs through reminder

mails and calls. Apart from this query handling regarding forms was another major task.

Next step was to compile all the forms, after compilation the most crucial part was to

study and analyze data so that a proper conclusion from the forms can be generated.

CHALLENGES

The challenges faced during this project was that CAMs were having hectic schedule

because of their sales target so I had to take many appointments regarding briefing up the

form but they kept on postponing filling up the form due to their respective targets and

month end pressure so I had to patiently remind them again and again to fill the form as

soon as possible as my internship was for a fixed period of time.

KEY POINTS OF THE STUDY

New application of stainless steel are emerging rapidly

There are various opportunities for business to grow in this industry.

Stainless Steel will change the face of India

LEARNING

It was a pleasure of getting trained in such a well established organization, and in such a

humble, healthy and supportive organization culture. This project helped me in getting

theoretical as well as practical knowledge. Initially, there were some discrepancies in the

data but due to excellent data management in the company; it took no time to track it up


46/54

as there is a MASTER CELL maintained by every CAM which consist ofupdated and

accurate information regarding each of his customer.

It also helped in improving Communication skills as well as building up Patience as I had

to manage reminding them according to their schedule because most of the time they

were busy in meeting or were at plant visit or at leave. I found this work very challenging

as I understood that it is not easy to convince people to get your work done.

The entire process also made me learn new analytical skills, and helped me gain more

knowledge about the new field of Stainless Steel which I had never explored before.

RECOMMENDATIONS


47/54

1) No.4 finish line should be shifted from Mumbai plant to Chennai plant. As

from the data it has been analyzed that there are only 90 existing customers in

Mumbai compare to 434 existing customers in Chennai.

2) From the data it can be seen that existing customers are not fully satisfied

as they are not purchasing their total consumption per month from JSSL so focus

must be given on existing customers to satisfy and retain them.

3) A new mini service centre can be set up at Bangalore where there is

already a customer base set and it would help in targeting other regions nearby.

4) As the data also shows many non existing customers in the region the

company must focus on targeting them.


48/54

BIBLIOGRAPHY

BOOKS:

Cooper R Donald and Schindler S Pamela (2006), Business Research Methods, M C

Graw Hill Companies (9th edition), pg no. 54 to 66

INTERNET:

http://practicalaction.org/mapping-the-marketaccessed on 7 May 2012.

http://tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-

market-mapping accessed on 9 May 2012

http://wiki.answers.com/Q/What_is_the_definition_of_market_mapping#ixzz1uuigSws9accessed on 9 May 2012.

http://www.steelworld.com/focus0706.pdf accessed on 10 May 2012.

http://tutor2u.net/blog/index.php/business-studies/comments/market-mapping-or-not-market-mapping accessed on 11 May 2012.

http://www.orissaminerals.gov.in/Download/SteelIndustry_Scenario.pdf accessed on 12May 2012.

http://www.arcelormittal.com/stainlesseurope/stainless-europe-at-a-glance.html accessedon 15 May 2012

http://www.reap.co.za/index.php?option=com_content&view=article&id=69:market-mapping&catid=35:services&Itemid=82accessed on 17 May 2012.

http://www.market-equity.com/#/2-market-mapping/4558240074accessed on 17 May2012.
http://practicalaction.org/mapping-the-markethttp://tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-market-mappinghttp://tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-market-mappinghttp://wiki.answers.com/Q/What_is_the_definition_of_market_mapping#ixzz1uuigSws9http://www.steelworld.com/focus0706.pdfhttp://tutor2u.net/blog/index.php/business-studies/comments/market-mapping-or-not-market-mappinghttp://tutor2u.net/blog/index.php/business-studies/comments/market-mapping-or-not-market-mappinghttp://www.orissaminerals.gov.in/Download/SteelIndustry_Scenario.pdfhttp://www.arcelormittal.com/stainlesseurope/stainless-europe-at-a-glance.htmlhttp://www.reap.co.za/index.php?option=com_content&view=article&id=69:market-mapping&catid=35:services&Itemid=82http://www.reap.co.za/index.php?option=com_content&view=article&id=69:market-mapping&catid=35:services&Itemid=82http://www.market-equity.com/#/2-market-mapping/4558240074http://practicalaction.org/mapping-the-markethttp://tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-market-mappinghttp://tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-market-mappinghttp://wiki.answers.com/Q/What_is_the_definition_of_market_mapping#ixzz1uuigSws9http://www.steelworld.com/focus0706.pdfhttp://tutor2u.net/blog/index.php/business-studies/comments/market-mapping-or-not-market-mappinghttp://tutor2u.net/blog/index.php/business-studies/comments/market-mapping-or-not-market-mappinghttp://www.orissaminerals.gov.in/Download/SteelIndustry_Scenario.pdfhttp://www.arcelormittal.com/stainlesseurope/stainless-europe-at-a-glance.htmlhttp://www.reap.co.za/index.php?option=com_content&view=article&id=69:market-mapping&catid=35:services&Itemid=82http://www.reap.co.za/index.php?option=com_content&view=article&id=69:market-mapping&catid=35:services&Itemid=82http://www.market-equity.com/#/2-market-mapping/4558240074


49/54

http://www05.abb.com/global/scot/scot227.nsf/veritydisplay/e4aa16e6ce26a980c125764a003a8bdc/$file/abb_sis_article_machinevisionnews_vol7_2002.pdfaccessed on 19 May2012.

http://www.marketmappingplus.com/mktgWithLists/targeting.html accessed on 25 June2012.
http://www05.abb.com/global/scot/scot227.nsf/veritydisplay/e4aa16e6ce26a980c125764a003a8bdc/$file/abb_sis_article_machinevisionnews_vol7_2002.pdfhttp://www05.abb.com/global/scot/scot227.nsf/veritydisplay/e4aa16e6ce26a980c125764a003a8bdc/$file/abb_sis_article_machinevisionnews_vol7_2002.pdfhttp://www.marketmappingplus.com/mktgWithLists/targeting.htmlhttp://www05.abb.com/global/scot/scot227.nsf/veritydisplay/e4aa16e6ce26a980c125764a003a8bdc/$file/abb_sis_article_machinevisionnews_vol7_2002.pdfhttp://www05.abb.com/global/scot/scot227.nsf/veritydisplay/e4aa16e6ce26a980c125764a003a8bdc/$file/abb_sis_article_machinevisionnews_vol7_2002.pdfhttp://www.marketmappingplus.com/mktgWithLists/targeting.html


50/54


51/54


52/54


53/54


54/54

Reshu Report

Documents

Transcript of Reshu Report