Usha Marten

8/22/2019 Usha Marten

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ACKNOWLEDGEMENT

I take this opportunity to thank the management of USHA MARTIN LIMITED for

giving me the opportunity to do this project at UML and in the due course I gain in

valuable experience and insight into the world of logistics, exports, and marketing.

There are many hands of support and guidance without whose help and co-operation it

would not have been possible to even start and let alone complete this project.

I acknowledge our extreme gratitude and indebtness to our guide Mr. Ashok Kumar

Gupta without whose guidance and cooperation this project would not have been

materialized.

I am also extremely grateful to Mr. Anuj Goel who was source of continuous guidance

and inspiration to me.

Last but not the least I would like to give my special thanks to my beloved parents and

friends for their continuous motivation and valuable suggestions.


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PREFACE

The study was conducted to know the supply chain processes and marketing mix

strategy & logistics constraints and suggestions for increasing the marketing about

awareness level and satisfaction level of the customer. The study also helps to know

about the features that would make a bright future prospect for USHA MARTIN

LIMITED.

I had given considerable thought and devoted good amount of time for this project and

will consider myself amply rewarded if the project is helpful for the organization for

which i conducted.

Date: -

Place: - (Rishikesh)


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DECLARATION

I, Rishikesh here by declare that this project has been done by me for the partial

fulfillment of Master of Business Administration (MBA) of IIMT, Management.

College, Meerut(U.P)

All the information collected and recorded in this project is based on actual fact and not

influenced by anyone. Data given in project report are relevant and related to

USHA MARTIN LIMITED (UML) and taken from its original records.

(Rishikesh)

TABLE OF CONTENTS


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Page

ACKNOWLEDGEMENT I

PREFACE II

DECLARATION III

TABLE OF CONTENTS IV V

INTRODUCTION 1

Objective 2

Strategic Goals 3

Need of the Study 3

COMPANY PROFILE 4 12

Company Profile 4

Usha Martin Dedication 5

Vision 6

Mission 6

History of UML 7 8

Present Status of Company 9

Particular about UML 10

Capacity of UML 11 Manufacturing Process of UML 12

SUPPLY CHAIN MACRO PROCESSES 13 23

Supply Chain Macro Process 13 15

CRM 16 18

ISCM 19 20

SRM 21 23

MARKETING MIX STRATEGY AND LOGISTICS 24 29

Concept & Practice in UML 24

Marketing Concept 25

Process flow Chart 26 27

Marketing Mix Strategy 28

Marketing Strategy Of UML 29


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Ps OF MARKETING MIX 30 53

Marketing Mix 30

Product 31 39

Price 40 41

Place 42 46

Promotion 47

Packaging 48 51

People 52 53

LOGISTICS 54 68

Logistics 54 55

Concepts 56

Importance of Logistics 57

Designing Logistics Strategy 58 60

Logistics Section 61 62

Warehousing 63 65

LOGISTICS CONSTRAINTS 66 67

RESEARCH METHODOLOGY 68 69

ANALYSIS & INTERPRETATION 70 73

DATA ANALYSIS 74 89

SWOT ANALYSIS 90 91

FINDINGS 92 93

RECOMMENDATIONS 94 96

LIMITATION 97

CONCLUSION 98

Appendix

Bibliography


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INTRODUCTION TO OUR PROJECT

We feel proud to complete our summer internship in UML, TATISILWAI, RANCHI.

I will opt. marketing as my major subject in IIIrd sem. so I did my summer training in

marketing department.

My project was headed as: - Supply chain macro processes & marketing mix

strategy and logistic constraints of USHA MARTIN LTD.

During this project I went to different departments such as: -

Purchase.

Sales and co-ordination.

Export and Import

Quality Assurance.

Packaging.

Dispatch.

Logistic.

I learnt a lot and enriched my knowledge about what actually happens in industries

like USHA MARTIN Ltd. people here were very co-operative and helped us a lot to

enhance our knowledge.

During our training I also found some pitfalls in the system of marketing mix, for which

we have tried to recommend some suggestions to overcome those problems. Hope these

may help the company to retain and remain as the best.


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OBJECTIVE

Being the future manager it is our utmost requirement to gain work experience and have a

feel of the present industries and add working skill to our personality.

To fulfill the requirement of our course circurriulm.

To have a complete corporate exposure and to know the functioning of different

department.

To study the marketing mix strategy and logistic constraints in UML and to make out

the flaws and recommend suggestions.


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STRATEGIC GOALS: -

The UMIL group ushered into the new millenium with the pledge of making USHA

MARTIN a world class manufacturing organization. By creating a learning

organization with the focus towards radical improvement in operation, growth, and

opportunity through new product development. Globalization compelled to confront a

boarderless world therefore companies needed to implement innovativeness in every field

like marketing, production, planning system to create a flexible organization, which can

quickly adopt itself to external changes. Therefore introduced programs like: -

TPM: - Total Productivity Maintenance.

ERP: - Enterprise Resource Planning. (Fully implemented)

NEED FOR THE STUDY:-

The present marketing environment is very fluctuating, not a single corporate sector is

able to protect themselves from the flourishing economic recession during 1998-1999,

and many European manufacturing has close down.

Earlier UML had complete monopoly of domestic market, but new emerged industries

started sharing his domestic share. Therefore there was a need to carry out the research

study to analyze the actual market situation in domestic market, whose product is

globally accepted. Analysis of the situation is done keeping in view the hypothesis such

as:-

Price and delivery are two important factors, which is affecting the domestic market

against their rivals. Market has been affected by the emergence of several new rivals as

well as by unstable present economic condition.


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COMPANY PROFILE

UML is the 2nd largest wire and rope manufacturer in the world and has the

largest variety in South East Asia. It is multi product, diversified engineering conglomerate with 10 production

units in India,1 in Thailand,1 in UK and 1 in Dubai.

It is saving valuable foreign exchange by exporting by exporting its products

to 42 countries like USA, Africa and Middle East, conforming to the strictest

product quality standards.

It got the ISO 9000 Certification by BVQI in 1994.

ICICI (BCB) did the business process re-engineering in 1996 and line systemwas set up to enhance performance.

With the modern concepts like TPM, value engineering, QC, suggestions

scheme, customer satisfaction and human resource development, UML is

trying to reach unparalleled heights.

UML is serving through a leading daily Prabhat Khabar, Krishi Gram Vikas

Kendra, Usha Martin Technical Institute.


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DEDICATION

TO CUSTOMERS: -

Committed to deliver reliable products satisfying customers requirements and desire.

TO OUALITY: -

Quality product is the USP of UML that helps in complying with international standards.

TO STAKEHOLDERS :-

Committed to enriching stakeholders value through synergic integration of business of

group with quality earnings on a sustained basis.

FOR SOCIAL WELFARE;-

Committed to preserve the environment and to improve the standard of rural people

where the group has its operations through its social welfare.


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Vision

In our chosen business, we shall retain market leadership in India and shall be globallycompetitive through customer orientation and excellence in quality, innovation and

technology

MISSION

ENRICHING LIVES

We will do our best to provide quality product and services,

Which will improve the life style of our users.

QUALITY IS OUR FIRST PRIORITY

We aim to achieve customer satisfaction by producing quality products.

No sale is a good sale unless it fulfills our customers expectations.

OUR WORD IS OUR BOND

Our dealers are our partners.

We en-devour to practice these golden rules in all our relations with others.

INTEGRITY IS OUR COMMITMENT

The conduct of our companys affairs must be pursued in a manner that command respect

for honesty and integrity.


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Looking Back - A Brief History

1960 - The Company was incorporated as Usha Martin Black (Wire Ropes) Limited

having its wire rope plant at Ranchi. The name was changed to Usha Martin Black Ltd. in

1979 and further changed to Usha Martin Industries Ltd.(UMIL) in 1983 .

1965 - UMIL promoted Usha Ismal Ltd. (UIL) in collaboration with CCL Systems Ltd of

UK for the manufacture of fittings and accessories, equipment for pre-stressed concrete

system, wire ropes and wire ropes splicing equipment at Ranchi. UIL merged with UMIL

in 1990 and became a division of the company

1971 - UMIL promoted Usha Alloy Steels Limited (UASL) for the manufacture of billets

at Jamshedpur. UASL merged with UMIL in 1988.

1975 - UASL acquired an ongoing rolling mill at Agra.

1975 - UMIL set up its Machinery Division at Bangalore for the manufacture of Wire

Drawing and allied machines in technical collaboration with Marshall Richards Barcro

Limited (MRB) of UK.

1979 - In order to obtain steady supply of wire rods for its wire rope plant, UASL set up a

Wire Rod Rolling Mill at Jamshedpur.

1987 - UMIL, alongwith Bihar State Electronics Development Corporation, promoted

Usha Beltron Ltd. (UBL) in collaboration with AEG KABEL of Germany for the

manufacture of Jelly Filled Telephone Cables.

1997 - UMIL merged with UBL w.e.f 1st October 1997.

2000 - Acquisition of specialty wire rope manufacturing plant in UK BruntonShaw.

2000 - Commissioning of 25 MW thermal power plant for captive consumption.


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2001 - Commissioning of 2nd SMS to enhance capacity and produce quality specialty

steel.

2003 - Usha Beltron Ltd Changed its name to Usha Martin Limited ( UML). UML

created Fine Cord Plasticated coated Fine wires, household wire, Polymer coated wire,

Fine Ropes & Bright Bars manufacturing facilities in Tatisilwai- Ranchi.


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PRESENT STATUS OF THE COMPANY

Usha Martin ltd. is the largest wire and wire rope manufacturing in India and Asia. It is

the second largest wore and wire rope manufacturing in the world.

At present, the group has three principle manufacturing divisions of wire and wire rope,

steel and cables.

Wire and Wire Ropes Division

Introduction

The ISO 9001-certified 100,000 MT / annum-manufacturing facilities at Ranchi (Eastern

India) is 2nd largest producer of ropes in the world. Since its inception, the division has

continuously developed and expanded its range of product offerings and is considered a

pioneer in certain classes of products in India. Steel wire ropes manufactured by the

division find wide applications in oil exploration, mining, elevators, Crane, fishing,

construction, load transportation and general engineering sectors.

Steel Division

A backward integration initiative, the Usha Alloys & Steels Division (UASD) at

Jamshedpur is one of the largest amongst secondary steel manufacturers of specialty steel

long products in India. With ISO 9002 certified facilities, UASD has pioneered the

unique process of steel making through mini blast furnace-arc furnace route, which

ensures superior quality of steel at a lower cost. UASD serves a range of industries like

automobile, general engineering, fasteners, railways, defense and power.


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PARTICULARS ABOUT UML.

Wire and wire ripe division, Ranchi.

Location Chotanagpur Plateau

Plant Area 112 Acres

Covered Area 16 acres

Nearest Town Ranchi (13 Km)

Nearest Railway Station Tatisilwai (1 Km)

Nearest Airport Ranchi (17 Km)

Nearest Highway N H-33 (8 Km)

Nearest Port Kolkata (412 km)

Power Contracted demand 8000 KVA

Source JSEB

Water 2400-3200 m3/day

Sources Subernekha River

Employees Strength 1521

Officers 292

Staff 58

Workers 1171


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CAPACITY OF UML

(Wire and wire rope division, Ranchi)

ROPE WIRE STRAND

CAPACITY / MONTH 3500 MT 3000 MT 800 MT

DIAMETER (mm) 2 to 16 22 to 28 1.2 to 15.2

TYPE galv/black galv/black galv/black

SALES TURNOVER FOR THE YEAR 2004-2005 (Domestic)

Quantity Values in lakhs

Rope 26194 MT 13939

Wire 25053 MT 7452

Strand 426995 MT 9743

Total 78242 MT 31134

SALES TURNOVER FOR THE YEAR 2004-2005 (Export)

Quantity Values in lakhs

Rope 34483 MT 195.89

Wire 6154 MT 24.70


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MANUFACTURING PROCESS IN UML

PROCESS FLOW CHART: -

WIRE ROD

SURFACE TREATMENT

GALVANISHING


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1. The supply chain macro process

The emergence of supply chain management has broadened the scope across

which the company makes dive trying to optimize performance across divi

sion, to the enterprise and now to the entire supply chain. This broadening

the scope emphasizing the importance of including processes all along the

supply chain when making decisions.

From an enterprises perspective all processes wither its supply chain can be

categorized into three broad areas; processes focused down stream processes

focused internally.

2. Processes focused upstream

We use classification to define the three macro supply chain process as

follows:

(a) Customer relationship management

Processes that focus on downspcan interactions bet the enterprise and its

customers.


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(b) Internal supply chain management:

Processes that focus on internal operations within one interpose.

(c) Supplier relationship management:

Processes that focus on up stream interaction bet the enterprise and its serf

pliers.


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Why focus on macro processes:

As the performance of an enterprise becomes more closely linked to the

performance of its supply chain, it is crucial that firm focus on these macro

process. After decades of focusing on internal processes, a firm must expand

the scope beyond entire supply chain to achieve breakthrough performance

the goal should be in creasing the total profitality of the supply chain.

Good supply chain management s not a zero sum game where are stage of

the supply chain increases the profit at the expense of the other; instead it is

a positive sum game where supply chain partners can increase their overall

level of profetatrility by working together.

Therefore to increase the travel the firm must expand their scope beyond

their enterprise and thinks in terns of all there three macro processes.


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Customer relationship Management (CRM)

The CRM macro process consists of processes that take place bet san

enterprise and its customers downstreams in the supply chain the goal of the

CRM macro process is to generate customer demand and facilitate

transmission and tracking of orders. Weakness in this process result in

demand being lost and a poor customer experience because orders are not

processed and executed retentively. The key processes under CPM are as

follows:

(a) Marketing

Marketing processes involves decisions regarding which customer to target,

how to target customers, and what products and how to offer, how to price

products, and how to manage the actual compugn targeting customers.

Successful software vendors in the marketing area within CRM provide

analytics that improve the marketing decisions on pricing, product

profitability and customer profitability among other functions.

(b) Sell:


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The sell process focuses on making on actual sale to a customer (compared

to marketing where processes are more focused on planning who to sell and

what to sell). The sell process includes providing the sales fore the

information they need to make a sale and then executing the actual sale.

Executing the sale may require the sales force (or the customer) build and

configure the orders by choosing among a variety of orders and features. The

sale process also requires such functionality as the atritety to quote due dates

and access information related to a customer order.

(c) Order management:

The process of managing customers orders as they how through an

enterprises important for the customer to mark his order and the enterprise to

plan and execute order demand from the customer with the from the

customer with the supply from the enterprise. Order management soft wares

available earlier were womdled by legally systems or had been a order

management systems have emerged with additional functionality that

enables visibility of orders across the often humorous order management

systems that exists within a company.


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(d) Call/Service Center:

A call centre is often the primary point of contact between a company and its

customers. A call/service center helps customers place orders suggest

provides intimation on order states.

The aforementioned CRM processes are crucial to the supply chain as they

cover a vast amount of interactions bet an enterprise and its customers. The

customers must be the starting point when trying to increase the supply

chain surplus because all demand and therefore revenue, ultimately arises

process in the starting point when improving supply chain perform once.


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Internal Supply Chan Management (ISCM)

ISCM IS focused on operations internal to the enterprise. ISCM includes all

processes involved in planning for and fulfilling a customer order. The

various processes include in ISCM are as follow:

(a) Strategic Planning:

The goal of this process is to plan resource availability in the supply chain

network. The decisions may include where to locate plants and warehouses,

what type of facilities to build and what markets to serve from each facility.

Although these decisions are made less frequently; yet the impact on supply

chain performance can be write large and is felt potentially for years.

(b) Demand planning:

This set of process in-valves forecasting future demand. It also includes

decisions to manage demand such promotions planning.

(c) Supply planning:

The supply planning prices taken as on input the demand forecasts

produced by demand planning and the resource made available by the


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strategic planning and then produces an optimal plan to meet this demand.

Factory planning and invenpry planning capable supply planning software.

(d) Fulfillment:

Once a plan is in place to supply the demand it must be executed. The

fulfillment process links each order to a specific supply source and means of

trans partition.

(c) Field Service:

Finality after the product has been delivered to the customer it eventually

must be services. Service processes focus on setting inventory levels for

spare parts as well as scheduling service calls.

Given that the ISCM macro processes aim to fulfill demand. That is

generated by the CRM macro processes. When forecasting demand,

interaction with CRM is essential as the CRM application are touching the

customer and have the most data and insight on customer behavious.

Similarly the ISCM processes should have a strong integration with the

SRM macro process. Supply planning, fulfillment, and field service are all

dependent on suppliers and therefore the SRM macro processes.


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Supplier Relation Management (SRM)

SRM includes those processes focused on the interaction between the

enterprise and suppliers that upstream is the supply chain. There is a very

not rating supplier constraints are crucial when creating internal plans. The

major SRM processes are as follows:

(a) Design Collaboration:

The goal of this process is to improve the design of products through as the

joint selection (with suppliers) of components that have positive supply

chain characteristics such as ease of manufacturability or commonality

across several and products. Other design collaboration activities include the

sharing of engineering changes orders bet manufactures and its suppliers.

This eliminates the costly delays that occur when several suppliers are

concurrently designing components for the manufactures product. Good

collaboration at this stage can create huge value because 80% of the product

cost is determined at the design stage.

(b) Source:


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The source process qualifies suppliers and helps in supplier selection,

contract management and supplier evaluation. A key goal is to analyze the

amount that an enterprise spends with each supplier, often reveling valuable

trends or arias of improvements.

Suppliers are evaluated along several key criteria including lead time,

reliability quality and price. This evaluation helps improve supplier

performance and aids in supplier selection. Compact management is also an

important part of sourcing as many supplier have complex details that must

be tracked (such as price reductions for reaching certain volume customers).

(c) Negotiating:

Negotiation with suppliers involve many steps starting with a request for

quote. (RFQ). The negotiation process may also include design and

execution of auctions. The goal of this process is to negotiate an effective

contract that specifies price and delivery parameters for a supplier in a way

that best makes the enterprise needs.

(d) Buy:


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The buying process executes the actual procurement of materials from

suppliers. This include the creation, management and approval of pees chase

orders.


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(e) Supply collaboration:

Once an agreement for supply is established bet the enterprise and a

supplier; supply chain performance can be improved by collaborating on

forecasts, production plans, and inventory levels. The goal of collaboration

is to ensure a common plan across the supply chain.

Significant improvement in supply chain performance can be achieved it

SRM processes are well integrated with appropriate CRM and ISCM

processes. The theme of integrating the three macro processes is crucial for

improving the supply chain performance.


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MARKETING CONCEPT

The marketing concept holds that the key to achieving its organizational goals consists of

the company being more effective than competitors in creating, delivering and

communicating superior customer value to its chosen target markets. It crystallized in

many colorful ways since its inculcation.

UML follows the line of all these marketing concepts with due adherence. Let us

examine some of these marketing concepts with respect to the organization.


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PROCESS FLOW CHART

DIFFERENT DEPARTMENTS

SALES / HO / BRANCH OFFICE / PRODUCTION

PRI

ME

D

E

L

I

V

E

R

Y


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Marketing is a societal process by which individuals and groups obtain what they need

and want through creating, offering and services of value with others.

Peter Drucker a leading management theorist puts it this way.

There will always, one can assume, be need for some selling. But the aim of marketing

is to make selling superfluous. The aim of marketing is to know and understand the

customer so well that the products or services fits in and sells itself. Ideality, marketing

should result in a customer who is ready to buy. All that should be needed then is to make

the product or service available.


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MARKETING MIX STRATEGIES

PROMOTION MIX

OFFERING MIX

THE FUTURE IS NOT AHEAD OF US. IT HAS ALREADY HAPPENED.

UNFORTUNATELY, IT IS UNEQUALLY DISTRIBUTED AMONG COMPANIES,

INDUSTRIES AND NATIONS.

PRODUCTS

SERVICES

PRICES

SALES

PROMOTION

ADVERTISEMENT

SALES FORCE

PUBLIC

RELATIONS

DIRECT MAIL

DISTRIBUTION TARGET


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MARKETING STRATEGY OF UML(RANCHI)

Every organization makes some strategy for marketing its product. These strategies

depend upon various decisions on the basis of their marketing mix tools. So a proper

marketing strategy is very important for a company, for the purpose understanding the

concept of marketing is very necessary.


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MARKETING MIX

The set of marketing tools the fire uses to pursue its marketing tools the firm uses to

pursue its marketing objectives in the target market.

Mc carthy classified these tools in 4 broad groups that he called the 4 Ps of marketing.

PRODUCT

PRICE

PLACE

PROMOTION

Later two more Ps were added to the lot.

PACKAGING.

PEOPLE.


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PRODUCT IN THEORY

PRODUCT: -

A product is anything that can be offered to a market to satisfy a want or a need.

Products that are marketed include physical goods, services, experiences, events, persons,

places, properties, organization, information and ideas.

At UML the product wire, strand and rope all are produced with strict focus on the

customer specifications and their requirements. The product line goes deep as far as

strands, slings and ropes and ropes are concerned. It has been evaluated further in the

report.

PRACTICE IN USHA MARTIN

UMLs products have been accepted worldwide. Almost 46 countries are its regular

customers for the rope. USA & Europe are the biggest markets. The company believed in

the philosophy of producing the right product for the customer.

Product is done as per the ordering information which contains specification regarding.

Size

Construction

Loading

Lay Direction

Tensile Strength

Core

Length

Standard


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SIZE: -

It is defined by the nominal diameter of which the rope is required for the manufacture,

UML offer a wide range of production of rope, wire and strand of different diameter.

ITEMS SIZE (in mm)

ROPE 2 TO 116

WIRE 22 TO 28

STRAND 1.2 TO 15.00

PRODUCT PROFILE: -

USHA MARTINs product offerings including following items: -

Wire Rope

Wire & Strand

Slings

Bright Bar

Wire Rod

Straight length

Cable

(UML at Ranchi basically deals with rope, wire and strand & silings.)


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VARIOUS PRODUCT OF UML & ITS APPLICATIONS

PRODUCT RANGE

APPLICATION

WIRE

BALL BEARING : BEARING INDUSTRY

NEDLE WIRE : NEEDLE INDUSTRY CYCLES

STEEL SPRING WIRE : SPRING

PRODUCT RANGE : APPLICATION

CYCLE SPOKE WIRE : CYCLE INDUSTRY

MOTOR CYCLE SPOKE WIRE : MOTOR BIKE INDUSTRY

LOW CARBON & HIGH WIRE : VARIOUS INDUSTRIES

STAPLE PIN WIRE : STAPLE WIRE


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ROPES & STRANDS

GUID ROPE : AERIAL

LOCKED COIL WIND ROPE : MINES

AERIAL HAULAGE ROPES : AERIAL ROPEWAYS

OIL DRILLING ROPE : OIL DRILLLING SECTOR

BRIDGE ROPES : BRIDGES

ENGINEERING ROPES : CRANES, WIRELESS MAKING

FISHING ROPES : FISHING

ELEVATOR ROPE : HOISTING

EXCAVATOR ROPE : MINES

CARGO LIFTING : DOCKYARD.


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SOURCES OF RAW MATERIALS

RAW MATERIALS

Steel Wire Rod (90 to 96%) : UML, Jamshedpur

Steel Wire Rod (4 to 10%) : Imported from Germany, Japan etc.

Fiber Core : M/S Chhotanagpur Wire Rope, Arrah Gate, Ranchi.

Other Raw Materials (zinc) : M/S Hindustan zincs & other supplies 25 %

And balance is imported.

PROCESS FLOW CHART

SURFACE TREATMENT


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WIRE ROPE

A wire rope is manufacture through spring of strand over a central core. The

strand is formed by spinning of wires around a central wore. Thus a wire rope is made of

three components.

Wire : - Single filament of the rope.

Strand: - Spring of filament in a predetermined way gives rise to strand.

Core : - This is the central strings around which spinning of strand is done to form rope.

PRODUCT APPLICATION: -

Underground mining, surface mining, mooring

Onshore and offshore drilling, fishing, elevators.

Cranes, Aerial haulage, track installation.

Suspension bridge.


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WIRE AND STRAND

Wire and strand remain the core business focus at USHA MARTIN. With its state of the

art manufacturing unit at Ranchi and its extensive market reach, the company has been a

significant player in the wire market. Wires are single filaments drawn from a wire rod.

To make a wire of specific diameter, a wire rod of certain diameter is taken. After

cleaning it is passed through several dies to make the wire of desired diameter size. A

strand is made by the spinning of wires over a central wire known as the king wire.

Several outer wires are helically laid over the king wire to form a strand of desired

diameter size. The number of wires used and the manner in which they are laid from the

strand construction.

PRODUCT APPLICATION: -

a. Electric Industry

Cable armoring farmed wires.

Cable armoring rounds wires.

ACSR core wires.

Earth wire strands.

Ground- stay wire strands.

b. Spring Industry

Spring steels wire (heat treated to suit customer requirement).

Plain carbon steel.

Alloy steel.


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c. Pre-stressed Single Wires / Stranded Wires.

Pre-stressed single wire stranded wire mainly used for :-

Bridge poles

Railways sleepers.

Cooling towers.

d. Shaped Wires

Shaped wire for spring washers/ circlips/gates/special sieves mess piston rings/ flexible

cables.

e. Needle Industries

Needle wires for the manufacturing of hosiery needles, wing needles, knitting needles,hooks and surgical needles.

f. Electrode Industries

Poly carbon steel wires.

Special grade welding wires.

Stainless steel wires.

Cycle Industries

Cycle spoke wires.

Cycle spike wires

Chain rivet wires

Mudguard wires.

Pedal bar wires.

g. Bearing Industries

For manufacture of Ball/ Roller / Needle Bearing / Ball bearing wires coils.


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h. Fastener Industries

CHQ Grade wires for fasteners.

i. Telecom Industries

Galvanized steel wire for telegraph and telephone lines.

j. Power Industries

Armoring of Cables.

For Aluminum Conductors.

k. Construction Industries

Pre-stressed concrete girders for roads, river and railways bridges and flyovers. Pre-stressed concrete domes, slabs silos, hangars, aqueducts, viaducts & railway sleepers,

concrete poles, Hume pipes, bridges.

l. Automobile Industries

For the manufacture of Ball/roller/ needle bearings/balls bearing wire-coils, wire which

cater to the spring industry, different auto spoke wire for motorcycles and mopeds,

shaped wires in High Carbon, Alloy Steel grades for Spring washers, Circlips, Grates,

Special Sieves, Meshes, Piston rings, Flexible Cables.

m. General Engineering

Needle wires used for the manufacture of Hosiery Needled, Sewing Needles, Knitting

Needles, Hooks, Fishing Hooks and Surgical Needles, Nylon coated wires for binding

application for books, diaries, calendars, dossiers etc. and nylon coated paper.


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PRICE IN THEORY

The entire focus of the consumer remains concentrated on this very area. Since the

market comprises of different earning groups the marketer should keep all the factors

responsible before deciding on the price.

Sell value not price.

At UML the above mentioned principle can always be seen into effect. At UML where

pricing is a key factor the company has established a pricing department which works

along with the sales co-ordination department to stet or assist others in determining

appropriate prices.

PRACTICE IN UML

In the comparison to other wire and wire rope manufacturing companies, UML products

are highly priced because UML has got the ISO 9001 certification, due to which it has

maintain a certain quality standard which leads to high price.

The pricing is done by the Kolkatta head office. Head office prepares the price list

according to region wise and customer wise taking into consideration.

1. Standard product.

2. Discount.

3. Credit items.

4. Competitors price.

5. Channel and number if dealers in each channel.


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PRICE LIST

ROPE PRICE

Elevator Rope Rs 70000/MT

General engineering Rs 60000/MT

Winding Ropes Rs 75000/MT

Fishing Rope Rs 45000/MT

Shipping Rope Rs 42000/MT

Marble mining rope Rs 47000/MT

Crane Rope Rs 63000/MT

Trawler rope Rs 46000/MTLCWR Rs 136848/MT

STRAND PRICE

PC Strand (3*3 ply) Rs 21000/MT

PC Strand (12.7m) Rs 28000/MT

LRPC Strand (12.7m) Rs 28000/MT

Earth Wire Strand (10.98m) Rs 27000/MT

Earth Wire Strand (9.55m) Rs 31000/MT

ACST Rs 27500/MT


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PLACE IN THEORY

What is a market? The definition doesnt seem to confine itself in a few words because

the word market has as such no boundaries, for a layman a market refers to a place where

goods and services are sold in lieu ofmoney. Here place doesnt only confine to its

market area but also to the ends of the distribution channel which helps in reaching the

final products to the consumers.

At UML place refers to its establishments in the country and around the globe, which

have been mentioned later in the report. It also refers to the warehouses used by the

organization to carry on its activities.

PRACTICE IN UML

UML follows a systematic procedural step in the planning its product in a particular

market or in building up a new customer.

It proceeds as follows: -

1. Market survey to know the prevailing market condition.

2. Study of competitor channel used by them and their pricing strategies.

3. Developing its own channel.

4. Creating awareness in customer about the product features which ultimately makes

them pay premium price.

UML has every varieties of customer in India and the company occupies number one

position in the Indian market with the share of 80% and 4th position in the world market

of export with a market share of 2% in the entire world.


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MAJOR CUSTOMERS

DOMESTIC

WESTERN REGION: -

Common India Limited, Mumbai.

Parikh & Sons, Bhavnagar.

Premier Mills & Stores, Ahmedabad.

Fortuna Engineering Industries, Mumbai.

Jindal Stripps.

ONGC, Ankleshwar.

Mezgoan Docks, Mumbai.

Essar Steels, Surat.

Great Eastern Shipping Corporation, Mumbai.

Mukund Steels Limited, Kalwe.

ACC, Adilabad.

Reliance Industrial Infrastructure, Jamnagar.

Nuclear Power Corporation of India.

Western Coal fields Limited.

NORTHERN REGION: -

Hindustan Electro Graphite Limited, Mandideep.

Akashdeep Rajasamand, Rajasthan.

BHEL, panipat.

Vee Sales Corporation, Kathgodam

Hindustan Copper Limited.

Roshan Jain & Company Limited.

Maruti Udyog Limited.

Northern Coalfields Limited.

SOUTHERN REGION: -


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United Marine Traders, Kollam.

Kec International Limited, Atmakul.

Larsen & Tourbo Limited.

Johnson Lifts private Limited, Chennai.

Marine Trade Link, Kottayam.

K.V. Ratnam, Karnataka.

EASTERN REGION: -

Indians Ropeways and Company limited, Kolkatta.

Ferro Scrap Nigam Limited, Dhanbad.

Til Limited, Kolkatta.

Key Pu Enterprises.

Eastern Coalfields.

HCL, Talchar.

NorthEastern Coal fields Limited, Margrita.

Unimetch Lifting Equipment, Howrah.

Otis India Limited.

Philips India Limited.

Steel Authority of India Limited.

Indian Iron and Steel Company Limited, Burnpur.

HEC, Ranchi.

Tata Iron & Steel Company Limited, Jamshedpur.

Oil India Limited Duliaja.

Coal India limited.

Central Coal field Limited.

OVERSEAS

AFRICA: -

ALEXANDRIA.


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ONNE.

MOMBASA.

DURBAN.

TINCAN ISLAND.

APAPAPORT.

DARES SALAM.

EUROPE: -

AERBILJAN.

COPENHAGEN.

BERGEN.

WORKSOP.

FELIXSTOUUE.

BAKU.

BREMERHEAVEN.

AMERICA: -

PHILADELPHIA.

VANCOUUER.

HOUSTON.

LOS ANGELES.

PORTLAND.

NEW ORLEANS.

OAKLAND.

EDMONTON.

CHICAGO.

PORPUS CHRISTI.

HALIFAX.

TORONTO.


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NEW YORK.

BARRANQUILLA.

MARACAIBO.

MONTREAL.

BOSTON.

AUSTRALIA: -

BRISBANE.

FREEMANTLE.

MELBOURNE.

SYDNEY.

AUCKLAND.

MIDDLE EAST: -

DOHA.

DAMMAM.

MUSCAT.

ABU DHABI.

JEBEL ALI.

DUBAI.

BAHRAIN.

KUWAIT.

ASIA: -

COLOMBO.

PORT PENANG.

KEELING SEAPORT.

SINGAPORE.

HAIPONG.


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ASHOD PORT.

HO CHI MIN.

BIRGUNG.

KAOSHIUNG.

PROMOTION IN THEORY

The essence of promotion is to appeal to the customer in order to enhance sales through

the various medias and mediums.

Since UML deals in the manufacturing of industrials gods the promotion is entirely

different with respect to the consumer gods, even through the organization has

undertaken a lot of such promotions tools.

PRACTICE IN UML

The product type in which UML deals constitutes quality and safety conscious customer.

Since UML has monopoly in Indian market and that because of its quality products.

UML doesnt have any advertised in television or radio or print media.

UML takes the following activities as its promotional tools.

1. Participate in trade fair in India as well as abroad.

2. Company performance through its web site (www.ushamartin.com)

3. It takes sales promotion by providing allowance, guarantee, discount & credit to

customer.

4. Arranging periodic dealers meetings.
http://www.ushamartin.com/http://www.ushamartin.com/


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PACKAGING IN THEORY

Most marketers treat packaging as an element of product promotion strategy. The

activities of designing and producing the container for a product involve a lot of

creativity, which helps the organization in establishing a benchmark for itself. What the

package should basically be or do for the particular product must be on size, shape,

material, color, text and brand mark.

At UML packaging is the prime focus area. With respect to the customer requirement and

specification the material is packed. As far as export is concerned the packaging is done

with respect to the environmental factor also. All these factors help in promotion of the

product and enhance its market share.

The various reason for the growing uses of packaging are: -

Self service.

Consumer affluences.

Company and brand Image.

Innovation opportunity.


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FLOW CHART OF WIRE PACKAGING AND DISPATCH

IN RESPECT OF NON ROPING WIRE.

Home Wire For Export

Coil Cutting Coil Cutting (as per requirement)

Coil Binding / Strapping Strapping

Weightment Weightment(Weight entry in the system) (Weightsheet handed to QA)

Oiling (as per requirement) Oiling (as per requirement)

Packing Packing & Bundling of Coils

Stacking Stacking

In respect of loading advice In respect of loading

From sales co-ordination from sales co-ordination

Segregation Segregation

Physical inspection Putting of computerized export

Checking for site, s/o, sl.no. & Wt. Tags as per site / sales order / sl.no.


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Loading Loading

Making of Excise Invoice Documentation

at Sales Co-ordination dept. At Sales Co-ordination

PROCEDURE FOR PACKAGING AND PAINTING OF WIRE FOR

DIFFERENT TOWN.

ZONE COLOR PACKAGING PROCESS

Delhi Brown Double layer with ordinary hossian.

Kolkatta Green Double layer with ordinary hossian.

Chennai White Double layer with ordinary hossian.

Nagpur Black Double layer with ordinary hossian.

Mumbai Blue Double layer with ordinary hossian.

At UML the packaging process is done as per the customers specifications

and requirements to achieve and excel the best international quality in packaging to

enhance the product image.

The steps or the procedure that are undertaken while packing the gods are: -

Reel packing / covering.

Strapping.

Marking.

Reel material.


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Surface finish

Buckled flange.

Broken / damaged flanges.

The Various Packaging Material Used are: -

PINE (EXPORT) & MANGO (DOMESTIC) WOODS.

Wooden rolls (gutka).

Wooden sleeper.

Wooden blocks.

Single reels weighing more than 20mt.to be provided with steel.

Reel support on both the flanges as per drawing.

Brown two ply corrugated paper.

Blue colored hdpe hossian.

Blue hdpe after overlapping it.

Black gar strips.


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PEOPLE IN THEORY

Manufacturer, suppliers, wholesalers, retailers and the customers along with a lot ofmiddleman comprise this category. They are the one who produces the goods and

services and they are the one who finally consumes it even.

UML takes all necessary steps to keep its people happy, contented and satisfied. Be its

employees, suppliers, dealers, agents or its customers. When we talk of customer

relationship management and supply chain management UML follows all these from the

very core.

PRACTICE IN UML

The entire process of marketing is carried on keeping prime focus on the customers; they

are the one who is going to consume the end product. But even though the organization

has to maintain good healthy relationship with the suppliers, its transporters and all other

channels and middlemen who enable the organization to encase its image through

reaching out to the end user.

As such the process at UML is blindly oriented towards its customers. The production, packaging

etc. all has their prime focus on the customers.

The Otis elevator contract has enabled the organization to develop a brand image for

itself, because in the era of cutthroat competition such a prestigious contract says it all


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about the organization. Example of the people oriented services provided by the

organization are.

Vidyasagar Setu (Kolkatta).

Nugachiya (Bhagalpur).

Naini (Allahabad).

Krishi Gram Vikas Kendra.

Nicco Bank (Kolkatta).

The above example are just a few to be mentioned in the wide rang of achievements of

the organization. It has been seen in the organization that apart from all dominating

factors that influence a business firm the term people comes first. That is the essenceof the organization.


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LOGISTICS

Logistics management is essentially an integrative process that seems to optimize the

flow of materials and supplies through the organization well as its operations to the

customer. Essentially it is a planning process and as an information based activity.

Requirements from the market place are translated into production requirements and then

into materials requirements through this planning process.

It is now recognized that for the real benefits of the logistics concept to be realized,

there is a need to extend the logic of logistics upstream to suppliers and downstream to

the final customers. This is the concept of the supply chain management.

In practice, the terms logistics and supply chain management are now used

interchangeably, so the institute of logistics (1998) gives the following definition.

Logistics is the time related positioning of resources, or the strategic management of the

total supply chain. The supply chain is a sequence of events intended to satisfy a

customer. It can include procurement, manufacture, distribution and waste disposal

together with associated transport, storage and information technology.

The council of logistic management provides a better definition, hinting at a wider

process including more upstream areas: -

Logistics is the process of planning, implementation and controlling the efficient cost

effective flow of raw materials, process inventory, finished goods and related information

from point of origin to the point of consumption for the purpose of confirming to

customer needs.


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The Institute of Logistics again broadens this definition in the following way :-

Logistics is the time related positioning of resources or the strategic management

of the total supply chain. The supply chain is the sequence of events intended to

satisfy a customer. It can include procurement, manufacture, distribution and wastedisposal, together associated with transport, storage and information technology.

Logistics relates to goods, people manufacturing capacity, information being in the

right place, at the right time, in the right quantity, at the right quality, and at the

right price.

LOGISTICS

SUPPLIER

The Institute of Logistics flow chart description of logistics.

SOURCIN

G

RAW MATERIAL STOCK

PRODUCT

STOCK

PRODUCTION (M.

M.)

PHYSICAL

DISTRIBUTION

CUSTOMERS RECYCLING


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CONCEPT

Before the Second World War the term logistics was an unknown term. In those days,concept of logistics management was developed to maintain a sound supply of weapons,

and other essentials for army who were fighting all around the world. Later on the

concept was entered in the world of business and the word business logistics was

coined.

Today logistics is the backbone of almost every product unit and about 15% - 20% of

total cost of a company is nothing but its cost for logistics.

Logistics include: -

The service involved with effective movement of materials and information from

source to the consumption.

The processes of managing the total supply chain to increase efficiency and providing

best support to the end users.

The competitive strategy needs to meet customer demand. It is a determining factor in

product / service and market development.

Management of both logistics and the supply chain management are undergoing a radical

change. Logistics links the factory to the customer and supplier to the production.

The concept and activities of logistics have been so well accepted that they are often

absorbed else where in the corporate organization.


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GROWING IMPORTANCE OF LOGISTICS: -

Historically, organization put all their efforts into making products and gave little thought

to the ways that these were passed to the customer. Distribution was an avoidable cost of

doing business. Peter Drucker, recognizing this situation in 1962, described physical as

the economys Dark Continent and said that this formed the most sadly neglected, most

promising area of business.

Reducing cost was perhaps the initial incentive for the organizations to examine their

logistics, but there was a fuller list of reasons includes:-

Organization realization that moving and storing products is expensive and these

costs can be reduced.

A growing emphasis on customer satisfaction which inevitably relies on efficient

logistics.

Development in operation, e.g. JIT & TQM, this needs new approaches to logistics.

A general trend towards the integration of operations including strategic alliance

partnership and collaborations.

A realization that decision about supply chain has a strategic significant for the

organization.

Changing attitude towards transport increasing congestion on roads, government

policies of increasing the real cost of road transport privation of the rail networks etc.

Improved systems and communications especially EDI, but including item coding

and electronic point of sales (EPOS).

Substantial growth of international trade, with growing power of free areas such as

the EUROPEAN UNON and the North American FREE TRADE AREA.


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DESIGNING LOGISTICS STRATEGY

Having recognized that logistics has a strategic importance, the next is to set about

designing a strategy. The logistics strategic concerns decisions about the following

areas:-

1. Customer services.

2. Facility location.

3. Inventory policy.

4. Transportation.

A more general view that a logistics strategy consist of all the long term decisions that

affects the supply chain and can sourcing, research, forecasting, procurement, the

environment, production, planning, recycling, property and a whole run activity (institute

of logistics, 1998). With this broader view a logistics strategy is an essential part of a

business strategy concerned with developing a process that gives continuing value to the

customers.

There are several different ways of achieving this, including;

Product differentiation- which allows innovative organizations to make a continuing

stream of new products that unavailable from competitors.

Cost leadership- which uses a process that can supply product at lower price than

competitors

Time based strategy- which concentrate on the operation that add value to the

customers.

Diversification- which means making different types of products of using different

process.


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The decision taken at the strategy level leads to others types of decision, perhaps to

supply product that a tailored to customer needs, introduce ECR, JIT, Cross docking,

direct plant, shipment, vendor managed inventories.

Direct plant shipping some other method these decisions in turn effect the service given

to the customers and the long-term success of the organization.

The process oriented prospective of logistic management that cuts across the traditional

vertical functions of the organization has been a powerful stimulator for change logistics

was not only a tool for the global strategy of the organization but also the source of

innovative logistic strategies.

Logistics has now become a far reaching total approach, that is both transversal and very

ambitious and where the skills are applied at the interface between various operational

processes its main role is to synchronize over all physical flow and it is indeed in

permanent interaction with all the classic function of a firm, constituting an active

interface between the firm and its environment.

A Conceptual Approach to Formulating Logistic Strategy

The classic approach to formulating a logistic strategy consist in beginning with the

firms overall strategy and then defining the logistic strategy that will enable the firm to

reach its objectives, logistics is thus conceived as a functional support system and a tool

for global strategy. Logistics strategy should appear as a subset of overall strategy. The

controls of flow of materials goods today constitute a key factor for success in numerous

domains.

Logistics like other aspects of business (marketing, information) is given today a new line

it action so, it is imperative to reverse the classic approach and think towards strategic

logistics rather than logistic strategy.

Strategic logistic is consists of imaging and developing strategic action that would be

impossible without strong logistics competence. Logistics is becoming a fully


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competitive advantage, and even means to change the rules of the strategic game for an

industry. However for Usha Martin industries it is still a long way to go.

The principal differences are summarized below:

Logistics strategy Strategic logistics

Perception of logs stakes Strategy report Strategy formulation

Effects on organization Improvement Change,

Evolution transmutation

The two inter related perspective between logistics and strategy shown in figure lead to a

very different formulation and to company projects that are also very different.

STRATYEGY

Logistics motor /

Source of global

Strategy.Strategic

Logistics

LOGISTICS STRATEGY

Logistics: tool for global strategy

LOGISTICS

Finally, strategic logistics formulations emerge from this repeated transversing of

interactive strategy / logistics lop, which becomes a progress spiral for the firm.


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LOGISTICS SECTION

The logistics section of sales coordination basically deals with evaluating the

performance of UML doesnt have its own transportation system.

There are contract made between transporter and UML, which is regulated, by branch

office. Usually there is quarterly contract.

The department prepares performance report of different sub-contractor (transporter) and

refers it while finalizing the contract.

Procedure for approval of transporters: -

1. PURPOSE The purpose of this procedure are to access and review the performance

of the transporter of placement of trucks and timely and safe delivery of outgoing

finished goods.

2. SCOPE The entire transporters are covered by this procedure excepting those

nominated by the customer.

3. RESPONSIBILITY The procedure is reviewed and approved by the management

representative and issued by the senior manager, quality system.

4. AUTHORITY The responsibility of implementation and maintaining the procedure

rest with the wise president (financial & commercial).

5. PROCEDURAL STEPS- ACTIVITY One of the following methods are used:

Past performance method.

New transport selection method.

Reference method.

If any transporter having approved list of transporter.

a. Past Performance Method:

1. To prepare transporters performance report on the basis of their timely placement of

trucks and timely delivery of consignment in god condition at the desire destination.


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2. The approval and review of transporter is to be carried out by transport approval

committee comprising the VP fleet of sales coordination and head of account once

in three months according to the need.

3. For the purpose of approval, the signature of vice president (VP) and two member of

committee are necessary to maintain / delete any transporters list on the basis of

reviews meetings.

b. New Transporter Selection: -

1. To send transporter registration from prospective transporter.

2. If the performance is satisfactory recommended the transporter to the committee for

inclusion in the approval list.

3. To approve or reject the transporter on the basis of review meeting.

c. Reference Method:

1. To place order on transporter who being to any of the categories.

2. Transporter recommended by a senior officer.

3. A known source.

4. Identification based on experience of other users.

d. Approved List of Transporter:

The enlist transporter is approved transported list. During the transporters approval

committee meeting, a review of the transporter performance is to be carried out to

evaluate their ability to meet the requirement.

In case a transporter is falling short of desired performance, suitable corrective plan of

action is to be drawn up and follow up measures are to be establish to upgrade that

transporter. Such review report is to be forwarded to the management representative.


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WAREHOUSING:

UML again doesnt own any warehouse. All warehouse used by UML is different region

are on rent.

UML keep closing and opening warehouses in different part of country as per demand.

Demand of existing as well as newly developing area studied continuously and

accordingly warehouses are taken on rent for certain period of time.

For catering seasonal demand temporary warehouse are taken for example Chennai

(fishing rope).

UML maintain minimum inventory of 2000-2500 tones.

The main reason for maintaining warehouse is for timely delivery & to customer needs as

well as cost saving.

Procedural steps:

Activity-Responsibility-Purchase department.

1. purchase Against Indent:

following items may however be procured from various approved and listed sub-

contractors against sub-contractors and monthly requirements including amendment there

of intimated by following respective departments.

Items such as: wire rod, phosphate, chemicals, lubricants, propane gas, HCL, borax, lead,

L.D.O. etc.

Stores Department :

2. On receipt of indent at stores individual items code nos. case and a print is taken to

verify.


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3. The indent is than fed into a computer against the item code and a print out is taken to

verify.

a. That the description of the item is correct.

b. Whether any stock is available of the items.

c. The details of previous purchaser regarding the sub-contractor

and rate at which purchasing were done.

i. The print out is manually verified if the description in the print out and that I

indent matches, further processing of the indent is continued. If the description

doesnt match indenter is consulted and ambiguity is reserved. If required a new

item code is allowed or the indenters charge the description in the indent.

ii. After verifying the position of the item, it is required to be procured the computer

print out is authorized and sent to purchase department.

Purchase Department & Import Department

4. To decide on the basis of the indent from the stores whether of not fresh enquiries to

be floated.

5. If fresh enquiries are not required then refer to existing price list of the current sub-

contractor for the items under consideration and are last order placed for such items

and the process from steps onwards.

6. If fresh enquiries are required to propose enquiries on the basis of indents raised and

sent to the sub-contractor for inviting their quotations. Enquiries to foreign sub-

contractor are sent in the form of letters.

7. On receipt of incoming offers quotations purpose comparative statement of offers if

more than one offers is received.

8. To select sub-contractor on the basis of receipt.

9. To prepare the purchase imported order department order to the selected sub-

contractors.


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The purchase orders to include complete material specification, description, technical

details, drawings numbers applicable, inspection instruction method of product release

etc.

Purchase / import order is reviewed and approved before release.

Quality Assurance Department:

10. All products are accepted on the basis of inspection on arrival at works. When the

contracts call for inspection at the sub-contractors premises such requirement is

incorporated in the purchase order special requirement as per procedure for order

review. The purchase of this inspection at sub-contractors premises is to avoid major

faults in the product. After inspection instruction for clearness of dispatch by the sub-

contractors is made in three copies. Two copies are handed over to the sub-contractor

and one copy is forwarded to purchase department.

Purchase Department & Import Department

11. In the case of change of requirement of indenting users department proposed

modification are discussed with sub-contractor to whom order has been placed.

12. If the subcontractor agrees to the proposed change, an arrangement to purchase order

is issued.

If the sub-contractor closes not agree to the proposed changes, would by repeated to

select anew sub-contractor in case of items covered in the new sub-contractor should be

from the approved sub-contractor list and placed a fresh order on him. Otherwise a new

sub-contractor is to be approved in accordance with procedure for approval of sub-

contractor.

13. Copies of purchase order / job order and subsequent amendment, if any are sent to

stores, accounts and indenting department. In case of items in approval of sub-

contractor the same is sent to quality assurance.


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LOGISTICS CONSTRAINTS

Logistics constraints means the problem a company faces to deliver the product and the

problem faced during each step of whether in house or out house.

LOGISTICS CONSTRAINTS FACED BY UML

The company faces some constraints in delivery of the product as well as in processing

and warehouses.

1. Absence of proper feedback from transporter regarding any delay.

2. Problem created by transporter financier for e.g. stoppage of vehicle on way for non-

payment.

3. Rules and regulation of different states calls for proper and perfect documentation,

which sometimes leads to complicates.

4. Breakdown of vehicle is another delaying cause.

5. Delivery of seasonal foods is more profitable for the transporters so they start

preferring those goods and avoid delivery of wire and wire rope.

6. Local bunds causes a lot of troubles in production and delivery system.

7. Theft and accidents are certain unavoidable constraints.

8. Transporters strike against government distrupt and regular flow of supply.

9. Natural calamities.

10. Unavailability of products in demand in the warehouses.

11. Absence of proper packaging facility at warehouses.

12. Unavailability of drilling and cutting machine creates problem in supplying specific

demand.

13. UML takes warehouse on rent, which leads to absence of perfect care of product inthe stock.

14. Absence of warehouse in certain areas likes Orissa.

15. High cost of maintaining sub-contractors.

16. Transporter of area like Chotanagpur prefer coal belt area to earn easy money thus

location factor creates problem.


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17. Absence of own transportation system creates problem like unavailability of

transporters vehicle leading to delay in delivery product.

ORDER CONFIRMATION IN UML

RESEARCH METHODOLOGY

ENQUIRY


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The research methodology basically dealt with collection of data and information from

primary source as well as secondary source and the analysis of data an account of

research design.

My project consisted of research design of exploratory and descriptive nature.

Exploratory study because final conclusion has to be reached on the basis of collected

facts and figures, descriptive study because the organization is a large organization

scattered all over the country as well as abroad therefore their dealers, customers,

different branched are scattered and situated accordingly at different places. The

marketing main head office situated in Kolkata and branch office in Delhi, therefore it

was difficult to get into face to face interaction with them therefore facts have also been

collected through e-mail, their general opinion given to the department from time to time.

Collection of secondary data: -

Whatever the existing secondary data was relevance for my study has been collected

from booklet, journals, annual, reports, UML magazine, Prabhat Khabar, files and

documents.

Collection of primary data: -

It is difficult to deal industrial product survey like consumer good, therefore analysis to

great extent has been based upon secondary data, personal interview, observation analysis

and questionnaire separately prepared for workers, managers, customers, dealers.

On the basis of data, few hypotheses have been drawn and I have tried to work along with

them.

Interviewing was the major tool of my project study as it avoids them to influence for

answer but at the same time maximize the accuracy with which questions are answered.


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Observation method: - certain time observation can tell much more then that of any

verbal investigation.

Defaults and plus points can be checked about the organization consulting from

senior officials can clear the facts, which I found essential with any project.


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The scope of UML, I have observed in my training period, which has been described in

the project.

UML is basically an export-oriented company, which export 50% of the product world

over like USA, EUROPE, UK etc UML products are used mainly in coal mines,

general engineering, ropeways and oil drilling rope, fishing rope etc.

UML was the first Indian Company in 1974 to export wire rope to USA. In domestic

market the largest share goes to coal with 28% & to engineering 20% & to shipping 13%.

So, I realize in this project of UML on the basis of data and figures, analysis of the 6 Ps

namely product, price, promotion, place, packaging and people of the marketing mix

strategy are as follows:

PRODUCT: -

Today one of the main strengths as (wire &wire rope) maker is pronounced by its locked

coil wire rope (LCWR). It is used in coal mines and electrical wire and cement industry.

UML is the 2nd company of India to manufacture this kind of wire rope.

PRICE: -

When we are dealing with the pricing policies and strategies, I observed that UML has

one to one strategy that is leadership pricing strategy.

In the domestic market UML is a market leader, so its management formulates the price

strategy.


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PROMOTION: -

UML doesnt go in for advertisement or other short of promotion. UML is mainly

interested in taking part of trade fairs whether it is national or international. It also

conducts meeting with dealer and agents.

Example is taken from the market mining industries in Rajasthan, when it conducted

meeting with dealers and agents who guide the decision making of the mine owners.

Sales services of UML are needed to gain the customer confidence and create a strong

brand image.

PLACE: -

UML has one of the major customers in Coal India Limited. So, it is easier for UML to

supply mining ropes to various coal mines, under C.C.L., SAIL & Tata Iron & Steel

Company that situated in eastern zone.

UML is opening up manufacturing plant, branch office, dealers and distribution on

network and warehouse in the domestic market. UML holds best position in the industry

because geographical location is good & target market is strong. Branches of UML &

dealers network are connected with Internet.

PACKAGING: -

UML is always trying to improve its packaging to its product. This packages products

the materials inside it. It uses new age labeling and tags for its product.

UML are using bar coded tags which identify the specific region and other hanging

world the emergence of time & speed has become one of the main fact.


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USHA MARTIN INDUSRTRIES assess the logistic function, which help the raw

material, which is purchased, and then it is planned accordingly for the production. When

the production of finished good is kept in the stock godown from there it is dispatchedaccording to the customer through the efficient distribution channels to the destination of

warehouse accordingly.

FROM PURCHASE DEPARMENT:

Purchase department deals with the purchase of raw materials like wire rod and lubricants

(from JSR), Chemical from Mumbai, Propane gas from GAIL, Zine read from kolkata.

In this department relevant information are incorporated in the purchase order so that the

product supplied by the sub-contractors, meet desired quality requirements. The product

is reviewed and approved by management representative and issued by head quality

system. The responsibility of implementing and maintaining the procedural steps of this

procedure rests with in charge of purchase department.

FORM PLANNING DEPARTMENT:

Planning department deals with the allocation of the work according to product. Planning

department review the purchase order. After receiving it becomes the purchase order. It

includes all the necessary details regarding product and also the address of the consignee.

On the basis of this W.P.S. (Work Plan Schedule) is prepared plan horizon of UML is 15

days W.P.S. includes schedules of each and every day. That is from the day dispatching

of the product.

Sometime advance planning is made for the product, which is always in demand (for e.g.fishing rope)

FROM PRODUCTION DEPARTMENT:


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The main manufacturing plants that UML contains are wire, strand and rope. It wire and

ropes are used for various purpose. For e.g. fishing rope, engineering rope etc. UML is

specialists of LCWR ropes, which is mainly used in mining industries. UML ropes have

to go through a tensile strength test before dispatching.

FROM TRANSPORTATION DEPARTMENT:

For dispatching process UML depends on road transport. UML receives application from

the interested transports. All the transporters have to undergo with a procedure for

approval expect those who are nominated by the customers. Different methods of

procedures are:

1. Past performance method.

2. New transporter selection method.

3. Reference method.

4. If any transporter having ISO 9000 certified.

There is a transporters approval committee to keep an eye on their performance.

They also issue warnings to them whose performances are not found satisfactory.


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1. Companys performance during last six years.

0

200

400

600

800

1000

Value

Sales

PAT

Sales 180 235 276 499 816 814

PAT 25 33 16 35 42 44

94-

95

95-

96

Jan-

97

97-

98

98-

99

99-

2000


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2. Companys performance Export V/S During in Wire.

0%

20%

40%

60%

Percent

Year

Export

Domestic

Export 40% 42%

Domestic 60% 58%

98-99 99-2000


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3. Companys performance Export V/S During in Rope

0%

20%

40%

60%

80%

Percent

Year

Export

Domestic

Export 57% 68%

Domestic 43% 32%

98-99 99-2000


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4. Sales in Domestic Market (Rope)

0

5000

10000

15000

20000

Qty.

inMT

year

Qty. in MT Value in Lacs

Qty. in MT 1352 1461 1219 1990 1777 1055

Value in Lacs 6180 6805 6805 9111 8501 4160

94- 95- 96- 97- 98- 99-


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5. Sales in Domestic Market (Wire)

0

5000

10000

15000

20000

25000

Qty.

inMT

year

Qty. in MT Value in Lacs

Qty. in MT 15106 18495 22623 14597 18684 8812

Value in Lacs 3764 4436 5515 4281 5150 2106

94-95 95-96 96-97 97-98 98-9999-

2000


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6. PERFORMANCE IN SALES WIRE ROPE IN DOMESTICMARKET

YEARS QTY(MT)

2000-2001 22530

2001-2002 23482

2002-2003 26194

2003-2004 30958

2004-2005 36198

2005-2006 30655

SALES OF WIRE ROPES

0

5000

10000

15000

20000

25000

30000

35000

40000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

QTY


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7. PERFORMANCE IN SALES WIRE IN DOMESTIC MARKET

YEAR QTY(MT)

2000-2001 30846

2001-2002 28413

2002-2003 25053

2003-2004 24821

2004-2005 31427

2005-2006 29507

SALES OF WIRES

0

5000

10000

15000

20000

25000

30000

35000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

QTY


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8. PERFORMANCE IN SALES EXPORT(WIRE, ROPES,STRAND)

YEAR QTY(MT)

2000-2001 24971

2001-2002 29282

2002-2003 26995

2003-2004 28883

2004-2005 54437

2005-2006 40236

SALES OF WIRE ROPE AND STRANDS

0

10000

20000

30000

40000

50000

60000

2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

Series1


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9. DESPATCH PERFORMANCE (2005-2006)

YEAR QTY(MT)2003-2004 5637

2004-2005 10881

2005-2006 10050

DESPATCH PERFORMANCE

21%

41%

38%2003-2004

2004-20052005-2006

10. EXPORT DESPATCH AT A GLANCE 2005-2006


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PLACE PERCENTAGE

AMERICA 17AUSTRALIA 4

AFRICA 4

ASIA 36

EUROPE 17

MIDDLE EAST 22

DESPATCH PERFORMANCE 2005-2006

TOTAL DESPATCH = 100500

17% 4%

4%

36%

17%

22%AMERICA

AUSTRALIA

AFRICA

ASIA

EUROPE

MIDDLE EAST


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11. PERFORMANCE QTY WISE 2005-2006

QTY

DOMESTIC 40180

EXPORT 59658

PERFORMANCE QTY WISE 2005-2006

40%

60%

DOMESTICEXPORT


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1. HOW WOULD YOU RATE THE PERFORMANCE OF THEORG AT PRESENT?

POOR 0%

STAGNANT 30%

GOOD 70%

0%30%

70%

POOR

STAGNANT

GOOD


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13. DO YOU FEEL THAT UML WILL REMAIN GROW INROPE MARKET?

YES 75%

NO 10%

CAN'T SAY 15%

75%

10%

15%

YES

NO

CAN'T SAY


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14. WHAT IS THE POSITION OF THE ORDER TODAYWITH RESPECT TO EARLIER?

INCREASE 62%DECRESE 13%

STAGNANT 25%

62%13%

25%

INCREASE

DECRESE

STAGNANT


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15. HOW WOULD YOU RATE UML PRODUCTS ANDSERVICES?

UNSATISFACTORY 10%

SATISFACTORY 90%

DELIGHTFUL 0%

10%

90%

0%

UNSATISFACTORY

SATISFACTORY

DELIGHTFUL


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16. WHAT INFLUENCE YOU TO TAKE THELEADERSHIP OF UML?

BRAND NAME 20%

PRODUCT DEMAND 40%

AVALIBILITY 0%

QUALITY 40%

20%

40%0%

40%

0%

BRAND NAME

PRODUCT DEMAND

AVALIBILITY

QUALITY

PRICE

STRENGTH: -


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2. UML ranked No.1 Company in India in manufacturer of wire rope.

3. Strong status in world.

4. It maintains a world class infrastructure.

5. Market share is strong

6. Big contract.

7. Largest distribution network.

8. Dealers, branch offices, warehouse are connected with Internet in all over India.

9. UML has become brand equity in this field, customer first choice is UML.

10. Its products are world class in quality; it is tested by several authorities.

11. It has bugged almost the entire world leading quality certificate.

12. It enjoys the monopoly in the LCWR.

WEAKNESS: -

1. Its pricing strategy is completely different from other competitors.

2. It has large no. of machinery and equipment which has became old and obsolete.

OPPORTUNITY: -

1. Government planning regarding less explosive hanging bridges like Naine

Bridge in Uttranchal.

2. New opportunities in the oil off share field e.g. oil drilling rope as reliance has

found crude oil reserves in Krishana-Godavari basin in South.

3. Fishing is developing in the southern coastal cities.

THREATS: -

1. Small rivals are emerging at different parts of the country.

2. Low prices of the rivals product are a great threat for the UML.3. Timely delivery of the product is a great threat for the UML.

4. Govt. always changes its policies and it brings a great threat to this organization.

5. A bad roadway of Jharkhand State is among biggest threat to the UML.

COMPETITORS OF UML


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GLOBAL

COMPANY COUNTRY

Kiss wire Korea

British Rope UK

Aoagie Rand South Africa

Fedger Switzerland

Austria Draught Austria

CASAR Germany

Bridon Germany

Dietz Germany

Jhon Shaw UK

Redaelli ` Italy

SFE Spain

Teufelberger Austria

Pfeiffer Switzerland

DOMESTIC

COMPANY COUNTRY

South India Wire Kerala

Bombay Wire Ropes Maharashtra

Bharat Wire Ropes Maharashtra

Indore Wire Ropes Indore

Asian Wire Ropes Andhra Pradesh

Mickey Wire Ropes Jharkhand

Garwari Ropes Maharashtra

Forts Williams West Bengal


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FINDINGS

PRODUCT RELATED

UML products are well tested and inspected by the world class testing authorities

like (ABS, LOYDS, IRS, ONGC, DGS, CMPIDL, MECON and GRIFT)

UMLs product (LCWR) has good demand in the market.

Nearly all the major orders are placed with UML due to product performance &

record.

As the entire product certified, customer has full confidence in placing order with

UML. UML cover the services of the product time to time.

Complete R&D for the product and insisting products are done itself in the

company. R&D centers, so that the UML can upgrade the quality.

OTIS, ABS, ISI, and so many authorities that visit the company time to time to

audit the quality related aspects of UML.

PRICE RELATED

Overheads are quite high compared to the other companies or rivals but it is solely

due to its size & volume.

From the customer point of view we felt that due to high cost of UML products. It

looses certain prospective customer.

PLACE RELATED

UML is located in the eastern region of the country which has become the point

of concern for its domestic customer although it has five ware houses covering all

zones, the timely delivery is crucial.

All the branches & dealers of UML in India are connected with Internet.

All of the branches are situated in areas, which have good communication

facilities, whether in roads, rails or water. Its own division situated in


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Jameshedpur & Bangalore respectively supplies raw materials & heavy

equipment & machinery.

From geographical point of view UML plant in Ranchi is well positioned but

there is certain problems like frequent bends and strikes etc. and of course lacks

of good infrastructure facilities.

PROMOTION RELATED

UML promotional strategies such as participating in trade fares are not enough to

create awareness for the customers.

The after sale service of UML is well appreciated because it aims at making

relationship with customers.

It generally sends its representative to its customers to lesson the complication

and complains.

The frequency of the seminars and industrial interference less so UML conducts

meeting with its dealers and distributions. Even we felt that the companies cum

web portals is not updated and upgraded time to time.

PACKAGING RELATED

UML is at par with current packaging bends.

UML uses new age labeling & tags for there products making its products more

attractive & reveal the world class quality.

The iron reds are used mostly these days. They are well painted to give it a nice

aesthetic look.

Bar coded tags are used for the identification for the different products.


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Recommendations to maintain the leadership position in both domestic

and international market:

A. THE PRICING FACTOR:

Consumers want the price of UML products to be reasonable but this factor has proved

to be the main hindrance and had resulted in getting low work order from the regional

and national market.

The prices of the UMLs steel wire and ropes is higher than those of other manufacturer

at the national level and due to this its major competitor M/s Bombay wire in Mumbai

has snatched a big portion of the market share of UML at the regional level.

There are sizable proportions of dealers and customers who are ready to compromise on

quality in order to expand their profit margin.

Prices of UML products have risen up to 30-40% within a span of 2 years than that of its

competitors price. Customers who can compromise on quality are shifting towards other

competitors due to this reason.

Government organizations are also a major customer of UML products but in case of

Govt. organizations orders are initiated on the tender basis. In regard to this sector also

UML received setback in past because the tender having the minimum rate quoting bags

the work order. So the competitors of UML are gaining a large portion of the cake here.

Even the dealers have also registered their complaint against the high pricing of the

products as they have to sell their products at a very low profit margin in order to survive

in this highly competitive market. So UML must rethink about its products price.


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B. THE QUALITY FACTOR:

The customers of UML expect a certain quality standard, which is the USP of its

products, they expect products with zero defects. Though UML very strictly adheres to its

quality commitments but still there are certain flaws which accompany its products.

At times life span of the product also decreases due to stocking with poor or inferior

quality of packaging stenciling material and so it does not lasts as long as it is expected to

last.

The positive future is that quality related problems have to reach on zero level to ensure

the optimal performance of the product and customer satisfaction.

C. THE PACKAGING:

When

Usha Marten

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