Find out potential market for industrial burners and gas systems

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PROJECT REPORT

ON

FIND OUT POTENTIAL MARKET FOR INDUSTRIAL BURNERS

AND GAS SYSTEMS IN AGRA, FIROZABAD AND KANPUR

REGION .

SUBMITTED BY

MUKESH SANDANSHIV

IN PARTIAL FULFILLMENT

OF

DEGREE OF MASTER OF BUSINESS ADMINISTRATION

INDUSTRIAL GUIDE PROJECT GUIDE

Mr. RAHUL GUJAR Mr. RAJESH

VHATKAR

Mr. MILIND BAVA

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INDEX

CHAPTER NAME PAGE NO

1) INTRODUCTION 1 - 6

2) REPORT OVERVIWE 7 - 10

3) PROFILE 11 - 17

4) FACTS & FIGURES 18 - 29

5) CONCLUSION & RECOMMENDATIONS 30 - 32

6) ANNEXTRE 33 - 35

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ACKNOLEDGEMENT

I wish to acknowledge his gratitude for the valuable suggestion and

information provided, to Mr. Rahul Gujar, Mr. Milind Bava and other

staff members of marketing department of Eclipse Combustion Pvt. Ltd.

Who spared their valuable time providing core inputs about market.

The student also wishes to express his proform

gratitude and in-depthness towards Dr. Sharad Joshi, Director,

Vishwakarma Institute of Management and Mr. Rajesh Vhatkar, Project

guide for all the encouragement, inspiration and valuable suggestions as

and when required. He has been greatly instrumental in providing shape

of the report.

I am also grateful to all those who helped me conceiving, designing

and drafting my project without whom this project wouldn t have been

materialized.

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MUKESH SANDANSHIV

EXECUTIVE SUMMERY

PROJECT FIND OUT MARKET POTENTIAL FOR

INDUSTRIAL BURNERS AND GAS SYSTEMS

IN AGRA, FIROZABAD AND KANPUR

REGION.

COMPANY ECLIPES COMBUSTION PVT. LTD.

DURATION 2 MONTHS

OBJECTIVES

1. To assess the demand of burners and gas

systems in Agra, Firozabad and Kanpur region.

2. `To understand market dynamics and demand

scenario of Agra, Firozabad, Kanpur region.

3. To suggest the changes needed in their current

marketing strategy for enhancing revenues and

improvising customer delight.

The above research is divided into five chapters:-

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The first chapter of the report is titled INTRODUCTION,

wherein the researcher has given a brief introduction to ECLIPES

COMBUSTION PVT. LTD.

The second chapter of report is REPORT OVERVIWE,

which include the Title, objective, and significance, research

methodology employed by researcher, of the research.

The third chapter of the report is titled PROFILE where in the

researcher has presented a brief introduction of region

The forth chapter titled FACTS & FIGURES the researcher

has given the present statues of Market

The fifth chapter titled CONCLUSION &

RECOMMENDATIONS,

Where in the researcher has analyzed the collected data and has

made certain conclusion recommendations and the SOWT analysis

those of it to, increase Market share.

The sixth chapter is followed by ANNEXTRE, where the

researcher has present the questionnaire

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COMPANY PROFILE

Eclipse, Inc. is a worldwide manufacturer of products and systems

for industrial heating and drying applications. It designs and

manufactures a wide variety of gas and oil burners, recuperators and

heat exchangers, complete combustion systems, and accessories for

combustion systems. Eclipse Inc. offers its customers an excellent

single source for design, installation, and service for total

combustion needs, supported by expert application engineering

services.... anywhere in the world.

Eclipse Combustion Pvt. Ltd. is a wholly owned subsidiary of

Eclipse Inc. It is an ISO 9001 company, which gives prime

importance to quality. The company is a world leader, with principal

manufacturing and R&D centered in the USA and assembly facilities

strategically located in Pune. It is in the process of setting up an All

India sales & marketing network.

THE BRANDS OF ECLIPSE, INC.

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ECLIPSE COMBUSTION BRAND INFORMATION

Eclipse Combustion designs and manufactures a wide variety of gas

and oil burners, recuperators and heat exchangers, complete

combustion systems, as well as accessories for combustion systems.

Eclipse Combustion is widely recognized as the world leader in low

emission burner technology. Our Minnox, Winnox and ThermJet

burners set new global standards for NOx, CO and aldehyde levels.

Our global structure enables us to help our customers compete in the

international marketplace, everyday, in every industrialized country.

To facilitate that effort, we have established and staffed over 80 sales

and engineering offices in major cities and countries around the

world. The resources of these facilities are available to you around

the clock. They exist to provide you with the best products and

services possible.

Major Product Groups:

Air heat Burners

Furnace Burners

Immersion Burners

Infrared Burners

Air and Fuel Supply Component

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COMBUSTION TEC BRAND INFORMATION

Combustion Tec supplies complete combustion systems to all

segments of the glass, ceramic, and primary metals industries for use

on regenerative, recuperative, unit melters, and oxygen-fuel fired

furnaces. More than 700 major glass furnaces, worldwide, use

Combustion Tec equipment.

The company's range of products varies from burners to complete

fuel combustion systems for use with gas, oil, or a combination of

the two. Combustion Tec's Primefire® series burners are multi-fuel

oxygen burners. Several burner types are available for different

firing positions, and all gas burners are adjustable, providing for a

degree of control over the flame length and luminosity. Combustion

Tec designs, provides equipment, installs, and services complete

systems, including closed circuit TVs (CCTV) for high temperature

applications, to meet the customer's specific combustion system

needs.

Major Product Groups:

Oxy Fuel Burners & Systems

Special High Temperature Systems

Process Controls & Computer Modeling

Dual Fuel Air Burners

Emission Control Technologies

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EXOTHERMICS BRAND INFORMATION

Since 1976, Exothermics has been the leading source of

reliable, high-quality, heat exchangers for industrial equipment

manufacturers and industrial end-users around the world.

Exothermics

World Class Heat Exchangers have been used in every

industry that uses heat to process, dry, cure, bake, or finish their

product. Industries that have used Exothermics exchangers include

the automotive, textile, plastics, rubber, glass, pharmaceutical, food,

paper, printing, metal finishing and the pollution control industry.

Exothermics heat exchangers, compactly built, are crafted from

durable stainless steel, aluminum or other exotic alloys. The quality

of these materials, coupled with sound, state-of-the-art welding and

other innovative manufacturing techniques, is what makes the

Exothermics unit so incredibly efficient, resilient and maintenance

free. Every heat exchanger design is laboratory tested to ensure it

meets design specifications and performance expectations.

Major Product Groups:

Air to Air Plate Heat Exchangers in Aluminum, Stainless Steel

and Special Alloys

Air to Air Insulated Plate Heat Recuperators

Tubular Type Air to Air Heat Recuperators

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ALGAS-SDI BRAND INFORMATION

Algas-SDI is the world's leading producer of LPG vaporizers, with

the resources and products to provide the solution to any energy

challenge.

Designing, producing, and marketing high quality, reliable products

is our focus, from small gas fired or electric vaporizers to compact

packaged systems to large fully engineered and integrated utility

systems. Working with a commitment to continuous improvement,

Algas-SDI has proven its ability to blend new technologies with

years of industry experience.

Major Product Groups:

Diversified Vaporizer Line

LPG/Air Venturi Mixers

Packaged Modular Vaporizer/Mixing Systems

Accessories and Control Systems

Ammonia Vaporizers and Accessories

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SOME OF THE MAJOR CUSTOMERS OF ECLIPSE COMBUSTION:

Bharat Forge Ltd.

Bokaro Steel Plant

Crompton Greaves

DGP Hinoday

Indian Railways

Gujarat Glass Ltd.

L&T Ltd.

Gujarat Rubber

Maruti Udyog Ltd.

Bajaj Auto Ltd.

General Motors India Ltd.

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TITLE OF THE RESEARCH

Find out market potential for industrial burners and gas systems in

Agra, Firozabad and Kanpur region.

OBJECTIVES OF THE RESEARCH

To assess the demand of burners and gas systems in Agra,

Firozabad and Kanpur region.

To understand market dynamics and demand scenario of Agra,

Firozabad, Kanpur region.

To suggest the changes needed in their current marketing

strategy for enhancing revenues and improvising customer

delight.

SIGNIFICANCE OF THE RESEARCH

To The Company

The researcher would not only enable the company to

identify the existing demand of the products but at the same time the

company will have firsthand information about the effectiveness of

the present marketing strategy.

It can also consider the suggestive mechanism presented by

the researcher and thereby improve its present system so that it can

be used more effectively in future.

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To the Researcher

The researcher would enable the student to get the practical

insight of the marketing processes and practices applied.

Its in-depth study and analysis would provide him

confidence in future endeavor, as the researcher wants to pursue his

career in marketing field. The research would significantly help in

understanding market practices, methodologies and strategies to deal

with changes in macro and micro environment.

RESEARCH METHODOLOGY

The research was conducted in three phase. The various phases were

as follows

FIRST PHASE

The researcher scanned various journals, magazines, monthly report,

brochure, internet and other secondary materials to gain insight in the

company s operations. He also studied various textbooks to achieve a

thorough understanding of the concepts related with market research.

The researcher also collected information from the staff of Marketing

department on various issues concerning the project and other

relevant information.

SECOND PHASE

The researcher collecting all pertaining data of the existing and

potential buyers of the company

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Judgment Sampling : Though the client base of the company was not

very large, but customers were ranging from bulk to very small as

also were casual and consonant, scattered over a large area.

Judgment sampling was made in co-ordination with marketing team,

so as to cover all major potential buyers.

Data collection: is one of the most important aspects of marketing

research and study. The method used by the researcher for data

collection was a combination of questionnaire and personal

interviewing methods i.e. a structured questionnaire was carefully

prepared and to have larger and better response, personal interview

method was adopted. The questionnaire consisted of wide range of

questions to cover all information regarding the end use of the

product, type of fuel used, type of industry, number of burners used

etc.

Data analysis: The collected data has been analyzed in order to get

pertinent information from the data. It has been done in the following

steps:

1. Compilation and grouping of the data.

2. Editing of the data for ensuring the errors and omission in the

data collection process.

Classification was done based on attributes into following

categories

Name of company and address

Type of industry

Use of burners

Type of fuel

Satisfaction level

Future requirements

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Conversion of oil to gas

Standby LPG system

Use of vaporizer and mixer

Tabulation -charts were made, to draw meaningful inferences from

the data collected in the questionnaire.

THE FINAL PHASE

The researcher compiled the data collected in a systematic manner

and analyzed it. The researcher interpreted certain facts on the basis

of the analysis, which he has presented in the reports. At the same

time he suggested some measures, which the company may consider

to improve its current market share.

The research is descriptive as well as analytical in

nature. First of all the researcher has presented the current market

supply and then analyzed it on the basis of the data collected and

compared with the existing market demand.

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Uttar Pradesh Industry Map

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INDUSTRIAL ZONES VISITED

AGRA FIROZOBAD

Type of Industry Glass

Diesel eng

Paper Foundry Valve Mfg Piston Mfg

% of companies 37 18.75 13 6.25 6.25 6.25

DIFFRENT TYPE OF INDUSTRYES

GLASS DISEL ENG PAPER

FOUNDRY VALVE Mfg PISTON MADE

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FIROZABAD:-

Firozabad is a small place and a small town in Uttar Pradesh, 60

km. away from Agra. Except glass industries there is no any other

industry which can help to grow the city. There are near about 100

small scale and big glass industries located in and around the place

which manufacture bangles, bottles, pots and other decorative glass

items. The main reason for location of these many industries is that

Firozabad is famous for bangles from historical times. Hence the

availability of such workers facilitates it.

In Firozabad, natural gas arrived 6 years ago and is available

in very cheap rate. So all industries use natural gas, minimum 10

burners in each. But the basic problem is that all big as well as small

industries use local made burners mostly produced by them. The

reason being that even such cheap ones do the same work then why

go for expensive company made burners. Some people are ready to

modify and use company- made burners but they want some

technical advice about the benefits of these burners for them. If the

branded burners save some fuel then these people surely will go for

company made burners. For that they want comparative studies of

local made and guaranteed burners with demos.

We got a huge market from this region because each

company uses at least 4 burners while many big companies use 16 to

20 burners making it a huge potential market for burner segment. An

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important thing I notice in this area is that everyone follows suit to

others enhancement. This proves that if we are successful to put up

our burners in 3-4 big factories automatically many others make up

their minds to accept our burners. Only one thing that I want to

suggest is that we have to hard work at primary level.

There is no market for our ALGAS sector.

Few Big Companies in This Area:

OM GLASS WORKS

JAGDAMBA GLASS

HIND GLASS INDUSTRIES

MELANIUM GLASS INDUTRIES

S.L.G.L GROUP

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AGRA:

It is a district place in Uttar Pradesh. Basically it is famous as

tourist place, Taj Mahal being situated here.

Agra is not a big industrial area. Basically, there are small

scale industries located here like:

Metal Industries

Block Piston Industries

Generator Accessories

Nunihai is an industrial area in Agra. All the companies are located

here. Natural gas is available since last 6 years but I don t think that

we may get potential market in this region for our both burners and

Algas segments.

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KANPUR:

Kanpur is a district place in UP. It is known as industrial capital of

the state. It is a big industrial area. There are various types of

companies located in this area like:

Metal Industries

Chemical Industries

Food Industries

Leather Industries

Pharmaceuticals

Major company in Kanpur is LML.

In Kanpur

1. Dada Nagar

2. Panki

3. Govindpur

are the major industrial areas.

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Type of Industry Plastic Metal Food Elect Paint Auto Chem. Paper

% of companies 37 18.75 13 6.25 6.25 6.25 6.25 6.25

DIFFERENT TYPE OF INDUSTRISES

37%

18.75%

13%

6.25%

6.25%

6.25%

6.25%6.25%

PLASTIC METAL FOOD ELE PAINT AUTO CHEM PAPER

The companies here use various types of fuels. Metal industries use coal as major fuel. Biscuit industries use electricity and some chemical and plastic companies use LPG as fuel but they all are already setup their systems so right now we don t have good market for our product. One good opportunity which we can get after six months is that natural gas will arrive there. At that time near about all companies will convert their existing fuel systems into natural gas making it a good market for our products so we have to keep in mind that we have to do study of all types of companies in Kanpur

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KANPUR:

Type of fuel used for burners in region:-

Type of fuel FO ELECTRICAL

COLE

DIESEL

LPG

No. of companies 75%

50% 6% 6% 19%

TYPE OF FUEL USED

50%

6%6%

19%

19%

ELECTRICAL COLE FURNACE OIL DIESEL LPG

The above pie chart shows that in this region because of absence of

natural gas users are users are using various type of fuel in that 50%

users electricity as a fuel and some of them are LPG, diesel, Furnace

oil etc

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Type of burners used in region:-

Type of Burner Branded

Electrical Unbranded

No. of companies 7 6 2

-

1

2

3

4

5

6

7

BRANDED ELECTRICAL UNBRANDE

TYPES OF BURNER

Series1 THRMAX RELO EXOTHARM

EROTHRM ETALI FORBE WESMAN

As shown in above figure various type of burners are using in this

region. In that 44% branded non electrical of different foreign and

Indian burner are using , 37% electrical and 19% unbranded are

using .

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Future requirements for burner:-

Future Requirements YES NO

Percent 18 82

18%

82%

0% 20% 40% 60% 80% 100%

YES

NO

FUTURE REQUIREMENTS

% OF COMPANIES

The above fig. shows that future requirements are very less. We have

already seen in above graph that many of them are using electrical

burner and because of that future requirement are less for our burners

that is only 18%

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Expansion plan of company:-

EXPANTION PLAN YES NO

PARSENT 19 81

EXPANSION PLAN

81%

19%

NO YES

Above fig. shows that only 19% companies having expansion 81%

companies don t have any expansion plan right now

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Future requirements of vaporizer or LPG system:-

Future Requirements YES NO

%OF Companies 81 19

87%

13%

0%

20%

40%

60%

80%

100%

NO YES

Future requirements of vaporizer or LPG system

% OF COMPENIES

87% of the companies visited; do not have any future requirements

of vaporizer or LPG system, only 13% of companies have future

requirements.

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AGRA FIROZOBAD

Type of fuel used for burners in region:-

Type of fuel NATURAL GAS

No. of companies 100%

TYPE OF FUEL USED

100%

NATURAL GAS

The above pie chart show all users are using natural gas as fuel

because Govt. is providing natural gas in that region and that is very

cheap as compare other fuel

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Type of burner used in different region:-

Type of Burner Unbranded

Branded

No. of companies 86% 14%

86%

14%

0%

20%

40%

60%

80%

100%

TYPE OF BURNER

UNBRANED BRANDED

The above pie chart shows that in this region 86% users are using

unbranded burners and remaining 14% user are using branded

burners but those are Indian made. No one is using foreign made

burners

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Satisfaction from existing burners:-

SATISFIED YES NO

PERCENT 64 36

64%

36%

0%

10%

20%

30%

40%

50%

60%

70%

SATISFATIED UNSATISFIED

SATISFACTION

%OF OF COMPANIES

Nearly 64% of the companies are satisfied with the working of

the existing burners whereas the rest 136% of the companies are

dissatisfied with the working of existing burners

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Future requirements of burner :-

Future Requirements YES NO

%OF Companies 81 19

19%

81%

0% 20% 40% 60% 80% 100%

NO

YES

FUTUR REQUIREMENTES

% OF COMPANIES

In this region most of companies are using local or own made

burner and because of that they are ready to accept some thing new

which is give benefit to their company so we have generate 81%

requirements from visited companies other 19% are don t have any

requirements right now

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Expansion plan of company:-

EXPANSION PLAN YES NO

%OF Companies 22 78

EXPANTION PLAN

78%

22%

NO YES

Only 22% having expansion plan 78% companies don t

have any expansion plan right now

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SWOT ANALYSIS

STRENGTH:

1. Large product line

2. Collaboration of 4 such big companies

3. Multinational branding

4. Strong existing customer list for reference

5. All type of heat related components, accessories and systems.

6. Modified products

WEAKNESSES

1. High price of products.

2. Small marketing team

3. Less number of regional offices

4. Lack of research

5. Lack of product awareness

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OPPURTINITIES

1. Use potential market in Agra, Firozabad region

2. Less brand competitors

3. Natural gas will be available within six months in Kanpur region

4. No research in the above mentioned regions by fellow

competitors

THREATS

1. More use of local made burners in Firozabad, Agra region.

2. Use of electricity as fuel due to absence of natural gas in Kanpur

region

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CONCLUSION

1. Mostly small; scale industries are situated in Agra, Firozabad

region. Because of that they are using local made burners and they

are not ready to use branded, expensive burners.

2. Mostly glass companies are located in this area and in one

company they use minimum 6 and maximum 20-30 burners. As a

result a potential market is available here.

3. No other branded company has done research and tried to enter

this region which makes it an open market for our burner

segment.

4. Various big and small scale companies are located in Kanpur

region and they use branded burners so we have maximum

competition in this region.

5. They have already setup their systems and most of them are not

ready to change their existing systems and we are on entry level

so we have to do hard work for entering in the market of Kanpur

region.

6. Many companies prefer to use electricity as fuel over natural gas

due to its absence in Kanpur region.

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RECOMMENDATIONS

To compete with the local made burners, Eclipse should also

try to maintain competitive price with a better quality and

service which will certainly help it in getting large market

share.

Another recommendation is that Eclipse should open its offices

in all big industrial zones, which will help it in providing

timely service to the customers

To increase the market share of our company s burners, it is

needed to make people aware about our company and

advantages of using our company burners over local made

burners. It is needed to do more personnel selling,

presentations and advertising in magazine and directories,

direct mails .and .with some demo of comparative study of

local made and our burner

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Eclipse should focus more on medium and big scale industries

because there it is easy to enter in the market.

Eclipse should target the areas where Natural Gas pipeline is

going to come, as there will be a huge market which can be

tapped

To increase the share of Algas-SDI, it is needed to make

people aware about advantages of using Gas as fuel over Oil.

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QUESTIONNAIRE

Name of the Company:

Address:

Contact person (Designation):

Phone number:

E-mail:

Type of Industry:_____________________________

Are you using burners?

Yes No

Which fuel are you using? __________________________

Existing burner information:

1. Make:____________________

2. Quantity of Burners/Furnaces: ____________

Are you satisfied from the existing burner system?

Yes No

Reasons: ________________________________________________

Do you have any future requirements of burner/heating systems?

Yes No

Do you have any expansion plan?

Yes No

Details about expansion

plan:___________________________________

Do you have any conversion plan from oil to gas?

Yes No

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Algas-SDI

Type of fuel:

LPG Natural Gas

Are you using standby LPG system? (For NG user)

Yes No

If yes, are you using LPG vaporizers?

Yes No

Are you using LPG/Air mixer?

Yes No

If using vaporizer, details of LPG vaporizer:

1. Make:

2. Capacity: _____________kg/hr

3. Quantity:

4. Type:

Electric Hot water Steam Direct fired

Are you satisfied from the gas based system?

Yes No

Reasons: ________________________________

Do you have future requirements of vaporizer or LPG system?

Yes No

NOTE:

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BIBLIOGRAPHY

Market research :- G. C. BERI

Research Methodology :- Dr. B. D. KULKARNI

Industrial Marketing :- M. V. KULKARNI

Marketing Management :- PHILIP KOTLAR

www.eclipsenet.com

and www.eclipesindia.com

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