2012 TO FIND THE MARKET POTENTIAL OF COMMERCIAL PIPES IN JHARKHAND. TATA STEEL SUBMITTED BY: Sandeep Ghatuary ROLL. NO. : 10MBA070023023 TATA STEEL LIMITED, (Tube Division) Burmamines, Jamshedpur.
Nov 28, 2015
2012
TO FIND THE MARKET
POTENTIAL OF
COMMERCIAL PIPES IN
JHARKHAND.
TATA STEEL
SUBMITTED BY:
Sandeep Ghatuary
ROLL. NO. : 10MBA070023023
TATA STEEL LIMITED, (Tube Division) Burmamines, Jamshedpur.
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DETAILS OF GROUP MEMBERS:
SR. NO. STUDENTS’ NAME COURSE COLLEGE NAME & ADDRESS
ROLL NO.
1 Sandeep Ghatuary MBA (MKTG)
Jamshedpur Workers College, Mango
(Kolhan University).
10MBA070023023
PROJECT REPORT SUBMITTED TO: TMDC (Jamshedpur).
PROJECT GUIDE: Mr. Kapil Nandrajog.
CAM, Jamshedpur.
Marketing and Sales Tubes.
TATA STEEL LIMITED,
Tubes Division, Jamshedpur.
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ACKNOWLEDGEMENT
At the prime outset, we owe are sincere gratitude to the management and allied discipline of
TUBES DIVISION, TATA STEEL (Jamshedpur), for giving an opportunity to undergo the
summer training.
The project report is inspired from the annual reports of the company, market survey and
information provided by the employees in required fields; whom I should certainly acknowledge,
as without their contribution, this report would not have been appropriate.
We specially thank Mr Kapil Nandrajog, CAM, Tubes Division, Tata Steel Ltd; for his
valuable guidance.
We should appreciate and sincerely acknowledge suggestions from Mr Ibrar Khan, Sales
coordinator, Tubes Division, Tata Steel; who has always been my source of incessant motivation
and has always extended his unstinted support in the making of this project.
We also thank Mr. Gautam Ghosh, personnel, TMDC for his kind attention to all our problems
and queries during the research period.
All should be worthless, if we don’t mention the support and encouragement shown by my
parents. Without their help and wishes, this project would not have been a success.
INTERNAL EXTERNAL
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PREFACE
We want to express our gratitude to Tubes Division,Tata Steel (Jamshedpur), for the experience
and practical knowledge that we gained during the summer internship project. It was the first
time when we went to the market not to buy anything but to do a survey to know the Market
Potential and Customer Preferences of Tata Pipes. The main requirement was to interact with
dealers and customers.
The project consists of company details, market research, data collection method, questionnaire
and data analysis. We hope that our findings and recommendations would help the company, to
analyse its strategy in comparison to its competitors.
We are obliged to work in such an esteemed organization and have tried our best to align our
objective with the company’s goal.
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EXECUTIVE SUMMARY
Tubes Division, TATA Steel is the leading manufacturer of commercial Tubes in the market
with a well established national network. It delivers quality and enjoys enormous brand equity. It
faces threat from competitors who try to turn the market to their side by scoring over the points
where Tubes Division, TATA STEEL, falls short. Therefore, we, marketing students, working
in Tubes division, TATA STEEL as management trainees, have undertaken a project, to find out
the market potential of TATA PIPES in Jharkhand.
Our main objectives are:
(1) To find out and compare the market share of major companies in commercial steel pipe
segment.
(2) To measure the threat of substitution from another segment, PVC pipes.
(3) To find out the critical factors that might result in loss of market share and brand equity.
The sole purpose of our research work is to benefit the TUBES DIVISION, TATA STEEL, in
following ways:
(1) Critical factors affecting sales, once identified, can be worked upon so as to eradicate the risk
of loosing market share to the competitor.
(2) Working on the problematic areas would also save its reputation in the market.
(3) Knowledge about strengths and weaknesses of the competitors from the same segment,
would help the company build its marketing strategies accordingly so as to maintain or increase
its market share.
(4) Realizing opportunities, as, new product development; PVC pipes, to eradicate the threat of
substitution from the segment. This report is precise and purely specific to its purpose; targeted
to enable Managers to take relevant decisions.
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CONTENTS
SR. NO
TOPIC PAGE NO.
1
INTRODUCTION TO TATA STEEL LTD.
11
2
COMPANY HISTORY
12-13
3
VISION & MISSION
13
4
THE FOUNDER
14
5
PIONEERS
15-17
6
LOCATION MAP OF TATA STEEL
17
7
COMPANY PROFILE
18
8
BOARD OF DIRECTORS
19-20
9
BUSINESS ETHICS
21
10 22-23
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CSR
11
STRATEGIC BUSINESS UNITS
24-26
12
FINANCIAL DATA (MARCH05 – MARCH 09)
27-29
13
SUBSIDIARY ASSOCIATES
30-335
14
INTRODUCTION TO TUBES DIVISION
36
15
ORGANIZATIONAL HIERARCHY
37
16
SIPOC MODEL
38
17
PRODUCT & ITS APPLICATION;
PRODUCT MILL SPECIFICATION
39
18 PRODUCT PROFILE & SPECIFICATION; MANUFACTURING
TECHNOLOGY
40-44
19 MANUFACTURING PROCESS 45
20
SEGMENT CHOSEN FOR RESEARCH WORK; PROJECT CHARTER
46-48
21
STEPS FOLLOWED AS PER OPERATIONAL DEFINITION
49
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22
RESEARCH METHODOLOGY
50
23
LIMITATIONS; QUESTIONNAIRE DESIGN
51
24
SAMPLE QUESTIONNAIRE
52-58
25
DATA ANALYSIS
59-89
26
HYPOTHESIS SUBSTANTIATION
90
27
SWOT ANALYSIS OF TATA PIPES
91
28
COMPANY PROFILE OF KEY COMPETITOR: JINDAL PIPES
89
29
PRODUCT RANGE
93
30
SWOT ANALYSIS; THREAT OF SUBSTITUTION IDENTIFIED
94
31
RECOMMENDATION
95-96
34
BIBLIOGRAPHY
97
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INTRODUCTION TO TATA STEEL LTD.
� Tata steel Ltd. was established in 1907 and was the first integrated steel plant in India . It
commenced its operation 1911,with a capacity of 1,00,000 tones per annum of ingots and
expended to a million tones per annum of saleable steel by the mid fifties , presently it
has an annual capacity of 6 million tones at its Jamshedpur plants.
� TATA STEEL LTD.operates as India's largest integrated steel works in the private sector
with a market share of nearly 13 percent and is the second largest steel company in the
entire industry. Its products and services include hot and cold rolled coils and sheets,
tubes, construction bars, forging quality steel, rods, structurals, strips and bearings, steel
plant and material handling equipment, Ferro alloys and other minerals, software for
process controls, and cargo handling services. Through its subsidiaries, TATA STEEL
LTD. also offers tinplate, wires, rolls, refractories, and project management services.
� Its steel plant at Jamshedpur produces four million tones of hot and cold rolled flat and
long products. The plant ,equipped with the latest steel making facilities such as basic
oxygen furnaces , vacuum degassing and continuous casting units ,presents the very
epitome of technological advancement .A whole range of steel addressing the needs of
the construction/ Engineering and Automotive sector, testify to Tata Steel capability .
These product have found acceptance not only in the domestic market but all over the
world.
� The company is backward integrated with owned iron ore mines and collieries. With its
competitive advantage in raw materials, efficient operations and the benefits of a
recently-completed $2.3 billion programme of modernization, Tata Steel is among the
lowest cost steel producers in the world.
� The steel major has won the Prime Minister's Trophy four times. This award is instituted
by the Indian ministry of steel and awarded to the country's best integrated steel plant. In
2000, it became the first Tata company to win the JRD Tata QV award, given to the
company with 'world class' operations under the Group's Tata Business Excellence Model
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COMPANY HISTORY
Tata Iron & Steel Company Ltd. (TISCO); now known as TATA STEEL LTD. is the iron and
steel production company associated with the Tata group of some 80 different industrial and
other business enterprises in India, founded by members of the Tata family. Tata's Early
Beginnings in the 1800s
The story of TATA STEEL LTD. is the story of one family or, more accurately, one man whose
vision and determination to give India a modern industrial economy helped to provide a platform
for the country's independence half a century after his death. At the same time, he helped create
what was by 1970 India's biggest nonpublic enterprise.
� Jamsetji Nusserwanji Tata was born into a well-to-do family of Bombay Parsees in
1839.Tata's father was a successful merchant with interests in the cotton trade to Britain.
Tata joined the family business after an education at Elphinstone College in Bombay and
was sent to Lancashire, England, in 1864 to represent the firm there.
� Tata's own background was in cotton production. He believed that mills could function
successfully in India in close proximity to the cotton-producing areas in the west of the
country, thereby putting them in a strong position to undercut their Lancashire
competitors.
� He obtained air conditioning equipment from suppliers in the United States and the latest
cotton spinning machinery installed to provide the optimum climatic conditions for
spinning. His early ventures showed promise and in 1874 he founded his first company,
the Central India Spinning, Weaving and Manufacturing Company.
� Cotton was only a start. From his travels in other industrialized nations he had come to
identify three essential elements for a modern industrial economy: steel production,
hydroelectric power, and technical education. Although he did not live to see any of his
schemes in these areas come to fruition, he laid the foundations on which his sons, and
then later generations of his family, were able to build to realize his ambitions.
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Tata Steel was established by Indian Parsi businessman Jamsetji Nusserwanji Tata in 1907
(he died in 1904, before the project was completed).
� Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work
day was the legal requirement in England.
� It introduced leave-with-pay in 1920, a practice that became legally binding upon
employers in India only in 1945.
� Similarly, Tata Steel started a Provident fund for its employees as early as in 1920,
which became a law for all employers under the PROVIDENT FUND ACT only in 1952.
Tata Steel's furnaces have never been disrupted on account of a labour strike and
this is an enviable record.
VISION
Tata Steel enters the new millennium with the confidence of a learning, knowledge-based and
happy organization. We will establish ourselves as the supplier of choice by delighting our
customers with our services and our products. In the coming decade, we will become the most
cost-competitive steel plant and so serve the community and the nation. Where Tata Steel
ventures others will follow.
MISSION
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to
strengthen India's industrial base through the effective utilization of men and materials. The
means envisaged to achieve this are high technology and productivity, consistent with modern
management practices. Tata Steel recognizes that while honesty and integrity are essential
ingredients of a strong and stable enterprise, profitability provides the main spark for economic
activity. Overall, the Company seeks to scale heights of excellence in all that it does in an
atmosphere free from fear, and one, which encourages innovativeness and creativity.
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THE FOUNDER
JAMSETJI NUSSERWANJI TATA (1839-1904)
Jamsetji Nusserwanji Tata ranks among the greatest visionaries of
Industrial enterprises of all time.
Gifted with the most extraordinary imagination and prescience, he laid the
foundations of Indian industry, contributed to its consolidation, and became
a key figure in India’s industrial renaissance.
Born on 3rd March, 1839 into a family descended from Parsi priests in Navsari, a centre for age-
old Parsi culture, he was educated at Elphinstone College, Bombay.
Initiated early into the techniques of trade by his father, he traveled wide, gained a scientific
outlook, and set up at first, textile business in India, introducing new machinery that vastly
improved the production of cotton yarn in the country. He however realized that India’s real
freedom depended upon her self-sufficiency in scientific knowledge, power and steel, and thus
devoted the major part of his life, and his fortune to three great enterprises – The Indian Institute
of Science at Bangalore, the hydro-electric schemes, and the Iron & Steel Works at Jamshedpur.
Wealth to him was not the end but a means to an end, the increased prosperity of India. His
attitude to labour was remarkably ahead of his times, constantly reinforcing the norm that the
success of industry depended upon sound and straightforward business principles, the interests of
the shareholders, the health and welfare of the employees. As early as 1892, he established the J
N Tata endowment for higher education abroad of outstanding Indian students.
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PIONEERS
� SIR DORABJI TATA (1859-1933)
J N Tata had exhorted to his sons to pursue and develop his life’s work; his
elder son, Dora Tate carried out the bequest with scrupulous zeal, and
distinction.Dorab Tata was the first Chairman of the gigantic Tata
enterprises. He had a deep interest in people. The great labour strike in 1920
in Jamshedpur ended in a day due to his intervention. It demonstrated India
could have no better employer of labour than Sir Dorab. A great sportsman
(riding, tennis, football, cricket), he was President of the Indian Olympic Association which he
served keenly with liberal funds, and total commitment. He was the Founder of the Parsi
Gymkhana of Bombay, and a founder member of the Willingdon Sports Club. His charities were
numerous and munificent. The Dorab Tata Charitable Trust that he executed, covering property
and crores of rupees is used today for innumerable charitable causes and
institutions.
� BHARAT RATNA JEHANGIR RATANJI DADABHAI TATA
(1904-1993)
JRD Tata has been one of the greatest builders and personalities of modern
India in the twentieth century. He assumed Chairmanship of Tata Sons
Limited at the young age of 34; but his charismatic, disciplined and
forward-looking leadership over the next 50 years and more, led the Tata Group to new heights
of achievement, expansion and modernization. Under his stewardship, the number of Tata
ventures grew from 13 to around 80, encompassing steel, power generation, engineering, hotels,
consultancy services, information technology, art and culture, consumer goods, industrial
products, etc. He was the pioneer of civil aviation in India. In 1932, he introduced air transport in
the country--the enterprise later became Air India.
He implicitly followed the principles of business ethics of the great visionary Jamsetji Tata, his
ideal. He also personally crusaded for issues that he felt were imperative for India’s
development--family planning, women’s education, spread of literacy. The 100% successful
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family welfare schemes at Tata Steel and the various educational programs for all, directly
emanate from JRD Tata’s insight. Numerous national and international honours were bestowed
on JRD Tata. These included Knight Commander’s Cross of the Order of Merit of the Federal
Republic of Germany, Bessemer Medal of the Institute of Metals, London, and the United
Nations Population Award. Government of India conferred the highest civilian award of the land,
Bharat Ratna to JRD Tata in 1992.For all his colossal achievements, JRD Tata was a modest,
sensitive man, forever espousing the cause of his employees. His natural love for people
endeared him to all... across the entire spectrum of society.
� RATAN TATA – (1993 – Till now)
Ratan N. Tata serves as Chairman of the board, Member of
Group Corporate Centre and Member of Group Executive
Board of Tata Group. Mr. Tata was appointed Director-in-
charge of National Radio & Electronics Company Ltd.
India’s industrial renaissance.Tata Steel is a solid manifestation of the iron grit, courage and
determination of its founder, Jamsetji Tata (NELCO) in 1971. He serves as Chairman
Emeritus for Nelco Ltd. Tata Motors Ltd. , Tata Chemicals Ltd. , Tata Power Company
Ltd. ,Tata Iron & Steel Co. Ltd. and Tata Tea Ltd. Mr. Tata joined Tata Group in 1962. As a
Chairman of Tata Industries Ltd. since 1981, he was responsible for transforming the company
into a Group strategy think-tank and a promoter of new ventures in high technology businesses.
In 1991, Mr. Tata was appointed Chairman of Tata Sons Ltd. the holding company of the Tata
Entities and currently holds the Chairmanships of major Tata companies. During the tenure, the
groups revenues have grown over ten-fold to annualized group revenues of $62.5 billion.
Mr. Tata is on the Central Board of the Reserve Bank of India, a member of the Prime Minister
Council on Trade and Industry beside a member of various global councils. He is also the
Chairman of two of the largest private sector promoted philanthropic trust in India.
The Government of India honored Mr. Tata with its second highest civilian award, the
Padma Vibhushan, in 2008. Earlier, in 2000, he had been awarded the Padma Bhushan. He
has also been conferred an honorary doctorate in business administration by the Ohio State
University, an honorary doctorate in technology by the Asian Institute of Technology, Bangkok,
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an honorary doctorate in Science by the University of Warwick, and honorary fellowship by the
London School of Economics. Mr. Tata has been on the company Board since over 19 years
including 13 years in an executive capacity and is actively involved with product development
and other business strategies pursued by the company. One of his achievements include
designing and developing an indigenous Indian car-Indica & Nano; which decides creating a
record of sorts, is one the leading products in its category in the car market.
� Cyrus Mistry – (From Dec’2012)
Cyrus Mistry, 43, is the son of construction tycoon Pallonji Shapoorji Mistry. Valued at $8.8 billion, Pallonji holds an 18.5 per cent stake in Tata Sons, making him the single largest shareholder. He has been a director of Tata Sons since September 1, 2006. He served as a Director of Tata Elxsi Limited, from September 24, 1990 to October 26, 2009 and was a Director of Tata Power Co. Ltd until September 18, 2006.Mr Mistry serves as Chairman of the Board of Shapoorji Pallonji Group and Afcons InfrastructureLimited. Mr Mistry also serves as Director of various companies including - Forvol International Services Ltd, Shapoorji Pallonji & Co. Ltd, Cyrus Investments Ltd, Shapoorji Pallonji Power Co. Ltd, Buildbazaar Technologies (India) Pvt Ltd, Sterling Investment Corporation Pvt. Ltd, Samalpatti Power Co. Pvt. Ltd, Shapoorji Pallonji & Co. (Rajkot) Pvt. Ltd, Shapoorji Pallonji Finance Ltd, Shapoorji Pallonji Infrastructure Capital Co. Ltd, Oman Shapoorji Construction Co. Ltd. Mr Mistry has been a Non-executive Director of Forbes Gokak Limited since June 23, 2003. Mr Mistry is Fellow of the Institute of Civil Engineers. He holds BE (Civil Engineering) from Imperial College, London and Master of Science in Management from London Business School. He holds a Bachelor of Commerce from Mumbai University. An avid golfer, Mr Mistry is also a founder member of the Construction Federation of India. He is a trustee of the Breach Candy Hospital Trust, Mumbai. He is also on the board of Imperial College India Foundation. He has been appointed deputy chairman and chairman-designate of Tata Group and its holding company Tata Sons which will make him the first non-Indian national to head the Indian conglomerate. Mistry will work with the current chairman Ratan Tata for one year and begin serving as chairman in December 2012
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LOCATION MAP OF TATA STEEL
COMPANY PROFILE
The Tata Steel Group has always believed that mutual benefit of countries, corporations and
communities is the most effective route to growth.
� Tata Steel has not limited its operations and businesses within India but has built an
imposing presence around the globe as well. With the acquisition of Corus in 2007
leading to commencement of Tata Steel's European operations, the Company today, is
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among the top ten steel producers in the world with an existing annual crude steel
production capacity of around 30 million tonnes per annum and employee strength of
above 80,000 across five continents. The Group recorded a turnover of Rs.147,329
Crores (US$ 28,962 million) in 2008 - 2009. The Company has always had significant
impact on the economic development in India and now seeks to strengthen its position of
pre-eminence in international domain by continuing to lead by example of responsibility
and trust.
� Tata Steel’s overseas ventures and investments in global companies have helped the
Company create a manufacturing and marketing network in Europe, South East Asia and
the Pacific-rim countries. The Group’s South East Asian operations comprise Tata Steel
Thailand, in which it has 67.1% equity and Nat Steel Holdings, which is one of the
largest steel producers in the Asia Pacific with presence across seven countries.
Managing a global workforce and setting global benchmarks is primarily about managing
diversity. In a process of inclusive growth, every person contributes to the blueprint of the future
and is truly committed to the stated objectives. And one of the key requisites for successful
diversity management is a shared vision.
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BOARD OF DIRECTORS
Mr. Ratan Tata (Chairman)
Mr. B. Muthuraman (Vice Chairman).
Mr. H.M. Nerurkar (Managing Director).
Mr. N.N. Wadia (Independent Non Executive Director).
Mr. S.M. Palia (Independent Non Executive Director).
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Mr.Sureshkrishna (Independent Non Executive Director)
Mr. Ishant Hussain (Independent Non Executive Director)
Dr. Jamshed J Irani (Independent Non Executive Director)
Mr. S. Bhargava (Independent Non Executive Director)
Mr. Jacobus Schraven (Independent Non Executive Director)
Mr. Andrew Robb (Independent Non Executive Director)
Mr. Kirby Adams (Not Independent, Non Executive Director)
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BUSINESS ETHICS
The Tata Steel Group is proudly represented by people who act with integrity and passion. The
strong focus on Value Creation and Corporate Citizenship has helped the group build an enviable
corporate reputation founded in honest and transparent approaches.
The values and principles, which have Governed Tata Steel’s business for a century, have
been deployed through the implementation of the Tata Code of Conduct (TCOC), which
was first formally articulated in 1998. This Code was intended to serve as a guide to each
employee on the values, ethics and business principles expected of him or her in personal and
professional conduct. The Management of Business Ethics is effectively instituted today in Tata
Steel through its four pillars concept.
• Leadership
• System and Processes
• Training and awareness
• Measurement
A number of initiatives are continuously taken to reinforce the Code of Conduct among
employees and other stakeholders. The systems and processes are revisited and modified
constantly to ensure that they are not subjected to unethical practices.
� The Communications function of Tata Steel Group has been of supreme importance in
connecting and building relationships of trust within the organization and outside and in
reflecting the aspirations and goals for the future.
� The senior leadership team in the Company is actively engaged in communication on
business ethics at various levels and forums.
� The Company does not ever hesitate to take visible disciplinary actions when necessary
and no violation of TCOC, however insignificant, is ever tolerated. The aim is to
strengthen employee involvement in a positive and regular manner and enhance the
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sense of accountability.
CORPORATE SOCIAL RESPONSIBILITY
"Every Company has a special continuing responsibility towards the people of the area in
which it is located. The Company should spare its doctors, managers to advice the people
of the village and supervise near development undertaken by co-operative effort between
them and the company" - Mr. J.R.D. Tata
The purpose of Tata Steel’s business has, since its inception, extended well beyond just steel
making. Since the beginning of operations, Tata Steel envisaged its Steel Works, mines and
collieries as symbols of nation building and an endeavour to improve the quality of life of its
people, with a special interest in the communities where it operates.
The belief that progress of the community is integral to a harmonious business environment led
to need-based interventions in the early years. This gradually evolved into structured
mechanisms represented by Tata Steel’s numerous social and community welfare groups. The
idea of inclusive growth has been initiated with the view that Tata Steel’s successes are shared
by all its constituents and shareholders. Therefore the scope of improvement initiatives reach
far beyond the immediate circle constituting employees and their families to communities that
are directly or indirectly impacted by the Company. In its global operations too, Tata Steel has
ensured that several specific initiatives are taken towards benefiting extended communities
through the Group’s business.
SUSTAINABILITY INITIATIVES:
In facilitating sustainable development and inclusive growth, Tata Steel Corporate
Sustainability Services (CSS) has been taking steps through its operating social arms that
address the needs of the community. In its areas of operation, capacity building for human,
social and financial value creation has spawned initiatives in sustainable livelihood, education,
health, renewable energy and affirmative action with the objective of improving the economic
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and social status of the communities. The most prominent social-activity groups are: Tata Steel
Rural Development Society (TSRDS), Tata Cutural Society (TCS), Community
Development & Social Welfare Department (CD&SW), Tata Steel Family Initiatives
Foundation (TSFIF) & Urban Services.
Years of involvement, either directly or through the operating units has made Tata Steel one of
the largest non-governmental agencies to be engaged in community development in the
Country. Through the years the Company has – Supported and nurtured leadership among
self-help groups and village advocacy groups, Encouraged multi cropping and irrigation
across thousands of acres in over 800 villages in Jharkhand, Orissa and Chhattisgarh.
Earmarked dedicated resources for social welfare, rural and tribal development and
programmes for community empowerment. Encouraged enterprise development to create
sustainable growth in the villages. Adopted rehabilitation and resettlement initiatives
under the 'Tata Parivar’ programme for all families affected by Greenfield projects.
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STRATEGIC BUSINESS UNITS
Apart from the main steel division, Tata Steel's operations are grouped under the following
strategic business units.
FLATS
The Flat products business group of the Steel division is the country’s
largest manufacturer of world-class steel products. With a capacity of
2.5 million tones per annum of hot rolled, cold rolled and coated
products, this business group produces approximately 65% of total
saleable steel. The ‘steel with a soul’, ‘Tata Steelium’ is one of the
first branded cold rolled steel products in India. The brand promises
superior formability, flatness, surface quality, thickness, consistency
and strength
LONGS
The Long products business group of the Steel division produces
value-added finished products comprising SBQ (Special Bar Quality),
wire rods, merchant bars and semis in the form of continuous cast
billets.
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FERRO ALLOYS AND MINERALS
This business unit operates the chrome mines in Sukinda valley in
Orissa and has a Ferro chrome making unit in Bamnipal and a Ferro
manganese unit at Joda. It is one of the largest players in the global
ferro chrome market.
TUBES
Tata Steel Tubes business unit is the largest domestic manufacturer of
steel tubes. It promotes three lines of businesses: Standard tubes,
Precision tubes and Closed structural.
BEARINGS
Tata Bearings is a leader in the auto ancillary two-wheeler market
segment.It produces around 22.46 million ball bearings and 2.56
million taper roller bearings.
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GROWTH-SHOP
Growth Shop delivers world-class services and equipment. Over the
years, it has played an important role in the modernization of Tata Steel’s
Jamshedpur plant. The Growth Shop has the capacity to design,
manufacture and commission equipment for the Steel and allied
industries.
RINGS
The Rings division produces rings and annular products at the ring plant
and Ring Rolling Mill for ball bearings, taper roller bearings, cylindrical
roller bearings, spherical roller bearings and auto-components.
AGRICO
Tata Agrico products are the most sought after hand tools and implements
for agriculture and industrial applications in the country.
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FINANCIALS FOR THE LAST 5 YEARS (Figures in crores)
Cash Flow for last 5 years
Particulars Mar'11 Mar'10 Mar'09 Mar'08 Mar'07
Profit Before Tax 9,776.85 7,214.30 7,315.61 7,066.36 6,261.65
Net Cash Flows from Operating Activity 8,542.72 8,369.22 7,397.22 6,254.20 5,118.10
Net Cash Used in Investing Activity -13,288.13 -5,254.84 -9,428.08 -29,318.58 -5,427.60
Net Cash Used in Financing Activity 5,652.81 -1,473.13 3,156.42 15,848.07 7,702.46
Net Inc/Dec in Cash and Cash Equivalent 907.40 1,641.25 1,125.56 -7,216.31 7,392.96
Cash and Cash Equivalent - Beginning of the Year 3,234.14 1,592.89 465.04 7,681.35 288.39
Cash and Equivalent - End of the Year 4,141.54 3,234.14 1,590.60 465.04 7,681.35
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SUBSIDIARY ASSOCIATES
Corus : Europe’s second largest steel maker with operations in the
UK and mainland Europe and over 40,000 employees worldwide. Its
long and strip products cater to the construction, automotive,
packaging, engineering and other markets worldwide. Corus is
implementing major investments at its plants at Ijmuiden, in the
Netherlands and at Scunthorpe in the UK as part of its drive to
strengthen product differentiation, improve operational efficiency and
reinforce existing competitive position, particularly in the
construction and automotive sectors, including the development of
new advanced high strength steels.
Tinplate Company of India Limited (TCIL) : With a market share of
over 35%, it is the industry leader in India. It has the capability to
supply all tinning line products including electrolytic tinplate / tin-
free steel and cold-rolled products.
Tayo Rolls Limited: India's leading roll manufacturer and supplier,
the company produces rolls which find application in integrated steel
plants, power plants, the paper, textile and food processing sectors,
and the government mint.
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Tata Ryerson Limited (TRYL): TRYL Is in the business of steel
processing and distribution. It offers hot and cold rolled flat steel
products in customized sizes and quantities through processing
services and materials management services.
Tata Refractories Limited (TRL): It produces High Alumina, Basic,
Dolomite, Silica and Monolithic Refractories and offers design,
procurement and re-lining applications services. It is one of the few
companies worldwide to produce silica refractory for coke ovens and
the glass industry.
Tata Sponge Iron Limited (TSIL): TSIL is the first Indian sponge
iron plant based on Tata Steel's Direct Reduction Technology. Its
major product lines are sponge iron lumps and fines.
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Tata Metaliks: Amongst the top wealth creating companies (EVA+)
in the country, Tata Metaliks is engaged in the business of
manufacturing and selling foundry grade pig iron.
Tata Pigments Limited: TPL's range of products includes oxides of
iron, dry cement paint, exterior emulsion paint and distemper. Its
products are used in paints, emulsion, cement floors, plastic etc.
Jamshedpur Injection Powder Limited (Jamipol): JAMIPOL
manufactures carbide de-sulphurising compounds which are used for
de-sulphurising hot metal for the production of low-sulphur, high-
quality steel.
TM International Logistics Limited (TMILL): TMILL provides
material handling and port operation services at Haldia and Paradip
Ports in addition to providing freight forwarding and chartering
services.
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mjunction services limited : mjunction, operating at the cutting edge
of Information Technology, is a 50:50 venture of SAIL and Tata
Steel. It is India's largest ecommerce company and the world's largest
eMarketplace for steel. mjunction offers a wide range of selling,
sourcing and knowledge services that empower businesses with
greater process efficiencies
TRF Limited: TRF, one of India's leading companies in the business of
design, manufacture, supply, installation and commissioning of
engineered-to-order equipment and systems in the areas of bulk material
handling, processing, reclaiming and blending. TRF has also made its
mark in the fields of coke oven equipment, coal dust injection systems
for blast furnaces and coal beneficiation systems.
Jamshedpur Utility and Service Company Limited (JUSCO): Re-
engineered out of Tata Steel's town services, JUSCO is a wholly owned
subsidiary of Tata Steel and is the country's first enterprise that provides
municipal and civic services for townships. JUSCO is the only EMS
14001 civic services provider in the country
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The Indian Steel and Wire Products Limited (ISWP): Recently
acquired by Tata Steel, ISWP has two units - a wire unit comprising
wire drawing mills, wire rod mills and a fastener division and a steel roll
manufacturing unit named Jamshedpur Engineering and Machining
Company - JEMCO.
Dhamra Port Company, Orissa: A JV between Larsen & Toubro
Ltd. and Tata Steel Ltd., the company will build a deep-draft (18
meters) all weather port on the east coast of India. The port will
handle 80 million tons per annum of cargo.
Hooghly Met Coke & Power Company : A joint venture with West
Bengal Industrial Development Corporation Ltd., HMC&PC
envisages an annual met coke production capacity of 1.2 million
tones and 90 MW of electric power
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Lanka Special Steel Limited: The only unit in Sri Lanka
manufacturing galvanised wires.
Sila Eastern Company Limited: Established to develop limestone
mines in Thailand, mainly for the captive use of Tata Steel.
NatSteel Asia (NSA): A leading supplier of premium steel products
for the construction industry. NatSteel Asia became a 100%
subsidiary of Tata Steel in February 2004. NSA produces about 2 MT
of steel products annually across its regional operations in seven
countries
Tata Steel Thailand: The company is the dominant steel producer in
Thailand. The company has the capacity to produce 1.7 million tons
of steel for the construction industry per year.
\
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Tata BlueScope Steel Limited: A joint venture with BlueScope Steel
Limited, Australia, Tata BlueScope Steel Limited offers a
comprehensive range of branded steel products for building and
construction applications. The Company is constructing a state-of-
the-art metallic coating and painting facility at Jamshedpur
Tata Steel KZ: Proposes to set up high carbon ferrochrome plant in South Africa. The plant is
slated to be commissioned by October 2007 with an annual production capacity of 135,000 tons
during Phase 1.
Tata NYK: A joint venture with Nippon Yusen Kabushiki Kaisha (NYK Line) for setting up a
shipping company to cater to dry bulk and break bulk cargo. Tata Steel and NYK will each hold
50% stake in the joint venture company.
TUBES DIVISON
INTRODUCTION
Steel Tube Technology opened up in India in the early 1950s with the establishment of the
Indian Tube Company Ltd. (ITC), a joint venture between Tata Steel and Stewarts & Lloyds UK.
After the disinvestments by British Steel, ITC merged with Tata Steel to form the Tubes Division
in 1985, which today is the leading Welded Steel Tube Company in India with a manufacturing
capacity of 200,000 tones. Pipes manufactured by the Company’s strategic business unit Tata
Tubes, is the most prominent brand in the industry today which is retailed through a wide
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distribution network. A deeply thought out branding exercise was undertaken in order to unleash
the power of the ‘Tata Pipes' brand in the welded steel category. The Tubes-SBU promotes three
lines of businesses - (i) The Commercial Tubes Business under the Tata Pipes brand, (ii) The
Precision Tubes Business and (iii) The Steel Hollow Sections Business under the Tata Structura
brand. Tata Tubes - a Strategic Business Unit (SBU) of Tata Steel, is the largest domestic
manufacturer of steel tubes today. Tata Tubes is presently the leading "Welded Steel" Tube
Company in India with a manufacturing capacity of 400,000 tonnes. Its main works is situated at
Jamshedpur and the marketing head office in Kolkata.
ORGANIZATIONAL HIERARCHY OF TATA TUBES IS DEPICTED AS
FOLLOWING:
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SIPOCMODEL
SUPPLIERS -CORUS; FERRO AND ALLOYS DIVISON AND
TATA STEEL.
INPUT -
IRON ORE ; COAL; FERRO AND ALLOYS.
PROCESS- HFIW ( HIGH FREQUENCY INDUCTION WIELDING PROCESS)
OUTPUT -COMMERCAIAL TUBES ; PRECISION TUBES; TATA STRUCTURA.
CUSTOMER - TATA MOTORS; TOYOTA; HONDA; M&M. & MANY OTHERS THROUGH E-PROCUREMENT.
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PRODUCT AND ITS APPLICATION
PRODUCT BRAND NAME APPLICATION
Commercial Tubes
Tata Pipes
Cater to the plumbing, irrigation, cold storage, HVAC
applications and other Industrial end usage.
Structural Tubes
Tata Structura
Used for a variety of architectural, industrial, scaffolding,
infrastructural and general engineering applications.
Landmark airport structures in India have been built using
Tata Structura
Precision Tubes
Tata Precision
Tubes
The Tubes Division entered the high-tech segment with the
successful commissioning of its hydroforming line and
commencement of supply of tubular hydroformed engine
cradle for the Tata Nano cars. It has also developed telescopic
front fork for motorcycles
PRODUCTION MILL SPECIFICATION:
SIZE RANGE
MILL OD THICKNESS
2”ERW 12.70mm - 50.80mm
0.60mm - 5.50mm
3”HFIW 12.70mm - 76.20mm
0.60mm - 6.00mm
4”ERW 31.75mm -114.30mm 1.50 mm- 6.00 mm
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PRODUCT PROFILE & SPECIFICATION
As the tubes are manufactured from high quality hot rolled coils from the advanced hot strip mill
of Tata Steel, they come with a number of sure advantages. These steel tubes are manufactured
in ISO certified manufacturing facilities, under strict quality control norms, and have high
strength and durability.The “Tata Steel Tubes Division” manufactures Tubes in accordance with
the Lioyds Register and according to Central Boiler Board; we are a “well known pipe maker”
under regulation 4C (2) of the IBR Act 1950. Few tube makers in India enjoy this self-
certification status. The division has also been accredited with the ISO 9002 Certification for
confirming to high quality standards.
COMMERCIAL TUBES:
Indian Standards: IS 1239 & IS 3589;
British Standards: BS 1387; American
Specifications: ASTM A 53
PRECISION TUBES: Indian Standards: IS:
1914, IS: 1978, IS: 2039, IS: 3074, IS: 3601,
IS: 7138, IS: 8036, IS: 1161, IS: 4923,
British Standards: BS: 980, BS: 1717, BS:
1775, BS: 3059, BS: 6323, American
Specifications: ASTMA 178, ASTM A
214,Japanese Standards: JIS: G 3445
PRODUCT SPECIFICATION OF TATA PIPES AS PER IS 1239:
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Nominal
Bore (mm)
Class
or
category
Outside diameter
(mm)
Thickness
(mm)
Mass of tube black and galvanised
Max.
Min.
Plain end
kg/m
Screwed & socketed kg/m
Plain end
meter/ton
Screwed & socketed meter/ton
15 L
M
H
21.4
21.8
21.8
21.0
21.0
21.0
2.0
2.6
3.2
0.947
1.21
1.44
0.956
1.22
1.45
1056
826
694
1046
820
690
20 L
M
H
26.9
27.3
27.3
26.4
26.5
26.5
2.3
2.6
3.2
1.38
1.56
1.87
1.39
1.57
1.88
725
641
535
719
637
532
25
L
M
H
33.8
34.2
34.2
33.2
33.3
33.3
2.6
3.2
4.0
1.98
2.41
2.93
2.00
2.43
2.95
505
415
341
500
412
339
32
L
M
H
42.5
42.9
42.9
41.9
42.0
42.0
2.6
3.2
4.0
2.54
3.10
3.79
2.57
3.13
3.82
394
323
264
389
319
262
40
L
M
H
48.4
48.8
48.8
47.8
47.9
47.9
2.9
3.2
4.0
3.23
3.56
4.37
3.27
3.60
4.41
310
281
229
306
278
227
50
L
M
60.2
60.8
59.6
59.7
2.9
3.2
4.08
5.03
4.15
5.10
245
199
241
196
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H 60.8 59.7 4.5 6.19 6.26 162 160
65
L
M
H
76.0
76.6
76.6
75.2
75.3
75.3
3.2
3.6
4.5
5.71
6.42
7.93
5.83
6.54
8.05
175
156
126
172
153
126
80
L
M
H
88.7
89.5
89.5
87.9
88.0
88.0
3.2
4.0
4.8
6.72
8.36
9.90
6.89
8.53
10.1
149
120
101
145
117
96
100
L
M
H
113.9
115.0
115.0
113.0
113.1
113.1
3.6
4.5
5.4
9.75
12.2
14.5
10.0
12.5
14.5
103
82
69
100
80
68
125
M
H
140.8
140.8
163.9
163.9
4.8
5.4
15.9
21.9
16.4
18.4
63
56
61
54
150
M
H
166.5
166.5
163.9
163.9
4.8
5.4
18.9
21.3
19.5
21.9
53
47
51
46
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Dimension and nominal mass of steel tubes-light , medium & heavy conforming to IS :1239
Large diameter pipes to specifications IS3589:2001
Tubes for water, Gas, and sewage extracts from IS: 3589
Specification Chemical requirements ladle analysis(%)
Physical properties requirement (minimum
values)
IS:3589
Steel grade
C(max) P(max) S(max) tensile strength
Mpa(min)
%Elongation
5.65√S (min)
Fe330 0.17 0.055 0.055 330 20
Specification Test Permissible variations
IS:3589
Hydrostatic test MPa
Flattening test
Outside diameter
Thickness Straightness
5 No opening shall occur by fracture in the weld until the
distance between the
plates <75%of OD. For further
(+,-)
o.75%
(+,-)
10%
Deviation less than 2%of the
total lenght
Dimensions and nominal mass of steel Tubes-preferred sizes
Nominal Bore (mm)
Outside diameter
(mm)
Thickness
(mm)
Mass of tube
(kg/mtr)
Mass of tube
(meter/ton)
200 219.1 4.35 23.04 43.40
200 219.1 5.00 26.40 37.88
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200 219.1 6.35 33.32 30.01
250 273.1 5.00 33.06 30.25
250 273.1 6.35 41.77 23.94
300 323.9 5.00 39.32 25.43
300 323.9 6.35 49.72 20.11
OD= outside diameter in mm, T = thickness in mm ; Abbreviation :
Mpa=megapascal = N/Sq.mm, N=newton=kg.m/sq.second, s=second , t= thickness , D= diameter, Uti= up to and including , YP=specified minimum yield strenght(psi), P= test pressure for plane – end pipe,YS = yield strenght,TS=tensile strenght, OD= outside diameter ,NB= nominal bore ,L light series , M = medium series , H =heavy series
MANUFACTURING TECHNOLOGY
(1)The Tata Group has been a pioneer in adopting the most modern, state-of-the-art technologies
for its businesses.
(2)The Standard Tubes Plant for Tata Pipes and Tata Structura boasts of high class facilities in
tube making, with technology from OTO Mills (Italy), Kusakabe (Japan) and MAIR Research
(Italy).
(3)The Precision Tubes plant has added a new 4" mill from OTO Mills (Italy) to its existing 2"
and 3" mills, thereby extending the Precision Tubes range to 114.3 Outer diameter and 6 mm
thickness, with a combined capacity of 90000 tonnes per annum. The recently set up
hydroforming mill from Schuler Germany, has a capacity of 3500 tonnes.
(4)The Tata Steel Tubes Division uses HFIW (High Frequency Induction Welding) mills to
manufacture its tubes. It has an ERP in place to control the business, which seamlessly integrates
the key functional units within the SBU.
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MANUFACTURING PROCESS
Commercial tubes are manufactured by the high frequency induction welding process which
commonly known as the HFIW process. The current manufacturing range extends from 12.7mm
to 76.2mm OD. The thickness range is from 0.6mmto 4.06mm.
• The process entails forming of hot rolled steel strip into tubular shape and welding the
edges under pressure, using induction heating. Since forming takes place at ambient
temperature using cold rolled strip, a very close control on dimensions and surface finish
of the tubes is possible. Pre-treated hot rolled strip, subsequently cold rolled to close
tolerances, is the feed-stock for the manufacture of precision ERW tubes.
• In the 3-inch HFIW mill, the hot rolled strips are leveled and the end cuts square to
enable end to end welding of coils to form endless lengths of strips for maintaining the
continuity of the mill.
• The strip edges are then trimmed to ensure cleanest possible surface for welding. The
mill proper consists of series of forming rolls which bend the strip progressively into
tubular form by centre forming with abutting edges.
• The process of tube making in the 3 inch Commercial tube mill, through quite similar to
that of the old mill, incorporates the latest technology. The superior edge forming
technique employed here has made it possible o roll tubes with thickness/diameter ratio
ranging from 1.6to10%.it has a state-of-the-art automatic weld-temperature controller,
which ensures complete consistency in the weld quality irrespective of any minor
variations in the mill speed, strip thickness etc. its automatic high speed cut-off machine
is designed to cut tubes of at speeds of 100 meters/minute.
The entire manufacturing process of tata pipes take place in commercial tube mill.
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SEGMENT CHOSEN FOR RESEARCH WORK: COMMERCIAL TUBES
Application:
• Plumbing
• Irrigation
• Process (cold storage & HVAC)
PROJECT CHARTER
BUSINESS CASE:
Undertaking this project would benefit the organization in following ways:
1. In estimating the current market share and finding out new business opportunities.
2. In identifying the problematic areas to be worked upon to maintain or increase the market
share & brand equity.
3. It would also help in detecting the strengths and weaknesses of the competitors and
provide knowledge about their aggressive marketing strategies.
PROJECT: To find the market potential of Tata pipes in Jharkhand.
GOALS/ OBJECTIVES:
1: Find out the share of commercial steel and PVC pipes in commercial pipe market.
2: Identify the possible threat of substitution to commercial steel pipes from commercial PVC pipes.
3:Find out the market share of three categories of commercial steel pipes (light, medium & heavy);
market share of different sizes of commercial steel pipes in the above three categories; their percentage
consumption in three segments (plumbing, irrigation & process).
4: Find out the market share of major companies in steel pipe segment for the financial year 2009-10;
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identify the market leader.
5: Find out the market share of major companies in PVC pipe segment and identify the market leader.
6: Find out if TATA PIPES has risk of loosing its market share to the competitor in the steel pipe
segment.
7: Find out all the possible factors affecting sales; identify the areas that may pose a potential risk for
TATA PIPES to lose its market to the competitors.
8: SWOT analysis of TATA pipes.
9: Give due recommendations.
10: Suggest market opportunities, if there are any.
OPERATIONAL DEFINITION:
1 Observation Broad area of research interest identified
2 Priliminary data gathering Interviewing & literature survey
3 Problem definition Research problem should be delineated
4 Theoretical framework Variables should be clearly identified.
5 Generation of hypothesis Hypothesis development
6 Scientific research design Population & sample should be defined.
7 Data collection Preparing questionnaire & conducting survey
8 Data analysis, interpretation &deduction Hypothesis substantiation
9 Recommendation. Suggestion on findings
10 Report writing. Summarizing the work done in a report
PROJECT SCOPE: 5 cities of Jharkhand (Jamshedpur, Ranchi, Bokaro, Dhanbad,
Hazaribaag); 10 dealers in each city.
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MILESTONES:
05th dec – 09st dec Observation
10th dec – 15th dec Preliminary data gathering by literature review.
16th dec– 19st dec Problem definition, theoretical framework &
generation of hypothesis.
20th dec – 05th jan Scientific research design & questionnaire
preparation for sample survey.
Data collection:
06th jan – 10th jan Survey in Jamshedpur
11th jan – 14th jan Survey in Ranchi
15th jan – 20st jan Survey in Bokaro
21st jan – 25th jan Survey in Dhanbad
26th jan – 31th jan Survey in Hazaribaag
1st feb – 5th feb Data analysis and interpretation; hypothesis
substantiation & recommendation.
6th feb – 10th feb Report writing
12th February Report presentation.
ROLES AND RESPONSIBILITIES :
Names of students Responsibility
Amit sharma, Amit singh, Brajesh Observation to generation of hypothesis.
Amit sharma, Amit singh, Brajesh Scientific research design & questionnaire
preparation.
Amit sharma, Amit singh, Brajesh To conduct survey in Jamshedpur
Amit sharma, Amit singh, Brajesh Conduct survey in Ranchi.
Amit sharma, Amit singh, Brajesh Conduct survey in Bokaro.
Amit sharma, Amit singh, Brajesh Conduct survey in Dhanbad & Hazaribaag
Amit sharma, Amit singh, Brajesh Data analysis to report writing & presentation.
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STEPS FOLLOWED ACCORDING TO THE OPERATIONAL DEFINITION :
(1) OBSERVATION: there exists certain factors that may affect the market potential of Tata
pipes in Jharkhand.
(2) LITERATURE REVIEW: Similar works done before, were consulted. They helped us
to avoid exploratory research, as the problematic area was already identified.
Example: Project -To find the market potential of standard tubes in Jharkhand; prepared
by Naushad Ali, PGDM student, Ranchi University.
(3) PROBLEM DEFINITION: Tata pipes have the risk of loosing market share to its
strongest competitor in Jharkhand.
(4) THEORITICAL FRAMEWORK:
TYPE OF VARIABLE NAME EXPLAINATION
1 Dependent variable (x) Annual sales The major problem faced by
TATA PIPES is its dipping sales;
resulting in lose of market share.
2 Independent variable (y) price
Price directly affects sales.
3 Moderating variables (z) (1)profit margin &
incentive plans for
dealers
(2) availability of
demanded goods
(3) time of delivery
They have a moderating effect in
the sales and price directional
relationship.
(5)HYPOTHESIS DEVELOPMENT: Sales of the product decreases with the increase in its price
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RESEARCH METHODOLOGY
• POPULATION – all commercial pipe dealers in Jharkhand
• POPULATION SIZE – undefined
• SAMPLE – commercial pipe dealers in 5 cities of Jharkhand (Jamshedpur, ranchi,
dhanbad, bokaro & hazaribaag.); 20 dealers surveyed in each city.
• SAMPLE SIZE –100
• SAMPLING METHOD – convenience sampling
• TESTS THAT CAN BE USED IN ANALYZING DATA:
• HYPOTHESIS TESTING; BY USING CORRELATION AND REGRESSION.
DATA COLLECTION
• PRIMARY DATA – it was collected through sample survey by filling up questionnaires.
• SECONDARY DATA - Secondary data was mainly collected from Internet. Data has
been extracted from the official website of Tata Steel (www.tatasteel.com).
TYPES OF INTERVIEW CONDUCTED
Market survey was conducted by using both structured and unstructured interview,
because, most of the dealers did not have enough time to go through each question. So,
we had to conduct unstructured interviews for them and even in cases when some in
depth information was required.
STRUCTURED INTERVIEW was done
by letting the elements of our sample, fill
the exact details asked in the questionnaire
UNSTRUCTURED INTERVIEW was
conducted in places where questions in the
questionnaire needed to be modified
slightly to gain the insight of a situation
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
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LIMITATIONS
� Since we followed convenience sampling method, our study was restricted to certain
specific cities of Jharkhand which may not present the exact market scenario but only
give an estimate.
� Some of the respondents were unwilling to divulge their details as required for the
research. So, we had to switch over to unstructured interviews which gave us a general
information and not the exact values.
� Sampling errors might have crept in and attempt is made to minimize them.
� Considering the mammoth size of the market the sample size was probably inadequate as
converting to other sampling methods, would have required us to visit places most of
which fall in the naxalite infected zones, at geographical disparate location, making them
unsafe for the survey.
� Since the topic was very vast and difficult it was not possible to touch each and every
aspect of the topic in a short time period.
QUESTIONNAIRE DESIGN
EXPLORATORY RESEARCH : The main problem area was already identified through
observation, focus group interviews and literature review. Therefore, there was no need of
conducting any kind of exploratory research.
DESCRIPTIVE RESEARCH : We got the dependent, independent & moderating variables
through literature review; so our main aim was to find the characteristics of those variables. This
was done by conducting descriptive research through targeted questions such as: what, when ,
where etc, about the variables.
CORRELATIONAL STUDY : In order to prove the main hypothesis: ‘increase in price of a
product leads to the decrease in its sales’, & the effect of moderating variables on the above
relationship; we conducted correlational study to correlate the variables.
SEMANTIC DIFFERENTIAL & LIKERT SCALING TECHNIQUES; DICHOTOMOUS &
DOUBLE BARRELED QUESTIONS ARE USED.
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2012
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SAMPLE QUESTIONNAIRE
A STUDY TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JHARKHAND
(We assure the secrecy of your information.)
Name of the store
Address
Name of the dealer
Contact number
(1)What products do you sell? (please tick)
Steel pipes PVC pipes Both
(2)What is your annual sale of the following?
Financial year Steel pipes PVC pipes
2008-09
2009-10
(3) What are the annual demands of the following?
GI pipes Black pipes PVC pipes
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
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(4)What is the percentage consumption of commercial steel pipes in the following segment?
Plumbing irrigation process
(5)What is the percentage consumption of the following categories of commercial GI steel pipes
in the given segments.
light Medium heavy
Plumbing
Irrigation
process
(6)What are the percentages upto which PVC pipes serve as the perfect substitute of commercial
steel pipes in the following segments?
plumbing irrigation process
(7)What are the percentage consumption of different categories of commercial steel pipes?
light medium heavy
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(8)Which sizes (diameter in mm) of tubes do you deal with, in Commercial Steel pipes: GI ? (pls
fill in the details as required).
Steel pipes: BLACK
15 20 25 32 40 50 65 80 100 125 150 Other sizes; pls specify
L
Annual
sale(09-10)
Application
M
Annual
sale(09-10)
Application
H
Annual
sale(09-10)
Application
15 20 25 32 40 50 65 80 100 125 150 Any other; pls specify
L
Annual
sale(09-10)
Application
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(9)Which brands do you sell? Also mention their annual sale.
STEEL PIPES
Tata pipes Jindal Bhansal Bhushan Surya RST Neezone local
Annual sale
(09-10)
Annual sale
(08-09)
PVC pipes
paras finolex Tuff
plast
supreme gupta prince RST Bhansal Jindal local
Annual
sale(09-10)
M
Annual
sale(09-10)
Application
H
Annual
sale(09-10)
Application
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(10)Which brand would you prefer the most as a customer? (Please tick)
Steel pipes
Tata pipes Jindal Bhansal Bhushan Surya RST Neezone Others; specify
PVC pipes
Finolex Tuff plast Gupta Supreme Prince Paras RST Bhansal Jindal Others; specify
Give ratings for your above chosen brand :(5-excellent,4-very good,3-good,2-average,1-poor)-
pricing Quality on time
delivery
demand value
for
money
Advertise
-ments
customer
feedback
availability Othe
-rs
Steel
pipes
PVC
pipes
(11)Which brand do you mostly recommend to your customers?
STEEL PIPES: GI
Tata pipes Jindal Bhansal Bhushan RST Neezone local
PVC PIPES
Paras Prince RST Gupta Supreme Finolex Tuff Plast Bhansal Jindal Local
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(12)Why do you recommend the above brand? (Please tick below)
Quality Profit margin
(13) Do you think that high profit margin for retailers increase sales? Yes ( ) No ( )
(14)Do you have any complaints regarding tata pipes? Yes ( ) No( )
(a) IF YES, then pls specify:
Quality On time
delivery
Less
profit
margin
poor
incentive
plan
Improper communication
of new developed
products
Price availability Others
(15)What was the sales target for last month, April 2010? ----------------
(16)Did you achieve your target? Yes ( ) No( )
(a) IF NO,
(i ) Then what were your actual sales? --------------------
(ii ) why could you not achieve the target? (pls tick)
Less
demand
Late
delivery
high
price
Low
motivation due
to less profit
margin
Public
unawareness.
Unavailability
Of ordered
goods
Customer
opting for
other brands
other
(b) IF YES, then, can you sell more than your target? Yes ( ) No( )
(17)Do you think the price of Tata pipes affect its sales? Yes ( ) No( )
(18)Do you think TATA PIPES has a risk of loosing its market share? Yes ( ) No( )
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
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IF YES, then why do you think so? (pls tick)
unawareness
of market
demand
rigid
pricing
policy
poor
promotional
activities
longer
delivery time
dealers and
retailers not
benefitted
Unavailability Others
(19)Which brand do you think is its strongest competitor? (In commercial steel pipe segment).
Jindal Bhushan Bhansal RST Surya Neezone Others Pls Specify
(20)Why do you think so? Give rating.(5-far better,4- better,3-at par,2-slightly poor,1-very poor)
Quality Deliv-
ery
time
Dema-
nd
Value for
money
Availab
ility
promotion customer
feedback
profit
margin
incentive
plans
Othe
-rs,
(21)Which promotional strategy/ strategies do you think would be the most effective in
spreading awareness among customers about new products of Tata pipes?
Hoarding Wall painting T.V.
commercial
commercial
Radio
commercial
Others pls
specify
(22)What is your ROI per tube?
STEEL PIPES:
Tata pipes ___ , Jindal____ , Bansal____ , Bhushan___ , RST___ , Neezone___ , Local___
PVC PIPES:
Paras ___ , Finolex___ , Prince___ , Supreme___ , Tuff Plast___ , Gupta___ , Bhansal___ ,
Jindal___ , Local___
TO FIND THE MARKET PO
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DATA REPRESENTATION
(due to unsatisfactory response to few
interpreted; so as to avoid any kind of miscommunication).
SEGMENT WISE COMPARISON
(1) Percentage distribution of commercial pipe dealers in Jharkhand.
INTERPRETATION:
• 50% of the total number of commercial pipe dealers sell both steel and PVC pipes.
• Exclusive commercial steel pipe dealers are four times more in number than
commercial PVC pipe dealers.
50%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
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DATA REPRESENTATION AND INTERPRETATIO
sfactory response to few questions, their data have not been represented nor
interpreted; so as to avoid any kind of miscommunication).
WISE COMPARISON OF COMMERCIAL STEEL & PVC PIPES
Percentage distribution of commercial pipe dealers in Jharkhand.
50% of the total number of commercial pipe dealers sell both steel and PVC pipes.
ommercial steel pipe dealers are four times more in number than
l PVC pipe dealers.
40%
10%
STEEL PIPE DEALERS
PVC PIPE DEALERS
BOTH STEEL & PVC PIPE
DEALERS
S IN JAHRKHAND. 12 February,
2012
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AND INTERPRETATIO N
represented nor
OF COMMERCIAL STEEL & PVC PIPES
Percentage distribution of commercial pipe dealers in Jharkhand.
50% of the total number of commercial pipe dealers sell both steel and PVC pipes.
ommercial steel pipe dealers are four times more in number than exclusive
BOTH STEEL & PVC PIPE
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
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(2) Share of steel pipes and PVC pipes in commercial pipe market.
INTERPRETATION:
• As per the financial year 2009-2010 : Steel pipes had 77% whereas PVC pipes covered
23% share of commercial pipe market.
• As per the financial year 2010-2011 : The market share of Steel pipes have decreased by
7% whereas the share of PVC pipes have increased by 7%.
• So, it can be said that, PVC pipe industry is a fast growing sector, steadily trying
capturing the market of steel pipes; with a considerable growth of 7%.
77%
70%
23%
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
steel pipes
PVC pipes
2009-2010 2010-2011
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(3)Annual demand of GI, BLACK (steel pipes)
market.
COMMENT:
• Galvanised pipes (GI pipes) have the highest annual demand
Reasons: zinc coating for rust prevention
• PVC pipes serve as a perfect substitute of
Reasons: portability, easier fixation, durability, light weight, heat resis
rusting character.
• Black pipes have the lowest de
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
GI steelpipes BLACK steel
50%
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Annual demand of GI, BLACK (steel pipes) & PVC pipes in commercial pipe
pipes) have the highest annual demand of 50% ;
nc coating for rust prevention
serve as a perfect substitute of GI pipes, wit a demand of
portability, easier fixation, durability, light weight, heat resis
Black pipes have the lowest demand of just 20%; Reason : mainly due to rusting
BLACK steel
pipes
PVC pipes
20%
30%
Series1
S IN JAHRKHAND. 12 February,
2012
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& PVC pipes in commercial pipe
of 50% ;
wit a demand of 30% ;
portability, easier fixation, durability, light weight, heat resistance and non
0%; Reason : mainly due to rusting.
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(4) Purposes for which commercial
INTERPRETATION
• Commercial steel
irrigation segment (36%).
• It has least application in process segment that include industrial
engineering
• In process segment commercial
storage & HVAC
(20%)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
PLUMBING
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Purposes for which commercial steel pipes are used
INTERPRETATION:
Commercial steel pipes are majorly used in plumbing
irrigation segment (36%).
It has least application in process segment that include industrial
engineering, construction, automobile parts, cold storage, HVAC etc
In process segment commercial steel pipes are majorly used in cold
storage & HVAC puposes. So, they have the least percentage of usage
PLUMBING IRRIGATION
PROCESS
44%
36%
20%
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2012
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pipes are used.
pipes are majorly used in plumbing (44%) and
It has least application in process segment that include industrial
, construction, automobile parts, cold storage, HVAC etc
pipes are majorly used in cold
puposes. So, they have the least percentage of usage
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(5)Percentage consumption of different catagories of commercial following segments.
PLUMBING:
INTERPRETATION:
• medium category commercial GI
15mm – 40mm). 70% users use medium size pipes for their house plumbing.
• In case of some heavy duty plumbing purposes like public water supply system and hig
pressure water line heavy catagory pipes ar
• Light catagory pipes are g
low pressure water supply line
0%
10%
20%
30%
40%
50%
60%
70%
80%
LIGHT
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Percentage consumption of different catagories of commercial
medium category commercial GI pipes are prefered the most (specially from diameter
. 70% users use medium size pipes for their house plumbing.
In case of some heavy duty plumbing purposes like public water supply system and hig
pressure water line heavy catagory pipes are used.
pipes are generally used in minor house plumbing, as curtain holders &
low pressure water supply lines.
LIGHT MEDIUM HEAVY
20%
70%
10%
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Percentage consumption of different catagories of commercial GI steel pipes in
(specially from diameter
. 70% users use medium size pipes for their house plumbing.
In case of some heavy duty plumbing purposes like public water supply system and high
enerally used in minor house plumbing, as curtain holders & in
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IRRIGATION:
INTERPRETATION:
• In irrigation purpose medium type pipes are preferred
medium catagory are used in this segment
• In long distance water supply and high pressure water supply heavy type of GI pipes are
used. In irrigation only 30% heavy type GI pipes are used
• Only 20% light type GI pipes
supply covering short distance
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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medium type pipes are preferred the most. 50% of total
medium catagory are used in this segment
In long distance water supply and high pressure water supply heavy type of GI pipes are
used. In irrigation only 30% heavy type GI pipes are used.
20% light type GI pipes are used in personal irrigation and low pressure water
supply covering short distance.
LIGHT MEDIUM HEAVY
20%
50%
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50% of total GI pipes in
In long distance water supply and high pressure water supply heavy type of GI pipes are
ersonal irrigation and low pressure water
HEAVY
30%
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PROCESS:
COMMENT:
• In process like cold storages, high air pressure line, ventilation line, air conditioning
etc. normally heavy type
purposes.
• Comparatively in low pressure and in low duty process, medium and light type pipes are
used. Light type pipes are easy to bend, that’s why light type pipes are used in that
process where bending is required. For example
0%
5%
10%
15%
20%
25%
30%
35%
40%
LIGHT
25%
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In process like cold storages, high air pressure line, ventilation line, air conditioning
etc. normally heavy type pipes are used. 40% heavy types pipes are used in process
Comparatively in low pressure and in low duty process, medium and light type pipes are
used. Light type pipes are easy to bend, that’s why light type pipes are used in that
bending is required. For example :Automobiles parts.
MEDIUM HEAVY
35%
40%
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In process like cold storages, high air pressure line, ventilation line, air conditioning line
pipes are used. 40% heavy types pipes are used in process
Comparatively in low pressure and in low duty process, medium and light type pipes are
used. Light type pipes are easy to bend, that’s why light type pipes are used in that
parts.
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(6)Segments where the PVC pipes form perfect substitute of steel pipes.
INTERPRETATION:
• PVC pipes are 74% substitutable in Plumbing, 68% in irrigation, 17% in process
segment. Thus, steel pipe manufacturing companies face stiff competition from PVC
pipes manufacturers in segments as, plumbing and irrigation, where PVC pipes are
readily being used in place of steel pipes.
74%
68%
17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
PLUMBING IRRIGATION PROCESS
Series1
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(7) Area wise percentage consumption of commercial steel pipeslight, medium & heavy.
16
JAMSHEDPUR
75
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Area wise percentage consumption of commercial steel pipeslight, medium & heavy.
12
72
JAMSHEDPUR
LIGHT
MEDIUM
HEAVY
22
3
RANCHI
LIGHT
MEDIUM
HEAVY
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Area wise percentage consumption of commercial steel pipes in catagories:
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64
HAZARIBAGH
83
4
DHANBAD
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34
2
HAZARIBAGH
LIGHT
MEDIUM
HEAVY
134
DHANBAD
LIGHT
MEDIUM
HEAVY
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TO FIND THE MARKET PO
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INTERPRETATION:
• Fom the graphs we can clearly see that in all the five cities the same trend of
consumption is maintained.
• This is due to big domestic market, where medium pipes are primarily
purposes.
• irrigation is also one of the main purposes for which medium steel pipes are used.
71
14
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Fom the graphs we can clearly see that in all the five cities the same trend of
consumption is maintained.
This is due to big domestic market, where medium pipes are primarily
irrigation is also one of the main purposes for which medium steel pipes are used.
15
71
BOKARO
LIGHT
MEDIUM
HEAVY
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Fom the graphs we can clearly see that in all the five cities the same trend of
This is due to big domestic market, where medium pipes are primarily used for plumbing
irrigation is also one of the main purposes for which medium steel pipes are used.
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(8)Percentage consumption of comm
light, medium & heavy.
INTERPRETATION:
• Maximum pipes consumed are that of medium category (due to medium weight, lesser
chances of breakage than light pipes, just pricing and numerous application.
• Medium pipes are also used as substitute for light pipes, thus increasing consumption).
• Consumption of light pipes are comparatively lower than that of medium ones, (due to
their extremely light weight, greater chances of breakage and fewer application).
• Heavy pipes are the least consumed ones, (due to their extremely heavy weight and
specific application in industries).
73%
7.80%
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Percentage consumption of commercial steel pipes in Jharkhand in categories:
Maximum pipes consumed are that of medium category (due to medium weight, lesser
chances of breakage than light pipes, just pricing and numerous application.
Medium pipes are also used as substitute for light pipes, thus increasing consumption).
ion of light pipes are comparatively lower than that of medium ones, (due to
their extremely light weight, greater chances of breakage and fewer application).
Heavy pipes are the least consumed ones, (due to their extremely heavy weight and
specific application in industries).
19.20%7.80%
LIGHT
MEDIUM
HEAVY
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ercial steel pipes in Jharkhand in categories:
Maximum pipes consumed are that of medium category (due to medium weight, lesser
chances of breakage than light pipes, just pricing and numerous application.
Medium pipes are also used as substitute for light pipes, thus increasing consumption).
ion of light pipes are comparatively lower than that of medium ones, (due to
their extremely light weight, greater chances of breakage and fewer application).
Heavy pipes are the least consumed ones, (due to their extremely heavy weight and
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
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(9)Percentage consumption of different diameters of commercial steel pipes
in Jharkhand ; in following catagories:
LIGHT:
INTERPRETATION:
• 15mm – 25mm are consumed the most; due to small size& less weight, they find
many minor applications, as: curtain holders, railings etc
• Then after, the consumption decreases, due to lesser application.
19%
22%
18%
13%
9%
5%4%
3% 3%2% 2%
0%
5%
10%
15%
20%
25%
Series1
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
MEDIUM:
INTERPRETATION:
• Medium steel pipes are mostly used for plumbing & irrigational purposes.
• For plumbing, 15mm
• Tubes of higher sizes are used for purposes as irrigation, sewage pipes, water
supply pipes etc.
0%
2%
4%
6%
8%
10%
12%
14%
16%
11%12%
14%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Medium steel pipes are mostly used for plumbing & irrigational purposes.
For plumbing, 15mm – 40mm sized tubes are mainly used.
Tubes of higher sizes are used for purposes as irrigation, sewage pipes, water
supply pipes etc.
14%15%
14%13%
5%4%
5%4%
3%
Series1
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Medium steel pipes are mostly used for plumbing & irrigational purposes.
Tubes of higher sizes are used for purposes as irrigation, sewage pipes, water
Series1
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
HEAVY:
INTERPRETATION:
• Due to extremely heavy weight, heavy steel pipes are used only on special
purposes, where generally one time installation is required.
• Common applications are: steam &
underground boring pipes etc.
0%
2%
4%
6%
8%
10%
12%
14%
6%5%
10%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Due to extremely heavy weight, heavy steel pipes are used only on special
purposes, where generally one time installation is required.
Common applications are: steam & gas pipes, heavy water supply pipes,
underground boring pipes etc.
10%
12%13%
14%
12%
10%9%
5%4% Series1
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Due to extremely heavy weight, heavy steel pipes are used only on special
gas pipes, heavy water supply pipes,
Series1
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(10)Market share of Tata Pipes and
(commercial steel pipe segment
INTERPRETATION:
• Tata pipes is the market leader with the share of 30%.
• Jindal is the strongest competitor of Tata pipes in Jharkhand with a share of 20% of the
market.
• Next comes the local steel pipe manufacturers, covering 13% of the market.
• Surya pipes are gradually sreading their market in the eastern belt, capturing 8% of the
market. Surya pipes are in huge demand in northern India.
• Then comes, Bhushan, Bansal, RST & Neezone, which cover rest of the market.
8%5%
10%
7%
7%
13%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Market share of Tata Pipes and its competitors in Jharkhand.
steel pipe segment)
Tata pipes is the market leader with the share of 30%.
Jindal is the strongest competitor of Tata pipes in Jharkhand with a share of 20% of the
Next comes the local steel pipe manufacturers, covering 13% of the market.
Surya pipes are gradually sreading their market in the eastern belt, capturing 8% of the
market. Surya pipes are in huge demand in northern India.
Then comes, Bhushan, Bansal, RST & Neezone, which cover rest of the market.
30%
20%
TATA
JINDAL
SURYA
BHUSHAN
BANSAL
RST
NEEZONE
LOCAL
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its competitors in Jharkhand.
Jindal is the strongest competitor of Tata pipes in Jharkhand with a share of 20% of the
Next comes the local steel pipe manufacturers, covering 13% of the market.
Surya pipes are gradually sreading their market in the eastern belt, capturing 8% of the
Then comes, Bhushan, Bansal, RST & Neezone, which cover rest of the market.
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(11)Market share of compa
INTERPRETATION:
• Finolex is the market leader in
• Prince and supreme ar
18.50% and 16.65% respectively.
• Tuff plast is also one of the big players in this segment with a market share of 14%
4%
2.49%
14%
22%
5.94%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Market share of companies producing PVC Pipes.
Finolex is the market leader in commercial PVC pipe segment with a share of 22%.
Prince and supreme are the strongest competitors of Finolex with a market share of
18.50% and 16.65% respectively.
also one of the big players in this segment with a market share of 14%
18.50%
10%
16.65%
1.42%
5%
5.94%
Prince
Paras
Supreme
RST
Bansal
Jindal
Gupta
Tuff
Finolex
Local
S IN JAHRKHAND. 12 February,
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PVC pipe segment with a share of 22%.
inolex with a market share of
also one of the big players in this segment with a market share of 14%
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(12)Customer’s brand preference
For steel pipes:
INTERPRETATION:
• Tata pipes is the most
pipes.
• Only 15% of the customers prefer Jindal pipes.
• 10% of the customers who are not brand conscious, go for any brand whichever is
feasible to them at that particular time; it can be
brand.
15%
5%10%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
preference :
Tata pipes is the most preferd brand by the customers; 70% of the customers go for tata
Only 15% of the customers prefer Jindal pipes.
10% of the customers who are not brand conscious, go for any brand whichever is
feasible to them at that particular time; it can be Tata pipes, Jindal
70%
TATA
JINDAL
BHANSAL
BHUSHAN
SURYA
RST
NOT BRAND CONSCIOUS
S IN JAHRKHAND. 12 February,
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70% of the customers go for tata
10% of the customers who are not brand conscious, go for any brand whichever is
, Jindal pipes or any other
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
For PVC Pipes:
INTERPRETATION:
• Prince is the most preferred brand by the customers with
• Supreme stands the second in brand preference
40%
10%
20%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
eferred brand by the customers with preference of 40%
the second in brand preference; 20%
20%
10%
supreme
finolex
tuff plast
gupta
prince
paras
RST
Bansal
Jindal
not brand conscious
does not prefer pvc
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preference of 40%
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2012
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Page 77
(13) Percentage risk of TATA pipes loosing market share to its competitor in
commercial steel pipe segment.
INTERPRETATION:
• There is 80% risk that TATA PIPES may loose its market share to its strongest
competitor, Jindal, in steel segment.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
RISK NO RISK
Series1
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(14) Ratings on various parameters:
TATA PIPES
INTERPRETATION:
• The key strength of tata pipes is its quality, demand & brand loyalty of customers.
• Areas that tata pipes should necessarily work upon:delivery time, availability of products,
profit margin & incentive plan for dealers.
0
1
2
3
4
5
6
EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR
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2012
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JINDAL PIPES
INTERPRETATION:
• Key strengths of jindal are: on time delivery, pricing and availability.
• Area that should be worked upon is product promotion through advertisement & brand
loyalty of customers.
0
1
2
3
4
5
6
EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR
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2012
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(15)RATING OF JINDAL PIPES WITH RESPECT TO TATA PIPES:
INTERPRETATION:
Points where Jindal pipes score over Tata pipes:
• Product pricing
• Delivery time
• Value for money
• Product availability
• Profit margin for dealers
• Incentive plan
0
1
2
3
4
5
6
FAR BETTER
BETTER
AT PAR
SLIGHTLY POOR
VERY POOR
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2012
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(16)Customer rating for market leader in PVC Pipes
FINOLEX PIPES:
COMMENT:
• Key strengths are quality, on time delivery, demand, availability and advertisement.
• The company should work on attractive incentive plans for dealers.
00.5
11.5
22.5
33.5
44.5
EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR
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2012
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PRINCE PIPES:
COMMENT:
• Key strengths are: quality, demand, value for money products, very good brand loyalty &
customer feedback
• Area that should be worked upon is product promotion through advertisement.
00.5
11.5
22.5
33.5
44.5
EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(17) Basis on which dealers recommend commercial pipes to
COMMENT:
• 60% of the dealers are influenced by profit margin on the basis of which they recommend
brands to their customers.
• Only 40% of the dealers don’t go by the profit margin and recommend brands that
deliver quality.
60%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Basis on which dealers recommend commercial pipes to their customers
60% of the dealers are influenced by profit margin on the basis of which they recommend
brands to their customers.
Only 40% of the dealers don’t go by the profit margin and recommend brands that
40%
QUALITY
PROFIT MARGIN
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their customers.
60% of the dealers are influenced by profit margin on the basis of which they recommend
Only 40% of the dealers don’t go by the profit margin and recommend brands that
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(18) Promotional strategy that Tata
its new products.
INTERPRETATION:
• Effective ways for Tata pipes, to promote its new product is through T.V. commercials &
hoardings.
0%
5%
10%
15%
20%
25%
30%
35%
40%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
) Promotional strategy that Tata pipes should use to make customers aware of
Effective ways for Tata pipes, to promote its new product is through T.V. commercials &
Series1
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make customers aware of
Effective ways for Tata pipes, to promote its new product is through T.V. commercials &
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(Since plumbers were not comfortable
focus group interview
held and the following information was obtained
(1)Pipes recommended mainly for bath
INTERPRETATION:
• Plumbers mostly recommend PVC pipes, mainly
non rusting nature & easy installation.
• Steel pipes are recommended only where it is particularly required.
0%
10%
20%
30%
40%
50%
60%
70%
STEEL PIPES
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
PLUMBER’S REVIEW
Since plumbers were not comfortable answering the questionnaire, we had to conduct a
focus group interview with 10 of them in Jamshedpur. An unstructured interview was
held and the following information was obtained) :
Pipes recommended mainly for bathroom fittings:
Plumbers mostly recommend PVC pipes, mainly due to their light weight, heat resistant,
& easy installation.
Steel pipes are recommended only where it is particularly required.
STEEL PIPES
PVC PIPES
40% 60%
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answering the questionnaire, we had to conduct a
with 10 of them in Jamshedpur. An unstructured interview was
light weight, heat resistant,
Steel pipes are recommended only where it is particularly required.
Series1
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(2)Recommended steel pipe
(on basis of quality)
(on basis of price)
INTERPRETATION:
• Customers who want quality product are advised for Tata pipes.
• Price conscious customers, are advised for Jindal pipes.
60%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
steel pipe brands:
(on basis of quality)
Customers who want quality product are advised for Tata pipes.
Price conscious customers, are advised for Jindal pipes.
90%
10% TATA PIPES
JINDAL PIPES
SURYA PIPES
RST
NEEZONE
BANSAL
BHUSHAN
LOCAL
30%
60%
10% TATA PIPES
JINDAL PIPES
BANSAL
BHUSHAN
RST
SURYA
NEEZONE
LOCAL
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Customers who want quality product are advised for Tata pipes.
TATA PIPES
JINDAL PIPES
SURYA PIPES
NEEZONE
BANSAL
BHUSHAN
LOCAL
TATA PIPES
JINDAL PIPES
BANSAL
BHUSHAN
SURYA
NEEZONE
LOCAL
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(3)Brands and their
INTERPRETATION:
• Due to its excellent quality, Tata pipes do not have to face any customer complaints.
• Whereas, its strongest competitor, Jindal pipes, have to face 5% customer complaints.
10%
35%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
and their percentage of customer complaints: (annually)
Due to its excellent quality, Tata pipes do not have to face any customer complaints.
Whereas, its strongest competitor, Jindal pipes, have to face 5% customer complaints.
5%
20%
15%
8%7%
10%
TATA PIPES
JINDAL PIPES
BANSAL
BHUSHAN
RST
SURYA
NEEZONE
LOCAL
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(annually)
Due to its excellent quality, Tata pipes do not have to face any customer complaints.
Whereas, its strongest competitor, Jindal pipes, have to face 5% customer complaints.
TATA PIPES
JINDAL PIPES
BANSAL
BHUSHAN
SURYA
NEEZONE
LOCAL
TO FIND THE MARKET PO
4 3 , J a w a h a r l a l N e h r u
(4)Does dealers give commision for recommending particular brand?
INTERPRETATION:
• 70% of the plumbers’ recommendations are influenced by dealers & retailers.
• Only 30% of the plumbers give true
30%
O FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND.
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Does dealers give commision for recommending particular brand?
70% of the plumbers’ recommendations are influenced by dealers & retailers.
nly 30% of the plumbers give true advices.
70%
YES
NO
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Does dealers give commision for recommending particular brand?
70% of the plumbers’ recommendations are influenced by dealers & retailers.
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2012
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HYPOTHESIS SUBSTANTIATION
H0: Price of product and its sales have no relation.
H1: Price and sales are correlated.
X axis = Variation in price as per increase in size.
Y axis = Sales in thousands.
COEFFICIENT OF CORRELATION (r) = - 0.888892814
COEFFICIENT OF DETERMINATION (r^2) = 0.7744
H0 = rejected
H1 = accepted
Thus, we conclude that, price of a product and its sales are almost negatively correlated;
This is because of the effect of moderating factors like: availability, delivery time, profit
margin & incentive plans for the dealers & brand loyalty of the customers. Purpose &
application of different sizes of pipes also play a mojor role.
0
20
40
60
80
100
120
140
160
0 100 200 300 400
sales in thousands (y)
sales in thousands (y)
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SWOT ANALYSIS OF TATA PIPES
� STRENGTH: TATA pipes rules the market on following key areas.
• Quality.
• Brand Equity.
• Value for money.
• Demand
� WEAKNESS: Following are the issues that TATA pipes need to work upon.
• On time delivery.
• Avaibility.
• Pricing (to some extent).
� OPPURTUNITY:
• New Product development: It should start manufacturing PVC pipes so as to cut
down on competition from this sector and also increase its product line so as not
to lose any market share.
� THREAT :
• JINDAL PIPES due to their growing Market Share and its growing popularity
across the dealers, plumbers and the customers.(in steel pipe segment).
• PVC PIPES due to their growing market potential as they are easily substituted in
place of steel pipes.
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
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COMPETITOR IDENTIFIED IN STEEL PIPE SEGMENT: JINDAL PIPES
COMPANY PROFILE:
• Jindal Pipes and Tubes has been a recognized name in pipe industry. Jindal Pipes and
Tubes carry a range of products to suite customer needs. Product range includes PVC
pipe & Fittings, M.S Black pipes, Slotted pipes, G.I pipe & Fittings, Sanitary fittings,
Floor Tiles, Kitchen Sinks. Jindal Pipes Ltd.(JPL), was incorporated in 1970 with an
installed capacity of 3000 TPA for manufacture of Steel Pipes & Tubes. Since then, the
company has brought phenomenal development in Pipe Manufacturing Process through
many innovative measures.
• Today, it has annual turn over of Approx. Rs.682 Crores. Induction of sophisticated state-
of-the-art technical know-how and highly motivated & skilled work force have made
possible for the company to augment its production capacity to 2,50,000 TPA.
• It is now synonymous with India's one of the best and largest manufacturer of ERW,
Black and Galvanized Steel Pipes & Tubes in different thickness from 2.00mm to 10.00
mm having an outer Diameter ranging from 1/2" to 14" NB as per specifications of ISI,
API, BIS which confirms to the various international standards. Further, pipes upto 20"
NB can be supplied from the Group Company-Maharashtra Seamless Limited.
• The company recieved 'Regional Special Shield' for export performance for the year
1977-78 and from 1984 to 1988 . It was also awarded the 'Certificate for Export
Excellance 1990-91' by the Export Engineering Promotion Council.True to Jindal
Group's way of life, quality is at the helm of affairs as a perpetual phenomenon. It is our
constant endeavor to produce pipes of the highest quality and sustainability. To achieve
this, we stick to strict quality standards and in-house evaluations and we continously
educate and train our workers.Jindal Pipe has been constantly executing need based and
demanding orders for Pipes to meet the requirements of sectors like Agriculture, Oil,
Public Health, Housing,
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PRODUCT RANGE:
1. Black & Galvanized Steel Tubes Conforming to IS:1239(i) Equivalent to BS:1387 & Structural Tubes Conforming to IS:1161
2. ERW Pipes for water & sewage conforming to IS:3589 & water well casing conforming to IS:4270
3. ERW Line Pipes Conforming to API 5L, IS:1978, IS:1979 and ASTM A-53
4. ERW Boiler, Super Heater, Heat Exchanger, Condenser & Air Heater Tubes & Pipes
5. Square and Rectangular Hollow Section
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2012
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Page 93
SWOT ANALYSIS
STRENGTHS:
���� Product price lesser than the market leader, Tata pipes.
���� good profit margins to the dealers.
���� Short delivery time
���� Good product availability
���� More flexible as per market demand.
WEAKNESSES:
���� Does not have strong brand image.
���� Lacks behind from Tata pipes, in providing utmost quality.
���� Ineffective product promotion.
OPPRTUNITIES:
���� Jindal Pipes can well exploit the sense of dissatisfaction prevalent among the
retailers for Tata pipes, to turn the tide in their favour.
THREATS:
���� The ad campaigns, innovation, brand image and more transparent distribution
network of other pipe companies pose major threat.
���� Quality products of Tata pipes is also a big threat.
THREAT OF SUBSTITUTION IDENTIFIED: PVC PIPE SEGMENT
Points where they score over commercial steel pipes:
• Light weight
• Easy fixation
• Portability
• Heat & rust resistant
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
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RECOMMENDATIONS
���� TATA TUBES SHOULD DECREASE ITS LEAD TIME (DELIVERY TIME)
• DEALER’S WOULD NOT HAVE AN EXCUSE TO SELL OTHER BRANDS.
• CUSTOMERS WOULD NOT SWITCH OVER TO OTHER BRANDS.
• THE BRAND IMAGE WOULD NOT GET HAMPERED.
���� AS WE KNOW THAT, DEMAND FOR TATA PIPES IS OVERWHELMING
THROUGHOUT THE COUNTRY AND ABROAD, ITS QUITE GENUINE ON THE
PART OF COMPANY THAT IT IS NOT ABLE TO PROVIDE DELIVERY IN TIME.
• BUT, THERE SHOULD BE ALTERNATIVE FOR MEETING THE
EXTRA DEMAND.
���� TATA TUBES SHOULD EXPAND ITS PRODUCTION CAPACITY AN D ALSO
TRY FOR BETTER STOCKING OPTIONS.
���� TATA TUBES SHOULD EMPHASIZE ON BETTER LEARNING OF D EMAND
FORECASTS, SEASONAL PATTERNS AND TRENDS.
• THIS WOULD HELP IN KNOWING ABOUT THE VOLATALITY OF THE
MARKET .
• IT WOULD ALSO ENABLE THE COMPANY TO BE READY FOR ANY
KIND OF UNEXPECTED DEMAND.
• IT SHALL NOT HAVE TO LOSE ITS MARKET SHARE TO THE
COMPETITORS.
� TATA PIPES SHOULD ALSO CONSIDER THEIR PRICING STRAT EGIES,
• MAJORITY OF THE DEALERS AND CUSTOMERS HAD SIMIMAR
COMPLAINTS OF HIGH PRODUCT PRICES.
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Page 95
• WE ACKNOWLEDGE THE FACT THAT, TATA PIPES CANNOT REDUCE
THEIR PRICES BECAUSE OF ITS BRAND IMAGE AND THE QUALITY
THEY PROVIDE.
• BUT AT THE SAME TIME, BETTER INCENTIVE PLANS TO THE
DEALERS WOULD ALSO ENCOURAGE THEM TO EXTEND AN ADDED
EFFORT WHICH WOULD RESULT IN FURTHER STRONG HOLD OF THE
COMPANY.
• THESE INCENTIVE PLANS ARE THE SOLE REASON WITH THE HELP OF
WHICH THE COMPETITORS ARE TRYING TO CATCH UP THE MARKET
SHARE.
• THUS BETTER & COMPETITIVE INCENTIVE PLANS FROM THE
END OF TATA PIPES WOULD ENSURE MAINTAINING AND
FURTHER GROWTH OF THEIR MARKET SHARE.
���� PVC PIPES ARE GROWING IN STATURE YEAR BY YEAR AND HAVE BECOME
A MAJOR CHOICE OF THE CUSTOMERS BECAUSE OF THEIR FEATURES
SUCH AS
• LIGHT WEIGHT
• PORTABILITY
• HEAT RESISTANCE
• EASY FIXATION
• DURABILTY
���� I RECOMMEND TATA TUBES, TO GET INTO THE MANUFACTURI NG OF
PVC PIPES AND LAUNCH THEM UNDER THE SAME BRAND NAME OF
TATA PIPES.
• THIS MOVE WILL HELP TATAS TO DOMINATE THE PVC SEGMENT
TOO, DUE TO HIGH BRAND VALUE OF TATA PIPES.
• THIS WILL ALSO ENSURE THAT TATA PIPES WILL NOT LOSE
BUSINESS JUST BECAUSE IT DOES NOT HAVE A PRODUCT IN THE
PVC SECTOR.
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Page 96
BIBLIOGRAPHY
Marketing Research - David Luck & Ronalds Rubin
Annual report Tubes Division, TATA STEEL
Tata search- A journal for tech advances
Technical training division study guide for TISCO works
Websites : www.tatatubes.net
www.tatasteel.com
www.google.com
www.tiindia.com
www.indianinfoline.com
www.tube.net.com
TO FIND THE MARKET POTENTIAL OF TATA PIPES IN JAHRKHAND. 12 February,
2012
4 3 , J a w a h a r l a l N e h r u R o a d , K o l k a t a - 7 0 0 0 7 1
Page 97