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PROJECT REPORT ON

A MARKET POTENTIAL OFCOMMERCIAL TUBES IN

JAMSHEDPUR

SUBMITTED TO-MR. KAPIL NANDRAJOG (CUSTOMER ACCOUNT MANAGER TATASTEEL TUBE DIVISION)

GUIDED BYMR. IBRAR KHAN (MARKETING CO- ORDINATOR TATA STEEL, TUBE DIVISION)

SUBMITTED BY-SOUVIK SEN(PGDM-MARKETING

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ASIA PACIFIC INSTITUTE OF MANAGEMENT)

To Whom It May Concern:Asia Pacific Institute of Management3&4 institutional Area JoshlaNew Delhi -110025

Tel no-91-11-42094800

Sir, Sub- Summer Project in Marketing

We are pleased to accept Mr.Souvik Sen, a PGDM (Marketing) student of your institute has done a Summer Project in area of Marketing for the period of 8 weeks during April – May 2010.

We are offering the project topic “A Market Potential of Commercial Tubes in Jamshedpur”. The project is submitted to Mr.Kapil Nandrajog (Customer Accounts Manger) and guided by Mr. Ibrar Khan (Marketing Co- ordinator Tata Steel, Tube Division). Kindly note that no stipend is payable and the student will have to make his own arrangement for lodge, board, local, transport etc.

Yours faithfully,

By. Divisional Manager(Tata Management and Development Center)

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EXECUTIVE SUMMARY

Tubes Division, TATA Steel is the leading manufacturer of commercial Tubes in the market. This industry is highly fragmented with more than hundred manufacturing units. With an aggregate capacity of over 21lakh MT, this industry is characterized by huge over capacities. 50% of supplies emanate from the small manufacturers, most of them having strong regional presence. There is also severe threat of substitution from PVC Pipes primarily in plumbing and irrigation segments. Tube Division, TATA Steel is the no. 1 company in the Indian tubes industry and is the only company with the well established national network.

The main objective of the research here done on behalf of TATA STEEL Tubes Division is:

“To find out the potential of standard Tubes in Jharkhand”

The sub objectives related to the objectives are:

To find out that what are the attributes which customer prefers more while purchasing commercial tubes.

To find out the different segments and corresponding customer group of commercial pipes.

To find out the key customer requirements and expectation of GI pipes.

To find out the different sizes which are in more demand in Jharkhand market.

To find out the closest competitors of TATA TUBES in Jharkhand.

To find out the market share of different players in GI Pipes industries in Jharkhand.

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To find out the constraints which are faced by TATA TUBES in way of increasing market shares?

To find out the substitute of GI Pipes and reason of substitute.

To find out the different complaints which are acknowledged by the end users.

Keeping the main objective in mind we have find out many facts which are beneficial for us to come to our conclusion and will also help the company in various ways.

The research and the survey are conducted in the proper and the structured manner to achieve our objective at its best possible way. The study was designed as a market survey and was conducted with the help of questionnaire. One set of questionnaire was designed for Dealers/Retailers and the second set was designed for Plumbers. We prepared a structured questionnaire and data has been collected from all our respondents by conducting interviews. With the help of collected data several analyses have been done. By making various graphs and pie charts we have tried our best to make our research analysis more specific and clear to all.

The important facts which we have finally got are:

Tata pipes are mostly preferred in the market because of their superior quality and brand name.

Key segments and customer group of GI pipes are:

Market segment Customer group

Plumbing Individual & house builders

Irrigation Farmers

Process Cold storage, heating and air conditioning and other industries.

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Durability of pipes, leak proof pipes, authenticity, uniform thickness and rust free pipes are key customer requirements and expectations.

Steel quality, weld quality, galvanizing quality and surface finishing are the most important attributes, which are checked by the customers before buying the GI pipes.

Although Tube division, TATA Steel manufactures a broad range of tube diameters (sizes), it is unable to supply those sizes which are in more demand.

Besides local competitors Jindal and Surya are the strong organized competitors of TATA PIPES.

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AN ORGANIZATIONAL HISTORY

A timeless vision“The nation which gains control of iron soon acquires the control of gold. “ -- These were the words that inspired a young Jamsedtji Nusserwanji Tata envisages a bold new dream for India.

Jamsedji persuaded Charles Perin - world renowned metallurgist and geologist - to come to India and work on a steel project. Charles Perin and his team discovered 3 billion tons of ore at Sakchi and Jamsedji Tata’s dream of thirty years was cast into reality. Tata Steel came into being in 1907. On 16th February 1912, the first ingot of steel was rolled out of the Sakchi plant.

The Tata Iron and Steel Company was India’s first and the largest steel company in the private sector. Today, Tata Steel ranks among the world’s top steel companies and has emerged as one of the lowest cost producers of steel in the world.

Jamsedji Tata ranks among the greatest visionaries of industrial enterprise of all time. He was gifted with an open mind to absorb new ideas and a strong determination to make them happen. He was interested in everything he saw and was always looking for ways to put his knowledge to use, not just for himself but for India. He laid the foundations of Indian industry, contributed to its consolidation, and became a key figure in India’s industrial renaissance. Tata

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Steel is a solid manifestation of the iron grit, courage and determination of its founder, Jamsedji Tata.

ABOUT THE PIONEERS

There is a difference between making money for oneself and creating wealth for others. TATA STEEL is a story of a business house that has created wealth for nation. This is a story of struggle, anxiety, adventure and achievement. This is the story of pioneers of TATA STEEL.

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.

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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.

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.Thus, even though it was Jamsedji Tata who had envisioned the mammoth projects, it was in fact Dorab Tata who actually brought the ventures to existence and fruition. He 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.

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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 Jamsedji 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 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.

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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, Jamsedji 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

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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, 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 which decides creating a record of sorts, is one the leading products in its category in the car market.

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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.

FLATSThe 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.

LONGSThe 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.

FERRO ALLOYS AND MINERALSThis 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.

TUBESTata 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.

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BEARINGSTata Bearings is a leader in the auto ancillary two-wheeler market segment. It produces around22.46 million ball bearings and 2.56 million taper roller bearings.

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.

RINGSThe 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.

AGRICOTata Agrico products are the most sought after hand tools and implements for agriculture and industrial applications in the country.

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SUBSIDIARY / ASSOCIATES / JVS

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.

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. The Company has a basic bricks manufacturing unit in China.

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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.

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.

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.

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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

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.

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.

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.

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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.

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.

Tata Steel KZ: Proposes to set up high carbon ferrochrome plant in South Africa. The plant is slated to be commissioned by October

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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.

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INTRODUCTION OF THE COMPANY

Name of the Company : The Iron and Steel Company Limited (Tube Division)Name of the Business : Manufacturing

LOCATION Head office Works

Address The Iron and Steel Company Limited , (Tube Division)43,Jawaharlal Nehru road,kolkata-700071

The Iron and Steel CompanyLimited , (Tube Division)P.O.- BurmaminesJamshedpur , JharkhandPIN: 831007

Telephone 91-33-2288 7215 6141 2270995,2149291

Fax 91-33-22824325 0657-2270304

Website www.tatatubes.com, www.tatasteel.com

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HISTORY OF TATA TUBES

A new dimension in steel tube technology opened up in India in the early 50’s with the establishment of the Indian Tube Company Ltd.(ITC), a joint venture between Tata Steel and Stewarts & Lioyds UK(now a part of British Steel). 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 2,50,000 tones.

The works situated in Jamshedpur have the following Plants:

High Frequency Induction Wield (HFIW) Tube Mill for black & galvanized tubes and rectangular and square hollows.

High Frequency Induction Wield (HFIW) Tube Mill for Precision Tubes.

Currently TATA STEEL (Tube Division) occupies the no.1 position in the Indian Tubes Industry and is the only company with a National Network.

Tubes Division has well established IT infrastructure, which includes an ERP system covering 30 sales points. Marketing HQ & works through WAN, Lotus Notes Mailing system & other office automation applications covering marketing and sales network. A web enabled complaint management system is also being implemented.

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Important Milestones:

1953 – Formation of erstwhile Indian Tubes Company Limited by Tata Steel, Stewarts and Lloyds.

1955 – Commissioning of F.M.(Frentz Moon)-1, For large size tubes.

1957 – C.R.(Cold Rolling) & E.R.W.(Electrical Resistance Welding ) plant started.

1959 – Seamless plant goes out in stream.

1966 – F.M.- 11 added.

1975 – E.R.W. Modernization.

1981 – British Steel decision to dis- invest outside U.K, share offered to TISCO.

1983 – TISCO,ITC arrangement for conversion of strips into tubes.

1985 – Amalgamation of Tata Steel and Indian Tubes. It becomes Tubes Division TISCO.

1990 – High frequency Induction Weld Mill(HFIW)added

1993 – F.M.1obseleted in April.

1994 – 2ND PTM(PRESICION TUUBE MILL)added.

1998 – Seamless plant obsoleted in January.

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CERTIFICATES

- Tubes division has been awarded the ISO 9002 certificate since October 1994 as recognition of our excellent quality systems.

- The American Petroleum Institute has given Tubes Division, a certificate of authority to use the API monogram for Welded line pipes. TATA STEEL is an established player in this sector and has been supplying seamless tubes in casings, tubing’s and line pipes to the oil industry since 1970. In this regard, it is pertinent to mention that the company is well acquainted with stringent and specific requirements of this segment and has performed extraordinary well in catering to the needs of their customers.

- The division is recognized by central Boiler board as “Well known Tube and Pipe Maker” and granted self certification status for boiler tubes.

- Lloyds Register has approved Tubes division as a manufacturer in accordance with the accordance with the requirements of Lloyd’s register for:-Welded pipes and tubes in carbon, carbon- manganese amd alloy steel.

GEOGRAPHICAL LOCATION

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Jamshedpur is well connected with Railway, Transport, and Airbase

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PRODUCTS & ITS APPLICATIONS

I. Standard Tubes: Standard tubes are extensively used in:

PLUMBING IRRIGATION COLD STORAGE: The cold storage industry constitutes a very

important market segment for TATA PIPES. Pipes are the lifelines of cold storage unit.

TATA PIPES is the market leader in this segment.

It was found necessary that we consolidate our leadership position through a marketing strategy that shall strengthen brand loyalty, both in the short term and the long term.

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II. Precision Tubes: Precision tubes are extensively used in: Automobile, power & industrial boilers, Transformers, super heaters, Economizers, heat exchangers, Bicycles, automobiles Railway electrification, Furniture applications,

A team of highly qualified engineers in the research and development wing keeps pace with improved techniques and latest developments in tube technology pertaining to this field.ERW Precision tubes offer many advantages, such as Close tolerances in diameter.

III. Closed Structural: Closed Structural tubes are extensively used in:

Agricultural implement frames, amusement park & play ground equipment.

Automobile chassis, bridges, bus stands. Conveyor gantries, cranes Drilling rigs, exhibition stalls Furniture, partition frames, flood light masts Guard rails, staircase, industrial lifting equipment Industrial sheds, large span portal frames. Pallets, footbridge, sign supporting structures Space frames, sport galleries, transmission line towers, trolley,

trucks & bus body members and lots of other application.

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PRODUCT PROFILE OF TATA TUBES

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.

Size Range of 2”ERW Mill

ERW Range from 12.70 mm to 50.80 mm OD with thickness range of 0.60 mm to 5.50 mm

Size Range of 3”HFIW Mill

ERW Range from 12.70 mm to 76.20 mm OD with thickness range of 0.60 mm to 6.00 mm

Size Range of 4”ERW Mill

ERW Range from 31.75 mm to 114.30 mm OD with thickness range of 1.50 mm to 6.00 mm

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PRODUCT SPECIFICATION

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 (now a part of British Steel).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.

STANDARD TUBES

Indian Standards: IS 1239 Part-1, IS 1161

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

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COMMERCIAL TUBE MILL

Reliable, long lasting and customized Precision welded tubes from Tata Steel meet national and international standard.

Standard/Commercial tubes are manufactured from hot rolled steel, the finest quality steel from Tata Steel’s state of art HSM plant. Used extensively in power and industrial boilers, transformers, super heaters, economizers, heat exchangers, automobiles and other engineering applications, precision welded tubes are manufactured with customary TATA commitment to quality. The manufacturing process is governed by comprehensive quality plan. Constant quality check is carried out during the manufacturing process, both in the two and three inch mill, with size ranges from 12.70mm OD to 76.2mm OD, with thickness ranging from 0.91mm to 4.06mm. The manufacturing process involves forming of hot rolled steel strips in to a tabular shape, the edges being weld under pressure using induction heating.

The HR strip coil stock is then leveled and cut, before the ends are welded together in the flash welder. After edge slitting, the strip is progressively bent into tabular form. Forming takes place at an ambient temperature, with a close control on dimensions and surface finish is maintained. Welding and sizing follow this. The continuous tube is then straightened and cut to the required length.

In order to identify defects both in parent material as well as the welded zone, non destructive testing is done both online and off line this process is particularly useful for ensuring the quality of boiler tubes. The state of the art 2inch mill has an automatic high speed cut off machine. The tubes are finally sent to the normalizing furnace. Normalizing removes metallurgical differences between the weld zone and the body of the tube and the effect of cold working caused in the forming process. This restores the grain structure and there by stress relieves the tubes. It is also necessary for achieving the desired level of mechanical properties, such as hardness, yield and tensile strength. Normalization is done for all boiler and cold drawn tubes. It may be done for other tubes also if specified. Precision welded tubes are reverse engineered to meet exact customer requirements. New products are developed to meet changing customer needs.

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MANUFACTURING PROCESS

Commercial tubes are manufactured by the high frequency induction welding process which commonly known as the HFIW process. Until 1993 these tubes were manufactured entirely in the old 3-inch ERW mill which can produce tubes with outside diameter 90d) ranging from 15.88 to 76.20mm. in august 1993 a new 2-inch precision mill facility was procured, with the commissioning of which, Commercial tubes of OD as low as 15.88mm and with a lower thickness of 0.99mm became commercially available. 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.

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COLD DRAWING

The cold-draw plant is an important complement to the ERW plant ERW tubes, if required in non-standard sizes for specific end uses with close dimensional tolerances and superior physical/mechanical properties, and produced by cold drawing the pre-treated tube through a die over a plug to maintain both the outside and the inside dimensions of the

tube to very close tolerances. A wide assortment of sizes within the general range is possible by means of cold drawing.

PACKAGING The tubes are packed lose as well as in bundles and as required. The tubes are covered with polythene bags and polythene-lined Hessian bags. The following modes of packing are generally used.

1. Loose ends bagged with Hessian/polythene2. Bundles, ends bagged with Hessian/polythene 3. Bundles wrapped with wax paper and Hessian/polythene

Special finishes or modes of the packing, in so required, are undertaken after mutual discussion.

ADVANTAGES

ERW precision tubes offer many advantages, such as- Close tolerance on diameter and thickness.Exceptional concentricity and a smooth finish, both inside and outside.These features facilitate designers to obtain uniform flow under controlled temperature and pressure.

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Fabricators exercise great control of close bending and tube alignment in butt-welding

APPLICATION

These tubes are widely used in:

1. Power and industrial boilers

2. Transformers

3. Super heaters

4. Economizers

5. Heat exchangers

6. Bicycles

7. Automobiles

8. Railway electrification and furniture

9. General engineering & special applications

10.Air heater

11.Pre-air heater (carbon & corten tubes)

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ORGANISATION STRUCTURE – TUBES SBU

MD TATA STEEL

B. MUTHURAMAN

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COMPETITORS

COO STEEL

H M NERULKAR

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ATLAS STEEL TUBE INDUSTRIES:

It was established in 1987 as the captive unit of Atlas cycle industries Ltd. SONEPAT pioneer of bicycle manufacturing in India. The tube rolling capacity has been enhanced to 38000 M.T by an installation of second tube mill in 1994. Precision steel tube from 12mm outer diameter are produced in thickness range from 0.70mm to 3.65 mm from automobile, bicycle, furmiture & general engineering industries confirming to national and international quality standards. A team of highly qualified and experienced engineers mining, controlling and handling the operations consistently. Continuous improvement and innovation is an unending Endeavour at atlas. Atlas is able to supply the tubes within the shortest lead time. Atlas has its high speed slitting line, modern tool room with C.N.C turning centre, tube recutting finishing facilities

TUBE INVESTEMENT OF INDIA LTD:

Tube investment of India known as the flagship company of RS 8500 cr MURUGAPPA Group. It manufactures precision steel tubes and strips, car doorframes, automotive and industrial chains and bicycle. The company has 13 manufacturing / assembly units spread across the country. Marketing office acts as an interface between customer requirements and production team. The company’s are listed on national, Mumbai and Chennai stock exchange within India and GDRs on the Luxembourg stock exchange. The company’s product segments are engineering, metal formed products and cycles. TI is the market leader in precision tubes with 61% market share by virtue of its quality and application of engineering capabilities. TI is the market leader in roll formed car doorframes with 57% market share by virtue of its cost efficiency, association with key auto majors and rolling forming capabilities. TI is the market leader in automotive chain with 35% market share by virtue of its cost, quality and delivery and association with two wheelers majors TI is the leading player in bicycle segment with 30% market share by virtue of its brand equity, product development capacity and proximity to the markets.

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Bhushan Steel & Strips Limited (BSSL)

The flagship company of the Bhushan Group was incorporated in 1983. It deals with rolled steel strips, steel ingots, and the scrap obtained from the manufacturing process. The products manufactured by the company are cold rolled steel coils/sheets, galvanized steel coils/ sheets, hardened & tempered steel strips, high tensile steel strapping, precision tubes (ERW and CEW) having applications in Automotive, Boiler & Heat Exchangers, Air Heater, Bicycle & Propeller Shafts Shock Absorbers, Textiles industry etc.

The company has entered into a technical collaboration with Sumitomo Metal Industries, Japan in order to acquire the latest know-how and the quality requirements of all clients in the engineering, Automobile & White Goods Appliances industry. Be it specialized steel for the automotive and white goods industry, or steel for highly discerning international clients. BSSL is in the process of setting up one of the most advanced Hot Rolling Plants of the world in Orissa.

Automobiles & White Goods/ Domestic appliances & General Engineering Industries Its automobile clientele includes Maruti Udyog, Honda, Telco, Hindustan Motors, GM Hyundai Motors, Ford Motors, M&M, Richer Tractors, Ashok Leyland, LML, Scooters India Ltd, Bajaj Auto, Honda Motorcycle, Yamaha Motors and Bajaj Tempo.

Its Home Appliance clientele includes LG Electronics, Whirlpool, Videocon, Daikin Shriram, National Matsushita, Samsung Electronics Godrej, Voltas, IFB, Fedders Lloyd, Carrier Refrigeration, Electrolux Group, Hitachi Air conditioners, KF Bearing Cromptom Greaves, BPL and Philips India. Its Engineering clientele includes BHEL Aistom Limited, L&T, GE Motors, Jhonson Lift, Kone Elevator, Lucas TVS, NRB Bearing, Harsha Engineers Limited, Bundy India Limited and Tecumseh.

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KEY CUSTOMERS OF TATA TUBES

East Singbhum

No. Dealers name Contact number

Key person Address

1 Sawa sanitary 0657-2291691 Mr. Adit Sawa

Main road jugsalai

2 Bhawani sales 0657-2422755 Mr. Ratan Lal Bistupur

3 Cherry sales/Bajrang store

0657-2340228 Mr. Bajrang Agrawal

18, Golmuri Market

4 Chotanagpur agencies 0657-2430902 Mr. Kamal Bakrewal

Main road Bistupur

5 Hindustan cement agencies

0657-2223642 Mr. Sanjay Kumar Agrawal

B-block Sonari

6 J.J. Trading 0657-2370809 Mr. O P Agrawal

Lokhwari Bhawan Adityapur

7 Krishna Hardware 0657-2424826 Mr. B.K. Yadav

13/9 Bistupur Market

8 Modi Tiles 0657-2427701 Mr. Suresh Modi

Near Gurudwara, sakchi

9 Shyam Tiles 0657-2435907 Mr. Shyam Khandelwal

New Kalimati Road Sakchi

10 Kaizen Sanitary 0657-2421460 Mr. Badri Narayan

Near Gurudwara, sakchi

11 Pawan Hardware 9431525204 Mr. Pawan Agrawal

Adityapur

12 Bath Gallery 9835169553 Mr.Ratan Agrawal

Sakchi

13 Debuka Traders 9431110453 Mr.Sitaram Debuka

Sakchi

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14 Suraj Hardware 9431187386 Mr.HR Chaudhary

Sakchi

15 Shree Hari Hardware 9334624699 Mr.Sekhar Agrawal

Sonari

16 Munna hardware 0657- 2283186

Mr.ajay Kumar

Telco

17 Sona Agency 9835120407 Mr.Rajiv kumar

Mango

18 B.I hardware 9334631019 Mr.sourabh ahuja

Baridih

19 Shyam building 9934533105 Mr.shyam agarwal

Sarikella

RANCHI

No Dealers name Contact Number

Key Person Address

1. Ganpati enterprises

0651-2331442

Mr.Aditya Sharma

Main road

2. Prem industrises 0651-2200317

Mr.Rajeev khandelwal

Sewa sadan road

3. Jain enterprises 9431181669835350654

Mr.j.k jain Main road

4. Venkatesh sanitary&sales

0651-2547576

Bariatu Road Ranchi

5. Prem agency 0651-2200317

Sewa sadan

6. D.S sanitary&tiles 0651-5451174

Sunil gupta Harmo road

7. Allied sanitary 9431326721 Md.j. Akhter Fatehullah road

8. Indian sanitary&hardware

0651-6452339

Mr.rajeev kumar singh

Patel park road harmu ranchi

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9. Jain Sanitaryware 0651-2201268

Mr.K.C.jain Gulab gul building H.B.road ranchi

DUMKA

No Dealers name Contact Number Key Person Address 1. Scientific

emporium06434-2223899431156181

Mr. ram avtar

singhaniya

Zila school road

2. Tubes&sanitary store

06434-224540/222323

Mr. anup keshri

Bhagalpur road

3. Singhania sanitary

06434-2267259431130355

Mr. vikas singhania

Sarai road dumka

4. Shiva sanitary 9413167645 Mr. Rupesh Kumar

Bhagalpur road

dumka

DHANBAD

No Dealers name Contact Number

Key Person Address

1. Basera traders

Mr. sanjay mohalbani

2. Builders palace

9835561133 Mr. Ramesh Kumar

G.T.road govindpur

3. Pathak brothers

06540-2623679835740467

Mr. santosh kumar pathak

Upper bazar

RESEARCH OBJECTIVE

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To give correct information to the management of Tata tube for having the detailed market scenario of Steel tubes.

To find out the areas of satisfactions and dissatisfactions of Tata tubes.

To find out the strengths and weaknesses of competitors in the market of steel tubes.

To find out the future demand of steel tubes.

To find the market size of Steel tubes in Jharkhand.

To find out the factors that effects the demand for steel tubes

To analyze data and make recommendations about possible improvement in attributes of the product so that demand for Tata’s product can be increased.

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SCOPE OF THE STUDY

The study is confined to 44 outlets which consist of Distributor, dealers and retailers in Jharkhand.

The survey which we conducted in Jharkhand will certainly help out the management to know the loopholes in their strategy.

The survey will lead them to have a detailed analysis of competitors’ strategy and they can plan to have an edge over competitors.

All distributors, dealers and retailers dealing with Steel Tubes(GI PIPES) were interviewed.

The information about competitors’ strength was gathered from all the dealer and retailer to gain information from the competitors’ office, which was fruitful in analyzing the demand.

The following 15 representative market areas were studied which covered 44 outlets as suggested by the company:

1. JAMSHEDPUR2. CHAIBASA3. SIMDEGA4. GIRIDIH5. GOMIA6. ADITYAPUR7. RANCHI8. RAMGARH9. HAZARIBAGH10.DALTONGANJ11.DHANBAD12.GARWAH13.GUMLA14.DEOGHAR

15.JHUMRITILAIYARESEARCH METHOD

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RESEARCH DESIGN

The research is of exploratory type. The research tried to find out the potential of commercial tubes in Jharkhand, market share of leading tube manufacturers in Jharkhand and different attributes of GI Pipes which are required/expected from customer/user point of view.

SECONDARY DATA COLLECTION

Secondary data was mainly collected through the Internet. Data has been extracted from the official website of Tata Steel (www.tatasteel.com).

PRIMARY DATA COLLECTION :

Primary data was collected from the market place by interacting with theDistributors, retailers and users/plumbers through the survey method. Thequestionnaire used in the survey has both structured as well asUnstructured questions.

The corresponding name and address of the distributors and retailers were provided by the company sales office Jamshedpur. Convenience sampling has been done to carry out the survey.

-Data collection was through Questionnaire.- Pretesting of Questionnaire was done and the required changes were made

before the actual survey.-Various tools, which were used, include Regression, descriptive statistics and

ANOVA using Statistical Package for Social Sciences (SPSS).

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EXPLORATORY RESEARCH: It is that type of research design the primary objective of which is to provide insights into and comprehension of the problem situation confronting the researcher.

This was done by having a discussion with the project guide and the salesperson of Tata Tubes.

. Information was also collected by going through the annual sales

report of Tata tubes & various journals of Tata Tubes.

DESCRIPTIVE RESEARCH: It is a type of conclusive research that has its major objective the description of something usually market out the following characteristics or functions.This was done by carrying steps:

A list of various authorized dealers involved in the sale of TATA Tubes was prepared.

The counter potential of every retail outlet was found.

The strength and weakness of Tata Tubes was assessed by interacting with the retailers.

SAMPLE ELEMENT: It is the object the possess the information sought by researcher and about which inferences are to be made.

In our project the sample element are the various retailers who are certified TATA TUBES, non-certified TATA as well as non-TATA dealers.

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SAMPLE EXTENT: Extent refers to the geographical boundaries under consideration.

In our project the sample extent was the various districts of Jamshedpur

SAMPLE TECHNIQUE: The technique used was Convenience sampling.

Convenience sampling is a non- probabilistic sampling technique that attempts to obtain a sample of convenience elements.

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Secondary data: Is the data that has been collected earlier by someone else.

It was collected after going through the annual planning report of TATA TUBES, sales report & various journals published from TATA TUBES.

Primary data: It is originated by the researcher for the specific purpose of addressing the research problem. It is the data collected directly from the market place with customers, traders,& suppliers often the major resource.

Primary data was collected from the market place by interacting with the distributors & retailers through the survey method. The

questionnaire used in the survey have both structured as well as unstructured questions.

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LIMITATIONS OF THE STUDY

All the dealers and industrial user of Jharkhand were not covered because of constraints of time.

-The study was restricted to certain specific areas of Jharkhand which may not seem to present the general picture of product.

-Respondents unwillingness to provide adequate information were consequent upon time constraints and personal inconveniences.

-Sampling and non-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 covering each and every department, which was at geographical disparate location, was not feasible.

-Since the topic was sensitive the industrial users were very reluctant to talk about it.

-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.

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DATA ANALYSIS

&

INTERPRETATION

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1. ARE YOU SELLER OF TATA PIPES?

COMMENTS:- Due to strong brand image, majority of retailers (95%) use to sell Tata Pipes. Although margin is very poor retailers sell Tata Pipes for retaining their customers.

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2. MENTION MAJOR BRANDS YOU DEAL WITH EACH CATEGORY?

1. GI PIPES

COMMENTS:- In jharkhand market share of tata pipes is only 16%. Due to low price and wide range of product local manufacturers capture a big share of commercial tubes. Jindal,bnsal and surya have also substancial share of commercial pipes in jharkhand. They have 20%, 12% and 10% market share of commercial pipes in jharkhand respectively.

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2. PVC PIPES

COMMENTS:- Due to low price and considerable quality PVC pipes are being used as substitute of commercial GI pipes. In PVC commercial pipes segment Prince, Supreme, Jindal and Paras are some main players. In PVC segment there are also some local manufacturers but their material quality is not so good. Prince and Supreme cover almost 50% market share of this segment.

 

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3. WHICH SIZES OF TUBES DO YOU DEAL WITH?

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COMMENT: Generally 15mm, 20mm, 25mm, 32mm and 40 mm sizes are used for plumbing purpose. Bigger sizes are used in irrigation and process purposes. For plumbing, irrigation and process purposes above sizes of each category i.e. heavy, medium and light are required in different ratio.

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COMMENT: customers generally prefer medium type pipes because medium type tubes are as strong as heavy and available at low price. 60% customers uses medium type pipes for plumbing and irrigation purpose. Heavy type pipes are generally used in process or industrial purposes. But in some cases heavy type pipes are also used in plumbing and irrigation purposes. Light type pipes are also used in all three purposes but it is generally used in house for plumbing.

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FOR PLUMBING:

COMMENT: for plumbing purpose medium type GI pipes are more prefered. 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 pressure water line heavy type pipes are used. Light type pipes are generally used in house plumbing in low pressure water supply line.

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FOR IRRIGATION:

COMMENT: In irrigation purpose still medium type pipes are most preferred. 50% of total requirement of GI pipes is fulfilled by the medium type GI pipes. 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 irrigation. Generally light type pipes are used in personal irrigation and low pressure water supply covering short distance.

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FOR PROCESS:

COMMENT: In process like cold storages, high air pressure line, ventilation line, air conditioning line etc. normally heavy type’s pipes are used. 40% heavy types pipes are used in process 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 parts of automobiles.

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AREA WISE CONSUMPTION OF GI PIPES AND TATA PIPES:

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4. AVAILABILITY OF TATA TUBES IN MARKET?

COMMENTS: As far as availability is concerned Tata pipes is not available at any time. Only 55% retailers accept that Tata pipes is available at any time. 30% retailers accept that they haven’t stock of Tata pipes at all times. They have to wait for the stock coming from distributors. 10% retailers said that they supply Tata pipes only on customers demand. They don’t stock Tata pipes in their outlets. Only 5% retailers said that some sizes not available in market.

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5. MARKET SHARE OF DIFFERENT SIZES OF TATA PIPES?

LIGHT:

MEDIUM:

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HEAVY:

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6. WHAT ARE THE PURPOSES FOR WHICH COMMERCIAL PIPE IS USED?

COMMENTS: Tata pipes is generally used in plumbing, irrigation and process purposes.44% of total volume of g i pipes is used in plumbing purpose. 36% of total volume of g i pipes is used in irrigation purpose and remaining volume is used in different process purpose.

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7. HOW DO YOU COME TO KNOW ABOUT THIS BRAND?

COMMENT: Although Tata pipes has a strong brand image, recommendation of plumber and user of Tata pipes play a big role while purchasing the GI pipes. 50% customers buy Tata pipes on plumber and users recommendation. Because plumber and users know the quality of the Tata pipes and long lasting features.

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Print media, electronic media and hoarding are also source of information of Tata pipes. 15% customers buy Tata pipes because they are loyal to the brand. They believe that Tata’s all products are quality product.

8. How satisfied are you with quality of different GI pipes available in

market?

COMMENT: On 5 point scale [1 = Extremely Dissatisfied, 2=Somewhat Dissatisfied, 3= Neither satisfied nor Dissatisfied. 4= Somewhat Satisfied, 5= Extremely Satisfied] satisfaction level of Tata pipes customers are 4.5, which is highest. Satisfaction level of Tata pipes is followed by Surya which scored 4.4 out of 5. Qualities

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of Jindal and Bansal pipes are also satisfactory. Satisfaction level in local brand is average. Customers are neither satisfied nor dissatisfied with quality of local brand.

9. WHY DO PEOPLE PREFER OTHER TUBES OVER TATA PIPES?

COMMENT: Normally customers prefer to buy other brand pipe rather than Tata pipes, because rate of Tata pipes is high. Customers don’t want to expand more money on Tata pipes because almost same qualities of pipes are available at lower price. 44% customers accept that due high price of Tata pipes they don’t prefer it. 14% respondents said that limited range of product force them to buy any other brand which has wide range of products and they are available at

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any time in outlets. 25% respondents accept that customers buy only those products which have great marketing activities. Marketing activities like schemes, discounts, gifts etc. attract the customers.

10.WHAT ARE YOUR AREAS OF DISSATISFACTION WITH RESPECT TO TATA PIPES?

PRICE:

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 COMMENTS

About 80 % of the dealers /retailers in Jharkhand are dissatisfied with the price of Tata pipes. Only 11% are satisfied with Tata pipes. This means that Tata pipes price is not competitive. 

 

 QUALITY:

 

COMMENTS

90% of the dealers /retailers are satisfied with Tata pipes quality. Such a high percentage speaks for itself that Tata pipes are best quality pipes in India. 

BRAND NAME:

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COMMENTS

96% of the dealers /retailers agree that Tata is the biggest brand in pipes in Jharkhand.   

TIMELY DELIVERY:

COMMENTS

Here comes the most important part of distribution system, timely delivery.70 % dealers feel that Tata pipes delivery system in not proper. Thus Tata pipes has to seriously look into this matter.  

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AVAILABILITY:

COMMENTS

Availability which is again important factor to gain market share .About 75% of dealers and retailers agree that Tata pipes product are not available .Again Tata pipes has to analyze this to improvise its decreasing market share.  

 

 

PROFIT MARGIN:

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COMMENTS

80% of the dealers /retailers in Jharkhand are dissatisfied with Tata pipes profit margin. Thus Profit margin offered by other brands is higher than Tata pipes

FOR USER AND PLUMBER

1. Which type of pipes do you use for plumbing purpose?

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COMMENT: PVC pipes emerge as a great substitute of GI pipes. Low price, considerable quality and wide range of products fulfill all the requirements of normal customers. In case of high pressure and dip boring customers prefer GI pipes. Life of GI pipes are much more than the life of PVC pipes, that’s why some customers prefer GI pipe due to durability GI pipes. 25% customers accept that they are using both types of pipes. Selection of pipes depend on the nature of applications. In low pressure water line customers use PVC pipes while in high pressure line they use GI pipes.

2. Which brand of GI pipe do you use?

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COMMENT: Plumbers recommend Jindal, Bansal, Surya and local brand for plumbing purpose because retailers give incentive for recommending these brands. Although they accept that quality of Tata pipes are excellent, customers prefer to buy other brand rather than Tata because of higher price and unavailability of wide range of products.

3. Which brand of PVC pipe do you use?

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COMMENT: In PVC segment all the major brands like Prince, Supreme, Jindal and Paras provide almost same quality at almost same price. Customer usually buys that brand whish has greater market penetration. In PVC segment above brands are trying to strengthening those market where they have strong presence. Plumbers recommend those brands which are available in the near by market.

4. How did you come to know about these brands?

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COMMENT: Although Tata pipes have a strong brand image, recommendation of plumber and user of Tata pipes play a big role while purchasing the GI pipes. 50% Customers buy Tata pipes on plumber and users recommendation. Because plumber and users know the quality of the Tata pipes and long lasting features. Print media, electronic media and hoarding are also source of information of Tata pipes. 15% customers buy Tata pipes because they are loyal to the brand. They believe that Tata’s all products are quality product.

FINDINGS

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The proper means of communication and an effective advertisement can

tend to increase in the sale of TATA tubes.

Due to limited no of distributors, most of the retailers use to buy Tata

pipes from comparatively big retailers, that is why profit margin of the

end retailers become less. Fewer profit margins discourage the small

retailers to sell the Tata pipes.

Since small retailers used to buy Tata pipes from comparatively big

retailers, small retailers can not avail the different types of promotional

schemes offered by the company for the retailers.

Many customers switch from Tata pipes to other pipes because of

unavailability of required sizes at the time of requirement.

Many local manufacturers are selling their products using fake stamp of

Tata pipes.

Marketing people do not visit the retailers’ outlets regularly.

Since quality of Tata pipes is excellent, many retailers as well as end

users have demanded pipes fittings should also be manufactured by the

company.

Jindal and Surya are main competitors of Tata pipes.

Due to high price of Tata pipes, its market share is low.

All the distributors and retailers accept that overall quality of Tata pipe is

the excellent.

PVC pipes are swallowing the market of steel pipes because of its low

price

Tata pipes can increase the market share by increasing the no of

distributors.

Quality of HFIW process is superior to the quality of FM process.

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Bend ability, thread quality, weld quality and zinc coating of Tata pipes

are the excellent.

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RECOMMENDATIONS

Enhance and leverage Brand equity in plumbing and irrigation segment.

Enhance Brand visibility through retail identity program.

Enhance the channel capacity by implementing channel development

program.

Strengthening retail network in identified territories.

Marketing personnel should interact with the retailers as well as

customers on regular basis.

Customer complaint should be resolved within the predetermined

duration.

Need for additional range of product for catering to new

markets/customers.

Increase in sales volume possible only with superior availability.

Like other competitors, Tata pipes should also conduct product

promotional program regularly.

Different schemes offered by Tata Pipes should also be reached to the

small retailers

TATA tubes should focus on all such dimensions which they do not

manufacture but are in great demand in Jamshedpur market. It

corresponds to nearly 50% of the total market.

By increasing the product portfolio and improving the order fulfillment

time, TATA tubes can increase its market share in the Jharkhand market.

Reduce order execution and delivery time so that Tata pipes would tap the

market opportunities.

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In case of black tube (uncoated) proper packaging should be done

specially in rainy season, so that it would be prevented from the rusting.

The proper means of communication and an effective advertisement can

tend to increase in the sale of TATA tubes.

Some kind of incentives or discount scheme should also be provided by

the company as compare to its competitors.

Feedback and suggestion of retailers and customers about the

product might play an important role to understand the requirement of the

customers and new product development accordingly. Hence retailers and

customers should be appreciated if they show their interest in feedback

and suggestion programs

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SWOT ANALYSIS

TATA PIPES

STRENGTHS:

Tata pipes are known for their superior quality. Hence the retailer tends to recommend and sell it to the customers and hence keep a good amount of stock.

Tata Pipes has a good brand image and hence a good brand equity. It is a brand which sells by name. Therefore retailers do not hesitate to stock it.

Tata Pipes distribution network is most transparent among the steel pipes companies. Anyone can view the distribution of tata pipes their broachers or in websites.

Tata Pipes works with its 3c’s which updates its product from time to time.

WEAKNESSES: The biggest weakness of Tata pipes distribution network is its

distribution monopolistic approach. A good number of a retailers complaint about the lack of

transparency in dealings, communication gap, not clear about the various schemes for the retailers.

There is a clear cut lack of awareness about the latest developments of TATA Pipes .For example: Most of the retailers complaint about the rusting problem in steel pipes, they know nothing about the new GI pipes of TATA, which comes with AAJEEVAN guarantee.

The profit margin given to retailers of TATA Pipes is lower and the retailers’ complaint about price monopoly and absence of any sort of negotiation by the distributor.

Due to its high price middle and lower class family can’t afford it

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OPPORTUNITY:

The biggest opportunity for Tata Pipes is in government supplies. With rapid industrialization of the state, Tata pipes has immense potential in future.

Another big opportunity for Tata Pipes is the brand image and the goodwill, which it carries. No other company was found matching it in the city and it can be encashed if exploited properly.

Introduction of its new product line. Tata Structura which is specifically used for architectural purpose.

THREATS:

The biggest threat for TATA PIPES is tendency of retailers to the customers to switch over to the other brand due to lack of transparency in price. and offers and unavailability, lower prices of other brands , greater margin and quick availability is a threat.

Some retailers declined to stock TATA PIPES for the similar reasons and directly to the distributors, if brand loyal customers ultimately refuse to switch over to other brands.

The upcoming of PVC pipes which are in great demand now a days, and is cheap as compared to steel pipes.

Import from china – tubes and tubular components.

JINDAL PIPES

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STRENGTHS:

The biggest strength of Jindal pipes is its less price. Price sensitive customers prefer brand with less rate and hence retailers prefer to stock them.

Jindal pipes give a handsome margin to the retailers which encourage them to stock more.

Its availability and service quiet good.

WEAKNESSES:

There is no fixed distributor of Jindal pipes pipe in the cities. At present one or two dealers are doing the work on ad-hoc basis. Therefore there is no clear-cut knowledge about the schemes of the company.

The brand image fo JINDAL PIPES is weaker with respect to the top players.

OPPRTUNITIES: Jindal Pipes can well exploit the sense of dissatisfaction

prevalent among the retailers for the tough players to turn the tide in favour.

THREATS:

The ad campaigns, innovation, brand image and more transparent distribution network of other pipe companies

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poses a threat to jindal pipes in future. Quality of pipes is a major threat to it.

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TATA STEELTUBE DIVISION

QUESTIONNAIRE

STORE NAME & ADDRESS-……….…………………………………………………………………………………………………………………………………………………………………………………………………EMAIL ID(if any)- ……………………………………………………………............................................................ PHONE NO- MOBILE-…………………………OFFICE-…………………………………….

RESPONDENT’S NAME-……………………………………………………………………………………

INTERWIEWER’S NAME-……………………………………………………………………………………………… START TIME-…………………………………………………..

END TIME-………………………………………………………...

DATE OF INTERVIEW:-…………………………………………..

INTRODUCTION:-

………………………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………

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FOR RETAILERS/DISTRIBUTORS

1) Which Kind of pipe do you deal in

a) GI. ……………b) PVC …………….

c) Both …………….

2) MENTION MAJOR BRANDS YOU DEAL WITH EACH CATEGORY? Steel pipes PVC pipes

-TATA TUBES …………… ……………. -JINDAL ………….. ……………-BANSAL ………….. ……………-RST ………….. …………... -SUPR EME ………….. …………..-KISAN ………….. …………..-GUPTA …………... ………….-PRINCE …………… …………..PHINOLEX …………… ……………AASIRWAD …………… ……………TUFF ………….. …………..PARAS …………. ………….

OTHERS …………. …………..

3) WHICH SIZES OF TUBES DO YOU DEAL WITH?

LIGHT (MM)

15 …………..20 ………….25 …….……32 …………..40 …………..50 ………….65 ...…………80 …………..

MEDIUM (MM)

15 …………..20 ………….25 …….……32 …………..40 …………..50 ………….65 ………….80 …………..100 ………….

HEAVY( MM)

15 …………..20 ………….25 …….……32 …………..40 …………..50 ………….65 ...…………80 …………..

OTHERS

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100 ………….125 …………..150 ...………..

125 ………….150 ...………..

100 ………….125 .…………150 ...………..

4) WHAT IS THE TOTAL ANNUAL COUNTER SALES OF GI PIPES? BRAND Tones Rupees

i. TATA PIPES -------------- --------------

ii. JINDAL --------------- ---------------

iii. SURYA --------------- ---------------

iv. NEEZON --------------- ---------------

v. RST --------------- ---------------

vi. OTHERS --------------- ---------------

5) HOW DO YOU COME TO KNOW ABOUT THIS BRAND?

a) PRINT MEDIA b) ELECTRONIC MEDIA c) REFERENCES d) HORDINGS e) OTHERS

6) How satisfied are you with quality of different GI pipes available in market?

[1 = Extremely Dissatisfied, 2= Somewhat Dissatisfied, 3= Neither satisfied

nor Dissatisfied.

4= Somewhat Satisfied, 5= Extremely Satisfied]

Extremely Extremely

Dissatisfied Satisfied

1 2 3 4 5

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i. TATA PIPES 1 2 3 4 5 ii. JINDAL 1 2 3 4 5

iii. SURYA 1 2 3 4 5 iv. NEEZON 1 2 3 4 5 v. RST 1 2 3 4 5

vi. LOCAL 1 2 3 4 5

7) WHY DO PEOPLE PREFER OTHER TUBES OVER TATA PIPES?

a) COSTb) AVAILABILITYc) QUALITYd) MARKETING

8) From where do you buy TATA pipes to sell?a)Company …………..b) Distributors …………..c) Dealers ……………d) Retailers …………….e) Others …………….

9) ON A SCALE OF 1 – 5 MARK THE EFFECTS OF FOLLOWING FACTORS THAT YOU CONSIDER WHILE CHOOSING YOUR BRAND?

[NOTE: not at all important– 1, not much important – 2, Important – 3, somewhat much important -4, Very important-5]

Factors

Price 1 2 3 4 5

Quality 1 2 3 4 5

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Brand name 1 2 3 4 5

Timely delivery 1 2 3 4 5

Profit margin 1 2 3 4 5

Availability 1 2 3 4 5

Value for money 1 2 3 4 5

12) WHAT ARE THE DIFFERENT SIZES OF TUBES THAT ARE MAXIMUM IN USE IN FOLLOWING CATEGORY?

SIZES LIGHT MEDIUM HEAVY1520253240506580100125150

OTHERS

13) What suggestions do you have for boosting the sales of TATA pipes?

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THANK YOU

QUESTIONNAIRE FOR CONSUMERS

Respondent’s name:Mobile/phone no.: Address: Occupation:

1.Which type of pipes do you use for plumbing purpose?a) GI pipesb) PVC pipes

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c) both

2. Which brand of GI pipe do you use?a) Tatab) Jindalc) Neezon d) Others(if any, please specify)

3. Which brand of PVC pipe do you use?a) Princeb) Supremec) Finolex d) Others(if any, please specify)

4. How did you come to know about these brands?a) TVb) Newspaperc) Hoardingsd) Plumber/Referencee) Others(if any, please specify)

5. How satisfied are you with quality of different GI pipes available in

market?

[1 = Extremely Dissatisfied, 2= Somewhat Dissatisfied, 3= Neither satisfied

nor Dissatisfied.4= Somewhat Satisfied, 5= Extremely Satisfied]

Extremely Extremely

Dissatisfied Satisfied

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1 2 3 4 5

vii. TATA PIPES 1 2 3 4 5 viii. JINDAL 1 2 3 4 5

ix. SURYA 1 2 3 4 5 x. NEEZON 1 2 3 4 5

xi. RST 1 2 3 4 5 xii. LOCAL 1 2 3 4 5

6. Why do you use PVC pipes as a substitute of GI pipes?a) Low costb) Availabilityc) Qualityd) Durabilitye) Usages

7. Do you have any problems with your brand of pipe?

a) Yes

b) No

If yes, then please specify your problems?

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8. Any suggestion would you like to give to Tata Pipes?

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THANK YOU

BIBLIOGRAPHY

MARKETING MANAGEMENT - PHILIP KOTLER

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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

Magazines : Business India Tisco news Tata Tubes (magazine) - Standard tubes - Precision tubes