GMQ Marketing report

8/7/2019 GMQ Marketing report

http://slidepdf.com/reader/full/gmq-marketing-report 1/12

Global Manufacturing System & Quality Management

Ahmedabad Management Association

Global Manufacturing System & Quality

Management

Submitted to: Pradeep Pai sir

Submitted By:

Rohan Mehta

Vaibhav Parakh

Gargi Jain

Dhwani Shah

Sarvesh Pandey





The Past and the Present consumption level

y India started using this method in 2002, The first plastic road was laid in Tamil Nadu of

10-12 kms.

y The mixed has been used to lay roads of length up to 1,500 km in the state of Tamil

Nadu.

y Other states like Maharashtra, Karnataka, Pondicherry, Kerala and Andhra Pradesh have

also laid test roads.

y Bangalore Mahanagara Palike (BMP) begins laying over 500km of road, using bitumen

mixed with recycled plastic

Future Demand

India, now the fifth largest economy of the world, has shown an impressive average growth rate

of about 8.5% in recent years. The Indian success story started with the private sector led growth

in IT, telecom and service sector. Despite the financial crisis that began in 2007, India could

achieve 6.7% growth in 2008-09 and the economy posted a considerable recovery by providing

substantial fiscal expansions. In order to sustain this growth, India will need investments in the

order of US$ 350billion during the 11th five year plan and the policy-makers are engaged in adialogue to come up with timely and correct policies to reduce constraints in the key

infrastructure sectors such as Transport and Energy. The road sector alone will require

investments in the range of US$ 75 - 90 billion in next five years.

The total road network in India is about 3.3 million km, out of which about 2% are National

Highways [NH] and Expressways. About 60% of the freight and 87% of passenger traffic in

India is carried by the road sector, out of which 40% of the total road traffic ply on the NH

network. Considering the vehicle growth of about 10% per annum in recent years, the share of road traffic on the NH network is likely to further increase. However, about 30% of the total NH

network is still single lane, 53% is double lane [single carriageway] and only 17% is four

lane/six lane/eight lane [dual carriageway].The NH network not only needs significant capacity

expansion but also substantive improvements in capacity utilization, and asset management and

safety practices.





The government is likely to meet the USD 500-billion infrastructure investment target by 2015

exceeding the fixed tenure by three years, a government official said. "Due to the global

(economic) meltdown, we may not be able to meet the target by 2012. But we will reach the

target by 2015," Gajendra Haldea, who advises the Planning Commission on infrastructure, told

PTI on the sidelines of an infrastructure summit here today.

India is targeting about USD 500-billion investments during the period in infrastructure projects

such as road development and power production. "We are trying for leveraging budgetary

resources and multi-lateral assistance for public private partnerships (PPPs) in the country's

infrastructure development," Haldea said. "The private sector will now participate in

infrastructure building and it will help to meet the target, he said.

The World Bank has agreed to support the government's public-private partnership (PPP)

programme in the highway construction sector. Hitherto, the international funding agency's

exposure was limited to government-funded road projects.

"World Bank has agreed to look at funding in our viability gap and annuity projects, which was

not the case before. So we are identifying new areas of cooperation and looking forward to

institutional support," road transport and highways minister Kamal Nath said after a meeting

with World Bank chief Robert Zoellick, who is here on a visit.

Viability gap, or the amount the government pays to a private sector highway developer to make

the project viable, is an essential component in a PPP project. In annuity mode of highway

construction, a developer gets paid half-yearly by the National Highways Authority of India for

the capital cost incurred by him. The government has also sought the agency's support for mega

road projects.

The above analysis on the current affairs and views and visions of the Indian Government the

future demand for the Road Construction industry is huge.





Indian Infrastructure Market

y Infrastructure spend in India is estimated to be Rs. 20.3 tn( USD 430 bn)during the

current 5 year plan (source : Planning commission)

y Power, roads, Telecom & railways to witness maximum spend

Sector USD Bn

Electricity 131

Roads 66

Telecom 57

Railways 55

Irrigation 47

Water Supply 42

Ports 16

Airports 7

Storage 5

Gas 4

Total 431

Some Observations

y India¶s infra needs are robust no matter what the growth rates

y However, as GDP growth rates hover around 7-8% - infra needs are becoming more

acute

y Greater political consensus on infrastructure development

y In many places it is also getting co-related to votes

y Acceptance of Private participation

y Completely at Centre but not all states

y PPP framework is in place

y Capacity to implement PPP/BOT & other models of private participation exists





y Private financing of infrastructure projects now well established

y Increasing role of FDI being observed

y Regulatory processes are gradually maturing

y Most successful infrastructure projects have a good Indian partner

y Infrastructure developers have created significant shareholder value in capital market

R oads ± national scenario

India¶s billion strong populations straddle a land area of about 3.3 million sq km. While three

fourths of Indians still live in our 600,000 villages, we are urbanizing rapidly. The rest of the

population lives in cities and towns that comprise five metropolitan cities soon to feature in the

world¶s list of mega cities, 25 mini metros with a population over one million and 2500 smaller

cities and towns with a population of 1 lakh and above.

The country¶s road network of almost 3.5 million km comprising both paved and unpaved

surfaces is the world¶s second largest. This corresponds to a road density of about 106 km of

roads per 100 sq km of land area. That marks a colossal leap from the road density of 12 km/100

sq km we had in 1951. But it is abysmally low compared to the density of 200-300 km/100sq km

we see in the more developed economies.

Of the 106 km per 100 sq km in India, the surfaced road density is barely 45 and that too of

questionable quality. Barring a meager 2% of the total road length in the country that is made of concrete roads, the remaining vast share is made largely of unbound aggregates surfaced with

bitumen or asphalt based wearing courses of varying and inadequate thicknesses.





Production Possibilities Of Plastic R oads.

Plastics waste constitutes a significant portion of the total municipal solid waste (MSW)

generated in India. It is estimated that approximately 10 thousand tons per day (TPD) of plastics

waste is generated (i.e. 9 % of 1.20 lakh TPD of MSW). Their visibility has been perceived as a

serious problem and made plastics a target in the management of solid waste. Plastics are non-

biodegradable. They also have very long lifetime and the burning of plastics waste under

uncontrolled conditions could also lead to generation of many hazardous air pollutants(HAPs)

depending upon the type of polymers and additives used. However, the end-of-life plastics can

be recycled into a second life application but after every thermal treatment, degradation of

plastics takes place to a certain extent. To address the plastics waste disposal issue, an attempt

has been made to describe the possibilities of reusing the plastics waste (post-consumer plastic

waste) in road construction.

Features Of Plastic R oads.

� Plastic is coated over stone

� Coating is easy and the temperature needed is the same as the road laying temperature

� Use of plastics more than 15% is possible

� Flexible films of all types of plastics can be used. Plastics present in municipal waste can also

be used including laminated sheets, aluminum coated and plain sheets

� Bitumen is bonded with the aggregate by means of plastic which acts as a binder

� Bitumen bonding is strong as evidenced from the Extraction of bitumen and higher Marshall

value

� Coated plastics acts as binder and the added bitumen binds strongly.

� In situ process. Waste plastic is collected, shredded and can be used in the hotmix plant to lay

the roads.

� No new technology is involved. The existing Mini hot mix plant or Central Mixplant can be

used without any modification.

� Marshall Stability Value is around 2500kg and the aggregate quality is improved.

� The coated aggregate shows increased strength (Higher LAV, Aggregate

crushing and Impact value).





� Bitumen to the extent of 10 to 15% can be saved and thus reducing the cost ofthe process.

� No pothole formation, rutting or raveling has been observed after 5 to 6 years after

construction.

� Dry process can be practiced in all type of climatic conditions. Process can be modified by

varying the percentage of plastic with respect to the environmental conditions namely,

Temperature, Rain, Snow, load, etc.,

� Dry process with 15-20% of plastics can be used in low temperature areas and water logged

areas.

� Pot hole filling can be done using coated plastics aggregate ± better strength

� Reclaimed flexible waste can be reused by coating the plastics ± better results

� No evolution of any toxic gases like dioxin

� No granulation or blending is needed

� Stronger road with increased Marshall Stability Value

� Better resistance towards rain water and water stagnation

� No stripping and no potholes.

� Increase binding and better bonding of the mix.

� Reduction in pores in aggregate and hence less rutting and raveling.

� No leaching of plastics.

� No effect of radiation like UV.

� The strength of the road is increased by 100%.

� The load withstanding property increases. It helps to satisfy today¶s need of increased road

transport.

� For 1km X 3.75m road, 1 ton of plastic (10 lakh carry bags) is used and 1 ton of bitumen is

saved.

� Value addition to the waste plastics (cost per kilogram increases from Rs 4 to Rs 12).

� The cost of road construction is also decreased.

� The maintenance cost of road is almost nil.





Competition So Far«

Traditionally, the road projects were financed only out the budgetary grants and were

controlled/supervised by the Government. The road system has attracted very limited private

sector participation in the past. While the traffic has been constantly increasing at a rapid pace,

the traditional system of financing road projects through budgetary allocation has proved to be

inadequate. It was in this context that the necessity for exploring the innovative means of

financing the highly capital intensive road projects was felt.

The beginning of a significant private sector participation in road projects was made with the

launching of India's largest road project - National Highways Development Project (NHDP). To

encourage private sector participation, several initiatives have been taken by the government,

which includes:-

y Declaration of the road sector as an industry.

y Provision of capital subsidy up to 40 % of the project coast to make projects

commercially viable.

y 100 % tax exemption in any consecutive 10 years out of the first 20 years of a project.

y Provision of encumbrance free sites for work, i.e. the Government shall meet all the

expanses relating to land and other pre-construction activities.

y Foreign Direct Investment up to 100 % in road sector.y Easier external commercial borrowing norms

y Higher concession period, (up to 30 years)

y Right to collect and retain toll





Distribution policy

y Ministry of R oad Transport & Highways:

An apex organization under the Central Government is entrusted with the task of formulating and

administering, in consultation with other Central Ministries/Departments, State Governments/UT

Administrations, organizations and individuals, policies for Road Transport, National Highways

and Transport Research with a view to increasing the mobility and efficiency of the road

transport system in the country.

R oads wing

Deals with development and maintenance of National Highway in the country.

Main responsibilities:

The Ministry is responsible for:

y Planning, development and maintenance of National Highways in the country.

y Extends technical and financial support to State Governments for the development

of state roads and the roads of inter-state connectivity and economic importance.

y Evolves standard specifications for roads and bridges in the country.

y Serves as a repository of technical knowledge on roads and bridges.

Transport wing

Deals with matter relating to Road Transport.

Main responsibilities:

The Ministry is responsible for:

y Motor Vehicle legislation,

y Administration of the Motor Vehicles Act, 1988

y Taxation of motor vehicles,

y Compulsory insurance of motor vehicles,

y Administration of the Road Transport Corporations Act, 1950,

y And promotion of Transport co-operatives in the field of motor transport.

y Evolves road safety standards in the form of a National Policy on Road Safety and

by preparing and implementing the Annual Road Safety Plan.

y Collects, compiles and analyses road accident statistics and takes steps for





This will be our only distribution channel for the government.

y Other ways for distribution would be through Sub ± Contractors.

Marketing Policy

The Indian road network has emerged as the second largest road network in the world with a

total network of 3.3 million km comprising national highways (65,569 km.), State highways

(128,000 km.) and a wide network of district and rural roads. The US tops the list with a road

network of 6.4 million km. Currently China has a road network of over 1.8 million km only. Outof the 3.38 million Kms of Indian road network, only 47% of the roads are paved. Roads occupy

a crucial position in the transportation matrix of India as they carry nearly 65 per cent of freight

and 85 per cent of passenger traffic. Over the past decade several major projects for development

of highways linking the major cities have been planned ± and work started on most of them.

What is of significance is that private sector involvement (BOT projects) has finally been found

to be feasible in the Indian context. This has led to an accelerated growth in this sector ± which

had long been faced with financial constraints. This has also facilitated improvement in the

quality of the new highways and introduction of the latest concepts for toll collection, signage¶s

etc. The process of development of the new highways is expected to continue for many years to

come.

developing a Road Safety Culture in the country by involving the members of

public and organizing various awareness campaigns.

y Provides grants-in-aid to Non-Governmental Organizations in accordance with the

laid down guidelines.





Our basic ³Marketing Policy´ will follow the 4 basic quadrants of marketing. Below is the

policy based on those quadrants

y Pressing Flesh± Face to Face Marketing

o Ask Questions ± Focus all your energy on how you can really help your clients most.

o Use a strategic referral request system.

o Networking on steroids -Only go to events that put you in front of real prospects,

not fellow contractors.

o Know how, when (and if) you should give a prospect your business card.

o Form strategic alliances and joint ventures with other business owners.

o Use positioning & reversal techniques to close more sales.

y Direct R esponse ± The Ultimate Machine

o If you don't use direct response you are leaving cash on the table.

o There are two very simple keys to direct response that will explode your results:

K iller Offer

Call to Action

o Integrate your direct response marketing offer and call to action into everything

you touch.

o Use persuasive communication (NOT intrusive sales jargon) to influence your

prospects to buy from you.

y Media ± How to use it so it works

o ³Advertise the advertising´, or...

o Use media to drive prospects to your offer and your call to action.

o Use ³guerilla´ free press techniques to position yourself as an expert, and²you

guessed it² drive traffic to your direct response system.

o Use persuasive copy and direct response in all your sales letters, ads, flyers,

brochures, tv & radio scripts, webpages, articles, yellow page ads, signs, your trucks,

and ANY contact with a potential prospect.

y Al Gore's Greatest Invention-the Internet

o Use email auto responders to build a list of prospects so you can market to them.





o No one cares if your website is pretty, especially if they can't find it. Use Search

Engine Optimization (SEO).

o Don't make the common mistake of designing your website like it's just a way for the

people who already know you to find your address.

o If your website doesn't offer something of value, you are wasting your time (and $)

on an expensive ³business card´ hidden in the cyber jungle.

o Offer + Call to Action + Auto responder = ³Drag It Home´ approved marketing.

Constraints

From data collected through interviews with both domestic and international contractors, the

following have been identified as key constraints:

� Design, preconstruction issues (delays in site handover), timely payments and other project

implementation issues

� Poor governance, corruption, lack of decision-making

� Non-adherence to the dispute resolution mechanism prescribed in the contract

Foreign contractors also perceive cultural insensitivity to timeliness, quality and cost, lack of

innovative approaches and laxity in contract enforcement as major entry barriers.

Road agencies cited as key issues the formation of so-called paper joint ventures to pre-qualify

for contracts, poor quality of surveys and designs, frequent substitution of key personnel on site,

and poor resource planning by contractors.

Ways of Earning.

y Selling road.

y Through toll booth.

y Selling space for advertisements

y Selling area to big companies. (Circles)

y Dedicated food joints, petrol stations.

Documents

GMQ Marketing report