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Internship report jindal pipes ltd.
1. GUIDED BY:
MR. RAKESH PRASAD
MR. SHASHI MALHOTRA
THE MARKET STUDY ON ERW
PIPES IN PUNJAB MARKET
SUBMITTED BY-
VIJAY KUMAR
INDIAN INSTITUTE OF PLANNING
AND MANAGEMENT
2. ACKNOWLEDGEMENT
This project was an insightful experience of my internship at Jindal Pipes
Limited. I would like to thank Mr. Rakesh Prasad and Mr. Shashi Malhotra
for not only giving me the opportunity to work on this project, but also provided
me with sound guidance and the necessary facilities to carry out the project. I
thank them for giving me numerous assignments beyond my project and expose
me to the entire gamut of activities and made me to learn more beyond my
project.
2
3. CONTENTS
CONTENTS PAGE NO.
Executive summary 4
Introduction 6
Research Objective 8
Body of the report 9
Scope of the study and Research Methodology 26
Findings 32
SWOT ANALYSIS 33
Recommendations 35
Contacts 37
Annexure 38
Bibliography 41
3
4. EXECUTIVE SUMMARY
In today‟s world, the D .P. Jindal Group has a commendable presence in India
among the leading industrial houses. Since 1970, Jindal Pipes Limited (JPL) has
epitomized itself as a pioneer in product innovation and technological
upgradation. The company now commands an enviable position of having
India‟s one of the best ERW manufacturing plants, production of pipes range
from 15mm NB to 350mm NB and 2 mm to 9.5 mm in wall thickness.
Jindal pipe has been constantly keeping pace with the need based
supply of ERW as well as Boiler Tubes & Pipes to the core developmental
sectors in the country like Agriculture, Oil Refinery, Public Health, Housing,
Irrigation, Engineering, Fire Fighting, Tubular poles, Structural, etc.
D.P.Jindal Group is constantly on the lookout for advanced
technology assimilation for product development and innovation. Product
process optimization, marketing efficiency and benchmarking itself with world
class quality products and customer service have made the group highly
competitive, reliable and efficient.
The main objective of the research done here on the behalf of JPL is:
“ TO STUDY THE MARKET OF ERW PIPES IN PUNJAB ”
The sub-objectives related to the objectives are:
To find out the key customer requirements and expectations of GI pipes.
To find out the different sizes which are more in demand in Punjab
market.
To find out the constraints which are faced by the JPL in way of
increasing market shares.
To find out that what are the attributes which customers prefer more
while purchasing commercial pipes.
To find out the closest competitors of JPL in Punjab.
4
5. The important facts which we have finally got are :
Jindal is mostly preferred in the market because of its superior quality and
brand name.
Durability of pipes, leak proof pipes , authenticity, uniform thickness and
rust free pipes are the key customer requirements and expectations.
Besides local competitors Jindal hisar and Ravindra are the strong
competitors of JPL.
Steel quality, weld quality, galvanizing quality and the surface finishing
are the most important attributes which are checked by the customers
before buying the GI pipes.
The company lacks a company depot (holding point) unlike its major
competitor Jindal hisar, where they can stock the material to meet the
local demand. JPL is required to build some company dipot and branch
offices from where material can be provided quickly to the distributors.
5
6. INTRODUCTION
D.P. Jindal Group is the largest ERW (Black & G.I.) Pipes and Tubes
manufacturer in India and the only manufacturer with three strategic
manufacturing locations covering the Northern, Southern and Western parts of
India. Our brand name „Jindal Star‟ has revolutionized the modern steel
industry worldwide. Our mills are BIS; API and ISO certified and manufacture
the complete range of Black and Galvanized ERW pipes and tubes for all
sectors including Plumbing, Structural, Hydrocarbons, Oil and Gas, Boilers,
Railways etc. Our elite clientele includes customers like ONGC, IOCL, OIL,
HPCL, BPCL, Reliance Industries, L & T, BHEL, NTPC, GAIL (India),
Hindalco, Indrapastha Gas, and Gujarat Gas , DMRC, DLF, Unitech , besides
clients based in US, Middle East, Far East and other Asian countries.
PURPOSE OF THE REPORT
JPL is looking for some strong dealers who are having a good market
presence and can be approached by the company to become the
authorized distributors of JPL in Punjab market. The project includes the
field research to understand the market scenario in Punjab. The survey
will lead the company to have a detailed analysis of competitors strategy
and they can plan to have an edge over competitors.
The purpose of the report is to analyze the market expansion activity
which company is following.
6
7. CONTENT
The Company is in expansion mode and looking for potential dealers in
the various districts of Punjab. The Market Expansion step is that period
when a company assesses current markets, identifies untapped markets,
and seeks opportunities for revenue growth through new market
opportunities. The market expansion step will result in estimates for
delivering new capabilities to current markets, and potential new markets
for existing products. These estimates include alternative industries and
geographic areas.
Market Expanison also identifies alternative technology, additional uses
for products, determines any changing market conditions, and measures
relative costs for diversifying into targeted markets
All dealers, distributors, retailers dealing with steel pipes ( GI pipes )
were interviewed.
The main purpose behind the survey is to understand that company needs
to put up an intensive and aggressive marketing approach by penetrating
the domestic markets in Punjab.
7
8. RESEARCH OBJECTIVE
To find out the potential dealers in Punjab who are having a good market
presence and can be approached by the company to expand its market.
To find out the areas of satisfactions and dissatisfactions of Jindal Pipes
Limited.
To find out the strength and weaknesses of JPL in the steel pipe industry.
To find out the factors that affects the demand for steel pipes.
To find out the major players who are dealing in steel pipes in Punjab
market.
To analyze data and recommendations so that demand for JPL‟s product
can be increased.
8
9. BODY OF THE REPORT
JINDAL PIPES LTD - PROFILE
Brief History and Present Business of the Company
Jindal Pipes Ltd.(JPL), the flagship company of Jindal Group headed now by
Sh. D.P. Jindal, was originally incorporated as Jindal Pipes Pvt. Ltd. on May 7,
1970 . It was changed to Jindal Pipes Ltd. with effect from April 22, 1981. It is
now one of the India‟s best and largest manufacturer of ERW, black and
galvanized steel pipes & tubes in different sizes and thickness with outer
diameter ranging from 1/2” to 14” as per specifications of ISI, API and BIS
which confirms to the various international standards. It is presently having an
installed capacity of 250000 TPA for manufacturing of ERW steel pipes &
tubes.
JPL, a recipient of „Regional Special Shield‟ for export performance
during the year 1977-78 and regularly from 1984-88 and was awarded the
„Certificate for Export Excellence in the year 1990-91‟ by the Export
Engineering Promotion Council. JPL with its strict adherence to the policy for
quality management and stringent control over procurement of raw materials,
production process has resulted in Certification of ISO 9001-2000 by BVQI. All
manufacturing facilities of JPL are both an API and ISO certified and
authorized by API to use the prestigious API monogram on all its products.
Location
The company‟s plant is strategically located on National Highway no. 24, about
45 kms. from Delhi, at Jindal Nagar, Ghaziabad (U.P.).
Financial position and working results
9
10. The company has touched the production figure of 145,951 TPA and the gross
turnover is Rs 710 crores in the financial year 2008-2009. The net worth is
approx. Rs. 248 crores.
Present Status
JPL is regularly executing massive orders for pipes and tubes to meet its
customers‟ requirement. The company‟s customers‟ list includes the big
industrial giants like Oil and Natural Gas Commission Ltd., Oil India Ltd,
Indian Oil Corpn. Ltd, Hindustan Petroleum Corporation Ltd., Bharat Petroleum
Corporation Ltd., Bharat Heavy Electricals Ltd, National Thermal Power
Corporation Ltd., Indian Railways, Hindustan Shipyard Ltd. and other
companies in the Oil and Gas Sector. In addition, the company also supplies GI
pipes to various other Central and State Governments‟ organizations. The major
application areas are Agriculture, Irrigation, Engineering, Water & Sanitation
pipes, Gas Mains, Power & Electrification poles & structural, Rolls for paper &
textile mills, Refineries, Steel tubular furniture, Air Services, Oil & Gas
Transportations etc.
Marketing
JPL‟s products are well accepted in the market and it has created a niche
for itself. Its products enjoy a brand premium. The company‟s sales mix
includes both the actual users and dealers. However, the emphasis is more on
dealers‟ network since it caters to the major customer segment. Therefore, JPL
is currently emphasizing on corporate image building exercise with massive
publicity budgets. The companies is using both push and pull strategies by
participating in tenders floated by various agencies, tendering offers against
enquiries, entertaining unsolicited enquiries and making marketing
representations along with regional branches and strong dealers‟ network to
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11. increase its market share.In addition to domestic sales, the company is also
having long term planning to export its product.
PRODUCT RANGE
ERW LINE PIPE ½” TO 14” 15MM TO 355.6
(Black) MM
ERW ½” TO 14” 15MM TO 355.6
GALVALIZED PIPE MM
(GI)
Future Prospects
The opening of the Indian Economy has triggered off to a large scale growth in
the infrastructure sector and JPL has identified its specific application areas in
the field of Agriculture, Water and Sanitary pipes, Gas Mains, Penstocks, Power
and electrification, Tubular poles & Structure, Rolls for paper & textile mills,
Refineries, Drill pipes for oil wells, Steel tubular furniture, Air services etc.
JPL is anticipating and visualizing substantial demand for ERW line
pipes in the near future, as major Oil, Gas, Power and Fertilizer companies are
planning to go in for various cross-country line pipes. Their requirement is
going to be for API 5L Gr. A to Gr. 70 pipes. JPL have already taken steps to
broaden and improve the production and testing facilities to cater to this huge
demand by installing sophisticated equipments as per the requirement.
With our brand equity, thrust on higher Dia specialty pipes, value
addition and bulk production gives us the distinctive advantage to combat the
competition effectively and carve-a-niche for ourselves by having a market
share of 10% in the country. For a detailed insight into our group‟s activities
and manufacturing capabilities you are requested to kindly visit our website
www.jindal.com
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12. FEATURES AND THE USAGE OF THE PRODUCT
ERW pipes means Electric Resistance Welded Pipes. ERW steel pipes and
tubes are used in various engineering purposes, fencing, scaffolding, line pipes
etc. These are available in various qualities, wall thicknesses, and diameters of
the finished pipes.
While manufacturing ERW steel pipes, only high-quality, continuous-cast, fully
killed, control-rolled, fine-grain, low-carbon steel is used. High performance
ERW steel pipes and tubing possess high strength corrosion resistance, high
deformability, high strength and high toughness. We are among the leading
manufacturers and suppliers of ERW pipes and tubes in India. We are also one
of the largest exporters of ERW pipes and tubes in India.
Based on the customers requirements we can manufacture ERW pipes and tubes
of different size and shape. We have a very large production capacity of erw
pipes and tubes. ERW pipe is available in lengths from single random to 120
feet depending on mill capability.ERW pipe is available with square ends or
beveled for welding, threaded and coupled and victaulic grooved. Surface finish
are available in black or bare, or with protective coatings.
SALIENT FEATURES
High strength
Corrosion resistance
Durable
Dimensional accuracy
Fine finish
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13. OTHER APPLICATION AREAS
Water pipelines
Agriculture and irrigation (water mains, sewage system, industrial water
lines, plant piping, deep tube- well and caring pipes)
Gas pipelines (pipelines and natural gas)
LPG and other non-toxic gas
The SW is meant for shallow water applications in a canal, natural stream,
culvert or pipe.
STEEL PIPES AND TUBES PROPERTIES
Following are the major properties of Steel Pipes & Tubes:
» Speedy Installation
» Nil maintenance
» Easy Fitting
» Following are the major properties of Steel Pipe and Tubes:
» Rust free
» Any size, color and shape makes it flexible in nature
» Durable in nature
13
14. MANUFACTURING PROCESS
The process utilizes the latest technology and
modern equipments for producing ERW
Pipes.
1. Slit preparations: HR Coils are slitted to
predetermined widths for each size of pipe
and thickness. Slitted coil is uncoiled at the
entry of mill and the ends are sheared and
welded one after another to make it single
endless strip.
2. Forming: Slitted coils are initially formed
into U shape and then into a cylindrical shape
with open edges using a series of forming
rolls.
3. Welding: The open edges are heated to the
required temperature through high frequency
induction current and press welded by forge
rolls making perfect and strong butt weld
without filler meterials.
4. Debeading: Weld flash on top is trimmed out
through carbide tools.
5. Seam Annealing: Whenever required,
welding portion and heat affected zone is put
to normalizing with medium frequency
normalize and then cooled down in air cooling
bed.
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15. 6. Sizing & Cutting: After water quenching,
slight reduction is applied to pipes with
sizing rolls to give them desired accurate
outside diameter. Pipes are cut to required
lengths by flying cut off disc/saw cutter.
7. Facing and Bevelling: The pipe ends are
faced and bevelled by the end facer. All the
processes are continuous with auto
arrangements. These plain ended tubes go for
further processing as per the customer need
like galvanizing, threading, black varnishing
etc.
8. Packing: Finishing pipes are bundled in
desired number of pieces as per customer's
requirement and packed properly to ensure
freshness till delivery.
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16. QUALITY CREDENTIALS
The Jindal Pipes Ltd. has been awarded the prestigious ISO 9001 certificate by
British Standards Institution (BIS) certifying the quality management system of
the company.
Jindal Pipes ltd. also has an accreditation of American Petroleum Institute (API)
Q1 system and has been awarded ISO 9001 certifications on quality assurance.
JPL has in-house laboratory to undertake various testing and inspection during
various stages of manufacturing.
INSPECTION AGENCIES
Tata Projects Limited (TPL)
NTPC
Engineers India limited (EIL)
BVIS
QSS
HMPL
Directorate General of Supplies and disposals (DGS&D)
INTERTACT
ICS
RITES
16
17. THEORETICAL PERSPECTIVE
MARKETING MIX
The main objective of the marketing programming is to put together a set of
marketing strategies that will achieve the goals of the firms. This means
assembling an ideal mix of products, prices, personal selling, promotion and
research and distribution networks for a particular company. Finding the best
combination of marketing strategies is not easy because of nonlinear
relationship between sales and marketing mix variables, interaction among the
factors, the largely unknown character of competitive responses and the some
time fickle nature of customers. The process is also complicated by changes in
general business conditions and modifications in the legal environments made
by regularity agencies and the courts. If these conditions are not bad enough, the
manager is asked to find a marketing mix that generates adequate profits in the
short run and contributes to long run goals of the firm such as growth and
stability.
The marketing mix refers to amount and kinds of marketing variables the firm is
using a particular time and includes price, advertisements, costs and distribution
expenditures. This project evaluates the concepts of marketing mix and its main
constituent elements and addresses the problem inherent in uniting these unique
and distinctive combinations.
In most of the firms marketing mix decisions are led by the marketing
department but another functional area play a key role. Research and
development management are significantly involved in product mix
innovations. Finance, production and other department influence pricing and
distribution decisions. Hence management of the marketing mix is unlikely to
be effective without marketing orientation forming a common culture
throughout the business.
17
18. Marketing management must decide what level of marketing expenditures is
necessary to achieve its marketing objectives. Companies usually establish their
marketing budget at some conventional percentage of the sales goal. Companies
entering a market try to learn what the marketing budget to sales ratio in the
hope of achieving a higher market share. Ultimately the company should
analyze the marketing work required to attain a given sales volume or market
share and then cost out this work. The result is the required marketing budget.
The company also has to decide how to divide the total marketing budget
among the various tools in the marketing mix. Marketing mix is one of the key
concepts in modern marketing theory. According to Philip kotler , “ marketing
mix is set of marketing tools that the firm uses to pursue its marketing
objectives is the target market”.
McCarthy popularizes a four factor classification of these tools called the 4P’s –
Product, Price, Place and Promotion. The elements of marketing mix are
called as the firm‟s controllable variables. These are activities that organization
plans, organize and control. Not all marketing mix variables can be adjusted in
the short run. They vary in their adjustability. Typically firms can change its
price, sales force size and advertising expenditures in the short run.
PRODUCT MIX
Product mix (also called product assortment) is the set of all product lines and
items that a particular seller offer for sale to buyers. A company‟s product mix
refers to how many different product lines company carries.
The length of product mix refers to the total no. of items in the product mix. The
depth of product mix refers to how many variants are offered in the line.
18
19. A product line is a group of product that are closely related because they
perform a similar function, are sold to the some customer groups are marketed
through the same channels or make up a particular price range.
JPL products two grades pipe/tube at Ghaziabad plant. The plant uses modern
technology to produce pipes.
JINDAL PIPES LIMITED, manufacture high quality MS Black and galvanized
pipes/tubes in the range of 15mm to 250mm as per BIS standard.
The company is fully equipped with modern manufacturing machineries, Mills,
Welding plants and Galvanized plants. It has full in house maintenance work
shop and testing equipments to produce the best quality steel pipes beside other
infrastructural facilities.
JPL produces two types of steel pipes:-
Black pipes:- after cutting HR coil pieces into rolling pipes and after welding,
threading, and socketing JPL get Black pipes.
The manufacturing process of black pipes are:
H. R. Coil
Rolling Welding
Threading
Socketing
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20. Black Pipes
Galvanised pipe:- galvanized pipe is the some addition to Black pipe. It make
use of one more process i.e. galvanization.
Manufacturing process of Galvanised pipe is:-
H. R. Coil
Rolling Welding
Galvanisation
Threading + Socketing
JPL, never compromise on quality front under the most adverse market
conditions. Only SAIL, material in Steel and high Grade Zinc from
HINDUSTAN ZINC LIMITED are being used to cater to high quality
Pipes/Tubes demand in market. The pipes are engraved with ISI Mark and trade
mark “JINDAL STAR” .Each Pipe/Tubes manufactures by JINDAL PIPES
LIMITED are testimonies to their commitment to quality and service.
Steel pipes are mainly used in :
Building
Industries
Agriculture.
20
21. JPL pipes basically service the needs of agriculture and industries for
conveyance of water. These pipes can also be used in conveyance of oil, gas,
etc. in the construction sector. These pipes are popular for use as scaffolding
and tabular structure.
PLACE MIX
Place, another key marketing mix tools, stands for the various activities the
company undertake to make the product easily available to target customers. It
includes various middle man and marketing facilitators. The company the
various types of retailers, whole sellers and physical distribution firm.
PRICING AND MARGIN
The pricing of the product and the profit margins involved in each step are
explained with the help of an example.
The Jindal Company‟s cost of production of steel pipes is say up to Rs. 46,500
per tone for black pipe.
The company sets a margin of 5%, for itself which makes up the price to 49,000
per tone (approximately)
The company delivers the steel pipes to dealers or regional offices by a contract
with the transportation company, where in they fix the transportation charges to
various destinations over a period of one year. These transportation charges are
added to the company‟s selling price. In case of Kolkata the transportation price
is Rs. 1,750 per tone, which makes up the cost to Rs. 50700.
The company then bills the goods in the name of its Kolkata branch office and
gives an discount of 2 % on Rs. 50700. The company has to pay excise duty to
an extent of 14.42% on Rs. 50700 for transporting goods to Kolkata.
21
22. The dealers then according to their requirement purchase the goods from the
Kolkata branch office, and in case they are able to make the payment for
purchases within a week time then only they are eligible for 2 % cash discount
on Rs. 50700.
Pricing with cash Discount to dealer:
Cost of production of steel pipes 46500
Company margin approx(5%) 2500
Transportation cost to Hyderabad 1750
approx.
50700
Cash discount 2% 1014
49686
Excise duty @ 14.42% 7164
56850
VAT 4% 2274
TOTAL COST 59124
Pricing without cash Discount to dealer:
Cost of production of steel pipes 46500
Company margin approx(5%) 2500
Transportation cost to Hyderabad 1750
approx.
50700
Excise duty @ 14.42% 7310
58010
VAT 4% 2320
TOTAL COST 60330
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23. The dealer after purchasing the steel pipes from the branch office in Kolkata at
the above mentioned rates then adds a margin of 2 % and then sales the
products to its customers or retailers.
The company also provides the dealers a turn over discount where in if the
dealer lifts a quantity of more then hundred tones in a month then he gets a
credit note for Rs.15000. (Rs. 150 per ton as TOD), incase the dealer purchases
more then two hundred ton then he gets a TOD of Rs.200 per ton and incase of
300 tons and above he gets a TOD of Rs.350 per ton
PROMOTION
The company on its part does promotional activity through advertisements. It
also encourages its dealers to do promotion and provides financial support to
those expenditures. Promotional activity normally carried out are, issue of pens,
pads dairies and putting up hoardings. Also they share costs of any local or
regional advertisement costs.
The marketing communication mix (also called promotion mix) consists of four
major tools.
Advertising.
Sale promotion.
Public relation.
Personal selling.
Advertising
JPL spends negligible amount in add.JPL is not interested in advertisements
through electronic media as TV, radio etc. JIL makes advertising through:
Hoardings.
Kiosks.
Press media.
23
24. Sale promotion
To promote sale JPL give cash discount. Charity and donation to various
institutions is also given by JPL.
Public relation
JPL Empire enjoys good reputation among not only at national level but at
international level too. JPL make charity and donation for social welfare.
Personal selling
Company does not experience personal selling.JPL has doubled its production
and sale during last five years. It has achieved this feet by winning a higher
share in a very competitive market, which is also flooded with inferior and
duplicate quality pipes.
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26. SCOPE OF THE STUDY
The study is confined to 44 outlets which consist of distributors , dealers
and retailers in Punjab market.
The survey which I conducted in Punjab 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 dealers, distributors, retailers dealing with steel pipes ( GI pipes )
were interviewed.
The information about competitors strength was gathered from all the
dealers and retailers which was fruitful in analyzing the demand.
The following five representative market areas were studied which
covered 44 outlets ….
1. Amritsar
2. Ludhiana
3. Jalandhar
4. Patiala
5. Bathinda
26
27. RESEARCH METHOD
RESEARCH DESIGN
The research is of exploratory type. Since, JPL is in expansion mode, the
research tried to find out the potential distributors and retailers of steel pipes
who can help the JPL to expand its market in Punjab.
SECONDARY DATA COLLECTION
Secondary data was mainly collected through the internet. Data has been
extracted from the official website of Jindal Pipes Limited (www.jindal.com)
PRIMARY DATA COLLECTION
Primary data was collected from the market place by interacting with the
distributors, dealers, retailers through the survey method. The questionnaire
used in the survey method has both structured as well as unstructured questions.
Data collection was done through questionnaire.
Presenting of questionnaire was done and the required changes were
made before the actual survey.
EXPLORATORY RESEARCH:
It is that type of research design the primary objective of which is to provide
insights into and the comprehension of the problem situation confronting the
researcher.
This was done by having a discussion with the project guide of Jindal Pipes
limited.
27
28. DESCRIPTIVE RESEARCH:
It is a type of conclusive research that has its major objective the description of
something usually market is following .
This was done by carrying steps:
A list of various dealers was prepared who seems to have a potential to
stock more , have a good market presence and can be approached by the
company to expand its market.
The strength and weaknesses of JPL was assessed by interacting with the
retailers.
SAMPLE ELEMENT
It is the object that possess the information sought by the researcher and about
which inferences are to be made.
In my project the sample element are the various retailers who are
certified Jindal Pipes dealers, non-certified Jindal dealers as well as non
Jindal dealers
SAMPLE EXTENT
Extent refers to the geographical boundaries under consideration
In this project the sample extent was the five major areas of Punjab which
includes Amritsar, Jalandhar, Ludhiana, Patiala and Bathinda.
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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29. LIMITATIONS OF THE STUDY
All the dealers and industrial user of Punjab were not covered because of
constraints of time.
The study was restricted to certain specific areas of Punjab which may
not seem to present the general picture of the product.
Respondent 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.
29
30. LIST OF DISTRIBUTORS IN PUNJAB
NAME OF CONTACT ADDRESS RESPONSE
DISTRIBUTOR
1. ASHOKA SALES Shakti Garg : 9888910670 One of the biggest
CORPORATION. Ashok Garg : 9888910674 retailer in area.
Add: Opp. Dr. Mela Ram Already dealing with
Hospital ,Amrik Singh Road, jindal hisar and
Bathinda. TATA.
Ph: 2238090, 2252488 Interested in selling
e-mail: JPL pipes.
ashokasales4.corp@gmail.com
2. KASTURI LAL Vishvas Bansal: 9915871695 Authorized distrib.
AMRIT LAL 9872016550 RK Of jindal hisar.
9815841368 AK Also deals in TATA,
Add: Sirki Bazar, Bathinda prakash surya.
(Pb) Deals with PVC
pipes of JPL.
3. BANT RAM Rajinder Garg: 9814200425 Authorized distrib.
AMRIT LAL Ajay Garg: 9814300947 Of jindal hisar.
Add: Amrik Singh Road, Earlier was dealing
bathinda with surya and
ravindra.
Deals in round,
hollow and sectional
pipes.
4. PUNJAB TANTA Tarun Bhasker: 9815155574 Authorized stockiest
TUBEWELL Add: Chowk Karimpura, of TATA.
BORING CO. Ludhiana Well known and
works in a wide
territory in jalandhar
and Ludhiana.
5. BIG SALES 9872078806 Well known name in
CORPORATION Add: 223, Hide Market, Amritsar pipe
Amritsar, market.
Ph: 0183-2551420 Currently dealing
with Ravindra due to
its low prices.
6. DHIAN SINGH 9815556710, 9463724572 Deals in whole sale.
AND SONS Add: Chowk Mahan Singh More influenced
Gate, Hotel K.D. Plaza with PVC but
Complex, Amritsar. Ph: planning to start
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31. 01832552124 selling ERW pipes.
7. J. K. Sansagya Mahajan: Well known and a
ENTERPRISES 9888520786 strong presence in
Add: Kot Atma Singh Road, the market.
Amritsar, Dealing with
Ph: 01832541554 ravindra and surya.
Fax: 01835006120 A must approached
client for JPL.
8. MANGAL SINGH M: 9815629010, 9877598556 Local retailer and
GURMUKH SINGH Add: Chowk Panj Peer, stockiest.
jalandhar city. Can be approached.
9. GOLDEN PIPE Harjinder Singh: 9988426520 Local retailer.
AND SANITARY Manjinder Singh: 9888537392 Deals in PVC and
STORE Add: 2 Mahan Singh Gate, GI.
Amritsar Well made
showroom in the
middle of market.
10. BEDI SALES (M): 99145I9762 Local retailer and
CORPORATION Add: Chowk Bhagat singh, stockist .
jalandhar city - 144001 Seems to b a good
client to be
approached.
11. MODERN Ashwani kumar Local retailer and
BORING AND Add: Netaji Nagar, Saleem government
SANITARY SHOP Tabri, Ludhiana contractor.
Ph: 9417043436, 9872795962
12. AMAR SINGH Jatinder josun: 9915399177 Authorized dealer of
JOSUN AND SONS Paramjit josun: 9814034259 Ravindra.
Add: Chowk Panj Peer, Well known name in
Jalandhar city. Ph: 2457923 the market.
Should be
approached.
13. BABU RAM Sudhir Maini: 9814623731 Local dealer of pump
MAINI AND SONS Add: Maini Mansion, Opp. sets.
Jagraon Bridge, G.T. Road, He wants to deal in
Ludhiana- 141008 pipes and also having
some requirement.
The above mentioned distributors have a good market presence and are
approachable for the market expansion strategy of JPL.
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32. FINDINGS
The proper means of communication and an effective advertisement can
tend to increase in the sale of JINDAL pipes.
Many customers switch over from Jindal pipes to other pipes because of
the unavailability of required sizes at the time of requirement.
Since quality of Jindal pipes is excellent, many retailers as well as end
users have demanded pipe fittings should also be manufactured by the
company.
Jindal Hisar and Ravindra are the main competitors of JPL in Punjab
market.
All the distributors and retailers accept the overall quality of Jindal pipe is
the excellent.
PVC pipes are swallowing the market of steel pipes because of its low
prices.
Jindal pipes Ltd. can increase the market share by increasing the number
of distributors in Punjab market.
Bend ability, thread quality, weld quality and the zinc coating of Jindal
pipes are the excellent.
WHY JINDAL PIPES LTD. ARE MORE POPULAR?
Prompt Deliveries
Competitive prices
High frequency electric resistance welding process, which make these pipes
more dependable in quality.
Available in every range.
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33. SWOT ANALYSIS
STRENGTHS
1. Jindal 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.
2. Jindal 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.
3.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.
4. Jindal pipes give a handsome margin to the retailers which encourage them to
stock more.
5. Its availability and service is quiet good.
WEAKNESSES
1. There is no fixed distributor of jindal pipes 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.
2. The brand image of jindal pipes is weaker with respect to the top players.
OPPORTUNITIES
1. The biggest opportunity for Jindal pipes is in government supplies. With
rapid industrialization of the state, Jindal pipes has immense potential in future.
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34. 2. Jindal pipes can well exploit the sense of dissatisfaction prevalent among the
retailers for the tough players to turn the tide in favour.
THREATS
1. The biggest threat for Jindal 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.
2. The ad-campaigns, innovation, brand image and more transparent distribution
network of other pipe companies poses a threat to jindal pipes in future. Quality
of pipes is a major threat to it.
3. The upcoming of PVC pipes which are in great demand now a days and is
cheap as compared to steel pipes.
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35. RECOMMENDATIONS
Enhance brand visibility through retail identity program.
Strengthening retail network in identified territories.
Marketing personnel should interact with the retailers as well as
customers on regular basis.
Need for additional range of product for catering to new
markets/customers.
Increase in sales volume possible only with superior availability.
Like other competitors , JPL should also conduct product promotional
program regularly.
By increasing the product portfolio and improving the order fulfillment
time, Jindal pipes can increase its market share in Punjab market.
The proper means of communication and an effective advertisement can
tend to increase in the sale of Jindal pipes.
Punjab is an open and growth – oriented market but JPL is lacking in
terms of marketing and advertising comparing to the major competitors
like Jindal Hisar , surya pipes ltd. and ravindra steel . Co. needs to
approach the major dealers who are dealing in GI pipes and who can
support in the market expansion for JPL.
JPL should concentrate more on selling GI pipes since demand for GI
pipes is much higher in comparison to Black pipes.
In Punjab , there is no holding point where Co. can stock their material to
meet the local demand of the market . JPL is required to build some
company dipots and branch offices from where material can be provided
to the distributors.
JPL is known by name JINDAL GAZIABAD , proper marketing is
required to make sure that people know the company by their brand name
JINDAL STAR and there should be a top of mind recall for the brand.
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36. PVC pipes has penetrated the market , to tackle this problem company
needs the support of distributors who are well known in the market and
who can make customers believe and buy the better quality steel pipes .
Company should approach the major dealers who can store (stockist) and
sell the JPL‟s product. It will reduce the delivery time.
Company needs to put up an intensive and aggressive marketing approach
by penetrating the domestic markets in Punjab.
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38. ANNEXURE
Survey form for the distributor/ dealer/ whole seller/ retailer
Respondent Details:
Name : ___________________________________
Occupation : ______________________
Place : ______________________
Contact No. : ___________________ E- mail Id:
______________________________
Signature : _____________________
1. Are you dealing in ERW pipes (M S Black and GI pipes ) ?
Yes/ No
2. According to you which company‟s steel pipes sell the most in this city?
________________________________________________________________
___________________
3. Which brand you are selling out of the below mentioned names?
- Jindal star
- Jindal Hissar
- Prakash surya
- TATA
- Apollo
- others
38
39. 4. What are the qualities which make it the most preferred one in the market?
________________________________________________________________
___________________
5. Which factors influence you the most to sell a particular brand? (You can
choose one or more than one option )
Brand Name ( )
Quality ( )
Features ( )
Reference via friends /family etc. ( )
Other reason(please
specify)____________________________________________________
_
6. What is your annual selling of ERW pipes?
- 100 – 200 MT
- 200 – 300 MT
- 300 – 500 MT
- More than 500 MT
7. What are the major sizes in demand?
________________________________________________________________
____________________
8. Do you buy material from distributors or directly from the company?
________________________________________________________________
____________________
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40. 9. Do they work on?
- Ex basis
- For basis
10. How do you come to know about the company? What sort of marketing they
have done?
________________________________________________________________
____________________
11. Are you selling JINDAL STAR? What is your annual buying?
- Yes/No
- -Annual buying
12. Would you like to sell Jindal pipes limited products ?
1. Yes ( )
2. No ( )
3. Maybe ( )
Any Suggestions / comments for the company .
________________________________________________________________
________________________________________________________________
______________________________________
Thank you for giving your time . Have a nice day
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41. BIBLIOGRAPHY
MARKETING MANAGEMENT – PHILIP KOTLER
MARKETING RESEARCH – DAVID LUCK & RONALDS RUBIN
Websites:
www.jindal.com
www.google.com
www.indiainfoline.com
www.tube.net.com
www.wikipedia.com
www.expressindia.com
Magazines:
Business India
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