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identifying market potential for flat products in bangalore region
TATA STEEL PROCESSING AND DISTRIBUTION LTD
A report submitted in partial fulfillment of the requirements of
Major Internship (Class of 2012-14)
BY
D. GURUSAI HARIKUMAR (1225112214)
MBA-CLASS OF 2012-
GIM-GITAM UNIVERSITY, VIZAG
Under the esteemed guidance of
Dr. M.S.V. Prasad
Associate Professor
GITAM Institute of Management, Visakhapatnam
2012 - 2014
DECLARATION
I hereby declare that this project work entitled “IDENTIFYING MARKET POTENTIAL
FOR FLAT PRODUCTS IN BANGALORE REGION” is my own effort done under the
guidance of our faculty guide Dr. M.S.V. PRASAD and our company guide. Mr.
TANGIRALA SRINIVAS. This report or a part of this has not been submitted for the award
of any other degree of either this university or any other university.
D. GURUSAI HARIKUMAR
Date: Dr. M.SV. Prasad
GIM GITAM University
Visakhapatnam
ACKNOWLEDGEMENTS
At the outset, I would like to thank TATA STEEL PROCESSING AND DISTRIBUTION
LTD for giving me an opportunity to do this project in this organization.
I am grateful to my company guide Mr. TANGIRALA SRINIVAS for all his guidance,
helpful hints and valuable suggestions during the course of this project.
I am deeply indebted to my faculty guide Dr. M.S.V.PRASAD for coordinating the project
work and giving me all the valuable guidance and for his constant inspiration. This project
could not have been possible without his help.
I would also like to thank all the staff members of TATA STEEL PROCESSING AND
DISTRIBUTION LTD for their constant support especially Mr. K. Sai Krishna (Project
Approver) and all the people who directly and indirectly helped me during the course of the
project.
Last but by no means the least I would like to convey my special thanks to our principal Dr.
K.SIVA RAMAKRISHNA, program coordinator Mr. LEBEN JOHNSON and GIM for
giving me the opportunity to work on this project.
D. GURUSAI HARIKUMAR
TABLE OF CONTENTS
Acknowledgements
List of Tables
List of Illustrations
Summary
CHAPTER-1 The Concept……………………………………………………..
1. Objectives and Limitations………………………………………………………….
CHAPTER-2 Research Design / Methodology…………………………………
CHAPTER-3 Industry and Company Profile…………………………………....
The history of steel making in India can be traced way back to 400 BC when the Greek emperors recruited archers from India who used steel tipped arrows. The Iron Pillar of Qutub Minar in Delhi did not rust till today which baffles the scientists. The Sun Temple in Konark is yet another marvel where for the first time in the history of civilizations, steel structures were used.
The revolution in Indian steel industry was brought by the establishment of Bengal Iron Works (BIW) at Kulti near Asansol in West Bengal. BIW was established by Joshua Marshal Heath in 1830. It initially produced 40 tons of pig iron per week. Later the volume of production increased to 40,000 tons in 1900 and it was acquired by Indian Iron and Steel Company (IISCO) in 1936.
The steel industry got modernized with the establishment of Tata Iron and Steel Company (TISCO) on August 27, 1907 with a production unit in Jamshedpur in Jharkhand which produced 120,000 tons of pig iron in a year. The Indian Steel industry grew to further heights with a policy review in 1948 in the parliament which allowed the establishment of heavy industries in India taking all the strategic industries under government control thereby accepting the concept of mixed economy.
This resulted in the establishment of public sector firms like Steel Authority of India Ltd (SAIL), Rashtriya Ispat Nigam Ltd (RINL),etc. IISCO was later merged into SAIL. Apart from public sector firms private sector firms also came up like Malavika Steel Ltd, Jindal Vijaynagar Steel Ltd, etc.
Presently, due to the wide presence of steel using manufacturing units, Tata Steel Ltd and Ryerson Tull came together to cater to the needs of these manufacturing industry players to establish a company called Tata Ryerson Ltd who established expertise in steel processing and distribution. Later Tata Ryerson Ltd became a subsidiary of Tata Steel Ltd and came to be known as Tata Steel Processing and Distribution Ltd (TSPDL). TSPDL has expertise in the production of steel sheets, plates, blanks an reinforced bars of various thicknesses and widths according to the requirements of the companies.
My project,“ Identifying market potential for value added products in Bangalore Region” was chosen in consultation with the company guide and the faculty guide to study the market potential of TSPDL in Bangalore region to find out the monthly steel requirements of manufacturing companies and their issues & problems regarding the services of TSPDL, so as to improve the business of TSPDL further.
My basic role in the company is as a sales executive and the methodology used to collect information is survey.
LIST OF TABLES
Table 1 Market Data
Table 2 Area-wise Analysis
Table 3 Segment-wise Analysis
Table 4 Sub Segment-wise Analysis
FIG 8 SUB SEGMENT-WISE ANALYSIS
CHAPTER-1 The Concept
1. Objectives and Limitations
OBJECTIVES
- To study market potential of steel- Flat Products (HR/HRPO/CR).
- To derive TSPDL’s present percentage share of sales with respect to area, product or material.
- To derive present percentage share of sales in HR.
LIMITATIONS
- The survey was limited to 66 companies.
- Some of the companies did not reveal their steel requirement information because of quality,
price and delivery issues.
- Some purchase managers didn’t give information because of their busy schedule.
- (^) Some companies maintained that the information is confidential.
CHAPTER-
RESEARCH DESIGN/METHODOLGY
RESEARCH DESIGN/METHODOLOGY
CHAPTER-3:
INDUSTRY AND COMPANY PROFILE
3.1 Steel Industry in India
3.2 Brief History of Steel Sector in India
3.3 Industrial Sectors depending on Steel Industry
3.4 Major Players of Steel Industry
3.5 About Tata Steel Processing and Distribution Ltd
3.6 Product Details
3.7 List of Customers
3.8 SWOT Analysis
INDUSTRY AND COMPANY PROFILE
3.1 Steel Industry in India:
Modern age of steel industry started in India in 1907 with the establishment of Tata Iron and Steel Company at Jamshedpur by Dorabji Tata, son of Jamshet Nusserwanji Tata. It is the first integrated private sector steel company in Asia. After independence, many public sector companies producing steel are established under the nationalization of important industries policy of the then Nehru Government, which lead to the establishment of Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Limited (RINL). These are the major public sector steel producers which control the market.
3.2 Brief History of Steel Sector in India:
The Steel Industry in India started with the establishment of Bengal Steel Works at Asansol in West Bengal in 1830s by Joshua Marshall Heath. This company later expanded and established another steel production unit in Chennai. After 1900s, Bengal Steel Works got acquired by Indian Iron and Steel Company (IISCO).
The modern era of Steel Industry in India started with the establishment of Tata Iron and Steel Company’s Jamshedpur plant in 1907 by Dorabji Tata. Tata Iron and Steel Company became the largest steel producer in 1900s despite increase in taxes by the British Government in India. TISCO with the help of Americans achieved a lot of goals like becoming largest steel producer in the entire British Empire.
In 1948, Nationalization of heavy industries and strategically important industries started. Repeated unsuccessful attempts were made to nationalize TISCO. Despite all the pressures, Tata grew as a conglomerate and expanded to other industries as well.
In 1956, some amendments were made to the Industries Act of 1951 allowing private sector players in the steel industry. This lead to the establishment of Jindal Iron and Steel Company, Jindal Vijaynagar Steel, Malvika Steel, Kalinga Steel, etc.
In 1973, Hindustan Steel Limited, earlier IISCO got nationalized to form Steel Authority of India (SAIL) with the initial capital of Rs 2000 crore.
In 1991, liberalization of Indian economy opened the doors for foreign players allowing them to construct new steel plants in India. Some of the foreign players include POSCO Steel of South Korea, Arcelor Mittal of UK, etc.
In 2006, Tata Steel Limited acquired the Anglo-Dutch steel maker Corus Steel for $7.6 billion which is larger than the value of Tata Steel itself. This acquisition made Tata Steel the world player in steel production.
These are some of the important milestones in the history of Indian steel industry.
3.3 Industrial Sectors Depending on Steel Industry:
Industrial sectors which depend on the steel industry include automobile, general engineering, infrastructure, power and white goods.
Automobile Sector:
Steel sheets, rods, blanks, plates and brackets are used in manufacturing automobile components and body. There many companies who manufacture components for OEMs like Tata Motors, Ashok Leyland, Maruti Suzuki, Hero Moto Corp, Honda Motors, TVS Motors, etc. These companies use a lot of steel in its various forms. The annual steel consumption of automobile industry in 2012 was 19 Million Tons. Some of the major players include Tata Auto Components Ltd (TACO), Sandhar Technologies, etc.
General Engineering Sector:
Steel is used in the manufacturing of industrial products, fabrication products, food processing equipments, material handling equipments, etc. Some of the important players in this sector include United Fabricators, Maini Material Movement, Buhler, Ferrum Extreme Engineering, etc.
Infrastructure:
