GUIDED BY:

MR. RAKESH PRASAD

MR. SHASHI MALHOTRA

SUBMITTED BY-

VIJAY KUMAR

INDIAN INSTITUTE OF PLANNING

AND MANAGEMENT

THE MARKET STUDY ON ERW PIPES IN PUNJAB MARKET

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.

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

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.

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.

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.

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.

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.

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

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

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

(Black)

½” TO 14” 15MM TO 355.6

MM

ERW

GALVALIZED PIPE

(GI)

½” TO 14” 15MM TO 355.6

MM

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

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

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

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.

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.

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

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.

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.

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

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.

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.

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

approx.

1750

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

approx.

1750

50700

Excise duty @ 14.42% 7310

58010

VAT 4% 2320

TOTAL COST 60330

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.

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.

25

COMPETITORS ANALYSIS

COMPANY JINDAL

PIPES LTD.

APOLLO

PIPES

LTD.

JINDAL

HISAR

SURYA

PIPES LTD.

TATA

STEEL

LTD.

SIZE 1/2 ” – 14 ” 1/2 ” – 12 ” 1/2 ” – 12 ” 1/2 ” – 16 ” 1/2 ” – 14 ”

OD 15 – 355.6

mm

15 – 300

mm

15 – 300

mm

15 – 400 mm 15 – 355.6

mm

PLANTS Gaziabad

(UP),

Nagothane

(Maharasthra)

Karnataka,

Madhya

Pradesh

Hisar Bahadurgarh,

Bhuj,

Malanpur

Jamshedpur

LOGISTICS Gurgaon

( corporate

tower)

UP,

Haryana,

Gujrat,

Rajasthan,

AP,

Maharasthra,

Uttranchal.

Mandi

Gobindgarh

(Branch

Office,

company

dipot)

Bahadurgarh,

Gawalior,

Malanpur,

Bhuj,

Karnataka,

API - NCR

Kolkata

(marketing

headquarters),

Delhi, Jaipur,

Punjab, UP,

Dehradun,

Varansi

(channel

partners)

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

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.

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.

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.

30

LIST OF DISTRIBUTORS IN PUNJAB

NAME OF

DISTRIBUTOR

CONTACT ADDRESS RESPONSE

1. ASHOKA SALES

CORPORATION.

Shakti Garg : 9888910670

Ashok Garg : 9888910674

Add: Opp. Dr. Mela Ram

Hospital ,Amrik Singh Road,

Bathinda.

Ph: 2238090, 2252488

e-mail:

ashokasales4.corp@gmail.com

One of the biggest

retailer in area.

Already dealing with

jindal hisar and

TATA.

Interested in selling

JPL pipes.

2. KASTURI LAL

AMRIT LAL

Vishvas Bansal: 9915871695

9872016550 RK

9815841368 AK

Add: Sirki Bazar, Bathinda

(Pb)

Authorized distrib.

Of jindal hisar.

Also deals in TATA,

prakash surya.

Deals with PVC

pipes of JPL.

3. BANT RAM

AMRIT LAL

Rajinder Garg: 9814200425

Ajay Garg: 9814300947

Add: Amrik Singh Road,

bathinda

Authorized distrib.

Of jindal hisar.

Earlier was dealing

with surya and

ravindra.

Deals in round,

hollow and sectional

pipes.

4. PUNJAB TANTA

TUBEWELL

BORING CO.

Tarun Bhasker: 9815155574

Add: Chowk Karimpura,

Ludhiana

Authorized stockiest

of TATA.

Well known and

works in a wide

territory in jalandhar

and Ludhiana.

5. BIG SALES

CORPORATION

9872078806

Add: 223, Hide Market,

Amritsar,

Ph: 0183-2551420

Well known name in

Amritsar pipe

market.

Currently dealing

with Ravindra due to

its low prices.

6. DHIAN SINGH

AND SONS

9815556710, 9463724572

Add: Chowk Mahan Singh

Gate, Hotel K.D. Plaza

Complex, Amritsar. Ph:

Deals in whole sale.

More influenced

with PVC but

planning to start

31

01832552124 selling ERW pipes.

7. J. K.

ENTERPRISES

Sansagya Mahajan:

9888520786

Add: Kot Atma Singh Road,

Amritsar,

Ph: 01832541554

Fax: 01835006120

Well known and a

strong presence in

the market.

Dealing with

ravindra and surya.

A must approached

client for JPL.

8. MANGAL SINGH

GURMUKH SINGH

M: 9815629010, 9877598556

Add: Chowk Panj Peer,

jalandhar city.

Local retailer and

stockiest.

Can be approached.

9. GOLDEN PIPE

AND SANITARY

STORE

Harjinder Singh: 9988426520

Manjinder Singh: 9888537392

Add: 2 Mahan Singh Gate,

Amritsar

Local retailer.

Deals in PVC and

GI.

Well made

showroom in the

middle of market.

10. BEDI SALES

CORPORATION

(M): 99145I9762

Add: Chowk Bhagat singh,

jalandhar city - 144001

Local retailer and

stockist .

Seems to b a good

client to be

approached.

11. MODERN

BORING AND

SANITARY SHOP

Ashwani kumar

Add: Netaji Nagar, Saleem

Tabri, Ludhiana

Ph: 9417043436, 9872795962

Local retailer and

government

contractor.

12. AMAR SINGH

JOSUN AND SONS

Jatinder josun: 9915399177

Paramjit josun: 9814034259

Add: Chowk Panj Peer,

Jalandhar city. Ph: 2457923

Authorized dealer of

Ravindra.

Well known name in

the market.

Should be

approached.

13. BABU RAM

MAINI AND SONS

Sudhir Maini: 9814623731

Add: Maini Mansion, Opp.

Jagraon Bridge, G.T. Road,

Ludhiana- 141008

Local dealer of pump

sets.

He wants to deal in

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.

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.

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.

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.

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.

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.

37

CONTACTS

Mr. Rakesh Prasad

General Manager

(Business Development & Communications)

Tel. No. 91-9910849877

E-mail: rprasad@jindalpipe.com

Mr. Shashi Malhotra

Sr. Executive

(Market Development)

Tel. No. 91-9999598533

E-mail: shashi@jindalpipe.com

Corporate Office: Jindal Corporate Centre

Plot No.30, Institutional Sector-44,

Gurgaon –122002 (Haryana)

Tel. No.91-124-2574325, 4624000

Fax No.91-124-2574327\

Factory Address: 35 kms. Delhi-Hapur Road,

P.O. Jindal Nagar, Ghaziabad-201302, UP

Ph: 91-120-2677601-605

Website: www.jindal.com

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

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?

________________________________________________________________

____________________

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

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