market potential survey for low temp. absorption refrigeration system in western region

Market Potential Survey for Refrigeration System

1

A

PROJECT REPORT ON

MARKET POTENTIAL SURVEY FOR THE LOW TEMPERATURE AMMONIA ABSORPTION REFRIGERATION

SYSTEMS FOR THERMAX IN WESTERN REGION

FOR METRIC CONSULTANCY LTD.

SUBMITTED BY DEVENDRA G. SHENDE

MBA-II

PROJECT GUIDE PROF. SMITA SOVANI

VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE- 411037.

2005-2007

Acknowledgement


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Every project has a number of persons involved in it, some directly others

indirectly. Everyone has contributed to its success; the critics who spur you into action with

renewed enthusiasm and the supporters who steadfastly encourage you all through till the end. I

would like to take this opportunity to express my gratitude for all those who provided valuable

criticism, appreciation and guidance to make this project a success.

I thank Mr. John Jacobs my Training Coordinator,THERMAX for the project, whose

inspiration, whose sharing of anecdotes to exemplify the advice he would give, helped me see

through this project swimmingly.

I thank Prof Mrs. Sohani my Project Guide for her guidance, motivation and attention.

She was very much approachable with all my doubts!

It was indeed a privilege to have done my project at METRIC CONSULTANCY LTD.

The learning experiences at at METRIC CONSULTANCY LTD are something that I would

cherish for the rest of my life. Having worked in this corporation gives me the confidence and an

outlook out of the box much needed before I take steps in the professional world.

DEVENDRA SHENDE


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Table of Contents

Sr. No.

Particulars Page No.

1 Executive Summary 1 2 Introduction to Project 3 3 Objectives Of Project 5 4 Company Profile 6 5 Product Profile 13 6 Research Methodology 16 7 Summer Training Schedule 22 8 Data Analysis 23 9 Findings 32 10 Inferences and Recommendations 34 11 Conclusion 35 12 Bibliography 35 13 Annexure-1 37 14 Annexure-2 42


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CHAPTER 1

EXECUTIVE SUMMARY

Metric Consultancy ltd. is one of the leading market research firms in India. Thermax is

the client of Metric Consultancy Ltd., have been contracted with the metric for this market

Potential Survey.This project has been carried out in order to check the market potential for the

Low Temperature Ammonia Vapor Absorption Refrigeration systems for the range of 290 to

70 0C . This product is an industrial system, which is used, in various manufacturing industrial

sectors to maintain the desired temperature. This project was successfully accomplished within the

stipulated time.

The main objective of this project was to know the market potential for the Low

Temperature Ammonia Vapor Absorption Refrigeration systems in an Industrial Market.

The study is divided in four parts. The first part containing a pilot survey for the project in

Pune region which tries to check and modify the questionnaire, observe the industrial users are

responses should match with the requirement and objectives of the project. The Second part deals

with a structured questionnaire, which tries to check market potential for Low temp. Refrigeration

systems (LTRs) and other technical details involved in the project. The third part deals with a

detailed analysis of the obtained data. The fourth & the most important part is to recommend the

suggestions to the company.

Despite having fairly large share of traditional system user segment, the advanced users are

many. The reasons can be many, but the main reason is the process requirement and technological

effectiveness. This project tries to explore the possibilities of such industrial users, which will be

prospective customers for the Thermax.


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With growing awareness amongst the industrial sector in selecting Ammonia Absorption

Systems it has become very essential to develop a product that suits the requirement of the Indian

industry. This product if developed will lead to tremendous cost savings in every way.

The data is collected, analyzed and presented in the tabular form and then graphical

representation is done for ease of understanding. On basis of interpretation of data conclusion is

made and suggestions are put forward at the end.


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CHAPTER 2

INTRODUCTION TO THE PROJECT

The economy of this country got liberated in 1992, with this liberalized economy came

many multinationals to market their products to Indian consumers. This liberalization touched the

industrial product users as well. These companies not only competed but also left the industries far

behind. They did this with the help of advanced technology and aggressive marketing. All this led

to tremendous competition and it was very difficult for the Indian industries to sustain it. No sector

was spared from this phenomenon.

The Refrigeration industry is one such industry. From a long time traditional mechanical

compression systems have dominated this industry. Industrial Refrigeration systems are used

generally to maintain the desired temperature of process in various industries.Within

liberalization the trends started to change very quickly, the international players crowded the

industrial market with the advanced and efficient refrigeration systems.

Like the change in the Indian industry there was also a change in Indian buyer behavior.

All the buyers needed to search for the effective and efficient technological systems.These

companies mostly using traditional systems which are not that technologically efficient. New

trends in Industries are started to adopt the absorption systems than the conventional systems. It is

very subjective matter to adopt the absorption systems as some process requirement much

compatible with the compression systems.

This scenario still exits and so it forms the seed to this project. Observations have shown

that there is a yawning gap between the quality of industrial products and the Indian industrial


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requirements. There is a need to develop the paradigm shift from the traditional systems towards

the absorption systems which are costly but Environment friendly.

It has also been analyzed that every industry spends a huge amounts on the refrigeration

systems once . These type of systems mostly specially made to order type. But There are another

players in the market like Thermax which provides the Standardized products and specification

which are very cost effective solutions. This project emphasizes on those industrial users in the

market which are congruent with the standardized product specification.

Initial surveys have shown that every company spends a sum of around 1.5 Crore to 5 Crore

or more per refrigeration system. The cost of maintenance may vary. In this project it is essential

to find the probable segments where it can be used and most prospective industrial segment

which can be used Ammonia LTRS.

The data is collected, analyzed and presented in the tabular form and then graphical

representation is done for ease of understanding. On basis of interpretation of data conclusion is

made and suggestions are put forward at the end.

Scope & Importance: -

Refrigeration Systems are used generally in various manufacturing industrial sectors. So

the project was related to those industries which might use the refrigeration systems in that critical

temperature range.

Project was related to know, whether industries required this kind of refrigeration systems

and to check whether they will position to replace from traditional Mechanical Compression

refrigeration systems to the Absorption systems. Our basic emphasize in knowing whether is

there any place for Low Temperature Ammonia Vapor Absorption Refrigeration systems for the

range of 290 to 70 0C in an industrial market and finding the probable industrial market in

which it can be used i.e. check the feasibility of product.

Limitations: -

Due to constraints the study is limited towards only in Maharashtra and North Region


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Survey is conducted only in industries; hence it is an industrial survey.

This survey carried out only for those industrial sectors in which refrigeration can be used.

This survey is limited only for the product users, consultants and Suppliers are not covered

in this survey.

CHAPTER 3

OBJECTIVES OF THE PROJECT

Thermax is market leader for providing the Refrigeration systems to industrial users

between 0 to 29OC. They are already manufacturing the refrigeration systems in that respective

segment. They want to enter in that particular critical segment. There might be other manufacturer

for this critical range i.e. provides the tailor-made products in that critical range as per

requirement.

The main objective of the project was to conduct the survey to know the market potential

of this new product Low Temperature Ammonia Vapor Absorption Refrigeration systems for the

range from 100-1600 TR in the temperature range of 290 to 70 0C in an industrial market &

analyzing the findings for product improvements.

Following are the objectives of the project-

Most attractive segment

Finding most attractive industrial sector which may use this type of refrigeration system.

Major Factors considered in the selection of the LTR systems

Opportunities for the waste heat recovery

Key decision Makers in purchasing refrigeration system in industry

Methodological Procedure the for the purchase of the product

Importance Attached to product performance and reliability as compared to price

Awareness of the Ammonia Absorption system

Estimation of future potential users of AVAM in next five years


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CHAPTER 4

COMPANY PROFILE

METRIC is a leading Consultancy firm and carved out a special position for itself as a

source for value added research. METRIC was established in 1989, as a partnership firm by Dr.

Anand Karandikar and Dr. Ameeta Deshmukh. In 2000 it became a public limited company with

a high-powered team of Senior Consultants with long-standing experience in both line marketing

and research, supported by consultants and research officers. In 2002 METRIC went international

when it franchised its research model MOSTER to worldwide Market Research agencies.

MOSTER is now being used in 20 countries around the globe. METRIC provides all support to its

international partners including proposal making, questionnaire design, analysis and professional

presentation.To assist organizations to implement strategic change for the competitive edge,

METRIC began a full-fledged training department.In 2003 METRIC expanded its operations to

providing skilled and trained manpower in market research to its partners worldwide.

METRIC has its head office in Pune with a modern computerized data processing system

and a large library with over 2000 reference volumes.

The firm has an all-India data collection network, with branch offices located in Delhi, Bangalore,

Ahmedabad, Chennai and field offices in Jamshedpur,Hyderabad and Lucknow. At METRIC, the

simple norm used to judge the quality of deliverables is:

"Whether our contribution has helped the client to increase sales and/or profitability".

METRIC has a diversified and varied team with specializations in:

Customer value management

Econometrics

Direct Marketing

Channel Management

Psychometric evaluation


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Statistical Analysis Interpretation

Forecasting

Business Strategy

Corporate Governance . And much more

Global Presence:

METRIC works with market research agencies in 16 countries in applying MOSTER as

well as other specialized studies. The franchisees consult METRIC for design of the survey, data

analysis and interpretation.

PR China

Sino Marketing Research Ltd.

CBC Marketing Research & Business Consulting

Diag Aid Marketing Research

Kenya

Research Solutions Ltd.

Italy

Metron S.r.I.

Argentina

Leventer Group S DE RL DE CV

New-Zealand

Key Research & Marketing

Portugal

Consulmark

Bulgaria


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Market Test Ltd.

Germany

Psyma Marketing Research Gmbh

Canada

The Dunvegan Group

Indonesia

PT DEKA Marketing Research

Mexico

Market Sciences

USA

Dimension Research Inc.

Brazil

Leventer Group S DE RL DE CV

Thailand

Infosearch Limited

Thailand

Market Support Co.Ltd.

Gulf Countries

PAN Arab Research Center

Services

Metric Consultancy is research based resulting in customer centric solutions - aimed at

maximizing their value. METRIC consultants have long 'line' expertise in marketing and selling

which are practical and easy to implement.


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Metric s major contributions are in the areas of

Comprehensive channel architecture

Direct marketing systems for high value consumer durables

Customer value management for increased customer loyalty

Overcoming farmers' risk aversion to facilitate technology transfer

New product development and new product launch

Organizational restructuring for marketing excellence

Corporate governance through effective process designs

Other Proprietary Models

Readership behavior studies

Corporate Image

Competitive scenario mapping

Demand forecasting

Tracking market mood through consumer panels

Clients:

BPL Whirlpool Cognizant

TVS Honda SPIC

Rallis Novartis Ranbaxy

LML BILT EID Parry

Daewoo Thermax Kinetic

TI Cycles KSB Pumps Mercedes Benz


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TATA Steel Bajaj Tempo VSNL

TATA Motors BPCL Swaraj Mazda

GlaxoSmithKline Cummins Auto TQMS

Bank of Maharashtra Hindustan Petroleum Kirloskar Oil Engines

Larsen & Toubro Yamaha L&T John Deere

HSBC Bank HMT Machine Tools Indian Oil

Carborundum Universal ICPA Honda Motorcycles & Scooters

Metric s Proprietary Models

1 ) MOnitoring Satisfaction To Ensure Retention (MOSTER)

Delight your customers

MOSTER is a robust research methodology to diagnose and quantify the path to customer delight.

Based on the models of Herzberg and Noriaki Kano, MOSTER is being used in 22 countries

around the world.

MOSTER classifies attributes of your product or service into those that create delight and those

that if not provided will create dissatisfaction and calculates

The ability of an attribute to create satisfaction or delight

How well the attribute is rated on a product or brand

Sensitivity of each attribute to effect change in customer perception

MOSTER - gives actionable results, which guarantees delight

2) LOCATE

LOCATE is a scientific methodology for choosing the BEST city, the BEST area and the BEST

location for your retail shop. After marking all possible location, an estimation is made about the

potential of the area to attract customers through a complex field investigation that includes traffic

count, study of arterial roads etc.


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3) E- Sat

E-Sat identifies how to retain your best employees

Because competent people leave if they are dissatisfied

Incompetent people do not leave even if very dissatisfied

Because good people leave even if satisfied because they want delight at their workplace

And only good people can build great companies

E- Sat is based on the models of Herzberg and Noriaki Kano, and is being used in 22

countries around the world.

4) A CREDIT RATING INDEX (CRIDA)

Provides an objective basis of Credit Volume

Establishes tighter process controls for credit management

Redeploys your credit resources more profitably

Assessment of creditworthiness of market dealers is a complex and challenging task. A

dealer's business contains substantial informal resource flows, which are difficult to quantify and

inspect. The assessment process is expensive and time consuming because of the large number of

assesses.

METRIC's model CRIDA is based on the conceptual frame Work that Creditworthiness is a

manifest attribute of dealer's business behavior and is closely dependent on his management

practices. CRIDA measures a dealer's credit worthiness by collecting authentic and reliable data

on various aspects of his business management practices. An index of creditworthiness so

constructed to provide authentic & cost effective inputs for future credit management. Aspects of

management Practice that are constituent variables for the Index of Creditworthiness (I c/w )


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1.Nature of organization

2.Form of organization :

3.Goodwill in the market place

4. Leadership

5. Owner's age and profile of close family members

6. Relationship with bankers

7. Composition of working capital

8. Trend in business

9. Efforts at sales promotion

This list is only illustrative. It is expanded and refined through initial qualitative study &

discussions with the client. A combination of direct survey and observation based methodology is

employed for data collection. CRIDA also estimates the volume of credit that can be extended by

estimating the dealer's Sales Potential, Brand Commitment to Company and past history regarding

his financial transactions with company. CRIDA helps in evaluating and developing better Credit

policies for your company.

5) De Matrix - For effective Dealer Management

A model to segment dealers and for channel development.

In India today, there is a great diversity in the nature of dealers. Without a clear strategy dealers

could develop a very short term view of their relationship with the company and adopt 'street

smart tactics' to gain maximum profits in the shortest possible time.

With DE MATRIX Dealers are segmented so that specific need identification can be done. Dealer

development strategies are formulated to fulfill dealer needs in a comprehensive and focused

manner.


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CHAPTER 5

PRODUCT PROFILE

The key product of Thermax Ltd. Company is an industrial refrigeration system. These

refrigeration systems are made, as per the industrial standards Thermax products are the brand in

the industrial market.

What is a Refrigeration System

Refrigeration is defined as the transfer of heat from a lower temperature region to a higher

temperature one. Refrigeration devices that produce refrigeration operate using the vapor-

compression cycle (reversed Carnot cycle) or vapor absorption system. Some examples of

refrigeration devices are heat pumps, refrigerators, automotive air-conditioners, and

residential/commercial air-conditioners. All of these devices have one thing in common, to reduce

the temperature of an enclosed environment.

The ammonia absorption cycle was one of the first methods employed for the production

of refrigeration. Original invention consisted of a direct fired generator, a condenser, an

evaporator, an absorber, and an aqua ammonia pump, all of which with many improvements

remain the principle parts of an ammonia absorption system. At this date however, reciprocating

machines had not been developed to the point where they could approach the compression ratios

required for low temperature applications and ammonia absorption found its place in the

refrigeration industry despite its disadvantages. .

In the middle thirties, improved ammonia absorption systems were installed which would

operate on Waste Steam, Waste Heat, or by Direct Firing with Natural Gas or other gases. These

systems employed bubble column design and spray type absorbers and provided ammonia at


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99.96% purity for refrigeration duty. This advance in technology, which provided the high purity

(commercial grade) ammonia, overcame the major operating problems of the early systems.

The AAAR AQUA AMMMONIA ABSORPTION REFRIGERATION SYSTEM,

as conceived by Lewis Energy Systems Inc. features several new concepts. Among these are an

ammonia refrigerant liquid to gas heat exchanger and greater utilization of the rectification column

which have further improved the system efficiencies. New and improved control systems are also

available to maximize the utilization of valuable heat sources.

The GENERATOR-REBOILER is considered to be the heart of the LEWIS AAAR

SYSTEM. It receives strong aqua, (preheated in the AQUA HEAT EXCHANGER) as primary

feed and also the returns from the DISTILLATION COLUMN. Steam or any other type of heat

available heats this strong aqua and DISTILLATION COLUMN return. This causes a part of the

ammonia within the aqua to be vaporized. This vapor flows to the DISTILLATION COLUMN

entering below the bottom tray. The weak aqua is taken from the low end of the GENERATOR

REBOILER and heat exchanged with the strong aqua coming from the STRONG AQUA

RECEIVER.

The DISTILLATION COLUMN utilizes bubble trays to distill the ammonia (strip it of

all of its water vapor). Enough strong aqua is fed into the column at one or two predetermined

plates to bring the plates into equilibrium, with the balance directed to the GENERATOR-

REBOILER. Pure anhydrous ammonia is fed to the top plate from the AMMONIA RECEIVER

which receives condensed liquid ammonia from the AMMONIA CONDENSER. This rectification

provides 99.96% ammonia vapor to the AMMONIA CONDENSER.

The AMMONIA CONDENSER condenses the vapors from the DISTILLATION

COLUMN using primary water. The condensed anhydrous ammonia flows to the AMMONIA

RECEIVER. The receiver is sized to provide surge for ammonia volume variations caused by load

changes in the system.

Two REFLUX PUMPS (100% spare) are employed to pump liquid NH3 from the

AMMONIA RECEIVER to the top tray of the DISTILLATION COLUMN. If the CONDENSER

is high enough in the structure these pumps can be eliminated. Ammonia is fed to the


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EVAPORATOR at the pressure which corresponds approximately to that of the ABSORBER

pressure and vaporizes as it absorbs heat from the cooled liquid or process gas.

The LEWIS AQUA AMMONIA ABSORPTION REFRIGERATION SYSTEM is

made completely made an slight edge over mechanical compression systems-

1) Low Maintenance

2) Maximum Reliability

3) Low Cost Installation

4) Low Noise level

5) Completely Automatic Operation

6) Operational Flexibility

7) Design Flexibility

8) Oil Free Refrigeration System


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CHAPTER 6

RESEARCH METHODOLOGY

Marketing research is the systematic design, collection, analysis and reporting of data and

findings relevant to a specific marketing situation facing the company. Marketing research is a

research carried out in a particular market. The study is done with a set objective, maybe for the

reason to analyze consumer for the introduction of new product, study of distribution channels or

for that reason, any problem in the field of marketing. The market research is complete only when

proper analysis is carried out with the help of the relevant information and the solution fulfilling

the objective is identified.

Before embarking on the details of information collected, it is appropriate to present a brief

view of the research process. Research process consists of series of actions or steps necessary to

effectively carry out the desired sequencing of these steps. The figures attached will illustrated a

typical research process.

Following orders of steps to be taken provide useful guidelines regarding the research process:

1. Formulating the research problem.

2. Extensive literature survey.

3. Preparing the research design.

4. Questionnaire formulation.

5. Determining the sample design.

6. Collection of data.

7. Analysis of data.

8. Interpretation of data.


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1. Formulating the research problem

At the very outset of the research it was important to single out the problem to be studied.

Essentially, to steps were involved in formulating the research problem.

Understanding the problem thoroughly

Rephrasing the problem into meaningful terms from an analytical point of view

The research problem in case of this project is as follows:

To find out the market potential for the probable industrial users

Discussion with the various industrial experts.

To find the customer s awareness about this vapor absorption refrigeration systems.

To find the various technical comfortability of the product in the field.

2. Extensive literature survey

The best source of literature is the library. In the book of Philip Kotler as well as other books

the subject has been dealt extensively. There are at least five to six steps are covered in market

potential survey. Metric has provided with extensive books on various management issues.

3. Preparing the research design.

After defining the problems clearly, the next step is to plan & design the research. It is the

arrangement of condition for collection and analysis of data in a manner that aims to the research

purpose with economy in procedure.

The preparations of research design appropriate for a particular research problem involve

usually the consideration of the following:

The means obtaining the information.


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Evolution of the way in which selected means of obtaining the information will be

organized and the reasoning leading to the selected.

The cost factor relating to the research.

A segment survey of around 35 industries on basis of these industries I was able to

formulate the complete research.

4. Questionnaire formulation

Questionnaire is considered as the core part of the survey and should be constructed very

carefully. An insufficient and incorrect questionnaire leads to total failure of the survey

Structured questionnaire were used. Questions were definite, concrete and predetermined

.The questions were either open or closed ended for response. Structured questionnaire is

simple to administer and relatively inexpensive.

5. Determining the sample design

When field studies are undertaken in particle life, consideration of time and cost almost

invariably lead to a selection of respondents. The respondents selected are the representatives

of the representatives of the total populations. The selected respondents constitute what is

technically called a sample . The survey is sample survey .

Sampling Plan

a) Sampling Unit- Sampling Unit indicates the people or subject that is selected for

particular research. The purchase managers/executives, Engg. Managers of the leading

companies in Pune were selected.

b) Sample Size- Sample size indicates the number of respondents that are selected for

particular research. A sample size of 35 companies from Maharashtra and Norhthen

india region.


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c) Sampling Procedure- Sampling Procedure indicates the manner in which particular

respondents were selected. The main criteria for selection of respondents that every

sectors covers all types of variety users i.e. from top industries to small scale industries

and their ratio is maintained such that sample represents the whole sectors response. As

far as users are concerned, the users are selected on the basis of their annual turnover

of user , the list provided by the THERMAX for his project.

d) Geographical unit -

Area that was surveyed was Maharashtra and North India which covers all

industries for which we are targeting the whole project.

6. Collection of data

This stage of any research consists of collection of the required data from the sample

decided upon. As it is an exploratory research concerning the customer perception in data

collection calls for the primary source.

Data source

Primary data

Primary data has been collected from industries. Extensive survey is done to get the

maximum information about the trade. No one could have better knowledge of customer s

perception. On the other hand customer is the most reliable source of information.

Secondary data

The information related to the industry is gathered from company brochure, technical

manual, periodicals, newspaper, and different magazines. Besides this the company

executives provided help and assistance to understand the basic of refrigeration industry.

7. Analysis of data


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After the data is collected, and then comes the crucial task of analyzing them. The analysis of

data required number of closely related operations. This task contains the use of analytical skills ,

interdependence of the various attributes involved in the research and their impact on the

research.

8. Interpretations of data

The real value of research lies in its ability to draw conclusions. Infact, this stage is the one

for which has been designed. Information based on real facts & the systematic collected data was

made available in this stage.

RESEARCH DESIGN

Research design is the overall description of all the steps through which the project has

proceeded from the setting of the objectives to the writing of the project work

Below are the various steps in brief of the research design for this project.

Pilot Survey:

Pilot Survey was designed in Pune region to give an overview of the research and to check

whether industrial technocrats are responding that we needed. It might be possible some industries

are not in position to co-operate and not in position to leak the confidential information and to

modify the questionnaire if needed some welcome suggestions. The Initial draft is prepared which

covers variety of technical aspects then latter modified with the discussion with the industrial

experts and Thermax technical experts.

The Implementation of the Pilot Study was very crucial in this project, the whole professional

aspect depended on it, as it reflects the degree of fulfillment of objectives of project .

It played an important role because the persons interviewed were one of the senior key managers

from various departments in the industries.


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Research Instrument:

An ideal research instrument must ensure reliability of data that are collected. A well designed

questionnaire was the main research instrument used in this particular project. While some of the

questions were open ended some were close ended too. Questions were designed to obtain the

information about-

Most attractive segment

Finding most attractive industrial sector which may use this type of refrigeration system.

Major Factors considered in the selection of the LTR systems

Opportunities for the waste heat recovery

Key decision Makers in purchasing refrigeration system in industry

Methodological Procedure the for the purchase of the LTR System

Importance Attached to product performance and reliability as compared to price

Awareness of the Ammonia Absorption system

Estimation of future potential users of AVAM in next five years

Interview planning: -

Interviews were planned as per planned schedule i.e. it was expected to finish the sample size

within stipulated time. Most probably it depends upon the getting appointment of that senior

managers. A necessary precaution was taken to make the interview the various departmental heads

and full information we ,quit meaningful to attain the objective.

Processing, analysis and interpretation of collected data: -

In this stage all the data collected were checked for any inconsistencies. This step proves quite

useful to remove or cross check any incorrect data which otherwise may prove factual during

analysis.

From the analysis the interpretation was possible and the various problems, which was required to

be explained, can be elucidated.

Finally the report containing all details was designed.


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All matters discussed above have constituted the research design that was followed i

CHAPTER 7

SUMMER- TRAINING SCHEDULE

The project has to be completed in a period of eight weeks. Before actual commencement of the

project, time-schedule was prepared. It was as follows:

week

Operations 1 2 3 4 5 6 7 8

Introduction about

company

Basic knowledge

about Refrigeration

Systems

Introduction to the

project

Brainstorming about

project

Making Questionnaire

Pilot Plant Survey and

Quest. Modification

Industrial survey

Analysis &

interpretation of data

Preparation of rough

draft

Discussion with

project guide

Finalization of project


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CHAPTER 7

DATA ANALYSIS & FINDINGS

TABLE 1. Most Attractive industrial Segment

Name of the Industry Segment % of Respondents

willing to go for AVAM Bulk Drug (Pharma) 50

Fish Processing 100 Dairies 50

Cold Storage 100 Biotech 60

Meat Processing 100 Ice Cream Plants 80 Fertilizer Plants 25

Refineries 25 Petrochemicals 50 Pesticide Plants 80 Food processing 50


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Most Lucrative Industrial Segment

0

20

40

60

80

100

120

1

Industry Segment

% o

f po

ten

tial o

f AV

AM

Bulk Drug (Pharma)

Fish Processing

Dairies

Cold Storage

Biotech

Meat Processing

Ice Cream Plants

Fertilizer Plants

Refineries

Petrochemicals

Pesticide Plants

Food processing

TABLE 2 .Preference of the customer while they buy the AVAM system

Attributes No. of companies No odor nuisance 3

Electricity cost 12 Maintenance cost 9 Simple to operate 3 Few moving parts 1 After sales service 5 Less Manpower 3

Less Space 8 Reliability of Product/techno/supplier 3

Availability of Spares 2


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Few moving parts2%

Simple to operate6%

After sales service10% Maintenance cost

19%

No odor nuisance6%

Availability of Spares4%

Reliability of Product/techno/suppli

er6%

Less Manpower6%

Less Space16%

Electricity cost25%

No odor nuisance

Electricity cost

Maintenance cost

Simple to operate

Few moving parts

After sales service

Less Manpow er

Less Space

Reliability ofProduct/techno/supplierAvailability of Spares

TABLE 3 . Opportunities for the waste heat recovery

Source

Percentage of the industries using the

Waste heat Recovery

Boiler Condensate Recovery 80 Exhaust gases from processes 40

Exhaust gases from DG Sets/Gas Engines 60 Jacket from DG Sets/ Gas Engines 20

Effluent Discharge 20 Flared Heat Capacity (only in Refineries) 100


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Oppurtunities for the waste heat recovery

0

20

40

60

80

100

120

1

Boiler CondensateRecovery

Exhaust gases fromprocesses

Exhaust gases fromDG Sets/Gas Engines

Jacket from DG Sets/Gas Engines

Effluent Discharge

Flared Heat Capacity(only in Refineries)

TABLE 4 . Key Decision Makers

Authority Percentage Board of Directors 35 General Manager 35

Maintenance Department/ Engineering Department 15

Mixed 15


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.

TABLE 5. Methodology for the Purchase of AVAM

Attribute Yes No Appointment of Consultants 60 40

Public Invitation for Consultants 80 20 Systematic Method for short listing 40 60

Floating of tender 50 50

Key Decison Makers

Board of Directors35%

Mixed15%

Maintenance Department/ Engineering

Department15%

General Manager35%


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Methodology for the Purchase of AVAM

0%10%20%30%40%50%60%70%80%90%

100%

Appointmentof Consultants

PublicInvitation forConsultants

SystematicMethod forshort listing

Floating oftender

No

Yes

TABLE 6

Sources of Information

Source of information Contribution Books and periodicals 10 Consultants 20 Other users of refrigeration plants 40 Through attending seminars and exhibitions 10 Internet 10


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Others 10

Contribution

Through attending

seminars and exhibitions

10%

Internet 10%

Others 10%

Books and periodicals

10%

Consultants20%

Other users of refrigeration

plants40%

TABLE 7 - Comparative Analysis for the Importance of each Attribute


33

Comparitive Importance Analysis

0%10%20%30%40%50%60%70%80%90%

100%

Bulk D

rug

(Pha

rma)

Fish P

roce

ssing

Dairies

Cold S

torag

e

Biotec

h

Mea

t Pro

cess

ing

Ice C

ream

Plan

ts

Fertili

zer P

lants

Refine

ries

Petroc

hemica

ls

Pestic

ide P

lants

Food p

roce

ssing

Price

Reliability of theproduct / technologysupplier

ProductPerformance

Sectors/ Aspect Product Performance

Reliability of the product / technology

supplier

Price

Bulk Drug (Pharma) 60 20 20 Fish Processing 20 20 60

Dairies 50 20 30 Cold Storage 40 20 40

Biotech 70 15 15 Meat Processing 20 30 50 Ice Cream Plants 40 30 30 Fertilizer Plants 50 15 35

Refineries 30 20 30 Petrochemicals 40 30 30 Pesticide Plants 50 25 25 Food processing 25 50 25


34

TABLE 8

Awareness Of AVAM while they buy Product

Attributes No. of Companies

Reliability 25

Ease of operation 20

Purchase Cost 5

Running Cost 10

Frequency of Breakdown 5

Awareness of AVAM

Purchase Cost8%

Running Cost15%

Frequency of Breakdown

8%

Ease of operation

31%

Reliability38%

TABLE 9 Future Potential of AVAM


35

Attributes No. of

Companies Expansion of existing plant 20

Installment of New Plant 10

Replacement of existing plant 5

Future Potential of AVAM

Installment of New Plant

29%

Expansion of existing plant

57%

Replacement of existing plant

14%

CHAPTER 11

FINDINGS

From data collected from survey followings are the findings-

1) Most Attractive Segment


36

Most Lucrative - Fish Processing, Meat processing, Cold Storage Lucrative - Ice Cream, Pesticides, Biotech Less Attractive - Pharma, Dairies, Fertilizers, Refineries, Petrochemicals, Food Processing

Most Lucrative segments are those which a sector in which production process operates below -40 OC and Lucrative are those which operates from -25 to -40 OC. Less Lucrative Sectors are those in which production process varies from industry to industry and process requirement changes from industry to industry.

2) Customers Preferences

Very Vital - Electricity Cost,Maintainance cost, Less Space requirement

Vital

After Sales service

Less Vital - Less Manpower, Reliability,No odour Nuisance, Availibility of Spares,

Simple to operate, Few moving Parts

3) Most Attractive Energy Optimization Techniques

Most Attractive : Flared Heat Capacity, Boiler Condensate recovery.

Attractive : Exhaust Gases from DG Sets

Less Attractive : Effluent discharge, Jacket from DG Sets. Exhaust gases from Process.

4) Key Decision Makers

Board of Directors and General Manager hold the key for purchase of refrigeration

Systems

5) Purchase Methodology-

General Trends - Appointment of consultant, Public Invitation for the Consultant

Off Trends - Systematic Method for Shortlisting, floating of Tender

6) Sources of Information

Major- Industrial Users, Consultants

Minor Internet, Books Periodicals, Seminars and exhibitions

7) Comparative Importance Analysis-

Various industries have different priorities as per their requirement- 1 ) Price - Fish Processing,meat processing,Refineries


37

2) Reliability of Product and services- Food Processing, Ice Cream Plants

3) Product Performance Biotech,Bulk drug, Fertilizer and Pesticide, Petrochemcials , Dairies, Refineries, cold storage

8) Awareness of AVAM Reliability and Ease of Operation are the major positive point that industrial users know about the product Market is well aware of the Ammonia Absorption Refrigeration System.

9) Future Potential of AVAM

Majority of the AVAM Users are targeting for expansion of existing equipment

CHAPTER 11

INFERENCES & RECOMMENDATIONS FOR THERAMX


38

Company should target most lucrative and lucrative industrial segment & design their

product mostly suitable for those sectors

Company should consider the careful attention towards Electricity Cost,Maintainance

cost, Less Space requirement and After Sales Service as these are the most attractive

preferences of the users.

Company should consider the Boiler Heat recovery, Exhaust gases from DG sets and

processes from design point of view of AVAM.

Company should create and maintain good relations and have in continuous touch with

these top management people from industry

Company should be promote their product in the industrial consultant group and

advertised product through proper channels

Company should promote their product by giving best through their product and services

to build a loyalty and brand awareness.

Different industries have different priorities so product should be of optimum mix of Price,

Reliability and Product performance.

Majority of industries are interested in replacement and expansion of existing plant if

Company is planning to make out retrofitted model in compression system or exchange of

Mechanical system by AVAM then it might be huge market fro the company

CHAPTER 12

CONCLUSION

In today s market most of the industrial users are using the mechanical compression

system; relative market share for the AVAM is negelible. Most of the industries are well


39

aware of the AVAM and have trend towards adoption of the New Absorption technology.

Thermax had created the brand in the market for the refrigeration system operating below 0 OC to -29OC and one of the major player in the market.

There is huge potential for the Ammonia Absorption Refrigeration system especially in the

some niche industrial segments. At this age the industries are about to shift from

mechanical compression to absorption system provided they have proper solution provider

for their existing problems

From this industrial study it can be concluded that this product is having large scope in

Indian market at least for next 8 - 10 years.

CHAPTER 13

BIBLIOGRAPHY

1) Kothari C R : Research Methodology, 2nd Edition, Wishwa Publication,


40

1997, Page Nos 99-100,117-150, 403-422

2) Kotler Phillip : Marketing Management, 9th Edition, Prentice Hall of India Pvt.

Ltd., New Delhi, 1997, Page Nos 113-1

Questionnaire No.

Survey of Low Temperature Refrigeration (LTR) application in INDIA (Range 25oC to 70oC)

Q1. Nature of your industry

1. Cold Storage

2. Bulk Drug

3. Coffee plant

4. Food processing


41

5. Pesticide Plants

6. Refineries

7. Ice Cream Making Plants

8. Dairies

9. Fertilizer Plants

10. Meat Processing

11. Petrochemicals

12. Fish Processing

13. Formulation Plant

14. Biotech

15. Malted Food

16. Others (pls. Specify) ___ _____ _________

Q2. Give the marks out of 10 for the following: - (10 marks for the Most Important Attribute & 10 marks for the Most Satisfied for the current equipment)

Sr. No. Attributes Importance for you

Satisfaction level for the current equipment

1 Requirement of less space 2 Reliability of technology 3 Less manpower is required 4 Less capital cost 5 Less electricity cost 6 Less maintenance cost 7 Simple to install 8 Simple to operate 9 Less startup time 10 Few moving parts 11 Ready availability of spare parts in market 12 After sale service by the supplier 13 Reliability of the product / technology supplier 14 No odour nuisance

Q3. Your Overall Satisfaction with the current refrigeration plant is ( /100)

Q.4. Details of existing heating equipment (Boilers and Heaters) in your plant

Sr. No.

Make Capacity (Tonnes per hour - TPH)

Fuel used in the heating equipment

Pressure (bar or kg/sq. cm)

Temperature (deg. Celsius)

Cost of steam (Rs/Kg)

I II III IV


42

V VI

Q.5. Opportunities for Waste Heat Recovery in your plant

Sr. No.

Source Type (gas/liquid & composition)

Temperature (deg. Celsius)

Quantity (unit as applicable)

I Boiler condensate recovery

II Exhaust gases from processes

III Exhaust gases from DG sets/ Gas Engines

IV Jacket Water from DG sets/ Gas Engines

V Effluent Discharge

VI Flared gas capacity (Specially for the refineries)

Q6. Please rate the following sources of information from where you get the information about the refrigerating plant like new technology, consultants, manufacturers, applications etc. (Pls. rate for the past experience and future also.) (Please give marks out of 10. Higher score means source of information used more by you.)

Sr. No.

Nature of source of information In the past 2 years

For the future (next 1 year)

I Books and periodicals II Consultants III Other users of refrigeration plants IV Through attending seminars and exhibitions V Internet VI Others (pls. Specify) ___

Q7. Please give your overall waightages for the following aspects while selecting the refrigerating equipment.

Sr.

No.

Aspect Weightage (distribute

marks out of 100)

01 Product performance


43

02

Reliability of the product /

technology supplier

03 Price

100

Q8. Are you aware of Ammonia Vapour Absorption Machine (AVAM) or Ammonia Absorption Refrigeration (AAR)? Yes No

Q9. If the answer to Q8 is YES then please rate AVAM / AAR machines by giving marks out of 10 on the following factors. (For Reliability and Ease of Operation, 10 indicate High Reliability and Ease of Operation. For Purchase Cost, Running Cost and Frequency of Breakdown, 10 indicates lower Purchase Cost, lower Running Cost and lower Frequency of Breakdown)

Attributes Ratings (0 to 10)

Reliability

Ease of operation

Purchase Cost

Running Cost

Frequency of Breakdown

*Note : For FO, Please show this to respondents before starting the next questions.

Please note the advantages of Ammonia Absorption Refrigeration (AAR) over Compression Method are: - 1. High reliability 2. Lower maintenance costs due to no moving parts except a centrifugal pump 3. Waste steam / heat energy utilization driven technology leading to energy

conservation 4. Wide refrigeration temperatures (+10 to -70oC)

Q10. In view of above benefits, will you be interested in converting your existing refrigeration plant to Ammonia Absorption Refrigeration (AAR)?

1. Yes 2. No

Q11. If Yes, what can be the time frame for carry out this project work?

Current Year (2006) Next Year (2007) After 2 Years


44

Q12. Is your organization planning to expand existing refrigeration plant(s) or install new ones in the range of 25oC to 70oC?

In the next 1 year in next 2-3 years in more than 3 years No plans

Procedure for buying a new or converting the existing compression plant to Ammonia Vapour Absorption refrigeration plant

Q13 Do you appoint consultants for procurement of the LTR plants?

Yes

No

Q14 If yes, do you issue a public invitation for the appointment of consultants?

Yes

No

Q15 Do you issue public invitation for selecting the technology supplier?

Yes

No

Q16 Is there a system to shortlist the technology suppliers?

Yes

No Q17 Do you float the tender for short listed parties?

Yes

No

Q18. Who is the Key Decision Maker for investment in the LTR plant?

Name & Designation __ ___

Q19. Who decides on the technology supplier of the LTR plant?


Q20. Who short-lists on the technology supplier of the LTR plant?


Q21. Who will supervise the installation of the refrigeration plant?

Name & Designation ___ ____________

COMPANY DETAILS

Q22 Name of the Company :


45

Q23 Name of the group :

Q24 Office Address :

Q25 Plant locations :

Q26 The total sales of your company in the financial year 2005-06 (Rs. Lacs)

:

Q27 Name of the person :

Q28 Designation :

Q29 Telephone No. :

Q30 Email ID :

Q31 Years of experience in this field

:

Q57. Any suggestions / Comments?

__________________________________________________________________

___________________________________________________________________

__________________________________________________________________

Signature of the respondent___________________________

For official use only:

Field Officer : Devendra Shende Date of interview: ______________

Checked by: ________________________ Date: ________________________

ANNEXTURE 2


46

LIST OF THE INDUSTRIES VISITED

1. Serum Institute Of India Ltd, Hadapsar, Pune

2. Hindustan Antibiotics Ltd, Pimpri, Pune

3. Ranbaxy Pharmaceuticals, Jejuri

4. Emure Pharma Ltd, Hinjewadi, Pune

5. Venkateshwara Hatcheries Ltd, Pune- Panshet road, Pune

6. Cipla Ltd, Kurkumbh, Pune

7. Reliance Industries Ltd, Kurkumbh, Pune

8. Reliance Industries Ltd, Thane

9. Lupin Pharmaceuticals, Aurangabad

10. Orchid Pharmaceuticals, Aurangabad

11. Wockhardt Pharmaceuticals Aurangabad

12. Gharda Chemicals, Mumbai

13. Glaxosmithlakane Pharmaceticals,Mumbai

14. United Phosphorous, Mumbai

15. Kwality Walls Ice Cream, Nashik

16. Dinshaw dairy Foods, Nagpur

17. Rich Quality Ice cream , Pune

18. Dynamix Dairy, Baramati

19. Allanasons Ltd,(Fisheries) Mumbai

20. Al gilani exports, Mumbai

21. Casterlock fisheries, Mumbai

22. Cadbury India, Talegaon Dhabhade , Pune

23. Cheminova India , Ankleshwar

24. Aventis Pharma , Goa

25. IPCA Laboratories, Aurangabad

26. Glenmark Pharmaceuticals , Mumbai

27. Indian Farmer Fertilizer Cooperative Limited , Mumbai

28. Bayer Cropscience, Thane

29. Rastriya Chemicals and fertilizers, Chembur, Mumbai

30. Deepak Fertilizers and fertilizers, Mumbai

31. Bharat Petrochemicals Corporation Limited , Mumbai

32. Indian Oil Corporation Limited ,Mumbai


47

33. Hindustan Petroleum Corporation, Mumbai

34. Venus Petrochemicals Limited Thane

35. Blue blends Petrochemicals Mumbai

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