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CERTIFICATE

This is to certify that the present study DISTRIBUTION CHANNEL

OF CSR FORGING PVT. LTD. has been carried out by DheerajSinghal, Batch 2009-12, under my direct supervision. I am glad to forward thisfor the partial fulfillment for his summer project of BBA.

PROJECT GUIDE: MS.PRIYANKA A. SINGH


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TABLE OF CONTENTS

1)ACKNOWLEDGEMENT2)EXECUTIVE SUMMARY3)SCOPE OF STUDY4)INTRODUCTION5)DISTRIBUTION CHANNEL6)SWOT ANALYSIS7)RESEARCH METHODOLOGY

8)FINDINGS9)RECOMMENDATIONS10)CONCLUSION11)BIBLIOGRAPHY


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ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and

supported me during the completion of my project.

My deepest thanks to Lecturer, MS. PRIYANKA A. SINGH the Guide

for my internship for guiding and correcting various documents of mine with

attention and care. He has taken pain to go through the project and make

necessary correction as and when needed.

I express my thanks to the Director of, AMITY SCHOOL OF BUSINESS,

NOIDA, for extending his support.

I would also thank my Institution and my faculty members without whom

this project would have been a distant reality. I also extend my heartfelt thanks

to my family and well-wishers.


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EXECUTIVE SUMMARY

The project aimed to assess the world and Indian market scenario of

forging Industries for automobile and non-automobile components.

The study was descriptive in nature and it tries to understand TVS Sundram Fasteners potential to diversify its business into Non automobileindustries like Aerospace sector, Earthmoving and Construction andEquipment sector and Heavy engineering sector.

The Non Automobile industry will have a steady growth in the future andthese markets require products manufactured with high end technology.


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SCOPE OF STUDY

To study world and Indian market scenario of forging industries.

To find out the technologies of other forging industries.

To analyses the trend of non-automobile industry.

To find components for non-automobile industry.

To Identify end use of the other forging components.

To find out the potential customers for the company.


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INTRODUCTION

CSR Forging Private Limited is a manufacturer and supplier of criticalapplication Cold Forged Fasteners /Components. Its aim is to include

virtually every global automotive OEM and Tier I supplier. CSRis

simultaneously implementing capacity expansion program, which on

completion will enable it to cater larger market opportunities even more

aggressively and capture larger market share.

Work force

Work-force of CSR includes highly committed and experienced personnel, who arepresent in the fasteners industry from last 15 years.


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Our Strengths

We believe that along with dedication and commitment of each and every memberof CSR towards understanding and fulfilling the customer needs, the following

strengths would help us to cater large customer base:1. Capabilities of wide cold forged product profile across Auto & Non Autosegments.

2. Full Service Supply Capability.3. ISO 9001:2008 certified from TUV Nord.4. State-of-art facilities.5. Cost efficiency.

Participation in Fastener Fair, India, Mumbai 16-17 April, 2011


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CSR offers its products and services for wide range of components (diameterranging 3-16 mm), such as Hex. Head Bolts, Socket Head Bolts, Flange Bolts,Projection Rivets, Studs, etc.

Quality Policy

We at CSR Forging Pvt. Ltd. are committed to enhance our customersatisfaction by delivery of quality products as per customer schedule andrequirement.

We are further committed to continually improve our Quality ManagementSystem & adhere to international quality standards by training our workforce,improving our suppliers and inducting latest technology to exceed our customer

expectations.

Forging is one of the oldest known metalworking processes.Traditionally, forging was performed by a smith using hammer and anvil, andthough the use of water power in the production and working of iron dates tothe 12th century, the hammer and anvil are not obsolete. The smithyor forge has evolved over centuries to become a facility with engineered

processes, production equipment, tooling, raw materials and products to meetthe demands of modern industry.

In modern times, industrial forging is done either with presses or with hammerspowered by compressed air, electricity, hydraulics or steam. These hammersmay have reciprocating weights in the thousands of pounds. Smaller powerhammers, 500 lb (230 kg) or less reciprocating weight, and hydraulic pressesare common in art smithies as well. Some steam hammers remain in use, butthey became obsolete with the availability of the other, more convenient, powersources.


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INDUSTRY PROFILE

The composition of the Indian forging industry can be categorized into

four sectors - large, medium, small and tiny.

The Indian forging industry has evolved as a major contributor to themanufacturing sector of the Indian economy. The key demand driver isthe automobile industry.

The other industries that use forgings include Railways, Defense, OilExploration, Cement, Steel Industry and other engineering Industries.

65per cent of the total forging production is used in Automobile sector


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Advantages and disadvantages

Forging can produce a piece that is stronger than anequivalent cast or machined part. As the metal is shaped during the forging

process, its internal grain deforms to follow the general shape of the part. As aresult, the grain is continuous throughout the part, giving rise to a piece withimproved strength characteristics.Some metals may be forged cold, however iron and steel are almost always hotforged. Hot forging prevents the work hardening that would result from coldforging, which would increase the difficulty of performing secondary machiningoperations on the piece. Also, while work hardening may be desirable in somecircumstances, other methods of hardening the piece, such as heat treating, aregenerally more economical and more controllable. Alloys that are amenable

to precipitation hardening, such as most aluminium alloys and titanium, can behot forged, followed by hardening.Production forging involves significant capital expenditure for machinery,tooling, facilities and personnel. In the case of hot forging, a high temperaturefurnace (sometimes referred to as the forge) will be required toheat ingots or billets. Owing to the massiveness of large forging hammers and

presses and the parts they can produce, as well as the dangers inherent inworking with hot metal, a special building is frequently required to house theoperation. In the case of drop forging operations, provisions must be made to

absorb the shock and vibration generated by the hammer. Most forgingoperations will require the use of metal-forming dies, which must be preciselymachined and carefully heat treated to correctly shape the work piece, as well asto withstand the tremendous forces involved.


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Processes

A cross-section of a forged connecting rod that has been etched to show thegrain flow.There are many different kinds of forging processes available, however they can

be grouped into three main classes:Drawn out: length increases, cross-section decreasesUpset: length decreases, cross-section increasesSqueezed in closed compression dies: produces multidirectional flowCommon forging processes include: roll forging, swaging, cogging, open-dieforging, impression-die forging, press forging, automatic hot forging andupsetting.

Temperature

All of the following forging processes can be performed at varioustemperatures, however they are generally classified by whether the metal

temperature is above or below the recrystallization temperature. If thetemperature is above the material's recrystallization temperature it is deemed hotforging; if the temperature is below the material's recrystallization temperature

but above 310ths of the recrystallization temperature (on an absolute scale) it isdeemed warm forging; if below 310ths of the recrystallization temperature(usually room temperature) then it is deemed cold forging. The main advantageof hot forging is that as the metal is deformed work hardening effects arenegated by the recrystallization process. Cold forging typically results in workhardening of the piece.
http://en.wikipedia.org/wiki/File:ForgedConrodShowingEtchedSection-s.jpg


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Drop forging

Drop forging is a forging process where a hammer is raised up and then"dropped" onto the work piece to deform it according to the shape of the die.

There are two types of drop forging: open-die drop forging and closed-die dropforging. As the names imply, the difference is in the shape of the die, with theformer not fully enclosing the work piece, while the latter does.

Cold Forging

Cold Forging is a cold working process where the material is squeezed into adie and the finished parts assume the shape of the die. This process is alsoknown as Cold Heading.

Bar stock or wire stock is fed into a die and is squeezed into the closed die. Theresultant part is a nail, a bolt or a screw with the head. A subsequent coldheading operation forms other features on the head such as knurls or slots forscrew drivers etc. the shaping rod stock by forming the head as in rivets, bolts,nails and other fasteners. This process can be highly automated and parts can bemade economically.


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Most forging is done as hot work, at temperatures up to 2300 degrees F,however, a variation of impression die forging is cold forging. Cold forgingencompasses many processes -- bending, cold drawing, cold heading, coining,extrusions and more, to yield a diverse range of part shapes. The temperature of

metals being cold forged may range from room temperature to several hundredDegrees.


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Process Operations

Graphical depiction of process steps.

Process Capabilities

Cold forging encompasses many processes bending, cold drawing, coldheading, coining, extrusion, punching, thread rolling and more to yield a diverserange of part shapes. These include various shaft-like components, cup-shapedgeometry's, hollow parts with stems and shafts, all kinds of upset (headed) and

bent configurations, as well as combinations.Most recently, parts with radial flow like round configurations with centerflanges, rectangular parts, and non-axisymmetric parts with 3- and 6-foldsymmetry have been produced by warm extrusion. With cold forging of steelrod, wire, or bar, shaft-like parts with 3-plane bends and headed design featuresare not uncommon.Typical parts are most cost-effective in the range of 10 lbs. or less; symmetrical

parts up to 7 lbs. readily lend themselves to automated processing. Materialoptions range from lower-alloy and carbon steels to 300 and 400 seriesstainless, selected aluminum alloys, brass and bronze.There are times when warm forging practices are selected over cold forgingespecially for higher carbon grades of steel or where in-process anneals can beeliminated.

Often chosen for integral design features such as built-in flanges and bosses,cold forgings are frequently used in automotive steering and suspension parts,antilock-braking systems, hardware, defense components, and other applicationswhere high strength, close tolerances and volume production make them aneconomical choice.In the process, a chemically lubricated bar slug is forced into a closed die underextreme pressure. The unheated metal thus flows into the desired shape. Asshown, forward extrusion involves steel flow in the direction of the ram force. Itis used when the diameter of the bar is to be decreased and the length increased.

Backward extrusion, where the metal flows opposite to the ram force, generateshollow parts. In upsetting, the metal flows at right angles to the ram force,increasing diameter and reducing length.


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COLD FORGING

Process Operations

1. Forward extrusion reduces slug diameterand increases its length to produce parts suchas stepped shafts and cylinders.

2. In backward extrusion, the steel flowsback and around the descending punch toform cup-shaped pieces.

3. Upsetting, or heading, a commontechnique for making fasteners, gathers steelin the head and other sections along thelength of the part.

Hot Forging Vs. Cold Forging

Hot forging and cold forging are two different metal forming processes thatdeliver similar results. Forging is the process of deforming metal into a

predetermined shape using certain tools and equipmentdeformation is

accomplished using hot, cold, or even warm forging processes. Ultimately, themanufacturer will look at a number of criteria before choosing which type offorging is best for a particular application.


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The Hot Forging Process

When a piece of metal is hot forged it must be heated significantly. The averagetemperatures necessary for hot forging are:

Up to 1150 degrees Celsius for Steel 360 to 520 degrees Celsius for Al-Alloys 700 to 800 degrees Celsius for Cu-Alloys

During hot forging, the temperature reaches above therecrystallization point of the metal. This kind of extremeheat is necessary in avoiding strain hardening of themetal during deformation. In order to prevent theoxidation of certain metals, like super alloys, a type of

hot forging called isothermal forging is a good choice. Inisothermal forging, the metal deformation occurs within a highly controlledatmosphere, similar to that of a vacuum.


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Hot Forging Considerations

Traditionally, manufacturers choose hotforgingfor the fabrication of partsthat have a greater influence in the technical arena. Hot forging is alsorecommended for the deformation of metal that features a high formabilityratio. Other considerations for hot forging include:

1. Production of discrete parts2. Low to medium accuracy3. Scale Formation4. Low stresses or low work hardening5. Homorgenized grain structure6. Increased ductility7. Eliminiation of chemical incongruities

Possible disadvantages of hot forging include:

Less precise tolerances Possible warping of the material during the cooling process Varying metal grain structure

Possible reactions between the surrounding atmosphere and themetal
http://www.thomasnet.com/products/forgings-30793608-1.html%22http://www.thomasnet.com/products/forgings-30793608-1.html%22http://www.thomasnet.com/products/forgings-30793608-1.html%22http://www.thomasnet.com/products/forgings-30793608-1.html%22


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Cold Forging

Cold forging deforms metal while it is below its recrystallization point. Coldforging is generally preferred when the metal is already a soft metal, likealuminum. This process is usually less expensive than hot forging and theend product requires little, if any, finishing work. Sometimes, whenaluminum is cold forged into a desired shape, it is heat treated tostrengthen the piece. This is called "tempering."

The Cold Forging Process

Despite the word "cold," cold forging actually occurs at or near roomtemperature. The most common metals in cold forging applications areusually standard or carbon alloy steels. One of the most common types of

cold forging is a process called impression-die forging, where the metal isplaced into a die that is attached to an anvil. The metal is then hit by adescending hammer and forced into the die. Depending on the product, thehammer may actually be dropped on the metal numerous times in a veryrapid sequence.


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Cold Forging Considerations

Manufacturers may choose cold forging over hot forging for a number ofreasonssince cold forged parts require very little or no finishing work,that step of the fabrication process is often dispensable, which saves money.Cold forging is also less susceptible to contamination problems, and thefinal component features a better overall surface finish. Other benefits ofcold forging include:

Easier to impart directional properties Improved interchangeability Improved reproducibility Increased dimensional control Handles high stress and high die loads

Produces net shape or near-net shape parts

Some possible disadvantages include:

Easier to impart directional properties Improved interchangeability Improved reproducibility Increased dimensional control Handles high stress and high die loads

Produces net shape or near-net shape parts The metal surfaces must be clean and free of scale before forging

occurs The metal is less ductile Residual stress may occur Heavier and more powerful equipment is needed Stronger tooling is required


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DISTRIBUTION CHANNEL

Product distribution (or place) is one of the four elements of the marketing mix.An organization or set of organizations (go-betweens) involved in the process of

making a product or service available for use or consumption by a consumer orbusiness user.The other three parts of the marketing mix are product, pricing, and promotion.

The distribution channelDistribution is also a very important component of Logistics & Supply chainmanagement. Distribution in supply chain management refers to the distributionof a good from one business to another. It can be factory to supplier, supplier toretailer, or retailer to end customer. It is defined as a chain of intermediaries;

each passing the product down the chain to the next organization, before itfinally reaches the consumer or end-user. This process is known as the'distribution chain' or the 'channel.' Each of the elements in these chains willhave their own specific needs, which the producer must take into account, alongwith those of the all-important end-user.

Channels

A number of alternative 'channels' of distribution may be available:

Distributor, who sells to retailers via direct marketing, or brokers can also beused, Retailer (also called dealer or reseller), who sells to end customersDirect Distribution (Direct Marketing), where an organization sells its productsdirectly to the end customer. For example in case of online purchases (InternetMarketing and E-commerce) there will be the seller and customer. For this theseller and the customer may depend on various shipping providers.

Advertisement typically used for the consumption goods

Distribution channels may not be restricted to physical products from producerto consumer in certain sectors, since both direct and indirect channels may beused. Hotels, for example, may sell their services (typically rooms) directly orthrough travel agents, tour operators, airlines, tourist boards, centralizedreservation systems, etc. process of transfer the products or services fromProducer to Customer or end user.There have also been some innovations in the distribution of services. Forexample, there has been an increase in franchising and in rental services - thelatter offering anything from televisions through tools. There has also been

some evidence of service integration, with services linking together, particularlyin the travel and tourism sectors. For example, links now exist between airlines,


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hotels and car rental services. In addition, there has been a significant increasein retail outlets for the service sector. Outlets such as estate agencies and

building society offices are crowding out traditional grocers from majorshopping areas.

Channel decisions

Channel Sales is nothing but a chain for to market a product through differentsources.Channel strategyGravity & adventurePush and Pull strategyProduct (or service)CostConsumer location

Managerial concerns

The channel decision is very important. In theory at least, there is a form oftrade-off: the cost of using intermediaries to achieve wider distribution issupposedly lower. Indeed, most consumer goods manufacturers could never

justify the cost of selling direct to their consumers, except by mail order. Manysuppliers seem to assume that once their product has been sold into the channel,

into the beginning of the distribution chain, their job is finished. Yet thatdistribution chain is merely assuming a part of the supplier's responsibility; and,if they have any aspirations to be market-oriented, their job should really beextended to managing all the processes involved in that chain, until the productor service arrives with the end-user. This may involve a number of decisions onthe part of the supplier:

Channel membership

Channel motivation

Monitoring and managing channels

Type of marketing channel

Intensive distribution - Where the majority of resellers stock the 'product' withconvenience products, for example, and particularly the brand leaders inconsumer goods markets (price competition may be evident).Selective distribution - This is the normal pattern (in both consumer andindustrial markets) where 'suitable' resellers stock the product.Exclusive distribution - Only lambard specially selected resellers or authorized

dealers (typically only one per geographical area) are allowed to sell the'product'.


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Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales

and service support. Motivating the owners and employees of the independentorganizations in a distribution chain requires even greater effort. There aremany devices for achieving such motivation. Perhaps the most usual is`incentive': the supplier offers a better margin, to tempt the owners in thechannel to push the product rather than its competitors; or compensation isoffered to the distributors' sales personnel, so that they are tempted to push the

product. Julian Dent defines this incentive as a Channel Value Proposition orbusiness case, with which the supplier sells the channel member on thecommercial merits of doing business together. He describes this as selling

business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and distributionactivities need to be monitored and managed, so will those of the distributionchain.In practice, many organizations use a mix of different channels; in particular,they may complement a direct sales force, calling on the larger accounts, with

agents, covering the smaller customers and prospects. These channels showmarketing strategies of an organization. Effective management of distributionchannel requires making and implementing decision in these areas.


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The Nature of Distribution Channels

Most businesses use third parties or intermediaries to bring their products tomarket. They try to forge a "distribution channel" which can be defined as

"all the organizations through which a product must pass between its point ofproduction and consumption"

Why does a business give the job of selling its products to intermediaries? Afterall, using intermediaries means giving up some control over how products aresold and who they are sold to.

The answer lies in efficiency of distribution costs. Intermediaries are specialistsin selling. They have the contacts, experience and scale of operation which

means that greater sales can be achieved than if the producing business tried runa sales operation itself.

Functions of a Distribution Channel

The main function of a distribution channel is to provide a link betweenproduction and consumption. Organizations that form any particular distributionchannel perform many key functions:

Information Gathering and distributing market research and intelligence

- important for marketing planningPromotion Developing and spreading communications about offers

Contact Finding and communicating with prospective buyers

Matching Adjusting the offer to fit a buyer's needs, including grading,assembling and packaging

egotiation Reaching agreement on price and other terms of the offer

Physicaldistribution

Transporting and storing goods

Financing Acquiring and using funds to cover the costs of thedistribution channel

Risk taking Assuming some commercial risks by operating the channel(e.g. holding stock)

All of the above functions need to be undertaken in any market. The question is- who performs them and how many levels there need to be in the distributionchannel in order to make it cost effective.


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Numbers of Distribution Channel Levels

Each layer of marketing intermediaries that performs some work in bringing theproduct to its final buyer is a "channel level". The figure below shows some

examples of channel levels for consumer marketing channels:

In the figure above, Channel 1 is called a "direct-marketing" channel, since ithas no intermediary levels. In this case the manufacturer sells directly tocustomers. An example of a direct marketing channel would be a factory outletstore. Many holiday companies also market direct to consumers, bypassing a

traditional retail intermediary - the travel agent.

The remaining channels are "indirect-marketing channels".

Channel 2 contains one intermediary. In consumer markets, this is typicallya retailer. The consumer electrical goods market in the UK is typical of thisarrangement whereby producers such as Sony, Panasonic, Canon etc. sell theirgoods directly to large retailers such as Comet, Dixons and Currys which thensell the goods to the final consumers.


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Channel 3 contains two intermediary levels - a wholesaler and a retailer. Awholesaler typically buys and stores large quantities of several producers goodsand then breaks into the bulk deliveries to supply retailers with smallerquantities. For small retailers with limited order quantities, the use of

wholesalers makes economic sense. This arrangement tends to work best wherethe retail channel is fragmented - i.e. not dominated by a small number of large,powerful retailers who have an incentive to cut out the wholesaler. A goodexample of this channel arrangement in the UK is the distribution of drugs.

THE COMPANY USES ZERO LEVEL DISTRIBUTION CHANNEL AS

COMPANY SUPPLY IT PRODUCT DIRECTLY TO THE CUSTOMER

ACCORDING TO THEIR NEED AND REQUIREMENTS.


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SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluatethe Strengths, Weaknesses, Opportunities, and Threats involved in a project orin a business venture. It involves specifying the objective of the businessventure or project and identifying the internal and external factors that arefavorable and unfavorable to achieve that objective.

We believe that along with dedication and commitment of each and everymember of CSR towards understanding and fulfilling the customer needs, thefollowing strengths would help us to cater large customer base.

STRENGTHS

Capabilities of wide cold forged product profile across Auto & Non-Autosegments.

Full Service Supply Capability.

ISO 9001:2008 certified from TUV Nord.

State-of-art facilities.

Cost efficiency.

WEAKNESSES

Retreatment plant is not there with the company to re-utilize theresources.

Company Machinery is not able to meet up the requirements by thecompany as setup cost of new machinery involved.


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OPPORTUNITIES

Target new region where industries are more.

Introducing new plants in more parts of the world to target moreconsumers.

THREATS

Threat of entrant of new competitors in the market.

Introduction of new technology and its set up cost.


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RESEARCH METHODOLOGY

The data needed to this project report is collected by secondary data only.This secondary data is fully equivalent to primary data.

The analysis of study was achieved by using simple statistical tools liketrend analysis and displayed by line graphs.

Considerations for the research defined by CSR FORGING PVT. LTD.

The products should of hot forging or cold forging.

The components should not weight more than 4 kilograms.

The product dimension should be less than 60 mm.

The components should be manufactured from less than 1000 pressureton machines.


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FINDINGS

The US represents the biggest aerospace market that the company can try

to target.

Growth in the last 4 years has been 41.3%.

Types of aircrafts -Civil aircraft and Military aircraft. It is estimated that

by the year 2027, the worlds airlines will take delivery of29,400 civil

airplanes with a total value of US$ 3.2 Trillion to keep pace with the

growing demand for air travel.

The Chinese aerospace sector ranks among the worlds most dynamic

sector due to the massive investment injected by the country.

In future, developing economies such as China, Mexico and Brazil are

expected to emerge as huge marketplace for aerospace products.


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RECOMMENDATION

The company should enter into non automobile sectors like

1. Aerospace industry2.Heavy Engineering industry3.Earthmoving and Construction Equipment Industry

The companys domestic sales and export business would grow if startproducing aerospace components.

Entering Heavy Engineering industry and Earthmoving and Construction

Equipment Industry would increase the companys revenue.

The company should install machines which are advance in technology tobe competitive in non-automobile Industry.

The company should invest more in research and development activities


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CONCLUSION

The company produces the product and services according to the sample that

the customer likes and after that the product is sent for manufacturing.The company main motive is to satisfy the customer with their product andservices so that they could have a good relationship with the customer.

CSR Forging Private Limited is a manufacturer and supplier of criticalapplication Cold Forged Fasteners /Components. Its aim is to include virtuallyevery global automotive OEM and Tier I supplier. CSR is simultaneouslyimplementing capacity expansion program, which on completion will enable itto cater larger market opportunities even more aggressively and capture larger

market share.

THE COMPANY USES ZERO LEVEL DISTRIBUTION CHANNEL AS

COMPANY SUPPLY IT PRODUCT DIRECTLY TO THE CUSTOMER

ACCORDING TO THEIR NEED AND REQUIREMENTS.


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BIBLIOGRAPHY

Degarmo, E. Paul; Black, J T.; Kohser, Ronald A. (2003), Materialsand Processes in Manufacturing(9th ed.), Wiley, ISBN 0-471-65653-4.

http://www.csrforging.com

http://en.wikipedia.org/wiki/Forging

http://www.google.co.in/

distribution channel of csr forging pvt. ltd

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