my sip report
TRANSCRIPT
SUMMER TRAINING REPORT ON
INCREASE IN SALE IN ORGANISED/UNORGANISED SECTOR IN THE ALUMINIUM EXTRUSION INDUSTRY THROUGH MARKETING
EFFORT OF EXPANISION AND RETENTION
For
INDO ALUSYS INDUSTRIES LIMITED
Under the supervision
Of
Mr. Gagan Jain
(Deputy Manager Marketing)
Duration- 18th May-19th July,2016
Manish Singh
New Delhi Institute Of Management
PGDM 2015-2017
1
ACKNOWLEDGEMENT
At the outset I would like to place on record my gratitude to all concerned respectable executives of Indo Alusys Industry Ltd., Delhi for giving me this opportunity of Internship which has been a pure learning experience and has enlightened my knowledge and skills in the industry.
I would also like to express my gratitude towards the New Delhi Institute Of Management for giving me the opportunity to undergo two months internship at Indo Alusys Industries Ltd.
I am extremely thankful to Mr. Gagan Jain, Deputy Manager, who has been my industry mentor and has helped me immensely to relate theoretical concepts to actual business scenario and has guided me throughout the internship period. I am indeed greatly indebted to him and everybody concerned at Indo Alusys who have provided me with valuable guidance that contributed to the successful completion of this marketing project.
Manish Singh
PGDM(2015-2017)
New Delhi Institute Of Management
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CONTENTS
SL. NO. DESCRIPTION PAGE NO.
1 Introduction to the project
1.1 Company Background1.2 Overview of the industry1.3 Major players in Indian Aluminium Industry1.4 Extrusion industry1.5 Aluminium consumption in Extrusion Industry1.6 Extrusion industry in Delhi/NCR1.7 Sale in Retail sector2 Job assigned/Title2.1 Key responsibilities2.2 Stages of the project2.3 Brief description of the problem3 Objective of study4.1 Methodology4.2 Questionnaire4.3 Project constraints5 Collection and analysis of data5.1 Chapter summary5.2 Data analysis5.3 Observations5.4 Market analysis6 Findings7 Swot analysis8 Recommendations9 Conclusion
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10 Bibliography
1. Introduction to the project
1.1 Company Background
Brief Insight of Indo Alusys Inds. Ltd.:
The story of Indo Alusys Industries Ltd. (IAIL) formerly Mahavir Aluminium Ltd. is one of innovation, dedication and diversification since our inception in 1982. They have established themselves as a leading manufacturer of Aluminium Extruded Products / Profiles in India. Besides being a pacesetter for the industry, they have acquired an able track record of rendering satisfactory services to our valuable customers in India and globally.
IAIL plant is located 70 kms from the capital of India, New Delhi in the highly developed Industrial Area of Bhiwadi in the Alwar district of Rajasthan and its Marketing office is at Tolstoy Marg ,Connaught Place, New Delhi-10001.
IAIL has Hydraulic Extrusion Presses of 2100 US tonnes, 1650 US tonnes, 1250 US tonnes and 1100 US tonnes capacity. The operations are controlled by Micro-processor based technology and programmable logic control (PLC) system for the above extrusion presses. Furnaces are equipped with fuel efficient regulative burners. Our installed capacity has now reached to 22,000 MTPA to meet the ever increasing demands of the market.
The Plant has a most modern foundry to cast high quality Aluminium alloy billets applying hot top casting process. The alloy composition of the billets is controlled by computerized spectrometer at the stage of melting and subsequent casting. The plant also has sophisticated extrusion handling systems / equipments, which includes Automatic Extrusion Pullers and other related equipment like Lift-off Conveyer, Walking Beam, Storage / Transfer Conveyer, Saw Conveyer etc. to avoid manual handling and to produce scratch free material suitable for subsequent treatments like Anodizing, Electro Coloring
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and Powder Coating. The technology has been acquired from USA, Germany and Italy.
IAIL has the distinction of being the only extrusion Company in India to have ISO 9002 and ISO 14001:2004 Certification from world renowned certifying agency DET NORSKE VERITAS (DNV) of Netherland.
At IAIL quality is thoroughly checked through a series of quality control measures that are applied at every stage of operation to ensure ''ZERO DEFECT.'' Very strict and close control of raw material Aluminum and its alloys is achieved by analyzing and controlling chemical composition through a computerized spectrometer.Extrusion dies which form the heart of an extrusion process are manufactured in house by computerized CNC Milling and CNC Wire Cut machine and Spark-Erosion-cum-Electrical Discharge machines and subsequently polished through super finish polishing machine to achieve a very high degree of dimensional accuracy, close tolerances and smooth surface finish for its extruded profiles and sections. IAIL offers wide range of extruded profiles for all major end use segments and have approximately 8000 dies to cater to high quality extrusion requirements in various industry sectors.
IAIL has its in-house facilities for anodizing and electro coloring with sophisticated technology acquired from Italy. Anodizing and Electro Coloring is an electro chemical process which gives an anodic thickness of the desired microns. According to the requirement this can be deployed by making available natural (Mat/Satin), very light bronze, medium bronze, dark bronze and black shades. Besides these colors, IAIL has processes for various other colors to suit the requirement of its customers with up to 30 microns and length up to 6.2 meters.
IAIL has powder coating facility, which is the ultimate and latest in architectural field. Powder coating of polyester, or epoxy powder paints are excellent in their quality that contains 100 percent solid material. This is without non-essential or superfluous components being applied to the objects by one of the well-known methods of electrostatic charging. Theycan undertake powder coating of aluminium extruded profile of length of 25 feet / 7.62 meter in different colours.
IAIL can supply the material in various color shades with coating of 60 to 80 microns or more as per requirements of its customers.
Stable, rich and uniform color surface
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Excellent durability after special electro chemical treatment Anti Corrosion and weathering of colored surface against air pollution, sunrays
and humidity No discoloration by ultra-violet rays More than 60 percent of the aluminium products in the world are produced by
this process. This process is acknowledged as better as and more economical than any other process.
A minimum quantity of 3000 kg in one specification is acceptable in case of sections included in this catalogue. In case of enquiry for a new section, a minimum quantity of 5000 kg is acceptable. By “specification” theymean section number cut length, alloy and temper, packing etc.
Indo Alusys is also known for manufacturing high utility pre fabricated components that are customized as per the application requirements of the customers. These ready to assemble components are developed in innovative patterns, our products are developed as per the industrial specifications on quality and design.
Indo Alusys Aluminium Products
Building & ConstructionModern architecture has been renovated and redefined ever since the introduction of Aluminum Extrusions. These have high utility when it comes to supporting load bearing structures, glass buildings, facades claddings, window, roofing, scaffolding, architectural hardware, expansion joints, etc.
IAIL: Structuring building and Construction industryThe name IAIL and the sophisticated Aluminum building systems of today have become inseparable as the company has earned recognition worldwide for bringing products that are attune with highest technological standards. For Indo Alusys innovation is the guiding principle enabling diversification of aluminium profiles and products to suit the changing requirements of architecture and construction. Our building solutions have been crafted from the finest quality alloy and have reflective surface finishing for light management and reducing the energy consumption. Our vision extends one step beyond the buildings to the lifestyle of its occupants and their convenience. The wide array of architectural building profile offered by us has the strength to ward off UV rays and ensure natural ventilation.
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Other stand out aspects of IAIL are: In house die development unit equipped Ultra-modern AutoCAD technique for
die developments Upholding our client oriented image they provide ultrasonic test when
specifically demanded by customers Hi-tech foundry and tool room ensuring international quality range Empowered by a highly sophisticated Anodizing and Electro Coloring
techniques imported from Italy they provide extruded products for the building and construction industry in following colors:
o Natural anodized (Mat/Satin)o Very light bronzeo Medium bronzeo Dark bronzeo Black shades
AutomobilesAluminium extruded profiles with high tolerance and light weight are extensively used as part of automobile components. Indo Alusys manufactures a diverse array of dimensionally accurate extruded profiles for the automobile industry.
Aluminium is the solution both for the simplest and most complicated demands of the industry. Being a versatile metal its capacity knows no boundary, as it is flexible and it can be easily moulded into the most advanced designs and has herculean strength. Prudently utilizing the aluminium advantage Indo Alusys has emerged as a foremost enterprise, manufacturing both standard and customized Aluminium extruded products. Innovative designs and an in-depth understanding of the modern automobile needs have enabled IAIL to earn a place of trust and confidence in the automobile sector. Excellence, accuracy and consistency are the significant criterion defining the level of our commitment since the inception of the company.
Extrusion ProcessThe theory that works for aluminium extrusion is based on control and management; factors such as temperature, speed, tooling design and timing have to be cautiously monitored and controlled. The professional team at Indo Alusys performs each step carefully starting from heating of aluminium billet, pressing through custom-made die, cooling and stretching thereby ensuring that profiles are straight. In addition to this, relevant measures are taken to provide aluminium profiles having precise functional dimensions, proper surface quality
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and high tensile strength. Aluminium Extrusions are extremely suitable for manufacturing complicated parts of the automobiles. For instance low friction and hard wearing surface make aluminium perfect for sunroof channels while its use in roof rails increases the aesthetic appeal without augmenting the total weight of the vehicle. Extruded aluminium is increasingly used in heat transfer parts of automobile like radiators and air conditioning due to attributes like high ductility and thermal conductivity.Serving the Automobile SectorThe clientele of Indo Alusys includes some of the renowned manufacturers of buses, tractors, two wheelers and heavy vehicles. The demand for aluminium extruded components and profiles manufactured by Indo Alusys is increasing in the transportation industry owing to light weight, tensile strength, flexibility and surface finish that helps in augmenting the fuel efficiency of the vehicles. It is the industrial experience of more than three decades that enables the company to multiply the potential of extruded aluminium making it ‘The Favorite Metal of the Automobiles’.
Value Addition by Indo AlusysAt Indo Alusys, theyunderstand the intricacies of automobile operations and thus theyprovide extruded aluminium components fabricated with expertise and as per the international standards that ensure impediment free functionality for our customers.
The alloy variants of Aluminium Extrusions produced by them are the following
6063 (HE9WP) 6061 (HE20WP) 6351 (HE30WP) 6005 6060 E1E E91E NE4 NE5 2024/7075 Series 6262, 2014 Solution Heat treated Alloys
As a client centric business enterprise they have the proficiency to provide these products in customized designs like specific cut lengths (1-8mtrs) and succeed in completing even the bulk orders within the promised schedule.
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Solar Aluminium PanelsPowered by industrial expertise theymanufacture highly efficient solar aluminium panels with world class attributes. Theyuse newest technologies in manufacturing solar aluminium panels that are slowly gaining acceptance and theyare updating our aluminium extrusions methodologies to successfully meet these demands.The company enjoys a great strength of having all required facilities under one roof and with a qualified team of experienced engineers and modern systems in place theyare able to produce high quality Aluminium Solar frames.
IAIL is an ISO 9001-2008 certified company.Theyare capable of supplying sections duly cut to size & finished (anodized) ready to use as Solar Frames. Our aluminium solar frame sections come in various shapes and sizes, to accommodate your specific applications. Our aluminium solar frame adopts connector or screw joint, resulting in well-fixed structure with great durability. The malleability of aluminium allows flexibility in the design of supports and frames for solar panels. Extruded aluminium tubing can be attached at atypical and exact angles while requiring fewer parts and connections. This provides the necessary accuracy in the alignment of the solar panels for maximum energy yield.Theyhave developed Solar Frames P.V. Cells for well repute Solar Industries.IAIL Aluminium is closely working with PV industry producing components for a range of products includes PV panel frame and mounting profiles. Theysupply quality aluminium extrusions, aluminium shapes, and fabricated aluminium parts to some of the most demanding companies in the PV industryAluminium extrusion is the metal of choice in solar frames because of its heat bearing capability, non-corrosive properties, and weather-resistant advantage of these solar panel architectures.Theycan make customized aluminium frames for solar power modules to meet the different specifications and requirements. Our production capability, product precision and quality have placed us as one of the best producers in the industry.
Engineering ApplicationsTheyare one of the prominent names, engaged in offering a comprehensive range of Aluminium Extrusion Products for diverse engineering and other related applications.
Our intact range of aluminium extrusions is available in varied sizes and dimensions, these extrusions are manufactured using premium quality aluminium that theyprocure from only known and certified global suppliers. There is always an upsurge and diversification in the demands of aluminium extrusion for engineering applications and subsequently theymodify our product
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array to suit the change industrial needs. Powered by ultra-modern techniques and extremely experienced workforce theysucceeded in manufacturing accurate aluminium extrusions for client’s specific applications. Theyhave the capacity to produce extrusions that appropriately complement applications such as precision engineering, medical instruments and industrial machinery.
Further, to make perfect range, theyhave employed a team of proficient quality inspectors who possess profound knowledge and vast experience in their respective realm. These inspectors stringently check products on certain parameters to ensure defect free / flawless range being delivered at the client. In order to attain absolute client satisfaction, theyalso offer complete customized solution and packaging facility as per the details / specifications given by the clients.
Aluminium Extrusion, Engineering applications & the benefitsExtrusion is a process, which mainly used to create objects of a fixed, cross-sectional sketch. At IAIL theyhave experts for drawing aluminium alloys through accurately shaped dies to manufacture an innovative range of engineering products and parts. Since its starting, aluminium extrusion process has been applied in a number of ways and today’s aluminium extruded products are highly demanded for numerous engineering applications in diverse industries. The entire manufacturing process starts with a design and extrusion helps in designing accurate shape and its diverse features result in weight reduction, easy assembly, functionality addition and reduced finishing costs. Also, aluminium extrusion is largely used in engineering industry for its varied other benefits and usages. Some are listed below:
Less Fabrication & Machining Require Low Maintenance Minimum Tooling Expenditure Light in Weight Reduce Fuel Costs High Structural Efficiency More Design Scope
In addition to this, there are certain specific measures that Indo Alusys undertake in the entire extrusion process to design and developStated below are some other benefits of aluminium in amalgamation with the extrusion process that make a cost-effective product with finest functionality and tough exterior they ensure
Consistent wall thickness Employability Exceptions & soft lines
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Fewer cavities in hollow sketches Heat sinks
ElectricalAluminium represents the second largest metal market at the global platform. It is one of the most abundant metals in the earth’s crust but can be obtained only in the combination of bauxite. Also, aluminium is the only metal that is lighter than steel and its fabrication take a lot of energy- 17.4 megawatt hours of electrical energy to merely generate 1 metric ton of aluminium, which is three times more than steel. Aluminium is also used in various high utility products, such as household electronics right from kitchen appliances to bathroom accessories, air conditioners and televisions to CD/ DVD players. With their different benefits and endless possibilities, aluminium extrusion products are boon to electrical industry.
IAIL: A trusted name among the manufacturers in electrical industrySuccessfully catering to the diverse needs of electrical industry, Indo Alusys a prominent name in the aluminium industry is engaged in offering aluminium extrusions to its clients spread across the domestic as well as international markets. Manufactured using finest grade raw material and other essential resources, theyat IAIL succeed in giving desired shape and accurate designs to its products developed specifically to meet different electrical applications. The qualitative array offered by the company is lightweight and ready to assemble. In addition to this, our expert team and advanced techniques also ensure, value added functionalities, and reduced finishing costs. Moreover, to attain complete client satisfaction, Indo Alusys has appointed a dexterous team of professionals that keeps vigil eye on each stage right from designing to manufacturing. These professionals also ensure that every product is designed and developed in compliance with the set quality standards.
Aluminium: Perfectly complementing diverse electrical applicationsAluminium is highly popular metal that can be recycled easily, so it is an obvious choice for many electrical applications. Aluminium tubing, wires, cables, etc., are largely used in various electrical products such as computers, circuit boards, and printers as aluminium does not sticks to magnets under normal conditions. Features that make aluminium perfect for electrical applications are mentioned below:
Light weight Corrosion resistance
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Efficient conductor Cost effective Minimum maintenance
Being an ISO 9001:2008 certified company; Indo Alusys is manufacturing supreme quality aluminium extrusions that are extensively used in electrical industry.
Aluminum ArchitecturalThe Aluminium Architectural Division is one of the leading Fabricators of Architectural Aluminium doors, windows, and Curtain walls, Structural Glazing, Aluminium Composite Panel, Scaffolding, Facades, Cladding, Skylight and other specialized Aluminium Architectural Products.
Theyhave in house design department and theyare capable of proposing system for the above work and also preparation of the shop drawings before start of fabrication. Theyhave more than 40 systems related to all categories and innovative designed in house die shop to develop dies for various profiles as per the requirements. As a technology driven entity theyhave acquired and installed most modern machines in our factories such as Head mitre saw, Double hand mitre saw, milling machine, CNC engraving, Die shop CNC, hydraulic crimping machine, drilling, assembly tables, bending machines and Milling machines.They currently have over 300 people working in this department and still growing our resources to trigger the seamless functionalities in this division. They also have stock of approximately 4,000 dies, of which about 1,500 are exclusive dies of some of our prestigious customers.They have in house facility for anodizing, electro colouring and powder coating using advance technology acquired from Italy. Theyare fully equipped to undertake anodizing and pure polyester powder coating of Aluminium profiles as per the customer requirement.The division is associated with most of the big and reputed builders in NCR and they have completed several projects to the satisfaction of our clients.The product systems conform to the international quality standards on insulation, stability and functional performances and guarantee air-tightness, noise reduction (up to 55 db.), structural stability, thermal insulation acoustic insulation, safety, security and smooth operability.The features of the architectural products are as under:
Air & Water tightness Structural Stability Sound Insulation Thermal Insulation
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Aluminum Alloy IngotsIAIL is one of the most renowned manufacturers of aluminum alloy ingots that adopt sustainable and energy efficient methods to produce aluminum alloy. Our plant has an ultra-modern Foundry having instinctual facilities to melt and cast durable Aluminum Alloy Billets of fine quality.
Our wide range of aluminum alloy ingots having different sizes and structures are the source of supply to major ancillary companies of automotive sector. Having a manufacturing facility within the auto component hub offers a great locational advantageThe covered shed for Aluminium Alloy Ingots has proper arrangement for hand sorting for the mechanization of Cold Refining to achieve higher productivity and better sorting which allows removal of various low grade materials.
TechnologyWe have a technical department which includes hot refining, cold refining, production planning and control, quality and process control, maintenance and project and new developments, each being handled by highly experienced and qualified engineers.Since this division is producing prime raw material, its customers are regular/recurring.
LocationWe are a technology driven business enterprise that has acquired ultra modern machines to offer aluminum alloy ingots that are durable, reliable and serve diverse industrial purposes out manufacturing plant is strategically located in the auto manufacturing hub of Manesar, Guragon and Bhiwadi. One of the biggest advantages of the location is that it enables us to timely deliver to all auto manufactures in north India.
Indo Alusys CapacityThis helps in facilitating the ever increasing demands of the automobile industry. We are a growth oriented company that monitors technological inventions to set up highly advanced production techniques within our ingots manufacturing unit. Attaching significance to eco-friendly industrial practices indo Alusys recycles scrap aluminium to produce alloy ingots. We are a major supplier of alloy ingots top leading ancillary companies of automotive sector
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Quality AssurancesWe are accredited with ISO 9001:2008 certified from DNV of the Netherlands and other international certifications for quality. In order To ensure our alloys conform to these standards, a hi-tech quality testing facility is built in our unit. We have a well quipped lab that analyses raw material and finished products is on distinct quality parameters. IAIL offers ingot in different metal consistencies in order to cater to the specific requirements of the clients in automobile sector
Advantage IAIL Alloy IngotsWe have the repute of manufacturing and supplying a wide range of alloy ingots that are in complete compatibility with Euro six norms. fabricated from the finest quality alloy the offered products are valued for increasing the fuel efficiencies of automobiles and reducing the power consumption The entire range is highly recyclable an aspect that is in sync with environment as well as sustainable development.
CableAerial Bunched CablesDistributing power to individual consumers by utility service providers like Electricity Boards/ Distributing authorities have widely accepted the novel concept of Overhead Power Distribution through Aerial Bunched Conductor over the bare conductor overhead distribution system. When compared to the conventional, ABC provides higher safety and reliability, lower power losses and ultimate system economy by reducing installation, maintenance and operative cost. This system is ideal for rural distribution and especially attractive for installation in difficult terrains such as hilly areas, forest areas, coastal areas etc. These cables are being designed, manufactured & tested conforming to IS: 14255, IS: 6474 or REC & other international specifications. ABC is also considered to be the choice for power distribution in congested urban areas with narrow lanes and by-lanes. In developing urban complex, ABC is the better choice because of flexibility for re-routing as demanded by changes in urban development plan.
XLPE/PVC Insulated Power & Control Cables of "INDO CABLE" brand of voltage grade 650/1100 Volts provided with ISI marking against IS:7098, IS:1554 & IS:694 (for flexible) are regularly manufactured following stringent quality checks at all stages by sophisticated testing & measuring equipments in its modern state of-art located at Bhiwadi meeting huge demand in areas of Power Transmission & Distribution, Control Circuits in Power plants and other
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industrial installation and signaling network of Railways with or without FR/FRLS properties including House/Industrial wiring
LT XLPE CablesOffering a wide gamut of L T XLPE cables of assorted Sizes & type are light in weight and carry higher current capacity. They are capable to withstand short circuit temperature and emergency overload. These cables consist of carbon and hydrogen compounds, which essentially contain low-density polyethylene molecules in the form of long flexible chains. On crosslinking, slippage between flexible chains can be prevented. Cross-linked polyethylene (XLPE) is a thermosetting compound. It softens at the melting point of polyethylene (85°C to 115°C) and assumes an elastic rubber like consistency, a property that it retains during further rise of temperature until it becomes carbonized without melting at 250°C to 300°C. All this strengthens LTTXLPE cables against stress cracking and gives them a greater resistance to fight ageing in hot air.
1.1 KV PVC Power CablesThe Power Cables are used underground as well as overhead transmission of power in power plants, industries, projects, Transmission & Distribution and all other electrical systems. Different combinations such as Aluminum, Copper conductors, round solid conductor, stranded conductors, sector shaped conductors, taped inner sheath, extruded inner sheath, Round steel and aluminum wire / Flat galvanized steel strip Armored/ unarmored, single/double outer sheathed etc. are available.Types of insulation include PVC, HR PVC, and XLPE. The inner & outer sheaths can be PVC, HR PVC, FRLS, HR-FRLS or FR depending upon the application and requirement of customers.INDO CABLE manufactures different types of cables with combinations of specifications as mentioned above as per IS 1554 Part I for cables up to 11000.
1.1 KV PVC Copper Power & Control CablesThese cables are also used for underground as well as overhead transmission of power to the control panels in Power plants, Industries, Project and all the electrical systems.Different variations such as round solid conductor/stranded conductors, taped inner sheath/extruded inner sheath, Round steel/aluminum wire/Flat galvanized steel strip Armored/ unarmored, single/double outer sheathed etc. are available. Types of insulation include PVC, HR PVC. The sheath can be PVC, HR PVC, FRLS, FR or HR-FRLS depending upon the application. INDO CABLE manufactures all above combinations as of 1.1 KV Qrade Control cables as per IS 1554 Part I from two cores to 61 cores in 1.5 and 2.5 sq. mm sizes.
Conductors
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IAIL is emerging as pioneer provider of power transmission conductor - the Brand INDO Cable started manufacturing and marketing Bare Aluminum Conductors for Overhead Power Transmission & Distribution Lines
Professionalism of the highest caliber, inspired vision and drive for product innovation contributed to the success of the business in a competitive market both in the domestic front and exports.Within easy reach of the northern- Region has the manufacturing plants, located in the States of Rajasthan with present installed capacity for AAC AAAC ACSR, ACAR, ACSR, AACSR and COPPER Conductor & vast range of PVC/ XLPE, Railway Signaling ,Quad cable, Instrumentation cable &ABC Cables.In short span of time, the company has been consistently focusing to manufacture multi- stranded conductors of various sizes of AAC AAAC ACSR, ACAR, ACSR, AACSR and COPPER Conductor covering the entire range of high voltage transmission and distribution lines from 0.4 KV to 400 KVApart in domestic market the INDO ALUSYS will created a reputation for its AAC AAAC ACSR, ACAR, ACSR, AACSR and COPPER Conductor in overseas market too and will share in line with bulk exports of AAC AAAC ACSR, ACAR, ACSR, MCSR and COPPER Conductor by executing export orders for conductors.As we continue to accord our self-focusing on developing new energy saver product to meet the upcoming demands of marketProduction of ConductorsIndo Alusys is producing following types of AluminiumConductors i.e.
All Aluminium Conductors (AAC) Aluminium Conductor Steel Reinforced (ACSR) All Aluminium Alloy Conductor (AAAC)
AAC: This conductor is manufactured from electrolytically refined (E.C.GRADE) aluminium, having purity of minimum 99.5% of aluminium. This conductor is used mainly in urban areas and the
supports are close. All aluminium conductors are made up of one or more strands of aluminium wire depending on the end usage. These conductors are also used extensively in costal because it has a very high degree of corrosion resistance.
ACSR: Vide range of aluminium conductors steel reinforced (ACSR) consists of stranded steel core surrounded by E.C. grade aluminium. Available in a wide range of steel varying from 6% to 40 % of
steel reinforced aluminium conductors are used for in overhead ground wires, installations involving extra-long spans, etc.
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This conductor consists of a solid or stranded steel core surrounded by strands of aluminium (E.C. GRADE).
ACSR conductor is available in a wide range of steel varying from as low as 6% to as high as 40 %. The higher strength ACSR conductors are used for river crossings, overhead ground wires, installations involving extra-long spans etc. against any given resistance of conductor, ACSR conductor may be manufactured for having a wide range of tensile strength as per requirement. The principal advantages of these conductors are high tensile strength and light weight with longer spans as well as with lesser supports. Due to the greater diameter of ACSR conductors a much higher corona limit can be obtained causing big advantages on high as well as extra high voltage overhead lines.
AAAC: This conductor is made from aluminium- magnesium-silicon alloy of high electrical conductivity containing enough magnesium silicide to give it better mechanical properties after treatment. These conductors are generally made out of aluminium alloy 6201.
AAAC CONDUCTOR has a better corrosion resistance and better strength to weight ratio and improved electrical conductivity than ACSR CONDUCTOR on equal diameter basis.
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Production Capacity of ALUMINIUM and its Location (2011):
TABLE – IV
No. Key Products Location Capacity(TPA)
1 Alumina
Renukoot , UP
Belgaum ,Karnataka
Muri , Jharkhand
700000
350000
180000
1230000
2 AluminiumRenukoot , UP
Hirakud , Orissa
375000
143000
518000
3 Extrusions
Renukoot ( UP )
Alupuram ( Kerala )
33000
13000
46,000
4 Flat rolld
Products
Renukoot , UP
Belur ,W B 100000
18
Taloja , Maharashtra
Mouda ,Maharashtra
57000
50000
30000
237000
5 Red raw rods Renukoot ,UP 75000
6 Foil and Packaging
Kalwa , Maharashtra Silvassa , Dadra
Kollur , AP
6000
30000
4000
40000
7INDAL
WheelsSilvassa , Dadra 300000 Pcs
8 Foil rolling Kollur ,AP 4000
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1.2 Overview of the Industry
Aluminium Industry in India :
Aluminium Industry in India is one of the leading industries. It is an oligopolistic industry. It is developing fast and the advancement in its technologies is boosting the growth faster. The utilization of both international and domestic resources was significant in the rapid development of the Aluminium Industry. The Indian Aluminium Industry has a bright future as it can become one of the largest players in the global aluminium market as in india the consumption is fairly low; therefore the industry may use the surplus production to cater the international need for aluminium which is used all over the world for several applications such as aircraft manufacturing, automoble manufacturing, utensils etc.
Usage Pattern In India:
Aluminium is used in various sectors, such as transportation, packaging, building/ construction and electrical industry. However the usage pattern differs significantly for India and rest of the world. Globally, the automotive, packaging and the construction sectors are the major end users of aluminium, while in India the power sector consumes about 44 percent. Since aluminium is naturally resistant to corrosion aluminium building materials are suitable for excessive environments, such as swimming pool cover ( subject to chlorine attack ), or exposed structures within 50 meters of ocean ( such as port area ).
Aluminium Consumption In India –
Electrical 3249
Automotive 1886
Building & Construction 1362
Packaging 1153
Others 2830
Figure in 00, mts.
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Electrical31%
Automotive18%
Building And Construction13%
Packaging11%
Others27%
Fig. in ,00 Mts
Source: Aluminium Commodity Report, Infoline, 2014
The per capita consumption of aluminium in India continues to remain abysmally low at under 1 kg as against nearly 25 to 30 kgs in the US and Europe, 15 kgs in Japan, 10 kgs in Taiwan and 3 kgs in China. The key consumer industries in India are power, transportation, consumer durables, packaging and construction. Of this, power is the biggest consumer (about 44% of total) followed by infrastructure (17%) and transportation (about 10% to 12%). However, internationally, the pattern of consumption is in favour of transportation, primarily due to large-scale aluminium consumption by the aviation space.
Demand for aluminium is estimated to grow at 6%-8% per annum in view of the low per capita consumption in India. Also, demand for the metal is expected to pick up as the scenario improves for user industries, like power, infrastructure and transportation
India is world's fifth largest aluminium producer with an aluminium production competence of around 2.7 million tones, accounting almost 5% of the total aluminium production in the world. India is also a huge reservoir of Bauxite with a Bauxite reserve of 3 billion tones.
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India lies at the eighth position in the list of leading primary aluminium producers in the world. India saw a significant growth in aluminium production in the past five years. In 2016, the production target of aluminium in India laid by the Ministry of Mines, Government of India was 1,153 KT, which was augmented to 1,237 KT in the year (2017-18). Due to the growing demand from the construction, electrical, automobiles and packaging industry, the production of aluminium also hiked up. In FY 09, the total aluminium production in India was around 1.35 tonnes.
After a stagnant consumption of primary aluminium in India from the end of 1990s to 2002 (when the consumptions were between 500 – 600 KT), it started rising sharply since 2002. The consumption reached at 1,080 KT in 2006. The consumption of aluminium in India is dominated by the industries like power, infrastructure, and transportation etc.
The consumption pattern of aluminum in India is different from the global consumption pattern. The demand for the aluminum industry has been predominantly from the electrical sector. This sector is the largest end user of aluminum in India accounting for 36 % of the total aluminum demand. The transport sector contributes to another 22 % of the total demand while the consumer durable and packaging sectors consume 12 % each. The construction sector consumes 7% of the total aluminum demand. Total domestic consumption was about 0.55mn ton in FY98.
Per capita aluminum consumption in different countries
The consumption pattern of aluminum in India is different from the global
consumption pattern. The demand for the aluminum industry has been
predominantly from the electrical sector. This sector is the largest end user of
aluminum in India accounting for 36 % of the total aluminum demand. The
transport sector contributes to another 22 % of the total demand while the
consumer durable and packaging sectors consume 12 % each. The construction
sector consumes 7% of the total aluminum demand. Total domestic
consumption was about 0.55mn ton in FY98.
Per capita aluminum consumption in different countries
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CountriesConsumption
India 0.5
Japan 30.9
USA 26.9
Germany 30.1
Sweden 25.3
Switzerland 32.5
Italy 20.9
UK 11.1
France 17.7
Australia 17.9
Venezuela 8.2
Thailand 0.9
Malaysia 2.4
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CONSUMPTION OF NATIONS
India
JapanUSA
Germany
Sweden
Switzerland
Italy
UK
France Australia
Venezuela
Thailand Malaysia
0
5
10
15
20
25
30
35
1
India Japan USA Germany Sweden Switzerland Italy UK France Australia Venezuela Thailand Malaysia
1.3 Major players in Indian Aluminium Industry:
The aluminium industry in Northern INDIA is concentrated between 4 players :-
1. Indo Alusys Industries Ltd.
2. Bharat Aluminium Company ltd. (Balco) [Vedanta group]
3. National Aluminium Company ltd. (Nalco)
4. INDO ALUSYS Industries Ltd.
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ALUMINIUM SALES IN 2014 IN KILOTONNES
HINDALCO, 147.6, 49%
BALCO, 65.8, 22%
Indo Alusys, 14.4, 5%
IMPORTS, 46.1, 16%
SECONDARIES, 23.1, 8%
HINDALCO BALCO Indo AlussysIMPORTS SECONDARIES
Extruders in India:
1- INDO ALUSYS, ( AV Birla Group company)
INDO ALUSYS, an AV Birla Group company, is India’s largest aluminium producer and has the distinction of being one of the lowest cost producers of the metal in the world. It is an integrated player having captive bauxite mines, power units and high value-added output comprising semi-fabricated aluminium products. The company also has copper as its business segment, which it acquired recently from another group company, Indo Gulf.
2- Bharat Aluminium Company ltd. (Balco) [Vedanta group]
Bharat Aluminium Co. Ltd. (BALCO) was incorporated in the year 1965 as a Public Sector Undertaking (PSU). BALCO has several “firsts” to its credit. It is the first public sector enterprise in the country, which started producing aluminium in 1974. In 1987-88, a captive power plant of 270 MW was added to cater to the power requirement of the unit. BALCO has been the first in the Indian Aluminium Industry to produce the Alloy Rods, which is a Feedstock for
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all Aluminium Alloy Conductors, very much needed for today’s power transmission lines. Till 2001, BALCO was a public sector enterprise owned 100% by Government of India (GoI). In the year 2001, GoI divested 51% equity and management control in favour of Sterlite Industries (I) Limited. The development of special aluminium alloys for “Intermediate Range Ballistic Missile” – Agni and “Surface Missile” – Prithvi have been significant achievements of BALCO contributing to the nation’s defence capabilities.
BALCO is part of the fast moving Vedanta Resources, a London listed metals and mining major with Aluminium, Copper and Zinc operations in UK, India and Australia, and is on the threshold of a new growth phase.
3- National Aluminium Company ltd. (Nalco)
Nalco, is the largest producer of alumina and second largest producer of aluminium in the country. The company is self sufficient in the entire value chain encompassing mining of bauxite, refining of bauxite into alumina and smelting of alumina into aluminium. Nalco produces calcined alumina at its refinery and aluminium ingots, billets, strips, rolled products and wire rods at its smelter. While the surplus calcined alumina is almost entirely exported, wire rods, billets, strips and rolled products are sold in the domestic market. Ingots are sold in both the domestic as well as the international markets.
4- Indo Alusys Industry Ltd.
They have established themselves as a leading manufacturer of Aluminium Extruded Products / Profiles in India. Besides being a pacesetter for the industry, they have acquired an able track record of rendering satisfactory services to our valuable customers in India and globally.IAIL plant is located 70 kms from the capital of India, New Delhi in the highly developed Industrial Area of Bhiwadi in the Alwar district of Rajasthan and its Marketing office is at Tolstoy Marg ,Connaught Place, New Delhi-10001.
IAIL has Hydraulic Extrusion Presses of 2100 US tonnes, 1650 US tonnes, 1250 US tonnes and 1100 US tonnes capacity. The operations are controlled by Micro-processor based technology and programmable logic control (PLC) system for the above extrusion presses. Furnaces are equipped with fuel efficient regulative burners. Our installed capacity has now reached to 22,000 MTPA to meet the ever increasing demands of the market.
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The major advantages of using Aluminium are its remarkable properties:
i. Strength to weight ratio –
Aluminium has a density around one-third that of steel. This property is beneficial where high strength and low weight is required.
ii. Corrosion resistance of Aluminium- When the surface of aluminium metal is exposed to air, a protective oxide coating forms almost instantaneously. This oxide layer is corrosion resistant and can be further enhanced with surface treatments such as anodising.
iii. Light & Heat reflectivity of Aluminium –
Aluminium is a good reflector of both visible light and heat making it an ideal materials for roof-sheet.
iv. Recyclability of Aluminium –
When recycled, there is no degradation of properties vis-a-vis virgin materials. Further recycling only require 5% of the input energy required to produce virgin aluminium.
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1.4 ALUMINIUM EXTRUSION INDUSTRY
The total capacity for aluminium extrusions in India is about 400,000 tonnes. The industry is highly fragmented with over 60 manufacturers of aluminium extrusions Capacity .
The Indian Aluminium Extrusions Industry.The demand for aluminium extrusions in India was about 300,000 tonnes in 2014 Demand in India is still growing strong inspite of economic fluctuation The building & construction industry is the major consumer of aluminium extrusions in India Future growth will come largely from the solar industry and the industrial sector Usage in the automotive industry is still in a nascent stage.
Market size: 300,000 tonnes (2015) Industrial 28% Transportation Building 12% & Construction 60%
28%
12%
60%
Market size: 300,000 tonnes (2015)Industrial Transportion & Building Construction
1-70% of the Aluminium industry uses extrusion processing.
2- 30% of Aluminium industry uses casting,forging and sheet and plates
2-There is no single market leader.
3-Fakes and trademark violations are rampant.
4-Second hand market is very big.
5-Very low product differentiation between the competing brands.
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6-Industrial areas constitutes major part of the sales.
The total capacity for aluminium extrusions in India is about 400,000 tonnes Capacity No. of players > 25,000 tonnes 2 Between 10,000 & 25,000 tonnes 5 Between 5,000 & 10,000 tonnes 12 < 5,000 tonnes 43 Total 62
THE PRODUCT:
The Extrusion industry can be broadly classified on the bases of the products offered. The major products are:
Building & Construction
Automobiles
Solar Aluminium Panels
Engineering Applications
Electrical
Aluminum Architectural
Aluminum Alloy Ingots
Cable
others
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The industry undergoes major seasonal and cyclical changes. A year of growth is generally followed by year of slump. However the product is generic to every home the fundamentals of the industry are strong. Essentially being a low technology industry, unorganized sector occupies the same position as the organized sector in terms of sales.
There is also a major effort to corner the industrial, which on an average contributes about 60-70%.
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1.5 ALUMINIUM CONSUMPTION IN EXTRUSION
India is considered to be the fifth largest producer of aluminium in the world with a tremendous bauxite reserve of about 3 billion tonnes. While the major consumption of aluminium in India is done by the electrical (31%) and B&C sectors (13%), the future growth is envisaged to happen in the solar power and industrial sector. One is witnessing the rapid development of this industry with a phenomenal growth noticed since 2002 and the industry is posed to play a significant role in the future growth of the Indian economy.
The aluminium extrusion process involves creating parts of homogeneous cross-sections which is achieved by forcing the metal through an outlet (that is designed in the required configuration/shape of the extruded profile) under high pressure. In an era when architects are increasingly coming forward with experimentations, aluminium extrusions are giving way to some imaginative and exquisite architectural designs which have been made simpler by the plethora of technological innovations and advancement in the aluminium extrusion industry.
37%
18%
33%
12%
Consumption in Products
ElectricalsAutomotivesConstruction27%OthersB&C
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MARKET SIZE AND SEGMENTATION
1,237 KT – Capacity extrusion
Product
Group
Product Market
i- Total Market Size is 1237KT which is segmented into Organized(industrial) and Unorganized sector(retail/others).
ii- Organized Sector contributes 66.66% share against 34% share of unorganized sector.
Building
Auto
Archtectural Solar
Electricals
Engeering
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Extrusion(1237KT)
Industrial Sector(800kt)Retail/Unorganised
Sector(400kt)
Section Profiles
iii- Industry is growing at the rate of 10% P.Aiv- Electricals contribute to major consumption among organized sector.v- Sub segment Architectal, Geometric,Solar ,engineering they
contribute to 13% of organized sector.
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INDO ALUSYS MARKET SHARE-ORGANIZED SECTOR:-
Player Volume (kt)
Indo Alusys 250
INDO ALUSYS 380
Nalco 120
Balco 125
others <100
Indo Alusys26%
Hindalco39%
Nalco12%
Balco13%
others10%
Indo Alusys Share
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1.6 INDO ALUSYS IN DELHI/NCR
i- Total Market Size is 9000 MT which is segmented into Organised and Unorganised sector.
ii- Organised Sector contributes 30% share against 70% share of Unorganised sector.
iii- Industry is growing at the rate of 9% P.A
INDO ALUSYS MARKET SHARE IN DELHI/NCR (NORTHERN INDIA )
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Player Voulume(kt) Share
Indo alusys 380 42%
INDO ALUSYS 260 30%
Nalco 180 20%
Jindal/others <100 8%
Total >800 100%
1.7 SALE IN UNORGANIZED SECTOR
The unorganized sector is being a point of concern for Indo Alusys. Though the current sales figure is not alarmingly low but it is showing a downward trend in the increasingly competitive market.
On X axis we see the year(2013,2014,2015) and on Y we see the sales volume of Indo Alusys in the unorganized sector. There is a 67 % growth towards supply of 0.91 mm -1.10mm thickness Geometrical structures to unorganized industries through Trade.
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2. JOB ASSIGNED/ TITLE
Project title- INCREASE SALES IN THE COMPARITIVELY LARGER ORGANIZED AND UNORGANISED SECTOR THROUGH MARKETING EFFORT OF EXPANSION & RETENSION.
The job assigned to me deals with the complete and detailed study of the unorganized and organized sector.
Key points being-
I. Understand kind of Marketing RequiredII. Fetching Contact Details of Industries & Retailers/Traders via Industrial
Directory.III. Physically examining the unorganized and organized sector clustered
markets in Delhi/NCR.IV. Interviewing the people involved.V. Studying the buying behavior of the players in the unorganized and
organized sector- a) where they purchase the required product from
b) why is the tendency to acquire comparatively lower quality
c) the vendors they acquire it from if not Indo Alusys
d) the reason behind choosing other vendors or Industry
e) their rationale behind acquiring material from a vendor or Industry and where Indo Alusys has to better itself for higher sales in these sector.
I. Analyzing a feasible way for Indo Alusys to increase its market share.
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2.1 KEY RESPONSIBILITIES
In the process of the 2 months training, I had quite a few responsibilities that can be enumerated as under-
i) Studying the aluminium market with a keen eye on the extrusion Industries and vendors business in perspective.
As a start I had to begin with an intensive study of the material, products and business of Indo Alusys from material provided by the company. I had to study the a) business trends, b) current customers,c) volume of material sold to them, d) changes in demand, e) reasons behind the aforesaid changesf) process of Extrusion g) End Product details and their use
ii) Physically visiting the customers of Indo Alusys.
a) Purchase Managers of Baxaur, Hella, Minda and many more Khaitan fans and Usha fans were interviewed.
b) I had to visit each Industrial Area of Delhi/NCR, to understand the different kind of products, their requirement and sales order.
iii) Once I had the required knowledge of the industry, I started off with the unorganized sector and later Organized.
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iv) I had to start with the preparation of the questionnaire for the interviews.
v) Visiting and interviewing the unorganized and organized sector formed the next part in the sequence.
vi) Analyzing the collected data and trying to find out the reasons of the buying behavior of the unorganized sector and their problems with Indo Alusys for retaining the existing customer and creating new(Expansion)
vii) Trying to find a feasible solution to the problem.
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2.2 STAGES OF THE PROJECT
The project can be categorized into the following stages-
1. Understanding of Indo Alusys and their products
2. Fetching Contact details from directory online/offline
3. Preparation of the questionnaire.
4. Visiting and giving presentation to the unorganized and organized markets mainly located in and around DELHI/NCR-
a) IMT Manesarb) Mayapuri Industrial Areac) Kirti Nagar Furniture Marketd) Gurgaon,Noida, Faridabad.e) Mangol Purif) C.P Central Delhig) Others
1- Interviewing the Manufacturer, stockists, distributors and customers.
2- Filling up of the questionnaire.
3- Finding out the price at which different manufacturers are selling.
4- Trying to find out the reason behind relative difference in price.
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5- Analyzing the filled up questionnaire and finding the reason behind the existing problem.
6- Mainting Record on excel sheet of Sale order, requirement and discussion.
2.3 BRIEF DESCRIPTION OF THE PROBLEM
With the vision to pro-actively shape the business of distribution and processing of industrial materials in India, Indo alusysIndustries Limited aims to become the dominant industrial material management service provider and will create customer value by processing and distributing industrial products like various aluminum made end product. The focus will be on aluminium Extrusion products. The imminent need being, increasing the sale in the unorganized and organized sector.
With this in mind, Indo Alusys wants to study the unorganized and organized market in Delhi/NCR, identifying the potential customers and finding out their needs and if Indo Alusys can provide value to these small scale players or the big ones in the Extrusion industry.
A survey was conducted in order to find out the relative position of Indo Alusys with respect to its competitors, market, product and how it can increase its market share.
The project also aims to find out why Indo Alusys’s competitors are in a relatively better position in the unorganized sector and how Indo Alusys can improve, expansion or retention.
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3. OBJECTIVE OF STUDY
Purpose –
Primary objective- To carry out market Research, territory mapping and problems escalation of the existing/new customers with the industry to find out the relative position of Indo Alusys with respect to its competitors , market and product
Secondary objective- 1. To find out the relative market share of each aluminium materials.2. To find out the preference for a brand of the customers3. Reasons for preference.4. To assess the nature of competition.5. To find what gives the customers the more value and hence find
out how Indo Alusys can improve in those areas for higher sales.
Scope-From the study we can infer that there is huge potential in the unorganized sector market and tapping the market would lead to higher sales by a huge margin and consequently higher profits.
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I.1 METHODOLOGY
The survey was conducted in Delhi/NCR. Data was taken from 65 respondents –
a) Organized sector representatives- 36b) Stockists - 07c) Unorganized sector Trader/Retailers- 21
Brainstorming sessions were held so that innovative ideas could be generated and confusion if any could be clarified. While discussing, many factors arose which were not possible if no discussions were held.
Tools for collecting information:
Detailed and descriptive questionnaire was designed to collect the required information Overall, it was an exhaustive questionnaire created to cover the extensive information of the region. (For details see appendix)
Following considerations have been taken into account for the designing, preparation, refinement, administration and analysis of the research questionnaire-
• Collection of primary data..
• Carefully developed, tested and debugged before being administered to the target.
• Care has been taken in framing and sequencing the sentences.
METHOD OF DATA COLLECTION:
The data used in the project is Primary Data collected through-
a) Questionnaireb) Interviews- structured and unstructured (according to convenience).
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4.2 THE QUESTIONNAIRE
The questionnaire that has been used in the survey is as given below. It has been prepared under the guidance of my industry mentor. Some of the questions have been altered depending upon the person being asked to fill it (eg. Stockists, manufacturers etc.)
I. Which are the major vendors you acquire your raw material fromo INDO ALUSYS o Nalcoo Indo Alusyso Others
Hindalco Nalco Indo Alusys Others0
5
10
15
20
25
30
35
No. of Customers
44
II. What percentage of your raw material requirement do you acquire from Indo Alusyso 0-30o 30-60o 60-90o 90 and above
0-30 30-60 60-90 90 and above0
2
4
6
8
10
12
14
16
18
20
Series 1
o Are you satisfied with the quality of INDO ALUSYS.o Yeso No
45
yes no0
5
10
15
20
25
30
35
III. Does the quality of Indo Alusys justify the priceo Yeso No
yes no13.5
14
14.5
15
15.5
16
16.5
17
17.5
18
18.5
46
IV. If you do, why do you prefer other companies over Indo Alusyso Better qualityo Cheaper rate o Timely supplyo Others
BETTER QUALITY CHEAPER RATE TIMELY SUPPLY OTHERS0
5
10
15
20
25
30
47
V. Rank in order of preference quality wiseo INDO ALUSYSo Nalcoo Indo Alusyso Others
Indo Alusys nalco balco others0
5
10
15
20
25
30
VI. Rank in order of preference price wiseo INDO ALUSYSo Nalcoo Indo Alusyso Others
hindalco nalco Indo Alusys others0
5
10
15
20
25
Series 1
48
VII. Where do you think Indo Alusys has to improve to capture a larger market shareo Qualityo Cost effectiveness o Others
quality cost effectiveness others0
5
10
15
20
25
30
Series 1
VIII. What is the quantity of your raw material requirement per month
IX. What percentage of your production is dedicated towards extruded products.
X. What is the size of aluminium profile, section and panel etc. you acquire
XI. What is the alloy that you acquire
XII. What is the quantity you acquire
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XIII. What percent of your raw material usage is aluminium
o 0-30o 30-60o 60-90o 90 and above
0-30 30-60 60-90 90 and above0
5
10
15
20
25
Series 1
XIV. What percent of your raw material cost is aluminumo 0-30o 30-60o 60-90o 90 and above
50
0-30 30-60 60-90 90 and above02468
1012141618
Series 1
SALES QUESTIONNAIRE:
Name of the organisation:_______________________________________________________
Location:_____________________________________________________________________
Contact Details:________________________________________________________________
Type of Industry:_______________________________________________________________
Person Contacted:____________________________________________________________
End Application:_______________________ End Product__________________________
Required Finish :-
Powered coating: Anodizing:
Fabrication:_____________________________________________________________________
Approximate Requirement:__________________________________________________________
Current Sources:__________________________________________________________________
Require a Visit for from sales Department(Y/N)___________________________________________
Analytical tools:
The data, after being collected and tabulated for analysis, the tools that have been used on them are as follows:
Bar Chart
Pie Chart
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4.3 PROJECT CONSTRAINTS
Many times it was difficult to get an appointment with the concerned person.
The concerned person used to be very busy to give answers to all the queries.
Many people were not ready to give the required information because of the company policies.
Many a times the data given to us is an approximate data due to which error in the analysis may occur.
Time was inadequate.
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5 COLLECTION AND ANALYSIS OF INFORMATION
5.1 CHAPTER SUMMARY
Survey leads were generated thorough calls and existing data. A lot of data was collected from the internet, which includes the database of the survey also. Structured questionnaires were the way of generating primary data. Information was gathered from the collected data.
The data collected then was analyzed by filtering information and then certain charts and tables were generated from this information so that at a glance the desired objective can be fulfilled. The analysis and data was collected for the roofing sheet materials.
5.2 DATA ANALYSIS
Points to be noted-a) The option ‘others’ in question I,V,VI and VII refers to the cheaply
available extrusion material and options available in the market manufactured in North India.
b) Questions numbered XI, XII and XIII have not been tested with statistical tools because of the nature of the data and it does not help in the project at hand but the information was helpful to the company and hence was collected.
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5.3 OBSERVATIONS
a) The reply to question I, shows that Indo Alusys is not the leader in this sector. The most common vendors are the Traders clustered in North India. Even then, Nalco is doing better than Indo Alusys.
b) The reply to question II shows that the most Indo alusys supplies in this sector, falls in the 0-30% of requirements. Opportunity in this sector is huge for Indo Alusys and that is what the data proves.
c) Indo Alusys prides itself in its superior quality and the customers acknowledge that. Throughout the tenure of this survey, not a single respondent was found who had complaints with the quality of material supplied by Indo Alusys.
d) The reply to this question shows that the customers overall feel that INDO ALUSYS is priced at more than its worth. It is the cost disadvantage that is leading to Indo Alusys relatively down sliding performance in the market, especially in the unorganized sector.
e) The reply to the fifth question reiterates the fact that the high price of Indo Alusys Extrusion Material is hindering its growth in the unorganized sector since most of the customers feel that the high price is the reason they would prefer other brands.
f) Reply to question VI proves Indo Alusys dominance when it comes to quality of the material. It is the unified opinion of the whole of the industry that Indo Alusys supplies the best quality material followed by INDO ALUSYS and that the locally available sheets are the worst in terms of quality.
g) The seventh questions reply shows that the local sheets are performing the best in this sector because of their low cost.
h) Cost effectiveness is where Indo Alusys has to improve and this fact is coming across again through the reply to question VIII.
SALES Questionnaire
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This Questionnaire is only for the use of office to determine if any requirement is there for any Industry. So that they can further proceed with order to meet the sales target.
5.4 MARKET ANALYSIS
AIM: Measurement of success not in absolute sales performance but in their sales performance relative to competitors, market and end product.
1- To find the estimated demand of Indo Alusys Exrutsion Products and vis-à-vis. its competitors and market share
2- To find the main causes of a buyers preference of a particular brand.3- Main decider in the buying process.
Based on information gathered from 65 respondents (manufacturers and stockists,trader or retailers) we get the following information-
1- Sheets are more popular in the unorganized sector and rarely do any manufacturer of organized sector uses sheets.Reason behind this being sheet is cheaper than Extruded products by their use and price approximately Rs. 10-12 /kg.
The current price of Indo Alusys Products are:
PRODUCTS PRICEGeometic Profiles Depends on dimensionsHeat Sink 40/pieceLighting Segments 40-45/pieceAutomobiles 45-45/pieceArchitectural 30-35/pieceSolar Panels 38-45/pieceFurniture 45-50/pieceBus Bar 30-50/pieceAhu/Ac 40-60/pieceMotor body 45-60/pieceExhibition Industry 40-45/piece
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Sheet- Rs. 170/kg from which one piece of standard dimension can be made.
The current price of INDO ALUSYS C.G. sheet- Rs. 159/kg(VAT and Excise duty additional)
Aluminium sheet, aluminium plate, Flooring Sheets/ Tread Plates:-Pattern Sheets aluminium flat, aluminium perforated sheet May range from 150-180/kg
2- The unorganized sector do not go for brands generally eg. INDO ALUSYS, Nalco, Balco, Indo Alusys etc. From information received by the stockists-a) Branded aluminium sheets are rarely demanded by the local/organized
manufacturers.b) If demanded, Indo Alusys do not preferred in manufacturing of sheets
because of comparatively higher price of presses and less use.c) Locally manufactured sheets are the most in demand. The difference
in rate being considerable.The difference between branded sheet and local sheet is between Rs. 25-35 /kg.
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6 FINDINGS
From the survey conducted , respondents comprising stockists and manufacturers, Industries the following were found out-
1- By analyzing the preference for buying aluminium Extruded products, it was found that locally manufactured sheets and products are the most in demand followed by Indo ALusys product.
INFERENCE- Greater availability and low cost of local products and thereafter sheets help them garner majority of the customers.
2- By talking at length with the manufacturers, it was observed that Indo Alusys Products are out of the budget of the small scale manufacturers though they agree that it is the best in terms of quality.
INFERENCE- Even if brands are considered, Indo Alusys is not finding favour because of its comparatively high price and minimum order.
3- The unorganized market is generally clustered in the same geographical are eg Sohna Road & Naraina area where all the companies do business alongside each other. Competition is intense and there is not much to choose between one brand and the other. The company delivering the cheapest products makes the highest sale.
INFERENCE- Even if a single player wants to go for Indo Alusys, the fear of losing business to its competitors because of the increased price of the resultant product stops it from doing so.
4- By analyzing the customer survey it is found that local traders at Gurgaon enjoy the maximum market share only because of its cheap rate though
57
the customers are unified in their opinion of its comparatively bad quality and uneven size and thickness.
INFERENCE- Cheap and ready availability is the only reason of the popularity of the local products.
5- The unorganized sector players were largely of the opinion that a difference of Rs. 16-18/ kg can be considered but the current difference of around Rs 25-30/kg is way beyond they can afford in acquiring blade sheets.
INFERENCE- It is a buyers market where these businesses are trying to make profit by the cheapest acquirement of raw material since all these companies sell the final product at almost identical price. Increasing price would lead them to lose competitive advantage.
6- The small scale manufacturers complain of availability of Indo Alusys sheets as they don’t make it. Occasions, in which they have tried to acquire materials from Indo Alusys, they have not got their supplies on time. According to them the reason behind this being that their demand is comparatively far lesser in quantity than a branded company.
INFERENCE- Supply is short in the unorganized sector leading to more sales by the local traders. The later being readily available.
7- Comparatively bigger businesses in the organized sector, eg. Saha Metal Industries, Five Star Engineering Works, Valeca, Re electric and mega metal etc. go for Indo Alusys because of the brand name of Indo Alusys and they look to expand their business.
INFERENCE- Apart from these manufacturers, the businesses satisfied with the existing size of it, are not willing to spend that much.
8- The small scale manufacturers going for Indo Alusys incur almost an additional cost of Rs. 40 in the final product because of taxes
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INFERENCE- Even when the small scale manufacturers are going for Indo Alusys, they opine-Indo Alusys, keeping in mind their supremacy in quality, should look to supply at rates of Nalco and Balco. The most they can willingly consider is a difference of Rs. 2/kg.
9- Of all the stockists and manufacturers in organized sector interviewed,100% go for Indo Alusys because of their quality of product.40% are of the opinion that they do business with INDO ALUSYS/Jindal/NALCO/BALCO because of the relationship they share with the company and high requirements.
INFERENCE- Customer satisfaction and business relations of Indo Alusys is top notch and when compared with its competitors, INDO ALUSYS and Indo Aluysys enjoys the most popularity.
MARKET CAPTURED BY INDO ALUSYS
IMT Manesar
Out of 15 Companies that deals in Aluminium
53% Deals In extrusions47% Deals in sheet or use aluminimum in other forms27% Industries out of 53% companies deals with Indo Alusys
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Extrusion42%
Aluminium In other forms
37%
Indo Alusys21%
IMT Manesar
Naraina Industrial Area.
According, to my Research at Naraina Industrial area, most of the companies deals with Steel Or Iron. There are few company that deals in aluminium rest the entire area Ph-I is Iron and steel.
Total Co. Visited 10Aluminium Extrusion 4 40%In other forms 6 60%Deals with Indo Alusys 1 10%
Mayapuri Industrial Area.
Companies Visited in Maya Puri Industrial Area 15Aluminium Extrusion 12 80%In other forms 3 20%Deals with Indo Alusys 4 27%
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Extrusions36%
In other Forms55%
Indo Alusys9%
Naraina Phase II
Extrusion63%
In other Form16%
Indo Alusys21%
Mayapuri Industrial Area
Kirti Nagar Furniture Market.
Companies Visited in Furniture Market 15Aluminium Extrusion 4 27%In other forms 11 73%Deals with Indo Alusys 2 13%
Traders Gurgaon Aluminium Market
Companies Visited in Gurgaon 20Aluminium Extrusion 19 95%In other forms 1 5%Deals with Indo Alusys 15 75%
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Extrusion63%
In other Form16%
Indo Alusys21%
Mayapuri Industrial Area
Extrusion23%
In other form65%
Indo Alusys12%
Kirti Nagar Market
Solar (Gurgaon)
Solar Industry visted 15Aluminium Extrusion 13 87%In other forms 2 13%Requirement of aluminium 2 13%
INFERENCE:
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Extrusion54%
In other form3%
Indo Alusys43%
Gurgaon Aluminium Market
Extrusion76%
requirement12%
In other Form12%
Solar Industries
Most attractive Market for Indo Alusys is IMT/Manesar followed by Gurgaon.
The Least attractive market is Nariana. Solar should be the next move forward for Indo Alusys as lesser number
of Solar Industries are approached.
7 SWOT ANALYSIS
SWOT = Strengths, Weaknesses, Opportunities, Threats
Strengths: characteristics of the business or team that give it an advantage over others in the industry.
Weaknesses: characteristics that place the firm at a disadvantage relative to others.
Opportunities: external chances to make greater sales or profits in the environment.
Threats: external elements in the environment that could cause trouble for the business.
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SWOT ANALYSIS OF INDO ALUSYS
STRENGTH
1. HIGH QUALITY
2. HIGH BRAND VALUE
3. INDO ALUSYS ALUMINIUM
IS THE BIGGEST BRAND IN
NORTHERN INDIA AND IN
THIS SECTOR,CONSIDERED
THE BEST AMONGST ITS
COMPETITORS.
WEAKNESS
1. HIGH PRICE.
2. THE MOST EXPENSIVE
AMONGST ITS COMPETITORS.
3. IRREGULAR SUPPLY IN THE
UNORGANISED SECTOR.
4. INFREQUENT VISITS IN THE
UNORGANISED SECTOR MARKETS.
5. HIGH QUANTITY OF MINIUM
ORDER
OPPURTUNITIES
1. UNORGANISED SECTOR IS
HUGE.40% OF INDIAN
INDUSTRY ARE DEPENDENT ON
IMPORTS AND 70% SHARE IN
THE NORTHERN INDIA
ALUMINIUM INDUSTRY.
2. HIGH BRANDNAME CAN BE
THREATS
1. PRICE OF ALUMINUM GOING
UP SO THE SHEETS EXPECTED
TO GET COSTLIER.
2. CHEAPER RATES OFFERED BY
COMPETITORS EATING INTO
INDO ALUSYS’S SHARE.
3. PERCEPTION IN THE
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USED TO INCREASE SHARE IN
THE INDUSTRY.ASSOCIATION
WITH INDO ALUSYS WOULD
ADD LEVERAGE TO ANY
UNORGANISED SECTOR IS
THAT INDO ALUSYS IS TOO
EXPENSIVE TO EVEN CONSIDER.
8 RECCOMENDATIONS
The following recommendations are advisable for INDO ALUSYS to increase its sale in the Unorganized and organised sector-
I. High price perception is a constraint for INDO ALUSYS in its objective. The small scale manufacturers need to be made aware of the superiority of INDO ALUSYS and the brand value associated with it and hence encouraged to expand by delivering better quality.
II. The difference in price with that of its competitors eg. Nalco, Balco, Manic saw etc. is too prominent. Price needs to be brought down to match up to the competitors. A difference in price of Rs. 2-Rs.3/kg with other brands and of at least Rs 10-Rs12/kg with locally available products should be targeted.
III. Sales promotion techniques like gold coin distribution or cash incentives to retailers who meet certain inventory figures and sales target in the Unorganized sector.
IV. Investment in Research and development on ways to produce aluminium in cheaper rates. The initial investment would be high but the opportunities in the Unorganized and organised sector can be tapped since price is the biggest hindrance in INDO ALUSYSs way in this sector.
V. More advertisements are required to counter the high price reputation of INDO ALUSYS aluminium and the dent free, rust free nature should be effectively highlighted.
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Advertisements in trade journals, trade fairs and industrial meets should be heavy. The quality should be laid stress upon.
VI. Frequent visits to unorganized sector markets eg. Gurgaon and Manesar to educate customers about INDO ALUSYS and Extruded products and its superiority over other brands.
VII. Starting in production and supply sheets since it will stand a better chance in the unorganized sector because of its cheaper rate.
VIII. Concentration on production and supply of 0.91mm- 1.10 mm thickness sheets since these are the most sought after in the unorganized sector.
IX. Identifying potential customers in the unorganized sector since there are enthusiastic manufacturers. They should be encouraged to use INDO ALUSYS products in place of local poor quality blade sheets.
X. Extending support to stockists. There have been stockists saying that some sort of credit period offered by INDO ALUSYS would encourage them to keep more stocks of INDO ALUSYS products. There are stockists who extend a credit period of around 15 days to local manufacturers . A few of such stockists are-
a) Mega metalb) Hard pointc) Verma metal.
XI. A credit perod of 10-15 days can be offered to stockists in place of the Cash and carry system to encourage them to supply to small scale manufacturers.
XII. To convert all order in wider width order to increase the productivity for INDO ALUSYS as well as customers.
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XIII. To maintain better delivery and quality of product.
XIV. To keep close watch on competition region wise and customer wise in market as market is highly price sensitive and cheaper competitors’ products are available.
XV. Cheap material consume more power though there is no apparent exterior difference. Customers need to be educated of this through advertisement.
XVI. When it comes to production of Flat Rolled Products, the rollind capacity of the various plants are-
Renukoot- 80,000 tpaBelur- 45,000 tpaTaloja- 50,000 tpaMouda- 30,000 tpa
The wider sheets are brought from Renukoot and the rest of the supply is done from Belur. The production capacity of Belur increased since the local demand if manufactured locally, reduces Transportation cost, Loading and Unloading cost, Packing cost.
So, Indo Alusys Should start getting into Aluminium Sheets
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9 CONCLUSION
ALUMINIUM -- ROAD AHEAD
The outlook for the Metal sector in India is bright. Sustained growth is expected across all key segments, aided by several factors such as, growing domestic demand, investment in capacity addition, increasing supply deficit in other countries and favorable government regulations.
• Government’s initiatives such as power and infrastructure development, reduction in import duties and facilitation of FDI, along with overall economic growth will provide a boost for the Indian metal industry
• With economy projected to grow at 8 to 9 per cent in the coming years, there is expected to be a surge in per capita metal consumption.
• For aluminium, exports will be a major demand source .The metal sector in India, is clearly an attractive sector for investment and offers significant growth potential, both in the domestic as well as exports markets. Metal companies must assess their core competency and realign their strategy to cope with the internal and global competition.
The outlook for domestic aluminium sector is positive. It is predicated on the likely strong growth in the end-use sectors, notably in the construction, transportation, consumer durables and packaging sectors. The positive outlook for the Indian economy, expected GDP growth of 8-9% per annum and accelerating level of industrial activity should give boost to the construction sector. The fiscal incentives for individual housing in recent budgets, availability of cheaper finance, rising per capita income and increasing level of consumer confidence will drive housing demand in future. Together with the renewed focus on infrastructure development, it will reinforce the outlook for
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the construction sector. Gaining from it and the increasing preference for use of aluminium in curtain walling, partitions and door/window panelling, aluminium consumption in the construction sector is slated to grow in double digits over the next two years.
The expected strong growth in the transportation sector will be a key driver of aluminium demand going forward. The share of transportation in aggregate consumption is expected to rise significantly in the future.
This will be driven by improving volumes of commercial vehicles on the back of a pick-up in industrial activity, introduction of new vehicles by international car manufacturers and a shift towards aluminium use in select applications by domestic car manufacturers.
Additionally, higher disposable incomes and improving level of consumer confidence coupled with rising aspiration levels and changing consumer buying pattern is likely to boost demand for consumer durables in future. The prospects of an increased consumption in the electrical sector are improving with the entry of the private sector in the distribution sector and restructuring of the State Electricity Boards by the Government. The need for strengthening distribution network in the power sector also augurs well for aluminium consumption in future.
FUTURE OUTLOOK-
The future in the Aluminium industry is bright. The industry is growing in Eastern India at 9% p.a.
The company should run advertising and promotional strategy and campaigning to the full so the awareness is increased by a large percentage.
The metal sector in India, is an attractive sector for investment and offers significant growth potential.
INDO ALUSYS aluminium is far superior in quality than that of its competitors.so if the customers can be convinced, the business of INDO ALUSYS would increase by a large margin.
If the pricing is made more competitive, it has the potential to go on to become the best in terms of volume of sales.
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10 BIBLIOGRAPHY
a) http//www.INDOALUSYS.com/aboutus/products etc
b) http//www.indiainfoline.com
c) Journals --
i. Business India
ii. Business World
iii.The Economist
d) Corporate Observer
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