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The economic slowdown in India is one of the world's biggest economic stories, but it is commanding only a modicum of attention in the United States. It may not even look like a slowdown because by developed standards, India's growth - estimated by the International Monetary Fund at 6.9 percent for 2012 - is still strong. But a slowdown it is: The economy has decelerated from projected rates of more than 8 percent, and negative momentum may bring a further decline. The government reported year-over-year growth in the Octoberthrough-December quarter of only 6.1 percent.
Indian economy
Confirming fears of a slowdown, India's economy grew by just 7.8 per cent in the fourth quarter ending March this year, mainly due to poor performance of the manufacturing sector, as against 9.4 per cent in the same three-month period of the previous fiscal. However, economic growth, as measured by the Gross Domestic Product, improved to 8.5 per cent in 2010-11 from 8 per cent in 2009-10 due to better farm output and construction activities and financial services performance
Role of Iron and Steel Industry in India GDP-Facts:The Iron and Steel Industry in India is one of the fastest growing sectors The demand drivers for the Indian Iron and Steel industry are increase in the activities of the automobiles industry, real estates industry, transportation system, aircraft industry, ship building industry, etc. India ranks 5th in the world in terms of production of steel The amount of crude steel produced in 2006-07 was 50.71 million tonnes The amount of finished steel produced in 2006-07 was 51.9 million tonnes The production of finished steel was increased by 16.52% The production of finished carbon steel was 24.8 million tonnes in the year 2006-07 It is expected that India would become the second biggest producer of steel within the year 2016 and the production per year would be 137 million tonnes The exports pertaining to the steel industry was 6.26 % during the period 2006-07
Role of Iron and Steel Industry in India GDP-Consumption:The domestic consumption of steel has grown by12.5% in the past three years The domestic steel consumption in the year 2006-07 was 41.14 million tonnes The average growth rate of the Indian Iron and Steel Industry is 11.36% The construction projects all over India are major consumer of steel The per capita consumption of steel in India is 35kgs As the per capita consumption of steel is lower than other countries, so the steel industry has huge opportunities in the future
Role of Iron and Steel Industry in India GDP-Growth in Future:The Arcelor Mittal, which is the largest steelmaker in the world, has plans of establishing two Greenfield steel projects with capacity of 12 million tonnes annually, in India Acerinox SA, one of the important stainless steel manufacturers in collaboration with Nisshin Steel, Japan is setting up a steel plant in India The Tata Steel ranks 5th in the world steel production and the company have plans of expanding its capacity by the year 2015 SAIL, India's biggest producer of steel has plans of increasing the production to 24.98 million tonnes annually Sinosteel Corp, China are planning to invest US$ 4 billion to set up a 5 million tonnes capacity Greenfield steel plant The acquisition of the Corus, the Anglo-Dutch steel manufacturer by the Tata Steel The Algoma Steel, Canada was acquired by Essar Global for US$ 1.63 billion
manufacturing facilities at Toranagallu in Karnataka, Vasind & Tarapur in Maharashtra and Salem in Tamil Nadu. By 2020, the Company aims to produce 34 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal and Jharkhand.
Products offered
Hot Rolled Coils & Sheets Hot Rolled Plates Cold Rolled Closed Annealed Coils & Sheets Galvanised Coils & Sheets JSW Vishwas G.C. Sheets Galvalume Coils and Sheets JSW Vishwas Plus G.C. Sheets JSW Pragati Colour Coated Sheets Pre-Painted Products JSW TMT Plus Bars Wire Rods & Special Steel - RCS, Rounds & Spring Steel Flats
At JSW Shoppe, end consumer will also know about different applications of different steel products being manufactured by M/s JSW Steel through actual components and pictures from Automobile, White Goods Sectors, Construction.
The major objectives of establishing JSW Shoppes Could be enlisted as follows: To have an organized retails network Branding of distribution channels Consumer awareness on product ranges and influence their decision making Establish long-term association with dealers Provide a pleasurable shopping experience to the customers Provide customers with value for their money
In the words of Mr. Sajjan Jindal VC & MD, JSW Steel Ltd., "The concept of the Shoppe originates from the fact that we want the customer to get the right quality of product at the right price and at the right place." This novel marketing initiative will go a long way in creating brand awareness about the superior product quality and will ensure that the customers get full value for money.
Organized retailing
With organized retail growing by the day in the country, can manufacturers of steel be far behind? Seems not. JSW Steel has come up with a unique steel-retailing format in the form of JSW Shoppe, to forge a PAN-India presence and to de-commoditise steel. Being the countrys largest private steel producer JSW Steel has decided to brand its product and sell it through its exclusive retail outlets called JSW Shoppe, so that consumers not only have a pleasant buying experience but in the process steel also gets a brand status. Such retail outlets would stock all the products and also educate the customers about the various end-applications of Steel. Combining innovation with functionality, and versatility with style, JSW Shoppe will provide a one-stop destination for consumers intending to go steel shopping. JSW Shoppe envisions creating a unique organised, retail experience that displays the versatility of steel from its functionality, to its aesthetics. Further, it will bring innovation to steel products and make steel buying pleasurable. JSW Shoppe is a mid-size specialty store, which will retail a range of steel oriented products, all under one roof. It will offer: better shopping experience better quality of products greater time and money value to the customer comprehensive range customer delight through its, services, and in-store facilities
Well-displayed and stocked shelves, signage, and competitive prices will help them browse and choose. New designs and innovative products will engage them. Information, consultancy service, and advice, will facilitate right selection. Concept kiosks and displays, which showcase the product, will enable them to visualise and promote impulse buying.
Buying steel for ones home in India has often not been very pleasurable or memorable. The place from where the purchase is made is not always comfortable and may lack credibility. The customer is always worried about the quality of the product, and bargaining is no guarantee that one has got a fair deal. Therefore, purchase of steel items is mostly outsourced to fabricators, masons and other influencer groups. Consumers may end up paying more but that is the "price" of convenience of not having to buy directly. And shopping with the family for steel products is quite unthinkable. However, the boom in real estate coupled by the retail revolution has seen most categories in the home market explore new retail formats and give the end consumer more choice, convenience and comfort. This will be achieved by understanding consumer needs and help vendors innovate and develop such products. This store will also showcase steel as a material of choice that is environmentally friendly, aesthetically pleasing, and functionally resilient.
In addition to this, it is recommended that JSW Shoppe should come up with an Info Centre, which will spearhead dissemination of information on a wide range of subjects related to steel for a discerning audience. It will also provide a platform to learn and understand buyer needs and behaviour, and develop systems and processes that would be shared with retailers and distributors of steel products to help enhance the steel retail environment at large.
Dealers
To beat the industry trend in a situation of over-supply we felt the need to move away from selling commodities into marketing brands. Even as we will continue to leverage and take to greater heights the value of the JSW brand, there will be efforts to create new images and associations for our services and products in current as well as new businesses. Branding will give rise to customized products in terms of value, performance and pricing; it will meet our customers' needs better. Branding will go a long way in meeting the challenge of gaining a sustainable competitive edge. We feel that branding Steel would help JSW Steel in three big ways: 1) it would help stabilize the flow of revenues even during business downturns, 2) it would make premium pricing possible and 3) this JSW Shoppe format will help in developing long term relationship with dealers. Prior to launching branded steel products, through organized retailing format, JSW Steel took necessary steps to become more customer-focused. There are several benefits that come from branding and marketing a product as opposed to just distributing a commodity. Apart from tangible benefits such as a better price, players can also build a loyal customer base. If the brand is positioned and developed, it will create a segment in the market that is loyal to the brand. This, in turn, will offset the uncertainties brought about by that segment of customers who buy products on price considerations alone. The loyal customer is able to build a stable relationship with the brand, thus reducing the vagaries of price for the supplier while assuring himself of a good product. Branding products will synergise with the company's brand image. The economic benefits of branding lie both in the protection of the price lines of a company's products, as well as in the protection of the company's market capitalization. This creates a Win-Win situation for all The Customers The dealers JSW Steel and The Steel Industry as a whole
JSW Steel
JSW Steel
Dealer
Value Addition
Retailer
Retailer
Consumer
Consumer
Performance analysis
Identification of Dealers
Confirmation of Location
Start of work
Dispatches to site
Elements (Furniture)
Stationery
Steel card
Brochures
Others
Final Inspection
Initial survey field report (form 1) Initial survey rating report(form 2) Dealer registration form(form 3 with annexure A, B, C Statutory requirements Annual audited accounts for the proceeding 3 years Annual return under section 159 of the companies act 1956(as amended) Annual return of income u/s 139 of income tax act 1961 Tax audit report u/s 44AB of the income tax act 1961(if applicable) Permanent account number u/s 139A of income tax act 1961 Tax deduction account number(TAN)U/S 203A of income tax act 1961 Tax identification number(TIN) under sales tax act CST Registration number u/s 7 of central sales tax act 1959 BST Registration number u/s 22 of Bombay sales tax act 1956 Annual return u/s 32 of Bombay sales tax act 1959 Excise Registration number u/s 6 of the central excise act 1944 Monthly RT 12 Returns under rule 173G(3)of the central excise rules, 1944 for the preceding one year
Due diligence review form (form 4) Recommendation letter/note from consignment Agent/Branch Blank cheques Security deposit Dealership agreement Product specification agreement Appointment letter Data entry in customer directory
Ordering process
Jindal Company since corporated was known as Jindal vishwas with the development of the company and increasing customer base and customer trust the company took a step forward to modernize. With this in mind the company came to be known as JSW VISHWAS. To continue with the customer trust and its image in the corporate the company only modified a bit with its logo which signifies that the company still continues with the same goodwill. The minute change in the logo signifies:ella, in the old logo, has been retained which symbolizes the trust that the billions have placed on us. colours & make the logo more vibrant
Structural Advantages
The structural advantages of JSW Shoppe, the organized retail format, are manifold, likely:
Builds a long-term association with the dealers. Direct interaction with the end consumer becomes possible Generates awareness about our existence among the end-users Develops loyalty in the minds of the customer by building confidence and trust Focused promotional activities can be undertaken The pulse of the market can be monitored Promotes direct marketing and selling Gives a platform to showcase our products All the products are available under one roof We get an opportunity to not only showcase our products but also to exhibit our service and commitment towards our customers Customers not only get the products but also the experience
Bottlenecks
Leaflets/brochures Retailers boards Hoardings Bus branding Van creative Wall painting Standee Gate branding Banners Bus queue shelter Advertisements
Benefits to JSW
Steel market becomes organized Streamlining the supply chain Records can be maintained in a scientific manner Developing a Brand status for itself and its products Long-term association with dealers Data is available for analysis and projections Gives opportunity to communicate its product differentiation Its presence in the market will be pronounced Environmental Analysis could be possible Consumer analysis could be possible It would be easy to plan products
Conclusion