BBA- SEM -II

BMT1035
STRATEGIC MANAGEMENT

DIGITAL ASSIGNMENT-3

TITLE- Internal Analysis

COMPANY NAME - Srikalahasti Pipes Ltd (SPL)
SUBMITTED TO: Prof. Sivakumar A

Submitted by:
NAME REGISTRATION NO.
ABHAY KUMAR 20BBA0080
THISHON NITHISH P S 20BBA0028
MOHAMMED SAFFAN 20BBA0199
SIBI KUMAR R 20BBA0140
Core Competencies

A core competency is a concept in management theory introduced by C. K.

Prahalad and Gary Hamel. It can be defined as "a harmonized combination of multiple
resources and skills that distinguish a firm in the marketplace" and therefore are the
foundation of companies' competitiveness.

Core competencies fulfil three criteria:

1. Provides potential access to a wide variety of markets.

2. Should make a significant contribution to the perceived customer benefits of
the end product.
3. Difficult to imitate by competitors.

Srikalahasti Pipes Ltd (SPL) is one of the leading players in the DI pipe industry in India and
was established in 1991. SPL’s plant is located at Rachagunneri, Srikalahasti, Chittoor
District, Andhra Pradesh near Tirupati and its key products include DI Pipes, Pig Iron, Coke
& and Cement. Srikalhasti Pipes has a backward integrated manufacturing facility which
includes a sinter plant, coke oven plant, power plant and a Sewage Treatment facility in the
same complex spread over 330 acres, giving the company a significant competitive
advantage.
Srikalahasthi Pipes Limited (SPL) is an Associate Company of Pipes major Electrosteel
Castings Limited (ECL), which is a five-decade old water infrastructure company providing
techno- economic solutions for water supply and sewerage systems. ECL is India’s largest
and one of the few manufacturers in the world to make Ductile Iron (DI) Pipes, DI Fittings
and CI Pipes, having its facilities in Khardah & Haldia in West Bengal and Elavur in Tamil
Nadu.

The company supplies DI pipes to various Water Boards, Municipal Corporations and
Turnkey Contractors across the country for their Water Infrastructure Projects which is the
thrust area of the Govt of India. Some of our marquee clients are Larsen & Toubro, NCC
Limited, Indian Hume Pipes Ltd, Megha Engineering & Infrastructures Ltd and Sriram EPC
Ltd.

The impetus given by the Central Government in the Union Budget to various centrally
sponsored schemes like National Rural Drinking Water Programme, Swatch Bharath, urban
and rural development projects, augur well for the Ductile Iron Pipe industry in terms of
boosting demand for DI Pipes in the medium to long term which helps us keep the order book
stable
DUCTILE IRON PIPES

Ductile Iron (also known as Spheroidal Graphite Iron or Nodular Cast Iron) retains the
corrosion resistance of Cast Iron but has more than double the tensile strength. The essential
difference between Ductile and Cast Iron lies in the shape of the graphite in the
microstructure of the metal.DI Pipes have external metallic zinc/epoxy/bituminous coating
and internal cement mortar lining using large centrifugal force to provide excellent anti-
corrosive properties.DI Pipes are used for transmission of raw & potable water, transmission
of domestic & industrial effluents, fire fighting systems, piling ash-slurry handling Systems.
SPL manufactures and markets DI Pipes under the brand name “SRIPIPES” and the product
size ranges from 100 mm to 1,100 mm.

Strengths:

Higher Tensile Strength: Is strong enough to withstand the most severe conditions, from
high-pressure applications, to heavy earth and traffic loads, to unstable soil conditions.

Corrosion Resistant:

It is resistant to corrosion in most soils, and typically requires only effective, economical
polyethylene encasement in aggressive environments.

Longer Service Life:

Projected service life is 70-90 Years. Flexible and Leak Tight Joints: It has flexible push on
joints which do not leak at high or low pressure.

COKE

Coke is a fuel with few impurities and a high carbon content, usually made from coal. SPL is
one of the largest manufacturers of Low Ash Metallurgical coke (LAMCOKE) in the country.
Superior technology, high quality Australian coking coal and outstanding blending help the
company to produce one of the best quality cokes in the country. The company adapts
different types of blending, which enhances the quality of the coke

PIG IRON

Srikalahasthi Pipes Limited (SPL) manufactures basic and foundry grade Pig Iron from the
surplus liquid metal. SPL’s Pig Iron is ideal for specialized applications such as engine
blocks, crankshafts, steel mills, pump housing, machine tools, etc. The company caters to
specific customer requirement of precision products manufacturers. The company is one of
the low cost Pig iron manufacturers with almost total backward integration.

CEMENT
Srikalahasthi sells the cement manufactured under the name “SPL Gold”. The company
produces Portland slag cement conforming to BIS 455 of 2015. The cement is used
extensively in coastal areas where it will safeguard against corrosion due to chlorates and
sulphates which are present in the sea breeze

OTHERS
CEMENT 10%
1%
PIG IRON
1%
COKE
5%

DI PIPES
84%

DI PIPES COKE PIG IRON CEMENT OTHERS

During the FY 2019-20, company has produced 2,93,491 MT of Ductile Iron Pipes, which is
marginally lower by 5,023 MT compared to the FY 2018-19, which is attributable to loss of
production for 9 days during March, 2020, due to temporary suspension of operations, owing
to nationwide lockdown declared by the Government to prevent the spread of COVID-19.

Company continues to play a constructive role in the nation building movement by

contributing to water supply and infrastructure development in the country, which are the
thrust areas of the Government. During the FY 2019-20, company’s Ductile Iron Pipes of
about 7,300 KM have been used for transportation of potable water and sewerage under its
brand name “SRIPIPES” for various prestigious water projects across the country, thus
increasing its market share further.

Sustainability

Srikalahasti pipes limited believe that sustainability and profitability go hand in hand.

As one of India’s largest pipes and fittings manufacturers, we focus on how all our business
activities impact our Triple Bottom Line Goals. With 7 state-of-art manufacturing units
across India, sustainable manufacturing is a key goal, amongst others not because it is
‘obligatory’ but a necessity to be responsible towards the world we live in.

At srikalahasti pipes limited, Product Life Cycle Analysis [PLCA] has become a tool of
choice used to establish the sustainability impact of the products we manufacture and market.
Across all stages of the product life cycle, we assimilate very clear avenues where we are
able to reduce the environmental impact, create social capital and achieve cost efficiency

Focus on Clean Energy & Environment

Environmental

From procurement of raw materials, to ensuring sustainable manufacturing facilities, until

distribution, our resources are expended with the aim of valuing our larger communities and
the environment.

We are making conscious efforts to source local raw material. All our plants are ISO
certified. Most of our Plants are installed WITH solar panels and we efforts to harness wind
energy through collaborations at Chennai plant are on-going, all of which have enabled us to
reduce greenhouse gas emissions over 23% over the last 4 years.

Evidently, across our Product Life Cycle Analysis, the three major principles considered are
optimise resource utilisation, use environment-friendly materials, reduce all forms of waste
and reuse & recycle as much material as possible to realise sustainability goals.

Rain Water Harvesting

Rain Water Harvesting is implemented at our plants with capacity of 300 CUM/hr that
replenishes ground water with rain water. The Company’s other plants are in the process of
setting up rain water harvesting systems to be completed by end of the current fiscal...

Effluent Recycling

The Company has installed Sewage Treatment Plant in all its plants to recycle & reuse the
sewage water of capacity 150 kilo litres/ day (KLD).

Solid Waste Management

SKPL is committed to world-class solid waste management practices at all its plant & dispose
all type of hazardous wastes through Pollution Control Board authorized vendors

Compostable canteen waste is processed & convert waste food to organic manure. As a
policy we minimize the generation of plastic waste. All plastic waste is fully segregated and
recycled.

Noise Pollution

Each manufacturing facility ensures that noise levels are maintained within the levels
prescribed by respective state authorities. Noise is monitored at various locations in the plant.
In high noise areas, such as Diesel Generator and compressors; and grinder guidelines are
followed to ensure wearing ear protection (ear muffs and earplugs) as a mandatory
requirement.

Energy Saving Initiatives

Raw material usage and chemicals consumption are very closely monitored and losses are
kept at a minimum. SKPL’s consumption figures are comparative to similar industry
benchmarks worldwide. We have taken up a drive to replace our lighting with power-saving
LEDs

All production machineries & utilities used are aligned to world class energy saving norms,
and we ensure disposal of inefficient equipment every year. Additionally, all our plants are
certified for ISO 50001:2018 energy management systems.

Social

Our sustainability efforts extend to empowering social capital focused on skill development,
increasing employability and improving customer service abilities, through various initiatives
including plumber education efforts through which PPFL reaches out to thousands of utility
service providers educating them on various aspects of solvent applications, new techniques,
soft skills and product usage to better their service capabilities. Blood donation camps are
arranged periodically and a special initiative #Weareinitogether was organised which donated
essentials to plant operators and staff.

Resources Capabilities

Tangible Resources

Labor

 Their operations and performance depends on their ability to identify, attract and retain both
skilled and unskilled labor.

 They also engage contract laborers to facilitate their processing operations.

 In case such labor is unavailable or they are unable to identify and retain such laborers,
their business could be adversely affected.

 However, they cannot assure you that their employees will not unionize, or attempt to
unionize in the future, that they will not otherwise seek higher wages and enhanced employee
benefits.

 The unionization of their employees could result in an increase in wage expenses and their
cost of employee benefits, limit their ability to provide certain services to their customers,
cause customers to limit their use of their services due to the increased potential for strikes or
other work stoppages and result in increased expenditures in connection with the collective
bargaining process, any of which could have a material adverse effect on their business,
financial condition and results of operations.

 Although they generally do not engage these laborers directly, it is possible under Indian
law that they may be held responsible for wage payments to laborers engaged by contractors
should the contractors’ default on wage payments.

 Further, there is a possibility that the labor costs increase disproportionately due to increase
in wage/salary demand.
 In this event, if they are unable to pass on the increased costs to their customers, their
business operations and financial condition may be adversely affected.

Equipment

 Core box for DI pipes & fittings.

 Pipe lifting arrangement.
 Sand core shooting machine & spares.
 Centrifugal casting machine spares.
 Runner for centrifugal casting machine (CCM) machine.
 “J” hooks for UT cranes.
 Mono rail assembly for hot metal handling at CCM.
 Annealing furnace components of hr grade material.
 Zinc coating equipment.
 Cement lining equipment.
 Watering & dewatering process equipment.
 Bitumen coating equipment.
 Marking stencils for insertion & barrel marking.
 Inspection gauges DN 80 – DN2200.
 Restraint joints, flanges as per international standards,
 Online hydro-testing machine & its equipment.
 Type testing equipment as per EN-545/ IS: 2531 standard for DI pipes.
 Pipe testing equipment in compliance with kite marking certification.
 Off-line cutting & chamfering line including pipe handling system.

Fixed Assets

 Tangible Fixed Assets are stated at cost of acquisition or construction less accumulated
depreciation and impairment losses.
 The cost of assets comprises of its purchase price and any directly attributable cost of
bringing the assets to their location and working condition up-to the date of its intended use.

Intangible resources

Intangible assets are stated at cost less accumulated amortization. Cost includes directly
attributable expenditure for making the assets for its intended use.

Reputation

 Srikalahasti pipes limited is highly customer-driven. Srikalahasti pipes limited offers

customers high quality total solutions via one contact point. This allows customers to better
focus on their own core activities.

 Srikalahasti pipes limited strives for long-term partnerships with both customers and
suppliers.

 Srikalahasti pipes limited is an attractive employer with motivated employees, which is

reflected in professionalism and quality. In addition, employees are given every opportunity
to develop further.  Srikalahasti pipes limited attaches great importance to its responsibility
towards the environment and people's safety and health.

Intellectual property

Srikalahasti pipes limited do not have any trademark or intellectual property rights for their
business operations. However, Srikalahasti pipes limited Company uses the following logo
on its products and for corporate communications
Competitive advantage

 Srikalahasti pipes limited intend to continue competing vigorously to capture more market
share and adding more management personnel to manage their growth in an optimal way.

 Srikalahasti pipes limited believe that the principal factors affecting competition in their
business include client relationships reputation, the abilities of their management and
operating team and market focus.

 Srikalahasti pipes limited success also depends on their ability to understand the
preferences of their existing and prospective customers. Their competencies are however in
delivering timely executions well within the quality parameters.

 Price is an important aspect of their business' marketing mix and changing the price can
drastically affect the marketing tactics necessary for success. To remain aggressive and
capitalize a good market share, they believe in offering competitive prices to their customers.
This helps them to sustain the cut-throat competition and withhold a strong position in the
market.

 Their primary competence is the ability to provide timely deliveries and best quality
products, further being able to exploit the benefits of economies of scale and credit shortage
in the industry.

 Their business cycle is heavily dependent on timely payments being received from their
customers. In case that their products are not delivered on timely basis and/or the quality of
the products does not fulfil the requirements of their customer, it may lead to dissatisfaction.

 They believe that their management team's experience and their understanding of their
business will enable them to continue to take advantage of both current and future
opportunities. It is also expected to help them on addressing and mitigating various risks
inherent in their business, including significant competition.
REFERENCE

 https://www.electrosteel.com/about/group-profile.php
 https://www.indiamart.com/srikalahasthi-pip-tirupati/
 https://www.thehindu.com/business/srikalahasti-to-merge-with-parent-
ecl/article32776580.ece
 https://pib.gov.in/Pressreleaseshare.aspx?PRID=1677326
 https://www.indiainfoline.com/company/srikalahasthi-pipes-ltd/management-
discussions/3885
 https://mnacritique.mergersindia.com/srikalahasthi-pipes-electrosteel-castings-
reverse-merger/