Professional Documents
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DEVELOPMENT,PUNE
By
Debadri Ghosh
22020343028
In (Partial)fulfillment
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
Acknowledgement
Unlimited learning, humbleness and approachability of the employees, inclusive culture, and
lots of mentorships are what define my stint at “SAIL RITES Bengal Wagon Industries
Pvt Ltd”. I had the opportunity to work with the factory team and learned the whole
The welcoming atmosphere in the team made me feel like a family in SRBWIPL, where help
is always a text away. My manager Mr. Sushanta Bhattacharjee has provided me with all
kinds of support and encouraged me throughout my project. The support I received from
various levels at SRBWIPL left me with gratitude and pride in being part of such an
organization.
I would like to also express my gratitude towards faculties and management, and all co-
interns for giving me the right guidance and giving me the platform at the first place.
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
Completion Certificate
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
Contents
1. Abstract................................................................................................................................5
2. Company Profile..................................................................................................................5
3. Work Profile.........................................................................................................................6
3.1 Project: Gaining In-Depth Business Understanding........................................................6
3.1.1 Problem Statement.............................................................................................6
3.1.2 Solution................................................................................................................6
4. Conclusions and Recommendations............................................................................29
5. Limitations......................................................................................................................30
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
1. Abstract
The report titled "Container Business Diversification Strategy for SAIL RITES BENGAL
diversify into container manufacturing. The report includes a company profile of SAIL
Authority of India Ltd. (SAIL) and RITES Limited, and outlines its mission, vision, and
including the problem statement and a comprehensive solution. The report covers the
dimensions of containers, and applicable specifications. The report aims to provide valuable
insights and recommendations for the company's container business diversification strategy.
2. Company Profile
Venture Company (JVC) of Steel Authority of India Ltd. (SAIL) and RITES Limited
(RITES), each holding equal equity stake of 50%. SAIL is a Maharatna PSU and a
Government Company under the administrative control of the Ministry of Steel. RITES, a
Miniratna PSU is a 100% Government Company under the administrative control of the
Steel and Ministry of Railways). SRBWIPL would primarily manufacture wagons including
high-end specialized wagons for Indian Railways and other domestic and overseas customers.
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
etc. They always strive to deliver outstanding customer service consistently and create a
distinctive brand image. Be innovative while striving to ensure professional satisfaction to its
employees and being a preferred employer. Assess and fulfill the expectations of the
society and community with the mission to become a world-class leader in rolling stock
manufacturing and turnkey solutions in the field of rolling stock manufacturing and related
3. Work Profile
3.1 Project: Container Business Diversification Feasibility Report for SAIL RITES
The following are the objectives for understanding the feasibility of container manufacturing
2) Types of Container
5) ISO Standards
6) Recommendations
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
3.1.2 Solution
(https://www.morganstanley.com/ideas/investment-opportunities-in-india) India is
poised to become world’s 3rd Largest Economy by 2027 surpassing Germany and
Japan. India’s GDP could more than double from $3.5 trillion today to surpass $7.5
trillion by 2031. Its share of global exports could also double over that period. Share
2031. This will create a strong demand for the Transportation of containers both for
International and Domestic Trade. Demand of Containers for Storage & Pota cabins is
easy to fill and empty and having an internal volume of I m3 (1 cubic meter) or more.
A typical ISO shipping container is made from a 'weathering steel' commonly known
as 'Cor-ten' steel. Cor-ten steel is a corrosion resistant steel that is used within many
industries where exposed steel sections are necessary, e.g. building panels, facades
and sculptures.
3. Types of Containers:
a) There are five types of Containers as per ISO 668 & ISO 1496
ISO series I freight containers are totally enclosed General purpose types and certain
specific purpose types (closed, vented, ventilated or open top) which are suitable for
international exchange and for conveyance by road, rail and sea, including
are the most well-known and recognized containers in use today. Used to transport
goods and cargo by sea and land, they are strong, watertight, and incredibly durable.
Made with solid Carten steel with reinforced corners to enable stacking up to 8
containers high on the exposed decks of a ship on long voyages around the world,
Thermal and refrigerated containers have temperature controls so goods can be kept at
usually higher than the outside temperature. Refrigerated units keep temperatures
lower than the outside temperature. Both containers are well insulated to ensure that
Part 3: Tank Containers for liquids, gases and pressurized dry bulks
Tanks are storage containers designed to hold liquids, gases and pressurized dry
bulks. They are usually constructed out of anti-corrosive materials because of the
chemicals they are used to carry. Tanks may also be used to store dry goods like
sugar, but they are most often used exclusively for liquids.
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
These types of Container are used for the transport of dry bulk solids, capable of
withstanding the loads resulting from filling, transport motions and discharging of
non-packaged dry bulk solids, having filling and discharge apertures and fittings.
These are the containers having no side walls/superstructure but having a base/flat
structure with same length and width as the base of series I containers, and equipped
There are 13 types of standard ISO containers categorized in four types on the basis of
length (i.e. 40 ft, 30 ft, 20 ft & 10 ft) and different heights (i.e. 9 ft 6 in, 8 ft 6 in, 8 ft
Most common of these are 20 ft and 40 ft which are Maritime Standard ISO
Containers. Apart from standard ISO containers, there are several other domestic non-
ISO standard containers (i.e 45 ft, 24 ft and 22 ft length) having height 8 ft 6 in and
width 8 ft.
In addition, there are other non-standard dwarf containers of proprietary designs that
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
of Typical Container
In early 2021, state-run Container Corporation of India (CONCOR), for the first time,
issued a tender for Indian companies to make 6,000 containers for it. Braithwaite and
BHEL were two companies that qualified. There are a few other companies that have
ventured into container manufacturing to meet some portion of this demand. Leading
industry houses like Jindal Steel are planning to enter the market by setting up plants in
Odisha and Chandigarh. For the domestic segment alone, Container Corp of India has a
requirement of around 50,000 containers in the next three years. With this demand in
mind, the shipping industry in India will most likely manufacture containers
domestically.
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
a. Up until a few years ago, the global container manufacturing industry was dominated by
manufacturers in China. Indian businesses also relied on China to meet more than 90%
of their shipping container demands. However, recent years have seen an emergence of
container manufacturing industry in India. The Bureau of Indian Standards has awarded
the first license to Tata Steel’s Jamshedpur plant to produce Corten steel used in
shipping containers. This will reduce India’s dependency on China for the import of raw
materials needed for container manufacturing. Container prices in India have been
steadily decreasing due to increasing traffic at major ports. There’s now a surplus of
(Extracts placed at Annexure 9 B) indicates that it received orders from CONCOR for
1000 nos. and also from & MS D P World for manufacture of ISO containers. Companies
Annual report however admits that ‘sector has vigorous competition affecting its
pricing. Report indicates capex investment of Rs 5.11 Cr for this purpose and
Rs 4.24 Lakhs
Take a look at the table below to get an overview of the top container manufacturers in
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7. Potential Buyers
1. CONCOR
3. Hind Terminals
5. Adani Logistics
6. Pretine Logistics
7. Navkar Rails
8. Darsal
9. India Infrastructure
40ft. High-Cube 40ft. 8ft. 9ft. 6in. 39ft. Sin. 7ft. 8in. 8ft. 10
76 CBM
Container (12.18m) (2.44m) (2.90m) (11.99m) (2.3lm) in.
(2.64m)
9. Applicable Specifications:
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9. ISO I 496-I (I 990) Series I freight containers- Specification and testing Part-
I - General Cargo Containers for General Purpose
Punching Machine
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Testing Truck
Press Machine.
Shot Blasting
Paint Booth.
Depending upon the scale of production, level of automation will increase along with
associated inputs.
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11. In house testing and certification requirements (ISO 1496 – 1) for each design:
a) Staking tests for different loading combination: This test is be carried out to
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b) Lifting test (Lifting from Four top corner fittings): This test is be carried out
withstand being lifted, from the four top corner fittings, with the lifting forces
lifted from the top corner fittings with the lifting forces applied at any angle
between the vertical and 60° to the horizontal, these being the only recognized
This test is also regarded as proving the ability of the floor and base structure to
withstand the forces arising from acceleration of the payload in lifting operations.
c) Lifting test (Lifting from four bottom corner fittings): This test is carried
out to prove the ability of a container to withstand being lifted, from its four
bottom corner fittings, by means of lifting devices bearing on the bottom corner
fittings only and attached to a single transverse central spreader beam, above the
container.
d) Restraint test (Longitudinal): This test is carried out to prove the ability of a
e) Strength test for end wall: This test is carried out to prove the ability of a
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f) Strength test for side wall: This test is be carried out to prove the ability of a
g) Strength test for the roof: This test shall be carried out to prove the ability of
the rigid roof of a container, where fitted, to withstand the loads imposed by
h) Floor strength test: This test is carried out to prove the ability of a container
i) Transverse rigidity test: This test is carried out to prove the ability of a
j) Longitudinal rigidity test: This test is carried out to prove the ability of a
k) Forklift lifting tests: This test is carried out on any 1CC, 1C, 1CX, 1D or 1DX
l) Grappler arm lifting test (from the base): This test is carried out on any
container which is fitted with fixtures for being lifted by grappler arms or similar
m) Weatherproof test
Bureau VERITAS
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Germanischer Lloyd
patterns are also changing with the emergence of large, rapidly growing Asian
economies, most notably China and India. Firms are developing sophisticated global
and outsourcing other parts of the production processes. Efficient supply chains also
demand. Container shipping has been one of the prerequisites - probably even the
driving force - for the dynamic development of global trade. It is difficult to imagine
globalization taking place without the assistance provided by the freight container or
In the last few years share of containerized cargo in India has peaked up but in the last
few months the trade is feeling the heat of container shortage in the market. While
there could be several facts that resulted in the tight supply scenario but the underline
largely lies with slowdown of manufacturing industry in China and its aftermath. This
shortage condition can be utilized as opportunity to tap the supply of containers from
India.
For a ball park idea, it is mentioned that the fleet of various types of containers of
CONCOR is around 35, 000. In October 2019, CONCOR placed an order for 11,600
containers on a Chinese firm out of which around 9,500 have been supplied already
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taking CONCOT fleet to around 45, 000. The on-going international pandemic has
reduced movement of container trains in India and also maritime movements across
traffic picks up, the demand is likely to increase in India also. With the
CONCOR and other operators. Old containers are also planned to be phased out by
CONCOR. In view of the above scenario it can be projected that after COVID-19
impact on the economy and maritime trade is over, there is likelihood of a demand of
The procurement cost of a 40 feet container by CONCOR was around Rs. 2.20 lakhs
per container when order placed by them in October, 2022. After factoring in
currency fluctuation, the present cost is around Rs. 2.35 lakhs per container. It may be
noted that these costs are landed costs of the containers in India and not
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Basic Dimensions
Outside Length 6058 mm (+0, -6)
Outside Width 2438 mm (+0, -5)
Outside Height 2896 mm (+0, -5)
Door Size
Number of Doors 4
Door Height 2566 mm
Width 1600 mm
Opening 180 degree
Overall tare weight 2750Kg
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Container Business Diversification Feasibility Report for SAIL RITES BENGAL WAGON INDUSTRIES LTD.
Basic Dimensions
Outside Length 6058 mm (+0,-6)
Outside Width 2438 mm (+0,-5)
Outside Height 2896 mm (+0,-5)
Door Size
Number of Doors 4
Door Height 2566 mm
Width 2286 mm
Opening 270 degree
Overall tare weight 2600 Kg
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4. Recommendations:
like Kulti is technically feasible with few inputs required like jigs, fixtures etc.
The need for some of the M&Ps (like Sheet Corrugation Machine) can be offset
Demand for new containers is likely to be generated again in around 18-24 months’
time (after COVID-19 and its major economic effects are over).
The cost of manufacturing shall be the critical factor. The landed cost of a
container from China is around Rs. 2.35 Lakhs as against an estimate cost of
In view of the above, even after a detailed costing review at Kulti, RITES may
have to approach a purchaser like CONCOR for an assured off take agreement
(like the one with Railway Board for manufacture of wagon at Kulti).
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5. Limitations
One restriction on the project was that it could only employ a small number of SRBWIL’s
resources. The reports and analytics would be produced more quickly with a more potent
instrument.
The internship was only long enough to get a quick overview of SRBWIL's extensive
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