PROJECT REPORT OF TATA STEEL

Title of the project:

Retail market assessment for Tata GI pipes in Hooghly, Howrah & Kolkata South.

SUBMITTED TO:
MR.TVS.SHENOY
PRESENTED BY:

SUBHADIP MITRA, IIPM (KOLKATA) ABHISHEK MALLICK, IIPM (KOLKATA)

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CERTIFICATE OF APPROVAL
The following Summer Internship Report titled Retail market assessment for Tata GI pipes in Hooghly, Howrah & Kolkata South is hereby approved as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of MBA (Master of Business Administration) for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn there in but approve the Summer Internship Report only for the purpose it is submitted. Summer Internship Report Examination Committee for evaluation of Summer Internship Report Organizational Guide : Signature : Name – Mr. T V Srinivas Shenoy : Designation – Head Marketing (STP), Tubes SBU : Address – Tata Tubes SBU, 3rd Floor, Tata Center, 43 J N Road, Kolkata - 700071 West Bengal : Tel No – 033 22886996 (O), 9231056817 (M) : Email – tvshenoy@tatasteel.com

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ACKNOWLEDGEMENT
Firstly we thank Mr. Dipankar Sarkar, Dean, IIPM- Kolkata & Mr. Kulbir Chauhan, Dean, IIPM- Kolkata for the motivation given at the beginning of the project. We thanks to our project guide, Prof. Bijan D. Gupta for lending us his full support. His indispensable guidance and help played the major role in completing our project successfully. We are thankful to the esteemed company Tata Steel Limited for giving us the wonderful opportunity to undergo an invaluable training program and complete the Summer Project in Kolkata.

This training program proved to be an invaluable and extremely useful experience which both enhanced and increased our knowledge of Marketing Management. This was made even more meaningful because we trained under and were guided by some of the most knowledgeable and experienced persons in this significant field.

We therefore extend our gratitude to Mr. TVS. Shenoy(Head Marketing STP, Tubes SBU) for giving us the chance to train and work under his watchful eye.

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We would also like to thank Mr. Shiddarth Mishra (Regional Sales Manager), Mr. Sayandeb Mukherjee (Manager Marketing – STP), Mr. Udipta Sanyal (Senior Manager Sales), Mr. Joydeep Majumder (Assistant Manager Sales) for giving us the opportunity to work under his supervision. It would not have been easy for us to complete the project without their whole-hearted cooperation and support.

We would like to thanks Mrs. Bhawna M Raj (Sr. Manager HR/IR Commercial) who helped us whenever we needed and also thanks to all the member of HR department.

We are also thankful to all the retailers of Tata Pipes in Hooghly, Howrah & Kolkata South.

We extend our gratitude to all the members of the Marketing Department who have been very kind and welcoming. We will never forget how they extended their support to us whenever we needed it.

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TABLE OF CONTENT              EXECUTIVE SUMMARY COMPANY PROFILE PRODUCTS OFFERING BY TATA STEEL SBU OF TATA STEEL MANUFACTURING PROCESS INTRODUCTION TO THE PROJECT RESEARCH METHODOLOGY TATA STEEL TUBES – SWOT ANALYSIS STP DATA ANALYSIS FINDINGS SUGGESTION BIBLIOGRAPHY 4 .

this industry is characterized by huge over capacities. TATA Steel is the no. Th is indu stry is h igh ly f rag men ted with mo re than hun dred man uf actu ring un its. 1 company in the Indian tubes industry and is the only company with the well-established national network. most of them having strong regional presence.” The sub objectives related to the objectives are:  To find out that what are the attributes which customer prefers more while purchasing commercial tubes.  To find out the key customer requirements and expectation of GI pipes. Hooghly. There is also severe threat of substitution from PVC Pipes primarily in plumbing and irrigation segments. South Kolkata. Tube Division.  To find out the different sizes which are in more demand in these market. Tata Steel is the leading manufacturer of commercial Tubes in the mark et.  To find out the different segments and corresponding customer group of commercial pipes. 50% of supplies emanate from the small manufacturers. The main objective of the research here done on behalf of TATA STEEL Tubes Division is: “To find out the potential of standard Tubes in Howrah.  To find out the closest competitors of TATA TUBES in these market.EXECUTIVE SUMMARY Tubes Division. With an agg regate cap acity of ov er 21lakh MT. 5 .

6 . By making various graphs and pie charts we have tried our best to make our research analysis more specific and clear to all. To find out the market share of different players in GI Pipes industries in these market. Keep ing the main o bjective in min d we h av e find ou t man y facts wh ich are beneficial for us to come to our conclusion and will also help the company in various ways. The study was designed as a market survey and w a s c o n d u c t e d w i t h t h e h e l p o f questionnaire.  The research and the survey are conducted in the proper and the structured manner to achieve our objective at its best possible way.  To find out the different complaints which are acknowledged by the end users.  To find out the constraints which are faced by TATA Tubes in way of increasing market shares?  To find out the substitute of GI Pipes and reason of substitute. We prepared a structured questionnaire and data has been collected from all our respondents by conducting interviews. With the help of collected data several analyses have been done.

The important facts which we have finally got are:  Tata pipes are mostly preferred in the market because of their superior quality and brand name. which are checked by the customers before buying the GI pipes. galvanizing quality and surface finishing are the most important attributes. weld quality. authenticity. Plumbers Farmers Irrigation  Durability of pipes.  Steel quality.  Key segments and customer group of GI pipes are : Market Segment Plumbing Customer Group House Builders. 7 . leak proof pipes. uniform thickness and rust free pipes are key customer requirements and expectations.

Currently ranked 315th Fortune Global 500. Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions. Jharkhand. is undergoing a million tons capacity expansion to be completed by September 2005. The company intends to raise its capacity to 15 million tons per annum by 2010 through organic growth and acquisitions. Tata Steel is also India's second-largest and most profitable company in private sector. Muthuraman stated that of the 100 million tons. It is based in Jamshedpur.COMPANY PROFILE Tata Steel formerly known as TISCO (Tata Iron and Steel Company Limited). it is part of Tata Group of companies it was established in 1907.4 million tons and the balance capacity will be put up or acquired elsewhere in India and overseas. It is the largest private sector steel company in India in terms of domestic production. The Jamshedpur capacity will produce 7. NatSteel production at two 8 . Tata Steel has set an ambitious target to achieve a capacity of 100 million tons by 2015. Managing Director B.4 million tons.. which produces both flat and long products. It is now one of the world's most geographically-diversified steel producers. Tata Steel is the 8th most valuable brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010.2 million tons. with operations in 26 countries and a commercial presence in over 50 countries Tata Steel is Asia's first and India's largest integrated private sector steel company. The 4 million tons Jamshedpur plant. India it is the world's seventh largest steel company with an annual crude steel capacity of 31 million tons. which includes Corus production at 18.  Overseas acquisitions have already added up to 21.

4-million tons plant in Bangladesh 5 million tons capacity expansion at Jamshedpur (India) 4.  Tata Steel has lined up a series of Greenfield projects in India and outside which includes. Tata is looking to add another 29 million tons through the acquisition route.        6 million tons plant in Orissa (India) 12 million tons in Jharkhand (India) 5 million tons in Chhattisgarh (India) 3-million tons plant in Iran 2.5 million tons plant in Vietnam (feasibility studies underway) 9 .million tons and Millennium Steel production at 1.2 million tons.

wire rods. ITC merged with Tata Steel to form the Tubes Division in 1985. Tata Pipes. construction re-bars. Tata Tiscon (re-bars). PRODUCT SPECIFICATION Steel Tube Technology opened up in India in the early 1950s with the establishment of the Indian Tube Company Ltd.000 tones. Tata Bearings. Tata Shaktee (Galvanized Corrugated Sheets). The Construction Solution Group explores new avenues for steel utilization by techniques that are economical. IS 1161 British Standards: BS 1387 American Specifications: ASTM A 53 10 . (ITC). After the disinvestments by British Steel. the company has introduced brands like Tata Steelium (the world’s first branded Cold Rolled Steel). a joint venture between Tata Steel and Stewarts & Lloyds UK (Now a part of British Steel). Tata Agrico (hand tools and implements) and Tata Iron (galvanized wire products). rings and bearings. galvanized sheets. Tata Steel has also developed "galvanized annealed" cold rolled steel with technical assistance from Nippon steel & Areolar for high-end auto applications. use less natural resources and energy.PRODUCTS Tata Steel's products include hot and cold rolled coils and sheets. STANDARD TUBES Indian Standards: IS 1239 Part-1. In an attempt to 'discommodities' steel. which today is the leading Welded Steel Tube Company in India with a manufacturing capacity of 200. tubes.

branded as Tata Iron. erected and commissioned thousands of tons of equipment’s ranging from overhead cranes to high precision components. it aspires to strengthen its market presence by expanding and modernizing its commercial and precision tube manufacturing capacity. It is one of the largest players in the global Ferro chrome market. water pumps.Tata Agrico is the first organized manufacturer in India of hand tools and implements for application in agriculture.  FERRO ALLOYS AND MINERALS DIVISION: Operates chrome mines and has unit for making Ferro chrome and Ferro manganese.  WIRE DIVISION: A pioneer in the manufacture of steel wires in India. etc. The division also operates a wholly owned subsidiary in Sri Lanka. including a rocket launch pad for the Indian Space and Research Organization. manufacture. developed. clutch release bearings and tapped roller bearing for two wheelers.STRATEGIC BUSINESS UNITS Apart from the main steel division. double row selfaligning bearings. 11 .  RINGS AND AGRICO DIVISION: The ring plants manufactures forged and rolled rings for bearings and automotive components . it produces coated and uncoated wires.  TATA GROWTH SHOP (TGS): Has designed. fans.  TUBES DIVISION: The biggest steel tube manufacturer with the largest market share in the country. Tata Steel's operations are grouped under the Following strategic business units.  BEARINGS DIVISIONS: Manufactures ball bearings.

Constant quality check is carried out during the manufacturing process.70mm OD to 76. the finest quality steel from Tata Steel’s state of art HSM plant. with thickness ranging from 0. The manufacturing process is governed by comprehensive quality plan. economizers. It is also 12 . After edge slitting. Used extensively in power and industrial boilers. before the ends are welded together in the flash welder. The manufacturing process involves forming of hot rolled steel strips in to a tabular shape. nondestructive testing is done both online and off line this process is particularly useful for ensuring the quality of boiler tubes.91mm to 4. with size ranges from 12. Standard/Commercial tubes are manufactured from hot rolled steel. long lasting and customized Precision welded tubes from Tata Steel meet national and international standard. automobiles and other engineering applications. precision welded tubes are manufactured with customary TATA commitment to quality. Normalizing removes metallurgical differences between the weld zone and the body of the tube and the effect of cold working caused in the forming process. In order to identify defects both in parent material as well as the welded zone. with a close control on dimensions and surface finish is maintained. The continuous tube is then straightened and cut to the required length. Welding and sizing follow this. This restores the grain structure and there by stress relieves the tubes. both in the two and three inch mill. super heaters.06mm. the strip is progressively bent into tabular form. Forming takes place at an ambient temperature. The state of the art 2 inch mill has an automatic high speed cut off machine. heat exchangers.2mm OD. The tubes are finally sent to the normalizing furnace. The HR strip coil stock is then leveled and cut. the edges being weld under pressure using induction heating.COMMERCIAL TUBE MILL Reliable. transformers.

yield and tensile strength. Normalization is done for all boiler and cold drawn tubes. using induction heating.20mm.necessary for achieving the desired level of mechanical properties.88 to 76. with the commissioning of which. subsequently cold rolled to close tolerances.7mm to 76. It may be done for other tubes also if specified. in august 1993 anew 2-inch precision mill facility was procured. is the feed-stock for the manufacture of tubes. a very close control on dimensions and surface finish of the tubes is possible. Pre-treated hot rolled strip. 13 . The thickness range is from 0.  The process entails forming of hot rolled steel strip into tubular shape and welding the edges under pressure. Until 1993 these tubes were manufactured entirely in the old 3-inch ERW mill which can produce tubes with outside diameter 90d) ranging from 15.99mm became commercially available. such as hardness.6mmto4.88mm and with a lower thick ness of 0. The current manufacturing range extends from 12. New products are developed to meet changing customer needs MANUFACTURING PROCESS  Commercial tubes are manufactured by the high frequency induction welding process which commonly known as the HFIW process.2mm OD.06mm. Precision welded tubes are reverse engineered to meet exact customer requirements. Commercial tubes of OD as low as 15. Since forming takes place at ambient temperature using cold rolled strip.

its automatic high speed cut-off machine is designed to cut tubes at speeds of 100 meters/minute.6to10%. strip thickness etc.  The process of tube making in the 3 inch Commercial tube mill. The mill proper consists of series of forming rolls which bend the strip progressively into tubular form by Centre forming with abutting edges.it has a state-of-the-art automatic weld-temperature controller. 14 . The superior edge forming technique employed here has made it possible to roll tubes with thickness/diameter ratio ranging from 1. The strip edges are then trimmed to ensure cleanest possible surface for welding. In the 3-inch HFIW mill. through quite similar to that of the old mill. the hot rolled strips are leveled and the end cuts square to enable end to end welding of coils to form endless lengths of strips for maintaining the continuity of the mill. incorporates the latest technology. which ensures complete consistency in the weld quality irrespective of any minor variations in the mill speed.

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 Loose ends bagged with Hessian/polythene  Bundles. ends bagged with Hessian/polythene  Bundles wrapped with wax paper and Hessian/polythene Special finishes or modes of the packing. PACKAGING The tubes are packed lose as well as in bundles and as required. 16 .COLD DRAWING The cold-draw plant is an important complement to the tubes . are undertaken after mutual discussion. The tubes are covered with polythene bags and polythene-lined Hessian bags. in so required. A wide assortment of sizes within the general range is possible by means of cold drawing. The following modes of packing are generally used. and produced by cold drawing the pre-treated tube through a die over a plug to maintain both the outside and the inside dimensions of the tube to very close tolerances.if required in non-standard sizes for specific end uses with close dimensional tolerances and superior physical/mechanical properties.

 ESSAR STEEL: Producer of sponge iron. and steel flats.SOME OF THE LEADING COMPANIES IN INDIAN STEEL INDUSTRY  BOKARO STEEL PLANT: Steel manufacturer.  VIZAG STEEL: Producer of pig iron and steel.  TATA STEEL: Producer and supplier of wire rods.  JINDAL IRON & STEEL: Producer of galvanized steel products. bars.  JINDAL STEEL & POWER: Manufacturer of mild steel slabs and sponge iron. steel and iron ore pellets.  STEEL AUTHORITY OF INDIA: Manufacturer of steel and iron. 17 .

INTRODUCTION TO THE PROJECT  The study is undertaken to know the retailer’s perspective while selling a product.  To understand how the Tata Company is different in marketing its product. Hooghly.  To find the market size of Steel tubes in Howrah. 18 .  To find out the areas of satisfactions and dissatisfactions of Tata tube.  To find out new possibilities. NEED OF THE STUDY  To gather proper knowledge as well as understand the scenario of the Market.  To analyze data and make recommendations about possible improvement in attributes of the product so that demand for Tata’s product can be increased.  To find out the factors that affects the demand for steel tubes. South Kolkata. RESEARCH OBJECTIVE  To give correct information to the management of Tata tube for having the detailed market scenario of Steel tubes.

LIMITATIONS OF THE STUDY  All the retailers of Howrah.  Since the topic was sensitive the retailers were very reluctant to talk about it.  Considering the mammoth size of the market the sample size was probably inadequate as covering each and every department.  Respondent’s unwillingness to provide adequate information were consequent upon time constraints and personal inconveniences.  This study was conducted to know the market prospects of Tata GI pipes in those districts.  Since the topic was very vast and difficult it was not possible to touch each and every aspect of the topic in a short time period.SCOPE OF THE STUDY  The study of this project is confined to Howrah. was not feasible. 19 . Hooghly.  Sampling and non-sampling errors might have crept in and attempt is made to minimize them. Kolkata South districts only. which was at geographical disparate location. Hooghly and South Kolkata were not covered because of constraints of time.

Howrah & Hooghly.RESEARCH METHODOLOHY The methodology adopted for this project is exploratory nature. Their inputs have been valuable. PRIMARY SOURCE We have visited many retailers which are in Kolkata South. since there is no hypothesis that has to be tested. which are its features and the buying pattern of the product. we get the first hand information regarding the product. There have been two sources of information have been collected. The conclusion has to be draw by exploratory research work. SAMPLING SAMPLE SIZE KOLKATA SOUTH HOWRAH HOOGHLY = = = = 57 25 18 14 20 . SECONDARY SOURCES Internet and web sites of company help us more to collect good amount of data for our project.

MAJOR PLAYERS OF WEST BENGAL PIPE INDUSTRY GI SEGMENT PVC SEGMENT TATA ORIPLAST NEZONE SUPREME ZINDAL ASTOR 21 .

 Lack of cost-effectiveness. WEAKNESS  Lack of well-trained sales people. Expensive labor & power. The biggest R&D facility in the Industry. 22 . THREAT     Increase in price of raw materials.  Absence of Innovation.  Lack of Advertisement. Cost effective PVC pipes. High Market share of competitors.  Manufacture long lasting & easy to fix pipes. Varieties of product in the Market.TATA GI PIPES . OPPOURTUNITIES  New Project. Long existence in the Market.SWOT ANALYSIS STRENGTH     Brand name of Tata.

23 .  Eco-friendly. POSITIONING PRODUCT  Status Symbol.  Upper Middle Class.  Businessman. TARGETING CUSTOMER  Executives.STP (SEGMENTATION. POSITIONING) SEGMENTATION OF CLASS OF CUSTOMER  Middle Class. TARGETING .  Upper Class.

DATA ANALYSIS SAMPLE SIZE KOLKATA SOUTH HOWRAH HOOGHLY = = = = 57 25 18 14 24 .

00% 10.00% 0.68% 100% 60. because of its quality.37% 15.26% 19.69% 8.1.00% 30.00% 20. MAIN BRANDS IN GI PIPES: COMPANY TATA NEZONE JINDAL OTHERS TOTAL RESPONDENT 32 11 9 5 57 PERCENTAGE 56.00% 40. service long existence in the Market and Brand Image. 25 .00% 50.00% TATA NEZONE JINDAL OTHERS COMMENT: Though there are many Brands in GI segment. still plumbers are recommending Tata as the premium Brand.

18% 100% BRANDS RECOMMENDED BY CUSTOMER 40. Peoples who belongs to relatively higher income group they are mostly opting for Tata pipes.33% 19. because of costeffectiveness and easy to fix.00% COMMENT: Customers prefer PVC pipes over GI.57% 13.00% 10.00% 30.00% 20.63% 11.00% 25.00% 0.00% 35.29% 21.2. 26 . Here customers mean mostly plumbers.00% 15. BRANDS RECOMMENDED BYCUSTOMER COMPANY ORIPLAST SUPREME OTHER PVC TATA NON-TATA TOTAL RESPONDENT 20 11 7 13 6 57 PERCENTAGE 34.00% 5.

PIPE MARKET IN HOOGHLY DISTRICT 27 .

21. It is clear from the above graph that PVC has a higher market share than Tata.89% 87. Another factor is that PVC pipes are easy to fix and less time consuming which is a boon for the plumbers that’s why plumbers prefer PVC over GI pipes. Calculation done depending on the Revenue Sales. 28 .000 2.72.01% 79.95% 17.80.14% 3.000 4. the reason can be the lesser price with a good quality product which is offering by the PVC companies.90% 80.42.18.16.000 22.93.63.82.97% 4.B: The entire calculation is done depending on the data given by retailers & assumptions of market scenario.85.000 1.97.78.83.57% 11.28% 84.000 2.30% 3. COMMENT: The entire calculation done depending on the sales by the Retailers.23% N.59% 10% 8. MARKET SHARE IN HOOGHLY DISTRICT PLACE MOGRA CHANDANGAR PANDUA KONNAGAR SREERAMPORE CHINSURA DANKUNI TARAKESHWAR TOLTAL MARKET SIZE (Rs) 2.07% 79.88.15% 4.15% 2. Data collected only from Tata Retailer.65% 87.90% 5.17% 6.35% 3.42% PVC 85.56% 15.77% 2.91.53% 90.97.000 3.000 2.40% 17.000 TATA 12.51% 84.81.000 2.88.35% NON-TATA 3.43% 4.3.

most of the area’s water is highly Iron affected.MARKET SHARE IN HOOGHLY DISTRICT NON-TATA 4% TATA 12% PVC 84% COMMENT: In Hooghly. so over here life of a GI pipe is very less. 29 . One of the best retailers in Hooghly District Kundu & Co. So not only Tata even market of Non-Tata is also down here & eventually the entire market Captured by PVC. told us the difference is so high that PVC sale is five times that of Tata. Sale of PVC is few times over here than Tata.

00% 25.00% 0.00% 5.00% 20. SALES OF TATA PIPES IN HOOGHLY DISTRICT IN LAST FIVE YEARS 35.00% 10.00% 30.4.00% 2006-07 2007-08 2008-09 2009-10 2010-11 COMMENT: In Hooghly post-recession period the sales figure improved. 30 .00% 15.

PIPE MARKET IN HOWRAH DISTRICT 31 .

75.03% 79.90.32.25.000 7.26% 3.04% TOTAL 20.37.) BALLY 1.39% 68.000 21.000 21.000 15.41% 69.18% 32 .00.75% 70.23% 2.23% GHUSURI 45.10% 5.87% 83.000 20.45.13% 78.81% 6.91.80.21.80.000 15.85% 71.98% 71.00.000 8.44% 9.30.31.54% 3.27% 6.000 100% ------ ------ SHIBPUR 1.59.23% HOWRAH MAIDAN MULLICK FATAK BANDHAGHAT 98.00.55% 78.97.14% ULUBERIA 1.30.28% SALKIA 2.90.00.95% 92.000 18.9% 4.45% 79.000 5.000 28.000 8.97.83% 6.18% SANTRAGACHI 2.95.20% 76.000 11.83% 87. MARKET SHARE IN HOWRAH DISTRICT PLACE MARKET SIZE (Rs.25.5.25% 12.07% BAKULTALA 56.87% 1.000 18.24% 78.02% 8.32% ANDUL 1.58% 12.71% TATA PVC NON-TATA BANKRA 1.62% 3.36% HOWRAH AC 2.55.

but the entire market is capturing by PVC. 33 . Data collected only from Tata Retailer. Ghusuri was not calculated because there was only one retailer & he deals with only Tata. due to low price & good quality of PVC pipes it is capturing the entire market. MARKET SHARE IN HOWRAH DISTRICT TATA PVC NON-TATA COMMENT: In Howrah District similar thing is happening. Shree Krishna Tubes only deals with the Tata product.B: The entire calculation is done depending on the data given by retailers & assumptions of the Market scenario.N. Calculation done depending on the Revenue Sales. is one of the leading retailers in Howrah he told us that the Market size is very big out here. Shree Krishna Tubes Co.

SALES OF TATA PIPES IN HOWRAH DISTRICT IN LAST FIVE YEARS 30.00% 0.00% 20.00% 25.00% 2006-07 2007-08 2008-09 2009-10 2010-11 COMMENT: In Howrah sales figures are also fluctuating. Pre 2009-10 there was a recession period due to that the Market was down. 34 . After that with the improvement of Market sales is also improving.6. because it is incomplete.00% 5.00% 15.00% 10. in the year 2009-10 sales were increased & we are not considering 2010-11 data.

PIPE MARKET IN KOLKATA SOUTH 35 .

34% 13.000 3.19.31% 76.8% 13.66. MARKET SHARE IN SOUTH KOLKATA PLACE MARKET SIZE (Rs.00.59.66% 20.33.000 12.) 6.20.90% 17.30. 36 .3% 10.72% N.65.35% 6.5% 7.36% JADAVPUR KALIGHAT BEHALA GARIAHAT GARIA TOLLYGUNGE TOTAL 11.000 3.92% 83.000 TATA PVC NONTATA 4.000 36.80.80.B: The entire calculation is done depending on the data given by retailers & assumptions of the Market scenario.7.04% 69. Calculation done depending on the Revenue sales.75.000 1.33% 74.000 9.77% 8.14% 82.55% 90.32% 78.1% 3.66.12% 13.40.06% 4.85.35% 10. Data collected only from Tata Retailers.

So from this concept it is clear that Tata is dealing in revenue whereas PVC is dealing in volume sales. Premium Customer Segment & naturally high price. 59 whereas similar size of pipe is available in PVC segment in Rs. One of the best Retailer in South Kolkata Sanitary Sales give us the data that they have sold 100-120 tons of Tata pipes in the financial year of 2010-11. more or less the entire market being captured by PVC. price/ ft. but Tata is still earning good revenue due to its Brand Image.MARKET SHARE IN SOUTH KOLKATA NON-TATA 7% Sales TATA 14% PVC 79% COMMENT: In South Kolkata the original pipe market size is huge. so price of Tata pipe is more than five times of price of PVC pipe.5 Cr. So to compete with Tata. PVC has to sell five pipes where Tata has to sell only one pipe. From this data it is quite obvious that PVC sale is few times higher than Tata sales. of 20mm Tata pipe is Rs. 11. For example. Rupees of PVC pipes. 37 . but they have sold 3-3. but in respect of the Market size Tata is not performing up to the mark. So if Tata increase the volume sell then they can regain the market to some extent.

though it is not increasing rather decreasing. 38 .8. SALES OF TATA PIPES IN SOUTH KOLKATA IN LAST FIVE YEARS 25% 20% 15% 10% 5% 0% 2006-07 2007-08 2008-09 2009-10 2010-11 COMMENT: This is the sales figure for Tata pipes in South Kolkata for last five years. From this representation it is clear that sales are not constant it is fluctuating every year.

HOWRAH. Hooghly & South Kolkata. COMMENT: This is the total market share of Tata.9.B: The entire calculation is done depending on the data given by retailers & assumptions of the Market scenario. which actually helps them to increase the market share. HOOGHLY NON-TATA 6% TATA 14% PVC 80% N. 39 . PVC & Non-Tata in the pipe market of Howrah. as well as they deal in volume not in the revenue. TOTAL MARKET SHARE IN KOLKATA SOUTH. High market share of PVC due to their low price & good quality pipes. Data collected only from Tata Retailers. Calculation done depending on the Revenue sales.

real estate companies to sell Tata pipes.74% 17.00% 80.49% SUGGESTION BY RETAILERS 100.00% 60. Tata has to recruit a sales force those who visit the project site. SUGGESTION BY RETAILERS SUGGESTION PRICE SHOULD BE DECREASED MORE ADVERTISEMENT SALES FORCE OTHERS NO SUGGESTION SAMPLE SIZE 57 57 57 57 57 RESPONDENT 51 21 30 10 5 PERCENTAGE 88. if Tata wants to increase the market share then first of all they have to set a competitive price.27% 8. 40 .53% 52.00% COMMENT: According to the retailers.00% 0.10.53% 37. where a customer gets a value for money. Advertisement is another parameter which has to done effectively both TV commercials and print media.00% 20.00% 40.

But if we consider Brand Image then we can see that Tata is a much preferred Brand than any other in the Industry. 3.AVERAGE. 5. Availability and Service.VERY GOOD.POOR. But in case of Cost-effectiveness PVC even Non-Tata is better than Tata. 4. 2. because as there is no such difference between Tata and PVC in terms of Quality so the less costly product will sell more. COMPARISON OF ATTRIBUTES 6 5 4 3 2 1 0 TATA NON-TATA PVC 1.GOOD.EXECELLENT COMMENT: From the above graph we can see that there is no such difference between Tata and PVC when it comes to Quality.11. 41 . So from the above illustration we can say that Cost-effectiveness is the weakness of Tata pipes where Brand Image is Tata’s biggest strength.

44% 100% QUALITY AVAILABILITY PRICE BRAND IMAGE COMMENT: From the above graph we can say that two major attributes which influence sales are Quality & Price.25% 12. Now it is clear that Quality means good Quality & Price means competitive price. 42 . ATTRIBUTES INFLUENCE SALES ATTRIBUTES QUALITY AVAILABILITY PRICE BRAND IMAGE TOTAL RESPONDENT 27 4 19 7 57 PERCENTAGE 47.47% 33.84% 6.12. So customer is always looking for a product which is of good quality with competitive price or we can say that Cost-effective product.

/Ft. COSTING OF PIPING FOR ONE FLOOR COMPANY LENGTH 20Ft. So it is absolutely clear that PVC pipes are more cost-effective than Tata pipes. 43 . PRICE COMPARISON SIZE 20mm 25mm TATA Rs./Ft. 10Ft./Ft. 15mm 20mm 25mm 2870 180 220 160 TOTAL 560 COMMENT: The first table portrait the price difference among the Tata. 20Ft. 20Ft.13. Oriplast & PVC. 59 77 ORIPLAST Rs. The second table shows that if a customer done its house plumbing with Tata pipes then he will spend more than five times than if he does it with PVC. 11 16 30 47 NEZONE Rs. SIZE 15mm 20mm 25mm PRICE 920 1180 770 TATA TOTAL PVC 20Ft. 10Ft.

 Tata pipes usually cater the premium customer segment. many retailers as well as end users have demanded pipes fittings should also be manufactured by the company.  Marketing people do not visit the retailers’ outlets regularly. Tata has to set a competitive price.  Tata pipes are more used in retail than contract.  Many local manufacturers are selling their products using fake stamp of Tata pipes.FINDINGS  Most of the retailers expect good quality with low price.  Lack of push selling by Retailers.  Retailers & plumbers are complaining about the deterioration of quality Tata pipes specially galvanizing & bending quality of pipes.  The market leader is Oriplast.  Since quality of Tata pipes is excellent.  To increase the market share. 44 .

 Fewer profit margins discourage the small retailers to sell the Tata pipes. 45 .  Jindal and Nizon are main competitors of Tata pipes in the GI segment.  The proper means of communication and an effective advertisement can tend to increase in the sale of Tata tubes.  PVC pipes are swallowing the market of steel pipes because of its low price.  Tata pipes can increase the market share by increasing the number of distributors.

 Enhance and leverage Brand equity in plumbing and irrigation segment.  Strengthening retail network in identified territories. frightened TV commercials.  Emotional.  Innovative technology that increases the longevity of the GI pipes.  Customer complaint should be resolved within the predetermined duration.  Like other competitors.  Increase value for money of the product.  Lucrative scheme for plumbers & retailers to motivate them for push selling.  Enhance Brand visibility through retail identity program.  Need for additional range of product for catering to new markets/customers.SUGGESTION  Well trained sales force to visit the new projects.  Use print media & roadside hoardings as a promotional tactics. 46 . Tata pipes should also conduct product promotional program regularly.  Positioning the product as a status symbol for the customer.

47 . Different schemes offered by Tata Pipes should also be reached to the small retailers.  Tie-up with some plastic tank manufacturing Company.  Re-design the website to provide consultation for the customer as well. Re-design the website to provide consultation for the customer as well.  Reduce order execution and delivery time so that Tata pipes would tap the market opportunities.

 Primary data collected from retailers of Tata Pipes in Hooghly.BIBLIOGRAPHY  Primary data collected from Tata steel distributor. April 2011 48 . Howrah & Kolkata South.tatasteel.com  www.tatasteelwikipedia.  www.com  WORLD STEEL REVIEW.tatatubes.com  www.