Professional Documents
Culture Documents
ON
Submitted By
Mr. ANKIT SINGH
05XQCM6011
UNDER THE GUIDANCE OF
Prof. SUMITHRA SREENATH
M P Birla Institute of management
Bangalore
I also declare that this dissertation has not been submitted earlier to any
Institute/organization for the award of any degree or diploma.
Place: Bangalore
Place: Bangalore
Date: (Dr N S Malavalli)
Principal
CERTIFICATE
Place: Bangalore
Date: (Prof. Sumitra Sreenath)
ACKNOWLEDGEMENT
ANKIT SINGH
Contents
EXECUTIVE SUMMARY
INTRODUCTION
The first step of any research study is literature study. Based on the study
objective during the literature study the specific areas and issue up on which data
gathering will be decided. It is a paramount importance because it equips the researcher
with macro view of micro issues.
It gives exhaustive information to the researcher in the area and provides
diversified view on particular subject. Academic journals, conference proceedings, report
books etc are must be tapped depending on the nature of the problem. It is the process
that one source would lead to another. Te literature review encompasses different kinds
of information sources concerning the identification of various reason behind the
assessment if service quality. It started with search in internet and textbooks and other
relevant magazines. The earlier studies, if any which are similar to the study, concerning
the problem at hand must necessarily be surveyed and examined before a definition of the
research problem is given. This is done to find out what data and other materials, if any
are available for optional purpose. All this will enable a researcher to take new strides in
the field for furtherance for knowledge, i.e., he can move up starting from the existing
premise.
The central idea in review of literature is data gathering. So, review of literature is
carried on. A researcher should carefully scrutinize the available information and use
discretion, to find out whether the gathered data is adequate and sufficient for the
problem.
PROBLEM STATEMENT
The task was to make a market analysis and competitor analysis of the Roofing
Sheets market and to formulate Strategies to improve the market share and awareness
among the influencers in the market about “Everlast Aluminium Roofing Sheet” of
Hindalco Industries
OBJECTIVES
¾ To improve the market share of the company’s product in line with that of
competitors.
¾ To get an idea about customer’s or influencer’s interests and awareness towards
the product.
¾ To find out about the strategies through which the presentation or a market
development activity may be undertaken for the product.
¾ To identify strategies through which the Key Influencers for the product in the
market may be created.
METHODOLOGY
¾ A structured questionnaire for the purpose of collecting necessary data has been
used.
¾ A sample consisted of 30 respondents has been considered for the study across
Bangalore city.
¾ Simple percentage analysis has been done on the data collected from the
Respondents.
¾ The data presentation is done through Tables and Graphs.
SAMPLING TECHNIQUE
The sampling technique used for this research is Simple Random sampling.
SAMPLE SIZE
¾ The chosen sample size is 30.
¾ The sample is derived from the respondents within Bangalore city.
¾ The sample was provided by the company.
SAMPLE DESCRIPTION
The subjects for the sampling were provided by the company which covered a spectrum
of Influencers Satisfaction, what according to the influencers the product was better
compared to other roofing sheets in the market, which were the mostly used roofing
sheets both in Retail segment as well as in Institutional segment.
CONCLUSION
The company has recorded a strong performance despite the challenging conditions in
Aluminium and Copper business posed by the falling tariffs as well as production related
issues. The success of its cost optimization initiatives at its power plant in Hirakud as
well as higher price realisations is evident from the higher operating margins that the
Company has achieved.
Going forward, the Company will deliver impressively from both of its businesses.
The higher volumes from the brownfield expansions and acquired downstream assets in
aluminium coupled with expectations of better price realisations will help maintain the
strong performance of the aluminium business. The Company has also made good
progress on the strategic growth projects that will propel it into the league of global
majors.
CHAPTER-2
INDUSTRY PROFILE
Aluminium Industry Outlook
COMPANY PROFILE
THE ADITYA BIRLA GROUP
The Aditya Birla Group is India's first truly multinational corporation. Global in vision,
rooted in Indian values, The Group is driven by a ethic pegged on value creation for its
multiple stakeholders. A US$ 7.59 billion conglomerate, with a market capitalization of
US$ 7 billion, it is anchored by an extraordinary force of 72,000 employees belonging to
over 20 different nationalities. Over 30 per cent of its revenues flow from its operations
across the world. The Group's products and services offer distinctive customer solutions.
Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand,
Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and china. A premium
conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it
operates. Such as viscose staple fiber, non-ferrous metals, cement, viscose filament yarn,
branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial
services.
Fact file:
1. · The world no. 1 in viscose staple fibre
2. The world's largest single location palm oil producer
3. Asia's largest integrated aluminium producer
4. A globally competitive, fast-growing copper producer
5. The world's third largest producer of insulators
6. Globally, the fourth largest producer of carbon black
7. The world's eighth largest producer of cement, and the largest in a single
Geography
8. India's premier branded garments player
9. Among India's most energy efficient private sector fertilizer plants
10. India's second largest producer of viscose filament yarn
11. It is the no. 2 private sector insurance company, and the fourth largest asset
management company in India
12. The Group has also made successful forays into the IT and BPO sectors.
HINDALCO INDUSTRY
Hindalco Industries, a flagship company of the Aditya Birla Group, is India's largest
integrated aluminium producer. The company has also emerged as one of the leading
player in the Copper business in India with the acquisition of Copper business of
erstwhile Indo Gulf Corporation, an Aditya Birla Group company. The company is the
market leader with 41% market share.
To continue to deliver superior value to its shareholders in the future and as part of
its growth strategy, Hindalco has embarked on a brownfield expansion in Renukoot. A
matching increase in the captive power generating capacity is also on the anvil. The
project is being implemented at a cost of RS. 18000 billion. Its first phase was completed,
when the 9th pot line with an installed capacity of 33000 TPA was commissioned in
September 2001.The 10th Pot line and 11th Pot line marks the milestone of the
company’s Brownfield expansion.
The Project Rocket-2k was implemented successfully, aimed at improving profitability
through increase in thru-put, better efficiencies and productivity as well as reduced cost
and the annualized savings is estimated at around Rs.400-500 million over a two-year
period.
The company recently entered the RS 250-crore branded foils market under the
'Hindalco Wrap' brands name. With this launch, the company wants to address a category
in the FMCG sector. Launched in 54 cities across the country, Hindalco Wrap is currently
available at most retail outlets in a unique dispenser pack at RS 42 for a nine-meter roll.
The company also plans to enter the aluminium-based kitchen utility products market in a
big way. The company has divested its entire stake in Indo Gulf Fertilizers and
Mangalore Refineries and Petrochemicals Ltd. (MRPL). The MRPL stake was sold to
ONGC during 2002-03.
Acquisitions
The acquisition of Copper business from Erstwhile Indo Gulf Corporation is
completed and Feb 2003 being the effective date. The High Courts of Maharashtra and
UP has approved the above Scheme. The swap ration is fixed at one share of Hindalco for
every 12 shares of erstwhile Indo Gulf Corp.
The company has also acquired an Australian company viz. Nify Copper
Mines, located in Western Australia. Further the company has acquired yet another
copper mine- Mt.Gordon at Queensland in Australia during the year 2003-04. This
acquisition of MGCM is made through its wholly owned subsidiary in Australia viz. Birla
Mineral Resources PTY Ltd. for a gross consideration of Aus $ 21 Million.Hindalco
acquired around 38.84 million shares of Indian Aluminium Company from Alcan
Aluminium (Alcan), (Indal) aggregating to 74.6% holding. In July 2002, the company
made an open offer for the remaining shareholding in Indian Aluminium Company
(INDAL) at a price of Rs.120 per share. With this open offer, the stake has been
increased from 74.60% to 95.90 %. In 2003-04, the company has raised its strategic stake
in Indian Aluminium Company (INDAL) from 95.90% to 96.50%, through an Open
Offer made in accordance with regulatory requirements. During 2005 the company took
over all the business of INDAL with the exception of the business pertaining to the Foil
plant at Kollur in Andhra Pradesh and issued shares to the minority shareholders of
INDAL in the ratio 1 Share of Rs.10/- in Hindalco, for every 7 equity shares held by the
minority shareholder in INDAL. The company stake in the INDAL stays unchanged.
Indal's strength in Alumina and downstream products would ideally dovetail with
Hindalco's strong presence in metal. It is also among the world's lowest cost aluminium
producers.
Enhancement of Production with Current installed Capacity.
The company's Carbon Black Plant in Egypt has become the largest producer in the
world and Fourth largest Carbon Black player in the world.
During 2005 the company has planned to de-bottleneck the Special Alumina Capacity at
Belguam to embark on value added exports in the future and also the company is
evaluating to expand the refinery capacity from 350000 tpa to 650000 tpa at Belguam.
Further the company is also planning to expand its refinery capacity at Muri from 110000
tpa to 450000 tpa which is under process and likely to be commissioned by 2007. Utkal
Alumina, a joint venture with Alcan to set up a 1 to 1.5 million tpa alumina refinery in
orissa is under process and likely to be commissioned soon. The company is holding 55%
Stake in the project. The company has signed Memorandum of Under standing (MOU)
with the Government of Jharkhand for implementing a Greenfield smelter with 325000
tpa capacity, backed by a 750 MW dedicated power with coal mines and MOU with
Government of Orissa to set up an integrated Greenfield aluminium project with a
capacity to produce a million tpa of alumina and 260000 metric tpa of aluminium upon
completion with is backed by a 650 MW power with coal mines.
The company has planned to expand its copper smelter capacity from 250000 tpa
to 500000 tpa. The commissioning trials at the new plant have already begun and the
commercial production is likely to start soon.
HINDALCO’S OPERATIONS IN INDIA
THE RIGHT PRODUCT MIX
The aluminum division's product range includes alumina chemicals, primary aluminium
ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels.
Hindalco has launched its products through different brand names in recent years, which
include Aura for alloy wheels, Freshwrapp for kitchen foil and Everlast for roofing
sheets. Our exclusive showroom, the exhibits include products like windows, doors,
furniture, ladder, roofing sheets and ceiling and cladding panels.
Alumina chemicals
The company's alumina chemical business is a leader in manufacturing and marketing of
speciality alumina and alumina hydrate products in the country.
Copper Division
The copper plant produces world-class copper cathodes, continuous cast copper rods and
precious metals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other
phosphatic fertilizers and phospho-gypsum are also produced at this plant.
With the commissioning of the 100MW captive power unit at Hirakud, Orissa in April,
2005 and the output from the unit having been stabilized to full capacity in June 2005,
there has been a very significant cost saving as grid power dependence has been
eliminated by generating power from captive coal .
• Increase the hot rolled coil density.
• To improve quality management system by adhering to ISO 9001:2000.
Landmark move to Strengthen Copper Mining Portfolio
With the commissioning of the 100MW captive power unit at Hirakud, Orissa in April,
2005 and the output from the unit having been stabilized to full capacity in June 2005,
there has been a very significant cost saving as grid power dependence has been
eliminated by generating power from captive coal .
COMPANY’S CONTRIBUTION TO THE SOCIETY
• Strong emphasis on adoption of cleaner technology.
• Installed dry scrubbing system on all pot lines.
• Adopted dry disposal and stacking of both red mud and fly ash.
• Process developed by in-house research and development, to recycle spent pot
lining. This process has been patented.
• Greenery developed within and all around factory and colony area.
• Exhaustive plantations done on mined areas.
• Adequate measures have been taken to prevent pollution. Wherever required
control devices have been installed to control air emissions, water and sewage
effluents. All emissions are within the norms as prescribed by the Pollution
Control Board.
CHAPTER-4
RESEARCH METHODOLOGY
NEED OF THE STUDY
The first step of any research study is literature study. Based on the study
objective during the literature study the specific areas and issue up on which data
gathering will be decided. It is a paramount importance because it equips the researcher
with macro view of micro issues.
It gives exhaustive information to the researcher in the area and provides
diversified view on particular subject. Academic journals, conference proceedings, report
books etc are must be tapped depending on the nature of the problem.
It is the process that one source would lead to another. Te literature review
encompasses different kinds of information sources concerning the identification of
various reason behind the assessment if service quality. It started with search in internet
and textbooks and other relevant magazines. The earlier studies, if any which are similar
to the study, concerning the problem at hand must necessarily be surveyed and examined
before a definition of the research problem is given. This is done to find out what data
and other materials, if any are available for optional purpose. All this will enable a
researcher to take new strides in the field for furtherance for knowledge, i.e., he can move
up starting from the existing premise.
The central idea in review of literature is data gathering. So, review of literature is carried
on. A researcher should carefully scrutinize the available information and use discretion,
to find out whether the gathered data is adequate and sufficient for the problem.
SAMPLING TECHNIQUE
The sampling technique used for this research is Simple Random sampling.
SAMPLE SIZE
The chosen sample size is 30.The sample is derived from the respondents within
Bangalore city. The sample was provided by the company
SAMPLE DESCRIPTION
The subjects for the sampling were provided by the company which covered a spectrum
of Influencers Satisfaction, what according to the influencers the product was better
compared to other roofing sheets in the market, which were the mostly used roofing
sheets both in Retail segment as well as in Institutional segment.
COLLECTION OF DATA
Primary Data
Primary data regarding the product are collected with the help of questionnaire,
through direct interview with the Influencers in Bangalore.
Secondary Data
Secondary data is the information that already exist somewhere, which has been
collected for another purpose. In this study, secondary data has been collected from
Company Website.
Methodology
¾ A structured questionnaire for the purpose of collecting necessary data has been
used.
¾ A sample consisted of 30 respondents has been considered for the study across
Bangalore city.
¾ Simple percentage analysis has been done on the data collected from the
Respondents.
¾ The data presentation is done through Tables and Graphs.
DATA COLLECTION UNSTRUMENT
The Questionnaire method of data collection is quite popular, particularly
the way of personal interview. Questions related to objectives of the study, form major
portion of the questionnaire. It mainly consists of multiple choice questions so that
respondent can mark one of the several choices of answers. Questionnaire is formed
based on the ideas obtained from researcher’s discussion of the problem with guide. The
survey has conducted only in Bangalore.
The total number of respondents chosen for survey was 30, who were segmented on the
basis of nature/type. The respondents are the key influencers in the institutional segment
of the market.
The responses which were collected through a structured questionnaire they were
on the preference scale. So this has increased the accuracy of the feedbacks obtained and
the performance thereby.
Table – 1
16
14
Number of Respondents
12
Architects
10
8 Civil Engineers
6
Structural Engineers
4
2
0
Influencer Categories
Inference
There were 30 respondents out of which 15 are Architects, 10 are Civil Engineers and 5
are Structural Engineers.
Table-2
12
10
yes
6
no
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
From the above graph it is known that out of 30 respondents 24 of them suggest Roofing
sheets in their design and 4 of them do not suggest in their design.
Table-3
12
10
8
Aluminium sheets
Galvanised Iron Sheets
Zincalumin Sheets
6 Asbestos Sheets
Polycarbonated Sheets
Galvalum
Others[ hard plastic]
4
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
From the above graph it is known that the respondents on an average suggest Galvanized
Iron sheet and Galvalum Sheets more than Aluminium Roofing Sheets in their Design.
Only when the cost factor is not considered by the clients then the Architects does insist
Aluminium roofing sheets to the design.
Table- 4
1) What are the criteria you look before choosing Roofing sheets?
12
10
Cost
Quality
Durability or longer life
6
Corrossion REsistance
Light Weight
Appearance
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
From the above graph it is known that the Respondents consider the Cost and the
Durability are the important Criteria while choosing the Roofing Sheets. And this is the
reason, because the costs of the Aluminium Roofing sheets are higher, the Respondents
do not prefer in their design.
Table-5
Yes
4
No
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
From the above graph it is known that 16 of the Respondents were aware of Everlast
Aluminium roofing sheet of Hindalco Industries and 14 of them were unaware.
TABLE-6
1) How do you rate the pricing of Aluminium roofing sheets?
No. of No. of Civil No. of structural
Architects-15 Engineers-10 Engineers- 5
a) Reasonable 1 4 1
b) Value for Money 2 1 2
c) At par with other Brands 1 1 0
d) Expensive 3 2 0
e) Don’t know 5 2 1
Resonable
value for money
3 At Par With Other Brands
Expensive
Don't Know
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
From the above table it is known that many of the Respondents were not sure or did not
knew about the price of the Aluminium Roofing sheets in the market and others felt it
was favorable for those who does not consider the cost factor by looking at the benefits of
the material.
TABLE-7
1) Are you aware of Colour Coated Aluminium Roofing Sheets of Hindalco
Industries?
Yes
4
No
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
From the above graph it is known that 16 of the Respondents were aware of Color Coated
Aluminium roofing sheet of Hindalco Industries and 14 of them were unaware.
TABLE-8
1) What are the responses of customers regarding the aluminium roofing sheets of
Hindalco industries?
0
No. of Architects-15 No. of Civil Engineers-10 No. of structural Engineers- 5
Inference
As this response was regarding the feedback from the customers about the Aluminium
Roofing Sheets which they had used, most of the Respondents had no answers because
they had not received or collected any feedback from their customers regarding the
Aluminium Roofing Sheets and the others were of the opinion that the product is more
Durable, Maintenance free and does have a high Resale value when compared to other
Roofing Sheets in the market.
CHAPTER-6
SUMMARY OF
RECOMMENDATIONS
AND CONCLUSIONS
Findings are based on the Interactions
1) A large portion of Architects, structural engineers and civil engineers are aware of
the existence of the Aluminium roofing sheets of Hindalco.
2) The population which was aware of the product had the following concerns-
9 The cost of the product was too high when compared to other roofing
materials.
9 They are concerned about the strength of the material because of its light
weight.
3) Many of the respondents consider corrosion resistance, weight and durability as
the most important characteristics while buying roofing sheets.
4) The respondents were not familiar with the Hindalco’s brand “EVERLAST”
Aluminium roofing sheets.
5) Many of the respondents are unaware of the colour coated Aluminium roofing
sheets of Hindalco industry.
6) Galvalum sheets usage in the institutional market is increasing due to the material
has almost all the features a Aluminium roofing sheets constitutes and the cost of
the product is also low compared to Aluminium roofing sheets.
The price difference between the plain and the colour coated Aluminium roofing sheets is
very high. As per the respondents they put forth or suggest 2-3 kinds of roofing sheets in
the design for their clients but the ultimate decision maker about which product to
purchase is the client and not the Architects. The clients, if he is a small or medium
investor would prefer a low or medium cost material for his roof as he looks for
achieving the Break Even point i.e. the amount which is invested in the roofing sheets
can be written off within a short period.
The Feedback provided by the Respondents when they were
personally questioned by the Researcher
¾ The product brochure should be sent to all the Architects, Structural engineers and
Civil engineers so that they should know about the company’s product and its
benefits.
¾ An exclusive showroom should be started in the city which should display all the
products of Hindalco. This would help in direct marketing of the products and
also enormous amount of advertisement for the company’s products.
¾ Advertise about the product in the papers or magazines like Times Property and in
Portals like Magic Bricks.com which will help the consumers of both retail and
Institutional categories to know about the product.
¾ The retail market is scattered but has got a huge potential for the product, so try to
personally cater to the retail consumers by supplying as per their requirement.
¾ Enter into new domestic market and explore the Retail and Institutional market
for the product.
¾ Provide with the total roofing solution; laying and fixing of the product should be
managed by the group of people who will be appointed by the company and this
service should be freely provided and this cost which will be incurred by the
company should be included in the material price.
¾ Advertise the product with the photograph of the sheets used in the project on the
Billboards in the highways and near to the large construction sites.
¾ A price catalogue, samples of the sheets and a list of projects where the
Aluminium roofing sheets has been used should be sent to all the Influencers of
different categories.
¾ The company’s sales manager should try to meet with the influencers in the
market and influence them about the product as they are the people who make
decisions before the construction.
CONCLUSION
The company has recorded a strong performance despite the challenging conditions in
Aluminium and Copper business posed by the falling tariffs as well as production related
issues. The success of its cost optimization initiatives at its power plant in Hirakud as
well as higher price realisations is evident from the higher operating margins that the
Company has achieved.
Going forward, the Company will deliver impressively from both of its businesses. The
higher volumes from the brownfield expansions and acquired downstream assets in
aluminium coupled with expectations of better price realisations will help maintain the
strong performance of the aluminium business. The Company has also made good
progress on the strategic growth projects that will propel it into the league of global
majors.
The strong balance sheet, prudent financial practices as well as expectations of improved
operations give the confidence that the Company will be able to economically finance its
strong growth plans. On the whole the Company is poised to deliver superior value to its
stakeholders on a continuing basis.
ANNEXURE
QUESTIONNAIRE
STUDY OF INSTITUTIONAL MARKET FOR
EVERLAST ALUMINIUM ROOFING SHEETS OF
HINDALCO INDUSTRIES LIMITED
1) NAME:
2) PROFESSION:
a) Architect ٱ
b) Civil Engineer ٱ
c) Contractor/ Fabricator ٱ
d) Others[ Please Specify]___________________
6) What are the criteria that you look before choosing Roofing Sheets?
a) Cost ٱ
b) Quality ٱ
c) Durability ٱ
d) Corrossion Resistance ٱ
e) Longer Life ٱ
f) Light Weight ٱ
g) Appearance ٱ
h) Others [Please Specify] _____________
7) Are you aware of Everlast Aluminium Roofing Sheets of
Hindalco Industries Limited?
a) Yes ٱ
b) No ٱ
Websites
1) www.hindalco.com
2) www.aluminium.com
3) www.google.com
4) www.adityabirla.com
Books
1) Marketing management- Kotler Keller
2) Business magazines