To study market potential for Tata Steel Processing and Distribution Limited in Flat Steel products in Bangalore Region, Thesis of Marketing

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Identifying Market Potential for

Flat Products in Bangalore Region

By

D GuruSaiHarikumar

Tata Steel Processing and Distribution Ltd

Table of Contents

• Introduction

• Objectives

• Research Methodology

• Data

• Analysis

• Conclusion

Introduction

VSM Business Model

Material comes from TSL to TSPDL for processing and after processing

goes from TSPDL to End Customer.

Tata Steel Ltd  TSPDL  End Customer

Price and service terms are fixed by TSL and end customer.

NVSM Business Model

TSPDL directly sells material to the End Customer.

TSPDL  End Customer

Price and service terms are taken care by TSPDL.

Steel Service Center

• (^) Buys Steel from a Mill
• (^) Maintains Inventory
• (^) Processes as per customer specifications
• (^) Sells giving delivery as per schedule

Objective

• (^) To study market potential of steel – Flat Products

(HR/HRPO/CR)

• (^) To derive TSPDL’s present percentage share of sales

with respect to area, product or material.

• (^) To derive present percentage share of sales in

distribution of HR.

Research Methodology

• (^) Population: 8 industrial areas in Bangalore
• (^) Sampling Technique: Stratified Sampling
• (^) Population:

 Bommasandra Industrial Area

 Dobbaspet Industrial Area

 Aarohalli Industrial Area

 Haritha Industrial Area

 Doddanakundi Industrial Area

 Narsapur Industrial Area

 Veerasandra Industrial Area

 Peenya Industrial Area

 Hosakote Industrial Area

 Doddaballapur Industrial Area

Data

• (^) Total Average Requirement of Flat Products in Bangalore Region (Area-wise): 5654 Mt
• (^) Total Average Requirement of Flat Products in Bangalore Region (Material-wise): 5654 Mt 30% 17% 52% Area-wise Requirements Bommasandra Hosakote Peenya 25% 10% 59% 1% 5% Material-wise Requirements CR GI GP HR HRPO

Data

• (^) Total Average Requirement of Flat Products in Bangalore Region (Segment-wise): 5654Mt
• (^) Total Average Requirement of Flat Products in Bangalore Region (Sub segment wise): 5654Mt 6% 87% 2% 4% Segment Wise Requirements Automobile General Engg Infrastructure Power 0, 0, 0, 0, 0, 0 0,02 0,06^ 0, Sub Segment Wise Requirements Electrical Equipment Fabrication Food Processing Industrial Products Solar Equipments White Goods Material Handling Systems 4 W Commercial Projects

Analysis

Segment-wise Analysis (HR/HRPO)

0 10000 20000 30000 40000 50000 60000 2386 593 0 0 0 4200 59322 1572 24 2748 Total Annual Sales Total Market Potential

Analysis

Sub Segment Wise Analysis (HR/HRPO)

Sub Segment Total Annual Sales Total Market Potential Percentage Share of Sales 4 Wheeler 2413 4200 57% Commercial Projects 0 1572 0% Electrical Equipment 0 1440 0% Fabrication 188 35928 1% Food Processing 0 2400 0% Industrial Products 377 19626 2% Material Handling Systems 0 1224 0%

Obstructions in Sales

• (^) Material non-availability in commercial & special grade for market distribution
• (^) Thickness >16 mm plates not available in Tata Steel’s product basket
• (^) Flexibility to work above contracted man-hours is absent
• (^) Only one External Processing Agent (EPA) and limited Out-bound services
• (^) Inventory holding capacity is limited due to storage constraint
• (^) Recurring Quality issues with high-thickness plates which are consumed by L&E segments.
• (^) Complaints resolution time is more than customer’s expectation.
• (^) Customers expect Open credit facility for the transactions which may increase interest costs or block working capital incase of delay /defaults.
• (^) Customers unwillingness to give LC or BG may affect the working capital of TSPDL

Suggestions

• (^) Pay hourly wages to labor
  • (^) And make them to work only when needed
  • (^) This will introduce flexibility in work hours
• (^) Allot one hour every day for complaint resolution
  • (^) Sort out the complaints
  • (^) If every one has a common issue, address that issue first.
  • (^) Prioritize issues based on their occurrence and seriousness
  • (^) For example, if there are 10 complaints and every complaint has a common issue i.e., late delivery, then solve this issue by various methods to make delivery on time.