1. 1
SUMMER TRAINING REPORT ON
INCREASE IN SALE IN ORGANISED/UNORGANISED SECTOR IN THE
ALUMINIUM EXTRUSION INDUSTRY THROUGH MARKETING
EFFORT OF EXPANISION AND RETENTION
For
INDO ALUSYS INDUSTRIES LIMITED
Under the supervision
Of
Mr. Gagan Jain
(Deputy Manager Marketing)
Duration- 18th May-19th July,2016
Manish Singh
New Delhi Institute Of Management
PGDM 2015-2017
2. 2
ACKNOWLEDGEMENT
At the outset I would like to place on record my gratitude to all concerned
respectable executives of Indo Alusys Industry Ltd., Delhi for giving me this
opportunity of Internship which has been a pure learning experience and has
enlightened my knowledge and skills in the industry.
I would also like to express my gratitude towards the New Delhi Institute Of
Management for giving me the opportunity to undergo two months internship at
Indo Alusys Industries Ltd.
I am extremely thankful to Mr. Gagan Jain, Deputy Manager, who has been my
industry mentor and has helped me immensely to relate theoretical concepts to
actual business scenario and has guided me throughout the internship period. I
am indeed greatly indebted to him and everybody concerned at Indo Alusys
who have provided me with valuable guidance that contributed to the successful
completion of this marketing project.
Manish Singh
PGDM(2015-2017)
New Delhi Institute Of Management
3. 3
CONTENTS
SL. NO. DESCRIPTION PAGE NO.
1 Introduction to the project
1.1 Company Background
1.2 Overview of the industry
1.3 Major players in Indian Aluminium Industry
1.4 Extrusion industry
1.5 Aluminium consumption in Extrusion Industry
1.6 Extrusion industry in Delhi/NCR
1.7 Sale in Retail sector
2 Job assigned/Title
2.1 Key responsibilities
2.2 Stages of the project
2.3 Brief description of the problem
3 Objective of study
4.1 Methodology
4.2 Questionnaire
4.3 Project constraints
5 Collection and analysis of data
5.1 Chapter summary
5.2 Data analysis
5.3 Observations
5.4 Market analysis
6 Findings
7 Swot analysis
8 Recommendations
4. 4
9 Conclusion
10 Bibliography
1. Introduction to the project
1.1 Company Background
Brief Insight of Indo Alusys Inds. Ltd.:
The story of Indo Alusys Industries Ltd. (IAIL) formerly Mahavir Aluminium
Ltd. is one of innovation, dedication and diversification since our inception in
1982. They have established themselves as a leading manufacturer of
Aluminium Extruded Products / Profiles in India. Besides being a pacesetter for
the industry, they have acquired an able track record of rendering satisfactory
services to our valuable customers in India and globally.
IAIL plant is located 70 kms from the capital of India, New Delhi in the highly
developed Industrial Area of Bhiwadi in the Alwar district of Rajasthan and its
Marketing office is at Tolstoy Marg ,Connaught Place, New Delhi-10001.
IAIL has Hydraulic Extrusion Presses of 2100 US tonnes, 1650 US tonnes,
1250 US tonnes and 1100 US tonnes capacity. The operations are controlled by
Micro-processor based technology and programmable logic control (PLC)
system for the above extrusion presses. Furnaces are equipped with fuel
efficient regulative burners. Our installed capacity has now reached to 22,000
MTPA to meet the ever increasing demands of the market.
The Plant has a most modern foundry to cast high quality Aluminium alloy
billets applying hot top casting process. The alloy composition of the billets is
controlled by computerized spectrometer at the stage of melting and subsequent
casting. The plant also has sophisticated extrusion handling systems /
equipments, which includes Automatic Extrusion Pullers and other related
equipment like Lift-off Conveyer, Walking Beam, Storage / Transfer Conveyer,
Saw Conveyer etc. to avoid manual handling and to produce scratch free
material suitable for subsequent treatments like Anodizing, Electro Coloring
5. 5
and Powder Coating. The technology has been acquired from USA, Germany
and Italy.
IAIL has the distinction of being the only extrusion Company in India to have
ISO 9002 and ISO 14001:2004 Certification from world renowned certifying
agency DET NORSKE VERITAS (DNV) of Netherland.
At IAIL quality is thoroughly checked through a series of quality control
measures that are applied at every stage of operation to ensure ''ZERO
DEFECT.'' Very strict and close control of raw material Aluminum and its
alloys is achieved by analyzing and controlling chemical composition through a
computerized spectrometer.
Extrusion dies which form the heart of an extrusion process are manufactured in
house by computerized CNC Milling and CNC Wire Cut machine and Spark-
Erosion-cum-Electrical Discharge machines and subsequently polished through
super finish polishing machine to achieve a very high degree of dimensional
accuracy, close tolerances and smooth surface finish for its extruded profiles
and sections. IAIL offers wide range of extruded profiles for all major end use
segments and have approximately 8000 dies to cater to high quality extrusion
requirements in various industry sectors.
IAIL has its in-house facilities for anodizing and electro coloring with
sophisticated technology acquired from Italy. Anodizing and Electro Coloring is
an electro chemical process which gives an anodic thickness of the desired
microns. According to the requirement this can be deployed by making
available natural (Mat/Satin), very light bronze, medium bronze, dark bronze
and black shades. Besides these colors, IAIL has processes for various other
colors to suit the requirement of its customers with up to 30 microns and length
up to 6.2 meters.
IAIL has powder coating facility, which is the ultimate and latest in
architectural field. Powder coating of polyester, or epoxy powder paints are
excellent in their quality that contains 100 percent solid material. This is
without non-essential or superfluous components being applied to the objects by
one of the well-known methods of electrostatic charging. Theycan undertake
powder coating of aluminium extruded profile of length of 25 feet / 7.62 meter
in different colours.
IAIL can supply the material in various color shades with coating of 60 to 80
microns or more as per requirements of its customers.
Stable, rich and uniform color surface
6. 6
Excellent durability after special electro chemical treatment
Anti Corrosionand weathering of colored surface against air pollution, sunrays
and humidity
No discoloration by ultra-violet rays
More than 60 percent of the aluminium products in the world are produced by
this process.This process is acknowledged as better as and more economical
than any other process.
A minimum quantity of 3000 kg in one specification is acceptable in case of
sections included in this catalogue. In case of enquiry for a new section, a
minimum quantity of 5000 kg is acceptable. By “specification” theymean
section number cut length, alloy and temper, packing etc.
Indo Alusys is also known for manufacturing high utility pre fabricated
components that are customized as per the application requirements of the
customers. These ready to assemble components are developed in innovative
patterns, our products are developed as per the industrial specifications on
quality and design.
Indo Alusys Aluminium Products
Building & Construction
Modern architecture has been renovated and redefined ever since the
introduction of Aluminum Extrusions. These have high utility when it comes to
supporting load bearing structures, glass buildings, facades claddings, window,
roofing, scaffolding, architectural hardware, expansion joints, etc.
IAIL: Structuring building andConstruction industry
The name IAIL and the sophisticated Aluminum building systems of today have
become inseparable as the company has earned recognition worldwide for
bringing products that are attune with highest technological standards. For Indo
Alusys innovation is the guiding principle enabling diversification of aluminium
profiles and products to suit the changing requirements of architecture and
construction. Our building solutions have been crafted from the finest quality
alloy and have reflective surface finishing for light management and reducing
the energy consumption. Our vision extends one step beyond the buildings to
the lifestyle of its occupants and their convenience. The wide array of
architectural building profile offered by us has the strength to ward off UV rays
and ensure natural ventilation.
7. 7
Other stand out aspects of IAIL are:
In house die development unit equipped Ultra-modern AutoCAD technique for
die developments
Upholding our client oriented image they provide ultrasonic test when
specifically demanded by customers
Hi-tech foundry and tool room ensuring international quality range
Empowered by a highly sophisticated Anodizing and Electro Coloring
techniques imported from Italy they provide extruded products forthe building
and construction industry in following colors:
o Natural anodized (Mat/Satin)
o Very light bronze
o Medium bronze
o Dark bronze
o Black shades
Automobiles
Aluminium extruded profiles with high tolerance and light weight are
extensively used as part of automobile components. Indo Alusys manufactures a
diverse array of dimensionally accurate extruded profiles for the automobile
industry.
Aluminium is the solution both for the simplest and most complicated demands
of the industry. Being a versatile metal its capacity knows no boundary, as it is
flexible and it can be easily moulded into the most advanced designs and has
herculean strength. Prudently utilizing the aluminium advantage Indo Alusys
has emerged as a foremost enterprise, manufacturing both standard and
customized Aluminium extruded products. Innovative designs and an in-depth
understanding of the modern automobile needs have enabled IAIL to earn a
place of trust and confidence in the automobile sector. Excellence, accuracy and
consistency are the significant criterion defining the level of our commitment
since the inception of the company.
Extrusion Process
The theory that works for aluminium extrusion is based on control and
management; factors such as temperature, speed, tooling design and timing have
to be cautiously monitored and controlled. The professional team at Indo Alusys
performs each step carefully starting from heating of aluminium billet, pressing
through custom-made die, cooling and stretching thereby ensuring that profiles
are straight. In addition to this, relevant measures are taken to provide
aluminium profiles having precise functional dimensions, proper surface quality
8. 8
and high tensile strength. Aluminium Extrusions are extremely suitable for
manufacturing complicated parts of the automobiles. For instance low friction
and hard wearing surface make aluminium perfect for sunroof channels while
its use in roof rails increases the aesthetic appeal without augmenting the total
weight of the vehicle. Extruded aluminium is increasingly used in heat transfer
parts of automobile like radiators and air conditioning due to attributes like high
ductility and thermal conductivity.
Serving the AutomobileSector
The clientele of Indo Alusys includes some of the renowned manufacturers of
buses, tractors, two wheelers and heavy vehicles. The demand for aluminium
extruded components and profiles manufactured by Indo Alusys is increasing in
the transportation industry owing to light weight, tensile strength, flexibility and
surface finish that helps in augmenting the fuel efficiency of the vehicles. It is
the industrial experience of more than three decades that enables the company
to multiply the potential of extruded aluminium making it ‘The Favorite Metal
of the Automobiles’.
ValueAddition byIndo Alusys
At Indo Alusys, theyunderstand the intricacies of automobile operations and
thus theyprovide extruded aluminium components fabricated with expertise and
as per the international standards that ensure impediment free functionality for
our customers.
The alloy variants of Aluminium Extrusions produced by them are the
following
6063 (HE9WP)
6061 (HE20WP)
6351 (HE30WP)
6005
6060
E1E
E91E
NE4
NE5
2024/7075 Series
6262, 2014
Solution Heat treated Alloys
As a client centric business enterprise they have the proficiency to provide
these products in customized designs like specific cut lengths (1-8mtrs) and
succeed in completing even the bulk orders within the promised schedule.
9. 9
SolarAluminium Panels
Powered by industrial expertise theymanufacture highly efficient solar
aluminium panels with world class attributes. Theyuse newest technologies in
manufacturing solar aluminium panels that are slowly gaining acceptance and
theyare updating our aluminium extrusions methodologies to successfully meet
these demands.
The company enjoys a great strength of having all required facilities under one
roof and with a qualified team of experienced engineers and modern systems in
place theyare able to produce high quality Aluminium Solar frames.
IAIL is an ISO 9001-2008certified company.
Theyare capable of supplying sections duly cut to size & finished (anodized)
ready to use as Solar Frames. Our aluminium solar frame sections come in
various shapes and sizes, to accommodate your specific applications. Our
aluminium solar frame adopts connector or screw joint, resulting in well-fixed
structure with great durability. The malleability of aluminium allows flexibility
in the design of supports and frames for solar panels. Extruded aluminium
tubing can be attached at atypical and exact angles while requiring fewer parts
and connections. This provides the necessary accuracy in the alignment of the
solar panels for maximum energy yield.Theyhave developed Solar Frames P.V.
Cells for well repute Solar Industries.
IAIL Aluminium is closely working with PV industry producing components
for a range of products includes PV panel frame and mounting profiles.
Theysupply quality aluminium extrusions, aluminium shapes, and fabricated
aluminium parts to some of the most demanding companies in the PV industry
Aluminium extrusion is the metal of choice in solar frames because of its heat
bearing capability, non-corrosive properties, and weather-resistant advantage of
these solar panel architectures.
Theycan make customized aluminium frames for solar power modules to meet
the different specifications and requirements. Our production capability, product
precision and quality have placed us as one of the best producers in the industry.
Engineering Applications
Theyare one of the prominent names, engaged in offering a comprehensive
range of Aluminium Extrusion Products for diverse engineering and other
related applications.
Our intact range of aluminium extrusions is available in varied sizes and
dimensions, these extrusions are manufactured using premium quality
aluminium that theyprocure from only known and certified global suppliers.
There is always an upsurge and diversification in the demands of aluminium
extrusion for engineering applications and subsequently theymodify our product
10. 10
array to suit the change industrial needs. Powered by ultra-modern techniques
and extremely experienced workforce theysucceeded in manufacturing accurate
aluminium extrusions for client’s specific applications. Theyhave the capacity
to produce extrusions that appropriately complement applications such as
precision engineering, medical instruments and industrial machinery.
Further, to make perfect range, theyhave employed a team of proficient quality
inspectors who possess profound knowledge and vast experience in their
respective realm. These inspectors stringently check products on certain
parameters to ensure defect free / flawless range being delivered at the client. In
order to attain absolute client satisfaction, theyalso offer complete customized
solution and packaging facility as per the details / specifications given by the
clients.
Aluminium Extrusion,Engineering applications& the benefits
Extrusion is a process, which mainly used to create objects of a fixed, cross-
sectional sketch. At IAIL theyhave experts for drawing aluminium alloys
through accurately shaped dies to manufacture an innovative range of
engineering products and parts. Since its starting, aluminium extrusion process
has been applied in a number of ways and today’s aluminium extruded products
are highly demanded for numerous engineering applications in diverse
industries. The entire manufacturing process starts with a design and extrusion
helps in designing accurate shape and its diverse features result in weight
reduction, easy assembly, functionality addition and reduced finishing costs.
Also, aluminium extrusion is largely used in engineering industry for its varied
other benefits and usages. Some are listed below:
Less Fabrication & Machining
Require Low Maintenance
Minimum Tooling Expenditure
Light in Weight
Reduce Fuel Costs
High Structural Efficiency
More Design Scope
In addition to this, there are certain specific measures that Indo Alusys
undertake in the entire extrusion process to design and develop
Stated below are some other benefits of aluminium in amalgamation with the
extrusion process that make a cost-effective product with finest functionality
and tough exterior they ensure
Consistent wall thickness Employability
Exceptions & soft lines
11. 11
Fewer cavities in hollow sketches
Heat sinks
Electrical
Aluminium represents the second largest metal market at the global platform. It
is one of the most abundant metals in the earth’s crust but can be obtained only
in the combination of bauxite. Also, aluminium is the only metal that is lighter
than steel and its fabrication take a lot of energy- 17.4 megawatt hours of
electrical energy to merely generate 1 metric ton of aluminium, which is three
times more than steel. Aluminium is also used in various high utility products,
such as household electronics right from kitchen appliances to bathroom
accessories, air conditioners and televisions to CD/ DVD players. With their
different benefits and endless possibilities, aluminium extrusion products are
boonto electrical industry.
IAIL: A trusted nameamongthe manufacturersin electrical industry
Successfully catering to the diverse needs of electrical industry, Indo Alusys a
prominent name in the aluminium industry is engaged in offering aluminium
extrusions to its clients spread across the domestic as well as international
markets. Manufactured using finest grade raw material and other essential
resources, theyat IAIL succeed in giving desired shape and accurate designs to
its products developed specifically to meet different electrical applications. The
qualitative array offered by the company is lightweight and ready to assemble.
In addition to this, our expert team and advanced techniques also ensure, value
added functionalities, and reduced finishing costs. Moreover, to attain complete
client satisfaction, Indo Alusys has appointed a dexterous team of professionals
that keeps vigil eye on each stage right from designing to manufacturing. These
professionals also ensure that every product is designed and developed in
compliance with the set quality standards.
Aluminium:Perfectly complementingdiverseelectrical applications
Aluminium is highly popular metal that can be recycled easily, so it is an
obvious choice for many electrical applications. Aluminium tubing, wires,
cables, etc., are largely used in various electrical products such as computers,
circuit boards, and printers as aluminium does not sticks to magnets under
normal conditions. Features that make aluminium perfect for electrical
applications are mentioned below:
Light weight
Corrosionresistance
12. 12
Efficient conductor
Costeffective
Minimum maintenance
Being an ISO 9001:2008 certified company; Indo Alusys is manufacturing
supreme quality aluminium extrusions that are extensively used in electrical
industry.
Aluminum Architectural
The Aluminium Architectural Division is one of the leading Fabricators of
Architectural Aluminium doors, windows, and Curtain walls, Structural
Glazing, Aluminium Composite Panel, Scaffolding, Facades, Cladding,
Skylight and other specialized Aluminium Architectural Products.
Theyhave in house design department and theyare capable of proposing system
for the above work and also preparation of the shop drawings before start of
fabrication. Theyhave more than 40 systems related to all categories and
innovative designed in house die shop to develop dies for various profiles as per
the requirements. As a technology driven entity theyhave acquired and installed
most modern machines in our factories such as Head mitre saw, Double hand
mitre saw, milling machine, CNC engraving, Die shop CNC, hydraulic
crimping machine, drilling, assembly tables, bending machines and Milling
machines.
They currently have over 300 people working in this department and still
growing our resources to trigger the seamless functionalities in this division.
They also have stock of approximately 4,000 dies, of which about 1,500 are
exclusive dies of some of our prestigious customers.
They have in house facility for anodizing, electro colouring and powder coating
using advance technology acquired from Italy. Theyare fully equipped to
undertake anodizing and pure polyester powder coating of Aluminium profiles
as per the customer requirement.
The division is associated with most of the big and reputed builders in NCR and
they have completed several projects to the satisfaction of our clients.
The product systems conform to the international quality standards on
insulation, stability and functional performances and guarantee air-tightness,
noise reduction (up to 55 db.), structural stability, thermal insulation acoustic
insulation, safety, security and smooth operability.
The features of the architectural products are as under:
Air & Water tightness
Structural Stability
Sound Insulation
Thermal Insulation
13. 13
Aluminum Alloy Ingots
IAIL is one of the most renowned manufacturers of aluminum alloy ingots that
adoptsustainable and energy efficient methods to producealuminum alloy. Our
plant has an ultra-modern Foundry having instinctual facilities to melt and cast
durable Aluminum Alloy Billets of fine quality.
Our wide range of aluminum alloy ingots having different sizes and structures
are the source of supply to major ancillary companies of automotive sector.
Having a manufacturing facility within the auto component hub offers a great
locational advantage
The covered shed for Aluminium Alloy Ingots has proper arrangement for hand
sorting for the mechanization of Cold Refining to achieve higher productivity
and better sorting which allows removal of various low grade materials.
Technology
We have a technical department which includes hot refining, cold refining,
production planning and control, quality and process control, maintenance and
project and new developments, each being handled by highly experienced and
qualified engineers.
Since this division is producing prime raw material, its customers are
regular/recurring.
Location
We are a technology driven business enterprise that has acquired ultra modern
machines to offer aluminum alloy ingots that are durable, reliable and serve
diverse industrial purposes out manufacturing plant is strategically located in
the auto manufacturing hub of Manesar, Guragon and Bhiwadi. One of the
biggest advantages of the location is that it enables us to timely deliver to all
auto manufactures in north India.
Indo Alusys Capacity
This helps in facilitating the ever increasing demands of the automobile
industry. We are a growth oriented company that monitors technological
inventions to set up highly advanced production techniques within our ingots
manufacturing unit. Attaching significance to eco-friendly industrial practices
indo Alusys recycles scrap aluminium to produce alloy ingots. We are a major
supplier of alloy ingots top leading ancillary companies of automotive sector
14. 14
QualityAssurances
We are accredited with ISO 9001:2008 certified from DNV of the Netherlands
and other international certifications for quality. In order To ensure our alloys
conform to these standards, a hi-tech quality testing facility is built in our unit.
We have a well quipped lab that analyses raw material and finished products is
on distinct quality parameters. IAIL offers ingot in different metal consistencies
in order to cater to the specific requirements of the clients in automobile sector
AdvantageIAIL AlloyIngots
We have the repute of manufacturing and supplying a wide range of alloy ingots
that are in complete compatibility with Euro six norms. fabricated from the
finest quality alloy the offered products are valued for increasing the fuel
efficiencies of automobiles and reducing the power consumption The entire
range is highly recyclable an aspect that is in sync with environment as well as
sustainable development.
Cable
Aerial Bunched Cables
Distributing power to individual consumers by utility service providers like
Electricity Boards/ Distributing authorities have widely accepted the novel
concept of Overhead Power Distribution through Aerial Bunched Conductor
over the bare conductor overhead distribution system. When compared to the
conventional, ABC provides higher safety and reliability, lower power losses
and ultimate system economy by reducing installation, maintenance and
operative cost. This system is ideal for rural distribution and especially
attractive for installation in difficult terrains such as hilly areas, forest areas,
coastal areas etc. These cables are being designed, manufactured & tested
conforming to IS: 14255, IS: 6474 or REC & other international specifications.
ABC is also considered to be the choice for power distribution in congested
urban areas with narrow lanes and by-lanes. In developing urban complex, ABC
is the better choice because of flexibility for re-routing as demanded by changes
in urban development plan.
XLPE/PVC Insulated Power & ControlCables of "INDO CABLE" brand of
voltage grade 650/1100 Volts provided with ISI marking against IS:7098,
IS:1554 & IS:694 (for flexible) are regularly manufactured following stringent
quality checks at all stages by sophisticated testing & measuring equipments in
its modern state of-art located at Bhiwadi meeting huge demand in areas of
Power Transmission & Distribution, Control Circuits in Power plants and other
15. 15
industrial installation and signaling network of Railways with or without
FR/FRLS properties including House/Industrial wiring
LT XLPE Cables
Offering a wide gamut of L T XLPE cables of assorted Sizes & type are light in
weight and carry higher current capacity. They are capable to withstand short
circuit temperature and emergency overload. These cables consist of carbon and
hydrogen compounds, which essentially contain low-density polyethylene
molecules in the form of long flexible chains. On crosslinking, slippage
between flexible chains can be prevented. Cross-linked polyethylene (XLPE) is
a thermosetting compound. It softens at the melting point of polyethylene (85°C
to 115°C) and assumes an elastic rubber like consistency, a property that it
retains during further rise of temperature until it becomes carbonized without
melting at 250°C to 300°C. All this strengthens LTTXLPE cables against stress
cracking and gives them a greater resistance to fight ageing in hot air.
1.1 KV PVC PowerCables
The Power Cables are used underground as well as overhead transmission of
power in power plants, industries, projects, Transmission & Distribution and all
other electrical systems. Different combinations such as Aluminum, Copper
conductors, round solid conductor, stranded conductors, sector shaped
conductors, taped inner sheath, extruded inner sheath, Round steel and
aluminum wire / Flat galvanized steel strip Armored/ unarmored, single/double
outer sheathed etc. are available.
Types of insulation include PVC, HR PVC, and XLPE. The inner & outer
sheaths can be PVC, HR PVC, FRLS, HR-FRLS or FR depending upon the
application and requirement of customers.
INDO CABLE manufactures different types of cables with combinations of
specifications as mentioned above as per IS 1554 Part I for cables up to 11000.
1.1 KV PVC CopperPower & Control Cables
These cables are also used for underground as well as overhead transmission of
power to the control panels in Power plants, Industries, Project and all the
electrical systems.
Different variations such as round solid conductor/stranded conductors, taped
inner sheath/extruded inner sheath, Round steel/aluminum wire/Flat galvanized
steel strip Armored/ unarmored, single/double outer sheathed etc. are available.
Types of insulation include PVC, HR PVC. The sheath can be PVC, HR PVC,
FRLS, FR or HR-FRLS depending upon the application. INDO CABLE
manufactures all above combinations as of 1.1 KV Qrade Control cables as per
IS 1554 Part I from two cores to 61 cores in 1.5 and 2.5 sq. mm sizes.
Conductors
16. 16
IAIL is emerging as pioneer provider of power transmission conductor - the
Brand INDO Cable started manufacturing and marketing Bare Aluminum
Conductors forOverhead Power Transmission & Distribution Lines
Professionalism of the highest caliber, inspired vision and drive for product
innovation contributed to the success of the business in a competitive market
both in the domestic front and exports.
Within easy reach of the northern- Region has the manufacturing plants, located
in the States of Rajasthan with present installed capacity for AAC AAAC
ACSR, ACAR, ACSR, AACSR and COPPER Conductor & vast range of PVC/
XLPE, Railway Signaling ,Quad cable, Instrumentation cable &ABC Cables.
In short span of time, the company has been consistently focusing to
manufacture multi- stranded conductors of various sizes of AAC AAAC ACSR,
ACAR, ACSR, AACSR and COPPER Conductor covering the entire range of
high voltage transmission and distribution lines from 0.4 KV to 400 KV
Apart in domestic market the INDO ALUSYS will created a reputation for its
AAC AAAC ACSR, ACAR, ACSR, AACSR and COPPER Conductor in
overseas market too and will share in line with bulk exports of AAC AAAC
ACSR, ACAR, ACSR, MCSR and COPPER Conductor by executing export
orders for conductors.
As we continue to accord our self-focusing on developing new energy saver
product to meet the upcoming demands of market
Production of Conductors
Indo Alusys is producing following types of AluminiumConductors i.e.
All Aluminium Conductors (AAC)
Aluminium ConductorSteel Reinforced (ACSR)
All Aluminium Alloy Conductor(AAAC)
AAC: This conductor is manufactured from electrolytically refined
(E.C.GRADE) aluminium, having purity of minimum 99.5% of aluminium.
This conductor is used mainly in urban areas and the
supports are close. All aluminium conductors are made up of
one or more strands of aluminium wire depending on the end
usage. These conductors are also used extensively in costal
because it has a very high degree of corrosion resistance.
ACSR: Vide range of aluminium conductors steel reinforced (ACSR) consists
of stranded steel core surrounded by E.C. grade aluminium. Available in a wide
range of steel varying from 6% to 40 % of
steel reinforced aluminium conductors are used for in overhead
ground wires, installations involving extra-long spans, etc.
17. 17
This conductor consists of a solid or stranded steel core surrounded by strands
of aluminium (E.C. GRADE).
ACSR conductor is available in a wide range of steel varying from as low as 6%
to as high as 40 %. The higher strength ACSR conductors are used for river
crossings, overhead ground wires, installations involving extra-long spans etc.
against any given resistance of conductor, ACSR conductor may be
manufactured for having a wide range of tensile strength as per requirement.
The principal advantages of these conductors are high tensile strength and light
weight with longer spans as well as with lesser supports. Due to the greater
diameter of ACSR conductors a much higher corona limit can be obtained
causing big advantages on high as well as extra high voltage overhead lines.
AAAC: This conductor is made from aluminium- magnesium-
silicon alloy of high electrical conductivity containing enough
magnesium silicide to give it better mechanical properties after
treatment. These conductors are generally made out of
aluminium alloy 6201.
AAAC CONDUCTOR has a better corrosion resistance and better strength to
weight ratio and improved electrical conductivity than ACSR CONDUCTOR
on equal diameter basis.
18. 18
Production Capacity of ALUMINIUM and its Location (2011):
TABLE – IV
No. Key Products Location Capacity(TPA)
1 Alumina
Renukoot , UP
Belgaum
,Karnataka
Muri , Jharkhand
700000
350000
180000
1230000
2 Aluminium
Renukoot , UP
Hirakud , Orissa
375000
143000
518000
3 Extrusions
Renukoot ( UP )
Alupuram (
Kerala )
33000
13000
46,000
19. 19
4
Flat rolld
Products
Renukoot , UP
Belur ,W B
Taloja ,
Maharashtra
Mouda
,Maharashtra
100000
57000
50000
30000
237000
5 Red raw rods Renukoot ,UP 75000
6 Foil and Packaging
Kalwa ,
Maharashtra
Silvassa , Dadra
Kollur , AP
6000
30000
4000
40000
7
INDAL
Wheels
Silvassa , Dadra 300000 Pcs
8 Foil rolling Kollur ,AP 4000
20. 20
1.2 Overview of the Industry
Aluminium Industry in India :
Aluminium Industry in India is one of the leading industries. It is an
oligopolistic industry. It is developing fast and the advancement in its
technologies is boosting the growth faster. The utilization of both international
and domestic resources was significant in the rapid development of the
Aluminium Industry. The Indian Aluminium Industry has a bright future as it
can become one of the largest players in the global aluminium market as in
india the consumption is fairly low; therefore the industry may use the surplus
production to cater the international need for aluminium which is used all over
the world for several applications such as aircraft manufacturing, automoble
manufacturing, utensils etc.
Usage Pattern In India:
Aluminium is used in various sectors, such as transportation, packaging,
building/ construction and electrical industry. However the usage pattern differs
significantly for India and rest of the world. Globally, the automotive,
packaging and the construction sectors are the major end users of aluminium,
while in India the power sector consumes about 44 percent. Since aluminium is
naturally resistant to corrosion aluminium building materials are suitable for
excessive environments, such as swimming pool cover ( subject to chlorine
attack ), or exposed structures within 50 meters of ocean ( such as port area ).
Aluminium Consumption In India –
Electrical 3249
Automotive 1886
Building & Construction 1362
Packaging 1153
Others 2830
21. 21
Figure in 00, mts.
Fig. in ,00 Mts
Source: Aluminium Commodity Report, Infoline, 2014
The per capita consumption of aluminium in India continues to remain
abysmally low at under 1 kg as against nearly 25 to 30 kgs in the US and
Europe, 15 kgs in Japan, 10 kgs in Taiwan and 3 kgs in China. The key
consumer industries in India are power, transportation, consumer durables,
packaging and construction. Of this, power is the biggest consumer (about 44%
of total) followed by infrastructure (17%) and transportation (about 10% to
12%). However, internationally, the pattern of consumption is in favour of
transportation, primarily due to large-scale aluminium consumption by the
aviation space.
Demand for aluminium is estimated to grow at 6%-8% per annum in view of the
low per capita consumption in India. Also, demand for the metal is expected to
pick up as the scenario improves for user industries, like power, infrastructure
and transportation
India is world's fifth largest aluminium producer with an aluminium production
competence of around 2.7 million tones, accounting almost 5% of the total
aluminium production in the world. India is also a huge reservoir of Bauxite
with a Bauxite reserve of 3 billion tones.
Electrical
31%
Automotive
18%
BuildingAnd
Construction
13%
Packaging
11%
Others
27%
22. 22
India lies at the eighth position in the list of leading primary aluminium
producers in the world. India saw a significant growth in aluminium production
in the past five years. In 2016, the production target of aluminium in India laid
by the Ministry of Mines, Government of India was 1,153 KT, which was
augmented to 1,237 KT in the year (2017-18). Due to the growing demand from
the construction, electrical, automobiles and packaging industry, the production
of aluminium also hiked up. In FY 09, the total aluminium production in India
was around 1.35 tonnes.
After a stagnant consumption of primary aluminium in India from the end of
1990s to 2002 (when the consumptions were between 500 – 600 KT), it started
rising sharply since 2002. The consumption reached at 1,080 KT in 2006. The
consumption of aluminium in India is dominated by the industries like power,
infrastructure, and transportation etc.
The consumption pattern of aluminum in India is different from the global
consumption pattern. The demand for the aluminum industry has been
predominantly from the electrical sector. This sector is the largest end user of
aluminum in India accounting for 36 % of the total aluminum demand. The
transport sector contributes to another 22 % of the total demand while the
consumer durable and packaging sectors consume 12 % each. The construction
sector consumes 7% of the total aluminum demand. Total domestic
consumption was about 0.55mn ton in FY98.
Per capita aluminum consumption in different countries
The consumption pattern of aluminum in India is different from the global
consumption pattern. The demand for the aluminum industry has been
predominantly from the electrical sector. This sector is the largest end user of
aluminum in India accounting for 36 % of the total aluminum demand. The
transport sector contributes to another 22 % of the total demand while the
consumer durable and packaging sectors consume 12 % each. The construction
sector consumes 7% of the total aluminum demand. Total domestic
23. 23
consumption was about 0.55mn ton in FY98.
Per capita aluminum consumption in different countries
Countries Consumption
India 0.5
Japan 30.9
USA 26.9
Germany 30.1
Sweden 25.3
Switzerland 32.5
Italy 20.9
UK 11.1
France 17.7
Australia 17.9
Venezuela 8.2
Thailand 0.9
Malaysia 2.4
24. 24
1.3 Major players in Indian Aluminium Industry:
The aluminium industry in Northern INDIA is concentrated between 4 players
:-
1. Indo Alusys Industries Ltd.
2. Bharat Aluminium Company ltd. (Balco) [Vedanta group]
3. National Aluminium Company ltd. (Nalco)
4. INDO ALUSYS Industries Ltd.
CONSUMPTION OF NATIONS
India
Japan
USA
Germany
Sweden
Switzerland
Italy
UK
France Australia
Venezuela
Thailand
Malaysia
0
5
10
15
20
25
30
35
1
India Japan USA Germany Sweden Switzerland Italy UK France Australia Venezuela Thailand Malaysia
25. 25
Extruders in India:
1- INDO ALUSYS, ( AV Birla Group company)
INDO ALUSYS, an AV Birla Group company, is India’s largest aluminium
producerand has the distinction of being one of the lowest costproducers of the
metal in the world. It is an integrated player having captive bauxite mines,
power units and high value-added output comprising semi-fabricated aluminium
products. Thecompany also has copperas its business segment, which it
acquired recently from another group company, Indo Gulf.
2- Bharat Aluminium Company ltd. (Balco)[Vedanta group]
Bharat Aluminium Co. Ltd. (BALCO) was incorporated in the year 1965 as a
Public Sector Undertaking (PSU). BALCO has several “firsts” to its credit. It is
the first public sectorenterprise in the country, which started producing
aluminium in 1974. In 1987-88, a captive power plant of 270 MW was added to
cater to the power requirement of the unit. BALCO has been the first in the
Indian Aluminium Industry to producethe Alloy Rods, which is a Feedstock for
ALUMINIUM SALES IN 2014 IN KILOTONNES
HINDALCO,
147.6, 49%
BALCO, 65.8,
22%
Indo Alusys,
14.4, 5%
IMPORTS, 46.1,
16%
SECONDARIES,
23.1, 8%
HINDALCO BALCO Indo AlussysIMPORTS SECONDARIES
26. 26
all Aluminium Alloy Conductors, very much needed for today’s power
transmission lines. Till 2001, BALCO was a public sectorenterprise owned
100% by Government of India (GoI). In the year 2001, GoI divested 51% equity
and management controlin favour of Sterlite Industries (I) Limited. The
development of special aluminium alloys for “Intermediate Range Ballistic
Missile” – Agni and “Surface Missile” – Prithvi have been significant
achievements of BALCO contributing to the nation’s defence capabilities.
BALCO is part of the fast moving Vedanta Resources, a London listed metals
and mining major with Aluminium, Copperand Zinc operations in UK, India
and Australia, and is on the threshold of a new growth phase.
3- NationalAluminium Company ltd. (Nalco)
Nalco, is the largest producerof alumina and second largest producerof
aluminium in the country. The company is self sufficient in the entire value
chain encompassing mining of bauxite, refining of bauxite into alumina and
smelting of alumina into aluminium. Nalco produces calcined alumina at its
refinery and aluminium ingots, billets, strips, rolled products and wire rods at its
smelter. While the surplus calcined alumina is almost entirely exported, wire
rods, billets, strips and rolled products are sold in the domestic market. Ingots
are sold in both the domestic as well as the international markets.
4- Indo Alusys Industry Ltd.
They have established themselves as a leading manufacturer of Aluminium
Extruded Products / Profiles in India. Besides being a pacesetter for the
industry, they have acquired an able track record of rendering satisfactory
services to our valuable customers in India and globally.IAIL plant is located 70
kms from the capital of India, New Delhi in the highly developed Industrial
Area of Bhiwadi in the Alwar district of Rajasthan and its Marketing office is at
Tolstoy Marg ,Connaught Place, New Delhi-10001.
IAIL has Hydraulic Extrusion Presses of 2100 US tonnes, 1650 US tonnes,
1250 US tonnes and 1100 US tonnes capacity. The operations are controlled by
Micro-processorbased technology and programmable logic control (PLC)
system for the above extrusion presses. Furnaces are equipped with fuel
efficient regulative burners. Our installed capacity has now reached to 22,000
MTPA to meet the ever increasing demands of the market.
27. 27
The major advantages ofusing Aluminium are its remarkable properties:
i. Strength to weight ratio –
Aluminium has a density around one-third that of steel. This property is
beneficial where high strength and low weight is required.
ii. Corrosionresistance of Aluminium- When the surface of aluminium
metal is exposed to air, a protective oxide coating forms almost instantaneously.
This oxide layer is corrosionresistant and can be further enhanced with surface
treatments such as anodising.
iii. Light & Heat reflectivity of Aluminium –
Aluminium is a good reflector of both visible light and heat making it an ideal
materials for roof-sheet.
iv. Recyclability of Aluminium –
When recycled, there is no degradation of properties vis-a-vis virgin materials.
Further recycling only require 5% of the input energy required to producevirgin
aluminium.
28. 28
1.4 ALUMINIUM EXTRUSION INDUSTRY
The total capacity for aluminium extrusions in India is about 400,000 tonnes.
The industry is highly fragmented with over 60 manufacturers of aluminium
extrusions Capacity .
The Indian Aluminium Extrusions Industry.The demand for aluminium
extrusions in India was about 300,000 tonnes in 2014 Demand in India is
still growing strong inspite of economic fluctuation The building &
construction industry is the major consumer of aluminium extrusions in India
Future growth will come largely from the solar industry and the industrial
sectorUsage in the automotive industry is still in a nascent stage.
Market size: 300,000 tonnes (2015)
Industrial 28% Transportation Building 12% & Construction 60%
1-70% of the Aluminium industry uses extrusion processing.
2- 30% of Aluminium industry uses casting,forging and sheet and plates
2-There is no single market leader.
3-Fakes and trademark violations are rampant.
4-Second hand market is very big.
28%
12%
60%
Market size: 300,000 tonnes (2015)
Industrial Transportion & Building Construction
29. 29
5-Very low productdifferentiation between the competing brands.
6-Industrial areas constitutes major part of the sales.
The total capacity for aluminium extrusions in India is about 400,000 tonnes
Capacity No. of players
> 25,000 tonnes 2
Between 10,000 & 25,000 tonnes 5
Between 5,000 & 10,000 tonnes 12
< 5,000 tonnes 43
Total 62
THE PRODUCT:
The Extrusion industry can be broadly classified on the bases of the products
offered. The major products are:
Building & Construction
Automobiles
Solar Aluminium Panels
Engineering Applications
Electrical
Aluminum Architectural
Aluminum Alloy Ingots
Cable
others
30. 30
The industry undergoes major seasonal and cyclical changes. A year of growth
is generally followed by year of slump. However the productis generic to every
home the fundamentals of the industry are strong. Essentially being a low
technology industry, unorganized sectoroccupies the same position as the
organized sector in terms of sales.
There is also a major effort to corner the industrial, which on an average
contributes about 60-70%.
31. 31
1.5 ALUMINIUM CONSUMPTIONIN EXTRUSION
India is considered to be the fifth largest producerof aluminium in the world
with a tremendous bauxite reserve of about 3 billion tonnes. While the major
consumption of aluminium in India is done by the electrical (31%) and B&C
sectors (13%), the future growth is envisaged to happen in the solar power and
industrial sector. One is witnessing the rapid development of this industry with
a phenomenal growth noticed since 2002 and the industry is posed to play a
significant role in the future growth of the Indian economy.
The aluminium extrusion process involves creating parts of homogeneous cross-
sections which is achieved by forcing the metal through an outlet (that is
designed in the required configuration/shape of the extruded profile) under high
pressure. In an era when architects are increasingly coming forward with
experimentations, aluminium extrusions are giving way to some imaginative
and exquisite architectural designs which have been made simpler by the
plethora of technological innovations and advancement in the aluminium
extrusion industry.
37%
18%
33%
12%
Consumption in Products
Electricals
Automotives
Construction27%
Others
B&C
32. 32
MARKET SIZE AND SEGMENTATION
1,237 KT – Capacity extrusion
Product
Group
ProductMarket
i- Total Market Size is 1237KT which is segmented into
Organized(industrial) and Unorganized sector(retail/others).
ii- Organized Sector contributes 66.66% share against 34% share of
unorganized sector.
Building
Auto
Archtectural Solar
Electricals
Engeering
Extrusion(1237KT)
Industrial Sector(800kt)
Retail/Unorganised
Sector(400kt)
Section Profiles
33. 33
iii- Industry is growing at the rate of 10% P.A
iv- Electricals contribute to major consumption among organized sector.
v- Sub segment Architectal, Geometric,Solar ,engineering they
contribute to 13% of organized sector.
35. 35
1.6 INDO ALUSYS IN DELHI/NCR
i- Total Market Size is 9000 MT which is segmented into Organised and
Unorganised sector.
ii- Organised Sector contributes 30% share against 70% share of
Unorganised sector.
iii- Industry is growing at the rate of 9% P.A
INDO ALUSYS MARKET SHARE IN DELHI/NCR
(NORTHERN INDIA)
Indo Alusys,42%
Hindalco,30%
Nalco,20%
Jindal /others,8%
Other, 28%
37. 37
1.7 SALE IN UNORGANIZED SECTOR
The unorganized sector is being a point of concern for Indo Alusys. Though the
current sales figure is not alarmingly low but it is showing a downward trend in
the increasingly competitive market.
On X axis we see the year(2013,2014,2015) and on Y we see the sales volume
of Indo Alusys in the unorganized sector. There is a 67 % growth towards
supply of 0.91 mm -1.10mm thickness Geometrical structures to unorganized
industries through Trade.
38. 38
2. JOB ASSIGNED/ TITLE
Project title- INCREASE SALES IN THE COMPARITIVELY LARGER
ORGANIZED AND UNORGANISED SECTOR THROUGH MARKETING
EFFORT OF EXPANSION & RETENSION.
The job assigned to me deals with the complete and detailed study of the
unorganized and organized sector.
Key points being-
I. Understand kind of Marketing Required
II. Fetching Contact Details of Industries & Retailers/Traders via Industrial
Directory.
III. Physically examining the unorganized and organized sector clustered
markets in Delhi/NCR.
IV. Interviewing the people involved.
V. Studying the buying behavior of the players in the unorganized and
organized sector-
a) where they purchase the required product from
b) why is the tendency to acquire comparatively lower quality
c) the vendors they acquire it from if not Indo Alusys
d) the reason behind choosing other vendors or Industry
e) their rationale behind acquiring material from a vendor or Industry and
where Indo Alusys has to better itself for higher sales in these sector.
I. Analyzing a feasible way for Indo Alusys to increase its market share.
39. 39
2.1 KEY RESPONSIBILITIES
In the process ofthe 2 months training, I had quite a few responsibilities that
can be enumerated as under-
i) Studying the aluminium market with a keen eye on the extrusion
Industries and vendors business in perspective.
As a start I had to begin with an intensive study of the material,
products and business of Indo Alusys from material provided by the
company. I had to study the
a) business trends,
b) current customers,
c) volume of material sold to them,
d) changes in demand,
e) reasons behind the aforesaid changes
f) process of Extrusion
g) End Productdetails and their use
ii) Physically visiting the customers of Indo Alusys.
a) Purchase Managers of Baxaur, Hella, Minda and many more
Khaitan fans and Usha fans were interviewed.
b) I had to visit each Industrial Area of Delhi/NCR, to understand the
different kind of products, their requirement and sales order.
iii) Once I had the required knowledge of the industry, I started off with
the unorganized sector and later Organized.
iv) I had to start with the preparation of the questionnaire for the
interviews.
40. 40
v) Visiting and interviewing the unorganized and organized sector
formed the next part in the sequence.
vi) Analyzing the collected data and trying to find out the reasons of
the buying behavior of the unorganized sector and their problems
with Indo Alusys for retaining the existing customer and creating
new(Expansion)
vii) Trying to find a feasible solution to the problem.
41. 41
2.2 STAGES OF THE PROJECT
The project can be categorized into the following stages-
1. Understanding of Indo Alusys and their products
2. Fetching Contact details from directory online/offline
3. Preparation of the questionnaire.
4. Visiting and giving presentation to the unorganized and organized
markets mainly located in and around DELHI/NCR-
a) IMT Manesar
b) Mayapuri Industrial Area
c) Kirti Nagar Furniture Market
d) Gurgaon,Noida, Faridabad.
e) Mangol Puri
f) C.P Central Delhi
g) Others
1- Interviewing the Manufacturer, stockists, distributors and customers.
2- Filling up of the questionnaire.
3- Finding out the price at which different manufacturers are selling.
4- Trying to find out the reason behind relative difference in price.
5- Analyzing the filled up questionnaire and finding the reason behind the
existing problem.
6- Mainting Record on excel sheet of Sale order, requirement and
discussion.
42. 42
2.3 BRIEF DESCRIPTION OF THE PROBLEM
With the vision to pro-actively shape the business of distribution and
processing of industrial materials in India, Indo alusysIndustries Limited
aims to become the dominant industrial material management service
provider and will create customer value by processing and distributing
industrial products like various aluminum made end product. The focus
will be on aluminium Extrusion products. The imminent need being,
increasing the sale in the unorganized and organized sector.
With this in mind, Indo Alusys wants to study the unorganized and
organized market in Delhi/NCR, identifying the potential customers and
finding out their needs and if Indo Alusys can provide value to these
small scale players or the big ones in the Extrusion industry.
A survey was conducted in order to find out the relative position of Indo
Alusys with respect to its competitors, market, productand how it can
increase its market share.
The project also aims to find out why Indo Alusys’s competitors are in a
relatively better position in the unorganized sectorand how Indo Alusys
can improve, expansion or retention.
43. 43
3. OBJECTIVE OF STUDY
Purpose –
Primary objective-
To carry out market Research, territory mapping and problems escalation
of the existing/new customers with the industry to find out the relative
position of Indo Alusys with respect to its competitors , market and
product
Secondaryobjective-
1. To find out the relative market share of each aluminium materials.
2. To find out the preference for a brand of the customers
3. Reasons for preference.
4. To assess the nature of competition.
5. To find what gives the customers the more value and hence find
out how Indo Alusys can improve in those areas for higher sales.
Scope-
From the study we can infer that there is huge potential in the
unorganized sector market and tapping the market would lead to higher
sales by a huge margin and consequently higher profits.
44. 44
1.1 METHODOLOGY
The survey was conducted in Delhi/NCR. Data was taken from 65 respondents
–
a) Organized sector representatives- 36
b) Stockists - 07
c) Unorganized sector Trader/Retailers- 21
Brainstorming sessions were held so that innovative ideas could be generated
and confusion if any could be clarified. While discussing, many factors arose
which were not possible if no discussions were held.
Tools for collecting information:
Detailed and descriptive questionnaire was designed to collect the required
information Overall, it was an exhaustive questionnaire created to cover the
extensive information of the region. (For details see appendix)
Following considerations have been taken into accountfor the designing,
preparation, refinement, administration and analysis of the research
questionnaire-
• Collection of primary data..
• Carefully developed, tested and debugged before being administered to
the target.
• Care has been taken in framing and sequencing the sentences.
METHOD OF DATA COLLECTION:
The data used in the project is Primary Data collected through-
a) Questionnaire
b) Interviews- structured and unstructured (according to convenience).
45. 45
4.2 THE QUESTIONNAIRE
The questionnaire that has been used in the survey is as given below. It has been
prepared under the guidance of my industry mentor. Some of the questions have
been altered depending upon the person being asked to fill it (eg. Stockists,
manufacturers etc.)
I. Which are the major vendors you acquire your raw material from
o INDO ALUSYS
o Nalco
o Indo Alusys
o Others
0
5
10
15
20
25
30
35
Hindalco Nalco Indo Alusys Others
No. of Customers
46. 46
II. What percentage of your raw material requirement do you acquire
from Indo Alusys
o 0-30
o 30-60
o 60-90
o 90 and above
o Are you satisfied with the quality of INDO ALUSYS.
o Yes
o No
0
2
4
6
8
10
12
14
16
18
20
0-30 30-60 60-90 90 and above
Series 1
47. 47
III. Does the quality of Indo Alusys justify the price
o Yes
o No
0
5
10
15
20
25
30
35
yes no
13.5
14
14.5
15
15.5
16
16.5
17
17.5
18
18.5
yes no
48. 48
IV. If you do, why do you prefer other companies over Indo Alusys
o Better quality
o Cheaper rate
o Timely supply
o Others
0
5
10
15
20
25
30
BETTER QUALITY CHEAPER RATE TIMELY SUPPLY OTHERS
49. 49
V. Rank in order of preference quality wise
o INDO ALUSYS
o Nalco
o Indo Alusys
o Others
VI. Rank in order of preference price wise
o INDO ALUSYS
o Nalco
o Indo Alusys
o Others
0
5
10
15
20
25
30
Indo Alusys nalco balco others
0
5
10
15
20
25
hindalco nalco Indo Alusys others
Series 1
50. 50
VII. Where do you think Indo Alusys has to improve to capture a larger
market share
o Quality
o Costeffectiveness
o Others
VIII. What is the quantity of your raw material requirement per month
IX. What percentage of your productionis dedicated towards extruded
products.
X. What is the size of aluminium profile, section and panel etc. you
acquire
XI. What is the alloy that you acquire
XII. What is the quantity you acquire
0
5
10
15
20
25
30
quality cost
effectiveness
others
Series 1
51. 51
XIII. What percent of your raw material usage is aluminium
o 0-30
o 30-60
o 60-90
o 90 and above
XIV. What percent of your raw material costis aluminum
o 0-30
o 30-60
o 60-90
o 90 and above
0
5
10
15
20
25
0-30 30-60 60-90 90 and above
Series 1
0
5
10
15
20
0-30 30-60 60-90 90 and above
Series 1
52. 52
SALES QUESTIONNAIRE:
Name of the organisation:_______________________________________________________
Location:_____________________________________________________________________
Contact Details:________________________________________________________________
Type of Industry:_______________________________________________________________
PersonContacted:____________________________________________________________
End Application:_______________________ End Product__________________________
RequiredFinish:-
Poweredcoating: Anodizing:
Fabrication:_____________________________________________________________________
Approximate Requirement:__________________________________________________________
Current Sources:__________________________________________________________________
Require aVisitforfromsalesDepartment(Y/N)___________________________________________
Analytical tools:
The data, after being collected and tabulated for analysis, the tools that have
been used on them are as follows:
Bar Chart
Pie Chart
53. 53
4.3 PROJECT CONSTRAINTS
Many times it was difficult to get an appointment with the concerned
person.
The concerned person used to be very busy to give answers to all the
queries.
Many people were not ready to give the required information becauseof
the company policies.
Many a times the data given to us is an approximate data due to which
error in the analysis may occur.
Time was inadequate.
54. 54
5 COLLECTION AND ANALYSIS OF
INFORMATION
5.1 CHAPTER SUMMARY
Survey leads were generated thorough calls and existing data. A lot of data was
collected from the internet, which includes the database of the survey also.
Structured questionnaires were the way of generating primary data. Information
was gathered from the collected data.
The data collected then was analyzed by filtering information and then certain
charts and tables were generated from this information so that at a glance the
desired objective can be fulfilled. The analysis and data was collected for the
roofing sheet materials.
5.2 DATA ANALYSIS
Points to be noted-
a) The option ‘others’ in question I,V,VI and VII refers to the cheaply
available extrusion material and options available in the market
manufactured in North India.
b) Questions numbered XI, XII and XIII have not been tested with
statistical tools because of the nature of the data and it does not help in
the project at hand but the information was helpful to the company
and hence was collected.
55. 55
5.3 OBSERVATIONS
a) The reply to question I, shows that Indo Alusys is not the leader in this
sector. The most common vendors are the Traders clustered in North
India. Even then, Nalco is doing better than Indo Alusys.
b) The reply to question II shows that the most Indo alusys supplies in
this sector, falls in the 0-30% of requirements. Opportunity in this
sectoris huge for Indo Alusys and that is what the data proves.
c) Indo Alusys prides itself in its superior quality and the customers
acknowledge that. Throughout the tenure of this survey, not a single
respondent was found who had complaints with the quality of material
supplied by Indo Alusys.
d) The reply to this question shows that the customers overall feel that
INDO ALUSYS is priced at more than its worth. It is the cost
disadvantage that is leading to Indo Alusys relatively down sliding
performance in the market, especially in the unorganized sector.
e) The reply to the fifth question reiterates the fact that the high price of
Indo Alusys Extrusion Material is hindering its growth in the
unorganized sectorsince most of the customers feel that the high price
is the reason they would prefer other brands.
f) Reply to question VI proves Indo Alusys dominance when it comes to
quality of the material. It is the unified opinion of the whole of the
industry that Indo Alusys supplies the best quality material followed
by INDO ALUSYS and that the locally available sheets are the worst
in terms of quality.
g) The seventh questions reply shows that the local sheets are performing
the best in this sectorbecause of their low cost.
h) Cost effectiveness is where Indo Alusys has to improve and this fact is
coming across again through the reply to question VIII.
SALES Questionnaire
This Questionnaire is only for the use of office to determine if any requirement
is there for any Industry. So that they can further proceed with order to meet the
sales target.
56. 56
5.4 MARKET ANALYSIS
AIM: Measurement of success notin absolute sales performance but in their
sales performance relative to competitors, market and end product.
1- To find the estimated demand of Indo Alusys Exrutsion Products and vis-
à-vis. its competitors and market share
2- To find the main causes of a buyers preference of a particular brand.
3- Main decider in the buying process.
Based on information gathered from 65 respondents (manufacturers and
stockists,traderor retailers) we get the following information-
1- Sheets are more popular in the unorganized sector and rarely do any
manufacturer of organized sectoruses sheets.
Reason behind this being sheet is cheaper than Extruded products by
their use and price approximately Rs. 10-12 /kg.
The current price of Indo Alusys Products are:
PRODUCTS PRICE
Geometic Profiles Depends on dimensions
Heat Sink 40/piece
Lighting Segments 40-45/piece
Automobiles 45-45/piece
Architectural 30-35/piece
SolarPanels 38-45/piece
Furniture 45-50/piece
Bus Bar 30-50/piece
Ahu/Ac 40-60/piece
Motorbody 45-60/piece
Exhibition Industry 40-45/piece
Sheet- Rs. 170/kg from which one piece of standard dimension can be made.
The current price of INDO ALUSYS C.G. sheet- Rs. 159/kg
(VAT and Excise duty additional)
57. 57
Aluminium sheet, aluminium plate, Flooring Sheets/ Tread Plates:-Pattern
Sheets aluminium flat, aluminium perforated sheet May range from 150-
180/kg
2- The unorganized sectordo not go for brands generally eg. INDO
ALUSYS, Nalco, Balco, Indo Alusys etc. From information received by
the stockists-
a) Branded aluminium sheets are rarely demanded by the local/organized
manufacturers.
b) If demanded, Indo Alusys do not preferred in manufacturing of sheets
because of comparatively higher price of presses and less use.
c) Locally manufactured sheets are the most in demand. The difference
in rate being considerable.
The difference between branded sheet and local sheet is between
Rs. 25-35 /kg.
58. 58
6 FINDINGS
From the survey conducted , respondents comprising stockists and
manufacturers, Industries the following were found out-
1- By analyzing the preference for buying aluminium Extruded products, it
was found that locally manufactured sheets and products are the most in
demand followed by Indo ALusys product.
INFERENCE- Greater availability and low costof local products and
thereafter sheets help them garner majority of the customers.
2- By talking at length with the manufacturers, it was observed that Indo
Alusys Products are out of the budget of the small scale manufacturers
though they agree that it is the best in terms of quality.
INFERENCE- Even if brands are considered, Indo Alusys is not finding
favour because of its comparatively high price and minimum order.
3- The unorganized market is generally clustered in the same geographical
are eg Sohna Road & Naraina area where all the companies do business
alongside each other. Competition is intense and there is not much to
choosebetween one brand and the other. The company delivering the
cheapest products makes the highest sale.
INFERENCE- Even if a single player wants to go for Indo Alusys, the
fear of losing business to its competitors becauseof the increased price of
the resultant productstops it from doing so.
4- By analyzing the customer survey it is found that local traders at Gurgaon
enjoy the maximum market share only becauseof its cheap rate though
the customers are unified in their opinion of its comparatively bad quality
and uneven size and thickness.
INFERENCE- Cheap and ready availability is the only reason of the
popularity of the local products.
59. 59
5- The unorganized sectorplayers were largely of the opinion that a
difference of Rs. 16-18/ kg can be considered but the current difference
of around Rs 25-30/kg is way beyond they can afford in acquiring blade
sheets.
INFERENCE- It is a buyers market where these businesses are trying to
make profit by the cheapest acquirement of raw material since all these
companies sell the final productat almost identical price. Increasing price
would lead them to lose competitive advantage.
6- The small scale manufacturers complain of availability of Indo Alusys
sheets as they don’tmake it. Occasions, in which they have tried to
acquire materials from Indo Alusys, they have not got their supplies on
time. According to them the reason behind this being that their demand is
comparatively far lesser in quantity than a branded company.
INFERENCE- Supply is short in the unorganized sectorleading to more
sales by the local traders. The later being readily available.
7- Comparatively bigger businesses in the organized sector, eg. Saha Metal
Industries, Five Star Engineering Works, Valeca, Re electric and mega
metal etc. go for Indo Alusys becauseof the brand name of Indo Alusys
and they look to expand their business.
INFERENCE- Apart from these manufacturers, the businesses satisfied
with the existing size of it, are not willing to spend that much.
8- The small scale manufacturers going for Indo Alusys incur almost an
additional cost of Rs. 40 in the final productbecause of taxes
INFERENCE- Even when the small scale manufacturers are going for
Indo Alusys, they opine-Indo Alusys, keeping in mind their supremacy in
quality, should look to supply at rates of Nalco and Balco. The most they
can willingly consider is a difference of Rs. 2/kg.
9- Of all the stockists and manufacturers in organized sector interviewed,
60. 60
100% go for Indo Alusys because of their quality of product.
40% are of the opinion that they do business with INDO
ALUSYS/Jindal/NALCO/BALCO because of the relationship they share
with the company and high requirements.
INFERENCE- Customer satisfaction and business relations of Indo
Alusys is top notch and when compared with its competitors, INDO
ALUSYS and Indo Aluysys enjoys the most popularity.
MARKET CAPTURED BY INDO ALUSYS
IMT Manesar
Out of 15 CompaniesthatdealsinAluminium
53% DealsIn extrusions
47% Dealsinsheetor use aluminimuminotherforms
27% Industriesoutof 53% companiesdealswithIndoAlusys
Naraina Industrial Area.
According,tomy Researchat NarainaIndustrial area, mostof the companiesdealswithSteel OrIron.There are fewc
Extrusion
42%
AluminiumIn
other forms
37%
Indo Alusys
21%
IMT Manesar
61. 61
steel.
Total Co.Visited 10
AluminiumExtrusion 4 40%
In otherforms 6 60%
DealswithIndoAlusys 1 10%
MayapuriIndustrial Area.
CompaniesVisitedinMayaPuri Industrial Area 15
AluminiumExtrusion 12 80%
In otherforms 3 20%
DealswithIndoAlusys 4 27%
Extrusions
36%
In other Forms
55%
Indo Alusys
9%
Naraina Phase II
Extrusion
63%
In other
Form
16%
Indo Alusys
21%
Mayapuri Industrial Area
63. 63
Solar (Gurgaon)
SolarIndustryvisted 15
AluminiumExtrusion 13 87%
In otherforms 2 13%
Requirementof aluminium 2 13%
INFERENCE:
Most attractive Market for Indo Alusys is IMT/Manesar followed by
Gurgaon.
The Least attractive market is Nariana.
Solar should be the next move forward for Indo Alusys as lesser number
of Solar Industries are approached.
Extrusion
76%
requirement
12%
In other Form
12%
Solar Industries
64. 64
7 SWOT ANALYSIS
SWOT = Strengths, Weaknesses, Opportunities, Threats
Strengths: characteristics of the business or team that give it an advantage over
others in the industry.
Weaknesses: characteristics that place the firm at a disadvantage relative to
others.
Opportunities: external chances to make greater sales or profits in the
environment.
Threats: external elements in the environment that could cause trouble for the
business.
65. 65
SWOT ANALYSIS OF INDO ALUSYS
STRENGTH
1. HIGH QUALITY
2. HIGH BRAND VALUE
3. INDO ALUSYS ALUMINIUM
IS THE BIGGEST BRAND IN
NORTHERN INDIA AND IN
THIS SECTOR,CONSIDERED
THE BEST AMONGSTITS
COMPETITORS.
WEAKNESS
1. HIGH PRICE.
2. THE MOSTEXPENSIVE
AMONGSTITS COMPETITORS.
3. IRREGULAR SUPPLY IN THE
UNORGANISED SECTOR.
4. INFREQUENTVISITS IN THE
UNORGANISED SECTOR MARKETS.
5. HIGH QUANTITY OF MINIUM
ORDER
OPPURTUNITIES
1. UNORGANISED SECTOR IS
HUGE.40% OF INDIAN
INDUSTRY AREDEPENDENTON
IMPORTS AND 70% SHAREIN
THE NORTHERN INDIA
ALUMINIUM INDUSTRY.
2. HIGH BRANDNAMECAN BE
USED TO INCREASESHAREIN
THE INDUSTRY.ASSOCIATION
WITH INDO ALUSYS WOULD
ADD LEVERAGETO ANY
THREATS
1. PRICE OF ALUMINUM GOING
UP SO THE SHEETS EXPECTED
TO GET COSTLIER.
2. CHEAPER RATES OFFERED BY
COMPETITORS EATING INTO
INDO ALUSYS’S SHARE.
3. PERCEPTION IN THE
UNORGANISED SECTOR IS
THAT INDO ALUSYS IS TOO
EXPENSIVE TO EVEN CONSIDER.
66. 66
8 RECCOMENDATIONS
The following recommendations are advisable for INDO ALUSYS to increase
its sale in the Unorganized and organised sector-
I. High price perception is a constraint for INDO ALUSYS in its objective.
The small scale manufacturers need to be made aware of the superiority
of INDO ALUSYS and the brand value associated with it and hence
encouraged to expand by delivering better quality.
II. The difference in price with that of its competitors eg. Nalco, Balco,
Manic saw etc. is too prominent. Price needs to be brought down to
match up to the competitors. A difference in price of Rs. 2-Rs.3/kg with
other brands and of at least Rs 10-Rs12/kg with locally available products
should be targeted.
III. Sales promotion techniques like gold coin distribution or cash incentives
to retailers who meet certain inventory figures and sales target in the
Unorganized sector.
IV. Investment in Research and development on ways to producealuminium
in cheaper rates. The initial investment would be high but the
opportunities in the Unorganized and organised sectorcan be tapped
since price is the biggest hindrance in INDO ALUSYSs way in this
sector.
V. More advertisements are required to counter the high price reputation of
INDO ALUSYS aluminium and the dent free, rust free nature should be
effectively highlighted.
Advertisements in trade journals, trade fairs and industrial meets should
be heavy. The quality should be laid stress upon.
VI. Frequent visits to unorganized sector markets eg. Gurgaon and Manesar
to educate customers about INDO ALUSYS and Extruded products and
its superiority over other brands.
67. 67
VII. Starting in production and supply sheets since it will stand a better
chance in the unorganized sectorbecause of its cheaper rate.
VIII. Concentration on productionand supply of 0.91mm- 1.10 mm thickness
sheets since these are the most sought after in the unorganized sector.
IX. Identifying potential customers in the unorganized sectorsince there are
enthusiastic manufacturers. They should be encouraged to use INDO
ALUSYS products in place of local poorquality blade sheets.
X. Extending supportto stockists. There have been stockists saying that
some sort of credit period offered by INDO ALUSYS would encourage
them to keep more stocks of INDO ALUSYS products. There are
stockists who extend a credit period of around 15 days to local
manufacturers . A few of such stockists are-
a) Mega metal
b) Hard point
c) Verma metal.
XI. A credit perod of 10-15 days can be offered to stockists in place of the
Cash and carry system to encourage them to supply to small scale
manufacturers.
XII. To convert all order in wider width order to increase the productivity for
INDO ALUSYS as well as customers.
XIII. To maintain better delivery and quality of product.
XIV. To keep close watch on competition region wise and customer wise in
market as market is highly price sensitive and cheaper competitors’
products are available.
68. 68
XV. Cheap material consume more power though there is no apparent exterior
difference. Customers need to be educated of this through advertisement.
XVI. When it comes to productionof Flat Rolled Products, the rollind capacity
of the various plants are-
Renukoot- 80,000 tpa
Belur- 45,000 tpa
Taloja- 50,000 tpa
Mouda- 30,000 tpa
The wider sheets are brought from Renukoot and the rest of the supply is
done from Belur. The production capacity of Belur increased since the
local demand if manufactured locally, reduces Transportation cost,
Loading and Unloading cost, Packing cost.
So, Indo Alusys Should start getting into Aluminium Sheets
69. 69
9 CONCLUSION
ALUMINIUM -- ROAD AHEAD
The outlook for the Metal sectorin India is bright. Sustained growth is expected
across all key segments, aided by several factors such as, growing domestic
demand, investment in capacity addition, increasing supply deficit in other
countries and favorable government regulations.
• Government’s initiatives such as power and infrastructure development,
reduction in import duties and facilitation of FDI, along with overall economic
growth will provide a boostfor the Indian metal industry
• With economy projected to grow at 8 to 9 per cent in the coming years, there
is expected to be a surge in per capita metal consumption.
• For aluminium, exports will be a major demand source .The metal sector in
India, is clearly an attractive sectorfor investment and offers significant growth
potential, both in the domestic as well as exports markets. Metal companies
must assess their core competency and realign their strategy to copewith the
internal and global competition.
The outlook for domestic aluminium sectoris positive. It is predicated on the
likely strong growth in the end-use sectors, notably in the construction,
transportation, consumer durables and packaging sectors. The positive outlook
for the Indian economy, expected GDP growth of 8-9% per annum and
accelerating level of industrial activity should give boostto the construction
sector. The fiscal incentives for individual housing in recent budgets,
availability of cheaper finance, rising per capita income and increasing level of
consumer confidence will drive housing demand in future. Together with the
renewed focus on infrastructure development, it will reinforce the outlook for
the construction sector. Gaining from it and the increasing preference for use of
aluminium in curtain walling, partitions and door/window panelling, aluminium
consumption in the construction sectoris slated to grow in double digits over
the next two years.
70. 70
The expected strong growth in the transportation sectorwill be a key driver of
aluminium demand going forward. The share of transportation in aggregate
consumption is expected to rise significantly in the future.
This will be driven by improving volumes of commercial vehicles on the back
of a pick-up in industrial activity, introduction of new vehicles by international
car manufacturers and a shift towards aluminium use in select applications by
domestic car manufacturers.
Additionally, higher disposable incomes and improving level of consumer
confidence coupled with rising aspiration levels and changing consumer buying
pattern is likely to boostdemand for consumer durables in future. The prospects
of an increased consumption in the electrical sectorare improving with the entry
of the private sectorin the distribution sectorand restructuring of the State
Electricity Boards by the Government. The need for strengthening distribution
network in the power sectoralso augurs well for aluminium consumption in
future.
FUTURE OUTLOOK-
The future in the Aluminium industry is bright. The industry is growing in
Eastern India at 9% p.a.
The company should run advertising and promotional strategy and campaigning
to the full so the awareness is increased by a large percentage.
The metal sectorin India, is an attractive sectorfor investment and offers
significant growth potential.
INDO ALUSYS aluminium is far superior in quality than that of its
competitors.so if the customers can be convinced, the business of INDO
ALUSYS would increase by a large margin.
If the pricing is made more competitive, it has the potential to go on to become
the best in terms of volume of sales.
