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ANALYSIS ABOUT DEMAND OF AJAY PLUMBING PIPES IN RETAIL SECTOR
Report on the Summer Training Undertaken at
AJAY INDUSTRIAL CORPORATION LIMITED
Submitted By
MD SAJID
ROLL NO: 14 MIB0028
In partial fulfillments of the requirements for the award of the degree of
MBA (IB)
Centre for Management Studies,
JAMIA MILLIA ISLAMIA, NEW DELHI-25
2014-16
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DECLARATION
I , Md Sajid, hereby declare that the report entitled “ Analysis about Demand of
Ajay pipes in Retail Sector” in fulfillment of the requirements for the award of
the degree of MBA(IB) , which is submitted by me to the Centre for Management
Studies, Jamia Millia Islamia University, New Delhi is a bonafide description of
the summer training work carried out by me.
This is the original work and is the result of my own efforts.
Dated: Aug, 26th
2015 MD SAJID
Place: New Delhi 14-MIB-0028
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ACKNOWLEDGEMENT
Every work involves efforts and inputs of various kinds and people. I am thankful to all those
people who have been helpful enough to me to the extent of their being instrumental in the
completion and accomplishment of the project
I would like to take the opportunity to thank and express my deep sense of gratitude to my
corporate mentor Mr. Rajiv Kumar (senior HR). I am greatly indebted to him for providing his
valuable guidance at all stages of the study, his advice, constructive suggestions, positive and
supportive attitude and continuous encouragement, without which, it would have not been
possible to complete the project.
I would also like to thank Mr. Pramod Sharma (Area Manager), who in spite of busy schedule
has co-operated with me continuously and indeed, his valuable contribution and guidance have
been certainly indispensable for my project work. I owe my wholehearted thanks and
appreciation to our college faculties, who always offer their cooperation and assistance during
the course of my project.
Last but not the least I would like to express our heartiest gratitude to my family members and
friends. Their motivation, love and moral support boosted my confidence to work sincerely and
in an effective way. Thank you for being my guide and motivator throughout this difficult path.
I hope that I can build upon the experience and knowledge that I have gained and make a
valuable contribution towards this industry in coming future.
MD SAJID
JAMIA MILLIA ISLAMIA
NEW DELHI
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EXECUTIVE SUMMARY
Ajay Plumbing Pipe is considered as the Flagship area of Ajay Industrial Corporation Limited,
who is serving to the nation and abroad, since 1961. And during this period of 5 decades ,it
has epitomized itself , as a pioneer in product innovation and technological upgradation , it is
the result that a no. of Prestigious Industries , Hotels of India and abroad are now its valuable
customers.
As India is developing nation, Where Govt. is more focusing more on Infrastructure
development and due to lucrative future in retail , company has introduced its product
(Plumbing Pipes) in the retail sector also ,for the first time in India, but it can’t able to procure
as much market share ,as it has expected, although the quality of the product supplied by the
company is very much fine, fulfilling all the standards of Production.
Accordingly , a marketing research has conducted within the important areas of Delhi region ,
with the Objective of “ Analysis about Demand of Ajay pipes in Retail sector” , Where efforts
are made to get authentic data from the market, which are beneficial for me to come to
conclusion and will also help the company in various ways , by highlighting on demand drivers ,
its scope , level of competition etc , especially in retail sector.
The research is conducted in the proper and the structured manner, in order to achieve our
objective at its best possible way. The study was designed as a market survey and was
conducted with the help of questionnaire. We prepared a structured questionnaire and data
has been collected from all our respondents by conducting interviews. With the help of
collected data several analyses have been done. By presenting various graphs and pie charts, I
have tried my best to make our research analysis more specific and clear to all.
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Index
1. Introduction………………………………………………………….............................6-25
1.1. Overview of the Industry………………………………………………...................6 - 7
1.2. Company Profile……………………………………………………...…………….8
1.3. Vision and Mission………………………………………………………………...9
1.4. Quality Assurance…………………………………………………………………10
1.5. Awards…………………………………………………………………………….11 -12
1.6. Plumbing pipes and its features……………………………………………………13 - 17
1.7. Marketing Department………………………………………………………….....18-24
1.8. Human Resource Deparment………………………………….……………....…...25
2 . PVC Highlights……………………………………......................................................26 -28
2.1. Consumption of PVC in India and Abroad…………………………………….….26
2.2. Consumption over the Decade…………………………………………………..…27-28
3. Research objectives………………………………………………………….………….29
4. Scope………………………………………………………………………….…….…....30
5. Porter’s Model………………………………………………………………..………….31-37
6. Literature Review……………………………………………………………..…………38-39
7. Research Methodology………………………………………………………………….40– 42
8. Data Analysis…………………………………………………………………………….43 -49
9. Findings…………………………………………………………………………………...50
10. SWOT Analysis………………………………………………………………………….51-52
11. Conclusion………………………………………………………………………………..53
12. Recommendations………………………………………………………………………..54
13. Questionnaires…………………………………………………………………………….55
14. Bibliography………………………………………………………………………………56
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PLUMBING INDUSTRY
The plumbing sector is a growing one. According to the Global Construction 2020 Report
prepared by Global Construction Perspectives & Oxford Economics and sponsored by PWC,
US $ 97.7 trillion would be spent on construction globally in the next ten years. The report
further says that current spending of $ 7.2 trillion per year would grow by 67% to 12 trillion per
year by 2020, with half the amount being spent by three countries – China, India & USA.
Real estate is one of the fastest growing sectors of the Indian economy and contributes about 5
per cent to India's gross domestic product (GDP). Foreign direct investment (FDI) up to 100 per
cent is allowed with government permission for developing townships and settlements and in the
hotel and tourism sector through the automatic route. The Government of India (GOI) has raised
the housing loan limit to US$ 52,080 for priority sector lending and US$ 833 million has been
allocated for rural housing fund (RHF) in FY13 budget. The real estate sector is playing a
significant role in the rising demand for plumbing products.
Plumbing industry of India
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DEMAND DRIVERS IN INDIA
• India’s GDP will have multiplied five times by 2030.
• By 2030, 590 million people will live in cities in India, nearly twice the population of US,
today.
• Net increase in working-age population by 2030 will be of 270 million people.
• Indian cities will generate 70 percent new employment.
• From 22 million households in 2010, there will be 91 million urban households in 2030.
• From 42 cities today (Europe has 35!) India will have 68 cities with a population of one
million plus.
• India will need capital investment approx. $ 1.2 trillion to meet projected demand in
Indian cities.
• Anything between 700 and 900 million sq m of commercial and residential space (This
figure is almost equivalent to entire Chicago!) will be required to be built, every year.
• India will need to pave roads approx. 2.5 billion sq m by 2030, 20 times higher than that
added in past decade.
• 7400 km of metros and sub-ways will be required, 20 times the capacity added in the past
decade
AJAY INDUSTRIAL CORPORATION LIMITED
Ajay Industrial Corporation Limited is Established in 1961, a renowned manufacturing
organization in India, They are specialized in manufacturing various kind of products related to
Water Management. It may not be out of place to mention that AICL is the first Indian
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Manufacturing organization especially in hand pumps segment who has been accredited with
ISO 9001-2008 Certification. Government of India has also recognized us as an "Export House".
AICL has been regularly winning Export Excellence Awards at National Level from Engineering
Export Promotion Council (EEPCINDIA) of the Ministry of Commerce, Government of India
for many years towards maximum contribution in exports. AICL is merely not an assembly unit
like other Indian suppliers but is the only manufacturing unit which manufactures of complete
hand pumps under single roof, thereby maintaining uniform quality policy.
AICL associated with reputed International Agencies / NGOs which are involved in continuous
Research and Development in hand pumps and other water management products.
Their products are being manufactured under close supervision of highly trained and experienced
technical staff. These products enjoy high reputation even amongst internationally renowned
inspection agencies such as UNICEF (United Nations International Children Education Fund)
and some other top NGO’s due to our top quality raw material, best workmanship under stringent
quality controls at various stages and the vast infrastructure managed under single roof. AICL in
house research and development division is involved in continuous improvement of products'
quality/features and also in development of new products. AICL diversified into UPVC Door and
windows profiles, main line flexible power outlet system, water purification system and recently
into Solar Photovoltaic Systems also.
AICL also manufacturers of Specialized/custom PVC extruded profiles in all configurations
including Rigid/Flexible/Co-extrusion being supplied to major domestic as well as international
customers.
AICL product range includes the following products;
PUMPS - HANDPUMPS & OTHERS
India Mark-II Hand Pump, Extra Deepwell Hand Pump, Afridev Hand Pump, Direct Action
Hand Pump, Hand Pump Ghana Modified, Force Lift Hand Pump, Play & Pump Treadle Pump,
Force And Lift Shallow Well Hand Pump.
DRIP IRRIGATION SYSTEM
Sand Separator, Polyethylene Irrigation Lateral, Rain Gun Sprinkler Meghdoot, Flush Valve,
Impact Sprinkler IS 1318, Sand Filtration System, Flexible Swing Joint, Quick Release Coupling
Quick Release Coupling (Brass), Spray Popup, Solenoid Valve, Screen Filter (Plastic), Drip
Irrigation Accessories, Swivel Joint, Screen Filtration System.
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PIPE DIVISION
Screen & Casing Pipes, UPVC Riser Pipes, Column Pipes, Garden Hose Pipes, Pressure Pipes,
Suction Hose Pipe, Lay Flat Hose Pipe, HDPE & MDPE Pipes, CPVC Pipes & Fittings, UPVC
Pipes & Fittings.
SOLAR EQUIPMENTS
Solar Water Pumping Systems & Solutions.
EMERGENCY AND RELIEF SUPPLIES
Domestic, Shelter, Education/Sports, Water And Sanitation, Food Items, Agricultural Items,
Clothing Kits, Medical Equipment’s .
VISION
“To be the most respected and number one plastic plumbing company in India”.
MISSION
“To ensure customer service & satisfaction by providing high quality plastic pipes solutions
through a ubiquitous distribution network, spreading product awareness and constantly
improving manufacturing and operational efficiencies through systems and result oriented,
competent manpower resources thereby creating sustained value for all our customers and
stakeholders while maintaining high ethical standards”.
QUALITY ASSURANCE
High output, flexibility and comfort are all key features in our range of products. AICL products
offer straightforward, hassle-free irrigation and cultivation with high productivity and consistent
durability, as well as a choice of traditional or new modern designs.
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The quality personnel at Ajay Industrial Corporation Ltd. works in complete tandem with the set
standard and international norms to allow for the movement of only the best quality products to
the market. The qualities of our products are assured by a well-defined Quality Policy. Each
product undergoes a prescribed range of tests based on standards under the supervision of our
Quality Inspectors. Owing to this we have been accredited with ISO 9000 and QS 9000
certification. We are a Government of India approved "Export House" as well.
VARIOUS INSTITUIONS FROM WHERE , IT IS CERTIFIED
• SGS : Society General Surveillance
• PWD : Public Works Department
• IIT : Indian Institute of Technology DELHI
• IIT : Indian Institute of Technology MUMBAI
• ISI : Indian Standards Institute Dehradun
• NSF : National Sanitation Foundation
• ISI : Indian Standards Institute Pune
• MCGM : Municipal Corporation Of Greater Mumbai
• BMC : Bombay Municipal Corporation
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AWARDS AND ACHIEVEMENTS
• ISO 9001- 2008 Certified Unit
• 1S3 rated by Dun & Bradstreet (D&B)
• D&B DUNS® NUMBER : 65-034-4641
• Government of India Recognized Export House
• Affiliated with Engineering Export Promotion Council (EEPC INDIA) under the
sponsorship of Ministry of Commerce & Industry, Government of India.
• Affiliated with The Plastics Export Promotion Council (PLEXCONCIL) under the
sponsorship of Ministry of Commerce & Industry, Department of Commerce,
Government of India.
• Affiliated with The Federation of Indian Export Organizations (FIEO), set up by Ministry
of Commerce, Government of India
• Associated with All India Federation of Plastic Industries
Recipient of EEPC INDIA – Awards for Export Excellence
• Year 1998 – 1999 : Award for Highest Export Performance during the year.
• Year 1999 – 2000 : Award for Highest Export Performance during the year.
• Year 2000 – 2001 : All India Trophy for Highest Exports during the year.
• Year 2004 - 2005: Shield for Star Performer & Outstanding Contribution
to Engineering Exports.
• Year 2005 - 2006 : Shield for Star Performer & Outstanding Contribution
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• Year 2008 - 2009 : Shield for Star Performer & Outstanding Contribution to
Engineering Exports.
• Year 2012 - 2013 : Award for Excellence in Exports.
ABOUT - PLUMBING PIPES AND FITTINGS
Ajay Industrial Corporation Ltd. is an over 5-decade-old enterprise, a pioneer and leader in
plastic pipe and profile extrusion in India. With “Plumbing for Life” as its corporate motto, Ajay
plumbing products offer unsurpassed quality and superior features which increase product
durability, improves product performance and facilitates ease of installation hence providing
enhanced value for users and installers.
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AICL strive to remain at the forefront of technological innovation and product excellence
through use of cutting edge technology and state-of-the-art systems and thus are committed to
continuously offer new solutions that shall add value to all its stakeholders.
AICL products UPVC, CPVC plumbing pipes and fitting (for hot and cold water) PVC
pipes and fittings (for cold water) and SWR Pipes and Fittings (for drain and waste) offer a
complete pipes solution for home and industry.
The company's various facilities are accredited with ISO 9001, ISO14001 and OHSAS 18001
certifications and the piping products are approved by ISI, CFTRI, CIPET, SHRIRAM
INSTITUTE and MCGM etc.
The name and business strength that has been earned by our organization today, is due to the
professionally equipped and able staff, who have a varied experience of the Indian market and
good knowledge of serving the customers to their satisfaction. This is further enhanced by the
innovative ideas of the Top Management, who strive from time to time in creating awareness and
keeping the company at par to the latest developments in today's world.
FEATURES AND THE USAGE OF DIFFERENT PLUMBING PIPES
FLOWLINE CPVC PIPES AND FITTINGS
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These pipes & fittings are made from specialty plastic called Chlorinated Polyvinyl
Chloride (CPVC) and manufactured using a new twin screw extrusion and advanced injection
molding technology that ensures increased product toughness and unsurpassed durability. The
pipes and fittings are assembled with inexpensive tools and the jointing is done using Flowline
CPVC Fusion Compound which is proven with more than 50 years of successful service history
and assures the reliability of a Flowline Plumbing System.
Ajay to provide training and services round the clock for single family homes, large residential
buildings, commercial buildings, hotels and hospitals.
FEATURES AND BENEFITS
Ajay Flowline pipe and fittings are made from a specialty plastic known chemically as
chlorinated polyvinyl chloride (CPVC). Flowline CPVC is the result of new technology that
ensures increased products toughness year round. Ajay Flowline CPVC pipes and fittings are
designed for potable hot and cold for drinking water and human health and cold water
distribution and are assembled with commonly used inexpensive tools. CPVC fusion Compound
Jointing-proven with more than 40 years of successful service history - assures the reliability of
a Flowline plumbing system.
• Proven Hot Water performance upto 93° C
• Manufactured from environment friendly virgin
• Exceptional all weather corrosion resistance
• No scaling or pitting maintains flow
• Low microbial growth
• Does not support combustion
• UV resistance ensures pressure and temperature bearing capability unaffected
even after long term exposure
• Low thermal expansion
• High Impact resistance
• Fast and Easy installation
• Consistent and reliable jointing
• Very low lifetime ownership cost
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UNIQUE ADVANTAGES OF ITS CPVC FITTINGS
CPVC ELBOW (90°):
• Curvilinear in shape & higher radius results in gradual change in direction hence
smoother flow.
• More laminar the flow, lower the pressure loss
• Pressure loss half of competitive design (certified by IIT
UNION TYPE BRASS MTA/FTA:
• Multiple Functionality: Functions as a threaded adapter as well as union.
• Cost Effective: Requirement of union is eliminated & reduction in no. of joint.
• Convenient: Very easy to assemble and handle.
• Very convenient for use with overhead tanks & metal valves for easy maintenance.
• Absorbs expansion/contraction and vibrations
FIXED TRANSITION MTA:
• Patented designed MTA with CPVC coating idle for hot & cold water.
• Special high torque brass insert.
• No Leakage due to thermal expansion/contraction.
• CPVC coating prevents water-metal contact & reduces pressure loss.
• Reduces corrosion.
BRASS ELBOW WITH DROP EAR:
• Unique design with projection known as Drop-Ear.
• Contains high torque brass insert.
• Provides reference for proper alignment against the wall.
• Better stability after cementing inside wall.
• Can be screwed directly to wall.
GREELINE UPVC PIPES AND FITTINGS:
This UPVC pipes are meant for meant for cold water only.
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Features and Benefits UPVC
• Manufactured from environment friendly virgin UPVC Compounds
• Lead free material does not affect water quality for human health
• Does not corrode
• Does not support scaling even in hard water conditions
• High strength
• All weather UV resistance
• Does not support combustion
• Good Impact resistance
• Fast and Easy installation
• Consistent and reliable jointing
• Stringent quality control
• Cost effective with very low lifetime ownership cost
• Fully Compatible with Ajay Flowline Hot and Cold water plumbing
DRAINLINE SWR PIPES
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Ajay Drain line RF system is a high performance and most advanced PVC SWR Piping system
available in India today. This incorporates a very simple to use Dm-seal jointing system
specially designed for easy, full-proof and cost effective installation. Both the pipes and fittings
incorporate specially designed grooves for seating of Ajay’s innovative factory-fit DM-seal
{dual material} which saves both time and labor for the end user. The grooved fittings are
manufactured using high-tech fully automated injection moulding machines and latest “In-
mould groove” technology. The grooved pipes are manufactured on in-line fully automated high
pressure forming machines. As a result Ajay Drain line RF system delivers superior
performance and durability every time.
The system does not require any solvent cementing, welding, soldering or threading for making
the joints and is pressure tested for 100% leak proof performance.
Unique Advantages
• 100% ISI marked
• Long Life
• Cost effective
• Hygienic
• Corrosion Resistant
• Chemical Resistant
• High Flow rate with Smooth Bore
• Self-extinguishing
• Maintenance Free
3.3 Marketing Department
Marketing department is entrusted with the function of planning and executing the conception,
pricing, promotion and distribution of ideas goods services, to create exchanges that satisfy
individual and organizational boards. In simple terms the marketing function is catered around
the customer and his needs.
Marketing Policy:
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Ajay pipes tries to reduce the number of intermediaries, so they have no distributors in new
markets in order to reduce its cost. Billings and deliveries are made directly to retailers.
Functions of Marketing Department in Ajay pipes:
The major functions are explained below:
1. Demand Forecasting
2. Marketing Research
3. Marketing Control
1.Demand Forecasting
Demand forecasting is the main function of marketing in Ajay pipes .It is be done through sales
force in the company such as sales representatives’ sales executives’ etc. collecting information
from customers. On the basis of this information demand forecasting is to be done.
2. Marketing Research
Marketing research is more comprehensive composing all the functions of a marketing manager
that is it covers product, price, sales, market, promotion, distribution policies. It is commonly
says that marketing research begins where manufacturing ends. In fact it commences well before
the product is fabricated. It goes in to operation even before erecting the factory. It covers
analysis of competitive advantage, market share analysis and new product development. The
main objectives of market research are:
 To know their potential buyers.
 To measure the impact of promotional effort.
 To know consumer response.
 To know market costs and profits.
 To master external forces.
 To design and implement marketing control.
 To know retailers are more sticky to commission or Advertisement.
3. Marketing Control
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Various tools used for marketing control are cost control and a market share analysis. Cost
control is one task for monitoring the cost of marketing and it is compared with planned cost
standard, so as to identify deviations and take corrective action. Market share analysis is also
used for marketing control.
Objectives of Marketing:
The basic objectives of marketing are to satisfy human wants. The important objectives of
marketing are briefly explained below:
1. Customer Satisfaction through Quality Products
Marketing activities aims at achieving customer satisfaction by offering quality products. It is
also help more increasing profit, increasing goodwill, increasing image of the organization etc.
2 .After Sales Service
This another objective of marketing company provides after sales services to its customers. The
service of the company does not end with process of distribution the company has been waited
until good result comes by giving their products to consumer and they always rendered their
services at the time needed by the customers. The marketing and sales department keeps their
eyes and ears to open to know changes in the market. The complaint and suggestions if any are
well accepted by the company from their customers. There is any complaint about the sold
product the company will take it back at the company’s costs.
 Method Of After Sales Service:
For providing after sales service company may use the following methods:
 Sending special staff to the customers.
 Arranging service with dealers/agents.
 Appointing in depending service specialists.
3. Maintaining Price Leadership:
Company’s important objective is to maintain price leadership. Company is always trying to
become a price leader. It does not like become a price follower.
4. Achieving Maximum Market Share:
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Companies another objective is to achieving maximum market share. In order to achieve
maximum market share, company will spend more on advertising and offering quality products
to the customers.
5. Other Objectives:
Other objectives include:
 Increasing firms sales.
 To guarantee firms survival.
 To fortify better resource utilization.
 To meet customer needs.
Present market condition:
For their products ,Ajay pipes is facing the problem of higher supply than demand in retail
sector, which is an un healthy situation., In case of seasonal products like SWR that are used for
irrigation purposes whose demand exceeds supply in Monsoon should try to produce and stoked
it and tries to focus on later regular products like CPVC and UPVC to major customers. It
should be the basis for expansion of production facilities.
Market Segmentation:
Although Ajay Pipes is the dominant player in the North India. But geographically the
market is segmented into ten regions and branch officers are responsible for marketing activities
in their regions.
1. Bangalore (Karnataka)
2. Chennai (TN)
3. Andhra pradesh
4. Gujarat
5. Kerala
6. Haryana
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7. Maharastra
8. West Bengal
9. Uttrakhand
10. Delhi and Ncr
As per the consumers, market is segmented into three:
1. Government Works
2. Household Consumers(Retailers)
3. Builders
Presently highly concentrated on the builders also, as the construction industry is booming ,due
to SMART CITY policy of Govt. and appointed an expert team exclusively for this sector and
have a considerable large market share segments
We are also focusing more on Retail sectors as the share of household consumer is very high and
are objective of better dominance can’t be achieve without this sector.
Lastly, the Govt. agency, where we still have to capture more share, today Ajay pipes is single
supplier of INDIAN DFENCE, which is one of his great achievements.
Promotion:
As , Ajay Pipes entering in the Retail sector , promotion is necessary in the case of sale of
products, in the case of dealership, and in the case of sale force.
1. In the case of sale of products
Sales promotion includes short term incentives like’s discounts, free gifts and contests to
stimulate sale of products. Sales promotion builds a bridge between the products and consumers.
In the case of Ajay pipes, sales and brand promotion is done by providing information about the
products through advertisement, demonstrations, organizational shows etc.
2. In the case of dealership
Company provides incentives to their dealers and also provides dealers with discount at the time
of purchasing the product from the company. The company also provides after sale services to
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dealers. It is based on the nature of product the company offers their dealers with replacement
facility after checking the product.
3. In the case of sales force (PLUMBERS)
Company provides incentives to sales force. This includes the activities which induce and
motivate sales person. The aim of sales forces promotion is to make the sales men’s effort most
effective. The various schemes of sales promotion are:
 Bonus to sales force.
 Sales force contest.
 Sales meetings, convention and conferences.
Advertisement:
In the case of Ajay Pipes advertisement is the most glamour element of the promotion mix. It
covers all the activities connected with the giving of publicity regarding goods and services
offered for sale. Advertising is transmitting through mass media such as Pamplets, newspapers,
magazines etc.
Advertising Policy:
‘Each potential customer must see an advertisement’
Brand awareness is not much with the customers. Brand awareness to be created, it’s in growth
stage. Advertisement focused on creating the brand image and promoting the Ajay pipes brand
for their entire product. Earlier advertisement (Hoarding) were exhibited at district headquarters
and important junctions. Presently, apart from above mentioned places, at areas of potential
customers, each retail and whole sale outlet etc.
Mode of Advertisement:
1. Earlier as wall paintings, banners etc. now changed to huge flex hoardings.
Reason for change is:
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a. Attractiveness.
b. New technology acceptance with change in market.
c. Real and clear image of product.
d. Quality advertisement gives better company image.
2. Newspapers
3. Website.
4. Sponsoring cultural and institutional programs, management and dealers meet, plastic
manufactures association and export promotion counsels meetings.
5. Presently no visual media.
Advertisement Budget:
Budget of advertisement depends mainly on market needs as it’s growth stage need to promote
the brand .But company follow the policy of more margin to Dealers and Plumbers, which are
considered as real customer of their products , as ultimate consumer follow the recommendations
of Dealers and plumbers more than Advertisements, So its efforts are to reduce the
Advertisement budget and gives more margin to dealers.
Distribution Channel:
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FOR NEW MARKET
FOR ESTABLISHED MARKET
Pricing Strategy:
In Ajay pipes pricing strategy is a special kind of plan formatted in order to meet the changes of
external factors particularly from the policies of competitors. Pricing strategies change with
competitive situation. Some of the common pricing strategy followed Ajay pipes are:
1. Competitive pricing.
2. Premium pricing.
1. Competitive pricing:
It depends upon market condition competitor’s price, seasonal variation etc. customers are very
much aware of the quality and price of the product.
2. Premium pricing:
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In the case of suction and delivery hose, adopted a premium price strategy to utilize the ISI
marking and brand image. As the brand awareness is less with customers market will still
depends on price of the product.
In the case of new product:
Following pricing strategy followed in the case of new products:
1. Skimming price policy:
Company adopts skimming price policy in the case of new products. This is done with the basic
idea of gaining a premium from those buyers who always ready to pay a much higher price than
others. The main reason for adopting this strategy is to attract the consumers of high income
group. .
2. Penetration price policy:
Sometimes company adopt penetration price policy that means changing low price from
beginning in order to stimulate the growth of the market and to capture a large share of it. Since
the customers with low income are able to purchase it.
Price Fixation:
Price of the product depends on two components:
a. Cost of raw material - variable.
b. Operational &Processing cost - fixed.
Product price changes with change in raw material price, which is considered as a
variable. Minimum period of two weeks taken for price revision, though in some cases raw
materials price fluctuates each day.
Risk Involved:
Usually bad debts may occur in a business concern. But in Ajay pipes till now no bad debts have
been incurred. The usual credit period given to customers is 15 days. If one customer delays the
payment, they collect the amount by the way of sending reminders to him, although they are
keeping some amount as reserve for bad and doubtful debts. The society is keeping large
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quantities of direct materials as stock because the price of such materials is growing day by day.
Therefore these excessive raw materials don’t result in loss though some heavy investment is
required in it.
To avoid the risk involved in transportation of goods to customers outside Kerala, the goods are
insured accordingly. It helps the society to avoid the risk involved in transporting goods to
distant places.
3.4 Human Resource Department
Human resource management involves personnel management, personnel administration,
employee welfare, manpower planning, industrial relations etc. Human resource department is
headed by General Manager and assisted by all the department heads, factory managers, and
branch managers.
AICL does pro-active approach to managing people in the organization. It constitutes a series of
integrated decisions that helps to consolidate the employment relationship and believes that their
quality contributes to the efficiency of the organization and helps the employees to achieve their
objectives.
In the case of production centers, factory manager manages all personal staff and creates a good
relationship with office staff and workers. He undertakes their wants. He will motivate entire unit
as a whole. Each unit works as an independent unit with its own modes of training, induction,
performance, appraisal etc.
All the functions are done in consultation with the production manager and the general manager.
In the branch offices Branch manager maintains the warmth employee relationship and
assessment and training is provided by branch manager in consultations with marketing manager
and the General Manager.
PVC Industry highlights 2013-14
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 MMT stands for MILLION METRIC TONNES
CONSUMPUTION OF PVC IN INDIA AND ABROARD
AJAY PIPES Page 27
 Global
• Capacity 53.9 MMT (+6 %)
• Addition 3.0 MMT (80% in China)
• Demand 37.5 MMT (+1.9%)
 Domestic Industry
• Capacity 1.3 MMT
• Industry Growth 12 %
• Consumption 2.22 MMT
• Imports 1 MMT (+0.2 MMT)

INDIAN SCENARIO
Pipes
65%
Floorings
14%
Sheets
4%
Films
4%
Bottles
3%
Fittings
3%
Profile
3%
Others
4%
In India
GLOBAL SCENARIO
Pipes and Fittings
43%
Profiles
19%
Films & sheets
17%
Wire cables
8%
Bottles
2%
Floorings
3% Others
8%
GLOBAL
India PVC Consumption: Through the decade
AJAY PIPES Page 28

 Here we can see that demand of PVC is increasing every year and it is growing at
double digit growth rate.
RESEARCH OBJECTIVES
• To find out the share of Ajay Plumbing pipes in total demand of retail sector.
• To find out the potential Dealers and Retailers in Delhi region, who are having a good
AJAY PIPES Page 29

market presence and can be approached by the company to expand its market.
• To find out the areas of satisfactions and dissatisfactions of Ajay Pipes Limited.
• To find out the strength and weaknesses of Ajay pipes in the Plumbing pipe industry.
• To find out the factors that affects the demand for Plumbing pipes.
• To find out the major players who are dealing in Plumbing pipes in Delhi retail market.
• To analyze the data and recommendations so that demand for AICL (Ajay pipes) product
can be increased.
AJAY PIPES Page 30

SCOPE OF THE STUDY
• The study is confined to more than 150 outlets which consist of distributors , dealers,
retailers in 20 (approx) markets of Delhi.
• The survey which is conducted in Delhi will certainly help out the management to
know the loopholes in their strategy.
• The survey will lead them to have a detailed analysis of competitors’ strategy and
they can plan to have an edge over competitors.
• Most of the dealers, distributors, retailers dealing with Ajay pipes or other Plumbing
pipes were interviewed.
• The information about competitors strength was gathered from all the dealers and
retailers which was fruitful in analyzing the demand.
• The following five representative market areas were studied which covered 150
outlets ….
• Kotla mobarakpur
• Bhogal
• Okhla phase-1,2,3
• Khanpur
• South ext.
• Munirka
• Sangam vihar
• Lajpat nagar
• Mayur vihar
• G.K -1,2
• Chiraj Delhi etc…….
AJAY PIPES Page 31

PORTER’S
FIVE
FORCES
MODEL
AJAY PIPES Page 32

PORTERS FIVE FORCES MODEL
Porter's Five Forces is a framework for industry analysis and business strategy development
formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial
Organization (IO) economics to derive five forces that determine the competitive intensity and
therefore attractiveness of a market. Attractiveness in this context refers to the overall industry
profitability. An "unattractive" industry is one in which the combination of these five forces acts
to drive down overall profitability. A very unattractive industry would be one approaching "pure
competition", in which available profits for all firms are driven down to zero.
The Five Forces are
1. The threat of the entry of new competitors.
2. The threat of substitute products or services.
3. The bargaining power of customers (buyers).
4. The bargaining power of suppliers.
5. The intensity of competitive rivalry.
For plastics producers worldwide, India represents a range of highly new opportunities for
growth. The plastics industry in India has made significant achievements ever since it made a
modest but promising beginning by commencing production of polystyrene in 1957.The Indian
plastic industry conforms to the levels of sophistication required to produce plastic and plastic
products of international quality standards.
The consumption of plastics in 1998 is estimated at 25 million tons by the year 2015. The
demand for plastics is growing approximately @ 22% annually and plastic consumption in India
is expected to increase from almost 2.5 million tons every year .
AJAY PIPES Page 33

During the marketing research undertaken in Ajay pipes, New delhi, the information collected
regarding its competitors, products and the suppliers and the intensity of competitive rivalry has
been analyzed using Porters five forces model and is as follows:
1. The Threat of the Entry of New Competitors
Profitable markets that yield high returns will attract new firms. This results in many new
entrants, which eventually will decrease profitability for all firms in the industry. Unless the
entry of new firms can be blocked by incumbents, the abnormal profit rate will tend towards zero
(perfect competition). The history of Ajay industrial corporation limited (AICL) is the history of
pipe fittings production in India. In 1961 AICL started its operation in the Flagship area of
Plumbing pipes, in new delhi and afterwards, AICL became an important PVC pipes and
fittings manufacturer of India and it has also received various Prestigious awards , including one
of the best ISI mark for quality. Afterwards more organizations came into the plastic (PVC)
manufacturing industry and so that the competition also becomes huge.
The main competitors for Ajay pipes in the market now are:
• ASTRAL
Astral was set up in 1996 as a private limited company by Mr. Sandeep Engineer as
Astral Poly Technik Private Limited. The name of the company was subsequently
changed to Astral Poly Technik Limited in 2006. It manufactures and trades in CPVC
and lead-free poly vinyl chloride (PVC) plumbing systems for residential, commercial
and industrial applications. Astral entered into a licensing agreement with Lubrizol
Corporation (USA) and a techno-financial joint venture with Specialty Process LLC,
USA to manufacture products under the flow guard brand and for obtaining necessary
technical expertise for manufacturing CPVC pipes and fittings. The company started its
CPVC production in 1999 and subsequently entered into lead-free PVC pipe
manufacturing in 2004. The company operates two plants, one in Gujarat and the other
in Himachal Pradesh to manufacture plumbing systems from 1/2' to 8' diameter. As on
March 31, 2010, Astral has total manufacturing capacity of 30,867 tonnes of pipes and
fittings per annum (TPA). The company has a variety of product portfolio of higher and
lower range of pipes and fittings suitable for value as well as premium markets.
AJAY PIPES Page 34

• SUPREME INDUSTRIES LIMITED
The Supreme Industries Ltd is India’s leading plastic products manufacturer. The
company operates in the injection moulding and extrusion segments. Supreme has the
largest capacity in India, with 22 manufacturing facilities and a pan-India distribution
network.
Details of business segments
Source: Company, CRISIL Research
• Finolex Industries Ltd.
Finolex Industries Ltd is the largest manufacturer of rigid poly vinyl chloride (PVC) pipes and
fittings in India having a market share of nearly 10 per cent. The company's manufacturing
capacity of 36,000 tons for PVC pipes and fittings is likely to be increased to 50,000 tons by the
AJAY PIPES Page 35
Segment Products
Plastic piping
system
UPVC pipes, plastic fittings, HDPE pipes,
CPVC pipes system,
PPRC pipes system, LLDPE pipes
Packaging
products
Specialty, protective packaging and cross
laminated films
Industrial
products
Industrial components for auto and
consumer durables, material
handling products
Consumer
products Furniture

end of next year. Recently, FIL commissioned an ultra-modern PVC pipes plant at Ratnagiri in
Maharashtra. The company also has a plant in Pune.
• Ashirvad
Ashirvad is the licensee of Lubrizol, USA to manufacture and market FLOWGUARD CPVC
(Chlorinated Polyvinyl Chloride) plumbing systems in India. Ashirvad uses N.S.F listed
compound ( Temprite 88628 Tan 309 and Tan 311) from Lubrizol to manufacture a world class
CPVC piping system.
Ashirvad Flowguard is a potable water distribution system made of chlorinated polyvinyl
chloride (CPVC) for use in single and multi family homes, apartments, high-rises, hotels/motels
and commercial installations. It has a history of superior performance and competitive prices
compared to metal and other alternative piping systems.
In a sentence Ashirvad Flowguard is the highest quality and best-valued hot and cold potable
water piping system available. Ashirvad has a Design registered for alignment on the plastic
fittings.
Some major Players going to Launch:
• TATA PIPES
• RELIANCE PIPES
2. The Threat of Substitute Products or Service
The threat of substitute is high when the price of that substitute product falls or it is easy for
consumers to switch from one substitute product to another or when buyers are willing to
substitute. AICL constitutes plumping equipment materials such as PVC pipes, fittings, SWR
fittings and PVC adhesive. Ajay fitting is leading names fittings over all the states. Ajay PVC
fittings are manufactured from the finest grade PVC resin trusted and acclaimed all over the
country for quality. Due to the high tensile strength and reliability used in industry, homes etc.
Ajay fittings are available in more than shapes and measures vary from 10mm to 200mm. They
are also available in 3 different colors. Injection molded Ajay PVC pipe fittings confirm to ISI
specification(under ISO 9001 and ISO 14001 for Quality and Environmental management
respectively) and assure totally safe, non-toxic water for all purposes.
The development of PVC pipes and all type of Plastic fittings and equipment’s over the
world is by using the organochlorine called Poly Vinyl Chloride (PVC). Ajay is also developing
AJAY PIPES Page 36

all type of pipe products (rigid pipes, flexible hoses etc.) using the same organochlorine PVC.
The competitors are also using the same technology. So there is no substitute products made
from other organochlorine, the plastic products are all made from the same organochlorine PVC,
But quality of moulding machines and processing technology that are used by this company is
very fine , which outcomes in certifications awarded to this company by various trusted agencies.
3. The Bargaining Power of Customers (Buyers)
Buyers or customers can exert influence and control over an industry in certain circumstances.
This happens when:
• There is little differentiation over the product and substitutes can be found easily.
• Customers are sensitive to price.
• Switching to another product is not costly.
Nowadays customers have the buying power and they have the choice in the market to choose
the product what they want. In late 90’s Ajay pipes began the production and marketing activity
in the india. In Delhi region before Astral pipes came in plumbing pipes industry, it has a good
name among the customers and has a good marketshare also. Although Ajay have international
standards and also have the ISI certification and the product flexible hose is for both domestic
and industrial use. This made Ajay pipes to gain supremacy of their products over others
products, market ascendancy was not difficult. AICL now is a ubiquitous presence in the entire
African continents . In 2008, Ajay pipes received the ISO 9001 Certification, yet again the first
in South India. The customers (Industrial sectors) of Ajay pipes are satisfied with their products.
They continue to use the product and will purchase them in future. Quality is the main factor that
helps Ajay pipes to compete with other brands. Advertisements were done in print media only.
4. The Bargaining Power of Suppliers
Suppliers are also essential for the success of an organization. Raw materials are needed to
complete the finished product of the organization. Suppliers do have power. This power comes
from:
• If they are the only supplier or one of few suppliers who supply that particular raw
material.
• If it costly for the organization to move from one supplier to another (known also as
switching cost
• If there is no other substitute for their product.
AJAY PIPES Page 37

Ajay pipes, have suppliers from USA based company (FLOWGUARD,FLOWLINE). Ajay pipes
concentrates there market in whole India. And company can market their product very smoothly
through the market segmentation. The company is selling their products by dividing the market
state wise. The company concentrates in
• Delhi and Ncr Andra Pradesh Tamil nadu Uttrakhand
• Gujarat Karnataka Kerela West Bengal and Maharastra. .
To be more precise, the product of the company makes its presents felt in the various countries
also, Like- South Africa and various other African nations
.5. The Intensity of Competitive Rivalry
If entry to an industry is easy then competitive rivalry will likely to be high. If it is easy for
customers to move to substitute products for example from coke to water then again rivalry will
be high. Generally competitive rivalry will be high if:
• There is little differentiation between the products sold between customers.
• Competitors are approximately the same size of each other.
• If the competitors all have similar strategies.
• It is costly to leave the industry hence they fight to just stay in (exit barriers).
In India the PVC industry is going through high competitive rivalry. As too many organizations
are coming to PVC pipes & Fittings manufacturing industry yearly, the competition is also
becoming higher. In the last one decade unparalleled growth was witnessed by Ajay pipes, which
emerge as a leader in the PVC fitting and to diversify into the manufacturer of Hand Pumps,
drainage fittings and PVC pipes. The companies operation includes manufacturing of PVC
fittings and allied products in clearly defined core business areas at home and overseas. Ajay
group has steadily developed into a professionally managed company comprising of 10
AJAY PIPES Page 38

manufacturing units in 3 production centers (Dehradun, Pune, Delhi) with a total installed
capacity of 3850 meter per annum- 10 divisions and effective centralize support services wholly
dedicated to the most existing standards of quality and customer services, constantly motivated
by the need to ensure total product satisfaction.
Strategy persuaded by Ajay pipes are:
 Produces good quality product.
 Makes use of modern techniques for production to meet the demands mostly with
automated machines.
 Assigning targets to each Distributors and as such rewarding them with attractive prizes.
 Everyday feedbacks are taken.
 To develop a sense of respect for oneself in other’s mind.
These all , help them to overcome the intensity of competitive rivalry in the PVC plumbing pipes
& other Manufacturing industry.
Literature Review
FUTURE OF PVC PIPES INDUSTRY OF INDIA
( By KEN RESEARCH outlook to 2019)
It provides a comprehensive analysis of the PVC Pipes and Fittings Industry in India.
The report covers various, PVC pipes and fittings manufacturing companies and new
players venturing in the market.
The Indian PVC pipes and fittings industry, which comprises of segments such as
RPVC, PVC and CPVC pipes and fittings has grown significantly over the last few years
due to the increase in the demand from irrigation sector on account of the burgeoning
population and uncertain weather conditions in the country. The PVC pipes and fittings
industry in India is highly fragmented. The market revenues have grown at a CAGR of
12.5% from FY’2009-FY’2014. There is a fierce competition in the market with a large
number of organized and unorganized players engaged in the manufacturing and
distribution of PVC pipes and fittings in the country. Finolex Industries Limited
dominated the market in terms of production capacity in FY’2014.
According to the research report, the India PVC pipes and fittings market will grow
at a double digit CAGR over the period FY’2014-FY’2019 and is projected to reach
AJAY PIPES Page 39

INR 391 billion by FY’2019. Increased government’s thrust on infrastructure
development, rising demand from construction sector, expansion in the housing sector
and burgeoning population leading to increased demand for agricultural production , will
drive the market growth in the coming years.
“PVC pipes will gradually replace conventional piping systems in the market due to their
lower cost and higher durability. CPVC pipes are expected to register fastest growth in
terms of the production capacity in the next 5 years from FY’2014-FY’2019. Rising
acceptance of CPVC pipes over galvanized or PVC pipes will lead to the growth in the
future. The organized segment of the market is predicted to grow at a faster rate in the
coming years with shifting preferences towards branded and quality products being
witnessed in the domestic market”,
According to the Research Analyst, Ken Research
GROWTH IN PLASTIC PIPING INDUSTRY
“Over last ten years plastic piping industry has been seeing a very strong demand
mainly from new construction earlier five years in metro cities and last five years from
the Tier II and Tier III cities. Besides new construction demand, there is a huge demand
for replacement of metal pipes to plastic pipes mainly due to the corrosion, rusting,
scaling etc.
Since last five year the industry is growing at 15 per cent CAGR. This growth
momentum is to continue in coming years also mainly because of change in the
government. Prime Minister Narendra Modi believes in creation of Infrastructure which
needs different kind of pipes. Beside he has announced that every Indian should be
having a house by next decade – this will create huge demand for low cost housing
segment and each such segment will need pipes for plumbing, sewerage, rain water
etc.
With this change of guard in government, capex cycle of the industry will also revive
which will also consume lots of pipes in coming years. Piping industry for next decade
will grow again at 15 per cent CAGR which is mainly because of demand in agriculture
pipes, plumbing pipes and industrial pipes.
Piping Industry of India was approximately Rs. 215 Bn consisting:
Irrigation: Rs 33 bn
PVC Pipes: Rs 165 bn
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HDPE: Rs 15 bn
PPR etc: Rs 2 bn.
Indian piping market is still unorganized to the tune of 40 per cent to 50 per cent but with
growth of GDP and Per Capita Income – it will ultimately move to organised players. In
last few year customers are moving from unbranded to branded quality
pipes which is the key reason for growth of organized players.
India has irrigation potential of 140 mn hectares. Out of this, only 40 per cent is under
irrigation hence there is huge potential for PVC pipes.”
-By Hiranand Savlani, Chief Financial Officer – Astral Poly Technik Ltd.
RESEARCH METHODLOGY
RESEARCH DESIGN
The research is of exploratory type. Since, Ajay pipes is in expansion mode, the research
tried to find out the potential distributors , Dealers and retailers of Plumbing pipes
(cpvc,upvc,swr) who can help the AICL to expand its market in Delhi and Ncr.
SOURCES OF DATA
SECONDARY DATA COLLECTION
Secondary data was mainly collected through the internet. Data has been extracted from
1 .the official website of Ajay industrial corporation Limited
2. PLATTS ,McGraw Hill Financial
3. Indian Custom
4. CRISIL Research
PRIMARY DATA COLLECTION
AJAY PIPES Page 41

Primary data was collected from the market place by interacting with the dealers, retailers
through the survey method. The questionnaire used in the survey method has both structured as
well as unstructured questions along with their necessary reviews about the product, market
conditions.
 Data collection was done through questionnaire.
 Presenting of questionnaire was done and the required changes were made before
the actual survey.
EXPLORATORY RESEARCH:
It is that type of research design , the primary objective of which is to provide insights into
and the comprehension of the problem situation confronting the researcher.
This was done by having a discussion and under guidance of our project guide Mr. Rajeev
Kr (HR)
SAMPLE ELEMENT
It includes various objects within the population from where information are gathered by the
researcher and about which inferences are to be made.
 In my project the sample element are the various Dealers and retailers who are
certified Ajay plumbing Pipes dealers, non-certified Ajay plumbing pipes dealers as
well as non Ajay plumbing pipes dealers .
SAMPLE EXTENT
• It includes geographical boundaries under consideration.
• In this project the sample extent was major 20 major markets of plumbing pipes of
DELHI region which includes Kotla mobarakpur, Bhogal, South ext. ,Khanpur, Sangam
Vihar , Khanpur ,Mayur vihar etc..
SAMPLE TECHNIQUE
 The technique used was Cluster sampling.
AJAY PIPES Page 42

 Cluster sampling is a non- probabilistic sampling technique, where division of
population area into recognisable sub divisions i.e cluster and then simple random
sample of these clusters are drawn.
Where, I have taken population of Delhi region ,then divide it into various important
markets as clusters.
LIMITATIONS OF THE STUDY
• Limited Time:- All the dealers and retailers were not covered because of constraints of
time.
• Restricted Area:- The study was restricted to certain important areas of Delhi which
may not seem to present the general picture of the product.
• Biasness in Response:- Respondent unwillingness to provide adequate
information were consequent upon time constraints and personal
inconveniences.
• Non representative sample: In this research project a sample survey was conducted. A
sample of 150 respondents was selected. So such sample size cannot be said to be the
true representative of the universe.
• Inadequate data: The data provided was not up to the mark due to which we faced
problems in this survey.
• Lack of scientific method: The lack of scientific training in methodology of research
was great impediment in our research program, which led to the delay of research.
AJAY PIPES Page 43

• Biasness in the responses: The answers provided by the respondents suffer
from biasness.
• Cost Factor: It was not possible to conduct extensive research due to paucity of funds
• Considering the large size of the market, the sample size was probably inadequate as
covering each and every department, which was at geographical disparate location, was
not feasible.
AJAY PIPES Page 44

OBJECTIVE 1- TO KNOW THE DEMAND OF CPVC PIPES AND FITTINGS
Supreme
15%
Astral
60%
Ashirwad
10%
Ajay
5% Others
10%
Demand of CPVC
INFERENCES
• As per Diagram, The Demand of Astral Pipes is dominating ( i.e 60%), than remaining
competitors in the retail market.
• And the demand of Ajay CPVC pipes and fittings is 5% , which is similar to other
remaining competitors.
Reasons:
• Due to long time of presence and Advertisement, it became WORD–OF –MOUTH for the
people regarding the Astral pipes, Although retailers and their customers are not very
much aware about the quality of Astral pipes ,but they are selling and using it , because
most of the people are using it.
Though the quality of Ajay pipes is fine , or we can say better than Astral pipe, but it is
his initial period in Retail sector.
AJAY PIPES Page 45

OBJECTIVE- 2 TO KNOW THE DEMAND OF SWR PIPES AND FITTINGS.
Supreme
19%
Astral
20%
Ashirwad
10%
Ajay
6%
Others
45%
Demand of SWR pipes
INFERENCES
• Regarding SWR Pipes , other players (like PRAKASH, PRINCE , HDR) are more dominating
in the market, i.e 45%.
• And other known company like Astral and Supreme has only share of 20% (approx).
REASONS
• Due to their low costs and customers show less consciousness towards this pipes
,because of sewage or drainage use.
• And this pipes have less effect on health conditions of people.
• And most important aspect that it is used by rural India for irrigation also, who always
place orders for low cost.
AJAY PIPES Page 46

OBJECTVE-3 TO KNOW THE LEVEL OF CUSTOMER LOYALTY IN RETAIL
INFERENCES
• So, long Loyalty of customers is concerned Astral is dominating ,where about 50 dealers
shown their loyalty towards this company
• And, Ajay pipes has little customer Loyalty i.e 10.
REASONS
• Due to the perception of the people and plumbers that its quality is better than others,
as a result they are more sticky towards the Astral , Although in present Astral has
increases the prices of plumbing pipes and reduces a lots of offers and schemes ,yet he
able to maintain the demand in Delhi region.
AJAY PIPES Page 47
0
10
20
30
40
50
60
70
Supreme Astral Ashirwad Ajay Others
LOYALTY
In no.

• Due to late entry in the Retail market, Ajay pipes has least share in Loyalty,.
OBJECTVE 4 TO KNOW THE LEVEL OF SATISFACTION AMONG RETAILERS REGARDING
PROFIT MARGIN
.
Satisfaction among Retailers (regarding Profit Margin) towards Companies
INFERENCES
Regarding satisfaction level among the Dealers ,Ajay pipes is dominant, where about 40 dealers
are interested , which is higher than even Astral pipes, which is more dominating (regarding
Demand) in the market, but Retailers are not very much satisfied with the company
REASONS:
• AJAY Pipes, is supplying products at a competitive margins to dealers and retailers than
other Players ,so there is higher satisfaction level.
AJAY PIPES Page 48
0
5
10
15
20
25
30
35
40
45
Supreme Astral Ashirwad Ajay Others
Satisfaction Level.
In no.

OBJECTVE 5 TO KNOW THE NO. OF BRANDS THAT DEALERS HOLD
0
10
20
30
40
50
60
0 to 1 1 to 2 2 to 3 3 to 4 more than 4
No. of Brands a Retailer have
no.of retailers
INFERENCES
• Here we can see , maximum Retailers used to keep 3 to 4 companies (Brands) product
,i.e 50
• Here ,it shows that Ajay pipes should focus more on this type of Retailers, because
maximum well known retailers who have more turnovers came under this category (3
to 4).
AJAY PIPES Page 49

• And it would be easy for customers and Plumbers also , in order to compare different
features , prices and services under one store.
• Retailers can also able to analyse the features of different companies and can
suggest to customers as according to his needs.
OBJECTVE-6 TO KNOW THE NO. OF DEALERS THAT ARE INTERESTED TO DO BUSINESS WITH
AJAY PIPES
YES
68%
NO
30%
On demand
2%
Dealersinterested to do business in future
INFERENCES
• On examining the quality of Ajay pipes and its various offers irrespective of other
Plumbing pipes companies, Retailers are happy to do business with the company.
AJAY PIPES Page 50

• And, here data shows that about 68% of figures are interested to do business,
Where as 30% are not ready
REASONS
• Lack of Storage Capacity or warehousing.
• Already invested huge money in different company.
• Going to change his business type from Plumbing pipes.
• Lack of confidence that, it will conquer the market.
FINDINGS
• Ajay Pipes lacking behind in retail sector due to its weak advertisement and promotional
programs.
• Many customers switch over from Ajay pipes to other pipes, due to lack of proper supply in
past 2 yrs.
• Word of Mouth is very important, because Customers even Dealers are not aware about the
Quality and features of different Plumbing pipes , but they are purchasing say Astral pipes ,
because it sold more.
• Since quality of Ajay pipes is excellent, so many Dealers
and Plumbers are still Loyal and demanding Ajay pipes.
• Astral & Supreme are major Players within Delhi region.
• Most of the distributors, Dealers, retailers have a very positive response towards the quality of
product.
AJAY PIPES Page 51

• Torque capacity, bend ability, thread quality and zinc coating of Ajay pipes are fine.
• PVC plumbing pipes are capturing the market of steel pipes , due to low cost, durability and
safety point of view.
SWOT ANALYSIS
STRENGTHS
1. Ajay pipes has a vast experience of plumbing pipes ,which has better
knowledge, skill and expertise than competitors in this area.
2. Ajay pipes is known for his superior quality. Hence the retailer tends to recommend and
sell it to the customers and hence keep a good amount of stock.
3. The biggest strength of Ajay pipes is its competitive price. And Price sensitive customers
prefer brand with less rate and hence dealers and retailers prefer to sell this product.
4. Ajay pipes give a handsome margin to the retailers which encourage them to stock and
sells more. ..
5. Available in every range, around 800 variants of plumbing pipes ( cpvc ,upvc, swr) are
available with different sizes.
AJAY PIPES Page 52

WEAKNESSES
1. There is no fixed distributor in retail of Ajay pipes in the cities. At present one or two
dealers are present in different market, which has lesser turnovers,
2. There is lack of knowledge about the schemes of the company to their customers.
3. Representatives are not very active as per the demand of the market.
4. The brand image of Ajay pipes is weaker with respect to the top players.
5. Lack of proper supply services to dealers in retail.
II
OPPORTUNITIES
1. The biggest opportunity for Ajay pipes is in rapid Urbanisation of the state, & smart city
development which led to derive demand of plumbing pipes.
2. .Today there is replacement of metal pipes to pvc pipes especially in agricultural sector
which opens a new source of demand in agriculture based country like India.
3. Ajay pipes can co-operate with retailers, distributors and their dissatisfaction with
important players become reason to connect with it.
THREATS
1. The biggest threat for Ajay pipes is tendency of retailers & customers to switch over to
AJAY PIPES Page 53

the other brand, due to lack of offers and unavailability, lower prices of other brands,
greater margin and quick availability is a threat.
2. The ad-campaigns, innovation, brand image and more transparent distribution network of
other pipe companies poses a threat to Ajay pipes .
3. Quality based companies is a major threat to it. As this company focus more on quality in
their promotional events.
AJAY PIPES Page 54

CONCLUSIONS
• Ajay Pipes is dominated by other brands like ASTRAL, SUPREME and others in Delhi
region.
• Ajay Pipes is not focusing on their advertisement and promotional activities ,due to
which other players are getting advantages over it
• Ajay Pipes also suffering with inadequate supply of their products to the targeted
markets.
• Other competitors of Ajay Pipes adopt the policy of Brand awareness and increase their
loyalty and awareness among retails sector.
• Some loyal dealers as well as customers are still with Ajay Pipes due to its excellent
qualities of pipes.
• Due to Ajay Pipes excellent quality in pipes it is estimated that the demand will increase
with awareness among dealers and customers.
AJAY PIPES Page 55

RECOMMENDATIONS
• Mass Advertisement and other promotional programmes should be followed.
( Ιt can also be possible that company can go for mass advertisement but with less
frequency so that a reference can be given to customers by our brand ambassador for the
company & frequency should be lower as according to our budget, only for reminding the
customers about the presence of that very brand in retail stores.
Today we have a lots of examples also like Brand ambassador of TRADE INDIA i.e Irfan
khan whose ads are very less but they have a figure.
Another example is of Cycle brand aggarbatti who chose Amitabh bachhan as his
Ambassador for reference but it has very less ads on Tv).
• Conduct Plumbers’ meet periodically in different market and try to educate them about
the company.
• Offer certain incentives to the Plumbers, on demand of our product from Dealers.
(e.g - By Plumber bonus card Scheme – As like HB , who issued Plumber’s
membership cards where they able to get Bonus for every orders that they are placing
on behalf of the customers and this bonus can be redeemed in terms of cash or free
gifts.).
• Proper Awards and recognition should be given to dealers and distributors for
increasing the sales volume.
(And this Awards can be given for the best sales or market presence etc in the form of
Trophies, certificates etc as like telecomm. Companies used to give, So that it works for
both recognition & for advertisements for our Company.)
• Representatives are required to be more active in their specified areas, and if required
more representatives should be appointed in a particular market for better coverage of
area.
• An expert team should be there, that follow big builders, Housing societies, Govt.
agencies ( e.g -PWD) for getting bulk orders.
• If possible, allow certain credit facilities to small dealers, so that they remain Loyal
towards the company.
• Provide the facilities of On demand orders ,where the burden of storage (Warehouse)
and credits for dealers get reduce.
AJAY PIPES Page 56

• Motivate the Dealers and Distributors for Cash payments by providing cash discounts
from 2% to 2.5%.
• Company should also focus on small growing cities, smart cities which are at their
developing stage and where there is demand of construction tools like plumbing pipes
and others.
• Showing our Prestigious customers and our experience, in our advertisements whether
they are of industrial sectors , Hotels or any builders , so that customers can easily rely
on us.
( for ex- our customers like –Taj group , Indian defence etc).
• Marketing personnel should interact with the retailers as well as customers on regular
basis.
RENTAL ADS
• Leasing certain space in the shop of our potential dealers,
(where our own brands’ product will be available along with its unique features than its
competitors, which can catch the attention of our customers) .
• Big banners in the border areas, bus stands etc, where large crowds used to move.
(As like - Builders used to put big banners on the Towers, buildings etc for selling the
Apartments ) .
PRODUCTIONS
• Company should concentrate more on production and sale of CPVC Pipes, since
demand for CPVC pipes is much higher in comparison to UPVC pipes
• Company should try to reduce the prices of SWR pipes because maximum
customers used to prefer low cost, as these pipes has no effect on health of
customers & due to its usages in drainage & irrigation purposes.
AJAY PIPES Page 57

QUESTIONAIRRE
Date
DEALER'S SURVEY FORM
Type of customer
Name
Address
contact no.
E mail ID CPVC UPVC SWR
Brands selling
1
2
3
4
5
Ever heard about Ajay pipes
Aware about quality
Satisfied with existing brands
Company you prefer
Reason (for choice)
Plumbers meet by companies
Duration for getting delivery
Feedback (if any)
AJAY PIPES Page 58

BIBLIOGRAPHY
WEBSITES
• www.plumbersoutlook.com
• www.astralpolytechnik.com
• www.Finolex.com
• www.ajaypipes.com
• www.supremeindustries.com
• www.aicl.com
REPORTS
• Global construction 2020 Report- By Oxford economics
• Ken research outlook to 2019- By research analysts of Ken team
• PLATTS McGraw hills Financial
• Indian Customs Report
• CRISIL Research Report
AJAY PIPES Page 59

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