Tubular Poles
BY
Neeraj Goyal
PGDM (FT) 08-10
F1-0825
SECTION-C
AT
Title P.No.
Students Undertaking 5
Company certificate 6
Acknowledgment 7
Executive Summary 8
Introduction 9-10
Specifications 15-16
Products 31
Certifications 32
Findings 47-54
Conclusion 59
Recommendations/ Suggestions 60
References 61
Annexure 62
STUDENT UNDERTAKING
I, Neeraj Goyal hereby declare that the Project Work titled “Business
Research on Tubular Poles” is the original work done by me and
submitted to Jagan Institute of New Delhi, as a Summer Training
Project in partial fulfillment of requirements for the award of Post
Graduate Diploma in Management.
COMPANY CERTIFICATE
ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of competition and success, training is like a bridge between
theoretical and practical working; willingly we prepared this particular Project. First of all we
would like to thank the supreme power, the almighty god, who is the one who has always
guided me to work on the right path of my life.
I express my sincere thanks to Mr. S.C. Kapoor for his valuable support. We would also like
to thank Mr. ASHOK GUPTA (CEO, Jindal Industries Ltd. (Hissar)) who extended his
support throughout the project. I would also like to thank Mr. Surender Goyal at the
Marketing Branch office, Bhikaji cama palace, New Delhi for providing us with the dealer
list and customer database without which our project would not have been complete.
I also thank to & others faculty members of CRMC, for the valuable suggestion and
making this project a real successful.
Last but not least, my sincere thanks to my parents and friends who directly or
indirectly helped me to bring this project into the final shape.
NEERAJ GOYAL
ROLL NO. FI-0825
SECTION- C
EXECUTIVE SUMMARY
India’s rapid economic growth is built on a frame of steel. A soaring demand by sectors like
infrastructure, real estate, and automobiles at home and abroad, has put India’s steel industry
on the world map. India ranked eighth in terms of world crude steel production, with a
production of 33MT of crude steel production. The large amount of steel production is then
used for making products like pipes, sheets etc. in different companies.
This project is an organized approach towards gaining knowledge about the research on
tubular poles required by a company why the demand of the Swaged type tubular poles is
going down by which it can take further action for increasing its sale of Swaged type tubular
Poles.
The theme of the project is to know about market scenario of tubular poles, different types of
poles, company’s competitors, and the factors which are influencing a customer to purchase a
particular type of pole.
The basic idea is to ascertain what is the future perspective of Swaged type tubular poles for
further expansion and daily operations, in the best possible manner and at the lowest rate.
In view of competition, it is desirable to have more persons on the marketing department for
the increase in sales and increase production and show better results.
INTRODUCTION
Jindal Industries Limited (JIL), Hisar incorporated in early sixties, is a leading manufacturer
in India for Galvanised Steel Pipes, Black steel Pipes, Hollow Sections and steel Tubular
Poles. Founded in early 60’s by the group of Jindal and their partners, the unit has steadily
grown to become a premium brand in galvanized Steel pipe industry. Jindal HISSAR,
products have earned the reputation of impeccable quality and total reliability. The name has
become synonyms with the ‘BEST’ in Steel Tubes.
Jindal Industries Limited has doubled its production and sales during last Five years. It has
achieved this feat by winning a higher share in a very competitive market, which is also
flooded with inferior and duplicate quality Pipes. Its strength lies in its all time endeavor to
provide higher & higher standards of quality and service to their worthy customers. They
never compromise on Quality front even under the most adverse market conditions. Mainly
SAIL material in Steel and High Grade Zinc from Hindustan Zink Limited is being used to
cater to high quality Pipes/Tubes demand in the Market.
Jindal Industries Ltd has earned a commendable reputation for reliability and
quality due to its adherence to uncompromising standards of quality. The objective is to
delight customers at reasonable prices. All pipes have to pass through a series of tests during
stages of production at our in-house testing laboratory. Jindal Industries Ltd. has adopted the
total quality management approach. Its systems conform to ISO Standards viz ISO 9001, ISO
14001 and OHSAS 18000.
The pipes are engraved with ISI Mark and Trade Mark ‘Jindal’ with the device
of the map of India in oval shape and word ‘HISSAR’ underneath, which has become
synonymous with high quality Steel Pipes. Each Pipe/Tube manufactured by Jindal Industries
Limited is a testimony to our commitment to Quality and Service. Keeping in mind the
profile of the end users particularly house holders and farmers, Company has taken the onus
of ensuring quality better than the requirements, the pipes are normally manufactured to
closer tolerances and care is further taken enroute to exceed user’s expectations.
Key Management Person
Name Designation
Smt. Savitri Devi Jindal Chairperson
M.P. Jindal Director
Basu Dev Agarwal Director
R.C. Singal Exec. Director
Ashok Kumar Gupta C.E.O.
PRODUCT RANGE
1. Galvanized Pipe
• Maintenance free
Indian Standards:
1. Indian Standards: Specification IS: 1239 (Part-I) 1990 (Light, Medium &Heavy
Series) Black & galvanized, plain end screwed and socketed.
5. Indian Standards: Specification IS: 3589-1991 ERW Steel Tubes 150 mm to 400 mm
NB.
6. Indian Standards: Specification IS: 4270-1992 ERW Steel Tubes for water wells up to
300 mm NB.
Features:
• Designed and fabricated to any height and strength as per customers order
Industry Usage:
Features:
• Smooth wall and a minimum yield
strength of 35,000 psi
• Delivered with metal or composite caps at both ends for thread Production.
Industry Usage:
Oil and Gas Industry
Steel casing pipes and tubing are applied to furnishing and installing cased tunnels, where
they indicate to pass other utilities or obstructions without open excavation. Steel casing
pipes and tube have smooth wall and minimum yield strength of 35,000 psi. Casing pipes are
used for casing for oil and gas wells. Corrosion-proofing water-based paint is applied on the
outside pipe surface to protect against atmospheric corrosion during transportation and
storage. The pipes can be delivered with metal or composite caps at both ends for thread
protection.
Pipes are heat-treated in a computerized walking beam furnace. Steel grades and heat
treatment regimes applied allow high-strength pipe to be obtained. Casing pipes are
manufactured out of steel are smelted in the electric furnace, treated with synthetic slags and
cast by continuous casters.
The applied steel making process ensures the achievement of chemically pure steel with
reference to sulphur and phosphor contents providing high tensile, ductility and corrosion
resistance properties of pipes to be operated at low temperatures in various corrosion media.
SPECIFICATIONS OF THE PRODUCT
GALVANIZED AND BLACK PIPES FOR WATER, GAS AND AIR CONFORMING TO
IS-1239(PART-1) 2004/BS-1387/IS-1161 (STRUCTURAL TUBES)
100 Light 113.45 3.60 9 9.75 103 10.00 100 124.00 87.00
Medium 114.05 4.50 7 12.20 82 12.50 80
Heavy 114.05 5.40 5 12.50 69 14.80 68
Slit Preparation
• HR Coils are slitted to predetermined widths for each size of pipe and thickness.
Slitted coil is uncoiled at the entry of ERW mill and the ends are sheared and welded
one after another to make it single endless strip.
Forming
• Slitted coils are initially formed into U shape and then into a cylindrical shape with
open edges using a series of forming rolls.
Welding
• The open edges are heated to the required temperature through high frequency low
voltage high current and press welded by forge rolls making perfect and strong butt
weld without filler materials.
Debeading
• Weld flash on top and inside (if needed) is trimmed out through carbide tools.
Seam Annealing
• Whenever required, welding portion and heat affected zone is put to normalizing with
medium frequency normaliser and then cooled down in air cooling bed.
Sizing and cutting
• After water quenching, slight reduction is applied to pipes with sizing rolls
to give them desired accurate outside diameter. Pipes are cut to required lengths by
flying cut off disc/saw cutter.
• All the processes are continuous with auto arrangements. These plain ended tubes go
for further processing as per the customer need like galvanizing, threading, black
varnishing etc.
Packing
• Finished pipes are bundled in desired number of pieces as per customer's requirement
and packed properly to ensure freshness till delivery.
• Packing system for Hexagonal Packing and Rectangular packing are being installed
1. MECHANICAL TESTING
TENSILE STRENGTH
YIELD STRESS
ELONGATION %
2. HYDRO TESTING
A hydro test is the common way in which leaks can be found in pressure vessels such
as pipe and plumbing. Using this test helps maintain safety standards and durability
of a tube over time. Newly manufactured pieces are initially qualified using the
hydrostatic test and continually re-qualified at regular intervals using the proof
pressure test which is also called the modified hydrostatic test.
Galvanizing Plant
• TESTS Specified Requirement
MASS OF ZINC COATING 360 G/M2 (MIN)
Manufacturing Process
Applications
• Street lighting
• Highway
• Dock and water Fronts
• Offshore Platform
• Corrosive Area
• Chemical Plants
• Jetties
• Real Estate
Types of Poles
Swaged Type Steel Tubular Poles
Octagonal Poles
Tapered Poles
Prices of Poles
Swaged Type Tubular Poles Rs.37000/tones
Octagonal Poles Rs.45000/tones
Tapered Poles Rs.48000/tones
As we can see that swaged type tubular poles are cheaper than Octagonal Poles and Tapered
poles in terms price. So consumer mostly prefer Swaged type tubular poles.
How Reserve have Grown
(Rs. in crore)
29 360. 550 70
SALES 9.92 50 .55 8.11 830.18 850.00
11. 32 4
EBITD 8.00 25 .49 0.97 65.68
EBITD in % 2.67 3.12 5.90 5.79 7.91
3. 5
Interest 2.56 37 .18 6.62 7.28
0. 1
Depreciation 0.95 90 .07 1.20 1.50 1.70
Past Trends
(a)
(b)
(c)
Production Capabilities
• 8 Running Mills
• 4 Galvanizing Plants
– Running 3 at a time
• Threading machines
2. Power Projects
3. Construction Industries
6. Overseas Customers
7. Structural’s
This would be done by finding out the consumer preferences and factors that influence a
customer decision to purchase a particular type of pole.
PEST ANALYSIS
The following analysis gives an overview of the environment in which the Steel pipe industry is
operating. We have analyzed the Political, Economic, Sociocultural and Technological environment
for the industry.
Political Environment
Finished Product
a.Steel pipe below 2000tonnes/month capacity are on negative import list in order to
protect the domestic industry. Customers of below 2000tonnes/month segment are
very price sensitive so when foreign players enter the market, they would be offering
the same product at a competitive price which in turn would affect the domestic
players. Therefore the threat from imports in the Steel pipe segment is minimal due to
quantitative restrictions and high duties.
Economic Environment
With the sustained growth in the GDP of approximately 6-7% in the last few years there has
been a high rate of growth in the infrastructure sector in the country. This has led to the higher
demand in the market. India’s rapid economic growth is built on a frame of steel. A soaring
demand by sectors like infrastructure, real estate, and automobiles at home and abroad, has put
India’s steel industry on the world map. By which the demand of tubular poles has increased.
Availability of Finance
Consumer finance has picked up substantially in India though the interest charged on loans lies
in the range of 6%to15%. Consumers are no more averse to the concept of buying now and
paying later. Consumer financing schemes account for 30% of the sales in 1995-96 on whole
India basis, while in the South it accounts for 40% of the sales. The availability of consumer
credit has also increased over the last few years and this gives a boost to the industry as the
demand increases.
Sociocultural Environment
Technological Environment
• Introduction of technology like octagonal poles which are stronger and having better life
than ordinary poles which have increased the competition.
• Introduction of lethal chemicals in manufacturing of steel pipes led to increase in sales as
it strengthen the strength of Pipes.
Research Plan/Methodology
The sample size consisted of many electrical contractors in Delhi and end customers visiting. I
went on various construction sites to meet contractor and customers for their feedback.
For Comparative study of tubular poles in terms of consumer preference Direct Interviews with
customers and also Direct Interviews with buyers visiting at dealers were carried out. Apart from
this, they were required to fill a questionnaire and thus consumer’s perspective about the tubular
poles were identified.
Sample Size:
Total sample size was taken 50. Many of responses were not considered due to biasness or
probable chance of occurring standard error.
Sampling Plan
Target Population: Our target population includes electrical contractors, end users of
tubular poles. We will access our target population specifically from the
manufactures to get information about the market scenario of tubular poles.
Sampling Frame:
Secondary Data: The elements of the target population are identified from the sources such
as, Jindal Hissar customer’s database, dealers list and websites.
Primary Data: The primary data was initially collected from more than 50 responses in
various locations in the Delhi and NCR region during the course of our exploratory research. We
have an interview session with some of the manufactures and electrical contractors of tubular
poles. Then I get the information about the various types of tubular poles and market scenario.
Finally, a questionnaire is designed to be filled by the target size.
Sampling Technique:
The method of sampling without replacement was applicable because we had to obtain views of
each dealer separately and hence cannot be selected again.
Direct Interviews with Electrical contractors and end user were carried out. Apart from this, they
were required to fill a questionnaire and thus consumer’s perspectives about the tubular poles
were identified.
For Pre-testing the questionnaires we conducted a pilot study taking a sample of 30.This was
done to check the content and wording of questionnaire. Also the sequence and layout of
questionnaire was judged. From this test we conclude that questionnaire is drafted precisely and
doesn’t require aby corrections into it.
All the questions were on nominal scale and ratio scale which were used only to codify different
elements in the question. According to our objectives in few questions we used non-
comparatives scales like likert scaling.
DATA VIEW
FINDINGS
1. Test Applied to know consumer awareness
Preference
N Valid 46
Missing 0
Preference
Mean Frequenc Percent
2.6087 Valid
Median y Percent Cumulative Percent
2.0000
Valid 1.00 18 39.1 39.1 39.1
Mode 2.00 16 34.8 1.00 34.8 73.9
Std. Deviation
5.00 6 2.03828
13.0 13.0 87.0
6.00 2 4.3 4.3 91.3
7.00 4 8.7 8.7 100.0
2. Consciousness
N Valid 46
Missing 0
Mean 1.3478
Median 1.0000
Mode 1.00
Std. Deviation .48154
Conscious
3. Brand Preference
Valid 46
Missing 0
Mean 2.1739
Median 2.0000
Mode 3.00
Std. Deviation .79734
Brand preference
Frequenc Percent Valid Cumulative
y Percent Percent
Valid 1.00 11 23.9 23.9 23.9
Analysis
As per the response, 41% of the respondents use local tubular poles, 24% of the respondents use
Jindal Hissar Swaged type tubular poles, while 35% of the respondents use bajaj electrical ltd.
Octagonal poles because they have a kind of monopoly in octagonal pole market and the quality
of octagonal poles are very good. People prefer Jindal Hissar 24% because of the reason
• Contractors have very less knowledge about Jindal Hisar Swaged type tubular poles,
Because this is a new product from Jindal Industries Ltd as they have launched it only a
year back. They know Jindal Hissar only for Jindal Hissar Pipes.
• Sale of Tubular poles is mainly based on marketing, but Jindal Hissar has very less
management person for concentrating on tubular poles because they have a huge demand
for pipes.
• Local manufactures can manufacture the poles as per the requirement of manufacture and
provide the poles in the less quantity also, but Jindal hissar has some specific
specifications and don’t give poles in the small quantity.
• The cost of plant for manufacturing swaged type tubular poles is very less. So there are
many manufactures in the area. That’s why Local poles are more demanded.
• Jindal Hissar Poles are good in Quality, but they are high in price. But local poles
manufacture poles from the scrap pipes. So their poles are cheaper in price.
Bajaj Electricals Ltd. Has got 35% because they manufactures Octagonal Poles in which they
are specialist. For the interviews, I find that Octagonal Poles are now a days more popular
because of the reason:
• Octagonal Poles are majorly used by the Government for the lightimg purposes on the
roads and highways. For this, they require high length Poles which has more life and less
maintainance. Octagonal Poles are suitable for this. Although, they are high in price.
• Swaged type poles are manufacture with the welding of 2 or more pipes. They are
chances that welding will break down after sometimes because of the rain and corrorion.
• In octagonal poles, G.P, sheets are used. Which have a long life and this is light weight
and have better quality. While for the swaged type tubular poles Mild steel pipes are used
which have no Zinc coating.
• Ontagonal Poles are fancy and good looking as compare to others type of poles.
• Swaged type of poles are fitted 2-3 feet down the earth. So for setting the pole,
Contractor has to first set up the pole and then make the road. But on the other hand
octagonal poles are set up on the foundation which can be made with the road and after
this pole can be set up.
• The octagonal poles are stronger than swaged and other type of poles and also the life is
more than the other type of poles.
4. Preference Rank
Statistics
Cumulative
Frequency Percent Valid Percent Percent
Valid 3.00
18 39.1 39.1 39.1
4.00
28 60.9 60.9 100.0
Total
46 100.0 100.0
Cumulative
Frequency Percent Valid Percent Percent
Valid 2.00 11 23.9 23.9 23.9
Analysis
As per the response, Contractors has ranked the swaged type tubular poles as the No. 1
pole, octagonal no.2 and tapered as the 3rd. This shows that swaged type poles are still in
great demand rather than the other type of poles because of its feature.
Factor Analysis
To obtain the reduced number of factor by applying principal component analysis of
extraction and varimax rotation we get the output. The main objective of following the
extraction process is to identify the main factors from the existing set of data (i.e. cost, life,
strength, installation, design and size).
Communalities
Initial Extraction
% of % of % of
Comp Varianc Cumula Varianc Cumula Varianc Cumula
onent Total e tive % Total e tive % Total e tive %
Looking at total variance explained table. Under the cumulative percentage column. We find that
two factors extracted out of six factors. Accounts for 62.333% of total variance.
Hence 6 factors which were accounted for 100% variance now gets reduced to 2 factors and
reduced variance of 62.333%.
Looking at rotated component matrix we see that loading of Eigen value of all the 6 factors on 2
extracted factors.
Component
1 2
Looking at each component we find low and negative Eigen value to be eliminated or we don’t
consider such values.
Factor 1: “Durability”
Factor 2: “Size”
As per the Rotated Component Matrix the other Eigen values are not considered in factor
because either they are less than .800 or in negative state. So, it’s not feasible to interpret
such factors.
CONCLUSION
As per our Primary Research and Analysis, now I am in condition to make statement to simplify
our objectives of the study through the data, facts and finding gathered from various sources.
We can conclude that customers prefer swaged types than the other type of tubular poles,
because the customers are cost conscious.
Consumer’s have very less knowledge that Jindal Hissar manufactures tubular poles, they
know Jindal Industries Limited only for Pipes, because this is a new product from Jindal
Hissar.
Company has no management person for the marketing of tubular pole, but this requires
marketing.
• Jindal Hissar need to improve its marketing strategy as poles market is basically based on
marketing of the poles and with the networking.
• Very less amount of people know that Jindal Hisar manufactures the tubular poles. They
only know Jindal Hisar for the Pipes and tubes.
• Jindal Hissar is having a single plant located in Hissar, this single plant supply its
material in all parts of India. If a new could have been installed in southern part of India ,
which will supply material in south India, with a result reduces the demand pressure on
Hissar plant and able to supply more material in North India.
• Installing a plant in South India will also led to cost cutting, as more units will produce
cost per unit will decrease and also reduce transportation cost.
• Jindal Hissar can introduce a new range of poles considering the cost as a major factor.
• Jindal Hissar can also introduce a plant for Octagonal Poles as there is a great demand for
Octagonal poles and future is going for the octagonal poles because of the feature of this
pole which attract the consumer to purchase this kind of pole.
• Jindal Hissar is financially sound company, but installing a plant require huge amount to
be invested, they may go for IPO, this will also help to market their product globally as
Jindal Industries Ltd. Is not a listed company.
• Durability and size has emerged as the main factors. So for product design they should
keep this factor in the mind.
• Reserves have grown tremendously over past few years, they must look for to invest it
either in new plant otherwise can be invested in sister concern companies.
• “A good Product requires a good marketing”. Similarly ACL Pipes and tubular poles
needs good marketing as many of respondent doesn’t know about it features and benefits.
RFEFERENCES
□ Octagonal poles
□ tapered poles
2·What are the factors that influence your decision to purchase a particular
type of pole?
□ Life
□ Cost
□ Strength
□ Installation
□ Size
□ If any other (please specify) ___________________
3· Please rank the following tubular poles from 1 to 4 with 4 representing the most
preferred and 1 representing the least preferred.
-Tapered poles__________________
□ Cost conscious
□ Quality conscious
□ Jindal Hissar
□ Bajaj
□ Local
________________________________________________________________________
________________________________________________________________________
7· Please rank the below mention factors from 1 to 5 as per your preference where 1 is most
preferred and 5 is least preferred?
-Cost ____________________________________________
-Life _____________________________________________
-Strength __ _______________________________________
-Installation _______________________________________
-Size _____________________________________________