MBA Marketing Project

A Project Report

SUBJECT Marketing Strategy for

Hindustan Dorr-Oliver Ltd. (HE/PV) Division

Prepared By:

HITESH MODI (Reg. No. : 510824056)

in partial fulfillment of the requirement for the award of the degree

Of

MBA – Marketing Management (2008-2009)

Center Code No. 1951, 3rd Floor, Shyam Shikhar, Bapunagar, Ahmedabad – 380024.

DECLARATION

I hereby declare that the project report entitled

Marketing Strategy for


Submitted in partial fulfillment of the requirements for the degree of

Master of business Administration

to Sikkim –Manipal University, India, is my original work and not

submitted for the award of any other degree, diploma, fellowship, or

any other similar title or prizes.

Modi Hitesh Navnitlal

Place: Ahmedabad

Date: 20/12/2009 Reg. No: 510824056

CERTIFICATE

The project report of

(Modi Hitesh Navnitlal)



Is approved and is acceptable in quality and form

---------------------- ----------------------

Internal Examiner External Examiner

Vikas Rajput Sandhya Harkawat

MBA MBA

CERTIFICATE

This is to certify that the project report entitled



Submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration of

Sikkim Manipal University of Health, Medical and technological sciences

(Modi Hitesh Navnitlal)

has worked under my supervision and guidance and that no part of

this report has been submitted for the award of any other degree,

Diploma, Fellowship or other similar title or prizes and that the work

has not been published in my journal of Magazine.

(Reg. No. 510824056) Certified by

Milap Shah

( MBA )

Acknowledgement

I would like to acknowledge and extend my gratitude to the following

persons who have made the completion of this project possible:

First of all, I would like to thank my Project Guide Mr. Milap Shah for

his great help. As he is being my Project Coordinator he provided me very

necessary and important guidance and support until the submission of my

project.

I would also like to thank Mr. Saket Bhatt (General Manager) of

Hindustan Dorr-Oliver Ltd. (HDOL), to provide me such a very exiting

opportunity and for their good help to provide a better coordination and

control among all the activities related to completion of the project.

Lastly, I would like to be very thankful to the whole HDOL Family for

their continuous effort in making the whole Project Activity very much

learning and Interesting.

I delivered my special thanks to my family members and friends for their

constant support during the project.

(Hitesh Modi)

Sikkim Manipal University

Executive Summary

Primary objective of this study is to understand business prospectus of

Process Plant Equipment (includes heat exchangers & pressure vessels)

division of Capital Goods Industry. HDOL is chosen based on its excellent

capability to grow in such a competitive world and this business unit adds a

steady stream of revenues to the business model through sustained demand

from various industries like Water, Pulp and Paper, Fertilizers etc where

HDOL is already present. This study shows that how to encash business

opportunities by market research, appropriate product mix and new product

developments.

Developing niche products using the latest technology and supplying to new

industry verticals is an integral part of growth strategy. HDOL is working

towards gaining a strong foothold in catering to the Nuclear Energy, Oil &

Gas and Power sectors.

The Indian Capital Goods Industry has been witnessing a turnaround after a

prolonged period of recession. Capital goods manufacturers have been

experiencing excellent growth both in the top and bottom line. Their order

books are in a very healthy state which indicates the beginnings of an

investment cycle in India. This observation is also borne out by the upward

trend seen in the BSE Capital Goods Index. The capital goods industry

needs to now strategize its future in order to maintain this momentum.

The objectives of the study were to focus on the national as well as

international competitiveness of these sectors in terms of benchmarking of

costs, measuring cost effectiveness, productivity, marketing strategies,

manpower development and R&D apart from looking at technology gaps and

tariff protection required.

In today‟s scenario, just looking inward is no longer enough for survival. A

presence in the export markets as a diversification strategy has become a

must. The study has therefore looked at overseas business opportunities and

tried to identify potential countries and projects.

Competitive strategy involves positioning a business to maximize the value of

the capabilities that distinguish it from its competitors. It follows that a

central aspect of strategy formulation is perceptive competitor analysis.

HDOL has adopted three prolonged approach in its quest to remain a top

player in the global process plant equipment market. The initiatives centre on

capacity augmentation, capability build up and enhancing the product

portfolio through advanced technologies.

This study reveals that the whole industry‟s growth will be increased due to

investments in sectors like Oil & Gas, Petrochemicals, Power etc. and the

companies are performing well due the fact of increased technological

innovation and quality of the units. The stock price also got affected by the

same making the Capital Goods sector favourable for the investors.

Table of Contents

1 Introduction 1

1.1 Definition 2

1.2 Purpose of Strategy 3

1.3 Factors Influencing Marketing Strategy 4

1.4 Marketing Strategies And Target Customers 4

1.5 Types of Marketing Strategies 5

2 Organization Profile 8

2.1 About Hindustan Dorr-Oliver Ltd. 9

2.2 Business Divisions 11

2.3 Business Performance Translating Into Numbers 12

3 Portfolio of Products 13

3.1 Product Range 14

3.2 Pressure Vessels 15

3.3 Heat Exchangers 17

3.4 General Details 20

3.5 Manufacturing Process 22

4 Organizations as Buyer 25

4.1 Organization‟s Buying Center or Decision making unit 26

4.2 Organization‟s Buying Situations & Process 27

4.3 Organizational Factors 28

5 Literature Review 29

6 Research Methodology 35

7 Analysis and Interpretation for Hypothesis-1 (H1) 40

7.1 Analysis 41

7.1.1 Oil & Gas Sector 41

7.1.2 Petrochemicals Sector 47

7.1.3 Fertilizers Sector 50

7.1.4 Power Sector 52

Table of Contents

7.1.5 Sector wise Area of Interest 53

7.1.6 Business Sector wise contribution for order

booking during 2008-2009 54

7.2 Interpretation 55


8.1 Analysis 57

8.1.1 Design & Engineering Capability 57

8.1.2 Key Facilities Installed in Workshop 58

8.1.3 SWOT Analysis 61

8.1.4 Assessment of Competition 62

8.1.5 Workshop facility comparision 64

8.1.6 Few Equipment manufactured by LEVEL-1 65



9.1 Analysis 69


10 Recommendations & Conclusions 73

10.1 Major Findings & Conclusion 74

10.2 Road Map to Rs. 500 Crores 75

10.2.1 Marketing Strategy for year 2010-11 80



10.3 Limitations of the study 85

Bibliography 87

1

Chapter - 1

INTRODUCTION

2

1.1 Definition

The term „strategy‟ is drawn from the armed forces. It is a strategic plan that

interlocks all aspects of the corporate mission designed to overpower the

enemy or the competitor. An appropriate strategy is considered to be

essential to face adverse situations such as cut-throat competition.

Strategy may imply general or specific programmes of action outlining how

the resources are deployed to attain goals in a given set of conditions. If

these conditions change, the strategy also changes. Strategies give direction

for the achievement of objectives necessary through the deployment of

resources.

The American Marketing Association defines marketing as "the process of

planning and executing the conception, pricing, promotion, and distribution

of ideas, goods, and services to create exchanges that satisfy individual and

organizational objectives." Marketers use an assortment of strategies to

guide how, when, and where product information is presented to consumers.

Their goal is to persuade consumers to buy a particular brand or product.

A marketing strategy is a plan or an approach for marketing your products

and services. Successful marketing strategies create a desire for a product. A

marketer, therefore, needs to understand consumer likes and dislikes. In

addition, marketers must know what information will convince consumers to

buy their product, and whom consumers perceive as a credible source of

information. Some marketing strategies use fictional characters, celebrities,

or experts (such as doctors) to sell products, while other strategies use

specific statements or "health claims" that state the benefits of using a

particular product or eating a particular food.

3

1.2 Purpose of Strategy

A strategy is an operational tool to achieve the goals, and thus, the corporate

mission. Strategies do not attempt to outline exactly how the enterprise is to

accomplish its objectives. A company may view downsizing as a strategy in a

competitive market to render cost-effective services. Thus, strategy provides

a framework to guide thinking and action. Strategies are very much useful in

organizations for guiding, planning and control.

Strategy is a way of life both at the macro as well as micro levels for

everyone, whether it is a nation or a company. To win over in a given

complex situation, the organizations, even trans-nationals adopt strategies.

They make changes, if necessary, even to their global strategies. An

individual company may formulate its own strategy to bring out the desired

results. The eventual success of the organization depends upon strategy

formulation and implementation.

The recently initiated moves such as globalization, privatization and

liberalization are strategies to attain a globally competitive economy.

Some marketing strategies are created for the purpose of capturing a certain

segment of the market, but the majority of small business strategies are

more generic in nature. Even so, it's important to understand what your

strategy is trying to achieve.

4

1.3 FACTORS INFLUENCING MARKETING STRATEGY:

1.4 MARKETING STRATEGIES AND TARGET

CUSTOMERS:

The results of analyzing market segments lead the marketer to consider one

of the following target marketing strategies.

Undifferentiated or Mass Marketing – Under this strategy the marketer

attempts to appeal to one large market with a single marketing strategy.

While this approach offers advantages in terms of lowering development

and production costs, since only one product is marketed, there are few

markets in which all customers seek the same benefits. While this

approach was very popular in the early days of marketing (e.g., Ford

Model-T), few companies now view this as a feasible strategy.

5

Differentiated or Segmentation Marketing – Marketers choosing this

strategy try to appeal to multiple smaller markets with a unique

marketing strategy for each market. The underlying concept is that

bigger markets can be divided into many sub-markets and an

organization chooses different marketing strategies to reach each sub-

market it targets. Most large consumer products firms follow this strategy

as they offer multiple products (e.g., running shoes, basketball shoes)

within a larger product category (e.g., footwear).

Concentrated or Niche Marketing –This strategy combines mass and

segmentation marketing by using a single marketing strategy to appeal to

one or more very small markets. It is primarily used by smaller

marketers who have identified small sub-segments of a larger segment

that are not served well by larger firms that follow a segmentation

marketing approach. In these situations a smaller company can do quite

well marketing a single product to a narrowly defined target market.

Customized or Micro-Marketing - This newest target marketing strategy

attempts to appeal to targeted customers with individualized marketing

programs. For micro-marketing segmentation to be effective the

marketer must, to some degree, allow customers to “build-their-own”

products. This approach requires extensive technical capability for

marketers to reach individual customers and allow customers to interact

with the marketer. The Internet has been the catalyst for this target

marketing strategy. As more companies learn to utilize the Internet

micro-marketing is expected to flourish.

6

1.5 TYPES OF MARKETING STRATEGIES:

Marketing strategies may differ depending on the unique situation of the

individual business. However there are a number of ways of categorizing

some generic strategies. A brief description of the most common categorizing

schemes is presented below:

Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.

Typically there are three types of market dominance strategies:

o Leader

o Challenger

o Follower

Porter generic strategies - strategy on the dimensions of strategic

scope and strategic strength. Strategic scope refers to the market

penetration while strategic strength refers to the firm‟s sustainable

competitive advantage.

o Product differentiation

o Market segmentation

Innovation strategies - This deals with the firm's rate of the new

product development and business model innovation. It asks whether

the company is on the cutting edge of technology and business

innovation. There are three types: Pioneers

o Close followers

o Late followers

http://en.wikipedia.org/wiki/Market_dominance

http://en.wikipedia.org/wiki/Porter_generic_strategies

7

Growth strategies - In this scheme we ask the question, “How should

the firm grow?” There are a number of different ways of answering

that question, but the most common gives four answers:

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

8

Chapter - 2

ORGANISATIONALPROFILE

9

2.1 About Hindustan Dorr-Oliver Ltd. (HDOL)

Hindustan Dorr Oliver Limited (HDO) is an Indian EPC (Engineering

Procurement Construction) company having its core business activities in

providing Engineered Solutions, technologies and EPC installations in Liquid-

Solid Separation applications.

Hindustan Dorr-Oliver Limited has a new face. HDO is now a wholly owned

subsidiary of M/s. IVRCL Infrastructures and Projects Ltd., who are one of the

leaders in Indian infrastructure industry, having core business focus on total

Water Management including pumping, conveyance, treatment and

distribution, national highways, roads, buildings, hydro-electric projects,

power distribution, desalination, etc. IVRCL is also executing many projects

on BOOT basis for various Government Departments of India.

HDO has over decades established a unique track record and position as an

extremely dynamic, totally reliable and component-engineering company,

having a cutting edge of superior technologies to emerge among leading

process equipment and plant engineering companies in India.

Today, with every conceivable engineering skill at its disposal, HDO is

engaged in an endless endeavour to upgrade, modify, adapt and invent

products, processes and technologies to design, construct, install, erect and

commission systems on complete EPC basis.

Corporate Vision & Mission :

Vision :

Our aspiration is to become a leading creator of Shareholder Value in the

Engineering Industry.

10

To achieve this, we will use the ENERGY of our people, develop and

implement LEADING EDGE technologies and draw on both to

deliver EFFECTIVE world-class solutions to our customers.

Mission :

To consistently out perform expectations and deliver superior value to both

our Customers and Stakeholders.

To achieve this, we will ENERGISE our people with a positive culture that

rewards INNOVATION, breeds INITIATIVE and encourages INTELLIGENT risk

taking.

Network across the country :

Head Office : Mumbai

Manufacturing Facility : Ahmedabad

Branch Offices :

o Delhi

o Chennai

o Kolkata

o Local site offices wherever projects are under execution

HDO Technologies Ltd. (subsidiary of HDOL), Bangaluru & Hyderabad

Key Facts :

Founded : 1974

Numbers of Employee : 1200

Revenue : Rs. 520.28 Crores

Headquarter : Mumbai, India

11

2.2 Business Divisions :

EPC Manufacturing KPO

Diversification Hydrocarbon Sector Addition of Industry

Verticals

End to End skill sets

Opportunity Bulk Material

Handling,

Pelletisation Plants,

Coal Washeries, Oil &

Gas, Power

Develop Niche

Products

Tap the Global &

Domestic demand

Expansion New Industries &

Processes

Capacity Expansion &

Product Portfolio

Delivery Centres and

client additions

Sustainable Growth Established Brand

Equipment & Client

Relationship

Proprietary

Equipment &

Replacement Demand

In house

requirements & Low

cost – High Quality

Proposition

Business Divisions

Engineering,

Procurement &

Construction (EPC)

Manufacturing Knowledge Process

Outsourcing (KPO)

Mineral Processing &

Beneficiation

Environment

Fertilizers & Chemicals

Pulp & Paper

Heat Exchangers &

Pressure Vessels

Proprietary Equipments

Design & Engineering

Outsourcing

12

2.4 Business Performance Translating Into Numbers

Five Years at Glance – Operating Results 2005-2009#

86.78

143.87

213.59

308.63

520.28

0

100

200

300

400

500

600

Rs.

in C

ro

res

2005 2006 2007 2008 2009

Years

NET INCOME

28

5247

85

0

10

20

30

40

50

60

70

80

90

Rs.

in C

ro

res

2005 2006 2007 2008

Years

HDOL Manufacturing Business Turnover in Crores

13

Chapter - 3

PORTFOLIO OF PRDUCT

14

3.1 Product Range :

Heat Exchangers & Pressure Vessels Division :

• Pressure Vessels

Tanks, Spheres, Reactors, Columns, Storage Tanks

• Heat Exchangers

Proprietary Equipment :

• Horizontal Pan Filters

• Screw Classifiers / Rake Classifiers / Clarifiers/ Clarifloculators

• Kelly Filters

• Red Mud Component Filters

• Precoat Drum Filters

• Rotary vacuum Drum Filters

• Brown Stock Washers

• Bleach Washers

• Digester System for Pulp and Paper Plants

• Drier, Cooler, Granulator and Pulverizer for NPK and DAP Fertilizer

plants

Our area of interest will be Pressure Vessels and Heat Exchangers

(Process Plant Equipment) of Capital Goods Sector. This project is

limited to Pressure Vessels & Heat Exchangers only.

15

3.2 Pressure Vessels :

Vessels, tanks, and pipelines that carry, store, or receive fluids are called

pressure vessels. A pressure vessel is defined as a container with a pressure

differential between inside and outside. The inside pressure is usually higher

than the outside, except for some isolated situations. The fluid inside the

vessel may undergo a change in state as in the case of steam boilers, or may

combine with other reagents as in the case of a chemical reactor.

Pressure vessels often have a combination of high pressures together with

high temperatures, and in some cases flammable fluids or highly radioactive

materials. Because of such hazards it is imperative that the design be such

that no leakage can occur. In addition these vessels have to be designed

carefully to cope with the operating temperature and pressure. It should be

borne in mind that the rupture of a pressure vessel has a potential to cause

extensive physical injury and property damage. Plant safety and integrity are

of fundamental concern in pressure vessel design.

Pressure vessels are used in a number of industries; for example, the power

generation industry for fossil and nuclear power, the petrochemical industry

for storing and processing crude petroleum oil in tank farms as well as

storing gasoline in service stations, and the chemical industry (in chemical

reactors) to name but a few. Their use has expanded throughout the world.

Pressure vessels and tanks are, in fact, essential to the chemical, petroleum,

petrochemical and nuclear industries. It is in this class of equipment that the

reactions, separations, and storage of raw materials occur. Generally

speaking, pressurized equipment is required for a wide range of industrial

plant for storage and manufacturing purposes.

16

Major Pressure Vessels supplied by HDOL to various customers :

Client : Bharat Oman Refineries Ltd., Bina, MP Equipment : HP Air Receiver Size : 4.5 m Dia. x 17.8 m Lg. Weight : 140 MT

Client : ONGC, Hazira, Gujarat Equipment : LPG Drier Size : 3 m Dia. x 12.5 m Lg. Weight : 111 MT

Client : Hindustan Petroleum Ltd., Mumbai Equipment : Air Surge Drum Size : 5.25 m Dia. x 15 m Lg. Weight : 90 MT

Client : Bharat Oman Refineries Ltd., Bina, MP Equipment : Flare KO Drum Size : 5 m Dia. x 17.4 m Lg. Weight : 51.5 MT

17

3.3 Heat Exchangers :

Heat exchangers transfer heat from a hot fluid to a colder fluid through the

combined mechanisms of conduction and forced convection. In most heat

exchangers, a metal wall separates the two fluids. All heat exchangers are

similar in their principle of operation; however, heat exchangers may differ in

the specific fluids that are used in the heat transfer process, the layout of the

metal tubes, and the configuration of the enclosure.

Main types of heat exchangers :

• Shell-and-tube heat exchangers

• Air-cooled heat exchangers

• Double-pipe heat exchangers

• Plate-and-frame heat exchangers

Client : Hindalco Industries Ltd., Renukoot, UP Equipment : Pressure Decanter Size : 6.5 m Dia. x 20 m Lg. Weight : 160 MT Fabricated at site

18

At present HDOL manufactures, Shell and Tube heat exchangers only.

However, HDOL opt for new products viz. Air cooled heat exchangers and

Plate & Frame heat exchangers.

In shell-and-tube heat exchangers, one fluid, known as the "tube side" fluid,

flows inside a set of parallel tubes known as the "tube bundle." These tubes

are enclosed within a metal shell. The other fluid, known as the "shell side"

fluid, flows inside the shell but over the outside of the tubes. Both the metal

shell and the tubes are pressurized, and they must withstand the specified

design pressures during the intended lifetime of the equipment.

Basic arrangement of a shell-

and-tube heat exchanger

19

Major Heat Exchangers supplied by HDOL to various customers :

Client : Alaqua Inc, USA

Item : Evaporator

Weight : 32 MT

Client : Rashtriya Chemicals & Fertilizers Ltd.

Item : TAIL Gas Preheater

Weight : 25 MT

Client : Reliance Industries Ltd., Jamnagar

Item : Tube Bundle

Weight : 36 MT

Client : Numaligarh Refinery Ltd., Assam

Item : Trim Cooler

Weight : 54 MT

Client : Indian Oil Corporation Ltd., Panipat

Item : LVGO Crude Exchanger

Weight : 29.5 MT

20

3.4 General Details :

MAJOR PRESSURE VESSEL PARTS :

Shell, Heads, Saddle/Skirt/Leg/Bracket Support, Process Connections,

Internals etc.

MAJOR HEAT EXCHANGER PARTS :

Shell, Heads, Tubes, Tubesheets, Std. & Non Std. Forgings, Cover,

Baffles, Saddle/Skirt/Bracket Support, Process Connections etc.

MAJOR RAW MATERIAL FORMS :

Plates, Std. & Non Std. Forgings, Pipes, Fittings, Fastners, Gaskets etc.

MAJOR RAW MATERIAL :

Carbon Steel, Stainless Steel, Low Alloy Steel, Non-Ferrous Material

(Ni based alloys, Cu-Ni, Brass, Inconel, Incoloy etc.), Special Metals

like Titanium, Zirconium etc.

CRITICAL PARAMETERS :

Orientation : Horizontal / Vertical Depend on application

Design & Operating Conditions Depend on application, Various Loads

applicable on equipment

Material Selection Depend on service, design conditions,

life expected, Cost

Size Depend on application, Location &

Space, transportability, Cost

Strength Calculations Depend on material, size, design

conditions

21

ACTUAL DIMENSIONS PERFORMED :

PRESSURE VESSELS / COLUMNS:

Diameter : 7100 mm

Height/Length : 36000 mm

Thickness : 92 mm

Weight : 160 MT

HEAT EXCHANGERS:

Tube sheet Thickness : 240 mm

Tube OD x Length : 38.1 mm x 12000 mm

Weight : 50 MT

PARAMETERS CONSIDERED FOR ORDER PLACEMENT BY CLIENTS :

Plate Bending Capacity For shell rolling

Weight Lifting Capacity For size (Dia. & Length) & Weight

Hydrotesting Facility For high pressure equipment

Welding Capability For different material

Drilling & Machining

Facility

For tubesheet drilling and

machining of other components

Workshop Layout To check suitability of

transportation & movement

Current Workload To ensure availability of spare

capacity for execution of order

Also, financial condition of the company is ensured for successful execution

of order.

22

3.5 Manufacturing Process :

1) Pre-Order Activities :

a. Enquiry Generation

i. Marketing Efforts

ii. Registration for various products

iii. Enlistment in Vendor List (Client & Project wise)

b. Enquiry Receipt

i. Tenders

ii. Online tender download from e-tendering web-sites

iii. Non-Tender type enquiries (through e-mails, courier)

c. Reviewing Tender Documents

d. Discussion with various departments for specific requirements, if

any

e. Enquiry for raw materials for competitive pricing

f. Tender/Offer Submission (through Post/Courier/E-mail/e-tendering)

g. Order Receipt – through Negotiation / L1 basis / Reverse Auction

2) Pre-Manufacturing Activities :

a. Receipt of Order

i. Contract Review w.r.t. pre-order commitments

ii. Issue of work order to various department with necessary

documents

iii. Kick off Meeting to discuss criticality of equipment, setting up

mile stone for various activities keeping in view of delivery

conditions as per order

b. Design and detail Engineering

i. Design and Detailed Fabrication Drawing preparation

ii. Preparation of technical delivery condition of raw material

iii. Submission of drawings to client/TP for approval and clearing

of drawing till final approval from client/TP

23

c. Planning

i. Preparation of PERT and Barchart

ii. Production Plan based on 3 months planning keeping in view

of delivery date and availability of raw material

iii. Preparation of Workload chart for each fabrication shop and

machineries

d. Production Engineering.

i. Design of Jigs and Fixture

ii. Method improvement

iii. Tooling

iv. Automation and mechanization of various production related

activities

e. Welding Engineering

i. Qualification of new procedures for the future material

ii. Qualification of welding procedure for the order

iii. Welder qualification

iv. Maintain Qualification record of welders

v. Training of welders for new processes

vi. Maintain record of all welding procedures

vii. Analysis of weld repairs and taking corrective action

f. Material Management (Procurement)

i. Procure material for manufacturing in a sequence as required

by Planning

ii. Control on inventory of raw material and components

iii. Procurement of plant and machinery

iv. Ensure that the material cost is within the estimate

24

v. Provide material prices to proposal engineering during

estimate

3) Manufacturing Activities :

a. Micro Planning

i. Planning activities for 2 weeks

ii. Check availability of raw material

iii. Planning for activities like X-ray, Rolling, Crane, Welding

Equipment

b. Production

i. Material Identification, Marking & Cutting

ii. Rolling

iii. Fit-up, Welding

iv. Radiography

v. Assembly

vi. Heat Treatment

vii. Sand/Shot Blasting and Painting

c. Quality Control

i. Preparation of welding and testing plan

ii. QAP

iii. Certify TDC for material to be procured

iv. Inspection of material as per TDC

v. Coordination with third party inspection

vi. Quality check for various manufacturing activities

d. Despatch

i. Route Survey and Transporter finalization

ii. Ensure pre-despatch requirement of customer

25

Chapter - 4

ORGANIZATIONS AS BUYER

26

4.1 ORGANIZATION’S BUYING CENTER OR DECISION

MAKING UNIT

Consists of all individuals and groups who participate in the purchasing

decision making process, who share some common goals and the risks

arising from the decisions.

Depending on the size and complexity of the organization/buying

situation, decision may be made by just one person or even by a group of

persons from several relevant departments.

THE BUYING CENTRE: ORGANIZATIONAL BUYING ROLES

Buyers (purchase &

contractual documentation)

Deciders (formal decision

making authority)

Approvers (top management –

approves decider’s choice)

Initiators (initiate purchase

idea)

Influencers (information &

evaluation criteria)

Users (use purchased

material / services)

Gatekeepers (control access)

27

ORGANIZATIONAL BUYING ROLES

Gatekeepers: Those who control access to other members in the buying

centre (e.g., receptionists & telephone operators)

Initiators: Those who initiate the idea of purchase; may or may not be a part

of the organization

Influencers: Those who directly or indirectly influence the purchase decision

by providing relevant information and suggesting relevant criteria for

evaluation of alternatives

Deciders: Those who are formally authorized to make the final choice from

among the available alternatives

Buyers: Those who are formally authorized and directly responsible for

making the purchase and contractual documentation with the supplier

Approvers: Those who approve the purchase proposals made by the

deciders/buyers (usually the top management)

Users: Those who actually use the purchased material and services

4.2 ORGANIZATION’S BUYING SITUATIONS &

PROCESS

BUYING SITUATIONS :

New product – requires complex decisions, high involvement and lot of time

Modified Rebuy - Changes in quantity, quality, price, time of supply – based

on needs

Straight Rebuy - Repurchase of items bought regularly – from selected

vendors

28

BUSINESS BUYING PROCESS :

6.3 ORGANIZATIONAL FACTORS

Problem Recognition

General Need Description

Product Specification

Supplier Search

Proposal Solicitation & Evaln

Supplier Selection

Order & Purchase

Performance Review

Need

Recognition

Info

Search/Evaln

Purchase

Post

Purchase

Purchasing-

Department

Upgrading

Cross-

Functional

Roles

Centralized

Purchasing

Decentralized

Purchasing

of Small

Items

Internet

Purchasing

Long-Term

Contracts

Purchasing-

Performance

Evaluation &

Pro. Buyers

Lean

Production

29

Chapter - 5

LITERATURE REVEIW

30

Opportunities in Oil & Gas (India Brand & Equity Foundation)

Growing energy demand of India and necessity to service that to ensure

economic growth is not compromised, presents business opportunities in the

complete value chain of oil and gas sector. Exploration for domestic

production growth, development of discovered fields, transportation of crude

oil, gas and products, refining to service the petroleum product domestic

demand and exports, retailing infrastructure; prospective blocks to

encourage all these sectors provide business and investment opportunities.

“Basic Statistics on Indian Petroleum & Natural Gas, 2008-09”

– Ministry of Petroleum & Natural Gas

The sales/consumption of petroleum products during 2008-09 were 133.400

million metric tonnes (including sales through private imports) which is

3.45% higher than the sales of 128.946 million metric tonnes during 2007-

08.

The total number of exploratory and development wells and metreage drilled

in onshore and offshore areas during 2008-09 was 381 and 888 thousand

metres respectively.

The total refinery crude throughput during 2008-09 at 160.77 million metric

tonnes is 2.99% higher than 156.10 million metric tonnes crude processed in

2007-08 and the prorate capacity utilisation in 2008-09 was 107.9% as

compared to 104.8% in 2007- 08.

The Oil and Gas Sector Overview in India – 2009 (KPMG)

India today boasts of surplus refining capacity, with further large expansions

planned. The major expansions are for the Vadinar refinery of Essar, the

Indian Oil Corp oration (IOC) refinery at Paradeep and the planned refineries

at Bina in Madhya Pradesh by BPCL and Bhatinda in Punjab by HPCL-Mittal

Energy.

31

India is aiming to emerge as a refining hub even as global refining markets

have tightened with the closure of small refineries in North America and

Europe mainly due to challenges in investing in cleaner fuels and high

compliance costs. In addition, permits for Greenfield refineries are hard to

obtain in these countries due to environmental concerns. Therefore, capacity

addition is primarily coming from emerging economies like India, China and

some Middle Eastern countries. The Government of India has been providing

tax incentives and fiscal incentives to new refineries.

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

(Department of Heavy Industries, Govt. of India)

The process plant equipment industry has evolved primarily on the basis of

the requirement to set up core process industries in India after

Independence. The demand today is also from these process industries being

set up but the size of the plants have increased and are at times comparable,

or larger than global capacities.

The industry caters to a wide variety of process industries like oil & gas,

petroleum refining, petrochemicals, chemicals, fertilizer, pharmaceuticals,

metal industry, cement, paper, sugar, cryogenics, distilleries etc.

Internationally the trend that is witnessed in the heavy engineering sector is

that of a shift in base from Europe to Japan to now Korea, Taiwan, East

European countries and China & India due to logistics and cost.

Today in India there are a few companies who have made a mark in the

export arena due to their manufacturing skills and quality. Today the

manufacturing facilities are equipped with modern machinery and are

producing very sophisticated equipment such as high pressure heat

32

exchangers, spiral heat exchangers, multiwall vessels, airfin coolers, multi-

tubular reactors etc.

The internationally renowned consultants in the process industries like Flour

Daniel, Bechtel, Foster Wheel, LG, Daelim, Jacobs, Kvaerner, Mitsui Babcock,

Linde, ABB Lummus, Technip, Jacobs, Stone & Webster, Udhe and Toyo

Engineering have offices in India. They are increasingly using the Indian

process plant manufacturers‟ expertise in engineering and manufacturing for

outsourcing since they are in the process of creating global vendor databases

for the purpose of expanding their low cost structure purchase options.

When asked what should be the company‟s strategy to enhance market

share, 47 percent said that they followed no strategy at all. Out of the

remaining 53 percent companies who have or followed a strategy to enhance

their market share, the majority felt that the top most priority in enhancing

market share was by achieving high quality and service. The second priority

they felt was aggressive marketing. Third was to reduce costs and lastly they

felt increasing the product range may help them to increase their market

share.

However, surprisingly it was noted that an aggressive marketing strategy

was followed only by 28 percent of the companies, 30 percent do not even

collect competitors‟ information and the balance 42 percent have a basic

understanding of marketing strategies and are aware of their competitors /

own competitive advantage.

Competitive pressures in the global manufacturing environment are forcing

manufacturing organizations to re-engineer in order to become more

competitive in the marketplace. Toward that end, management of these

organizations is paying closer attention to the changing nature of

33

manufacturing performance, and the systems, processes and measures used

in its evaluation.

Competitor Analysis (Adapted from Michael E. Porter, Competitive

Strategy, 1980, p. 49.)

In formulating business strategy, managers must consider the strategies of

the firm's competitors. While in highly fragmented commodity industries the

moves of any single competitor may be less important, in concentrated

industries competitor analysis becomes a vital part of strategic planning.

Competitor analysis has two primary activities, 1) obtaining information

about important competitors, and 2) using that information to predict

competitor behaviour. The goal of competitor analysis is to understand:

with which competitors to compete,

competitors' strategies and planned actions,

how competitors might react to a firm's actions,

how to influence competitor behavior to the firm's own advantage.

Casual knowledge about competitors usually is insufficient in competitor

analysis. Rather, competitors should be analyzed systematically; using

organized competitor intelligence-gathering to compile a wide array of

information so that well informed strategy decisions can be made.

Michael Porter presented a framework for analyzing competitors. This

framework is based on the following four key aspects of a competitor:

Competitor's objectives

Competitor's assumptions

Competitor's strategy

Competitor's capabilities

34

Objectives and assumptions are what drive the competitor, and strategy and

capabilities are what the competitor is doing or is capable of doing. These

components can be depicted as shown in the following diagram:

Competitor Analysis Components

What drives the competitor

What the competitor is doing or is capable of doing

Objectives

Strategy

Competitor Response Profile

Assumptions

Resources & Capabilities

Adapted from Michael E. Porter, Competitive Strategy, 1980, p. 49.

35

Chapter - 6

RESEARCH METHODOLOGY

36

This chapter describes the way in which the study is conducted in terms of

methods of data collection Analyzing, Interpreting and Reporting Results. It

also describes the motivation, scope and limitations of the study along with

the objective of the study.

6.1 Research motivation

India's economy is on the fulcrum of an ever-increasing growth curve. With

robust growth of the Indian economy, the demand for commodities has been

on the rise which has already enforced huge investment into various sectors

and has resulted into heightened activity in the domestic sectors like Oil &

Gas, Petrochemicals and Nuclear Power. In turn, Engineering Industry is also

showing continuous upward trend in growth for last couple of years by

catering the need of expansions and new projects of these sectors. This

clearly indicates that a study is required for an untouched manufacturing

sector of process plant equipments in India from global recession.

6.2 Problem Definition

How different business sector‟s growth affects Process Plant Equipment

manufactures growth. How this opportunity can be encased by correct

product mix, diversification, and new product development. What are the

areas of improvement to cater industry demand.

6.3 Research Objectives

The specific objectives of the research were:

1. To identify business opportunities in various business sectors for

process plant equipments

37

2. To understand organization buying behavior

3. Marketing Strategies to be adopted for heavy engineering company

4. Importance of detailed competitive analysis to develop future business

plan

5. Importance of Correct product mix and New Product Development in

process plant equipment industry

6.4 Scope of study

India is flooding with expansion of existing plants and development of new

projects in Oil & Gas, Petrochemicals, Power, Fertilizers, Metal etc. It is

importance to tap these opportunities by proper market research, identifying

area of interest, strengthening company‟s capabilities and developing

marketing strategy. Scope of Study is limited to Hindustan Dorr-Oliver Ltd.

6.5 Hypotheses

There are a set of hypothesis that has to be substantiated to bring justice to

research topic and they are:

H1: Oil and Gas Sector is having better business prospectus than other

business sectors with current workshop facility.

H2: HDOL cannot become LEVEL-1 Company with current workshop

facility.

H3: Heat Exchangers are better than Pressure Vessels in terms of

profitability.

38

6.6 Research Approach

Both qualitative to better define our research problem and get a deeper

insight into it and quantitative methods to produce data that can be

statistically analyzed and whose results can be expressed numerically were

used.

6.7 Type of research

Exploratory research is a type of research design that has its primary

objective the provision of insight and understanding of problem setting. The

nature of research is exploratory based on sample that provides insight

understanding and problem setting. It involves approaches such as informal

discussion with HDOL officials in the initial stage.

The research was also descriptive research i.e. to identify the cause of

something that is happening or something happened because of that cause.

The research will be a quantitative analytical research which will be

descriptive in nature.

6.8 Sampling Technique :

Broadly there are two methods of sampling were used:

Judgmental sampling is a form of convenience sampling in which the

population elements are selected based on the judgment of the researcher.

Here, we have selected four major business sectors like Oil & Gas,

Petrochemicals, Fertilizers and Power. Other business sectors are also

contributing in growth, but their contribution is very less, hence, not

covered.

39

The sampling technique used here is a non random sampling technique called

quota sampling i.e. the population is divided into subclasses and then picking

up the data non-randomly. In the present case, we have selected

Competitors as well as Business Sectors based on their revenue among the

groups. The company showing the highest revenue in their respective field is

taken.

6.9 Data Collection strategy

Both primary and secondary data was collected. In Primary data collection,

HDOL‟s status of enquiries, order booking, interview of HDOL official are

evaluated. The secondary data was gathered through books, journals,

articles, web-sites of Ministry of Petroleum, BSE, NSE and various companies

website of different business sectors.

6.10 Data Analysis Strategy :

The analysis of the available data will be based on the tools and techniques

used in financial management and statistics. Mainly MS Office Excel Package

would to use to carry out the hypothesis testing and descriptive statistics.

The analysis will include the performance of the sample companies for last

five years.

The analysis will include both technical and fundamental analysis, which

includes comparison of annual results of companies from different business

sectors for selection of companies. We have also done simple competitive

analysis of competitors.

40

Chapter - 7

Analysis & Interpretation for Hypothesis – 1 (H1)

41

Hypothesis – 1 :

H1: Oil and Gas Sector is having better business prospectus than

other business sectors with current workshop facility.

7.1 Analysis :

7.1.1 Oil & Gas Sector :

Growing energy demand of India and necessity to service that to ensure

economic growth is not compromised, presents business opportunities in the

complete value chain of oil and gas sector. Exploration for domestic

production growth, development of discovered fields, transportation of crude

oil, gas and products, refining to service the petroleum product domestic

demand and exports, retailing infrastructure; prospective blocks to

encourage all these sectors provide business and investment opportunities.

Indian companies are expanding refinery capacity and putting up green-field

refinery projects. Global oil majors are seriously evaluating investments in

India. Recently BP announced understanding for forming a joint venture with

HPCL (Hindustan Petroleum Corporation Ltd.) for a grassroots refinery. RIL

has also announced their interest in increasing refining capacity from 33

MMTPA to 50 MMTPA.

India has ambitions to become the hub for petroleum products exports.

Demand for petroleum products in the Asia Pacific region is estimated to be

42

around 25 to 27 million barrels per day (1.2-1.3 billion tonnes per year) in

the year 2010. However, the refining capacity in the Asia Pacific region is

expected to increase from the current 21.9 million barrels per day (1.09

billion tonnes per year) to a maximum of 25 million barrels per day in the

year 2010 (Source : Industry Sources). The export potential coupled with the

additional capacity additions and new refineries provide a unique opportunity

for potential investors. The opportunity exists in the form of investment in

capacity additions to the existing refineries and forming consortium with

private and NOCs to set up new refineries.

Institutional Arrangements

Upstream :

Exploration & Production

ONGC

Mangalore Refineries &

Petrochemicals (Refining)

ONGC Videsh Ltd.

(Overseas E&P)

Oil India Ltd.

Private E&P Players :

Cairn, RIL, NIKO, etc.

Downstream : Refining & Marketing

Hindustan Petroleum

(Refining & Marketing)

GGSR (Refining)

Indian Oil


IBP (Marketing)

Chennai Petro (Refining)

Bongaigaon Refinery (Refining)

Bharat Petroleum


Kochi Refinery (Refining)

Numaligarh Refinery (Refining)

GAIL

Gas Transport & Petrochemicals

Reliance Industries Ltd.


Industry Bodies / Others

Petroleum Planning &

Analysis Cell

Centre for High Technology

Petroleum Conservation

Research Association

Petro Fed

Oil Industry Safety Directorate

Petroleum India International

Engineers India Limited

Ministry of Petroleum & Natural Gas

43

Outlook for the Exploration & Production

Exploration activity, prior to NELP (The New Exploration Licensing Policy),

was dominated by public sector firms such as Oil and Natural Gas

Corporation Ltd. (ONGC) and Oil India Ltd. (OIL). The sector received a

major boost in 1974, when the massive Mumbai High fields were discovered

off India's west coast. Even after three decades, these fields continue to be

the mainstay of India's indigenous production. Realizing that these fields

would gradually deplete over time and no major discoveries were being

brought into production, the Government introduced the NELP, with an aim

of encouraging private sector participation in the oil and gas sector.

Recent rounds of NELP have proved attractive in gaining the interest of

Indian private sector and foreign players, with the private sector giant, RIL,

winning the maximum number of blocks after the state-owned ONGC. A

number of foreign players such as Cairn, BHP Billiton etc have also

participated in the bidding rounds, forming consortiums with domestic and

other foreign players. However, some of the super-majors, such as

ExxonMobil, Shell etc. continued to watch from the sidelines, rather than

mark their presence in the bidding rounds.

44

Unexplo red

, 40%

Explo rat io n

Init iated, 27%

P o o rly

Explo red

,

17%

M o derate to Well

Explo red, 16%

Exploration Status 1998-99 (3.14 million sq. km)

Source : DGH

Explo rat io n

Init iated, 44%

P o o rly

Explo red

,

21%

M o derate to Well

Explo red, 20%

Unexplo red

, 15%

Exploration Status 2006-07 (3.14 million sq. km)

Source : DGH

45

Outlook for the Refining Sector

India is aiming to emerge as a refining hub even as global refining markets

have tightened with the closure of small refineries in North America and

Europe mainly due to challenges in investing in cleaner fuels and high

compliance costs. In addition, permits for Greenfield refineries are hard to

obtain in these countries due to environmental concerns. Therefore, capacity

addition is primarily coming from emerging economies like India, China and

some Middle Eastern countries.

Installed Capacity of Refineries (As on January 1, 2009)

Sr. No. Refinery Location Capacity (MMT)

1 IOCL Digboi 0.65

2 Guwahati 1

3 Barauni 6

4 Koyali 13.7

5 Haldia 6

6 Mathura 8

7 Panipat 12

8 CPCL Chennai 9.5

9 Narimanam 1

10 BRPL Bongaigaon 2.35

11 HPCL Mumbai 5.5

12 Visakhapattanam 7.5

13 BPCL Mumbai 12

14 Kochi 7.5

15 NRL Numaligarh 3

16 ONGC Tatipaka 0.078

17 MRPL Mangalore 9.69

SUB TOTAL (PSU) 105.47

18 RIL Jamnagar 33

19 RPL Jamnagar 29

20 EOL Jamnagar 10.5

SUB TOTAL (PVT) 72.5

TOTAL REFINING CAPACITY 177.97

MMT : Million Metric Tonnes

Source : MoPNG - Ministry of Petroleum & Natural Gas

46

62.2

114.6127 127.4 132.5

149

177

235

0

50

100

150

200

250

1998 2001 2004 2005 2006 2007 2009 2012

(Forecast)

Refinery wise Capacity Addition during XI Plan – New Projects

Public Sector

Sr. No. Refinery MMTPA

1 Indian Oil Corporation Ltd., Haldia 1.5

2 Indian Oil Corporation Ltd., Panipat 3

3 Indian Oil Corporation Ltd., Paradip 15

4 Hindustan Petroleum Corporation Ltd., Mumbai 2.4

5 Hindustan Petroleum Corporation Ltd., Vizag 7.5

6 HPCL-Mittal Energy Ltd., Bhatinda 9

7 Bharat Oman Petroleum Ltd., Bina 6

8 Bharat Petroleum Corporation Ltd., Kochi 2

9 Chennai Petroleum Corporation Ltd., Chennai 1.7

10 Mangalore Refinery & Petrochemicals Ltd., Mangalore 5.31

11 Oil & Natural Gas Corporation Ltd., Tatipaka 0.08

SUB TOTAL (PSU) 53.49

Private Sector

12 Essar Oil Ltd., Vadinar 3.5

13 Nagarjuna Oil Corporation Ltd. (NOCL) 6

SUB TOTAL (PVT) 9.5

GRAND TOTAL 62.99

MMTA : Million Metric Tonnes per Annum

Source : MoPNG - Ministry of Petroleum & Natural Gas

India’s Refining Activity has been steadily growing

Refining

Capacity

MMT

Year

47

7.1.2 Petrochemicals Sector :

The petrochemical industry of India is less than 40 years old. Petrochemicals

cover basic chemicals like Ethylene, Propylene, Benzene and Xylene. The

other major components are the intermediates like MEG, PAN and LAB etc,

Synthetic fibres like Nylon, PSF and PFY, Polymers like LDPE/HDPE, PVC,

Polyester and PET etc and Synthetic rubber like SBR, PBR. The sector has a

significant growth potential. Although the current per capita consumption of

petrochemicals products is low, the demand for the same is growing: The

major players in this field include Reliance, Indian Petrochemicals Limited

(IPCL), National Organic Chemical Industry Ltd (NOCIL) and Gas Authority of

India Ltd (GAIL) etc.

48

61%15%

11%

13%

Gujarat

Maharashtra

West Bengal

Other States

The Petrochemical industry is seen to hold good growth potential in the

medium-term as domestic per capita consumption of petrochemical

derivatives is fraction of world levels, indicating significant potential for

future growth in India.

Demand growth in India is fuelled by several factors :

Higher GDP growth than global rates;

Higher presence of traditional materials leading to greater

opportunities for substitution and

Increased application development carried our by large players to fuel

downstream demand.

State wise production of

Petrochemicals

Gujarat – Hub of Petrochemicals

Source : Ministry of Chemicals & Fertilizers

49

Major Customers in Petrochemicals Sector :

Reliance Industries Ltd.- Jamnagar & Hazira

IPCL- Vadodara, Gandhar, Nagothane (now RIL)

GAIL India Ltd.

Haldia Petrochemicals Ltd., Haldia

Mangalore Refinery & Petrochemicals Ltd., Mangalore

Deepak Fertilizers & Petrochemicals Ltd.

BASF

GNFC

NOCIL

New Projects under progress :

ONGC Petro-additives Ltd., Dahej (OPaL) – Petrochemical Complex

GNFC, Dahej – New TDI Plant

ONGC Mangalore Petrochemicals Ltd. – Petrochemical Complex

50

7.1.3 Fertilizer Sector :

The Indian fertilizer industry has emerged as the fourth largest producer of

fertilizers in the world after China, USA and Russia. Nitrogenous and

phosphatic fertilizers are produced indigenously, while requests for potassic

fertilizers are met through imports.

India‟s requirements for 2007-08 were 26 MM Tons urea going up to 29 MM

Tons in 2008-09 against a production of 20 MM Tons

The requirement for 2011-12 is around 35.5 MM Tons for which

availability should be approx. 39 MM Tons and thus under the present

production scenario the import will rise to 19 MM Tons

The demand-supply gap is expected to grow further and may worsen

in view of the fact that 16 out of the 29 urea units are over 20 years

Immediate need to install 13-15 MM Tons urea capacity by 2011-12

equivalent to 11 to 13 Ammonia Plants of 2200 MTPD each

51

Major Customers in Fertilizers Sector :

IFFCO – Kalol, Kandla, Phulpur & Aonla

Rashtriya Chemicals & Fertilizers Ltd. – Chembur & Thal

KRIBHCO – Hazira

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. – Bharuch

Gujarat State Fertilizers Co. Ltd. – Vadodara

National Fertilizers Ltd. – Nangal, Bhatinda & Panipat

Mangalore Fertilizers & Chemicals Ltd. - Palambur

Chambal Fertilizers & Chemicals Ltd. - Chambal

Nagarjuna Fertilizers & Chemicals Ltd.

Paradeep Phosphates Ltd. - Paradeep

New Projects under progress :

KRIBHCO, Surat – Revamp Project (on verge of completion)

IFFCO, Kalol – Expansion Project

52

Per capita TPES consumption

(toe/capita)

4.13

4.48

1.44

7.74

1.8

4.7

0.51

0 5 10

Japan (2006)

Korea (2006)

China (2006)

US (2006)

World Avg (2006)

Europe (2006)

India (2006)

Per capita Electricity consumption

(Kwh)

8220

8063

2060

13515

2659

8381

503

0 5000 10000 15000

Japan (2006)

Korea (2006)

China (2006)

US (2006)

World Avg (2006)

Europe (2006)

India (2006)

7.1.4 Power Sector :

India has been one of the fastest growing economies in emerging markets.

Indian economy has posted more than 9% growth for three years

consecutively and has seen a decade of more than 7% growth. One of the

key factors behind any growing country is the energy requirement and supply

in that country.

India's per capita consumption of energy is extremely low as compared to

other countries and the world average. For example, the Total Primary

Energy Consumption (TPES) in India is just 0.51 tonnes of oil equivalent,

while the world average is more than three times this figure, as the table

below indicates. Similarly, the per-capita electricity consumption stands at

just 503 Kilowatt-Hour (KwH) per year, less than one-fifth that of the world

average of 3 2659 KwH and a massive 13515 KwH in the United States.

These figures illustrate the fact that there is a massive potential in India for

the growth of energy consumption, should the supply rise to meet the

demand as it increases.

Source: International Energy Agency, Key World Statistics 2008

53

Major Customers in Power Sector :

NTPC

Alstom Power

BHEL

VA TECH Antrz

Voith Siemens

Thermax Ltd.

McNally Bharat Engineering

No new projects are in Thermal/Hydro Power sector. There will be big

projects in Nuclear Power Sector, but current HDOL capability is not

sufficient.

7.1.5 Sector wise Area of Interest :

Business

Sector Area of Interest

Business

Opportunity

Oil & Gas

Vessels, Heat Exchangers, Columns,

Reactors, Driers with metallurgies like CS,

LTCS, SS, NACE/HIC, Low Alloy, Duplex

SS, Super Duplex SS, Claded material, Cu-

Ni, Brass, Al-Br, Monel

Excellent

Petrochemicals

Vessels, Heat Exchangers, Columns,

Reactors with metallurgies like CS, LTCS,

SS, Low Alloy, Duplex SS, Super Duplex

SS, Claded material

Good

Fertilizers

Vessels, Heat Exchangers, Columns with

metallurgies like CS, SS, Low Alloy, Claded

material, Special Urea grade materials like

2Re69

Average

Power Surface Condensers, Feed Water Heaters,

High Pressure Heat Exchangers

Average

54

8% 2%

25%

60%

5%

Oil & Gas Petrochemicals Fertilizers Power Others

20%

2%

20%

50%

8%

Oil & Gas Petrochemicals Fertilizers Power Others

7.1.6 Business Segment wise contribution for

2008-09

HDOL Orders Booked

HDOL Enquiry Pattern

55

7.2 Interpretation :

Looking to growth pattern of various sectors discussed above, Oil & Gas

sector dominates others sectors. There are many big players like ONGC,

IOCL, HPCL, BPCL, RIL etc. Also, it should be noted that Exploration &

Refining supplies feed/raw material for other sectors like Naphtha to

Petrochemicals/Fertilizers/Power sectors and Natural Gas to Fertilizers/Power.

Further, existing refining capacity is 177.97 MMTPA and new projects are

coming with refining capacity of 62.99 MMTPA, means this sector is growing

by 64.6%, hence, it proves heavy investment in this sector. It is proved that

Oil & Gas sector is one the driving force of economy.

Petrochemicals Sector is also emerging sector. Few expansion projects like

OPaL, OMPL are under progress and there will be good requirement of

process plant equipments. There are no major investments in Fertilizers &

Power Sector.

Looking to HDOL product range, it is clear that Oil & Gas Sector is full of

opportunities and we can supply variety of high value equipment. Analysis of

enquiry received and orders booked by HDOL also shows that Oil & Gas

Sector contributes more than other sectors.

Hence, the hypothesis that Oil and Gas Sector is having better business

prospectus than other business sectors with current workshop facility is

proved correct.

56

Chapter - 7


57

Hypothesis – 2 :

H2: HDOL cannot become LEVEL-1 companies with current

workshop facility.

8.1 Analysis :

8.1.1 Design & Engineering Capability :

Software

PVElite

Microprotol

HTRI

AutoCAD 2008

Codes & Standards

American Society Mechanical Engineers (ASME)

American Society of Testing Materials (ASTM)

Tubular Exchanger Manufacturers Association (TEMA)

American National Standards Institute (ANSI)

American Welding Society (AWS)

Indian Standard (IS)

Indian Boiler Regulations (IBR)

PD 5500

SMPV RULES (For Explosive Applications)

GAS CYLINDER RULES (For Explosive Application)

58

8.1.2 Key Facilities Installed in Workshop :

* All dimensions are in mm.

No. Machinery Purpose*

1 Heavy Duty Plate Bending

Machine

50/32 Thk. x 3000 Wide CS/SS Plate

110/65 Thk. x 3000 Wide CS/SS Plate (Order Placed, will be

commissioned in January, 2010)

2 CNC Deep Drilling Machine 1000 Thk. x 4000 Diameter

3 Electric Overhead Crane 50 MT + 50 MT = 100 MT

20 MT + 20 MT = 40 MT

Others cranes – 10 MT, 7.5 MT (2 nos.), 5 MT (2 nos.), 3 MT

4 Semi Automatic Submerged

Arc Welding

4 nos.

5 Welding Machineries 80 nos.

6 Machine Shop Lathe Machines, Drilling Machines,

Milling Machines, Gear Hobbing Machine, Horizontal & Vertical Boring

Machine

7 CNC Plasma Cutting Machine 1 nos.

8 Electric & Pneumatic Tube Expanders

Up to 50 mm OD tubes – 6 nos.

9 Testing Facility Radiography – In house

Ultrasonic Testing – sub contracted

Hardness Testing – sub-contracted

Destructive Testing – sub-contracted

10 Heat Treatment Sub-contracted to United Services

59

4th & 5th Fabrication Shop

Entrance View

Machine Shop CNC Drilling Machine

60

ORGANIZATION CHART

61

8.1.3 SWOT Analysis (HDOL)

Strengths

Part of a bigger infrastructure company

(IVRCL)

Key facilities and machineries available

Experienced Manpower

Accreditation & Certifications

SAP implemented

Good tie-up with suppliers for support

Prime Location for Mfg.

Network across the Country

Full support from Management

Capability to carry out site jobs

Weaknesses

Insufficient enlistment with some PMC /

LSTK / Clients / Consultants / Project

Specific Vendor List

Past failures and insecure clientele due

to the same

Weak past track record for higher

metallurgy

Lack of high end technology in the core

product range

Slow execution and high over head

compared to same size / turn over

Companies

Facilities like dished end mfg. & testing

lab is not available

Unexplored Export Market

Opportunities

Recession is over

New Projects in Oil & Gas Sector and

Petrochemicals

Good Market rapport due to successful

and timely execution of orders

Heavy investments in Nuclear Power

Strategic long term collaboration with

(foreign) technology partners

Export Market

Threats

Easy market entry for competition

Stiff competition for low value items

Late action could leave company behind

in new / emerging areas

Loss of Key Staff

Competition from Chinese & Korean

Suppliers

Margin squeeze

62

8.1.4 Assessment of Competition

Level - 1 (Big Players having huge developed facilities)

• L & T

• ISGEC

• Godrej and Boyce

• TEMA

• VTV

Level – 2 (Companies having medium level facilities)

• HDOL

• Anup Engineering

• Patels Air Temp

• Gansons Engineering

• GR Engineering,

• Hindustan Rediators,

• Fab Tech

• Precision Equipments

• GMM Pfaudler

Level – 3 (Small capacity)

• Minakshi Industries

• Reynolts Engineering

• Aero Engineers

• Aerotherm

• Novatech

• ME Heat

• Gemini Industries

• Bhillai Steel

• Unique Chemoplast

63

LEVEL – 1 COMPANIES : Companies are having high end technologies, skills,

facilities, technological tie-ups, strong proven track records. They are

normally interested in very large to large equipment, critical metallurgy, very

high value items.

LEVEL – 2 COMPANIES : We fall under category of LEVEL-2. Companies are

having comparable skills, facilities, good proven track records. They are

normally interested in medium to large equipment, critical metallurgy, high

value items.

LEVEL – 3 COMPANIES : Companies are having small to medium size

workshop facilities. They give very tough competition to Level-2 companies.

They are normally interested in small to medium equipment and medium

value items.

HDOL stands at LEVEL-2 at present. HDOL competes with LEVEL-2 & 3

companies. To enjoy comfortable situation, HDOL has to raise its capabilities

comparable to LEVEL-1 companies, where HDOL can secure orders with good

margins.

Lost Order Analysis :

64

8.1.5 Workshop facility comparison :

At present, L&T is No.1 heavy fabrication company in India. HDOL is keeping

eye on L&T and see as a role model. Below is the comparison of facilities

among LEVEL-1 companies and HDOL.

L & T Godrej ISGEC TEMA HDOL

Over seas offices Over seas offices Over seas offices Over seas offices

No

Dust Free Environment for SS & High Alloy Fabrication

Yes No No No

Heavy Duty shops with 230 MT Cranes

175 MT 230 MT 150 MT 100 MT

Indigenous design for High Pressure Heat Exchangers

Collaboration NO Collaboration No

U, U2, N, R, S, CE marking, SQL Approval

U, U2, U3, R, S, CE marking, NBBPVI, SQL Approval

„U- 2‟, „U‟, „S‟, „R‟ and „NB‟ , SQL, CE Stamp

U, U2, R, S, CE marking, Approval

U

Fusion Welded Pressure Vessels up

to 200 mm (8”) thickness by Lloyds

Fusion Welded Pressure Vessels up

to 200 mm (8”) thickness by Lloyds

Fusion Welded Pressure Vessels

up to 200 mm (8”) thickness by

Lloyds

No No

Sea-going jetty Sea-going jetty Sea-going jetty No No

Very High Level Design Heads




No

Global Supplier Base Global Supplier Base Global Supplier Base

Global Supplier Base

Working on it

Narrow Gap SAW (Submerged Arc Welding)

Not Known No

Electro Slag / Submerged Arc Strip Cladding

Long Seamer

Nozzle to Shell / Head Welding Systems

Inner Bore Overlay (min. 38mm ID)

Orbital Tube to Tube Sheet Welding

Rolling 250 mm Rolling 225 mm Rolling 250 mm Not Known 50 mm

65

8.1.6 Few Equipment’s manufactured by LEVEL-1

companies :

HCGO (ULSD) REACTOR supplied to a Refinery in USA Weight (Kgs) : 665,000 Thickness : 153 + 5 = 158 mm

Godrej & Boyce Mfg. Co. Ltd., Mumbai

D HYDRO COLUMN supplied to a Refinery in USA Length (mm) : 73 meters Weight (Kgs) : 467,000

HDOL‟s Limitation for such jobs : HDOL cannot handle such a heavy job. HDOL do not have plate rolling capacity of 158 mm HDOL do not have U2 Stamp

HDOL do not have jetty to dispatch such large size equipment

TEMA India Ltd.

HDO do not have technology for High Pressure Screw-Plug Heat Exchangers

66

L&T Ltd., Powai & Hazira Works

FCC Reactor supplied to a Reliance, Jamnagar Size : 10.2 m ID x 45.7 m Length Weight : 1148 MT

Screw Plug type Heat Exchanger

HDOL‟s Limitation for such jobs : HDOL cannot handle such a heavy job. HDOL do not have plate rolling capacity of more than 50 mm HDOL do not have jetty to dispatch such large size equipment HDO do not have technology for Screw Plug type heat exchanger HDOL do not have design capability for such a critical equipment

ISGEC, Yamunanagar, Haryana

Site Fabricated Columns at IOCL, Panipat Refinery Atmospheric Column: Diameter - 6,800mm T/T Length – 59,800mm Weight - 390 MT Vacuum Column:

Diameter – 10,000mm T/T Length – 52,450mm Weight - 580 MT HDOL do not have capability to carry out site work for such large & heavy equipment

67

8.2 Interpretation :

As reviewed and analyzed above, HDOL is having very good design

capabilities, machineries, space, infrastructure etc. among LEVEL-2 & 3

companies. HDOL stands at LEVEL-2 at present. HDOL management aims to

compete LEVEL-1 companies for critical high value equipment. HDOL is

lacking behind from top companies in many respects like technological tie-

ups, machineries, skilled man power, certifications and accreditations, proven

track record, welding capabilities, sea front, global presence, automation in

fabrication & welding techniques etc.

Lost order analysis also reveals that small and medium category suppliers

giving stiff competition and to secure order, HDOL has to squeeze margins.

SWOT analysis also indicates lots of scope of improvement to come out this

situation. To enjoy comfortable situation and exploit niche market, HDOL has

to raise its capabilities comparable to LEVEL-1 companies, where HDOL can

secure orders with good margins. Above analysis proves that HDOL cannot

become LEVEL-1 Company unless it expands his wings across every area

discussed.

Hence, the hypothesis that HDOL cannot become LEVEL-1 companies with

current workshop facility is proved correct.

68

Chapter - 9


69

Hypothesis – 3 :

H3: Heat Exchangers are better than Pressure Vessels in terms of

profitability.

9.1 Analysis :

Overview of both Heat Exchangers and Pressure Vessels is already given in

chapter “Product Portfolio”. We are repeating few thing herebelow :

MAJOR PRESSURE VESSEL PARTS :

Shell, Heads, Saddle/Skirt/Leg/Bracket Support, Process Connections,

Hardware, Internals (if required) etc.

MAJOR HEAT EXCHANGER PARTS :

Shell, Heads, Tubes, Tubesheets, Girth Flanges, Forgings, Cover,

Baffles, Saddle/Skirt/Bracket Support, Process Connections, Hardware

etc.

MAJOR RAW MATERIAL FORMS FOR VARIOUS PARTS :

PART / COMPONENT RAW MATERIAL FORM

Shell, Heads, Baffles Plates

Heat Exchanger Tubes Tube

Tubesheets Forging

Process Connections Pipes & Flanges

Girth Flanges, Cover Non-Std. Forgings

Supports Mild Steel Plates & Structural Parts

like Beam, Channel, Angle

70

COST DISTRIBUTION OF VARIOUS PARTS IN PERCENTAGE (%) :

This cost distribution is arrived in consultation with HDOL‟s estimation &

costing department. Present order product mix covers 70% pressure vessels

and 30% heat exchangers. This cost analysis is arrived by studying 50 nos.

pressure vessels and 50 nos. heat exchangers of various types.

Cost of Item in Percentage (%)

Component / Part Pressure

Vessels

Heat

Exchanger

Plates 64% 13.5%

Mild Steel Plates / Structures 2% 2%

Forgings 5% 22%

Tubes/Pipe 1.5% 44%

Hardware 3% 6%

Welding Electrodes / Consumables 9.5% 6%

Painting / Packing 2% 1%

Labour and other cost 13% 5.5%

Total Cost 100% 100%

71

KEY FACTS ABOUT HEAT EXCHANGERS:

Minimum HOLDs compared to pressure vessels (so manufacturing

activities can be started quickly)

Tubes are required before approx. 2 months of job completion so

interest burden of tube cost (44% of total cost) is less. In case of

pressure vessels, major cost contributor is plate which is necessary to

start work which we need at early stage of manufacturing

HDOL is having capability of Thermal as well as Mechanical design of

heat exchanger, so economical design with optimization can be done

by playing various technical parameters

Basically heat exchanger is having two sub-assemblies viz. Main Shell

& Tube Bundle. Both sub-assemblies can be fabricated separately so

overall cycle time of manufacturing is less compared to pressure

vessels

If we compare Price v/s Weight (like Rs. / kg) then heat exchanger is

having high value compared to vessels

Compact in construction, hence requires less space and handling

capacity

Variety of construction options like Screw-Plug type, Helix heat

exchanger, Plate-Frame type, Air Cooled type etc. These options

contributes value addition

72

Interpretation :

HDOL is having all capabilities right from design to dispatch. It should also be

noted that market requirement of both the product is not controlled by us.

We can only choose market mix to be adopted depending capacity utilization.

If spare capacity is available, then opportunity for pressure vessels can be

materialized. Above analysis reveal many advantages of heat exchangers

which prove it superior to pressure vessels.

Heat Exchangers are having different kind of construction models, which can

make product mix rich. If we consider unit time period (say a year), then it is

sure that HDOL can manufacture more nos. of heat exchangers compared to

pressure vessels of similar weight. Price ranges for pressure vessels from

Rs.100/kg to Rs.125/kg and for heat exchanger from Rs.200/kg to Rs.

225/kg. So, above analysis proves that heat exchangers generate more

revenue than pressure vessels.

Hence, the hypothesis that Heat Exchangers are better than Pressure Vessels

in terms of profitability is proved correct.

73

Chapter - 10

Recommendations & Conclusion

74

An attempt is made to identify the factors that influence Process Plant

Equipment manufacturers in terms of business opportunities from various

business sectors, future prospectus, product mix, high technology products

and awareness of technological developments in market. The major findings

of the study are listed below:

10.1 Major Findings & Conclusion :

Process Plant equipment sector is a highly capital as well as labour intensive

sector with a strong engineering orientation where the products are mostly

custom built. The industry at present is equipped with modern machinery in

addition to competent engineers with management skills, skilled technicians

and qualified welders.

Looking to growth pattern of various sectors discussed, Oil & Gas sector

dominates others sectors and this sector is growing by 64.6%, hence, it

proves heavy investment in this sector. Looking to HDOL product range, it is

proved that Oil & Gas Sector is full of opportunities and we can supply variety

of high value equipment, hence, it is having better business prospectus than

other sectors. Petrochemicals Sector is also emerging sector with few new

projects.

HDOL management aims to compete with LEVEL-1 companies for critical high

value equipment. To reach at LEVEL-1, improvement and enhancement are

required in areas like technological tie-ups, machineries, skilled man power,

certifications and accreditations, proven track record, welding capabilities,

new workshop having facility jetty near by and penetration in export market.

Hence, it is proved that with current workshop facility, HDOL cannot become

LEVEL-1 company. There is huge requirement of heat exchangers and

pressure vessels in oil & gas sector globally. There are huge oil refineries in

gulf countries, so efforts are required for market penetration.

75

Better product mix is always necessary for overall growth of the company.

Though market requirements are not governed by us, efforts must be made

to tap business opportunities for heat exchangers. Heat exchangers are

having many plus points; hence, it is having good profitability compared to

Pressure Vessels.

10.2 Recommendations :

ROAD MAP TO RS. 500 CRORES

Road map to Rs. 500 Crores turn over includes general marketing strategy,

market research, future prospectus and 3 years Marketing Strategy.

General Approach to secure orders :-

• Vendor Registration

• Personal approach with decision makers and shop visit by client

• Up gradation of the Product in terms of Metallurgy, Size & Product

• A total support and access to client through out the execution and

make them feel special

• Expand customer base – Generate Brand Name

• Tracking of new projects in pipeline

• Regular information to the existing and potential clients regarding

development at HDO. Arranging visit.

• Exploring new vendors for competitive raw material costing

• Penetrate into the market for Maintenance Requirements

• Optimize costing & become more cost effective to clients

76

Present Market Scenario :-

• Recession is over

• Rise in Global Oil demand

• Oil prices have reached up to 80 $ per Barrel

• OPEC has started increasing their production of Oil

• All related project which went on hold during recession have resumed

and peaking up speed

• Indian refinery has also put projects on fast track

• To utilize byproduct of refineries, various new refineries in India are

coming up with petrochemical complex

• As per 11th plan Investment of Rs. 1,00,000 Cr. per year has been

planned on power plant.

• Industry is also concentrating on renewable energy resources (i. e.

Solar Power Plant, Wind Energy etc.)

• Investment of Rs. 1,50,000 Cr. has been planned in solar power plant

avenue.

• Indian process plants are 15 year old and hence replacement market is

also significant.

77

Upcoming Projects for next 5 years in India

Refineries

• IOCL, Paradip

• MRPL, Manglore

• HPCL, Mumbai

• HPCL, Visag.

• Kakinada Refinery,

Kakinada

• Essar Oil Refinery,

Jamnagar

Petrochemical Complexes

• OPAL, Dahej

• OMPL, Manglore

• RIL Petrochemical

Complex,

Jamnagar

• BORL, Bina

(Petrochemical

Complex)

• BCPL, Assam

Fertilizer Plants

• KRIBHCO, Surat

• IFFCO, Kalol

Oil & Gas Sector

• ONGC, Uran

• ONGC, Hazira

Power Plant

• NTPC

• Sasan Power Limited (M.P.)

• Akaltara Power Limited (C.G.)

• Coastal Gujarat Power Limited

• Coastal Karnataka Power Limited

• Maharashtra Ultra Mega Power Project Co.

78

Solar Power Plant

• RIL

• Electrotherm, Ahmedabad

• Clinton Foundation

Few Upcoming Projects (Global)

Refinery

• Jubail Refinery, Saudi Arabia

• KNPC, Kuwait

• Yanbu Refinery, Saudi Arabia

• Petrobrass, Brazil

Petrochemical Complex

• Petrochemical Complex, Abu Dhabi

Fertilizer Plant

• Ruwais Fertilizer, Abu Dhabi

Oil & Gas Project

• Gasco, Abu Dhabi

79

Product wise Potential :

Actions required to add Valuable Products :

Development of Welding Capabilities to cater high grade of metallurgy

Develop Production Facility to deal with Higher Thickness Product

Increase Resources in terms of Man & Machineries

Commitment of all cadre of employee toward quality & system

Aggressive & Continuous Marketing in Targeted Area

Rigorous Market Research

80

10.2.1 Marketing Strategy for year 2010-11 :

Products, which can be developed:

Equipment with Duplex & Super Duplex Materials

Equipment with Low Alloy Steels (LAS GR 11 & LAS Gr 22)

Equipment with Higher Thickness (Up to 100mm)

Air Cooled Heat Exchanger for refinery application

LP Heater for Power Plant through BHEL

Equipment for Solar Power Plant (Low & Medium Pressure

Equipment)

Note: Potential in the range for FY 2010-2011 is Rs. 2500 Cr.

Facility to be augmented with required investment :

Description Investment

in Rs. Lac

Duplex Qualification as per EIL specification 10

LAS welding Qualification. 10

Welding preheating facility to be developed , required for

LAS Material

5

Finning facility for Air Cooled Heat Exchangers 300

ASME U2 Stamp, CE Marking 50

Machine for Nozzle Opening (Baggo make) 20

Technical Tie up / Collaboration for Air Cooled Heat

Exchanger

200

Automatic SAW Machine to weld Nozzle with Shell. 30

Faros Blator to avoid Manual Weld edge preparation. 150

81

Shop Floor Area (Bay with 200MT Capacity). In Process

Dedicated Shop for SS fabrication. 2

Welding Expert and Metallurgist. 5

Training of employees. 5

Higher Thickness Plate Rolling Machine Received

TOTAL 787

Competitor in the range

1. ISGEC

2. Godrej

3. Precision

4. Essar Heavy Engineering

5. Techno Process

6. GR Engineering

7. Gansons Engg.

8. Anup

Result Expected:

Price advantage as competition with few big names of industry.

Present shop floor capacity is 850 MT/Month will enhanced to 1500

MT/Month.

Higher return in Rs./MT due to higher metallurgy.

Offer to order conversion ratio of 15 % (present rate) will improve.

Expected order booking will be Rs. 250 Cr.

82

10.2.2 Marketing Strategy for year 2011-12


Equipment with High thickness up to (100mm to 200mm)

Screw Plug Heat Exchangers

High Pressure Feed Water Heater

Air Cooled Heat Exchanger for Power plant

Ammonia Convertor

Secondary Prereformar

Carbamate Separator

Power plant equipment (High Pressure Heat Exchangers).

Equipment with Exotic Metallurgy (i. e. Incoloy, Inconel, Hast

Alloy)

Equipment Weighing higher than 300 MT for Site Fabrication

Total Potential of for this range of product: Rs. 4000 Cr.

Facility to be augmented with required investment:

Description Investment in

Rs. Lac

Plate Rolling Machine up to 250mm shell thk 500

Furnace to facilitate hot rolling. 50

Welding qualification for Low Alloy Steels for higher Thk.

(up to 200mm)

05

ASME U3 Stamp. 50

Technical Tie up / Collaboration for Screw Plug Heat 200

83

Exchanger & Power Plant Equipment

Strip Cladding Facility. 15

Qualification for WOL with strip cladding. 05

Shop Floor Area (Bay with 250MT Capacity) In Process

Clean room facility for Exotic Metal. 25

150-200 MT capacity crane for site fabrication 1000

Plate rolling machine up to 80mm for site fabrication 300

TOTAL 2150

Competition for above said product range:

1. ISGEC

2. Godrej & Boyce

3. L & T Limited

4. BHEL

5. GR Engineering

6. TEMA

7. And many international

Supplier.

Result Expected:

Can be a sixth largest fabrication company of India

More Price advantage as competition with the biggest names of

industry

Present shop floor capacity is 850 MT/Month will enhanced to 2200

MT/Month

Higher return in Rs./MT due to higher metallurgy

Offer to order conversion ratio of 15 % (present rate) will further

improve

Expected order booking will be Rs. 400 Cr.

84

10.2.3 Marketing Strategy for year 2010-11 :


Large Surface Condenser for Power Plant

Complete Steam Line including Piping & Instrumentation for

Solar Power Plant

Boiler Drum

Urea Reactor

Urea Stripper

Carbamate Condenser

EO Reactor

Polypropylene Reactor

DHDS Column for Refinery Applications

Methanol Convertor

Equipment weighing 500 MT for site fabrication

Equipment with very high metallurgy (i. e. Ti, Zr, SS 31050

Urea Grade)

Total Potential of for this range of product: Rs. 7000 Cr.

Description Investment in

Rs. Lac

Qualification for welding of forged shell 10

Qualification of exotic metallurgy (i. e. Ti, Zr, SS 31050

Urea Grade)

20

Welding qualification for Low Alloy Steels LAS Gr 22 V 20

Shop floor area near jetty. 4000

Automatic Tube to Tubes-sheet welding Machine 150

Experts to handle Super critical equipments. 100

Heat Treatment Furnace 8m X 8m X 18m 500

TOTAL 4800

85

Competition for above said product range:

1. L & T Limited

2. BHEL

3. ISGEC

4. Godrej & Boyce

5. Mangiarotti, Italy

6. HITACHI, Japan

7. Borsig, Germany

8. Vijay Tank & Vessels (VTV)

9. Luigi Rasta, Italy

10.Korean Heat Transfer

Result Expected:

Can be a fourth largest fabrication company of India

Can handle super critical equipment

Further Price advantage as competition with the international industry

Present shop floor capacity is 850 MT/Month will enhance to 2200

MT/Month

Higher return in Rs./MT due to higher metallurgy

Offer to order conversion ratio of 15 % (present rate) will further

improve

Expected order booking will be Rs. 500 Cr

10.3 Limitations of the study

As with any exploratory research, the findings of this study are to be

accepted with several limitations. Since limitations of a study can be viewed

as directions for future research in the field, it is pertinent to list limitations

and future research opportunities simultaneously.

Scant and adequate secondary data on technology products market in

India was available

This study does not take companies who are the part of the industry

but are small & medium players.

86

This study does not cover many equipment of Capital Goods Sector.

Various analyses carried out from the basic data available from HDOL

which may not cover picture of whole industry.

Survey could not be done due to scatted locations of companies and

respondents.

87

BIBLIOGRAPHY

Books & Journals

Text Books of SMU

Research Methodology – C. R. Kothari

Principles of Marketing – Philip Kotler

Final Report on The Indian Capital Goods Industry (by CII)

Fundamentals of Heat Exchanger Design – Ramesh Shah & Dusan

P. Seculic

Pressure Vessel Design Manual – Dennis Moss

A report on Indian Engineering Industry – Corporate Catalyst India

A Report on Oil and Gas - IBEF

Websites and Database :

www.google.com

www.wikipedia.org

www.hdo.in

www.temaindia.com

www.isgec.com

www.larsentoubro.com

www.anupengg.com

www.patelairtemp.com

www.dghindia.org (Directorate General of Hydrocarbons)

www.petroleum.nic.in (Ministry Petroleum & Natural Gas)

www.commerce.nic.in (Ministry Commerce & Industry)

www.dhi.nic.in (Ministry of Heavy Industries and Public Enterprises)

www.ibef.org (India Brand Equity Foundation)

www.fert.nic.in (Ministry of Chemicals & Fertilizers)

www.iocl.com

www.ongcindia.com

http://www.google.com/

http://www.wikipedia.org/

http://www.hdo.in/

http://www.temaindia.com/

http://www.isgec.com/

http://www.larsentoubro.com/

http://www.anupengg.com/

http://www.patelairtemp.com/

http://www.dghindia.org/

http://www.petroleum.nic.in/

http://www.commerce.nic.in/

http://www.dhi.nic.in/

http://www.ibef.org/

http://www.fert.nic.in/

http://www.iocl.com/

http://www.ongcindia.com/

88

www.bharatpetroleum.com

www.ril.com

www.mrpl.co.in

www.hindustanpetroleum.com

www.nationalfertilizers.com

www.rcfltd.com

www.iffco.nic.in

www.kribhco.net

www.bseindia.com

www.moneycontrol.com

www.ntpc.co.in

www.gnfc.in

http://in.kpmg.com

www.asiatradehub.com

www.kpc.com

www.energy.gov (U.S. Department of Energy)

www.gail.nic.in

www.nrl.co.in

www.zuari-chambal.com

www.gsfclimited.com

www.deepakgroup.com

www.crisil.com

www.saudiaramco.com

www.bhel.com

http://www.bharatpetroleum.com/

http://www.ril.com/

http://www.mrpl.co.in/

http://www.hindustanpetroleum.com/

http://www.nationalfertilizers.com/

http://www.rcfltd.com/

http://www.iffco.nic.in/

http://www.kribhco.net/

http://www.bseindia.com/

http://www.moneycontrol.com/

http://www.ntpc.co.in/

http://www.gnfc.in/

http://in.kpmg.com/

http://www.asiatradehub.com/

http://www.kpc.com/

http://www.energy.gov/

http://www.gail.nic.in/

http://www.nrl.co.in/

http://www.zuari-chambal.com/

http://www.gsfclimited.com/

http://www.deepakgroup.com/

http://www.crisil.com/

http://www.saudiaramco.com/

http://www.bhel.com/