Analysis of Welding Equipment Market of Western India

Project Report submitted to Symbiosis Institute of Business Management, Bengaluru in partial fulfilment of the course “Summer Internship Program” for the award of the degree of

Master of Business Administration

Submitted By

MUKUL ATTRIPRN: 13020841084

Under the guidance of

Dr. Biranchi .N. Swar

Asst. Professor, SIBM Bangalore

SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT, BENGALURU

95/1 & 95/2, Electronic City Phase-1, Hosur Road, Bengaluru – 560100

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Certificate

This is to certify that Mr. Mukul Attri of MBA (2013-15 Batch) of Symbiosis Institute of Business Management, Bengaluru has done the project entitled “Optimization of the property insurance” under my guidance.

Signature of the faculty guide:

Name: Dr. Biranchi .N. Swar

Designation: Asst. Professor

Date: 17th June, 2014

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DECLARATION

I hereby declare that the project work submitted by me entitled “Analysis of Welding Equipment Market of Western India” done during my Summer Internship Program (SIP) is submitted as a partial fulfilment of the requirement of MBA program at Symbiosis Institute of Business Management, Bengaluru.

Project Details:

Project Title: Analysis of Welding Equipment Market of Western India

Company: Praxair India Pvt Ltd.

Company guide name: V.Hariharan

Faculty guide: Dr. Biranchi .N. Swar

Place: Bengaluru Mukul Attri

Date: 15th July, 2014 PRN 13020841084

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Table of Contents

Acknowledgements.......................................................................................................................................5

Executive Summary.......................................................................................................................................6

Industry and Company Analysis....................................................................................................................7

Introduction................................................................................................................................................17

Project title:................................................................................................................................................18

Objectives...............................................................................................................................................18

Literature Review........................................................................................................................................19

Macro View.................................................................................................................................................20

Indian Economy.......................................................................................................................................20

Industry Analysis.........................................................................................................................................21

Primary Field Research................................................................................................................................26

Fundamental Analysis.................................................................................................................................32

Company overview..................................................................................................................................32

Competitive Strengths.........................................................................................................................33

Valuation:....................................................................................................................................................35

Discounted Cash Flow............................................................................................................................37

Peer Valuation.........................................................................................................................................41

Conclusion...................................................................................................................................................42

Bibliography................................................................................................................................................43

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Acknowledgements

I would like to thank Mr. Anuj Sharma, Chairman and Managing Director of Praxair India Pvt

Ltd. (PIPL) for giving me this opportunity to work in the Finance team of Praxair India Pvt Ltd.

I am indebted to Mr. Nishant Shah, Associate Vice President – Hard Goods & Gases, for his

guidance in the field of Insurance. His influence has been paramount in my internship as an

insurance analyst.

Lastly, I would like to thank Mr. V. Hariharan, Asst. General Manager (Hard Goods) for his

continued support and guidance throughout the course of the internship.

I would thank Dr. Biranchi N. Swar for his continuous support and guidance.

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Executive Summary

The first few days were spent in understanding how Praxair India operates and what are the major

revenue sources and company’s current market standing. Actual Project was executed in 4 phases,

the first phase involved secondary research for initial market analysis and competitor analysis,

this phase also included mapping of existing and potential customers in industrial areas of western

India. In the second phase a Questionnaire was designed in accordance with the information

required from the customers and also involved discussion with the team on the nature of

qualitative or secondary information that may be relevant. In the third phase primary data was

collected as per the questionnaire and it also involved generating sales leads in the unexplored

markets of Maharashtra, educating customers about Praxair’s products, to record future purchase

or expansion plans, to collect key customer insights and to assist in distributor selection. In the

final phase data from the primary research through visits was combined with secondary data

collected to give detailed analysis about industry trends, product design requirements, Pricing

strategy, distribution strategy and positioning strategy to the respective departments

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COMPANY NAME HERE

Industry and Company Analysis

Company Analysis

Name of Company: Praxair India Pvt. Ltd.

Core Purpose:

To be the best performing industrial gases company in the world — as determined by our

customers, employees, shareholders, suppliers and the communities in which we work. 

Organization Structure:

The company is divided into various Business Heads. Below is the organization chart showing

various business heads.

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HR Details

The company employs more than 700 employees who include both corporate and onsite

employees. Various trainings are conducted from time to time to continuously improve the skills

of employees.

Product and Services

There are a few SBUs within this group. It has been illustrated diagrammatically below:

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BR SrinivasDistribution, CSG& PGOE

Ragu Gunabooshanam Finance & ITS

Nagendra SinghExecutive Assistant

Mukundan Iyer RVP - South

Arup GhoseApplications

MVS RamakrishnaOnsite Operations& Safety

Support

Richa DubeyHuman Resources

SR KulkarniGPMM Capital

Saugata SenguptaGSS India

SrinivasanRajagopalanR&D

Anuj SharmaManaging Director

Oper

atio

nsDi

strib

utio

nPraxair India Organization Chart

Busin

ess

Deve

lopm

ent

RC KaushikRVP - East & NorthNishant ShahRVP West & Central Spec & Helium,Hardgoods

Base Business

Appl

icatio

ns

Venkatadas DevisettyProduct Management,Productivity, Marketing,GPMM Revenue Sthanu Singh

Legal CounselMuralidhara CExternal Legal Counsel

Mona ShethInternal Audit

Anik SenguptaPST

Siladitya Roy ChoudhuriBusiness DevelopmentRahul ChatterjeeBusinessDevelopmentAnirudh GharoteManaging DirectorJPOCL

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HealthcareHard goodsSale of equipmentsAir separation

Business Segments:

Industrial Gases:

1. Atmospheric Gases:

Atmospheric gases are the highest volume products produces by Praxair. Using air as its raw

material, Praxair produces oxygen, nitrogen and argon through several air separation processes of

which cryogenic air separation is the most prevalent. As a pioneer in the industrial gases industry,

Praxair is a leader in developing a wide range of proprietary and patented applications & supply

systems technology. Praxair also led to the development of the non-cryogenic air separation

technologies for the production of industrial gases. These technologies include proprietary

vacuum pressure swing adsorption (VPSA) and membrane separation to produce gaseous oxygen,

nitrogen and other gases.

2. Process & Specialty Gases:

Process gases including carbon dioxide, hydrogen, carbon monoxide, helium, specialty gases and

acetylene are produced by methods other than air separation. Most carbon dioxide is purchased

from by-product sources like chemical plants, refineries, industrial processes and is recovered

from carbon dioxide wells. Carbon dioxide is processed in Praxair’s plants to produce commercial

& food-grade carbon dioxide. Hydrogen and carbon monoxide are produced by either steam

methane reforming of natural gas or by purifying by-product sources obtained from the chemical

and petrochemical industries. Most of the helium sold by Praxair is produced from certain helium

rich natural gas streams in the United States with the additional supplies being acquired from

outside the United States. Acetylene can be produced from calcium carbide and water.

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3. Surface Technologies:

Praxair Surface Technologies is a leading worldwide supplier of coating services and thermal

spray consumables to customers in the aircraft, energy, printing, primary metals, petrochemicals,

textiles and other industries. Its coatings are used to provide wear resistance, corrosion protection,

thermal insulation, and many other surface-enhancing functions which serve to extend component

life, enable optimal performance, and reduce operating costs. It also manufactures a complete line

of electric arc, plasma and wire spray, and high velocity oxy-fuel (HVOF) equipment.

Through the use of protective surface coatings, they help customers to:

» Improve environmental performance

» Decrease energy consumption

» Extend component life

» Improve productivity

» Minimize downtime

» Reduce operating costs

» Produce higher-quality products

Hard Goods:

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Customers

Praxair India serves to various industries which include Aerospace & Aircraft, Automotive &

Transportation Equipment, Chemicals, Diving, Electronics, Energy, Food & Beverage, Glass,

Healthcare, Laboratories, Metal Production, Oil & Gas, Pharmaceuticals & Biotechnology, Pulp

& Paper, Refining, Water & Wastewater Treatment, and Welding & Metal Fabrication.

Basic financial Analysis

Some of the basic financial analysis/ratios have been illustrated in a graphical format.

Source: Annual Report, MOFSL

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Source: Annual Report, MOFSL

Source: Annual Report, MOFSL

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Introduction

This project revolves around study of the welding equipment market concentrated in the western

region of India due to combined presence of manufacturing and automobile sector which are the

key consumers for this particular industry, first part of the project was to map the manufacturing

sector and automobile sector in the regions of Maharashtra, Gujrat, Madhya Pradesh etc. and

simultaneous study of welding products and technologies used in these industries. This entire

study is being done to support the hard goods division (Welding Equipment division) of Praxair

India ltd in terms of sales and pre sales activities.

Praxair India ltd. is India’s largest gas manufacturer and supplier, Recently Praxair has ventured

into welding equipment market which currently has a size of Rs.5600 cr and has shown a growth

rate of 17%.Welding Equipment market in India is highly fragmented where local players

comprise of 45% of the total market and organized players make the rest of it, ESAB India Ltd. is

the market leader and is followed by companies like Miller, Lincoln Electric, Ador Welding,

EWACS (L&T) etc. Praxair has recently launched its welding equipment under the brand name

‘PROSTAR’ and has around 1% market share.

PROPOSED GOALS:

To do a detailed Competitor analysis

To understand the functioning of welding industry and market

Primary Market Research through questionnaire technique

Initiate sales through new customer acquisition

Creation of customer database for welding equipment division

To establish the key customer retention pointers in the welding industry

To give feedback to product design division on the basis of customer interaction

To educate the current and potential customers about Praxair’s products and their USPs

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