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On
“THE DISTRIBUTION CHANNEL (To
Enhancing he Sales Promotion of the Company”
EXTRUSIONS OF HINDALCO
At
HINDALCO INDUSTRIES LIMITED
RENUKOOT, SONNEBHADRA
SUBMITTED TO SUBMITTED BY
Miss. Nidhi Agrawal Shravan Kr. Vishwakarma
Lecturer (MLRSM) Roll No. - 0906270107
PREFACE
1
The report is hard intends to reflect some of the basic covered under the
“DISTRIBUTION CHANNEL (To Enhancing the Sales Promotion of the
Company)” of HINDALCO, EXTRUSIONS a first truly “MNC” of India. The
total aspects have been formulated and presented on the basis of ideas and
information gathered by this investigator during a shorter span of project training
i.e. an important portion of the PGDM curriculum leading to an opportunity for
the participant to have a practical exposure of the contents under the topic beyond
what has already been studies during the class-room interaction.
This report has been written in response to a comprehensive study,
conducted on the “DISTRIBUTION CHANNEL (To Enhancing the Sales
Promotion of the Company)” of “HINDALCO INDUSTRIES LIMITED”.
The report mentions and evaluates the various aspects, pertaining to the
distribution channel of the company. After a thorough analysis of the various facts
stand figures, a set of recommendations has been given at the end of the report.
Accuracy and precision has been given the prime consideration, while
compiling the report, are authoritative and authentic.
We are confident that anyone who goes through the report will learn how
much we have learnt & benefited during this period.
AKNOWLEDGEMENT
2
At the outset, let us express my thankfulness to the person with whom we have
interacted and have been provided with the background for accomplishment of our
present task. The significant contributions have made my project completed.
With great pleasure, we express our heartiest thanks to Mr. S K Das (Manager
Training & Development Center), Mr. Ajay Jouhari (Manager, Sales Department),
for providing us an opportunity to undergo summer training in sales department of
“HINDALCO INDUSTRIES LIMITED”, Renukoot.
We would like to extend our earnest gratitude to Mr. M. C. Mahapatra (Sales
Manager) & Mr. Rahul Paliwal (Assist. Sales Manager), and all faculty members who
helped me in my project of our
Our project guide, whose timely guidance and assistance kept us in the right
direction throughout our project work.
We wouldn’t like to forget the valuable contributions of the entire Sales
Department, for lending us all possible co-operations.
SHRAVAN Kr. VISHWAKARMA
MBA - IIIrd Sem.
CONTENT
3
INTRODUCTION…………………………………………………….…... 5
ABOUT ADITYA BIRLA GROUP 15
JOINTVENTURES COMPANIES. 18
COMPANY PROFILE………………………………………………………25
PRODUCTION PROFILE………………………………………….…..…..29
PRODUCT PROFILE…………………………………….…………………32
OBJECTIVES & LIMTATIONS……………………………..…….………42
RESEARCH METHODOLOGY…………………………………..………..45
ALUMINIUM A WHITE GOLD………………………………….………...47
DISTRIBUTION CHANNEL OF HINDALCO…………………...……...65
CONCLUSION AND SUGGESTIONS……..……………..……….…… 98
BIBLIOGRAPHY…………………………………………….………..….. 105
4
EXECUTIVE PROFILE
GENERAL INFORMATION ABOUT STUDY
METHODOLGY OF STUDY
EXECUTIVE PROFILE
5
The investigator to fulfill some basic purpose has carried out the
present project training.
The first purpose of this project training is the partial fulfillment of
MBA Degree of Uttar Pradesh Technical University ,Lucknow.
The second purpose of this project training is to have in depth study
about a very important marketing mix that “DISTRIBUTION CHANNEL
(To Enhancing the Sales Promotion of the Company).” of the company.
Marketing distribution channel decision are among the most important
decision that management faced. A company’s channel decision directly
affects every other marketing decision management must make distribution
channel carefully , incorporating today needs with tomorrow’s likely selling
environment.
GENERAL INFORMATION ABOUT STUDY
6
The study of Distribution Channel of Hindalco was carried out of
HINDALCO INDUSTRIES LMITED, Renukoot(UP) 9th June to 8th
august 2009. The preliminary pages of the report provide introductory.
7
METHODOLOGY USED
As indicated above the major objective of this study is to examine the
distribution channel of Hindalco and come out with suitable suggestions,
which can help in determine the most efficient distribution channel of
Hindalco .
For this purpose the methodology of researchers include:-
1. Primary Data
2. Secondary data
1.PRIMARY DATA :-
Primary data collect by an investigator, face to face formal & informal
interaction with the relative personal of sales department & and also used the
observation method.
2.SECONDARY DATA:-
Secondary data are collected through the various magazines and
journal available in technical library and sales department.
8
ABOUT
ADITYA BIRLA GROUP
CHAIRMAN: Shri Kumar Mangalam Birla
“People build company’s success; where people grow, profits grow.”
Group vision
“To become a premium conglomerate with clear business focus at each corporate level.”
Group mission
“To deliver value for our customer, shareholders, employees and society at large.”
Group Philosophy
Reset on four pillars
Customize
People-size
Strategize
Institutionalize
Group values
Integrity
Speed
Seamlessness
Passion
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KUMAR MANGALAM BIRLA
10
GROUP OVERVIEWS
The Aditya Birla Group is India’s first truly multinational corporation
(MNC), whose over 30% of revenues flow from its operations across the world.Over 75
units in India and overseas as well (in Thailand, Indonesia, Malaysia, Philippines, Egypt
and Canada) and international trading operations spanning several countries including
Singapore, Dubai, Russia, Vietnam, Myanmar and China make it India’s first truly
multinational conglomerate.
Aditya Birla Group has following achievements to credit: it is-
The world’s no.1 in viscose stable fibre.
The world’s largest single-location palm oil producer.
Asia’s largest integrated aluminium producer.
A globally competitive, fast growing copper producer.
The world’s third largest producer of carbon black.
The world’s eight largest producer of cement and the largest in single geography.
India’s premium branded garments player.
Among India’s most energy efficient private sector fertilizer plants.
India’s second largest producer of viscose filament yarn.
India’s second largest private sector insurance company.
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COMPANIES
Group companies:
Grassim Industries Ltd.
Hindalco Industries Ltd.
Aditya Birla Nuvo Ltd.
Ultra Tech Cement Ltd.
INDIAN COMPANIES
PSI Data systems
Aditya Birla Minacs Worldwide Ltd.
Essel Mining & Industries Ltd.
Shree Digvijay Cement Ltd.
Idea Cellular Ltd.
Aditya Birla Insulators.
Aditya Birla Retail Limited
Bihar Caustic and Chemicals Ltd.
INTERNATIONAL COMPANIES
Thailand:
Thai Rayon
Indo Thai Synthetics
Thai Acrylic Fibre
Thai Carbon Black
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Aditya Birla Chemicals(Thailand) Ltd.
Thai Peroxide.
Philippines:
Indo Phil Textile Mills.
Indo Phil Cotton Mills.
Indo Phil Acrylic Mfg.
Pan Century Surfactants Inc.
Indonesia:
PT Indo Bharat Rayon.
PT Elegant Textile Industry.
PT Sunrise Bumi Textiles.
PT Indo Liberty Textiles.
PT Indo Raya Kimia.
Egypt:
Alexandria Fiber Company S.A.E.
Alexandria Carbon Black Company S.A.E.
China:
Liaoning Birla Carbon.
Birla Jingwei Fibres Company Ltd.
Aditya Birla Grasun Chemicals(Fangchenggang) Ltd.
Canada:
AV Cell Inc.
AV Nackawic Inc.
Australia:
Aditya Birla Minerals Ltd.
Laos:
Birla Laos Pulp and Paper Plantation Company Ltd.
North and South America, Europe and Asia:
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Novelis Inc.
JOINT VENTURES
Birla Sun Life Insurance
Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Distribution Company Ltd.
Tanfac Industries Ltd
14
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ABOUT HINDALCO
Vision
“To strength our position as a premium Aluminum company, sustaining, domestic
leadership and global competitiveness through innovation quality and value added growth.”
Mission
“To pursue the creation of value for our customers, shareholders, employees and society at
large.”
Values
INTEGRETY: Honesty in every action.
COMMITMENT: Doing whatever it takes to deliver, as promised.
PASSION: Missionary zeal arising out of an emotional engagement with work.
SEAMLESSNESS: Thinking and working together across functional silos, hierarchy
levels, business and geographies.
SPEED: Responding to stockholders with a sense of urgency.
Strategy
EFFICIENCY FOCUS: To be one of the lowest cost producers globally.
EFFECTIVENESS FOCUS: To continue to remain the market leader
domestically.
GROWTH FOCUS: To pursue value adding growth opportunities.
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HINDALCO OVERVIEW
“Hindalco” was set up in collaboration with Kaiser Aluminum & Chemicals
Corporation U.S.A, in a record time of 18 months. The plant started functioning in the
year 1962 with a capacity of 20,000 tons per annum.
The company has growth manifold and is managed by Board of Directors, with Shri
Kumar Mangalam Birla as the chairman of the Board of Directors. Day to day affairs of
the company are managed by Professional Executives headed by Shri Ratan K Shah as
the chief operation officer-Aluminium & Power.
Hindalco is one of India’s largest producers of Aluminium. The company was in
corporated on December 15, 1958 and commenced production in 1962 with an initial
smelting capacity of 20,000 TPA.
Hindalco’s integrated operation and operational efficiency have enabled the
company to be one of the world’s lowest cost producers of Aluminium.
HINDALCO TODAY
Aluminium has turned out to be the wonder metal of the industrialised world. No
other single metal can do so many jobs, so well, and so economically.
Aluminium’s growth rate is the highest amongst the major basic metals today. Hindalco
ranks as the largest Aluminium producer in India, whose more than 58% sales is in
value added product and has more than 40% in total market share. Hindalco’s integrated
operations and operational efficiency have enabled the company to be one of the world’s
lowest cost producers of Aluminium.
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Hindalco also owns a large captive thermal power plant at Renusagar that meets
the power requirement of the company very effectively. Hindalco currently has primary
Aluminium capacity of 3, 45,000 MTPA.
JOINT VENTURE COMPANIES OF HINDALCO
1. Indo-gulf Fertilizers & chemicals Corpn Ltd.
2. Bihar Caustic & Chemicals Ltd.
3. Tanfac Industries Ltd.
4. Mangalore Refinery & Protochemicals Ltd.
5. Birla AT & T Communication Ltd.
6. Bina Power Supply Co. Ltd.
7. Birla Global Finance Ltd.
8. Birla Capital International AMC Ltd.
9. Century Enka.
RECENT AWARDS WON BY HINDALCO IN DIFFERENT
FIELDS.
National Safety Award 2003 :
By Minister of Labor and Employment.
Rajiv Gandhi National Quality Award 2003 :
Joint award winner of R.G.N.Q.A. 2003 in large –scale manufacturing
category. The award is instituted by Bureau of Indian Standard, Ministry of
Consumer Affairs, Government of India.
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CIOL Dataquest Award :
For best performance in the pioneer category for 2004-05 by CIOL, an IT
portal along with Dataquest Magazine.
Green Tech Gold Award 2003-04 :
By Greentech Foundation, New Delhi for organizational Health &
Safety.
Qualtech Award 2004 :
For Quality Management by Quimpro college, Mumbai.
CII National Award :
For Excellence in Energy Management-2004.
Prime Minister’s Shram Award 2004 :
Shram Veer award to Mr. Ram Kailash of Aluminium plant won the
Excellence Case Study Presentation Award at NCQC, Mumbai in December
2004.
IMC Rama Krishna Bajaj National Quality Award 2004:
Certificate of merit.
National Energy Conservation Award 2004 :
In aluminium sector – Government of India, Ministry of Power.
Aditya Birla Planet Award 2004 :
Jt. Winner of Aditya Birla Planet Award 2004 for community initiative
&Rural Development Works.
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Our Mines Division has been reorganized Aluminium has turned out to be the wonder
metal of the industrialised world. No other single metal can do so many jobs, so well, and
so economically.
Aluminium’s growth rate is the highest amongst the major basic metals today.
Hindalco ranks as the largest Aluminium producer in India, whose more than 58%
sales is in value added product and has more than 40% in total market share. Hindalco’s
integrated operations and operational efficiency have enabled the company to be one of the
world’s lowest cost producers of Aluminium.
Hindalco also owns a large captive thermal power plant at Renusagar that meets the
power requirement of the company very effectively. Hindalco currently has primary
Aluminium capacity of 3, 45,000 MTPA.
10. Indo-gulf Fertilizers & chemicals Corpn Ltd.
11. Bihar Caustic & Chemicals Ltd.
12. Tanfac Industries Ltd.
13. Mangalore Refinery & Protochemicals Ltd.
14. Birla AT & T Communication Ltd.
15. Bina Power Supply Co. Ltd.
16. Birla Global Finance Ltd.
17. Birla Capital International AMC Ltd.
18. Century Enka.
By Minister of Labor and Employment.
Joint award winner of R.G.N.Q.A. 2003 in large –scale manufacturing category. The
award is instituted by
Bureau of Indian Standard, Ministry of Consumer Affairs, Government of
India.
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For best performance in the pioneer category for 2004-05 by CIOL, an IT
portal along with Dataquest Magazine.
By Greentech Foundation, New Delhi for organizational Health & Safety.
Qualtech Award 2004 :
For Quality Management by Quimpro college, Mumbai.
For Excellence in Energy Management-2004.
Shram Veer award to Mr. Ram Kailash of Aluminium plant won the
Excellence Case Study Presentation Award at NCQC, Mumbai in December
2004.
Certificate of merit.
by Indian Bureau of Mines, Government of India for A forestation; Plantation,
waste Dump Management, Topsoil Management, Reclamation and
Rehabilitation, Dust suppression Arrangement, Publicity & propaganda and
overall Performance.
Training & Development (HR) Practices 2004 :
Renusager Power has declared winner of Innovation Training &
Development (HR) Practices 2004. Award given by Indian Society for
Training & Development, New Delhi.
Annual Greentech Safety Gold Award :
Hindalco own the 4th Annual Greentech Safety Gold award for the year 2004-
05 in Metallurgy Sector. The award will be presented on 11th May 2005 at
Hyderabad.
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National Award for Excellence in Energy Management 2005 :
Belure Sheet Plant received the National Award for Excellence in Energy
Management 2005 (Energy Efficient Unite) from CII –Sohrabji Godrej Green
Business Center.
National Safety Award 2004 :
Owned by Renukoot Plant, given by the
Ministry of Labor and Employment, Government of India.
Vishkarma Rashtriya Puraskar :
Awarded to Five workmen of our smelter, Mr. Rajesh Pal, Mr. A.K. Gupta,
Mr. R.K. Singh, Mr. H.N. Singh, & Mr. S.K. Singh, given by the Ministry of
Labor and Employment, Government of India.
National Energy Conservation 2005 :
Renukoot plant won the 1st Prize in Aluminium sector, given by Ministry
of power, Government of India.
ICWAI National Award for Excellence in Cost Management-
2005:
Hindalco was awarded by Institute of Cost and Works Accountants of India.
FINANCIAL PERFORMANCE
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INDUSTRY AT GLANCE
ALUMINIUM
COPPER
26
COMPANY PROFILE
INDUSTRY AT GLANCE
Hindalco industry limited, a flagship company of ADITYA BIRLA group, with a
turnover of Rs.18313.00 crore in 2006-07, ranks among India’s top 10 companies in
terms of capital market capitalization a non ferrous metal powerhouse Hindalco’s
operations are organized into two strategic business units –Aluminium and Copper. The
company is an industry leader in both these business.
ALUMINIUM
Hindalco is Asia’s largest integrated primary producer of aluminium and among
the most cost efficient producers globally. In India, Hindalco enjoys a leadership position
for aluminium and downstream products.
Synergies of operations with it’s wholly – owned subsidiary Indian aluminium
company Ltd. (Indal), have enhanced the company share in value addition segments, in
which the Hindalco – Indal combine has a market share of over 50 %.
As a step towards expanding the market for value –added products and services,
Hindalco has launched several brands in past year –“Aura”, “Freshwrapp”, Everlast”,
and, “Al plant”. The company’s product range includes primary
aluminium ingots, billets, wire rods, rolled products, extrusions, and foils and alloy
wheels.
To enhance its capacities, the company had under taken Brownfield expansions,
leading to smelting capacity of 1,46,000 tpa, an alumina refining capacity of 4,50, 0000
tones, and captive power generation of 167.5MW.
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The company further enhanced the smelter capacity of 4, 29,140MT and alumina
refinery to 6, 60,000 tones, by streamlining to eliminate bottlenecks and installation of
balancing equipment, including another co- generation plant. This has facilitated
optimization of expand facilities and, more importantly, has been achieved within the
original budget.
Besides being a dominant player in the Indian aluminium market, Hindalco’s
products are well accepted in international markets. The company’s metal is accepted for
delivery under the high grade aluminium contract on the LME (London Metal Exchange).
The company’s export efforts have led to its reorganization as a “Star Trading House”.
Hindalco is an ISO 9001 company, and has been awarded the ISO 14001certification for
its entire operations at Renukoot and Silvassa, including its power plant and mines. It has
received several awards from the export promotion council as well as the government of
India. With the completition of on going Brownfield expansion, Hindalco will further
consolidate its domestic market leadership, and reach out to international markets in
larger measure.
COPPER
Birla copper enjoys leadership position in India, having built up-percent domestic
market share with in three years of commissioning. It has also made successful forays
into the export markets of the Middle East, South East Asia, china Korea and Taiwan.
Birla copper has a mega green field copper smelting and refining complex at dahej in the
bharuch district of Gujarat, India. With an investment of Rs 1,850. Crore, it is largest of
its kind in India. The plant produces world- class copper cathodes, continues cast copper
rods and precious metals. Sulphuric acids, phosphoric acid, di-ammonium phosphate,
other phosphatic fertilizers and phospho- gypsum are also produced at this plant .
Birla copper aspires to be among the world’s foremost cost competitive producers of
cooper. To reach this goal, it had under taken a brown field expansion raising its smelter
capacity from 65,000 tones per annum to 146000 tones per annum. The copper division is
evaluating a further expansion as well, so as to rank among the top 10percent of cost
competitive producer globally.
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To make birla copper an integrated producer of copper, the company believes that
upstream expansion through ownership in mines is important for a smelter of its size.
As a first step in this direction, birla copper acquired the nifty copper mines in Australia.
Nifty currently has a capacity of 25000 tones per year of copper cathodes, with a large
underdeveloped copper sulphide.
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PRODUCTION PROCESS
EXTRACTION OF ALUMINA FROM
BAUXITE
EXTRACTION ALUMINIUM FROM
ALUMINA
30
PRODUCTION PROCESS
The aluminum production process can be categorized into upstream and
downstream activities. The upstream process involves meaning and refining bauxite to
alumina while the downstream process involves smelting and casting and fabricating.
Hindalco refines bauxite primarily obtained from captive mines, to extract alumina,
which is smelted into alumina ingots or billets. Hindalco smelts its entire production of
alumina into aluminum and does not engage in alumina trade.
Production of aluminum can be categories in two stages, namely
From bauxite to alumina
From alumina to aluminum
EXTRACTION OF ALUMINA FROM BAUXITE
Alumina is manufactured by conventional bayers process i.e. treating bauxite with
caustic soda. Bauxite is brought to the site from mines by means of railways wagon
tippler. Primary crushing is done in cone crusher where bauxite size is reduced form 8”-
12” to 3” - 4” and then stockpiled. Secondary crushing is done by means of hammer mills
where process liquor known as a spent liquor and 600 psig. Seam is mixed together. This
solution of alumina from bauxite into caustic solution in the form of sodium aluminates is
carried out of digesters at 240 degrees centigrade temperature and 36-kg/sq.cm pressures.
The digested slurry is placed flashed and brought to atmosphere pressure; flashed vapors
are utilized for pre heating the spent liquor and condensed returned to boiler hose for
generation of steam. Digested flashed slurry is pumped to clarification area for removal
of solid Impurities (red mud). Red mud is separated out, in solid liquid hydrocyclon and
stellar. Separated mud slurry is washed in counter current and washing Circuit without
using water. Washed mud slurry is cauterized by treating with lime slurry to recover
soda. Cauterized mud slurry is filtered on drum filters. Filtrate liquor is taken back into
31
the system and red mud cake is disposed off by means of dumpersSettler overflow
pregnant liquor is filtered in Kelly presses to remove fine mud particles. Clear pregnant
liquor is pumped to precipitators through plate heat exchanges after exchanging heat with
the spent liquor where it is seeded with alumina trihydrate. Alumina trihydrate is
separated out in thickness and pan filter. Alumina trihydrate cake thus obtained is fed into
the gas suspension calciner where furnace oil is burnt for calcining alumina. The
reduction grade alumina thus produced is transported to smelter plant.
Spent liquor generated and separated from precipitation circuit is fed to the
evaporation unit for increasing caustic concentration to the desired level and recirculated
to digesters through heaters for further processing of bauxite and thus the process goes
on.
EXTRACTION OF ALUMINUM FROM ALUMINA
Alumina from alumina plant is conveyed to the reduction plant. The reduction
plant has 11 prebaked pot – lines which have 1278 pot cells. Each pot has 24/26 carbon
anodes and it is lined with carbon cathode. Alumina is converted to metallic aluminum is
these pot cells by the standard “hall heroult” process. The pot cells work at an average
4.3-volt D. C. current of 5800/6300 amperes. Electrolysis of the alumina takes place in
molten bath of cryolte at a temperature of 955 to 960 degrees centigrade. The molten
aluminum that collects at the cathodes is siphoned into crucibles periodically. The entire
process is controlled by microprocessor system.
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PRODUCTION OVERVIEW
ALUMINIUM
COPPER
PRIMARY ALUMINIUM PRODUCTS
PRODUCTION CAPACITY
33
PRODUCT OVERVIEW
Hindalco operations are organized into two strategic business units- aluminum
and copper. The company is an industry leader in both these businesses.
ALUMINUM
Hindalco’s Aluminum business comprises primary aluminum, extrusions, rolled
products, foils and alloy wheels. In the value-added segment, hindalco, along with its
subsidiary Indal, has a 50 percent market share. In the past year, hindalco has launched
several brands – “Aura”, Freshwrapp”, “Everlast”, “Permashield”, and, Al Planet”.
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COPPER
BIRLA copper, with an over 45 per cent market share, is India leading copper
producer in private sector. Its plant at dahej in Gujarat, produces world class copper
cathodes, continuous cast copper rods and precious metals.
A part form copper products, euphoric acid, phosphoric acid, di-ammonium
phosphate, other phosphates fertilizers and phosphor –gypsum are also produced at this
plant.
PRIMARY ALUMINIUM PRODUCTS
INGOTS:
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Is an LME (London Metal Exchange) registered brand. These are
also known as virgin metal. These are used as raw material for making
aluminium product.
ROUND BILLETS:
These are use for making extrusion.
CAST SLABS:
Slabs are used input in Hot Rolling Mill,
which is converted into thinner sheets, plates or coils.
SEMI FABRICATED PRODUCTS:
Hindalco produces 900 different rolled product items of which 40 are
standard.
HOT ROLLED PRODUCTS:
36
These are the product which are used after the process of ht rolling
according to their specification and requirements, these products are as
follows:
Hot Rolled Plates:
These plates are supplied in alloys 6351, 5052, 5086. These are
supplied flat with sheared milled.
Hot Rolled Plates For Electrical application:
These electrical application plates are used as Bus
Bar. They are supplied in Alloy 1050, 1060 an 1070. Standard
Temper is F (As Fabricated)
Hot Rolled Coils:
These are supplied in alloy 5005, 60611, 6351,
5052, 5086.
COLD ROLLED PRODUCTS
(A)PLAIN SHEETS
(B)COLD ROLLED COILS
SLUG STOCK:
Hindalco also produces slug stock needed
for punching slugs for the manufactured of collapsible tubes etc.
They are manufactured in allow 1050, 1060, 1070, and in temper
‘o’.
CIRCLES:
This product is made as sheet cut to circular
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cross section before subjecting it to deep drawing or other form of
operation.\
MILK CAN CIRCLE:
They are supplied in allow and temper ‘o’.
They are used to make milk cans.
CHECKERED SHEETS:
These checkered sheets are also known as
flooring sheets because there are use to join floor in buses etc.
CIRCULAR CORRUGATED SHEETS:
Corrugated sheets are supplied in allow 3003, 40800 with
temper 114. For roofing & siding, corrugated sheets in allow 8011
is ideal.
FOIL STOCK:
It is a semi finished coil strip used for
further rolling to manufacture foils.
LITHO STOCK:
It is semi-fabricated coils used for
lithography printing. Extremely high required
with emphasis on almost complete absence of surface defects.
ALKALOID SHEET:
It is also known as brazing sheet and extensively used air
passenger radiators, automotive air conditioning evaporators air
condensers, alkaloid sheets consist of a Bramble Aluminium Allow
(AA4045) Clade (10% of total thickness).
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EXTRUSIONS
Hindalco extrusions offer an enormous range of shapes, wide range of alloys
for decorative, structural and functional application. The present die catalogue
included over one thousand die for various sections and we are fuy equipped to
design and make new die as per exclusive requirement. Some of the common
shapes are as follows:
ROD, BAR-Flat, Square, Hexagonal
STRUCTURAL SHAPES-Angles, Channels, Tee, I-beans, H
sections etc.
TUBES-Round, Oval, Square, Rectangular, Triangular
MOUDINGS
SOLID AND HOLLOW SHAPES
FOIL
Cable Rape stock
Light Gauge Foil
Bare & Coated Fine stock
Collapsible insulation Ducts
ALLOY WHEELS
12 to 18 inch diameters.
OTHERS: The main by products of the process included
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VANADIUM SLUDGE
GALLIUM
THE MARKET LEADER
Hindalco is a leading domestic player in two metals business segments —
aluminum and copper.
The aluminum division's product range includes alumna chemicals, primary
aluminum ingots, billets, and wire rods, product extrusions, foils and alloy wheels.
The company has a significant market share in all the segments in which it operates. It
enjoys a domestic market share of 42 per cent in primary aluminum, 63 per cent in rolled
products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels.
As a step towards expanding the market for value-added products and services,
Hindalco has launched several brands in recent years, which include Aura for alloy
wheels, Fresh Rapp for kitchen foil and Ever last for roofing sheets. Our exclusive
showroom, The Aluminum Gallery, seeks to promote Hindalco products to its customers.
It is a platform for the company to showcase quality products to a quality audience in an
appropriate ambience. The exhibits include products like windows, doors, furniture,
ladder, roofing sheets and ceiling and cladding panels.
Hindalco products are well received not only in the domestic market, but also in
the international market. The company's metal is accepted for delivery under the high-
grade aluminum contract on the London Metal Exchange (LME). The company exports
about 17 per cent of its total sales volume of aluminum.
The company's alumna chemical business is a leader in manufacturing and
marketing of specialty alumna and alumna hydrate products in the country. It has a
market share of 90 per cent in the country. These specialty products find wide usage in
diversified industries including water treatment chemicals, refractory, ceramics, cryolite,
glass, fillers and plastics, conveyor belts and cables, among others. The company also
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exports these alumna chemicals to over 30 countries covering North America, Western
Europe and the Asian region
Birla Copper, Hindalco's copper division at Dahej in Gujarat enjoys a leadership
position in India, having built over 40 per cent of the domestic market share within three
years of its commissioning. It has also made successful forays into the export markets of
the Middle East, Southeast Asia, China, Korea and Taiwan.
The copper plant produces world-class copper cathodes, continuous cast copper
rods and precious metals. Sulphuric acid, phosphoric acid, DI-ammonium phosphate,
other phosphate fertilizers and phosphor-gypsum are also produced at this plant.
PRODUCTION CAPACITY
ALUMINA
CAPACITY 1.15 MTPA
RENUKOOT 685,000TPA
BELGAUM 350,000TPA
MURI 110,000TPA
SMELTER (PRIMARY ALUMINIUM)
CAPACITY 424,000MTP
RENUKOOT 345,000TPA
HIRAKUND 65,000TPA
ALPURAM 14,000TPA
ROLLED PRODUCTS
CAPACITY 2,00,000TPA
RENUKOOT 80,000TPA
41
BELUR 45,000TPA
TALOJA 45,000TPA
NAGPUR 30,000TPA
FOIL
CAPACITY 14,000TPA
SILVASA 5,000TPA
KALWA 6,000TPA
KOLLAR 3,000TPA
EXTRUSIONS
CAPACITY 27,700TPA
RENUKOOT 19700TPA
ALPURAM 8000TPA
ALLOY WHEELS
CAPACITY 3,00,000 Nos. PA
SILVASA 3,00,000 nos.
42
OBJECTIVE OF STUDY
43
SIGNIFICANT AND SCOPE OF STUDY
LIMITATIONS OF STUDY
OBJECTIVE OF STUDY
This project was undertaken to have an insight into the distribution
channel of Hindalco. The study aims to investigate the minute details of the
distribution channel. An analysis of the various facts and figures has been done to
arrive at logical recommendations. In short, at it can be said that this study has
two-fold objective of knowing, “what is the present distribution channel?” And
“what should be the future distribution channel?”
SIGNIFICANT AND SCOPE OF STUDY
The development in the field of transportation, communication and
information on account of globalization has found charging the expectations of
the customers. It is against this backdrop the marketing professionals need to
assign due priority to the application of modern marketing principles in particular.
An efficient “Distribution Channel” plays a vital role in the success of any
organization. A distribution system has to be designed carefully, as it normally
takes years to build ands is not easily changed. This study provides a bird’s eye
view of distribution channel of Hindalco. This report would do well to the entire
person interested in learning about distribution channel of Hindalco. A general
idea about Hindalco’s presence in aluminium market is also well given by this
report. After a through analysis of various facts and figures, a set of
recommendations, with regard to the distribution channel, has been given in the
concluding part of the report. The company would find it useful to look into the
44
viability of the implementation of the recommendations, once implemented, and
are expected to fetch immense benefits to the company. It is thus clear that this
report would serve a variety of purposes and its scope is very wide and open.
LIMITATIONS OF STUDY
The duration of practical training was just of eight weeks. It was not
sufficient.
Due to heavy engagement of the top management people and other personnel,
many other information could not be collected within the limited span
of time.
To maintain secrecy, the company people do not provide various types of
information, such as actual sales to various customers, zonewise sales,
depot setup cost, depot handling cost etc.
Their recommendations are the outcome of an analysis made individually.
Another analysis may arrive at certain other recommendations after using
same data.
So, that it is advisable for the company to examine the various
recommendations, before going ahead with any of their implementations.
45
SAMPLING PLAN
SOURCES OF DATA
46
PRIMARY SOURCES
SECONDARY SOURCES
RESEARCH METHODOLOGY
SAMPLING PLAN:
There is no sampling plan as such as the study involved in understanding the
various processes and analyzing them. The study involved in the detailed analysis of
secondary data calculated from various sources and therefore no sample size and plan has
been c
SOURCES OF DATA
Data has been collected through literature survey and expert opinion. The part of
data is collected from various primary sources and secondary sources.
PRIMARY SOURCES:
Information gathered through interview and discussing with departmental members.
SECONDARY SOURCES:
Annual report of HINDALCO Fy2006-07, 2007-08 and individual contra sheets
of aluminum and copper for the year2006-07 and 2007-08.
Internet.
47
Induction guide.
PROPERTIES
APPLICATIONS
48
PRODUCTIONS & CONSUMPTION’S (DATA)
ALUMINIUM PROPERTIES
The major advantages of using aluminium are tied directly to its remarkable
properties. Some of these properties are outlined in the following sections.
Strength to weight ratio
Aluminium has a density around one third that of steel and is used
advantageously in applications where high strength and low weight are required.
This included vehicles where low mass results in grater lode capacity and
reduction fuel consumption.
Corrosion resistance
When the surface of aluminium metal is exposed to air, a protective oxide
coating forms almost instantaneously. This oxide layer is corrosion, resistant and
can be further enhanced with surface treatments such as anodizing.
Electrical and thermal conductivity
Aluminium is an excellent conductor of both heat and electricity. The grate
advantage of aluminium is that by weight, the conductivity of aluminium is
around twice that of copper. This means that aluminium is now the most
commonly used material in large power transmission lines including domestic
wiring.
Weight consideration means that a large property of overhead, high voltage
power lines now use aluminium rather than copper.
49
Light and heat reflectivity
Aluminium is a good reflector of both visible light and heat marketing it an
ideal material for light fittings, thermal rescue blankets and architectural
insulation.
Toxicity
Aluminium is not only non-toxic but also does not release any odors or
taint products with which it is in contact. This makes aluminium suitable for use
in packing for sensitive products such as food or pharmaceutical where
aluminium foil is used.
Recyclability
The Recyclability of aluminium is unparalleled. When recycled there is no
digression in properties when recycled aluminium is compared to virgin
aluminium. Further more, recycling of aluminium only require around 5% of the
input energy required to produce virgin aluminium metal.
50
APPLICATION OF ALUMINIUM
IN CONSTRUCTION INDUSTRY
Aluminium &aluminium alloys have a number of properties, which make
them ideal for use in building and construction industry. These properties include
light weight combined with high strength, good resistant to corrosion, visual
attractiveness without the need for panting, low maintenance and handling cost
and in the case of structural, materials, reduces building time and cost as the
materials are easier to handle, and involve the use of lighter, cheaper cranes and
other materials handling equipment. Aluminium is used in the both the structure
and fittings of residential and non-residential buildings.
The main uses are roofing and cladding and in window & doorframes, but
there are many other uses, some are as follows:
Solar panels
Cladding roofing
Window door &general application
Architectural hardware furniture
Grills
Ventilation blind
Foil insulating
51
Capping strip rain water guttering
Shower boxes
Mosquito nets
Casemate window
Ceiling system
Roller shutter
IN PACKING INDUSTRIES
An Aluminium metal can is used in a variety of products packing. Use of
Aluminium metal cans, include industrial products and consumer durable
products; such as milk &milk products, fresh fishes, soft drink etc. . Innovation of
Aluminium foil has also a silent future in packing the products. Foil can be used
as a household or commercial wrapping, either alone or in commercial wrapping,
in the from of laminates with their materials. Foil containers are widely used for
the packing of food, especially frozen food. Foil layers are important in paper
based packing such as cartons for fruit juice. Wine boxes have foil containers
inside them, which collapse as the contests are drawn off and prevent the ingress
of air, which of air which oxidizes and spoil the remaining contents.
Foil is used as on oxygen-tight seal in the packing of dry powders like
coffee and foil seals are also under development to provide tamper-proof seals for
pharmaceuticals
Major applications in the fields are as follows:
Pharmaceutical packing
Cigarettes foil
Tea industries
Tagger lids
Aluminium cans for milk
Dairy products packing
Multiply laminates
52
Electrical power applications
Decorative laminates
Collapsible tube
Powder & chemicals
Colors
Aseptic packing
Beverage cans
Flexible food packing
IN TRANSPORT ISDUSTRY
Aluminium alloys are used in the construction of almost all type of
transport equipment. The most widely publicized application for aluminium is in
aircraft, through this in one of the smelter application in term of the tonnage
consumed. The largest end use in the road vehicles, both passengers’ car &
commercial vehicles, and it is also used in railway rolling stock and in the
construction of naval and merchant ships and small boats.
The largest outlet for Aluminum amongst road vehicles is in passenger
cars, which though smaller than commercial vehicles are build in very large
numbers.
Such as:
Aeroplane
Commercial aircraft
Passenger cars
Bus and bus shelter
Railways
Bicycles &bikes
Ship &ship building
Trucks
Light motor vehicles
53
APPLICATION OF ALUMINIUM IN TRANSPORT SECTOR
IN AUTOMOTIVE INDUSTRY
The use of aluminum in construction of passenger cars is far from new. In
the UK the ROVER Company has made extensive of aluminum in body work for
over 40 years, starting with he LAND ROVER 1948 than notably in the ROVE 75
and ROVER90 series (1949-1964) and ROVER 2000. All the models of vehicles
concerned, where by the standards of the times during which they were build, low
volume models. Aluminium is still more widely used in low volume, high
performance, highly priced models of automobiles then in the high volume
production models, which account for most of the passenger car produce.
The consumption of aluminium, and light weight materials in the
manufactures of passenger car is governed by consideration of safety of fuel
efficiency, in emission control and cost.
54
Country % of consumption
Europe 29%
Japan 30%
US 28%
Canada 28%
Australia 25%
India 16%
Aluminum is used for a wide range of components. A variety of examples
are available to show the range of components, which have been produced from
aluminum. Currently, the European cars consume 70kg of aluminum compared to
120kg used in the US markets. In India, the use of aluminum in passenger cars
stands on an average at 20 kg in comparison to 35-35kg witnessed in other
developing countries.
Today, the per capita consumption of aluminum in automotive sectors
accounts for 22% of total per capita consumption of aluminum in India. Globally,
the sector holds 25% of the total consumption. Examples of parts being converted
from other traditional materials to aluminum include, but are not limited to the
following:
Wheels
Hoods
Deck lids
Bumper beams
Suspension parts,
Break discs
Break drum & other break components
Radiators
Cylinder heads & blocks
Stearing housings
Chryher designee engines
Doorframes, sills, steps, roof bows, ride pots.
Extrusions are used for flat truck beds, tanks, van bodies, dumpier
bodies and other application.
IN AVIATION INDUSTRY
55
Aluminum alloys are widely used in military as well as in civil aircraft..
the development of aluminum – lithium alloys that combine lightness of weight
with increased strength is extending the use of aluminum in airframe construction.
Alcoa estimates that aluminum Lithium alloys were substituted for
conventional alloys in BOING747, the weight reduction would be 14000lbs;
which would permit a saving of 4 million gallons of fuel over the service life of
aircraft.
The use of aluminium is maintained by the development of improve
aluminium alloy and of improved methods of fabricating them. In some instances,
this development may lead to the use of aluminium alloys to replace other
materials such as titanium alloys or composites, which are generally to be more
likely to replace aluminium.
Super plastic forming of aluminium alloys permits them to be used in
preferences to composites in non structured application because their
manufacturing processes are so cheap that the cost of a comparable component
manufactured using composite.
Major applications are follows:
Military & civil aircraft
Airframe construction
Aircraft gas turbines
Spacecraft & satellites
Missile & rocket components
Light aircraft
Micro light aircraft
Hang gliders, etc.
IN SHIP BUILDING INDUSTRY:
The use of aluminium as a construction material for marine craft is now
widely accepted although its use in large vessels is still not wide spared, the
recent emergence of the auto \ passenger fast ferry has sparked an existing new
56
era in marine transportation an dramatic growth in the construction of large
aluminium craft.
Aluminium is used for the fame a hull a vessels a rescue craft. The largest
design of ‘TRIUMPH’ rescue vessels used by the US coast guard service involves
an all aluminium sheet are used in hull, the keel and the other components like
engine mountings. Aluminium was selected in preference to fiber reinforced
plastics because it provides superior water lightness an in preference to steel to
achieve weight reduction.
Aluminium is used for decks are generally in the form of extruded planks,
which give better stiffness than plate over large flat areas without the need for
extensive framing. Aluminium planks have important advantages, which assist
fabrication an encourage their use. In fighters, the increased the use of aluminium
may permit carriage of increased payloads notably in containership in which the
containers are stacked to very high levels above deck.
Aluminium is used in hull & super structure of all vessels improves
stability by reducing the waterline. The alternative way to achieve is this is by the
increasing the size & displacement of the hull, which increases the drag and leads
to a reduction in operating efficiency.
A must larger application for e.g. is the use of aluminium alloy plate in the
construction of cargo tank in liquefied natural gas tankers which has been
reported to consume 4000 tones per ship of the A-5083 structural alloy. The use
aluminium in competition racing yacht also encourages its use in construction
pleasure craft.
IN RAILWAYS
The high strength to weight ratio of aluminium alloys makes them highly
suitable for use in railway rolling stock, in which they reduce the tare weight to
permit fuel saving and the carriage of increase the payloads. Aluminium alloys
are also resistant to corrosion, which leads to savings in maintenance, and
increase the service life of railway vehicles. The types of railways vehicle for
57
which aluminium alloys are suitable include mainline, locomotives, passenger
carriages and freight wagons.
Aluminium alloys are also being considered for use in the magnetically
levied trains, which have been introduced in some cities in recent years. ALCON,
ALCO, ALUSUISSE, KAISER & REYNOLDS have all developed lightweight
aluminium coal cars. These advantages of fuel economy an increased speed on
return journey when the train runs empty.
Aluminium alloys are widely used in rolling stock for this type of railway
operation. Because their lightness of weight permits faster acceleration and
reduces breaking both of which are important in trains, which are required to
provide the shortest possible journey time despite the need to make many
intermediate stops, sometimes at intervals of only a few hundred meters.
Aluminium car is 30% more expansive, but one- third lighter than its steel
counter port. Its payload is around 10% higher & fuel consumption is
significantly reduced. Aluminium is widely used in the best –known higher-speed
passenger trains in use and under development around the world. High –speed
passenger trains are used in FRANCE, the TGV makes extensive use of
aluminium.
Major applications are as follows:
Wagons
Doors
Window
Decorative frames, etc
As example: METRO TRAIN in India.
IN ELECTRICAL INDUSTRY:
Annealed commercial grade aluminium with purity of 99.7% aluminium
has an electrical conductivity 63.5% that of copper, but it has must lower density
than copper.
Aluminium has been used for overhead transmission of high voltage
electricity. Aluminium is resistant to corrosion. It is almost universally used for
58
high voltage bare overhead conductors and in some instances it is also used for
the transmission tower they.
Aluminium is almost suitable where space is not restricted and insulation
is not required. High voltage overhead transmission lines are usually not insulated
so the higher costs of insulating larger conductors avoided. Since aluminium
provides the equating conductance more cheaply than copper, it is widely used in
bare overhead conductors.
Major applications are also in following electrical fields:
Electrical components
Accessories
Cabinet frame
Motor body
Light fixture
Cable core
Electronic components
Heat sink
Telephone parts
Transmission tower
Transmission line.
IN CONSUMER DURABLES
Consumer durable goods included kitchen utensils and domestic
electrical applications. One of the earliest applications of aluminium was
in the manufacturing of kitchen utensils, notably saucepans.
The properties, which make aluminium suitable for use in consumer
durable products, includes its good thermal conductivity, its lightness of
weight, its resistance to corrosion, the brightness of its appearance and the
59
case of fabricating it, aluminium is use in components for many domestic
electrical appliances such as cookers, refrigerators etc.
Major applications are also in following fields:
Cookers
Refrigerators
Freezers
Vacuum cleaners
Washing machines
Dishwashers
Tumble dryers
Ice tray & grid
Scoops
Paddles
Stove top pots
Steam jacketed kettles
Gas fired kettles
Dry & steam irons
A.C Filter grill
Panels
Water filter
Furniture
Modeled language
Hangers
Letter plates
Poultry channel
Solar channel
Watch case
Tray etc.
60
APPLICATION OF ALUMINIUM IN INDIA
AUTOMATIVE INDUSTRIES
AEROPLANE &AIRCRAFT INDUSTRIES
RAILWAYS
SHIP BUILDING INDUSTRIES
TRANSPORTATION INDUSTRIES
DAIRY INDUSTRIES
PACKING INDUSTRIES
ELECTRICAL INDUSTRIES
HOUSEHOLD UTENCIL
CONSUMER DURABLE PRODUCTS etc.
Global Aluminium Production Growth forecast (mln tpa)
Year Actual Forecast
1985 15.5
1995 19.7
2005 31.4
2008 37.8
2010 41.3
2015 50.2
61
ALUMINIUM PRODUCTION & CONSUMPTION BY
MAJOR COUNTRIES IN 2009
Country Production
(KT)
CONSUMPTION(KT)
Norway 1376 246
Brazil 1499 759
Australia 1903 380
Canada 2894 803
USA 2480 6143
Russia 3647 946
Chaina 7806 7119
PERCAPITA CONSUMPTION OF ALUMINIUM
COUNTRY CONSUMPTION
(kg/person)
JAPAN 32.0
USA 31.9
GERMANY 31.6
CANADA 31.2
ITLY 29.5
FRANCE 21.4
62
AUSTRALIA 21.2
UK 15.0
CHAINA 6.5
BRAZIL 4.1
INDIA 1.1
INDIA-User Segment’s Growth FY08 over FY07
User Segment FY0
7
FY
08
Change
%
Electrical 398 490 23
Transport 234 308 32
Buil. & Const. 135 165 22
63
Consumer Durable 46 53 15
Packing47 51 9
Indus. Machinery 37 41 11
Others 37 41 11
Total 934 1149 23
64
Major Aluminium Producer Industries in India.
Company Owner
ship
Location Capacity
Hindalco AB
Group
Renukoot
Alpuram
Hirakud
Belgaum
345,000
14,000
65,000
31,000
NALCO Public
Sect.
Angul 345,000
BALCOSterlight
Korba 350,000
MALCO Sterlig
ht
Mettur 40,000
EXTRUSIONS CAPACITY, PRODUCTION & DEMAND 1991-
2020(MT)
Particulars 91-92 99-00 03-04 2010 2020
Capacity 122000 190000 202000 202000 400000
Production 61000 109000 132000 188000 370000
Domestic
Demand
60000 105000 117000 166000 325000
Export Nil 4000 15000 22000 45000
Excess
Capacity
62000 81000 70000 14000 30000
65
A CONCEPTUAL FRAMEWORK
CHANNEL SELECTION FRAMEWORK
MARKET SEGMENTATION OF HINDALCO
DISTRIBUTION PROCESS AT HINDALCO
FACTORS FINDINGS
SUGGESTION/RECOMONDATION/CONCLUSION
66
A CONCEPTUAL FRAME WORK
A set of interdependent organizations involved in the process of making a product
available, or reached the target market or consumers.
Smooth availability of our products to the right customers, at a right place, at a right time
with safe & secured quality and quantity is an important task for the customers
satisfaction or goals of an organization. Organizations are spending a huge amount, about
25 to 35% of the cost of products.
Most producers do not sell their goods directly to the final users stands a marketing
channel, a host of marketing intermediaries performing a variety of functions and bearing
a variety of names.
Thus, “A channel of distribution for a product may be define as a route taken by the title
to the goods as they move from the producer to the ultimate customers or industrial
users.” The primary objective of channel of distribution is to bridge the gap by resolving
spatial (geographical distance) and temporal (relating to time) discrepancies as to supply
and demand.
CHANNEL OBJECTIVES
Making smooth availability of product to the target market.
Achievement of the best possible coverage of the target market.
Ensuring that the consumer incurs the minimum extenuation in procuring the
product.
Safe in quality & accuracy in quantity.
Quick services.
Ensuring that the firm is able to carry on with its manufacturing activities,
confident that the channel will take care of the distribution job.
Ensuring that the distribution is cost effective.
67
The primary objective of channel of the distribution is to bridge the gapby
resolving spatial (geographical distance) and temporal (relating to time)
discrepancies as to supply and demand.
ROLE OF CHANNEL MEMBERS
Channel members are not play only the role of sales the products to the customers but
also play the role as the promote the products, gathering the customer interest,
complaints, suggestion, and information to the organizations – they are work as the co-
ordination between the targeted customers & manufactures.
Members of the marketing channel perform many key functions as follows:
Gathering & distributing marketing research and intelligence information about
actors & forces in the marketing environment.
Helpful in making marketing strategy.
Developing & spreading the promotional offer of company and promote the sales
activity.
Easily make a sales contact with the customers.
Intermediaries are taking the title to goods, so they invest the fund.
Through the intermediaries, manufactures are made physical distribution of
goods.
Intermediaries are taking various type of risks, in the term of storing,
dispatching etc.
CONTRIBUTION OF CHANNEL
Make available on time.
Reduce the cost of distribution
Save the distribution time.
Helpful in product design & developments.
Flow of feedback from consumer.
Flow of money consumers to manufacture.
68
VARIOUS TYPES OF CHANNEL LEVELS
While a marketers wants to sell or marketing about the products or services, requirement
of design a distribution channel to make product & services available to customers in
different ways. In the process of distribution of products, each layer of marketing
intermediaries are performs some work in bringing the product and its ownership closer
to the final buyer is a channel level.
Generally two methods of distribution are in the practices.
1. DIRECT MARKETING CHANNEL
2. INDIRECT MARKETING CHANNEL
DIRECT MARKETING CHANNEL
DMC is a marketing channel that has no intermediary levels. Manufacture or sellers are
advertise their product through the various method of advertising & make awareness
about the products, then contact to the needful customers through their salesmen, internet,
e-mail, telephone or by post.
IMC is a channel containing one or more intermediary levels. Manufactures or sellers are
appointed various type of marketing intermediaries in the context of nature of the
products & segmentation of markets.
69
MANUFACTURES
CUSTOMERS
CONSUMER DURABLE PRODUCTS
70
MANUFACTURER MANUFACTURER MANUFACTURER
DEPOTS, C&F AGENTS
DISTRIBUTORS
SUPER STOCKIEST
EXCLUSIVE SHOW ROOM
RETAILERS
DEPOTS, C&F AGENTS
DISTRIBUTORS
RETAILERS
RETAILERS
CONSUMERS CONSUMERS CONSUMERS
MANUFACTOR’S OR MEMBER’S SALES REPRESENTIVE
MANUFACTOR’S OR MEMBER’S SALES REPRESENTIVE
INDUSTRIAL PRODUCTS
s
71
MANUFACTURERMANUFACTURER
BUSINESS DISTRIBUTORS
DEPOTS, WAREHOUSESDEPOTS, WAREHOUSES
RESIONAL SALES OFFICES, AREA SALES EXECUTIVES
RESIONAL SALES OFFICES, AREA SALES EXECUTIVES
CUSTOMERS CUSTOMERSCUSTOMERS
TYPES OF CHANNEL MEMBERS C & F AGENTS :
It means clearing & forwarding agents. They are responsible for storage &
transportation of the company’s products and its distribution to the distributor and some
time retailers.
DISTRIBUTORS:
A distributor is usually appointed by the company and does not sell its
competitor’s products. He can also be a distributor of many products of the same
company. A distributor is responsible for ensuring that his company’s product is
available at the retail stores. The distributor is very much an extension of the company as
he ensures that the market is properly served. A company has direct control over the
distributors.
Some of the following type of wholesalers:
MERCHANT WHOLESALERS:
Purchase and resell merchandise
He has title to merchandise.
He provides wide range of services.
FULL SERVICE WHOLESALERS:
Perform full range of distribution services.
Provide trade credit; offer promotion assistance, personal sale force, and
communication of information.
Provide installation and services.
72
RACK JOBBER:
Deals with highly promoted items.
Furnishes rack and shelves, price the goods, keep them fresh, set up point of
purchase displays.
Sell on consignment.
Provide services as delivery, shelving, and inventories caring.
LIMITED FUNCTIONS WHOLESALE
Not provide credit, marketing research information and merchandising assistance.
MERCANDISING AGENTS & BROKERS:
They usually perform fewer services than merchant wholesalers do. Merchandising
agents and brokers do not take title to product but negotiate sales for manufacture, they
represent.
MANUFACTURER’S AGENTS
They are free to work for several manufactures.
They carry non-competitive, complementary products in exclusive
territories.
They do not provide credit facility but at times store and deliver
products.
Also provide research aid and promotion support.
BROKERS:
To bring buyer and seller together
To assist in negotiation.
They have not title to goods.
But they provide the facility of financing.
73
COMMISSION MERCHANTS
Received goods on consignment
They have not title to goods.
To accumulate them from local markets & arrange for their sales.
Offer credit & storage goods facility.
To provide sales force & research aid.
They do not normally promote the goods.
MANUFACTURER’S SALES FACILITIES
Established by manufacture
It is separate from manufacturing operations.
It’s performing the wholesaling function himself.
Generally used in industrial customers.
Types of manufacturer’s sales facilities.
MANUFACTURER’S SALES BRANCHES
Carry inventory
Promote the sales activities
Sell to retail outlet.
MANUFACTURER’S OFFICE (Regional Sales Office)
It does not carry inventory
Perform market research, demand
forecasting, etc.
Collect orders from customers.
Make delivery to customers from manufacturing point
Collection of payments.
Dispose all the disputes or claims.
Create better relationship.
74
THE CHANNEL SELECTION PROCESS
75
MANUFACTURER
DEPOTS OR WAREHAUSES CLEARING & FORWARDING AGENTS
DISTRIBUTERS OR WHOLE -SALERS
MERCHANT WHOLESALERS
MANUFACTURER’S SALES FACILITIES
MERCANDISING AGENTS OR BROKERS
Full ServiceWholesalers
Rack Jobbers
Limited FunctionWholesaler
Manufacturer’s Agents
Brokers
Commission Merchants
Manufacturer’s Sales Branch
Regional Sales office
STEP-1
STEP-2
STEP-3
STEP-4
STEP-5
STEP-6
CHANNEL SELECTION PROCESS
76
Identify Target Consumers
Determining Consumer Buying Habits For The Types Of Goods
Locate Potential Customers
Pinpoint Channel Alternative
Evaluate Channel Alternative
Select Channel Members
EVALUTION OF THE DISTRIBUTION ENVIRONMENT:
Selection of channel model has to be necessarily take into account the distribution
environment obtaining in the country/ region and in the specific business in which the
firm is engaged.
A firm has to evaluate the vital features of the distribution environment and
ensures that the channel model to be adopted is compatible with them. Distribution
environment in the border sense includes the legal environment as well in so far as its
implications and distribution are concerned.
EVALUTION OF COMPETITOR’S CHANNEL PARTERNS
The firm should also study the competitors’ channel patterns before deciding its
channel. While the firm may not necessarily follow the competitors it will be worthwhile
for the firm to analyze in depth the plus and minus of the channel patterns adopted by
each of the major competitors.
EVALUTION OF COMPANY RESOURCES AND MATCHING THE
CHANNEL TO THE RESOURCES :
On the other hand firm with larger resources and large size marketing operation
will be in a position to go in for highly intensive distribution committing a good deal of
resources to the distribution task.
77
IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION
OF THE ONE THAT SUITS THE FIRM BEST:
Two important considerations are cost and efficiency. Often though not
necessarily they are directly proportional. The channel that its efficient but relatively less
expensive has to be chosen. Two types of evaluations an economic evaluation and a
conceptual evaluation may be necessary. The firm should also examine whether the
channel member s in the desire alternatives would be willing to work enthusiastically for
the firm and the product.
ANALYSING THE PRODUCT CHARACTERSTICS AND LINKING
CHANNEL TO THE PRODUCT:
The firm should analyze the characteristics of the product and choose the channel
designee that is most suited to the product. Within each of these broad categories of
product channel choice can very in relation to specific products/product types. The
products futures, after all changes in a graded manner as on move through the spectrum
from the simplest consumer soft to the most complex among industrial equipment.
NOTES:
Consumer products Vs Industrial products.
The case of industrial products.
The product must have a sizable customer base.
It must be standardized to a reasonable extent.
It must be stock able items.
The unite value should not be too high.
It should not be complex.
78
Need for specialized distributor must be appreciated; after considering all such
factors, if a given industrial product lends itself for marketing through distributors, it
must still remembered that;
As a general rule industrial products require specialized distributor and entrusting
them with the general-purpose (consumer product) distributors does not produce
the best result.
Different industrial products need different types of distributors.
Establish relationship and use problem-solving techniques for prevention of crisis
and preventing customer dissatisfaction.
Gather quality intelligence on customer dissatisfaction and provide this
information to management.
ON TIME DELIVERY
Consumer will be happy, if the material is delivered on time. OTD has come into
sharper focus, for it has become a competitive weapon in all most all industries. For
example Nissan offers a guaranteed ten-day delivery to its dealers, Caterpillar deliver
replacements parts within 72 hours.99.7% of time
OTD customer satisfaction gap has three components
Calibration Gap
Operations Gap
Organization Gap
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CALIBRATION GAP:
The customer may measure OTD in different manner as copier to the supplier. It
may so happen that the supplier may measure OTD by product category but the buyer
may measure it in terms of complete order. The customer may measure OTD in terms of
the initial order date where as then supplier may measure it from a negotiated date.
OPERATION GAP:
Businesses that face variability from one manufacturing phase to another or from
operations to ware house normally have an operations gap. Operations gap can also result
from too many stages in production process, too many supplier or too many people
involved in order filling.
ORGANISATION GAP:
If people do not have incentives to improve OTD it will probably result into
organization gap. In other words organization gap result from the priority accorded to
OTD.
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MARKETING STRATEGY
OLD STRATEGY
Marketing Head office (Renukoot)
EAST WEST NORTH SOUTH
Vice-President Vice-President Vice-President Vice-president
Extrusions Rolled Primary
Sales Manager (Territory Manager)
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ADVANTAGES
Cost effective
Geographical area oriented.
Focus on all products simultaneously.
DISADVANTAGES
Product promotion scheme is not applicable.
Lack of information about a particular product.
Over work load.
No more time & scope for a particular product.
Consumer satisfaction is not appropriate.
The above old structure was not taking much advantage of the new global market.
Analysis of the advantage and disadvantage of the regional based marketing strategy, it is
not suitable in modern marketing specification era. So that, in 2003 company decided to
go for opting the new marketing strategy based on product specification. For this the
company transferred its marketing head office from Renukoot to Mumbai.
The new marketing strategy structure is as follows:-
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MARKETING HEAD OFFICE (MUMBAI)CMO* (CHIEF MARKETING OFFICER)
EXTRUSIONS ROLLED PRIMARY
Vice-President
EAST WEST NORTH SOUTH
Regional Manager
T.M T.M T.M… (Territory Manager)
*Mr.Mudgal
ADVANTAGES
It’s product based..
Emphasis on more customer satisfactions.
Helpful to increasing the sales performance of various products of product line.
Helpful to production processes to delivery the products.
Accumulation of small customers.
Provide quick service to customers.
Enhance the sales promotion.
DISADVANTAGES
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Cost ineffective.
More men power required.
MARKET SEGMENTATION OF HINDALCO
The market for Aluminium products in India is very widespread
Geographically
By diversified of end user
Further, there are a large number of small and medium consumers and a select a few
large consumers. The smallest consumer would be consuming as little as 1MT/Month.
However, the largest numbers of Hindalco’s customers are in the consumption range of
5-50 Mts./Month.
Aluminium is being used in around 3000 products in developed countries like USA,
Japan, Canada, etc. Where as India, only around 350 products find use in aluminium.
Moreover, the per capita consumption of aluminium in the country is very low (1.1
kg/year).
Hence there is large potential for introducing the new uses and the increasing the
consumption. As a strategy therefor, Hindalco decided to cater to as many consumers as
possible. Their distribution system therefore, is designed to the object.
Hindalco manufacture the products with very specification as desired by the various
customers. Hindalco’s market may be segmented in the following manner.
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(A) MARKET SEGMENTATION BASED ON THE PRODUCT
GROUP
On the basis of product groups, Hindalco market may be segmented in the
following manner
PRIMARY PRODUCTS
Ingots
Wirerods
Billets
ROLLED PRODUCTS
Sheets
Chequered sheets
Roofing sheets
Coils
Hot Rolling plates
Circles
EXTRUDED PRODUCTS
General solid sections
Tubings
Structurals
Architecturals
Mouldings
FOIL
Cablewrap stock
Light gauge Foil
Bare & Coated Finstock
Collapsible Insulation Ducts.
ALLOY WHEELS (“AURA”)
12” to 18” diameters.
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(B) MARKET SEGMENTATION ON THE BASIS OF PRODUCT
WISE KEE CONSUMERS.
PRIMARY PRODUCTS:
Consumers:
Value added aluminium sheet producer industries.
Foil Producer Industries.
Extrusion Producer Industries.
Electricals Equipment
Automobile Industries
Ferrow allows
Smelter pot lining.
ROLLED PRODUCTS
Consumers:
Foil & Packing Industries: box, cop, and container.
Electrical Industries: bulbs, tube lights, fan blade etc
Transportation industries
Building & construction sectors –roofing flooring etc.
Defense & Marine sectors.
Transportation sectors.
Consumer durable: flooring & roofing
General engineering:
Pilper-proof bottle cops
Pressure cookers, non-stick cookware.
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EXTRUDED PRODUCT
Consumers:
Automobile Industries
.uilding & construction Sector
Mines & defence Sector
Transportation sectors
Electrical sectors
Architectural sectors
Furniture sectors
House holds consumer durable
FOIL
Consumers:
Packing sectors (printed & multi-laminated)
Pharmaceuticals
Dairy products
Processed food
Con-fectionery
Personal care products
Cigarettes
Box rapping
Air conditioner
Auto mobile radiator
Collapsible Insulation Ducts.
ALLOY WHEELS
Consumers
Automobile sectors
Maruti Suzuki
TATA Motors
FIAT India
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Hindustan Motors
Telco
Ford India
Hundai India
GM India etc
(C) MARKET SEGMENTATION BASED ON THE DEMAND
PATTERN.
Based on size & frequency of order, Hindalco market may be segmented as follows:
BULK CUSTOMERS
Bulk customers are those customers, whose demand is very high and consistence.
Some of the bulk customers are Howkin, TTK, Foil Division Silwassa, Jugraj Tejraj,
Bajaj Auto, etc.
SMALL & MIDIUM
Small & medium customers may be bracketed as those customers, whose
demand is comparatively low and not so consistence, some of the small customers of
Hindalco included ITI Allahabad, Defense Organization, Dockyards etc.
(D) MARKET SEGMENTATION BASED ON THE PRIORTY:
On the basis of priority given to various orders Hindalco market may be segmented
in the following manner:
ROUTINE CUSTOMERS
Routine customers are those customers, who are regularly sourcing the company.
Their orders are processed in the normal course of working.
SPECIAL CUSTOMERS
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Special customers are those customers, whose orders are for products under
developments. Since their demand is usually urgent in nature they are given priority
under routine customers. Examples: Export Customers, Government organization
like Defense, Establishment etc. continue this category.
(E)MARKET SEGMENTATION BASED ON CONSUMPTION
SECTOR.
Uses of aluminium metal are every where. It is not easy to categorize in some
particular heads. However, we categorize in the following major sectors.
Electrical
Transportation
Building & constructions
Industrial Machinery
Packing
Consumer Durable
Other
(F)MARKET SEGMENTATION BASED ON GEOGRAPHICAL
AREAS
Aluminium consumers are spread all over the country. Different area have different
type of industries, whose are used aluminium in different quantity. Here, segment the
market in geographical areas based on consumption or demand pattern.
(G) TRANSPORTATION FACILITY
Smooth transportation facility is available all over the country all the time. Some
area are affected by flood.some areas are block in the case of heavy rain etc.
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DISTRIBUTION PROCESS AT HINDALCO
There are different tasks involved in distribution process:-
These are as follows:
Order processing
Packing & Insurance, Banking, Bills,
Ware housing
Transportation
Godown sales procedure..
ORDER BOOKING
Every purchaser has to book his order giving details which aluminium rolled
products they want such as Plain sheet, Cold rolled coils, milk can sheet, circles, etc.
Purchaser should be fully disclose about the product such as, product name, quality,
quantity, technical data, mode of transportation, desire delivery time, payment mode etc.
Technical wing of Hindalco examines their application and if necessary also make
inspection of the facing and decided quality to be offered. Thereafter, terms of payment
finalised and his order is finally booked. This order is passed to the relevant personnel’s
officials with relevant details.
PRIORITY
A priority list of all categories of consumers has been fixed in consultation with
all concerned. Consumer gets delivery in order to their priority, which is also followed by
transporting agents.
ORDER PROCESSING:
Hindalco procure order either directly from the customers or through the
agents/stockiest. The order contains the name of product, quality, size, clearance etc.
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After the receipt of orders from the customers or agent Company scrutinizes the
order. A production planning programmed is prepared for rolled production monthly
basis. This monthely report is sent to the respective production department i.e. rolling
mills by the end of the proceeding month. The produced material is sent to the inspection
and packing department.
WARE HOUSING
Every has to store to goods while they wait to be sold. A strong function is
necessary because production and consumption cycles rarely match. Ware housing is the
responsibility of warehouse incharge in Hindalco. The work start when warehouse
officials receive finished goods from production. Hindalco warehousing incharge
dispatches the material to respective customers on advice of CSMO and follows the
guidelines given to them. The guidelines are:
AT WAREHOUSE:
While taking delivery from inspection & packing to ensure packages are intact & dry.
If packages are damaged or loose condition, get it repacked.
If packages are wet, do not accept it.
DURING LOADING AT WAREHOUSE
Truck’s floor should be clear and flat.
There should not be any hole or damage in the floor of the Truck’s
Floor should be covered with Tarpaulin.
Packages being loaded should be intact and dry
Proper stocking of packages should be done while loading.
Heavy packages to be kept at bottom and lighter packages over heavy.
PACKAGES:
No vertical stoking of packages. After loading truck should be covered with tarpaulin.
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DURING STORAGE
Out doors storage should be avoided.
Do not store packages directly on the floor, use wooden pallets.
Cheek condition of metal every few hours to ensure no water condensation
DELIVERY OF MATERIAL:
They deliver the material as per the delivery order. Then they note down the
delivered material in the godown register. Then they send delivery report daily to zonal
office.
BANKING INSURANCE BILLS & OTHER DOCUMENTS
Hindalco enjoys the facilities of three public sector banks & private sector bank in its
town Renukoot.
United Commercial Bank (UCO Bank).
State Bank of India (SBI).
Allahabad Bank.
Industrial Development Bank of India (IDBI).
Banking services at Renukoot is punctual. Banks help the company in carrying the
documents to the party. It helps in quicker payments relisation.
INSURANCE
Every material is dispatched duly insured. There are two types of insurance.
Carrier Risk.
Owner Risk.
Hindalco arranges insurance facilities for its customers. If there are any damages in
transportation they will issue a damage certificate & the customer can claim its insurance
company on the basis of damage certificate.
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GODOWN SALES PROCEDURE
Godown sales procedure describes the sales procedure of Hindalco’s products
through its godown. The respective zonal head exercise control over all activities related
to godowns sales. This sales procedure is followed by all the godown of company
situated at Delhi, Faridabad, Chandigarh, Jaipur, Haryana, Bangalore, Hydrabad, Calcutta
Gohati, Mumbai, Silvasa, Taloja … There is a clearing agent in the godown, which is
appointed by Hindalco for the operation & maintenance of the godown.
VARIOUS MODES OF DISTRIBUTION IN HINDALCO
Hindalco emphasizes on , “Taking the product to the market” Distribution of
products in Hindalco is carried out through a network of zonal offices, Area offices,
Agents, Stockiest and company operated Depots, located through the country. A brief
description is given below
(A) ZONAL AND AREA OFFICES:
Hindalco has established five zonal offices, in various part of country. There is a
network of area offices, functioning under various zonal offices. Zonal offices carried out
various Marketing Sales functions of company.
They provide following functions:
Signed a contract between the zonal offices and customers, regarding to details of
products such as quality, packing, transportation, destination, etc.
Clearly mentions about the mode of payments.
Eliminating intermediaries.
Make a direct contact with the customers
Help the company to cater to the need of customers.
Helpful the company to earn additional profits
(B) AGENTS
Agents are those persons/institutions, who provide orders to Hindalco, on behalf
of the customers. The company has appointed a number of agents, all around the country
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to sell the products. They are paid commission on the generated sales. Agent being a
local person/ institution can use his contacts and influence, to generate sales in a local
market. Agents function as an important mode of distribution, as they enable the
company to minimize distribution costs.
(C) STOCKIESTS
Hindalco appointed a number of stockiest in various geographical areas across the
country. Certain products of the company are sold through the network. Stockiest are
made conform sale for the company.
Stockiest is free to make sell to any customer
Free to charge any price from customers
Helps the company to cover the wide geographical market.
Helpful in minimizes extra distribution setup costs.
(D) DEPOTS
HINDALCO operate 15 depots in various part of the country. Depots send the various
requirements at the work office and thud, maintain suitable inventory to cater to the
demand of the market. This is provide the following advantages to the company & also
the customers:
TAX-SHIELD: In many states, state sales tax is less then the central sales tax. In
these states sales of products through depots, lead to tax saving.
AT RANDOM DELEVERY: Emergency needs of customers full filled
immediately by the depots, at a premium price small offtakes of the scattered
customers can also be provided easily by the depots.
HELPFUL IN PRODUCTION: Depots provide a foundation to the production
department, by keeping inventory of the various products. For example, in the even of
surplus stock, products can be transferred to the various depots. Similarly, Production
–Schedules can be planned with greater accuracy, with the help of estimated
requirements, sent by depots.
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ZONAL OFFICE
CUSTOMER
HINDALCO
AGENT/STOCKIST
PLANT
PRODUCTION
INSPECTION & PACKAGING
WAREHOUSE
DESPATCHCUSTOMER
AGENT/STOCKIST
GODOWN
VARIOUS MODES OF DISTRIBUTION IN HINDALCO
MAJOR DOMESTIC MARKETS (GEOGRAPHYCALLY)
In order to cater the demand of geographically scattered market, Hindalco has broadly
divided its domestic market into the following five zones-
ZONE ZONAL SALES & MARKETING
OFFICE
NORTH DELHI
SOUTH BANGALORE
EAST KOLKATTA
WEST MUMBAI
Registered Office: Corporate office:
Hindalco Industries LTD Aditya Birla Center
Century bhavan 3rd floor S.K.Ahire Marg
Dr.Annie Besant Road Worli
Worli Mumbai 400030
Mumbai 400 030 Tel: 91-22-6652 5000/24995000
Tel: 91-22-6662 6666 Fax: 91-22-6652 5841/24995841
Fax: 91-22-2436 2516 / 2422 7586
Marketing head office
Century
, 3rd floor
Dr. Annie Besant Road
Worli
Mumbai 400 030
India
Tel: 91-22-6662 6666
Fax: 91-22- 2422 7586
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Regional offices —
North East
Vandhana, 5th Floor industry House, 9th Floor
11 Tolstoy Marg 10, Camac Street,
New Delhi 110 001 Kolkata
Tel: 91-11-4220 0200 Tel: 91-33 2282 6130
Email: nutansingh@adityabirla.com Email:suresharg@adityabirla.com South
West
Industry House, 7th Floor Ahura Center, 1st Floor
45, Race Course Road 82, Mahakali Caves Road
Bangalore 560 001 Mumbai 400 093
Tel: 91-80-4041 6000 Tel: 91-22 6691 7059
Email: jshankar@adityabirla.com Email:sanantharam@adityabirla.com
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CONSIGNMENT AGENTS & STOCKIEST
ZONE WAREHOUSES No of
CONSIGNMENT
AGENTS
No of
STOCKIEST
EASTERN 2 6 8
NORTHERN 5 - 32
SOUTHERN 3 12 20
WESTERN 3 26 24
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THE SWOT ANALYSIS OF HIL.
STRENGTH
Global brand image.
Cost effective producer.
Sound financial position.
A high degree quality consciousness is the core competence of the company, ISO
9001 and ISO 14001 have added more prestige to the company.
Integrated production facility at Renusagar power plant.
Company has a well-established distribution network, covering a geographically wide
and scattered market.
A number of Brownfield & Greenfield projects.
Industrial peace as, there has been no major strike in last 22 year.
A well focussed human resources development.
Serve maximum customer satisfaction.
WEAKNESS
Present production capacity is not adequate to meet the rising high demand.
Technology is not upgraded to mark as compare to global giants in aluminium
industry.
OPPORTUNITY
R & D collabratation with universities and another research organization.
More emphasis on down stream production of value added products.
Recycling should be adopted as routine production.
Raising more finance from marketing for more acquisition and merger for
consolidating position in the global market.
Aluminium, continuous to be strong with a growth in transportation sector 16%,
construction15%, passenger car 25%, two wheeler segments 14% respectively during
FY07.
100
THREATS
Strong domestic and global competitors, such as TATA, POSCO, MITTLE, ESSAR .
Innovative revolution in plastic and steel industry.
Reduce in exide duty.
Fall in price of Al. In neighbor country.
101
SWOT ANALYSIS OF DISTRIBUTION CHANNEL
STRENGTH
Product based marketing channel.
Strong dist. channel based on geographically wide & scattered market of India..
Flexible distribution process for customers via direct sales and indirect sales.
Company made more than 50% direct sales.
Convenient road transportation.
WEAKNESS
Not tapped all the potential areas especially in eastern and southern zone.
A 50-40% sale depends on indirect marketing.
The present distribution system is not adequate to meet the demand of aluminium in
the coming years. It is in this light, that the present dist. system needs to be updated.
Certain recommendations, with regard to the same have been suggested ahead.
102
THREATSWEAKNESS
DISTRIBUTION CHANNELDISTRIBUTION CHANNEL
SOLUTION
STRENGTHOPPORTUNITY
OPPORTUNITY
The demand of the company’s products is rapidly increasing. Thus, there is a
necessity to expand the dist. network to avail the benefits of the fast growing market.
Indirect sales should be convert in direct sales through TM sales force.
THREAT
The major threat is from the competitors like BALCO, NALCO etc. because the
company may loose its market leader position , if it does not take timely steps to
modify its present distribution system in the wake of fast growing demand
103
SUGGESTIONS/RECOMMENDATIONS/CONCLUSIONS
Certain recommendations with regard to distribution channel of HIL are as under:
(A) Northern zone offers the most lucrative sales in last financial year.. In the light of
such high sales driven by the factors such as heavy investments in infrastructures and
related industries – machinery, transportation etc. In this zone our more than 65%
sales depends on indirect sales. So that our focus should convert indirect sales to
direct sales. Our effort should be here increase the depots in proportionate way, and
also made appointment TM’s and RM’s.
(B) Southern zone is also the fast growing market for the company. The zone offers
bright prospects to company in terms of future demand driven by rapid industrial
expansion. In this zone our more than 60% sales depends on direct sales and also we
face cutthroat competition. In maintain the sales need of continuous market research
in regard to distribution channel & appoint stockiest instead of consignment agents.
(C) Western zone is the key market of the company. This zone is the most advanced zone
in industrialization in the country. In this zone our 65%(Approx.) sales is through
direct sales.
Analysis of sales data, present depots, stockiests & consignment agents, 35% of the sales
in this zone is indirectly depending upon consignment agents & stockiest. The demand of
this zone is very high. To optimize in this key zone, the company should established
additional depots in that areas- Ahmedabad & Nagpur for enhancing direct sales.
(D) In eastern zone company’s, indirect sales is approx. 70%. Such a heavy indirect sales
reflects that the company is not in
direct contact of its customers and their worries and feedback and these are most essential
factors for improving level of sales.
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In direct sales is not helpful to create, grow & retain the customers. So making the
sales customer oriented and to improve the sales, the company can take the following
initiatives-
1. Assign sales representatives to contact all prospects in this
area.
2. Design a sale promotion complain focusing on brand
awareness.
3. Appoint a regular sales representative with each stockiest.
4. Shift to retail format of business by owning aluminium
galleries in malls.
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ANNUAL REPORT (07-08), HIL
INDUCTION GUIDE , (TRAINING CENTRE )
PRINCIPLES OF MARKETING, “KOTLER & ARMSTRONG”.
RESEARCH METHODOLOGY, “C.K. KOTHARI” & “NARESH K.
MALHOTRA”
INCAL 98
WWW.ADITYABIRLA.COM
WWW.ALUMINIUM-INDIA.COM
WWW.ALUMINIUMMLEADER.COM
WWW.ALUMINIUM-MESSE.COM
WWW.WIKIPENDIA.COM
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