DISTRIBUTION CHANNELS OF

VARDHMAN STEELS

UNIVERSITY ROLL NO:-

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ACKNOWLEDGEMENT

The research on distribution channels of Vardhman, “Vardhman steels” has been given to me as part of the curriculum in 3 years Bachelor Degree in Business Administration. I have tried my best to present this as clear as possible using basic terms. I hope that it will be comprehended by the widest spectrum of researchers, analyst and students. I have completed this study under the able guidance and supervision of “Aseem Jain”, Associate manager- marketing, Vardhman steel Patiala and Professor Neeraj Goyel, M. M. Modi College, It won’t be success if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge I have received from them.. Mere acknowledgement not redeems the debt. I also own to my parents for their direct / indirect support during the entire project.

Date- competed by- Lily smita lenka BBA- final yr.

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Declaration

I hereby, declare that the project report entitled “distribution channels of Vardhman steels, Patiala” submitted in fulfillment of the requirement for the degree of bachelor of business administration of Punjabi university, Patiala is my original work and has not been submitted of any other degree at this university.

Date- lily Smita Lenka BBA-final yr. Place; Patiala

Executive summary

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In Today’s corporate and competitive world. I find that Vardhman steel company has the maximum growth and potential and as compared to the other steel Company. Vardhman Special Steels Limited produces special and alloy steel hot rolled bars for engineering, automotive, tractor, bearing, and allied industries in India.

It offers plain carbon, case hardening, free/semi free cutting, spring, ball bearing, boron, micro alloy, and special application steels. The company was founded in 1962 and is based in Ludhiana, India.

Vardhman Special Steels Limited operates as a subsidiary of Vardhman Textiles Ltd. Vardhman Special Steels Limited operates independently of Vardhman Textiles Ltd as of March 15, 2011. Vardhman Industries was established in the year 2000.

My project work in Vardhman steel company based on distribution channels of the company. I studied a distribution channel that is the path of transformation of goods to the consumer.

Distributor’s → Dealers → Shopkeepers → Customers

The success of good market Assessing current business environment of different markets organizations depends upon the availability of the product and services near to customers which can be distributed through a distribution channels. Vardhman steel Company, distribution channels include only deals and dealer holders of the company. In the Vardhman steel Company have adequate agents in there market. They can capture big market as compared to the other companies.

As Vardhman are an old company and trusted company. People prefer Vardhman steel and other products. But by the changing scenario, people change their preference. They prefer the product that seems to be good. So, Vardhman Company has to improve their product to remain in the market in long run

TABLE OF CONTENT

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s.no. content page no.

1. introduction 6 - 26

I. INTRODUCTION TO DISTRIBUTION CHANNEL 7II. CLASIFICATION OF CHANNELS 8

III. TYPES OF INTERMIDEARIES 12-20IV. FUNCTIONS OF DISTRIBUTION CHANNELS 21V. DISTRIBUTION CHANNEL STATEGIES 22

VI. DISTRIBUTION INTENSITY 23VII. TYPES OF DISTRIBUTION 24-25

VIII. KEY CONCEPT AND STEPS 26-28

2. Review of literature 29-33

3.ABOUT COMPANY 34-64

I. COMPANY INFORMATION 34II. ABOUT VARDHMAN STEEL INDUSTRIES 35 -36

III. VARDHMAN STEEL ENTERPRISES 37IV. ABOUT VARDHMAN GROUP (HISTORY) 38V. MISSION 39

VI. COMPANY OVERVIEW 40VII. VARDHMAN GROUP A PROFILE 41-42

VIII. PHILOSOPHY 43IX. PERFORMANCE 44-45X. PRODUCT PROFILE 46-51

XI. PRODUCT RANGE 52-54XII. STEEL QUALITY 55-58

XIII. PROCESS FLOW 59-61XIV. STEEL OEM CLIENTS 62-66XV. ADVANTAGES OF VARDHMAN PRODUCT 67

XVI. MARKETS 68-69XVII. VARDHMAN ON WORLD MAP 70

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XVIII. MANUFACTURING AND DISTRIBUTION 71XIX. CUSTOMERS 72

4.objectives 73

5. RESEARCH METHODOLOGY 74-75

6. LIMITATION 76

7. DATA INTERPRETATION AND ANALYSIS 77-87

8. DEALER AND CUSTOMER VIEW POINT OF VARDHMAN STEEL COMPANY 88

9. FINDINGS OF THE STUDY 89-90

10. SUGGETION 91

11. CONCLUSTION 92

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BIBLOGRAPHY 93

QUESTIONNARE 94-95

Introduction

Distr ibut ion channels

MEANING:-

Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion.

The Nature of Distribution Channels:-

Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as

"All the organizations through which a product must pass between its point of production and consumption"

Why does a business give the job of selling its products to intermediaries? After all, using intermediaries’ means giving up some control over how products are sold and who they are sold to.

The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried running a sales operation itself.

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Classification of channels

The trade channels are classified as to conventional and non conventional or non integrated and integrated with further ramifications. The following chart and diagram make this quit clear:

Conventional channels:- Conventional or individualistic channels are the fragmented net works where in the manufacturers and the consumers are loosely linked by intermediaries in the process of exchange. The intermediaries perfume the usual conventional marketing functions. The conventional channels alternatives can be:

1. manufacturer to consumer

2. manufacturer to retailer to consumer

3. manufacturer to wholesaler to retailer to consumer

4. manufacturer to wholesaler to consumer

5. manufacturer to agents to wholesaler to retailer to consumer

Non-integrate or conventional channels two shapes namely, direct and indirect.

Direct:- A direct channel is one which is the shortest where in the company chooses to sell directly to the consumer without engaging any intermediary. It is commonly seen` incase of mail order sales. Sales by trebling salesman and multiple shops.

Indirect:- On the other hand, ‘indirect’ channels are one which employs the services of intermediaries in moving goods to the consumer. As a result, in direct channels, there is

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immediate change in the title of goods from manufacturers to consumer while incase of in direct channels, it gets delayed as the intermediaries go on increasing. These direct and in direct channel option will be clearer with the practical illustrations as given follow:

1. Manufacturer to consumer- This channel choice is the shortage and simplest, as it is direct there goods move directly from producer to consumer. There is no intermediary is involved. This is the channel choice opted by manufacturers industrial and consumer durable goods. The sales are affected through the company sales – force. Take the case of vacuum cleaner. Water cooler generated sets.

2. Manufacturer to retailer to consumer- Between the producers and the consumer this is channel as one intermediary namely, retailer. This is the most common channel incase of consumer durable such as textiles, shoes, ready garments as so on incase of textile most of the mills have there on retail outlets all over the country.

3. Manufacturer to wholesaler to retailer to consumer- This channel option has to intermediaries namely, wholesaler and retailer interposed between the producer and the consumers. This is the most popular form and is used by both small and big company alike. The company producing consumer non durable item use this where the wholesaler the production in different parts of the nation or a region and from there, the product are supplied in smaller quantity to the retailers and who in turn, sell to consumer.

4. manufacturer to the wholesaler to consumer- This channel option by passes the last link namely retailers, there for goods move from producer to wholesaler and back to consumers, directly without

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having recourse to retailers, this is the most acceptable practice when the consumers are not individual buyers but are institutional buyers such as hospital, school, collages, government agencies, public enterprises , business houses religious institution, sport club, and like, how ever the scope of this channel is limited to the number of institutional buyers, through it is use in cases of these companies manufacturing consumer durable goods, it can be also used incase of consumer non durables

5. Manufacture to agent to wholesaler to retailer to consumer- It is the longest in direct channels option that a company has. The channels has the services of agent middlemen only next to producers who in turn, sell to wholesaler to the retailers and back to final users by the retailers, these agent middleman may be commission agents, export merchants who manage the affairs on behalf of the manufacturer who wants to concentrate totally on production, this is generally done by companies with multiple product portfolio and producing consumer non durable on large scale enjoying national and international market.

It is worth pointing out at this level that the above five channels options are not exclusive. Depending on the individual requirements, a firm may use combine options instead of only one channel. When a company uses only one channel for all its market segments and all products, it is a case of mono- channels or single channel policy. When it uses two or more channels for its products and the market segments, it is called as dual or multi- channel policy.

Integrated channels:-

As opposed to the conventional or non-integrated channels of distribution, integrated channels of distribution are those net-works that work with full coordination and cohesion rather than working in a loose manner, these integrated channels can be vertical and horizontal in nature.

1. vertical channels: vertical of vertically integrated channel of distribution are those which are professionally managed and centrally net-works that are pre-engineered to achieve operating economies and maximum market impact, in other word these are rationalized and capital intensive net-works designed to achieve, technical, managerial and promotional economies through integration, coordination and synchronization of marketing flows from the point of production to the final points of ultimate use.

These vertically integrated channels are of three types namely, ‘administered’, ’contractual’; and ‘corporate’. ‘Administrative’ channel is one in which coordination of marketing activities is achieved through the use of programmers developed by one or a limited number of firm. Such an arrangement makes use of management facilities, modular merchandising, coordinated display and automatic replacement programs and programmed merchandising agreements. This is generally followed by two-wheeler or three wheeler or four wheeler manufacturers who direct its dealers guarantee coordinated display and merchandising to win the dealer support. A contractual channel is one under which the

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independent channel components integrate their program on contractual lines to attain the economies and enhance the market impact. That is the outside units specializing would to the work for a price. A corporate channel is one in which the channel components are owned and operated by the same organization. Through it involves huge investment; it has the advantage of full control. Thus, a manufacturing unit may float a selling or marketing unit of its own

2. Horizontal channels:- Horizontal channel is one in which two or more companies join their hands to exploit a marketing opportunity or opportunities, either by themselves or by creating an independent unit. The examples of this kind are sugar syndicate of India and associated Cement Company. The reason of horizontal integration are the ever changing markets, cut throat competition changing pace of technology, excess capacity, cyclical and seasonal changes in consumer demand and the in capacity to take financial risks single handed and so on.

Types of intermediaries

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1. Wholesalers:-

Wholesale trader is one whole sale to other middleman, institution and individuals usually in fairly large quantities. According to American management association, “wholesaler sell to retailer or other merchants and/or individual, institutional and commercial user but they do not sell in significant amount to ultimate consumer” Thus, wholesale trade is to do with marketing and selling merchandise to retailers, to other wholesalers or to individuals- commercial and professional or other institutional users in contrast to household consumers, to individuals for personal use or to the farmer.

Functions: Wholesale traders perfume a number of functions in the process of marketing the goods. Of them, the most important ones are:

A. Assembling and buying:- Assembling implies the collection of small lot of scattered agricultural production foe economic bulk buying; it also means bringing together stokes of different manufactures and placing orders on them and making special purchases in cases of seasonal products.

B. warehousing:- Warehousing or storing is closely related to the function of assembling. As there is always a gap between the time periods production and consumption, they are to be held and preserved. This involves capital lock up plus risks. This warehousing by wholesalers relieves both the producers and the retailers from the problem of storage.

C. Transporting:- In the process of assembling and warehousing and resale, wholesalers do undertake transportation of goods from producers to their warehouses and back to the retailers. What is important is that this transportation is done on most economic lines either through their own fleet or through hired common carriers.

D. Financing- Wholesalers undertake marketing financing. The grand credit on liberal terms to retailers on one and reduce the financial burden of the manufacturers by taking early delivery of stocks from them. The very fact that the wholesaler’s grand credit is as good as reducing the credit quota of manufacturers to final users.

E. Risk bearing- Risks are inherent of business which is to be borne and shifted. Wholesalers bear the risk of loss of change in price, of damage, deterioration in quality, pilferage, theft and fire and the like of the goods held in storage. They also bear the risk of the none or under payment by the retailers. Risk shouldering is the part of his game.

F. Grading, packing and packaging-

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Grading is another function of wholesaler whereby they sort-out the stocks in terms of differing sizes, qualities, moisture, contents and so on. Bulk-breaking is done with a view to meet the small lot requirements of the retailers. In fact, they repack for the consumers as per the orders of the retailers.

G. Dispersing and selling- The goods assembled and held in stock are meant for dispersing and selling. It is the retailers who buy from the wholesalers. Similarly, wholesalers do have their own sales-army moving to retailers in collecting order.

H. Providing market information- Wholesalers are the vital link between the retailers and manufacturers. They provide relevant and up-to-date information to the retailers affecting their trade interest; so also they reciprocate the same to manufacturers. As to whatever retailers feed them on changing market condition useful for the wholesalers.

The type of wholesalers:-

Wholesalers are mainly of three types namely:- 1. Full function,2. Converter3. Drop shipper

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1. Full function:– A full function wholesaler is an intermediary who buys and sell the products on his own account assembles products from different sources in bulk, carries stocks, sells in smaller lots, grants credit and renders valuable counsel and advice because of wide range of functions, he performs and service he renders, he is called as full-line wholesalers.

2. Converter- A converter is that full-line wholesaler who buys product and sells them to the subsequent channel members after processing them. Thus, in cotton textile he may convert the great lot into bleached and dyed, in corns, he may convert wheat into wheat flour or pallets.

3. Drop-shippers- A drop shipper is that wholesaler who neither stores the products nor delivers them to the buyer from his own stock but books order and directs manufacturers to the retailer to that effect. However he has to take delivery of goods in case the retailer or the buyer fails to accept the same.

2. Retailers:-

Retailer is one whose business is to sell to consumer as wide variety of goods which are assembled at his premises as per the need of final users. The term ‘retail’ implies sale for final consumption rather than for resale or for further processing. A retailer is the last link between the final users and the wholesaler or the manufacturers. William staton defines retail trade as “retailing including all activities directly related to the sale of goods

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and services to the ultimate consumers for personal or non business use.” Thus, retailer is that merchant intermediary who buys goods from preceding channel members in small assorted lots and sells them in the lot requirement to the final users. At this point, it is worth nothing the distinction between a wholesaler and a retailer.

Functions- Retailer is the last link in the chain of distribution, performs good many functions of marketing of all theses following are the most significant ones:-

1. Buying and assembling- Retailer has to assemble products from different manufacturer and wholesalers as he has to keep a wide variety of stock of products to meet the varied and small requirements of large number of consumers. This assembling is possible by the prices of buying. Buying is a continuous process involving selection of best and most economical and dependable sources of supply.

2. Warehousing- Retailer is a safety value releasing the goods in quantities of different varieties in price ranges according to the consumer needs. Warehousing makes possible holding the stocks to match between the customer demand and the wholesaler or the manufacturer and the supply conditions. It is possible to have adequate and uninterrupted supply of goods.

3. Selling- The final aim is to sell products so bought and held by him. Retailer is rightly called the buying agent of the consumer. He is the means to dispose the goods to the consumers for the producers and wholesalers and collect the sales revenue for them. Successful retailing needs good deal of salesmanship tactics.

4. Risk-shouldering- Risk shouldering is the basic responsibility of a retailer arising out of physical deteriorations and changes in price. These are unavoidable as he holds sufficient and variety of inventories from the time they are bought till they are sold to the consumers. The risk of loss is seen number of forms such as calamities- fire, flood, cyclone, and earthquake etc. due to change in the fashion and so on.

5. Grading and packing- Retailers undertake secondary or second round grading and packing activities left by the manufacturers and wholesalers. Classification of goods into different grader and lots is common. As the sells in loose packs and very odd lots, packing assumes a particular importance. Such packaging can be highly standardized or can be as per the individual requirements.

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6. Financing:- In the whole scheme of marketing, the contribution of retailers is really worth emphasizing in so far as consumer financing. His financing consist of credit granted on liberal terms to the consumers, investment made in large variety of stocks, the expenses of holding stock, salaries and wages of watch and ward staff and other trade expenses

7. Advertising :- Retailers are the best agents to advertise the products, services and ideas. In collaboration with wholesalers and manufacturers retailers do undertake shop display, distribution of sales literature, introduction of new production a convincing way as he recommends what is right or wrong to a particular customer.

8. Supply of market information:- Retailers really enjoy enviable position in so far collecting information from the horse’s mouth. As being in close and constant touch with consumer, he clearly keenly observes, studies the consumer behavior, changes in the taste and fashions and therefore, demands. This collected information is passed on to the manufacturer and the wholesaler for their perusal and necessary action for future adjustment and success.

The type of retailer:-

The retailers can be classified in number of ways. However, the most practical and popular way is that of small scale and large retailers with further sub-classifications as under:-

1. Small scale retailers:- The some small scale retailer explain are as under :-

A) Unit stores: -

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Unit store are the retail stores run on proprietary basis dealing in general stores or single line stores such as drugs, clothes, grocery items, hardware, shoes, books, utensils, etc. single line stores are mostly called as specialty shop as they may specialize in one line only.

B) Street traders- Street traders are the retailers who display their stocks on footpaths or the sidewalks of busy spots of cities and towns. The most prominent place is bus stand, railway stations, parks, and gardens, squares and so on. They deal in light goods in demand.

C) Market traders:- These retailers open their shops on fixed day or date in specified area. The tine interval may be a week or a fortnight or a month. They do join fairs and festivals. They deal in general or special line stores. These retail outlets have fixed type of arrangements with built-inflexibility.

D) Hawkers and peddlers- These classes of retailers have been there in the entire centre from the time immemorial. They do not have any fixed place of business. They carry the goods from one place to another on hand carts, selling the goods from door to door. They keep on moving from locality and business to business with the change in the season. Thus, ice candy seller has a brisk business in summer and may change over to corn flakes in rainy and winter season.

E) Cheap-jack- Cheapjack is a retailer who has fixed place of business in a locality but goes on changing his place to exploit market opportunities. Change in locality is quite common in place of these retailers. These deal in cheap verities of readymade garments, plastics, shoes and the like. However the speed of change in locality is not as fast as that of hawkers and peddlers.

F) Syndicate stores- It is an extension of theory of mail order business on small scale. Syndicate stores are known for widest variety of goods in a product line but of known brands. These retailers by most of the unbranded varieties and try to sell under their names. These apply to readymade garments, machinery items and so on.

2. Large scale retailers:- The some large scale of retailers is explained are as under:-

A) Departmental stores- It is a large retail store dealing in a wide variety of goods under single roofs. It is essentially an urban retail outlet designed for mass sale dealing in almost aspirin to zip, mostly catering to the needs of higher income groups. It is a central location and unified control. It is known for orderly arrangement of product in a separate departments

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and it lays emphasis on consumer service. The best example of this type in India are- ebony stores, Spencer, super markets.

B) Multiple store shop- Multiple shops or a chain store is a system of branch shop operated under a centralized management and dealing in similar lines of goods. It is chain of retail stores dealing in identical and generally restricted rage of article operating under different localities under central ownership and control. The attributes of multiple shops are-cash and carry-limited lines of articles-items are consumer durables-decentralized selling in different localities. The examples of these kinds are: - Bata shoes, swastika shoes, flake shoes, carona shoes.

C) mail order houses- As the title suggests the seller contacts the buyer through some form of advertisement. That is the customers do not visit the seller premises nor there is personal inspection of goods enforce the purchase through the postal medium mostly through V.P.P. or registered post that is why some prefer to call it as selling by post. As the goods are sent through posts parcel, the article must be well known, describable, command demand and are durable, in addition to high value. The examples of this kinds are- patents medicines and chemicals, jewelers, leather goods, readymade garments and so on. These units are confirmed to cosmopolitan areas. Thus mail order sales limited of Mumbai deal in ‘bull worker’ a fit-kit.

D) consumer cooperatives – These are the retailers or stores owned by a group of consumer themselves on cooperative principles. It is an association of consumer to obtain their requirement by purchasing in bulk and selling through the store to the member and non-member consumers. It believes in wholesale buying and retail selling at reasonable price then prevailing in the open market. Almost all towns of cities in India come across these consumer cooperatives. The common name chosen is ‘Apna Bazaar’ or may be named after a locality say ‘Bardez Bazaar’ in north Goa.

E) Fair price shops- These are the retailer outlets started by the manufacturers in different cities and towns to sell at prices which are quite fair. This practice is very common with every state of the country used as a means for public distribution. Thus, it can be a private, public or even a corporative sector unite engaged in retail business to ensure regular equitable and adequate supply of essential commodities at just or fair prices. These are designed to meet the requirements of the weaker sections of the society for ration etc.

3) Agent middlemen-

Agent middleman is as important as merchant middlemen. Agent middlemen are those channel component who helps in the transfer of goods from the hands of producers to the hands of ultimate users without acquiring the ownership of theses good, therefore they do not assume any risk involved in marketing of goods and they operate for a

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commission and act on behalf of account but render a valuable service of bringing together the buyers and seller assume the role of striking a transaction for commission. The type of agent middlemen

1. Commission agent- He buys and sells goods for his principles in return for commission he may or may not buy in his name but he does not assume any risk. He gets a fixed rate of commission for the business done he has expert knowledge of all the commodities in which he is trading. He keeps close contact with the producers and dealers on the one hand and the market trends on the other. he procures goods as per the instructions of his principles he gets order and is responsible for arranging and packing, transport and delivery of goods including granting of credit and collecting the payments and the dues. He has the right to charge his principles of the goods purchased and the expenses. Incurred and the shared commission.

2. Brokers- Broker is an agent who is employed to make bargain and contracts in matter of trade, commerce or navigation between the two parties for a compensation known as brokerage. He is an independent agent who negotiates bargains or agreements between two or more parties for exchange. He brings the intending buyer and the seller together. Broker specialized in a particular branch of commerce. Thus we have producers, brokers, stock brokers, ship brokers, insurance broker and so on. Brokers tender useful services to both the parties of exchange. First they are brought into contact with one another. Secondly they make actual arrangement for the delivery of goods. Thirdly they maintain extensive organizations to keep in touch with suppliers and customers. Fourthly they give valuable advice to both the parties on the issue of marketing affecting their interests.

3. Factors:- Factors are an agent employed to sell the goods or merchandise consigned or delivered to him by or his principal for compensation. Thus his major role is to sell the goods assigned to him under the instruction of principles.

4. Auctioneers- There are some class of products whereby the sale takes place by auction. The products like jewellery, tobacco, tea, automobile art piece, land and building are more commonly sold by auction. Auctioneer is the legal agent of the seller till the goods are knocked down to the highest bidder. He is the intermediary between the buyer and the seller. His dealings are mostly on the cash term. He takes the possession of the goods and remits the return of the sales after deducting his expenses and commission. The auction is with ‘reserve price’ or ‘without reserve price’. The first one implies that the bidder starts with the minimum price. Auction sale is always open to general public. Thus it needs a wide publicity as to time and place

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of auction through newspaper, catalogue, posters, leaflet, and the like. The ads give the detail of auction.

5. Selling agent- Selling agents are the intermediaries who are given exclusive franchisee for a limited market segment. He performs all the activities of the independent middlemen taking over all the selling activities of a producer. He controls the prices and the terms and conditions of the sale. Selling agents are to be differentiated from the sole agents. The difference lies in the restrictions imposed in regards to territorial operation, products handled and the customers served. Sole agents are the exclusive agents for substantially whole of the output without any territorial restrictions. Sole agents totally free the producers and manufacturer from the botheration of the disturbance.

6. Forwarding and clearing agent- These are the middlemen employed to collect, deliver and otherwise forward the goods on behalf of others. Most of the manufacturing units, with gradual expansion and growth of their business find it necessary and essential to employ such middlemen. To relieve them from the tedious work of collecting, delivering and forwarding the goods to the destination. The agent middlemen have been indispensible in foreign trade. Forwarding agent receives the goods from the exporter and arrange for the shipment of these goods to the destination. Clearing agents receive goods from abroad on behalf of the importer at the port of entry and arrange for clearance. They have professional touch and operational efficiency for which one bows down.

7. factors- Factors is an agent to sell the good and merchandise consigned or delivered to him by his principal for a compensation. Thus his major role is to sell the goods assigned to him by his principal under the instructions. Since selling is his responsibility, so he can sell the goods in his own name, he can sell at such prices and times he thinks the best. He can sell on credit he can sell on credit and receives payment and issues valid receipt on behalf of his principals. He has the lien of goods in his possession and for the charge due to him and recovery of advance payment made. Thus, he takes the possession of goods and sells in his own name for a commission. He finances his principals by making advance payment or immediate payment.

Functions of a Distribution Channel:-

The main function of a distribution channel is to provide a link between production and consumption. Organizations that form any particular distribution channel perform many key functions:-

Information Gathering and distributing market research and intelligence - important for marketing planning

Promotion Developing and spreading communications about offers

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Contact Finding and communicating with prospective buyersMatching Adjusting the offer to fit a buyer's needs, including grading, assembling

and packagingNegotiation Reaching agreement on price and other terms of the offerPhysical distribution Transporting and storing goodsFinancing Acquiring and using funds to cover the costs of the distribution channelRisk taking Assuming some commercial risks by operating the channel (e.g. holding

stock)

All of the above functions need to be undertaken in any market. The question is - who performs them and how many levels there need to be in the distribution channel in order to make it cost effective.

Distribution - channel strategy:-

The following table describes the factors that influence the choice of distribution channel by a business:

Influence Comments

Market factors

An important market factor is "buyer behavior"; how do buyers want to purchase the product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the Internet? Another important factor is buyer needs

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for product information, installation and servicing. Which channels are best served to provide the customer with the information they need before buying? Does the product need specific technical assistance either to install or service a product? Intermediaries are often best placed to provide servicing rather than the original producer - for example in the case of motor cars.

The willingness of channel intermediaries to market product is also a factor. Retailers in particular invest heavily in properties, shop fitting etc. They may decide not to support a particular product if it requires too much investment (e.g. training, display equipment, warehousing).

Another important factor is intermediary cost. Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. This might be deemed unacceptably high for the ultimate producer business.

Producer factors

A key question is whether the producer has the resources to perform the functions of the channel? For example a producer may not have the resources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors.

Producers may also feel that they do not possess the customer-based skills to distribute their products. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers.

Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold. If a manufacturer sells via a retailer, they effective lose control over the final consumer price, since the retailer sets the price and any relevant discounts or promotional offers. Similarly, there is no guarantee for a producer that their product/(s) are actually been stocked by the retailer. Direct distribution gives a producer much more control over these issues.

Product factors

Large complex products are often supplied direct to customers (e.g. complex medical equipment sold to hospitals). By contrast perishable products (such as frozen food, meat, bread) require relatively short distribution channels - ideally suited to using intermediaries such as retailers.

Distribution Intensity

There are three broad options - intensive, selective and exclusive distribution:

1. Intensive distribution: - aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another.

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2. Selective distribution: - involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e.g. training) on them. Selective distribution works best when consumers are prepared to "shop around" - in other words - they have a preference for a particular brand or price and will search out the outlets that supply.

3. Exclusive distribution: - is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

Types of distribution

Distribution channels are the pathways that companies use to sell their products to end-users. B2B companies can sell through a single channel or through multiple channels that may include

Direct/sales team: One or more sales teams that you employ directly. You may use multiple teams that specialize in different products or customer segments.

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Direct/internet: Selling through your own e-commerce website.

Direct/catalog: Selling through your own catalog.

Wholesaler/distributor: A company that buys products in bulk from many manufacturers and then re-sells smaller volumes to resellers or retailers.

Value-added reseller (VAR): A VAR works with end-users to provide custom solutions that may include multiple products and services from different manufacturers.

Consultant: A consultant develops relationships with companies and provides either specific or very broad services; they may recommend a manufacturer’s product or simply purchase it to deliver a solution for the customer.

Dealer: A company or person, who buys inventory from either a manufacturer or distributor, then re-sells to an end-user.

Retail: Retailers sell directly to end-users via a physical store, website or catalog.

Sales agent/manufacturer’s rep: You can outsource your sales function to a company that sells different manufacturers’ products to a group of similar customers in a specific territory.

Distribution is one of the classic “4 Ps” of marketing (product, promotion, price, placement a.k.a. distribution). It’s a key element in your entire marketing strategy — it helps you expand your reach and grow revenue.

Here are three distribution examples:

DIRECT TO END USERSSELL THROUGH A DEALER NETWORK

SELL THROUGH A VAR (VALUE-ADDED RESELLER)

You have a sales team that You have two markets and You sell a product to a

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sells directly to Fortune 100 companies. You have a second product line for small businesses. Instead of using your sales team, you sell this line directly to end-users through your website and marketing campaigns.

two distribution channels. You sell a product through a geographical network of dealers who sell to end-users in their areas. The dealers may service the product as well. Your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials.

company who bundles it with services or other products and re-sells it. That company is called a Value Added Reseller (VAR) because it adds value to your product. A VAR may work with an end-user to determine the right products and configurations, then implement a system that includes your product.

To create a good distribution program, focus on the needs of your end-users.

If they need personalized service, you can utilize a local dealer network or reseller program to provide that service.

If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or a distributor to offer your product on their own sites.

You can build your own specialized sales team to prospect and close deals directly with customers.

Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market. If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers – and they are, since they’re buying your product and re-selling it. Understand their needs and deliver strong marketing programs; you’ll maximize everyone’s revenue in the process.

Key concepts & steps

Before you begin:-

You can evaluate a new distribution channel or improve your channel marketing / management at any time. It’s especially important to think about distribution when you’re going after a new customer segment, releasing a new product, or looking for ways to aggressively grow your business.

Evaluate how your end-users need to buy

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Your distribution strategy should deliver the information and service your prospects need. For each customer segment, consider

How and where they prefer to buy Whether they need personalized education and training Whether they need additional products or services to be used alongside yours Whether your product needs to be customized or installed Whether your product needs to be serviced

Match end-user needs to a distribution strategy

If your end-users need a great deal of information and service, your company can deliver it directly through a sales force. You can also build a channel of qualified resellers, consultants or resellers. The size of the market and your price will probably dictate which scenario is best.

If the buying process is fairly straightforward, you can sell direct via a website/catalog or perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group or a field sales team.

If you need complete control over your product’s delivery and service, adding a channel probably isn’t right for you.

Identify natural partners

If you want to grow beyond the direct model, look for companies that have relationships with your end-users. If consultants, wholesalers or retailers already reach your customer base, they’re natural partners.

Build your channel

If you’re setting up a distribution channel with one or more partners, treat it as a sales process:

Approach the potential channel partner and “sell” the value of the partnership Establish goals, service requirements and reporting requirements Deliver inventory (if necessary) and sales/support materials

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Train the partner Run promotions and programs to support the partner and help them increase sales

Minimize pricing conflicts

If you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. Then compare the price that the end-user will pay; if a customer can buy from one channel at a lower price than another, your partners will rightfully have concerns. Pricing conflict is common but it can jeopardize your entire strategy, so do your best to map out the price at each step and develop the best solution possible.

Drive revenue through the channel

Service your channel partners as you’d service your best customers and work with them to drive revenue. For example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners

REVIEW of literature

It is the most important marketing tool. Individual firms’ success depends not only on how well it performs but also on how well its entire distribution channel competes with competitor’s channel. For the purpose of completing the project effectively and in the most efficient manner, and to get the complete knowledge about distribution channels, the researcher has undergone through a lot of material on distribution channel and has used following literature survey: Chapter “Delivering Services through Intermediaries & Electronic Channels” of “Service Marketing” written by Valarie A.zeithaml and Mary Jo Bitner. The text was intended to assist about identifying & analyzing primary channels through which services are delivered to the end consumers.

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The knowledge about the marketing principles is gained from the book “Principles of Marketing” written by Philip Kotler. Chapter on Distribution Channels in the book “marketing Channels” written by Louis W.Stern & Add I.El. Ansary. Purpose of this book is to provide the detailed knowledge about what I distribution channel, its importance & role in marketing. Article published in IRDA journal, October 2006, on “A Model for Health Insurance for the Poor in India”. Article published in IRDA journal, August 2006, by Joydeep Roy & Abhishek Aggarwalon “New Product Development & Launch”. Article published in IRDA journal, December 2006, by Arman Oza on “The Importance of Delivery Mechanism”. Another article published in IRDA journal, December 2006, by S.Vishwanathan on “Role of Distribution Channels in Insurance Industry”.

Book Summary of Distribution Channels (Understanding and Managing Channels to Market) Review Many suppliers find retailers, especially the major chains, brutal to deal with and feel that they are squeezed by the retailers" power to control access to the consumers they need to reach, writes Julian Dent in Distribution Channels Understanding and managing channels to market. Recommended read for the marketing professional.

- The Hindu Business Line

This accessible, rigorous new title explores the ways in which a business can succeed in its distribution activities, through a thorough understanding of its go-to-market partners’ business models.

Distribution Channels demonstrates to readers why business models are so important, and provides key information about all of the players involved in distribution chains, including distributors, wholesalers, final-tier channel players and retailers. By interpreting the business models of various types of distribution channel, this comprehensive book illustrates how to optimize both the models and the commercial relationships between the different parties, as well as how to get products and services to market through the best routes possible.

Taking into account both the tactical and strategic dimensions of channel economics, Distribution Channels provides readers with the knowledge needed to improve their business distribution models, whether they are responsible for the distribution channels of their company or if they are a part of that distribution channel.

Covering the whole process, including accessing and servicing markets and customers, controlling brands, creating differentiation, and improving the business distribution model, this book is an essential read for anyone involved in distribution channels.

About Author:

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Julian Dent is Chairman of VIA International, a specialist routes-to-market consultancy. He has over 25 years’ experience in distribution throughout the world. His client list has included Barclays Bank, BP, Esso, Hewlett-Packard, IBM, Microsoft, Nokia, Orange, Pfizer Consumer Healthcare, Philips, SGI, Subway and Xerox.

Review of existing literature

There are numerous reasons why marketing is so closely related to the Web. Web marketing offers increased awareness to somebody who uses it, it’s an easy way to distribute information, speech, and a video presentation, improve a company image, an immediate direct line between customers and staff, and reduces costs of performing these tasks.

The unique advantages offered on the Web over conventional marketing are the following: 1) Accessibility around the clock and “it can attract people because of their interest and not because of other kind of simulative response” (Hoffman, Feb. 1996). 2) Feasibility to keep track of its audience. In contrast to conventional marketing in the web there are no distribution and printing expenses, it can be accessed for free and can be created with minimum expenses. Web’s content can be updated immediately at any time.

By analyzing the Web’s marketing perspective, the Web can be also viewed as a commercial medium, offering a number of important benefits which can be examined at both the customer and company levels. Buyer benefits arise primarily from the structural characteristics of the medium and include availability of information, provision of search mechanisms, and online product trial. All of these can facilitate the purchase decision. From the very beginning these commercial characteristics of the Web were recognized as very important; “company benefits arise from the potential of the Web as a distribution channel, a medium mostly viewed as a marketing tool, and a market in and of itself” (Chatterjee, P. and Narasimhan, A. 1994). These efficiencies are associated with Web technology and the interactive nature of the medium.

From a developmental point of view, Web marketers need to identify the extent to which companies are deploying existing models or developing new ones. One way to achieve this will be to “create innovative sites in less crowded categories, particularly as sites proliferate” (Wilson, 1996).

The World Wide Web’s marketing advantage reinforces the idea that the company's relationship with the customer must take advantage of a key feature of the medium, namely interactive, and that such relationships must be updated continuously. The interactive nature of the Web is especially “favorable to relationship building and offers marketers new opportunities to create stronger brand identities which have the potential to translate to brand loyalty and final success” (Hoffman and Novak, July 1996).

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The importance that the Web has for commercial brands can be seen though the rapid growth of demand for Web business presence through the registration domain name with Internic (Bosley, April 1996). This is the “www.companyname.com”. From the Internic’s statistics it can be seen that during the first 6 months of 1996 commercial domain names have increased over 139%. The Web creates for the enterprises a more prestigious and professional look. In the corporate world any company which has a Web site should have its own domain name. It’s easier for the people to remember a unique name as such than memorizing long url’s of shared web addresses. It’s similar to the vanity toll-free business numbers.

The World Wide Web has the potential to radically change the way businesses interact with their customers. The Web frees customers from their traditionally passive role as receivers of marketing data, gives them much greater control over the information search and acquisition process, and “allows them to become active participants in the marketing process” (Hoffman and Novak, February 19, 1996).

However, significant trends leading to commercialization exclude predictable and smooth development of commercial opportunities in the Web. Commercial development of the Web must follow the demand ("demand pull"), instead of being driven by "gold fever." “Companies will secure the benefits of innovation in interactive by being closer to the customer than ever before” (Geller, May 24, 1996).

The “more is better” approach, used to count traditional marketing success, is becoming apparent in current approaches when measuring consumer activity of commercial web sites. Derived from traditional media models, "hit" and visit counting methods implicitly defined a heterogeneous mass audience, since in traditional media, "advertising effectiveness" is tied to ratings where larger numbers are preferred.

From the SIBMA information study release of July 18, 1996 the sales generated by the World Wide Web are expected to grow rapidly in the coming years. This growth will be enormous because the Web is a new marketing and distribution channel that has the potential to take over a large portion of all commerce transacted globally. Part of its growth will be based on extending the reach of small and medium-sized marketers generating new sales. However, much of the Web's growth will be based on a transfer of commerce from other less efficient sales channels.

According to the same report the advertising revenues from the World Wide Web and the four largest online services (America Online, CompuServe, Prodigy and Microsoft Network) will total $200.1 million in 1996 and grow to $1.97 billion in 2000. The growth of Web advertising revenue, which will account for the bulk of online advertising growth, will be the direct result of the increase in the number of Web user sessions and page views. SIMBA report projects that Web user sessions will hit 15.79 billion in 2000, yielding 94.76 billion page views. The Web advertising market will total $110.0 million in 1996 and reach $1.86 billion in 2000. The greatest growth will occur between 1996 and 1997 when Web advertising revenues are expected to increase 265.8% to $402.4 million.

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From the SIMBA report it can be estimated that 14 “Web leading” ad-supported sites will account for about 75% of the entire Web revenue market. These 14 web sites include CNN, ZD Net, and Yahoo! SIMBA’s report also forecasts that CNN and ZD Net will generate the highest ad revenues with about $10.0 million each in 1996.

There is no doubt from what SIMBA’s report shows that a great deal of commercial activity exists on the Web and that this activity is increasing. Profitability from commercial activity on the Web includes “productivity savings, marketing and sales savings, and incremental or new revenue streams” (Hoffman and Novak, February 1996). Productivity savings arise from reduction in order and processing costs and more efficient inventory management. Savings may also be realized from efficiencies in the marketing and selling functions. The Web shifts more of these functions to the customer; savings result through reduced brochure printing and distribution costs, and reductions in order taking as customers use fill-out forms to prepare their own orders.

The reason the Web is growing at such an unprecedented rate is because of the incredible rate of return on the initial investment (Kling, October 1994). Every company wants to get in on the act, in its own appropriate way. Huge corporations like CBS, Sun Microsystems, AT&T, and Mobil all have their own commercial sites along with numerous others.

In addition, the profitability of a Web site depends on the level of its exposure to people. Web marketing has its share of activities that compare to traditional marketing functions. For example, in print publication marketing, "impressions" is a key word most often used in reference to some aspect of readership statistics. By comparison, "hits" or Web page accesses have become the primary area where Web measurement advocates have aimed their efforts at. Web measurement can indicate part of the success of a Web site as a marketing communications medium (Masotto, December 1995).

The commercial Web sites are comprised of 3 components. Content (text), graphical elements (graphics) and interactive channels (interactive).

By far, content is the most important of the three main components of commercial Web sites. In the final analysis, the user will know if he/she is wasting time or finding benefit in a particular Web site based on the content presented. Information is perceived differently on the Web than when published on a "traditional" medium, such as a data sheet or brochure. For this reason, the strategic Web marketer should be prepared to reformulate all applicable literature for electronic publication. Companies often make the mistake of trying to reproduce their existing collateral on the Web without modification.

The ability to display graphics on the World Wide Web has brought a highly specialized graphic art form to the attention of millions of consumers. In the same sense that a painter specializes in the placement of images on a canvas medium, digital artists prepare specialized graphics suited for display on the Internet. A very important concept is that the function of Web graphics should be to create a high-quality image for the site and/or convey product information which is easiest to understand in graphical format. Graphics

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should not interfere with the content, nor antagonize the consumer by causing unreasonably long download delays when browsing the site. The good combination of graphics and content is what makes a web site important in terms of marketing effectiveness.

While content is the most important component of a Web site, it may be rendered useless in the absence of interactive channels, i.e., buttons or "forms" which are used for commerce transactions. Lately, there has been a trend toward eliciting the e-mail address of the user so that further information can be sent via e-mail, either immediately or at a later time. The interactive aspect of the Web is more known for the use of “hyperlinks”. These are points on a Web page where the user clicks his mouse on and he’s transferred to another Web destination. With the hyperlink use the visitor of the Web site is taking full advantage of the unique interactive principle of the Web.

The initial impression of a Web site is formed by a visual combination of text and graphics and by how long the user must wait before the page is displayed in the browser. This is what is called the "Intake Stage," during which delays in display of particularly large graphics can cause the user to become impatient or even irritated, thus creating a negative viewpoint from the start. At this early point in time, the user forms an opinion about the overall image of the marketing product displayed on the site and more specifically about the quality of the goods or services being offered. This can be a fundamental element for developing specific marketing standards on the Web. Once a general opinion is formed, the user then seeks information about where they are , what other information is available (on a broad level), which links are available from there. This is what is called "Overview Stage". It is crucial to convey these three components of information clearly and quickly, because if the user believes that the site does not contain relevant information, then he/she will leave the Web site. (Novak, and Chatterjee, 1995)

By reviewing the events which occur from the time that the user interacts with a particular site, we can analyze the presence of various marketing stimuli sent to the visitor, and how each component affects the "visit" to the site. In a global sense, the ability to present an interactive marketing medium to an unlimited number of potential consumers is an important advantage of the Web over "flat" advertising and "conventional" publishing. Interactive Web forms are cost-effective and extremely efficient in handling simple automated tasks, such as processing credit card transactions, sending product information, building mailing lists, and routing visitors to appropriate locations in the Web site.

Due to the many features encountered in the analysis of such problems faced by businesses, investing and expanding to new technological phenomena, it may not be surprising to apply recent developments in the commercial and significant usage of the Web with unlimited possibilities in its worldwide reach. It may be unavoidable to guarantee feasibility of the research without narrowing down the research framework into solely aiming the marketing strategies’ development in respect to the commercial use of the Web. The primary focus of this paper is to provide insight in the statement that the World Wide Web is a marketing revolution and not just another marketing tool.

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The backbone and framework of the paper is based on this statement. The Web is indeed a marketing revolution, that will open a new horizon to future marketing development, and not just another of the many available marketing tools used in traditional mass media. The elements of content, graphic layout and interactive are points which indicate the trend that the new medium will follow in the years to come. On the other hand the increased profitability the Web has from advertising and commerce is another indication for its impending development. The existing tendency of businesses showing today a unique preference to this new communications medium adumbrates glorious future for it. Considering the indications showing such a promising future for the Web, the following two hypothetical questions have been developed in order to analyze this issue. The integral role the Web will have over marketing is going to be demonstrated when answering these questions.

“How effective are commercial sites in issues derived from marketing activities with the use of the Web?” b. Which marketing strategies are currently used on the Web and what are the possibilities to that end?

Answering the first question (a), the effectiveness of the commercial Web sites should be examined and cross-matched with sales data showing the economic success of these business sites. Both WWW-based metrics and traditional business measures are going to be examined. The comparison of the Web with traditional marketing methods shows how much important is the revenue factor as for defining the Web as a successful commercial medium.

The second question (b) demands a more practical approach. The Web itself serves as a medium to generate data. By way of the Web one can make a clear analysis of the marketing activities and strategies presently applied in the Web. Obviously the Web plays a prominent part in the research process, not only as a main issue, but also as a means to accomplish the set goals. In the process of identifying the marketing strategies of the commercial sites examined in the previous question, the following marketing criteria are examined. The richness of marketing content, how much consumer information the site offers. The ease of use which is how easy is for a person to browse through the site by the use of hot-links- this will reflect the interactive aspect of the Web site. The quality of design, i.e. the aesthetic value of the site as for design purposes, is probably the most important criterion from a marketing aspect. After gathering data based on the above criteria, the evaluation process will show the trend of marketing for the World Wide Web.

Company information

Qingdao Xinguangzheng Steel Structure Material Co., Ltd. is a joint venture enterprise set by South Korea and China in Industrial Development Area Pingdu City.

It has several subsidiary companies, such as Steel Structure Material, Machinery Manufacture, Crane and Foam Board Fabricate. The company has worker and staff of 400, 10 percent of which acquire bachelor degree or even higher.

There are 10 Senior Engineers among them. Its products have been sold to international market. Company has the qualification of the steel structure installation.

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Vardhman Industries Ltd. is one of the leading manufacturers, wholesale suppliers and exporters of a wide range of galvanized tubes, galvanized coils, galvanized steel tubes, galvanized steel coils, precision steel tubes, galvanized steel pipes, steel square tube, galvanized sheets, corrugated steel tubes, cold rolled steel sheets etc. Flawlessly engineered using latest technology, our entire range of products meet with international quality standards and immensely used for different industrial and household applications. We offer our products under the brand name of OSWAL.

About Vardhman industries

A humble beginning in Special and Alloy Steels

It was Vardhman Group's faith in the economy of the country, specifically in core industrial sector that initiated the Group's venture into the steel industry. The story of Vardhman has evolved through history from a small beginning in 1965 into a modern textile major under the dynamic leadership of its chairman, S.P.Oswal. His vision and insight has given Vardhman an enviable position in the textile industry. Under his leadership, Vardhman is efficiently using resources to innovate, diversify, integrate and build its diverse operations into a dynamic modern enterprise. Vardhman Special Steels began way back in the year 1972 with the commissioning of Oswal Steels at Faridabad to manufacture Special &

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Alloy

Steels, with an initial capacity of 50,000 Metric tons per annum.

1986 was the turning point in the history of Vardhman Special Steels. The Company acquired another plant at Ludhiana, which was later upgraded with the latest state-of-the-art technology to an installed capacity of 1, 00,000 Metric tons per annum.

The economic scenario in India underwent a major change. Increased liberalization opened up the economy and many new automobile manufacturers entered the field. This created a large demand for good quality special and alloy steels at competitive prices.

In order to meet the stringent quality requirements of the global players, an ultra modern Steel Melting Shop comprising of a 30 ton UHP Electric Arc Furnace and a 9/16 meter Bloom Caster with Electromagnetic Stirrer were installed in 1995. A Vacuum Degassing System capable of reaching a vacuum of less than 1.0 milibar was commissioned in the year 2000.

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Vardhman Group is a leading textile conglomerate in India having a turnover of $700 mn. Spanning over 24 manufacturing facilities in five states across India, the Group business portfolio includes Yarn, Greige and Processed Fabric, Sewing Thread, Acrylic Fibre and Alloy Steel.

Vardhman Group manufacturing facilities include over 8,00,000 spindles, 65 tons per day yarn and fibre dyeing, 900 shuttle less looms, 90 mn meters per annum processed fabric, 33 tons per day sewing thread, 18000 metric tons per annum acrylic fiber and 100,000 tons per annum special and alloy steel.

Engineered for the future

Vardhman Special Steels incorporates some of the most advanced manufacturing facilities with equally reliable support facilities. The plant has well conceived layout plan with modern material handling facilities-all designed for economic processing of materials and human skills. Vardhman ability to adopt changes in technology is evident in its extensive use of automation and contemporary concepts.

VARDHAMAN STEEL ENTERPRISES

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Dealing in a comprehensive range of Stainless Steel, Aluminum and Copper coils/Bus Bars/Wires/Sheets/Plates, C.R. Sheets, H.R. Sheets, MS Plates, MS Structures, and specialist in earthing material like GI STRIPS, GI WIRE etc.

KNOW VARDHMAN:-

Leveraging a team of experts and innovative resources, we, Vardhman Steel Enterprises, are catering to the requirements of engineering, construction, hand tools and allied sectors. A budding company, we are a well known supplier of Stainless Steel, Copper products like Coils/Flats/Wire/Plates, Aluminum products like Flats/Sheets and Special Extrusions (as per customer based), Mild Steel products like CR Sheets, HR Sheets, MS Plates, MS Angles, MS Channels, MS Beam, MS Flats, along with, specialty in Earthing Material like GI Flats, GI Wire, GI Plates and many more products. These products are available in different grades, various sizes and other technical specifications in order to meet the varied industrial requirements of our clients. The products are procured from prominent manufacturers, who make sure that these are fabricated in compliance with the international quality standards and industry norms.

We are managed by a highly qualified managerial team and other professionals, who strive to maintain international quality standards along with efficient delivery schedules in order to achieve total customer satisfaction. Our workforce comprises procurement agents, quality controllers, distribution members, sales personnel and others, who form the backbone of our business entity. Each professional has thorough knowledge of the industry and is aware of growing demands of the market and client's requirements. Moreover, our streamlined administration, regular follow-ups with clients and prompt dispatch of ordered products have enabled us to win the trust of our clients.

About Vardhman group(History)

The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known as the "Manchester of India". Within the precincts

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of this city is located the Corporate headquarters of the Vardhman Group, a household name in Northern India. The Vardhman Group, born in 1965, under the entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed into one of the largest Textile Business houses in India.

At its inception, Vardhman had an installed capacity of 14,000 spindles, today; its capacity has increased multifold to over 8 lacks spindles. In 1982 the Group entered the sewing thread market in the country which was a forward integration of the business. Today Vardhman Threads is the second largest producer of sewing thread in India. In 1990, it undertook yet another diversification - this time into the weaving business. The grey fabric weaving unit at Baddi (HP), commissioned in 1990 with a capacity of 20,000 meters per day, has already made its mark as a quality producer of Grey poplin, sheeting, and shirting in the domestic as well as foreign market. This was followed by entry into fabric processing by setting up Auro Textiles at Baddi and Vardhman Fabric at Budhni, Madhya Pradesh. Today the group has 900 shuttleless looms and has processing capacity of 90mn meters fabrics/annum.

In the year 1999 the Group has added yet another feather to its cap with the setting up of Vardhman Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in Acrylic Fiber production undertaken with Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hong Kong, Korea, UK and EU in addition to the domestic market. Adherence to systems and a true dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002 quality award which is the first in Textile industry in India and yet another laurel to its credit.

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MISSION

Vardhman aims to be world class steel organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of- the-art technology and human resources. Vardhman is committed to be responsible corporate citizen.

Company overview

Vardhman Special Steels Limited produces special and alloy steel hot rolled bars for engineering, automotive, tractor, bearing, and allied industries in India.

It offers plain carbon, case hardening, free/semi free cutting, spring, ball bearing, boron, micro alloy, and special application steels. The company was founded in 1962 and is based in Ludhiana, India.

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Vardhman Special Steels Limited operates as a subsidiary of Vardhman Textiles Ltd. Vardhman Special Steels Limited operates independently of Vardhman Textiles Ltd as of March 15, 2011. Vardhman Industries was established in the year 2000.

The state of the art manufacturing facility is located at Patiala with an annual capacity of production 50,000 mt. VardhFman Industries Ltd. (VIL) manufacturers GP/GC under the brand name of OSWAL, in size range of 0.14 mm to 0.8 mm thickness, and width of up to 1100 mm, conforming to all leading national & international specifications.

Vardhman Industries Limited is the leading manufacturer and exporter of galvanized pipes, steel pipes, steel square pipe, steel black pipes, industrial steel pipes, steel rectangular pipe, steel square pipes, galvanized steel pipes.

Company also manufactures tubes made of CRCA, to meet the needs of the Automobile Industry and the General Engineering Industry.

Vardhman Special Steel is a niche player in the special and alloy steel market of India. With installed capacity of 1,00,000 MT per annum, Vardhman offers alloy steel made with contemporary technologies like electro-magnetic stirrers, vacuum degasification, auto mould level controlled and auto controlled cooling etc.

With continuous research and development efforts, Vardhman Special Steel meets the stringent quality requirements of commercial vehicles, tractors, cars, two wheelers; define applications, railway components and other engineering products. Vardhman Special Steels incorporates some of the most advanced manufacturing facilities with equally reliable support facilities.

The plant has well conceived layout plan with modern material handling facilities-all designed for economic processing of materials and human skills. Vardhman ability to adopt changes in technology is evident in its extensive use of automation and contemporary concepts.

Vardhman Group - A PROFILE

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S.P. Oswal Chairman & Managing

Director

The Vardhman Group was established in 1962 at Ludhiana (INDIA) and presently has interests in core sectors of textiles, Cotton / Blended Yarns, Sewing Thread, Fabric, Acrylic Fiber and Special Steels.

The Vardhman Group has always emphasized on total customer focus in all operational areas. It has continuously monitored and nurtured relationships with all customers and business associates. Vardhman believes in:-

Absolute market orientation for a quick and positive response to the customer's needs.

An uncompromising commitment to a flexible, professional and personalized service from within a stimulating result-oriented environment.

Delivery to a consistent standard, competitively and meeting deadlines.

Responsive approach to the benefits of R&D and modern technology.

Having faith in individual potential and respect for human values.

Being a responsible corporate citizen with due respect to the laws of the land and its environment.

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These values underlie the corporate philosophy that has shaped Vardhman of yesterday into the Vardhman of today and which will continue to guide it in the 21st century.

The Vallabh Group, a USD 125 million conglomerate, has become a symbol of excellence and the first choice for those who never compromise on quality and service. Vardhman Industries Ltd.(VIL) manufacturers GP/GC, under the brand name of OSWAL, in size range of 0.14 mm to 0.8 mm thickness, and width of up to 1250 mm, conforming to all leading national and international specifications.

VIL's pride is its technically advanced Color Coating Plant, a state-of-the-art facility capable of matching and surpassing international standards, across a range of applications and systems. We are leading manufacturer and exporter of galvanized coils, stainless steel coils, repainted coils, rolled stainless steel coils, hot rolled stainless steel coils, corrugated galvanized coils, rolled repainted coils etc. Incorporated in 1986, we are a leading manufacturer and exporter of Steel Pipes & Tubes. Our excellence in engineering, a genuine team spirit, clear objectives, ethical business practices and well-defined goals have infused an accelerated pace of growth in the market expansion of our company.  We endeavor to elevate our standards of product & performance so as to achieve customer satisfaction through excellence in quality. To ensure established standards of quality and achieve customer satisfaction, our entire manufacturing units have adopted a streamlined programmer on Quality Control. Leveraging on a well-structured work process, quality is imbibed at every stage of manufacturing.  We are continually serving to the needs of various industries like petrochemicals, off-shore oil drilling companies; cement industries, pesticides, engineering firms, and many more by offering our innovative products to them. Our tendency to design something new has helped us a lot in reaching our present position. We are also considerate about quality, rather than quantity.  Overtime, through the consistent supplies, quality & competitive price, we've managed to gain confidence of our customers. Customers' satisfaction and confidences gives us motivation to keep on improving our services and performing better than earlier. Financial soundness & well-qualified personnel help us to meet our mission to satisfy our customers to the highest. All our products are procured from reliable and certified manufacturers ensuring an impeccable array.

PHILOSOPHY

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Across the boundaries of time and space, the best transmission and perseverance of culture, values and philosophy is only through the hearts of people.

   Employees in Vardhman are its most valuable resource and development of business and of

employees must go hand in hand.

     Every employee is special and unique in his own field and has infinite potential to make

contribution to the organization.

     Merit is the most important criteria for recruitment and reward.

     Creativity and innovation in technology and management through our people is our

competitive edge.

     HR processes facilitate consistent improvement in performance, productivity and effectiveness

through mutually agreed stretched targets.

     Continuously strive to improve quality of work-life for total job satisfaction and social

harmony for the employees.

     HR prepares people to accept and adapt to change and learning as a way of life.

     HR promotes high standards of discipline at the workplace and compliance with the laws of

the land.

     Prepares youth for executive role in business as a major social responsibility.

Performance

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During the last 5 years, Vardhman Group has recorded 10 percent top line growth rate,

which is higher than the industry average growth rate. The Group turnover has grown

from Rs 723 crores in 1995 to Rs 3186.32 crores (about USD 700 million) in 2008-09.

The exports has grown from negligible level in early nineties to Rs 689 crores (USD

150 million) in 2008-09.

1. Financial Indicators Of Vardhman Group (Rs. In Crores)

ParticularsGroup Group Group Group Group

  2008-09 2007-08 2006-07 2005-06 2004-2005

Gross Sales 3186.32 2692.93 2454.00 2210.27 2219.34

Fob Value Of Exports 688.67 495.73 482.93 402.67 445.81

Profit Before Tax 137.41 204.80 264.73 259.53 190.62

Cash Accrual (PBT + Dep.) 380.79 376.74 398.32 377.33 305.26

Gross Block 3935.47 3460.86 2467.71 2079.37 1802.54

Net Block 2571.33 2219.22 1386.84 1124.31 954.55

Capital Employed 4555.61 3917.86 3181.18 2438.86 1817.96

 

2. Financial Indicators Of Vardhman Group (USD In Millions)

ParticularsGroup Group Group Group Group

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  2008-09 2007-08 2006-07 2005-06 2004-2005

Gross Sales 692.68 656.81 543.64 498.93 493.96

Fob Value Of Exports 149.71 120.91 106.99 90.90 99.22

Profit Before Tax 29.87 49.95 58.65 58.58 42.43

Cash Accrual (PBT + Dep.) 82.78 91.89 88.24 85.18 67.94

Gross Block 855.54 844.11 546.68 469.38 401.19

Net Block 558.98 541.27 307.23 253.79 212.45

Capital Employed 990.35 955.58 704.74 550.53 404.62

PRODUCT PROFILE Available in various specifications, our range of products is highly demanded for its best efficiency, high durability, easy installation and several more attributes. We offer a wide range of products that include:

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CR / HR Coils and Sheets MS Plates / Angles / Channels / Beams / Flats / Chequered Plates. Copper Bus Bars / Strips / Wire / Plates Aluminum Flats / Sections /Chequered Plates/ Extrusion GI Flats / Wires / Plates. Stainless Steel Sheets / Flats / Pipes / Plates.

Quality Assurance & Vendor Base:- Being a well known supplier, we have been associated with reputed vendors who are selected after stringent analysis. We make sure that the selected vendors are highly experienced in the respective domain and they have the ability to meet bulk requirements of our products. This helps us in maintaining very good business relations with our clients, who are some of the renowned names in their field of work. Our utmost efforts are targeted to attain maximum client satisfaction and meet their growing expectations. We have selected our vendors after thorough assessment of various factors such as strong ethical standards, cost effectiveness, past client's service and many other factors. Our associations with well known vendors or manufacturing companies allow us to source our range of Stainless Steel, Copper products, Aluminum products, Mild Steel Products etc., are well known for high quality standards. The swift delivery schedules maintained by our vendors enable us to ascertain on-time delivery of ordered products to the client's specified destination.

Warehousing Unit:- We have established a well-equipped warehousing unit that is tactically located at a place well connected with several transportation mediums. The unit is properly segmented into different sections, where each of our Stainless Steel, Copper Flats, Aluminum Flats, C.R. Sheets, H.R. Sheets etc., are stored in separate sections. For easier identification of the stored products, every section is properly labeled with the product name, size and other technical specifications. This speeds up the storage as well as retrieval process, ensuring that we complete the bulk orders on time. The warehouse is also properly maintained in terms of moisture and temperature so as to ascertain the original quality of stored products.

Copper Products

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Copper plate

Copper Flat Bus Bars

Copper Strip

Copper Wire

Stainless Steel

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Stainless Steel Flats

Stainless Steel Rods

Steel Products

Aluminium Busbar

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Cr sheets

Hr Sheets

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MS Plates

MS Plates

Mild Steel Angels

Mild Steel Channels

MS Beams / joists

Mild Steel Flats

MS Round Bars

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GI Flat

We are engaged in supply of G I flats that are manufactured from premium quality raw materials as per the standards mentioned by international institutions. We offer these g I flats in various specification thus meeting the varied needs of our clients at most competitive prices. These G I flats are known for the following features:

•High efficiency

•Fine finishes

•Resistant to corrosion

•Durability  We provide zinc coating thickness certificate with minimum guarantee of 80 microns. We also provide WTC (Work test certificates) of material.

TMT Bars

TMT Bars:

We offer to our clients Thermo Mechanically Treated (TMT) steel bars. They are extensively used in all types of construction activities and exhibit high bend ability features. Our products re-bend ability features due to lower carbon content, higher elongation and superior ductility characteristics makes our range of TMT steel bars the first

choice of our clients. Further our direct tie ups with the manufacturers enable us to offer them to our clients at competitive prices. We are engaged in supply of broad range includes Round &

TMT bars which are produced as per client's demand. These thermo-electrically treated bars

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have high tensile strength. In addition to this these have required ductility and better bending and re-bending properties.

PRODUCT RANGE

Vardhman Special Steels produces a wide range of Special and Alloy Steels conforming to international standards. The R & D wing is actively involved in the process and product development in order to meet any special requirement of its customers. The product range is as follows:

PRODUC T RANGE

Product Size Range

Round bar diameter (m m):

25,26 , 27, 27, 28, 30, 32 , 33, 34, 36, 37, 38, 40, 42, 44, 45, 46.5, 47, 48, 50, 52, 53, 54, 56, 57, 58, 60, 63, 65, 66, 67, 68, 70, 71, 72, 75, 80, 85, 90.

Round Corner Square (mm):

45,50, 51, 5, 54, 55, 60, 63, 70, 75, 80, 90, 100,

Peeled / Peeled & Center less Ground bar :

22 mm to 73 mm Dia.

Drawn / Drawn & Center less Ground bar:

21.35 mm to 50 mm Dia.

* Diameters 95; 100; 105; 110mm & RCS – 110; 125mm can be rolled depending upon reduction ratio Requirement.

Steel Category

Plain Carbon Steel : 15C8, 35C8, 45C8, 55C8, C30, C35, C38, C40, C45CR, C48, C50, C55, C65, CK35, CK45, En2a, En3, En32B, En42, En43, En43AM, En5, En8, En8DCR, En9, JDMA1045, S20C, S25C, S35C, S38C, S40C, S43C, S45C, S48C, S50C, S53C, S58C, SAE1006, SAE1008, SAE1010, SAE1015, SAE1016, SAE1018, SAE1019, SAE1020, SAE1025, SAE1030, SAE1035, SAE1037, SAE1038, SAE1040, SAE1041, SAE1045, SAE1047, SAE1050, SAE1052, SAE1055, VS13111, 1E1771, 1E0065, 080A47.

Carbon Manganese Steel :

20Mn2, 27C15, 27Mn2, 37C15, 37Mn2, En15, En15A, En15B , JDMA1041F, SAE1524, SAE1541, 45M5, S355J2+N, St52-3, 150M36R,1E0170

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Case Hardening Steel

Chrome Steel : 15Cr3, 17Cr3, SCr415H, SCr420H

Chrome Manganese Steel :

16MnCr5, 16MnCrS5, 20MnCr5

SCM Category Steel /Chrome- Molly Steel :

SCM415H, SCM418H, SCM420H, XSCM318H, SCM822H, 20MoCr4E, 16CD4, 20CD4

Nickel Chrome / Nickel Chrome Molly Steel :

SAE6820H,SAE8622, SAE6825, SAE8822, En351,En352, En353, En354, En355, 15CrNi6, 16CrNi4,17CrNiMo6,19CrNi5,20NiCr6,20NiCrMoS6-4, SAE3420, 815M17, 20CrNi4, 18NCD6

Chrome-Molly Steel :

SAE6820H,SAE8622, SAE6825, SAE8822, En351,En352, En353, En354, En355, 15CrNi6, 16CrNi4, 17CrNiMo6, 19CrNi5, 20NiCr6, 20NiCrMoS6-4, SAE3420, 815M17, 20CrNi4, 18NCD6

Through Hardening Steel

Chrome Steel : 34Cr4, 37Cr4, 40Crl, 40Cr4, 40Cr4B, 40Cr4C, 41Cr4,41Cr4, 45XGOST, En18, En18C, En18D, SAE5115, E5120, SAE5132, SAE5135, SAE5145H, SAE5150, SAE5160,

Chrome Molly Steel :

25CrMo4, 40CrMo2, 40MoCr4, 42Cr4Mo2, 42Cr4Mo4,42CrMo2, 42CrMo4,AISI4142H, AISI4150, En19, En91C,SAE4130, SAE4135, SAE4137, SAR4140, SAE4142,SAE4147, 708M42, ETN22, V2250-97, 42CD4, 25MoCr4

SCM Category Steel :

SCM435, SCM435H

Chrome/ Ni- Molly Steel :

SAE8640, 40NiCrMO4, SAE4340, En24

Molly Steel : 35Mn6Mo3, En16, En16C, En17, SAE4027

Other Categories

Boron Steel :

SAE41B30, SAE1036B, SAE15B35H, SAE10B25H, 38B3,SAE15B41H, 58CRMNB4, SAE40B37, 30MnB4, SCrB435H,TIE2135, TIE2169, 20MnB5, 20MnCrB5, TIE0312,TIE0166, 1E28

Micro Alloyed Steel :

SAE1137V, 38MnSiVS5, C70S6, 38MnVS6, SBMA740, 38MnSiVS5

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Vanadium Steel : 20MnV6, 31CrV3, SMnV440- Annealed- Peeled and Ground- Cold Drawn

Nitriding Steel : 1E1286

Ball Bearing Steel : En31, SAE52100, DIN100Cr6

Free/ Semi Free Cutting Steel :

En15AM, En18DM, En1A, En8DM, En8M, SAE1117, SAE1118, SAE1137, SAE1140, SAE1141, SAE1144, SA1145S, SAE1215,

Cutting Steel : SAE1141, SAE1144, SA1145S, SAE1215

Spring Steel : En45, En45A, 55SI7, 60SI7, 37MnSI5, SUP11A, SUP9G,50CrV4, En47, 38XC, 52Cr4Mo2V, 59CrV4, SAE4161H, SUP12,51CrV4

High Titanium Steel : SA836, H-MN TI

SECTION Available Sizes (mm)

Round

Corner

Square

40, 45, 50, 51.5, 54, 55, 60,  63, 70, 75, 80, 90, 95, 100, 110, 125

Round Bars 20.64, 22, 23, 25, 26,27, 28, 30, 32, 33, 34, 36, 37, 38, 40, 42, 44, 45,

46.5, 47, 48, 50, 52, 53, 54, 56, 58, 60, 63, 65, 66, 67, 68, 70, 71, 72,

75, 80, 85, 90, 95, 100, 105

Supply

Condition

- As Rolled - Annealed / Air Blast Normalized

- Peeled & Ground - Cold Drawn & Ground

Length 4 to 6 mtr with 10% shorts down to 1 meter. Or  as specified.

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Steel quality

In order to achieve total customer satisfaction it is important to meet their expectations in terms of quality and prompt, professional response to their needs. It is this belief that makes Vardhman fully geared to provide pre and post sales technical support to it's customers including assistance in material selection.

To ensure the right quality, Vardhman Special Steels has been quick to incorporate state-of-the-art technology in its quality control programme. At first, the process parameters and conditions are developed. Later, these are constantly monitored throughout the entire manufacturing process. The quality parameters are repeated within a narrow range from heat to heat.

The final produce is then inspected and tested to ensure compliance with the customer's requirement. Appropriate statistical quality control systems and the latest testing facilities are the hallmarks of Vardhman's Quality Assurance Department.

Manufacturing Facilities and Quality

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The state of the art manufacturing facility is located at GT Road, village - Beopror, shambu Near Rajpura, Distt-Patiala (Punjab) with an annual capacity of production 50,000 mt. Vardhman Industries Ltd.(VIL) manufacturers GP/GC under the brand name of OSWAL, in size range of 0.14 mm to 0.8 mm thickness, and width of up to 1100 mm, conforming to all leading national & international specifications. VIL's pride is its technically advanced Color Coating Plant, a state-of-the-art facility capable of matching and surpassing international standards, across a range of applications and systems. Vardhman Industries Limited is the leading manufacturer and exporter of galvanized pipes, steel pipes, steel square pipe, steel black pipes, industrial steel pipes, steel rectangular pipe, steel square pipes, galvanized steel pipes etc.

Galvanizing Unit It has an INOX Continuous Line, capable of Galvanising 0.14 mm to 0.8 mm thick and 450 mm to ±Mb mm wide Steel Galvanized Sheets, Steel Galvanized Coils, Zinc Coating of a maximum of up to 275 gms per sq.mtr. And having an installed capacity of 75,000 tonnes per annum. The Unit is equipped with an online skin pass and stretch leveler mill to produce GPSP, and also has facilities to produce Slit Coils, Plain Sheets and Corrugated Sheets.

Color Coating Line VIL's Color Coating Plant is fully imported unit, with the latest technology having 140 meters length and designed with the latest Two Coat Two Bake System, with an accumulator at each end. The Primer and Top Coat are applied in the same run, leading to Zero Wastage of Coils. Two Reverse Roller Coating Machines ensure uniformity, quality and performance of the paint system. Each machine is capable of coating the front and back, and can be used to coat four colors in one run to provide Two Side Coating (C2S) for special customer requirements. The distinct advantage of the coil coating process is its ability to provide a uniform coating with very reproducible thickness, color and gloss, in order to achieve better life and aesthetics. High quality galvanized/ galvalume sheet in coil form is unwound skin passed, Super quality galvanized coils cleaned, Brushed, Rinsed, Degreased & than under goes chemical pre-treatment which includes surface conditioning conversion coating chromatin & drying OSCOL satisfies up to 1000 hrs. Salt spray test. OSCOL color coated coil can be formed into the required shape & Forming as an industrial technique easily controllable-correctly chosen corrosion protection gives coil / sheet very long life time. The range of color & coating type available is very large.

Quality Commitments "Quality First" is the main motto of VSL. The Plant is equipped with latest testing facilities required to test / inspect the finished products, as per various Indian and

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International Standards viz BS, DIN, ASTM etc. Comprehensive process control is maintained at all stages, right from raw material selection to shipping of finished goods. All test records are documented & maintained.

Vardhman Commitment on Eu Directive 2002 / 95/Ec (Rohs) To keep pace with international requirements of customer’s worldwide; Vardhman Industries Ltd. has already become Rohs Compliant unit.

Building / Construction – Roofing & wall cladding louvers fencing & Awning, False ceilings, Sandwich panels, Porte-cabins/ Prefabricated Buildings, Utility sheds, AC ducting, Doors.

House Hold Appliances – Refrigerator, Dish washers, cooking, Washing Machines & Tumble dryers, Water coolers, Hoods, Ovens.

Electrical & Light Equipments – Lighting Fixtures, Switch boxes, Motor cases, Distribution boards, Grillers, Toasters, Air conditioners.

Furniture & Office Equipments – Steel furnace, Partition filling, Cabinet, Copy machines.

Industry/ Miscellaneous – Packaging clock dials, Computer & Peripherals.

Decorative – Architectural Panels, Curtain walling & Elevator Panels.

Advertisement – Vending Machines, Display Cases, Bins, and Signboards & Highway sign Billboards.

Transport – Bus Body building, License plates, Dash Boards.

Manufacturing Process- The manufacturing processes of various production are as follows-

Economical Roofing & Cladding Solutions OSCOL HI-RIB provides versatility and creativity, bringing a new and refreshing design to commercial, industrial and domestic buildings. The combination in

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concave and convex shapes with flats and angles in produce many aesthetic buildings fagade. HI-RIB metal profile is unmatched in terms of covered area, with good water-shedding capacity and high structural strengths. The capillary fluted side laps make its fully water tight and weather proof. Any moisture drawn in by capillary action is trapped and dispersed by normal run off. These are also used in sandwich panels as outer skin.

Some of the General Characteristics of Oscol Hi-Rib Panels are:-

Long lasting & high performance in all weathering conditions.

Provides excellent purlin spanning ability.

Low maintenance cost.

Long length and weatherproof side laps allow for design in vertical wall cladding.

Can be formed in crimp and curved sections.

Light weight, easy to handle and store.

High versatility and uniform quality.

High structural strength to weight ratio.

Process Flow

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   Raw Material 30 Top UHP Electric Arc Furnace

     

     

Bloom Caster Vacuum Degassing Ladle Refining Furnace(Secondary Metallurgy)

     

     Bloom Conditioning Rolling Mill (Optional)Heat Treatment

     

     Dispatch Testing & Inspection (Optional) Bright Bars

Steel Melting Facilities

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30 MT Ultra high power (UHP) electric Arc Furnace. (EBT Type) - GA Danielle Water cooled panels for side wall and roof. Fully automated continuous feeding system for DRI/HBI, Lime & other raw materials Emission exhausts system with bag filter for pollution control. PLC operated Coke Injector.

Ladle Refining furnace (LRF)

30 MT Ladle Refining Furnace for secondary metallurgy. Twin wire feeding system at LRF for AI & S. CELOX for active oxygen measurement (Electronite). Direct display of chemical composition from Spectro Lab.

Vaccum Degassing

Tank Vaccum Degassing System from VAI - TECHNOMETAL GERMANY. Electronite Hydris for measuring Hydrogen in Liquid Metal. 30 MT capacity and vacuum levels lower than 1.0 milibar. 10 T/hr steam Boiler to feed the ejector system supplied by TECHNOMETAL

GERMANY. 4 wire feeding system for trimming alloys.

Bloom Caster

9/16 Meters, two strands Continuous Casting Machine - Concast Standard AG design equipped with IN MOULD ELECTRO MAGNETIC STIRRER (EMS) from Danielli Rotelec, France.

Fully automatic and computerized control of casting parameters. Fully protected liquid metal stream while casting from ladle to tundish followed by

closed casting using submerged entry nozzle from tundish to mould. Automatic mould level indicator.

Cast Sizes : 125 mm sq., 160 mm sq., 200 mm sq. (options)

Bloom Conditioning Facilities

Auto Billet Grinding Machine A battery of swing frame grinders for surface dressing.

Rolling Mills

3 high, 590 mm. 6 stand mechanized modern rolling mill.

Heat Treatment and Finishing

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Bogie hearth furnace for annealing with all temperature controls Air ballast normalizing Bar straightening machines Full-length pickling facilities Mechanised inspection and conditioning stations Spherodizing furnace (project in hand)

Bar Peeling & Centreless Grinding

Long bar straighteners and polisher Bar Peeling Cold Drawing Long bar centreless grinding machine High speed double column band saw for cut length supply Full length bar Magnetic Particle Inspection.

STEEL - OEM Clients

Tractors   

  HMT

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Punjab Tractors

  

Eicher Motors

  

International Tractors

  

Escorts

  

Tractors & Farm Equipments 

  

L&T John Deere

  

Mahindra & Mahindra

 HCV  

  Ashok Leyland

  

Tata Motors

MCV  

  Swaraj Mazda

  

Eicher Motors

  

Tata Motors

LCV  Mahindra & Mahindra

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Eicher Motors

  

Swaraj Mazda

MUV  

  Mahindra & Mahindra

  

Toyota Kirloskar Motor

  

Maruti Udyog

Cars  

  Maruti

  

Toyota

  

Tata Motors

  

General Motors

  

Hindustan Motors

Two Wheelers  

  Yamaha

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Kinetic

  

Hero-Honda

  

LML

  

Honda Motorcycle & Scooter

Three Wheelers  

  Bajaj Tempo

  

Piaggio Vehicles

  

Mahindra & Mahindra

Auto Components OEs  

  Graziano

  

Bonfiglioli

  

Spicer

  

Dana

  

Arvin Meritor

  

Isuzu

 Shriram Pistons

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India Pistons

  

Sona Koyo/Sona Okeygawa

  

Brakes India

  

Toyota Kirloskar Auto Parts

  

Wipro Infrastructure Engg. Ltd.

Others

  

Greaves

  

Siemens India

  

Caterpillar India

Bhearat Earth Movers

FACILITIES

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Steel Business

Location Production Capacity

Steel Unit-Vardhman Special Steels

Ludhiana (Punjab) 100000 MT per annum

Advantages of Vardhman products

1. Vardhman is an old company people can be easily trusted on this brand.

2. The price of Vardhman brand is reasonable.

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3. The Vardhman products are of better quality.

4. The steels of Vardhman’s are best as compared to other brands.

5. Now a day’s Vardhman products are in demand

6. Vardhman is a company which deals not only with steels but also with fabric or garment products.

MARKETS

We export to the world!

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Some of our prominent markets are

Australia Portugal

South Africa Iran

Tunisia Morocco

Brazil Turkey

Bangladesh Russia

Belgium Saudi Arabia

China SingaporeCanada Sri LankaColombia SpainEgypt SwitzerlandGermany SyriaGreece ThailandHong Kong U.K.Indonesia UkraineIsrael UruguayItaly USAJapan Venezuela

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Korea VietnamLebanon New ZealandMalaysia Mauritius

Vardhman on world map

1. BANGLADESH2. U.K.3. RUSSIA4. INDONESIA5. SAUDI ARABIA6. ISRAEL7. CHINA8. SINGAPORE

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9. ITALY10. CANADA11. USA12. SRI LANKA13. JAPAN14. COLOMBIA15. VENEZUELA16. SPAIN17. KOREA18. EGYPT19. VIETNAM20. SWITZERLAND21. NEWZELAND22. GERMANY23. MALAYSIA24. GREECE

MANUFACTURING AND DISTRIBUTION

1. NETWORK

2. HOSHIARPUR

3. DELHI

4. INDORE

5. MALERKOTLA

6. KANPUR

7. KOLKATA

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8. CHANDIGARH

9. PATNA

10. MUMBAI

11. LUDHIANA

12. MANDIDEEP

13. BANGLORE

14. BADDI

15. AHMEDABAD

16. CHENNAI

17. BATHINDA

18. BARUCH

19. TIRUPPUR

CUSTOMERS

1. Steel:- TELCO, ASHOK LEYLAND, MARUTI, HINDUSTAN MOTERS, M&M, ESCORT, TOYOTA ETC.

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2. FEBRIC:- GAP, BANANA REPUBLIC, ANN TAYLOR, ESPIRIT ETC.

3. YARN:- ARVINDMILLS, GINNI INTERNATIONAL, ROLEX, OCL ECT.

4. SEWING THREAD:- DUKE, SPORTKING, OCTIVE, AND NEVA GARMENTS ETC.

Objectives

The main objective of the study is to find out the distribution channel of the company and to find out the dealers network of the distributors. We tried the find out the channels of the distribution of the Vardhman steels and studied the various loopholes of it. This was the great opportunity for me to get into this for my seasonal project.

Process:-

I have taken the project at one of the highest selling Dealer of Vardhman steels in North India.

Address: - Vardhman steels.

Lower mall, (Patiala)

Managing Director: - Mr. Aseem Jain.

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Head Office: Ludhiana

I have gone through complete details of Vardhman steels Company & Product. And In India Vardhman steels are the fastest growing company. So I have selected this company.

I have gone through complete process of Vardhman steels Product sale & service and who they can give 100% satisfaction to the end User.

Research methodology

Research in common parlance refers to a search for knowledge. One can also define research is an art of scientific investigation. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us we wonder and our inquisitiveness makes up probe and attains full and fuller understanding of the unknown. My research is to find out the problem of tractor in the market scenario. The research of the STEEL market with various processes.

1. defining the problem2. developing the research plan3. collection of data4. analysis of interpretation of data5. presentation of findings

1. Defining the problem:- My research problem is to analyze the Distribution channels of Vardhman steels and to the thinking of dealers and customers regarding Vardhman product. And also to notice about the new product of competitors.

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2. Developing the research plan:- The development of research plan has following steps:-

a) data source:- The researcher can get two types of data

i) Primary dataii) Secondary data

i) PRIMARY DATA:- Primary data can be collected either through experiment or through statistical survey. The chart below shows the processing of primary data.

ii) SECONDARY DATA:- Secondary data can be collected from books, journals, news papers, periodicals, broachers, notices, news of telecasting, broadcasting, browsing etc. The chart below shows the processing of secondary data.

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b) Research approach:- Survey is best suited for discriptive and analytical research. Survey are undertaken to learn about people’s knowledge, belifes, preference, satisfaction and so on and tomeasure these magnitudes in the genreal public. Therefore, I have done this survey for descriptive ad analytical research process.

c) Research instrument:- Questionnaire: Questionnaire(also known as self_administered) is a type of statistical survey handed out in paper form usuall to a specific demographic to gather information in order to provider better service or good. A document that contains a set of questions that has been specially formulated as a mean of collecting information and surveying opinions, etc. a specified subject or theme, etc. a questionnaire was constructed for my survey.

d) Sample plan:- Sample is a group of few items which represents the population or universe from where it has been taken. The sampling plan calls for three decisions:

i) sample unit:- Who is to be surveyed? The target population must be defined that has to be sampled. It is necessary so as to develop a sample frame so that every one in the target population has an equal chance of being sampled. I have completed my survey from dealers as well as customers in punjab state.

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ii) contract mathod:- Once the sampling plan has been determined the questionnaire is how the subject should be contracted that is by telephonic interview, personal interview, observation, mail etc. here, in my survey, I have contracted the respondent through personal and telephonic interview.

e) Questionnaire Design:- There is eight questions for dealer and nine question for customer sort of questionnaire . I asked the questions from different cities.

3. collection of information:- After this, I have collected the informayio from the respondent with the help of questionnaire.

4. Data analysis and interpretation:- The next step is to extract the pertinent findings from the collected data. I have tabulated the collected data and development frequancy distributions. Thus, the whole data was grouped asped wise and was presented in tabular form impact of study.

5. Presentations of findings:- This was the last step of survey.

Limitation

1. Due to telephonic method, facial expressions of the dealers should not be noticed.

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2. The service network of Vardhman steel is poor.

3. The outer look of Vardhman steel product is not too good as compared to other.

4. Due to lack of time some dealers are not ready to coordinate.

5. Dealers are not ready to tell about the sale of the Vardhman steel products.

6. Some people are not aware about the new Vardhman schemes.

7. Some of the customers are not ready to fill the form due to which we had to use schedules.

8. There is no personal touch of the manager to any of the customers.

9. There are very few branches in the backward region.

10. The company does not advertise its product widely.

DATA INTERPRETATIONAS AND ANALYSIS

From Dealers:-Q-1. Who are the main competitors of Vardhman steels?

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Tata steel

Kamdhenu

jindal steels and power ltd

Kalyani Steels Ltd.

25%

15% 10%

50%

Interpretation:- According to 50 respondents, maximum number of dealers i.e. 50% of the dealers says tata steel is the main competitors of Vardhman steel, 25% say Kamdhenu, 15% say Jindal steels, 10% of the dealers says about kalyani steels.

Q2. While selling a product, do you think about the financial behavior of customer?

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yes

no

92%

8%

Interpretation:- According to 50 respondents, 92% of the dealers say that think about the financial behavior of the customers and rest 8% of the dealers say they do not thinking about financial behavior. They only want to attract customers towards the products.

Q3. Do you stress on those brands which provide you more commission?

79

yes

no

10%

90%

Interpretation:- According to 50 respondents, 90% of dealers say that they stress on brand which provide more commission and rest of 10% of dealers say that commission does not make affect on them. They only want to sell their product and to satisfy the customers.

Q4. Are you satisfied with Vardhman steel product?

80

yes

no

63%

34%

Interpretation:- According to 50 respondents, 63% of the dealers say that they are satisfied with the Vardhman steel product, while remaining 34%of the dealers say that they are not satisfied with the Vardhman product.

From customers:-

Q5. Are you brand conscious?

81

YES

NO

28%

72%

Interpretation:- According to 50 respondents, 72% of the customers said that they are brand conscious and rest of 28% of the customer said that they are not. Their preference as well as taste change according to the new market situation.

Q6. Do you have any Vardhman product?

82

YES No82%

18%

Interpretation:- According to 50 respondents, 82% of the customers have Vardhman product and rest 18% of the customers do not have any Vardhman product.

Q7. What do you prefer in the product that you want to buy?

83

Resale value

status

Better quality

price of product

10%

8%

56%

26%

Interpretation:- According to 50 respondents, 56% of the customer said that they prefer better quality in the product, 26% of customer thinks about the

price, 10% resale value, and rest 8% status.

Q8. Does advertisement of product make you any affect while buying a product?

84

YES NO

72%

28%

Interpretation:- According to 50 respondents, 72% of the customers said that advertisement of the product affect them while buying a product while remaining 28% of the customers said that they are not affected by the advertisement.

Q9. Do you like Vardhman product?

85

YES NO74%

26%

Interpretation:- According to 50 respondents, 74% of the customers like Vardhman product and remaining 26% of the customers said that they do not like Vardhman product because products of other brand are better than Vardhman.

Q10. Which brand do you prefer more?

86

vardhman

tata steel

kamdhenu

jindal steels and power ltd.

38%

16% 26%

20%

Interpretation:- According to 50 respondents, maximum number of customers i.e. 38% prefers tata steel, 16% of the customer prefer Vardhman, 26% prefer Kamdhenu and rest of 20% of the customers prefer Jindal steels.

DEALERS AND CUSTOMERS VIEW POINTT ABOUT THE VARDHMAN STEEL COMPANY

DEALERS VIEW POINT ABOUT THE COMPANY

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Better company

Service system should be improved

Not use better material

Schemes should be provided by the company

It is in demand

It’s a old company, people can easily trust

CUSTOMERS VIEW POINT ABOUT THE COMPANY

Good brand Old and easily trusted Poor service network Product should be improved to stay in the market

Findings of the study

1. According to 50 respondents, maximum number of dealers i.e. 50% of the dealers says tata steel is the main competitors of Vardhman steel, 25% say Kamdhenu, 15% say Jindal steels, 10% of the dealers says about kalyani steels.

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2. According to 50 respondents, 92% of the dealers say that think about the financial behavior of the customers and rest 8% of the dealers say they do not thinking about financial behavior. They only want to attract customers towards the products.

3. According to 50 respondents, 90% of dealers say that they stress on brand which provide more commission and rest of 10% of dealers say that commission does not make affect on them. They only want to sell their product and to satisfy the customers.

4. According to 50 respondents, 63% of the dealers say that they are satisfied with the Vardhman steel product, while remaining 34%of the dealers say that they are not satisfied with the Vardhman product.

5. According to 50 respondents, 72% of the customers said that they are brand conscious and rest of 28% of the customer said that they are not. Their preference as well as taste change according to the new market situation.

6. According to 50 respondents, 82% of the customers have Vardhman product and rest 18% of the customers do not have any Vardhman product.

7. According to 50 respondents, 56% of the customer said that they prefer better quality in the

product, 26% of customer thinks about the price, 10% resale value, and rest 8% status.

8. According to 50 respondents, 72% of the customers said that advertisement of the product affect them while buying a product while remaining 28% of the customers said that they are not affected by the advertisement.

9. According to 50 respondents, 74% of the customers like Vardhman product and remaining 26% of the customers said that they do not like Vardhman product because products of other brand are better than Vardhman.

10. According to 50 respondents, maximum number of customers i.e. 38% prefers tata steel, 16% of the customer prefer Vardhman, 26% prefer Kamdhenu and rest of 20% of the customers prefer Jindal steels.

Own decision about findings

i. Majority of the dealers says, tata steel is the main competitor of Vardhman steels.

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ii. Majority of the dealers, who are covered under my survey say that they think about the financial behavior of the customers.

iii. Majority of dealers, who are covered under my survey say that they stress on that brand which provide more commission.

iv. Majority of dealers, who are covered under my survey say that they are satisfied with the product of vardman steel.

v. Majority of the customers, who are covered under my survey, said that they are brand conscious.

vi. Majority of the customers, who are covered under my survey, said that they have Vardhman product.

vii. Majority of the customers, who are covered under my survey said that they prefer better quality in the product.

viii. Majority of the customers, who are covered under my survey said that advertisement of the product affect them while buying a product.

ix. Majority of the customers, who are covered under my survey, said that they like vardman products.

x. Majority of the customers, who are covered under my survey, said that they prefer more product of tata steel.

Suggestions

1. Service network should be improved to improve the sale.

2. Company has to use the better quality.

3. Steel outlook should be improved.

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4. The company has to use the advertisement of the product to increase the sale.

5. The company should introduce installments schemes for the bulk goods.

6. There should be personal touch of the manager to few of the customers.

7. It should open branches in the backward region as well.

8. Distribution channel of the company should be improved.

Conclusion

1. Most of the dealers say that tata steel is the main competitor of vardman steel.

2. Most of the dealers, work for the commission.

3. Most of the dealers say that they are satisfied with the Vardhman steel product.

4. Most of the people are brand conscious.

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5. Most of the customers concentrate on the quality of the product.

6. Most of the customers say that advertisement affects on them while buying the product.

7. Most of the people like vardman product.

There is no doubt that vardman is an old company. But by the changing scenario, customers demand the product of better quality. The competitors of vardman steel are more able to satisfy the customers. So, to stay in the market in long run, company should have to improve there products so that we con easily say that “OLD IS GOLD”.

Bibliography

1. INTERNET By GoogleWWW.vardhman.com

2. SECONDARY DATA

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Questionnaire

(From dealers)Q1. Name and contact number.

Q2. Place

Q3. How many Vardhman product you sale?

Q4. Who are the main competitors of Vardhman?(a) Tata steels(b) Kamdhenu

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(c)Jindal Steel and Power Ltd(d) Kalyani steels

Q5. While selling the product, do you think about the financial behavior of customer? (a)Yes (b) No

Q6. Do you stress on that brand which provides you more commission? (a) Yes (b) No

Q7. Are you satisfied with the Vardhman product? (a) Yes (b) No

Q8. What other change do you want in Vardhman steel products?

Questionnaire(From customer)

Q1. Name and contact number.

Q2. Address

Q3. Are you brand conscious? (a) Yes (b) No

Q4. What do you prefer in the product that you want to buy?(a) Resale value

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(b) Status (c) Better quality(d) Price of product

Q5. Do advertisements of the product make you any affect while buying a product? (a) Yes (b) No

Q6. Do you like Vardhman steel products? (a) Yes (b) NoIf no why not.

Q7. Do you have any Vardhman product? (a) Yes (b) No

Q8. Which brand do you prefer more?(a) Vardhman(b) Tata steel(c) Kamdhenu(d) Jindal Steel and Power Ltd

Q9. What do you think about Vardhman product?

95