SANVIJAY ROLLING & ENGINEERING LTD.

Steel defines strength & power…..We define Steel

By Abhishek G Mishra

COMPANY OVERVIEW

    Sanvijay Rolling & Engg. Ltd. (SREL) is the largest steel rolling group of companies for long products in Central India, based in Nagpur. The company commenced production in 1991, and presently has 5 rolling mills under its belt. The current production capacity which is around 26,000 MT per month will be enhanced to 42,000 MT per month with future projects.  

PEST ANALYSISPOLITICAL•Due to the amendment of Income tax act 1982 in year ‘05 there were problem in filing in returns in the FY 2005-06.•Rise in excise duty affected the firms logistics and trading.•PGCIL is the governing body that has the major influence on the firm.

ECONOMICAL•The recession has been at its all time low in the decade and effected the steel sector a lot causing hike in price and fall in demand.•Due to the weakening of rupees against dollar , the companies export was affected.(FY 2008-09)•Training of new employees.

SOCIO –CULTURE•Considering green issues.•Considering diversity of India.•Attitude of people towards foreign products.•Employment level per capita.

TECHNOLOGICAL•To have competitive advantage company has to invest in R&D activity.•Using old assets and methods.•Patent and copyright issues.•Replacement of asset.•Outdated technology.

PORTERS FIVE FORCESSuppliers Bargain Power

Consumer

s

bar

gai

n

power

Threats of substitute

Threats of new entry

Competitive Rivalry

SWOT ANALYSISSTRENGHTS

• Power Grid approved steel rollers.• About 19 years of experience in steel rolling.• Exporter to various countries.• Exclusive trading unit for MS/HT.

WEAKNESSES

• Poor communication marketing.• Use of outdated software system.• Wearing of assets.• Right persons are not in right place.

OPPORTUNITY

• Accessing the international market.• Installation of 32” rolling mill.

THREATS

• Growing competition.• Un-installation of TMT rolling mill.

BCG MATRIXSTAR • Unequal Angles(30X45X5mm to 150X115mm)

?

• Metal Sheets• TMT Bars

CASH COW

• High Tension steel/Mild Steel Equal Angles(25x25mm to 300x300mm)

DOG

• TMT bars

Companies Annual Report

2004-05 2005-06 2006-07 2008-090102030405060708090

100Gross Turnover

Gross Turnover In Billon Rupees

ANSOFF MATRIXMARKET PENITRATION

• Special Attention.• Reasonable prices.• After sales services.• Allowing credit(for a certain period).

PRODUCT DEVELOPMENT

• Addition of new products to product range.• Feedback/customer survey .•Effective mode of communication.•Adding to the quality.

MARKET DEVELOPMENT

• By using different sales channels (Sales promotion, providing discount on bulk purchase)• By entering into different manufacturing fields.(windmills, telecommunication towers)

DIVERSIFICATION

• Market-International Market.• Product-TMT Bars, metal sheets.

EXISTING MARKET

NEW MARKET

SHELL MATRIX

Wood Industry (Asia)

Wood Industry (Africa, Oceania)

Wood Industry (Europe)

High

Medium

Low

High Medium Low

Market Attractiveness

Companies Strengths

BAR DIAGRAMConsumption of wood world wide per capita

• North America - 700 kg

• Oceania - 540 kg

• South America - 470 kg

• Central America - 450 kg & Caribbean

• Europe - 400 kg

• Africa - 470 kg

• Asia ( comprising - 800 kgall east, west & central Asia)

Market SegmentationProduct

(Channels, Angels, Round Bars)

End Consumers

Higher level Consumer(Tower line, Wind Mills)

Middle level Consumers(Contractors, Small

Industries)

Lower level Consumers(For self consumption,

Round Bars)

Process of Marketing

Market Analysis Seeking Best Market Enquiry Vs Quotation Negotiation Order finalization Order Execution Production Planning Dispatch Planning Feed Back from customer ( Product Vs

Services quality)

Positioning & Pricing Positioning: SANVIJAY Rolling &

Engineering Ltd.(SREL), has a 75,000 square foot warehouse stocked with six times as many metric size items as all its competitors combined. (www.blueflames.com)

Pricing: Steel Industries products depend upon the day to day market. It works as a share market. Whatever, prices are going to be decided on daily basis depends upon Raipur Market and Punjab Market. Both the market are hub of steel market.

Marketing Scheme Sponsored Nagpur International Marathon on 31st Jan 2010

which was a Mega Event and international athletes participated in it. People from all the sectors i.e.(media, politics, glamour industry, businessmen) were present .

PRODUCT & SERVICES

SERVICES

PRODUCTS

COMPETITOR Shilpa Rolling & Engineering Ltd, Nagpur. Divyans rolling Mill Nagpur. Bajrang Rolling Mill Raipur. Sunder Rolling Mill Nagpur. Parshuram Rolling mill Nagpur. 

RECCOMENDATION To make Replacement of Assets( within a fixed

span of time) for example; modernization of technology i.e. website, software etc.

To use better and various modes of communication marketing.(celebrity endorsements, etc)

To Re-install the TMT rolling mill. Apply for ISO recognisation for remaining four

units. To include directors message in the companies

Profile. (for enhancing customer relation)

REFRENCES Sanvijay Rolling & Engineering LTD. (2007). Home Page. Available:

http://www.sanvijay.com/index.html. Last accessed 10th Nov 2010. Sanvijay Rolling & Engineering LTD. (2007). gif picture. Available:

http://www.sanvijay.com/images/mid1_01.gif. Last accessed 10th Nov  Murli Rolling Mill. (2008). jpg picture. Available:

http://www.murlirollingmill.com/images/Mild-Steel-Angles.jpg. Last accessed 10th Nov 2010.

Made in China. (2010). jpg picture. Available: http://image.made-in-china.com/2f0j00QMlazyorHubw/Steel-Channels-For-Building-Structure-HT-B04-.jpg . Last accessed 10th Nov 2010.

SLH Trade. (2007). gif picture. Available: http://www.slhtrade.com/steel%20product/steel%20product/Unequal%20Angle%20Steel.gif. Last accessed 10th Nov 2010.

UCIC (P) Limited . (2010). jpg picture. Available: http://www.google.co.uk/imgres?imgurl=http://ucic.in/yahoo_site_admin1/assets/images/TLT.240152235_std.jpg&imgrefurl=http://ucic.in/&usg=__vIDtqUR8x7L5mECypgPMF6VJFt4=&h=353&w=354&sz=17&hl=en&start=18. Last accessed 10th NOV 2010.

Inforse. (2010). gif picture. Available: http://www.google.co.uk/imgres?imgurl=http://maps.grida.no/library/files/global-wood-consumption_thumbnail.jpg&imgrefurl=http://maps.grida.no/go/collection/vital-forest-graphics&usg=__Cn5NqEzlNoiBcY2f. Last accessed 10th Nov 2010.

Sanvijay Rolling & Engineering LTD. (2007). History of Sanvijay.Available: http://blueflames.in/sanvijay/about_us.html . Last accessed 10th Nov 2010.

Mind Tools. (1995). Porters Five Forces. Available: http://www.mindtools.com/pages/article/newTMC_08.htm. Last accessed 12th Nov 2010.

Ansoff Matrix. (1995). The Ansoff Mtrix. Available: http://www.mindtools.com/pages/article/newTMC_90.htm . Last accessed 12th Nov 2010.

Sanvijay Rolling & Engineering LTD (2007-08). 20th Annual Report. 9th ed. Nagpur: Divyam Printers. p1-20.

J K Pradhan. jkpradhan_2007@rediffmail.com. marathon pictures. 13th Nov 2010

http://www.youtube.com/watch?v=m7Vs0F0v0cA