Chapter 1

CUSTOMER

SATISFACTION

1.1INTRODUCTION:-

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of business

strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers’ expectations. Furthermore, when these

ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify

an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth

marketing, which is both free and highly effective.

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do

this, firms need reliable and representative measures of satisfaction.

In researching satisfaction, firms generally ask customers whether their product or service has met

or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When

customers have high expectations and the reality falls short, they will be disappointed and will

likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,

might receive a lower satisfaction rating than a budget motel—even though its facilities and

service would be deemed superior in “absolute” terms.

The importance of customer satisfaction diminishes when a firm has increased bargaining power.

For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry

that is an oligopoly, where only a few suppliers of a certain product or service exist. As such,

many cell phone plan contracts have a lot of fine print with provisions that they would never get

away if there were, say, a hundred cell phone plan providers, because customer satisfaction would

be way too low, and customers would easily have the option of leaving for a better contract offer.

There is a substantial body of empirical literature that establishes the benefits of customer

satisfaction for firms.

1.2 DEFINATION:-

Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction is

defined as "the number of customers, or percentage of total customers, whose reported experience

with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."

1.3 IMPORTANCE OF CUSTOMER SATISFACTION:-

The importance of customer satisfaction is apparent when you realize that, without customers,

you don't have a business. A single unsatisfied customer can send more business away from your

company than 10 satisfied customers. The more you focus on customer retention and customer

support, the more long-term business you'll get. It's worth it to focus on customer satisfaction

strategies, no matter how large or small your company is.

1.4 PURPOSE OF CUSTOMER SATISFACTION:-

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.

Customer satisfaction data are among the most frequently collected indicators of market

perceptions. Their principal use is twofold[

Within organizations, the collection, analysis and dissemination of these data send a message

about the importance of tending to customers and ensuring that they have a positive experience

with the company’s goods and services

Although sales or market share can indicate how well a firm is performing currently, satisfaction

is an indicator of how likely it is that the firm’s customers will make further purchases in the

future. Much research has focused on the relationship between customer satisfaction and

retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the

extremes. On a five-point scale, individuals who rate their satisfaction level as “5” are likely to

become return customers and might even evangelize for the firm. (A second important metric

related to satisfaction is willingness to recommend. This metric is defined as "The percentage of

surveyed customers who indicate that they would recommend a brand to friends." When a

customer is satisfied with a product, he or she might recommend it to friends, relatives and

colleagues. This can be a powerful marketing advantage.) Individuals who rate their satisfaction

level as “1,” by contrast, are unlikely to return. Further, they can hurt the firm by making negative

comments about it to prospective customers. Willingness to recommend is a key metric relating to

customer satisfaction.

Chapter 2

COMPANY

PROFILE

2.1 BRIF INTRODUCTION OF HINDUSTAN DORR OLIVER LTD (HDO)

2.1.1 ABOUT HDO:-

HINDUSTAN DORR OLIVER is leader in the industrial EPC market. It has been providing

state-of-art technology solutions to its clients for about 7 decades now. We have come a long way

from our humble beginnings as supplier of proprietary solid-liquid separation equipment to being

a major Engineering EPC player, assimilating new technologies and providing the best, most cost

effective and integrated turnkey solutions. We have a pan India presence, with offices in every

major city in India - Mumbai, Bangalore, Chennai, Kolkota, Delhi and Ahmedabad

HINDUSTAN DORR OLIVER is leader in the industrial EPC market. It has been providing

state-of-art technology solutions to its clients for about 7 decades now. We have come a long way

from our humble beginnings as supplier of proprietary solid-liquid separation equipment to being

a major Engineering EPC player, assimilating new technologies and providing the best, most cost

effective and integrated turnkey solutions. We have a pan India presence, with offices in every

major city in India - Mumbai, Bangalore, Chennai, Kolkota, Delhi and Ahmedabad.

HINDUSTAN DORR OLIVER is leader in the industrial EPC market. It has been providing

state-of-art technology solutions to its clients for about 7 decades now. We have come a long way

from our humble beginnings as supplier of proprietary solid-liquid separation equipment to being

a major Engineering EPC player, assimilating new technologies and providing the best, most cost

effective and integrated turnkey solutions. We have a pan India presence, with offices in every

major city in India - Mumbai, Bangalore, Chennai, Kolkota, Delhi and Ahmedabad.

Our wholly owned Engineering Services arm, HDO Technologies, provides complete range of

engineering services in-house, enabling us to have control over delivery time and quality.

Our manufacturing facility at Vatva, Ahmedabad manufactures pressure vessels, heat exchangers,

storage tanks and other proprietary solid-liquid separation equipments like filters, classifiers,

thickeners, clarifiers etc. We are recognized amongst the top ten manufacturers of pressure

vessels and Heat Exchangers in India by firms like EIL, PDIL etc.

HDO has been involved in major industrial projects in areas of Mining and Minerals, Water and

Wastewater, Fertilizers and Chemicals and Pulp and Paper. We have done water management and

effluent treatment for all major refineries in India in the past five years. We have an excellent

presence in Uranium ore processing from supplying equipment to the first uranium mill in

Jagududa to now providing the complete uranium ore processing plant at Tummalapalle in

Andhra Pradesh. We have excellent presence in Alumina refineries working on all new Greenfield

projects in the last five years. Ninety percents of phosphatic fertilizer plants were installed by

HDO. We have the capability of providing the entire pulp mill. Our focus on quality and excellent

project execution skills have brought us repeat business from our clients sometimes on purely

nomination basis.

We are a publically listed company with 55% of stock held by our parent company IVRCL

Infrastructures and Projects Limited, 25% held by Foreign Institutional Investors and the rest by

other investors. We are a professionally managed firm with prominent figures from various

industriesiourBoard.

HDOhas a talented workforce of about 1,300 people of which more than ninety percent are

engineers or hold an equivalent degree. At any given point we have about 30 active sites at

various stages of completion and manage over 14,000 site labour force at various project location.

HDO has obtained international certifications for Quality,Safety and Environment Management

Systems. Our manufacturing facility follows international codes and standards and employs world

reputed third party inspection agency.Its has been committed to maintaining the highest standards

of Health, Safety and Environment and has a separate HSE team dedicated to this task.

We are proud to be India's partner in developing some of the world's most modern industry

infrastructure. Our strength remains our people - highly qualified, professional, passionate and

dedicated towards our company's growth.

Commercial Details

Name of the Company : HINDUSTAN DORR-OLIVER LIMITED.

Group : M/s. IVRCL Infrastructures and Projects Ltd.

Executive Director : Mr. S. C. Sekaran

Factory Location : 8 Kms from Ahmedabad Railway Station

& 22 Kms from Ahmedabad Airport

5/1/2 GIDC Vatva,

Ahmedabad 382 445

VATVA (Gujarat). India.

Telephone : 079-5830591-594

Fax :079-5833286

E-mail : saketbhatt@hdo.in, saurinpatel@hdo.in,

Name & Address of Banker : Bank of India,

Vatva Industrial Estate Branch,

Ahmedabad – 382-445

Registration/License No. : 98676

TIN No. : 24075600867

Central Excise No. : AAACH0964 P XM 001

PAN No. : AHMH00223G

Service Tax Registration No : 1100

TCS No. : AHMH00223G

P.F. Registration No. :GJ/10300

Factory Registration No. :98676

E. S. I. Registration No. : 37/14339/67

How HDO was born?

The seeds of Dorr-Oliver Inc., in USA were sown at the turn of the 20th century by two

entrepreneurs Dr. J.V. Dorr and E.L. Oliver who were both working in the gold fields of N.

Dakota and California respectively and developed equipment solutions for the mining industry.

Eventually, they got together to form Dorr-Oliver; a name synonymous with thickeners and

filters.

Dorr-Oliver entered the Indian market through sale of their rake classifier to Kolar Gold company

in 1942. After becoming a public limited company in India and passing many hands, HDO was

finally bought over by IVRCL Infrastructures Projects in 2005. From here it transformed itself

from a reputed equipment manufacturer to a successful EPC company. Today HDO is one of the

most preferred EPC companies in Water & Wastewater Management, Mineral Beneficiation,

Fertilizers and Pulp & Paper industry.

Introduction

HDO Works at Vatva started in the year 1977. Our spacious factory is located in Vatva

Industrial Area of Ahmedabad off- National Highway No.8.

The gigantic Plot 48906 Sq. Meter and the factory area under EOT Cranes are 15000

sq. meters. The facility is licensed 4800 MT capacity.

HDO Manufacturing Works is “U”, “U2”, “S”, “R” Stamp Certified shop, apart from

this ISO 9001:200, IMS 14001 & OHSAS 18001-2007 are feathers to our cap..

Hindustan Dorr Oliver Limited (HDO) is an Indian EPC company having its activities in

providing Engineered Solutions, technologies and EPC installation Solid Separation. Hindustan

Dorr-Oliver Limited has a new face. HDO is now a wholly owned subsidiary of M/s. IVRCL

Infrastructures and Projects Ltd., who are one of the lead infrastructure industry, having core

business focus on total Water Management pumping, conveyance, treatment and distribution,

national highways, road hydro-electric projects, power distribution, desalination, etc. IVRCL is

having many projects on BOOT basis for various Government Departments of India, HDO has

over decades established a unique track record and position as dynamic, totally reliable and

component-engineering company, having a superior technology to emerge among leading process

equipment engineering companies in India. Today, with every conceivable engineering skill at its

disposal, HDO is endless endeavor to upgrade, modify, adapt and invent products,

technologies to design, construct, install, erect and commission systems EPC basis.

HDO aims to be a world-class Organization with a clear headway, Consistent quality, Low Cost,

On Time delivery. We will focus on adding value at all points of interaction with each of internal

and external. For this, we redefine standards in responsiveness, excellence in process and

application of world-class technologies that ensure zero defect output Quality improvement is the

job of every HDO employee.

HDO has a separate team of engineers employed for knowledge process activities. The team has

its own marketing setup to get engineering outsource both from domestic and international

clients.HDO has been approved by all the leading consultants in India and engineering

capabilities in terms of mechanical and piping design, erection, instrumentation, civil and

structural works. More than 150 engineers are doing complete basic and detailed engineering

activities in various disciplines. HDO works is complete with its own power generating sets. The

material handling equipments consists of our own make. Roll Bending Machine, Plate Shearing

Machines, Air Plasma Welding Machine, CNC Plate Cutting Machines and Gas Cutting Machine.

We have fabrication equipment Flanging Lathe, Drum Lathe, Three-Roll Plate BendingMachines

and Vertical Turning Machines. We have welding equipment like submerged Arc Welding

Machines, Transformers Rectifiers, MIG Welding Machines, Plasma cum TIG Welding

Machines. For handling material equipment we have E.O.T Cranes of different capacity & escorts

make Mobile Crane of 3 MT capacity. Our Machine-Shop also has Horizontal Boring Machines;

TOS (Czechoslovakia) make Gear Hobbing machine, Portable Boring Machines, CNC drilling

machine and Radial Drilling Machines & Vertical Turning Lathe machine. We have quality

Control Dept. and testing equipments which are always on go for better quality standards &

reviewed quarterly.

Quality Policy

The HINDUSTAN DORR-OLIVER LIMITED is one of the leading Engineering Companies

manufacturing process equipments for Refinery, Chemicals, Petrochemicals, Pharmaceuticals,

Fertilizers, Paper, Power generation Drugs and allied industries. Attainment of the highest

standard of quality and enhancement of customer satisfaction has been the corporate philosophy.

In line with corporate philosophy, we reaffirm our commitment for providing reliable quality

product and services through:

· Understanding and fulfilling customer’s requirements

· Use of prime quality raw materials

· Defined process control at each stage of manufacturing

· Meeting national and international standards defined by customers

· Training and motivating employees

· Professional approach

· Implementation of international quality management system standards

We are determined to win patronage of our discerning customers, suppliers and employees with

long lasting relationship.

Vision

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

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

EDGE technologies and draw on both to deliver EFFECTIVE solutions to our customers.

Mission

Consistently outperform expectations and deliver superior value to both our Customers and

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

INNOVATION, breeds INITIATIVE and encourages INTELLIGENT risk taking.

COMPANY VIEW

Entrance View

Fabrication Shop

S

4th & 5th Fabrication Shop

Machine Shop

CNC Drilling Machine

2.1.2 Statutory Approvals:-

ASME “U”, “U2”, “S”, “R” Stamp with site work approval

Indian Boiler Regulations (IBR)

Chief Controller of Explosives (CCOE)

National Board

2.1.3 Inspection Agencies working with us:-

Lloyds Register Asia (LRA)

Bureau Veritas (BV)

RWTUV

Engineers India Limited(EIL)

Certification of Engineers India Ltd(CEIL

Chief Inspector of Boilers & Smoke Nuisances

Chief Controller of Explosives, Nagpur (CCOE)

Bax Counsel

Indian Boiler Regulations(IBR)

Linde Process India Pvt. Ltd (LPTI)

SGS India Pvt. Ltd.

2.1.4 RESOURCES FOR DESIGN & ENGINEERING:- Software

PVElite

Microprotol

HTRI

Code Calc

AutoCAD 2000 (16 Computers)

Codes & Standards

American Society Mechanical Engineers (ASME)

American Society of Testing Materials (ASTM)

Tubular Exchanger Manufacturers Association (TEMA)

(ANSI)

(AWS)

Indian Standard (IS)

Indian Boiler Regulations (IBR)

PD 5500

SMPV RULES (For Explosive Applications)

GAS CYLINDER RULES (For Explosive Application)

API 66

HEI

2.1.5 MANUFACTURING & TESTING FACILITIES:-

Cutting-bending and formatting facilitiess

Tube expansion machines

Machining and drilling

Welding machines

Handling

CNC Machines

Testing

Heat treatment

Utilities

Fabrication facilities

2 New bays (size: 21m wide X 100m long X 15m height) with lifting

capacity 200 MT/Each.

2 New Radiography pit to handle cobalt sources.

3 Heat treatment furnace under planning. (6 x 6 x 18) meters.

4 Orbital welding machine for tube to tube sheet join.

5 Strip Cladding Facility

6 Clean room facility.

7 Cobalt Radiography

2.2 BUSINESS DIVISION:-

2.3 MANAGEMENT TEAM AND OFFICES OF HDO :-

2.3.1 MANAGEMANT TEAM

Mr. Prabhakar Ram Tripati :Chairman

Mr. E Sudhir Reddy :Vice Chairman

Mr. E Sunil Reddy :Managing Director

Business Divisions

Engineering, Procurement &

Construction (EPC)

Manufacturing Knowledge Process Outsourcing (KPO)

Mineral Processing & Beneficiation

Environment Fertilizers &

Chemicals Pulp & Paper

Heat Exchangers & Pressure Vessel

Proprietary Equipments

Design & Engineering Outsourcing

Mr. S C Sekaran :Executive Director

Mr. R Balarami Reddy : Director

Mr. T N Chaturvedi :Director

Mr. M L Majumdar :Director

Mr. Shiv Dayal Kapoor :Director

.3.2 CORPORATE OFFICES

Head Office : Mumbai

Manufacturing Facility : Ahmedabad

Branch Offices :

Delhi

Chennai

Kolkata

Local site offices wherever projects are under execution

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

2.3.3 CORPORATE GOVERNANCE:-

Company's Philosophy on Corporate Governance

Hindustan Dorr-Oliver Limited is committed to corporate transparency and lays emphasis on

business ethics in all its dealings. The Company believes in meeting its obligations to all its

stakeholders, including amongst others, shareholders, customers, employees and the community

in which the Company operates.

The Company's existing practices and polices are in conformity with the requirements stipulated

by Stock Exchanges and SEBI and has gone well beyond simple statutory compliance by

instituting such systems and procedures as are required to make the management completely

transparent and institutionally sound.

Committees of Directors under Corporate Governance Code

o Audit Committee

1. Composition

Mr. S. D. Kapoor, Chairman (Independent Director)

Mr. Prabhakar Ram Tripathi, Member (Independent Director)

Mr. R. Balarami Reddy, Member(Non-Executive Director

Mr. T.N. Chaturvedi, Member(Independent Director)

2. Compensation Committee

Mr. Prabhakar Ram Tripathi, Chairman (Independent Director)

Mr. T. N. Chaturvedi, Member (Independent Director)

Mr. R. Balarami Reddy, Member(Non-Executive Director

3. Shareholders’/Investors' Grievance Committee

Mr. P. R. Tripathi, Chairman (Independent Director)

Mr. E. Sudhir Reddy, Member

Mr. S. C. Sekaran, Member

2.4 ORGANISATIONAL CHART :-

S

2.5 ESTEEM CLIENTS :-

Consultants:-

Executive Director

Chief Operating Officer

General Manager

Heat Exchanger/Pressure Vessel Div.

VP Operation (Works) Head QA / QC (Corporate)

Marketing & Estimation

Design & Engineering

Planning VP Associate HOD QA/QC (Factory)

Inspector

Maint. & Project HOD Materials HODFinance

HOD Production

Machine Shop In-charge

Bay Managers

Engineers India Limited (EIL)

Project & Development India Limited, Noida (PDIL)

Jacob Engineering

UHDE India Limited

Tecnimont ICB India Limited

Chemtex Engineering Limited

Toyo Engineering India Ltd.

Linde Engineering Ltd.

Samsung Engineering India Ltd.

Lurgi India Ltd.

Air Products Plc. (UK)

Aker Kvaerner Power gas India Ltd

Projects & Development India Limited

Saipem India, Chennai

Technip KT India, Noida

LSTK Contractors:-

Larsen & Toubro Ltd.

Punj Lloyds Ltd.

Dodsal Ltd.

GEA Process System Pvt. Ltd

Belco Tech. Corporation

Samsung Engg. Ltd.

MECON

Nicco Corporation Ltd.

Daelim

Jacob Engineering

Linde Engineering Ltd.

Offshore Industrial Construction Pvt. Ltd

Refineries:-

Indian Oil Corporation Ltd., Vadodara

Indian Oil Corporation Ltd., Panipat

Indian Oil Corporation Ltd., Barauni

Indian Oil Corporation Ltd., Digboi

Indian Oil Corporation Ltd., Guwahati

Indian Oil Corporation Ltd., Haldia

Indian Oil Corporation Ltd., Mathura

Indian Oil Corporation Ltd., Paradip

Hindustan Petroleum Corporation Ltd., Mumbai

Hindustan Petroleum Corporation Ltd., Vizag

Bharat Petroleum Corporation Ltd., Mumbai

Reliance Industries Ltd., Jamangar

ESSAR Oil Ltd., Jamnagar

Mangalore Refinery & Petrochemicals Ltd., Manglore

Chennai Petroleum & Corporation Ltd., Chennai

Kochi Refinery Ltd., Kochi

Nagarjuna Oil Corporation Limited, Cuddulur

Numaligarh Refinery Ltd., Assam

Petrochemicals:-

Indian Petrochemicals Ltd.

Reliance Industries Ltd.

Narmada Chematur Petrochemicals Ltd.

Andhra Petrochemicals Ltd.

Haldia Petrochemicals Ltd.

Gas Authority of India Limited,

ONGC Petro Addition Limited, Dahej

Brahmputra Cracker & Petrochemical Ltd.,

Indian Oil Corporation Ltd., Panipat (Petrochemical Project)

Oil & Gas:-

ONGC India

Cairn Energy India

GSPC

Fertilizers:-

Gujarat State Fertilizer Corporation, Vadodara

Gujarat Narmada Valley Fertilizer Company, Bharuch

Rashtriya Chemicals & Fertilizers Ltd., Chembur

Rashtriya Chemicals & Fertilizers Ltd., Thal

Indian Farmers Fertilizer Co-operative Ltd., Aonla

Indian Farmers Fertilizer Co-operative Ltd., Kalol

Indian Farmers Fertilizer Co-operative Ltd., Phulpur

Indian Farmers Fertilizer Co-operative Ltd., Kandla

Krishak Bharti Co-Operative Ltd., Hazira

Manglore fertilizers & Chemicals Ltd., Manglore

National Fertilizer Ltd., Bhatinda

National Fertilizer Ltd., Panipat

National Fertilizer Ltd., Nangal

National Fertilizer Ltd., Vijaipur

Metals:-

Hindustan Zinc Limited

Steel Authority of India Ltd.

The Kerala Minerals & Metals Ltd.

Hindalco Industries Limited (Aluminum Plants)

Hindalco Industries Limited (Birla Copper)

Power Plant (Thermal & Nuclear):-

Nuclear Power Corporation Of India Ltd.

Bhabha Atomic Research Corporation

Bhavini

Thermax, Pune

Plant & Package Manufacturers:-

Linde Engineering Ltd.

British Oxygen Co.

Dresser Rand (India) Ltd.

Kirloskar Pneumatic Co. Ltd.

2.6 BUSINESS PERFORMANCE INTO NUMBERS:-

YEARS SALES(IN CRORES)

2006-07 1200

2007-08 3750

2008-09 4500

2009-10 6500

2010-11 10500

2006-07 2007-08 2008-09 2009-10 2010-110

2000

4000

6000

8000

10000

12000

Series1

Chapter 3

PROTFOLIO OF PRODUCT

3.1 PRODUCT RANGE:-

Heat Exchangers & Pressure Vessels Division :

• Pressure Vessels

Tanks, Spheres, Reactors, Columns, Storage Tanks

• Heat Exchangers

Proprietary Equipment :

• Horizontal Pan Filters

• Screw Classifiers / Rake Classifiers / Clarifiers/ Clarifloculators

• Kelly Filters

• Red Mud Component Filters

• Precoat Drum Filters

• Rotary vacuum Drum Filters

• Brown Stock Washers

• Bleach Washers

• Digester System for Pulp and Paper Plants

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

3.1.1 PRESSURE VESSELS:-

Vessels, tanks, and pipelines that carry, store, or receive fluids are called pressure vessels. A

pressure vessel is defined as a container with a pressure differential between inside and outside.

The inside pressure is usually higher than the outside, except for some isolated situations. The

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

combine with other reagents as in the case of a chemical reactor. Pressure vessels often have a

combination of high pressures together with high temperatures, and in some cases flammable

fluids or highly radioactive materials. Because of such hazards it is imperative that the design be

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

with the operating temperature and pressure. It should be borne in mind that the rupture of a

pressure vessel has a potential to cause extensive physical injury and property damage. Plant

safety and integrity are of fundamental concern in pressure vessel design. Pressure vessels are

used in a number of industries; for example, the power generation industry for fossil and nuclear

power, the petrochemical industry for storing and processing crude petroleum oil in tank farms as

well as storing gasoline in service stations, and the chemical industry (in chemical reactors) to

name but a few. Their use has expanded throughout the world. Pressure vessels and tanks are, in

fact, essential to the chemical, petroleum, petrochemical and nuclear industries. It is in this class

of equipment that the reactions, separations, and storage of raw materials occur. Generally

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

manufacturing purposes.

Major Pressure Vessels supplied by HDOL to various customers :

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

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

Client : Hindustan Petroleum Ltd., Mumbai Equipment : Air Surge Drum Size : 25 m Dia. x 15 m Lg. Weight : MT

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

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

3.1.2 Heat Exchangers:-

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

of conduction and forced convection. In most heat exchangers, a metal wall separates the two

fluids. All heat exchangers are similar in their principle of operation; however, heat exchangers

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

tubes, and the configuration of the enclosure.

Main types of heat exchangers :

• Shell-and-tube heat exchangers

• Air-cooled heat exchangers

• Double-pipe heat exchangers

• Plate-and-frame heat exchangers

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

new products viz. Air cooled heat exchangers and Plate & Frame heat exchangers. In shell-and-

tube heat exchangers, one fluid, known as the "tube side" fluid, flows inside a set of parallel tubes

known as the "tube bundle." These tubes are enclosed within a metal shell. The other fluid, known

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

shell and the tubes are pressurized, and they must withstand the specified design pressures during

the intended lifetime of the equipment.

Major Heat Exchangers supplied by HDOL to various customers :

Client : Alaqua Inc, USAItem : Evaporator Weight : 32 MT

Client : Rashtriya Chemicals & Fertilizers Ltd. Item : TAIL Gas Preheater Weight : 25 MT

Client : Reliance Industries Ltd., Jamnagar Item : Tube Bundle Weight : 36 MT

Client : Numaligarh Refinery Ltd., Assam Item : Trim Cooler Weight : 54 MT

Client : Indian Oil Corporation Ltd., Panipat Item : LVGO Crude Exchanger Weight : 29.5 MT

3.2 GENRAL DETAILS:-

MAJOR PRESSURE VESSEL PARTS:

Shell, Heads, Saddle/Skirt/Leg/Bracket Support, Process Connections, Internals etc.

MAJOR HEAT EXCHANGER PARTS:

Shell, Heads, Tubes and Tube sheets, Std. & Non Std. Forgings, Cover, Baffles,

Saddle/Skirt/Bracket Support, Process Connections etc.

MAJOR RAW MATERIAL FORMS:

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

MAJOR RAW MATERIAL :

Carbon Steel, Stainless Steel, Low Alloy Steel, Non-Ferrous Material (Ni based alloys,

Cu-Ni, Brass, Inconel, Incoloy etc.), Special Metals like Titanium, Zirconium etc.

CRITICAL PARAMETERS :

Orientation : Horizontal / Vertical Depend on application

Design & Operating Conditions Depend on application, Various Loads applicable on equipment

Material Selection Depend on service, design conditions, life expected, Cost

Size Depend on application, Location & Space, transportability, Cost

Strength Calculations Depend on material, size, design conditions

ACTUAL DIMENSIONS PERFORMED :

PRESSURE VESSELS / COLUMNS :

Diameter : 7100 mm

Height/Length : 36000 mm

Thickness : 92 mm

Weight : 160 MT

HEAT EXCHANGERS :

Tube sheet Thickness : 240 mm

Tube OD x Length : 38.1 mm x 12000 mm

Weight : 50 MT

PARAMETERS CONSIDERED FOR ORDER PLACEMENT BY CLIENTS :

Plate Bending Capacity For shell rolling

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

Hydrotesting Facility For high pressure equipment

Welding Capability For different material

Drilling & Machining Facility For tube sheet drilling and machining of other components

Workshop Layout To check suitability of transportation & movement

Current Workload To ensure availability of spare capacity for execution of order

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

Chapter 4

MANUFACTURING PROCESS

4.1 Pre-Order Activities :

a. Enquiry Generation

Marketing Efforts

Registration for various products

Enlistment in Vendor List (Client & Project wise)

b. Enquiry Receipt

Tenders

Online tender download from e-tendering web-sites

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

c. Reviewing Tender Documents

d. Discussion with various departments for specific requirements, if any

e. Enquiry for raw materials for competitive pricing

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

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

4.2 Pre-Manufacturing Activities :

a. Receipt of Order

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

Issue of work order to various department with necessary documents

Kick off Meeting to discuss criticality of equipment, setting up mile stone for various

activities keeping in view of delivery conditions as per order

b. Design and detail Engineering

Design and Detailed Fabrication Drawing preparation

Preparation of technical delivery condition of raw material

Submission of drawings to client/TP for approval and clearing of drawing till final

approval from client/TP

c. Planning

Preparation of PERT and Barchart

Production Plan based on 3 months planning keeping in view of delivery date and

availability of raw material

Preparation of Workload chart for each fabrication shop and machineries

d. Production Engineering.

Design of Jigs and Fixture

Method improvement

Tooling

. Automation and mechanization of various production related activities

e. Welding Engineering

Qualification of new procedures for the future material

Qualification of welding procedure for the order

Welder qualification

Maintain Qualification record of welders

Training of welders for new processes

Maintain record of all welding procedures

Analysis of weld repairs and taking corrective action

f. Material Management (Procurement)

Procure material for manufacturing in a sequence as required by Planning

Control on inventory of raw material and components

Procurement of plant and machinery

Ensure that the material cost is within the estimate

Provide material prices to proposal engineering during estimate

4.3 Manufacturing Activities :

a. Micro Planning

Planning activities for 2 weeks

Check availability of raw material

Planning for activities like X-ray, Rolling, Crane, Welding Equipment

b. Production

Material Identification, Marking & Cutting

Rolling

Fit-up, Welding

Radiography

Assembly

Heat Treatment

Sand/Shot Blasting and Painting

c. Quality Control

Preparation of welding and testing plan

QAP

Certify TDC for material to be procured

Inspection of material as per TDC

Coordination with third party inspection

Quality check for various manufacturing activities

d. Dispatch

Route Survey and Transporter finalization

Ensure pre-despatch requirement of customer

Chapter 5

COMPANY ANALYSIS

5.1 SWOT ANALYSIS (HDOL) :

Strengths

Part of a bigger infrastructure company (IVRCL)

Key facilities and machineries available

Experienced Manpower

Accreditation & Certifications

SAP implemented

Good tie-up with suppliers for support

Prime Location for Mfg.

Network across the Country

Full support from Management

Capability to carry out site jobs

Weaknesses

Insufficient enlistment with some PMC / LSTK / Clients / Consultants / Project Specific

Vendor List

Past failures and insecure clientele due to the same

Weak past track record for higher metallurgy

Lack of high end technology in the core product range

Slow execution and high over head compared to same size / turn over Companies

Facilities like dished end mfg. & testing lab is not available

Unexplored Export Market Opportunities

Recession is over New Projects in Oil & Gas Sector and Petrochemicals Good Market rapport due to successful and timely execution of orders Heavy investments in Nuclear Power Strategic long term collaboration with (foreign) technology partners Export Market

Threats

Easy market entry for competition Stiff competition for low value items Late action could leave company behind in new / emerging areas Loss of key staff Competition from Chinese & Korean Suppliers Margin squeeze

Chapter 6RESEARCH

METHODOLOGY