Summer Training Report

In

North Eastern Tubes Limited

At

NEZONE GROUP

Submitted to
Department of Management Studies
National Institute of Technology Silchar

Industry Mentors Name:

Submitted By:

Mr. Girish Kumar

Works Manager
NEZONE GROUPS
Christan Basti, Guwahati

Victor Saikia
Roll no: 15-50-144
Batch: 2015-17

Department of Management Studies

National Institute of Technology Silchar

Declaration

I _____________________________________ Roll No. __________________

a full time bona fide student of Master of Business Administration (MBA)
Programme, Batch(2015-17) of Department of Management Studies, National
Institute of Technology Silchar, hereby certify that this summer training carried
out by me at _______________________________________ and the report
submitted in partial fulfilment of the requirements of the programme is an
original work of mine under the guidance of the industry mentor
________________________________________________________ and is not
based or reproduced from any existing work of any other person or on any
earlier work undertaken at any other time or for any other purpose, and has not
been submitted anywhere else at any time .

(Student's Signature)
Date:

ACKNOWLEDGEMENT
It is gratifying to express my indebtedness to some individuals who
rendered me notable assistance to bring my project work to a successful
completion.

I would like to thank the Management of North Eastern Tubes Limited

for giving me the opportunity to undergo this summer internship.

I am also grateful to the Management of NIT Silchar for giving me a

chance to do this internship.
I express my thankfulness to Prof. N.V. Deshpande, Director, NIT Silchar
for giving me this opportunity to learn and grow.

My special gratitude goes to Dr. Ashim Kumar Das, HOD, Department of

Management Studies, NIT Silchar, for giving me the opportunity and guidance
to do this summer internship.

I register my profound and heartfelt gratitude to Mr. G.C. Kumar, Works

Manager, NETL, who provided me with relevant information needed for this
work.

His

supervision,

suggestions

and

encouragement

contributed

momentously to the success of this work.

Furthermore, I appreciate the assistance offered by the staff of NETL.

Finally, I am grateful to all respondents for their cooperation.

Victor Saikia

CONTENTS

Chapters

Page no

1. Introduction
1.1 Summary of whole report.....1-3

2. Industrial Sector Profile

2.1. Brief description of steel-pipe/tube industry 4
2.2. Different Companies in Steel - Tubes/Pipes
Industries sector..5-6
2.3. Top 10 companies and market share.......7-9
2.4. Growth & Opportunities in Steel - Tubes/Pipes
Industries sector ..10-12
2.5. Share of Steel Tubes industry sector in total.13
3. Company Profile
3.1. Review of company......14
3.2. Company pictures and logo.15-16
3.3. Company Mission and Vision......17
3.4. History of the company...18-20
3.5. Different plant locations of the NEZONE GROUPS...21
3.6. Product range of Nezone.22-28
3.7. Size of the Company.29
3.8. Market share 29
3.9. SWOT analysis of Nezone .....30-31
3.10. Competitors of Nezone32-33
3.11. Balance sheet ...34

4. Departmental Details
4.1. Organizational chart showing different department.35
4.2. Snapshot of various departments 36-42
4.3. Specific area in which the training has been taken...43
4.4. Roles and responsibilities of the marketing
Department......43-44
4.5. List of different staff members.45
4.6. Departmental Chart...46
4.7. Training method used during the internship.47
5. Learnings and value addition
5.1. Learning and value addition during training...48-69
5.2. Difference between practical exposure
and theoretical exposure...70
5.3. Challenges faced during internship..71
5.4. Usefulness of training...72

6. Recommendations and suggestions

6.1. Suggestions73-74
7. Conclusion.75-76
8. Reference77
9. Annexure...78-81

Chapter 1: Introduction
1.1 Summary of whole report
Distribution channel is one of the most important function of any business
organization to bring its products from manufacture to the ultimate consumer. It serves as a
connecting bridge between the manufacture and its perspective buyers. Moreover the success
of any company depends on how effective its distribution is.
Therefore the main aims and objective of my project are to find out the effectiveness
of the channel of distribution which the North Eastern Tubes Limited(NETL) under
NEZONE GROUP are using to communicate with the dealers and consumers in respect of
their steel pipes.
Therefore the main objectives of this report are to find out the following things: The demand of their products in Guwahati city.
The effectiveness of the distribution channels used by Nezone Group.
Whether the dealers are satisfied or not by selling their products.
If the dealers are finding any difficulties in dealing with their products.
Customers response towards their products.
Before going to the distribution channel of North Eastern Tubes Limited, I would like
to discuss briefly on why distribution has become very important in modern times.
The importance of distribution is due to the following reasons: Manufacturing are benefitted by distribution because they make profit when they sell
their goods.
Supplier of industrial raw material also gains as the demand for their goods is also
increased.
It helps in maintaining price levels and reduces the changes of over production at one
place and scarcity at the other. Through distribution surplus is taken to deficit area.
It enables people to buy the goods produce at distant places and comforts of life that
they offer.
Many individuals such as packers, manual labourers brokers, commission agents,
money lenders etc. are benefitted through distribution as they render different types
of services.

~1~

 Its function are transporting, warehousing, inventory management etc, increasing the
importance of products by creating place utility, time utility and quantity utility.
Distribution mix plays an important role to increase the value of the products through
delivery of goods in right quantity, at right place and right time.
It helps to satisfy the needs of customers by supplying assortment of different
products of different producers.
Intermediaries themselves make arrangement to keep reserve and stock of goods. The
producers need not make management of distribution centres and warehouses.
Distribution Channel of North Eastern Tubes Limited.
Distribution channels are all the sub-marketers or intermediate marketers of the
company. For example retailers, authorized representatives, showrooms etc. are basically
distribution channels.
After manufacturing their products, North Eastern Tubes Limited covered the issue
related to their products and to their potential consumers. They surveyed the market size and
the consumer who are likely to buy their products. They decided on the packaging products
and unit sizes. They found out what prices competitors products are being sold at to
consumers and what the shops are paying for them. With this information they are being able
to sell their products profitably. They distributed their products in various channels according
to their product types. Different products have different channels. The company has different
marketing managers according to their different range of products. The distribution channels
of selling are:
1. Directly to consumers
2. To dealers and retailers.
3. Through buyers to buyers(B2B)
4. Through contract sign.
5. Through government orders.

1. Selling directly to consumers:

The company sells their products directly to consumers. This can be done by the
buying products directly from company for their personal needs.

~2~

2. To dealers and retailers:

The company also distributes their products to dealers and retailers. This distribution
channels can sell greater quantities because their products are on sell in many more locations
than if they were doing their own marketing. Also they can devote most of their time to
processing, which is what they are best at. The notable outlets of the company in Guwahati
are:
core and trade
Raj hardware
Steel house
3. Through business to business (B2B):
The company also sells their products through business to business. B2B refers to a
situation where one business makes a commercial transaction with another.
4. Through contract sign:
The company also sells some of their products through contract sign. Products such as
poles, towers etc. are sold through this process.
5. Through Government orders:
The company also sells some of their products after getting orders from Government
i.e. through Public Health Engineering Department. Most of the products of this company are
sold through Government orders thats why the company does not manufacture excessive
products.

~3~

Chapter 2: Industrial Sector Profile

2.1 Brief description of steel pipe/tube industry
Pipes and tubes are essential part in our surrounding. Tubes items in India was set up
in 1955 with collaboration with tube products (Oldburry)Ltd., UK to deliver ERW Electric
Resistance Welded and Cold Drawn Welded (CRW) Tubes .The channel and tube industry is
relied upon to encounter extensive change and fluctuating development rates. The worldwide
market share of steel pipes and tubes sector is expressed to be near about $27 billion a year
with the US, Western Europe, Australia, Japan. India is one of the most significant exporting
countries including Indonesia, Malaysia, and Thailand.
Steel tube industry in India comprises of firms predominantly occupied with
manufacturing of welded steel pipes or tubes. In the ascent of immense raw material reserves
and imbuement of assets for capacity creation and modernization, the most recent decade of
twentieth century saw a development for the Indian steel industry players. Thus, standard
steel makers and iron ore producers have effectively scaled their operations to worldwide
scale. In any case, in the midst of the managed development, the steel tube industry in India is
as of now experiencing a consolidation stage. This industry additionally saw strong interest
from different local businesses like land, development, telecom, power, vitality, airplane
terminals and ports, amusement zones, metros and so forth. Key strategy drove activity, for
example, the urban framework program under Public Private Partnership additionally turned
out to be a jolt. Rivalry in this segment is required to escalate with the passage of outside
players like Nippon steel partnership, IPSCO, Volzhskiy Pipe Plant and so on. Indian steel
tube industry is isolated into essential, auxiliary and remains solitary maker. India extended
unrefined steel generation from 51.17 million tons for each annum (mtpa) in 2009-10 to
72.96 mt pa in 2014-15. Rough steel generation developed at 8.4 percent every year from
46.64 mt in 2009-10 to 2014-15. Industry investigators expect that limit in the nation is prone
to achieve 120 mt by 2016.

~4~

2.2 Different Companies in Steel - Tubes/Pipes industries sector.

(i) Jindal Saw

(ii) Welspun Corp

(iii) Mah Seamless

(iv) APL Apollo

(v)Surya Roshni

(vi) Gandhi Spl Tube

(vi)Man Industries

(viii)Prakash Steelag

(ix)Good Luck Steel

(x)Suraj

~5~

(xi) Jindal Tubes.

(xii) New Hindustan Tubes PVT. LTD.

(xiii)Tata Steel Limited

(xiv) Bansal Tubes Limited.

(xv) Ratnamani Metal

(xvi) RMG Alloy Steel

(xvii)Zenith Birla

(xviii) Mukat Pipes

~6~

2.3 Top 10 Companies and market share

(Steel - Tubes/Pipes industries sector)

1. Ratnamani Metals and Tubes

Registered in September 1983 as a public limited company Ratnamani Metals &
Tubes Ltd. is now a multi-location, multi-product Company, in India, manufacturing
Tubes & Pipes in Stainless Steel/Exotic material and also Carbon Steel Pipes, in wide
size ranges, for wide spectrum of applications.
Market Capital = Rs. 3,121.43cr

2. Jindal Saw
Jindal Saw is a leading global manufacturer and supplier of Iron & Steel pipe
products, fittings and accessories with manufacturing facilities in India, USA, Europe
and UAE (MENA).
Market Capital = Rs. 2430.77cr

3. Welspun Corp
In the Line Pipe sector, Welspun has to its credit some of the most prestigious projects
including the worlds deepest pipeline project in the Gulf of Mexico, U.S.A, heaviest
pipeline project in the Persian Gulf, highest LNG pipeline project in Peru and longest
pipeline project from Canada to the US.
Market Capital = Rs.1,811.71cr

4. Maharashtra Seamless
Maharashtra Seamless Ltd. (MSL) was incorporated on May 10, 1988. The company
was conceived after noticing huge demand and supply gap in the seamless pipe
market, which was met mostly through imports. The company has always shown
continuous urge for upgradation and expansion in all these years of its existence.
Market Capital = Rs. 1503.47cr

~7~

5. APL Apollo Tubes

Established in 1986, APL Apollo is the fastest growing steel tube manufacturer in
India, and has attained pole position in this category. The company is headquartered
in Delhi NCR, and has six manufacturing facilities that are located in Sikandrabad(3
units) (Uttar Pradesh), Bangalore (Karnataka), Hosur (Tamil Nadu) and Murbad
(Maharashtra). The Companys vast distribution network is spread all across India,
with warehouses cum- branch offices in 20 cities.
Market Capital = Rs. 761.87

6. Surya Roshni
Surya Group has installed capacity of 6,00,000 MT per annum to manufacture ERW
pipes from OD " to 16" according to various national & international specifications
including API5L up to Grade X80 PSL2. The group has started manufacturing of Oil
Country Tubular Goods (OCTG) as per API 5CT Gr H40, J55, K55 PSL 1 & have
supplied successfully to USA market. They are also supplying pipes confirming to AS
1074/ AS NZ 1163 and EN 10219. Besides above, their plant is supplying BLACK,
RED PAINTED, GALVANIZED & PRE-GROOVED PIPES.
Market Capital = Rs. 761.87cr

7. Gandhi Special Tubes

Gandhi Special Tubes Ltd. formerly known as GANDHI SPECIAL 07 TUBES LTD.
was a project set up by Gandhi Group. The project was for manufacturing small
diameter welded and cold drawn seamless steel tubes. All the critical equipment were
imported from Germany. The plant situated at Gujarat, started commercial production
in April 1988.
Market Capital = Rs. 386.57cr

~8~

8. Man Industries Ltd.

Man Industries (India) Ltd. is a member of the Man Group of India.
It is a leading manufacturer and exporter of large diameter Carbon Steel Line Pipes
for various high pressure transmission applications for Gas, Crude Oil, Petrochemical
Products and Potable Water. The Company has state-of-the-art manufacturing
facilities for LSAW & HSAW Line Pipes and also for various types of AntiCorrosion Coating Systems.
Market Capital = Rs. 346.42cr

9. Prakash Steelage Ltd.

Prakash Steelage Limited was incorporated on 09/05/1991 under the Companies Act,
1956 as Prakash Steelage Private Limited and received its Certificate of
Incorporation from the Registrar of Companies, Maharashtra, Mumbai. The Company
was subsequently converted into a public limited company on 12/08/1997 and
receiveda fresh certificate of incorporation pursuant to the change in name.
Market Capital = Rs. 207.38cr

10. Oil Country Tubular Limited

Oil Country Tubular Limited (OCTL), is a processor of a wide range of Oil Country
Tubular Goods and Drilling Products required for the Oil Drilling and Exploration
Industry. OCTL is located near Hyderabad city, India, and is an unique facility in the
World. OCTL has earned worldwide recognition for the Quality of its products and
services.
Market Capital = Rs. 155.90cr

note: the above information on market capital is according to BSE and has been
updated till 26/08/2016.
source: http://www.moneycontrol.com/

~9~

2.4 Growth & Opportunities in Steel - Tubes/Pipes industries sector

The Indian Pipe Industry has been showing rapid growth since past several years and the
major reasons for the growth of this industry is increasing demand for pipes in the irrigation
sector, oil and gas sector and also the real estate industry. The demand for steel pipes such as
seamless pipes, HSAW, LSAW pipes is increasing as the need for oil and gas transportation
in India is growing. Infrastructure development, urbanization and the subsequent
development of residential and industrial construction are facilitating the growth of the pipe
industry in India.
The Government of India is coming up with new projects and investments in the
irrigation sector. The focus of the government is on rural water management, which will be
fulfilled only when there will be proper transportation of water to the end-user. This is one of
the major demand drivers of the pipe industry along with expansion of housing sector and
increasing demand for oil and gas transportation.

Export and import of steel in India

Import and export of steel in India

10
9

In million tonnes

8
7
6
5

EXPORTS

IMPORTS

3
2
1
0
FY 11

FY12

FY13

FY14

FY15

Fiscal years
Source: Ministry of steels, JSPL Presentation, TechSci Research
Notes- FY- Indian Fiscal year (April to March), FY16- April to August,2015

~ 10 ~

FY16

Policy support aiding growth in Steel Tubes industry sector

Foreign Direct
Investment

Rise in export duty

100 per cent FDI through the automatic route is allowed in the
Indian steel sector

The government hiked the export duty on iron ore to 30 per cent ad
valorem on all varieties of iron ore (except pellets)
Export duty on chrome ore and concentrates has been enhanced to
30 per cent ad valorem

The government has reduced the basic custom duty on the plants
and equipments required for initial set up or expansion of iron ore
pellets plants and iron ore beneficiation plants from 7.5/5 per cent to
2.5 per cent
Reduction in custom
duty on plants &
equipment

Customs duty on imported flat-rolled stainless steel products has

been increased to 10 per cent from 7.5 per cent
Basic customs duty on steel grade dolomite and steel grade
limestone is being reduced from 5 per cent to 2.5 per cent
Basic customs duty is being reduced from 10 per cent to 5 per cent
on forged steel rings used in the manufacture of bearings of windoperated electricity generators

Push due to Make in

India initiative

Going forward, the Make in India initiative and policy decisions

taken under it are expected to augment the countrys steel
production capacity and resolve issues related to the mining
industry

source: http://www.ibef.org/download/Steel-August-2015.pdf
date: 26/08/2016

~ 11 ~

Opportunities in Steel Tubes industry sector

The capital goods sector accounts for 11 per cent of steel
consumption and expected to increase 14/15 per cent by 2025-26,
and has the potential to increase in tonnage and market share
Capital goods

Corporate Indias capex is expected to grow and generate greater

demand for steel.

The infrastructure sector accounts for 9 per cent of steel

consumption and expected to increase 11 per cent by 2025- 26.
Infrastructure

Due to such a huge investment in infrastructure the demand for

long steel products would increase in the years ahead.

Some of the other recent government initiatives in this sector are as follows:

The Government of India is aiming to scale up steel production in the country to 300
MT by 2025 from about 90 MT in 2015-16.

The government has launched the National Mineral Exploration Policy (NMEP),
which will help to adopt comprehensive exploration of non-fuel and non-coal mineral
resources that would give a major boost to the economy.

Metal Scrap Trade Corporation (MSTC) Limited and the Ministry of Steel have
jointly launched an e-platform called 'MSTC Metal Mandi' under the 'Digital India'
initiative, which will facilitate sale of finished and semi-finished steel products.

The Ministry of Steel has announced to invest in modernisation and expansion of steel
plants of Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited
(RINL) in various states to enhance the crude steel production capacity in the current
phase from 12.8 MTPA to 21.4 MTPA and from 3.0 MTPA to 6.3 MTPA
respectively.

The total outlay for infrastructure in Budget 2016-17 stands at Rs 221,246 crore (US$
32.8 billion), which is expected to generate much needed demand for steel industry.

~ 12 ~

2.5 Share of Steel Tubes industry sector in total.

Indias crude steel production grew by 4.9 per cent year-on-year to at 8 Million Tonnes (MT)
in May 2016. Total steel production in the country is expected to increase by 7 per cent in
2016.
During FY 2015-16, hot metal production increased at a rate of 1.3 per cent year-on-year to
57.13 MT, whereas the production for sale of total finished steel stood at 90.39 MT. Indias
consumption of total finished steel increased by 4.5 per cent to 80.45 MT during FY 2015-16.
Total finished steel exports during FY 2015-16 stood at 4.08 MT, whereas total finished steel
imports stood at 11.71 MT for the same period. Indias crude steel capacity has increased 7.6
per cent to 118.2 MT.
The steel sector in India contributes nearly two per cent of the countrys Gross Domestic
Product (GDP) and employs over 600,000 people. The per capita consumption of total
finished steel in the country has risen from 51 Kg in 2009-10 to about 61.9 Kg in 2015-16.

source: http://www.ibef.org/industry/steel.aspx
http://www.prnewswire.com/

~ 13 ~

CHAPTER 3: Company Profile

3.1 Review of company
Name of the company:
NEZONE GROUP
EST: 1981
Corporate Office
GUWAHATI
D.D. Tower, 5th Floor, Christian Basti,
G. S. Road, Guwahati 781005, Assam, India
Corporate: netl@nezonesteel.com
Sales: salesghy@nezonesteel.com
Tel: + 91 361 2343951

KOLKATA
3A, 5th Floor, Ashoka House, Hare Street, Kolkata 700 001, West Bengal, India
Corporate: nezone@nezonesteel.com
Sales: sales@nezonesteel.com
Tel: +91 33 22317280/81/82/83

~ 14 ~

3.2 Company pictures & Logo

~ 15 ~

Various pictures of the company.

Logo of the company

~ 16 ~

3.3 Company Mission & Vision.

Company Mission
From a determined beginning in the early days of the intrepid eighties, the NEZONE GROUP
of companies have grown and proposed because it has kept pace with the changing need of
industries. The expansion in our product base has been effective in broadening the groups
scope and expertise. State Bank Of India has been he groups banker since its inception.
Their mission in every project is to provide the customer world class products and the
best value for his money. And, they believe on delivering on time, every time.
They follow a rapid quality control programme in every step of their operations. Only
top quality steel is purchased from leading primary producers, producers. Physical and
mechanical properties of each incoming steel coil is carefully analysed and recorded.
Since quality ultimately depends on the individual, everyone at Nezone is involved in
the definition and fulfilment of the Nezone Group Quality System. They thought that their
workers are indeed their prizes assets.
Company Vision
To be a globally admired organization that enhances the quality of life of all people in
Northeast through sustainable industrial and business development. The Nezone Group
chose to select the north east as its central operation area.
Therefore their main aim is to aspire to be the global steel industry benchmark for
Value Creation and Corporate Citizenship.

~ 17 ~

3.4 History of company.

As Indias leading Steel and Engineering Company, Nezone Group business
operations extend to the production of the full range of steel products and services as a
multi-plant manufacturer, specializing in the production of top quality electric-welded
steel tubes. Starting with Electric Resistance Welded (ERW) steel tubes both Black &
Galvanized of different dimensions, the group has skillfully extended its capabilities in
manufacturing Cold Rolled (CR) & Cold Rolled Close Annealed (CRCA) Strips,
Precision Tubes, CEW/CDW Tubes for the automobile sector, Hollow Steel Sections
(RHS/SHS), Air Pre-heater Tubes (ERW), OD Series Pipes for Idlers, and other related
products. From its inception in 1981, the group has grown fast and rapidly reached up the
corporate curve, scaling new heights at the moment with new products in the Power
Sector like Black & Galvanised Swaged Steel Tubular Poles, Octagonal & High Mast
Poles, Transmission Tower & Substation Lines, Scaffoldings & Structures, in its plants
located in the states of Assam, Meghalaya, West Bengal & Tamil Nadu with a total
Production Capacity of 2,50,000 M.T Per Annum and approx turnover of above Rs. 1,000
crores per annum.
Founded in 1981 with high standards, skills and determination, Nezone today is a
one stop shop for all welded steel tubes. For the Nezone Group, the drive for value -added
products is realized through its fully-integrated manufacturing facilities. Allowing it to
keep a stringent check at every stage right from examining the quality of raw materials
procured to slitting ,tube formation, sizing, annealing, galvanizing fabrication and even
packing. Only top quality steel is purchased from leading primary producers. Physical and
mechanical properties of each incoming steel coil is carefully analyzed and recorded. All
the manufacturing units of the group have been awarded ISO 9001:2008 certification
from reputed accrediting agencies.
The operations of the Nezone Group are designed for cost-effective production.
The plants have the capacity to handle large production runs and specialize in contract
manufacturing. The groups commitment to value is further complimented by R&D
initiatives that constantly strive to develop new and innovative products for evolving
needs and demands, enabling it to develop a wide range of products for a wide range of
industries, and ensuring that customers need based choice of products are supplied.

~ 18 ~

We manufacture our products from HR Coil i.e. purchased from TATA/SAIL only. The
qualities of materials manufactured by Nezone are excellent and without any complain.
We specialize in manufacturing Electric Resistance Welding (ERW) processed Tubes
with advance generation galvanizing plant capacity of 1,00,000 M.T per annum that can
be further enhanced upto 1,50,000 M.T in our galvanizing kettle of 13mtrs long, breath
1.2mts & depth 1.750 metres which is largest in North East Region. Our plant is equipped
with CNC & other specialize machineries for fabrication & also with efficient material
handling systems.
From Rolling of Tubes to the fabrication of Poles & Towers to Galvanisation,
Nezone is able to meet a wide range of customer demands with its diversified range of
products under one brand. We have dedicated, experienced and technically sound people
for producing superior quality products & managing sophisticated works. We have good
Quality Assurance & Monitoring system with complete testing facilities including most
advanced & modernized testing machine & comprehensive laboratory for checking of
both Chemical & physical properties of raw materials needed, in process items at various
stages and the finished product as well.
The group enjoys a prominent position in the southern, eastern and north-eastern
region of India. The products of the group companies are also regularly purchased by
different state public health engineering departments, irrigation departments, Public
Works Departments, Railway, Oil Companies, State Electrical Departments, Defence,
Telecom Companies, Power Transmission Companies, Automobile manufacturing units,
bus/crane earth-moving manufacturing units, different government/semi-government
infrastructure companies etc. Companies like HCC, L&T, NCC, PUNJ LIOYD, BCPL,
GAMMON, ALSTOM, BAJAJ, SCHNEIDER, ABB, SIMPLEX, IVRCL, RAMPKY,
RVR, NTPC, MECON, EIL, BHEL, SAIL, HPCL, Oil India, ONGC, Coal India Limited
are among valued customers of the group companies. Our Products are being inspected
under reputed TPI agencies like POWERGRID, EIL, TCIL, RITES, DGSND, SGS, PDIL,
Etc.
Along with the domestic market, NEZONEs products have been well accepted in
countries like Australia, Singapore, Sri Lanka, Bhutan, Nepal, Bangladesh, Nigeria,
Canada and other regions. Nezone Tubes Limited and Nezone Strips Limited, the two
major companies of the group have been awarded several Export Excellence Awards time
and over again from Engineering Export Promotion Council for exporting different types

~ 19 ~

of tubes and pipes. Nezone Group of Companies has been recognized by the Government
of India as an Export House.

THE GROUP COMPRISES OF FOLLOWING COMPANIES1. Nezone Tubes Limited.

2. North eastern Tubes Ltd.
3. Nezone Stripes Ltd.
4. Nezone Industrial Ltd.
5. Nezone Poles and Towers.
6. Neezone Pipes and Structures.
7. Nezone Steels.

~ 20 ~

3.5 Different plant locations of the NEZONE GROUPS

ASSAM
Pachim Boragaon, NH 37, P.O. Gotanagar, Guwahati 781033, Assam, India
Email:netl@nezonesteel.com
WEST BENGAL
Delhi Road, Village Chakundi, P.O. DCC Township, Dankuni 712 310, District
Hooghly (W.B.)
Email:nslfactory@nezonesteel.com
MEGHALAYA
EPIP Industrial Area, Umtru Road, Raja Bagan, Byrnihat 793101, Meghalaya
Email: ntls.works@nezonesteel.com
TAMIL NADU
NEZONE TUBES LIMITED, Plot no. M-4, Phase-III, SIPCOT Industrial Complex, M.K
Puram Post 632405, Ranipet, Vellore District, Tamil Nadu
Email: ranipet@nezonesteel.com

~ 21 ~

3.6 Product range of Nezone:

All the products of NEZONE are ISO: 9001:2000 marked
Companies

Products
1. M.S black and galvanised steel
tubes

and

pipes:

IS:1239

&

IS:1161
Nezone Tube Limited , Kolkata (W.B)

2. Rectangular and square Hollow

section tubes. IS:4923
3. Scaffoldings
1. Cold rolled strips and precision

Nezone Strips Limited, Kolkata (W.B)

tubes
2. Black and galvanised steel tubular
poles. IS:2713

Nezone Industries limited, Meghalaya

1. M.S black pipe- structured

1. M.S black and galvanised steel
tubular poles. IS:2713
2. High

mast

and octagonal

poles
3. Transmission
Nezone steels, Meghalaya

line

towers,

substation structures and other

galvanised structure.
4. Scaffoldings

Nezone pipes and structures, Meghalaya

1. M.S black and galvanised steel

tube and pipes. I.S: 1239, I.S:1161
2. R.H.S and S.H.S tubes. I.S:4923

North eastern tubes limited, Guwahati,

Assam

1. M.S

black

pipes

I.S:1161

I.S:1161
2. R.H.S and S.H.S tubes I.S:4923

Nezone pipes & towers Guwahati,

1. Steel tubular poles. I.S:2713

Assam

2. Scaffoldings

~ 22 ~

&

M.S Black pipe

MS Pipe, MS Tube refers to Mild Steel Pipe or Mild Steel Tubes used for industrial and
domestic use.
Use:
Structure:
Shed, Scaffolding, Railing, Stairs, Tents, Doors,
Industrial:
Tools, Trolleys, Machinery, Supports, Barricading, Poles,
Automobiles:
Chassis, Steering, Tools, Parts,
Domestic:
Doors, Railings, Stairs, Decoration, Tents, Fencing,
Furniture:
Chairs, Table, Racks, Storage System

~ 23 ~

Galvanized pipe

Use:
Potable Water Supply
Tube Wells & Hand pumps
Plumbing Works
Structure, Bridge Railing
Poles / Post
Electrical Conduits
Cooling Towers
Electrical / Telecom Cable Ducting

~ 24 ~

Steel Tubular Pole

Use:
Light Poles in single hang & double hang,
Street Light Poles and Traffic Light Poles etc.

Scaffolding

~ 25 ~

Hollow section pipe

Use:
Industrial Sheds
Steel Furniture
Bridges
Low cost Steel Housing
Towers, Airports
Tripper/Trailer body
Bus Body Structures
Cranes
Material Storage Racks
Road Dividers
Railway Wagon
Coaches
Hoardings
Machine Components & Frames
Pre-fabricated House
Automobile Chassis

~ 26 ~

Precision tubes

Use:
Industrial Equipments
Furniture
Machinery Parts
Fencing / Railing
General Engineering Purpose
Fan Rods
Bearing Housing
Disk Antenna
Tubes for discharge electrodes
Electrical conduits & components
Gas Lighter
Bus Body Building
Automobile Industry
Bicycle Manufacturing
Umbrella Tubes

~ 27 ~

E-rickshaw

The company is also into manufacturing of School furniture, Playground equipments,

Infrastructure & Automotive and POP products. Nezone in collaboration with OK Play India
Limited, who first develop and designed e-rickshaw and will be manufacturing and
distributing all its electric vehicles in the eastern and the North Eastern states on India.

~ 28 ~

3.7. Size of the company:

Turnover: Nezone group has approx turnover of above Rs. 1,000 crores per annum
Manpower: North eastern tube limited (NETL) has manpower of 200 employees.

3.8 Market share

North Eastern Tubes Limited is a public incorporated on 19 January 1989. It is classified as
Non-Govt Company. Its authorized share capital is Rs. 18,000,000.
North Eastern Tubes Limited annual general meeting was held on 30 September 2015
and as per records from ministry of corporate Affairs its balance sheet was last filed 31
March 2015

~ 29 ~

3.9 SWOT ANALYSIS:

This analysis provides a comprehensive insight into the companys history, strategy, business
and financial structure.

STRENGTHS:

It is one of the largest integrated steel tubes players in India with a huge capacity and
hence enjoys economies of scale.

One of the lowest cost steel producers in India.

It also caters the requirement of growing Automobile component manufacturers at a

total projects cost of Rs.535 lakh.

Ideal location proving easy access for incoming and outgoing of raw materials.

Cold rolling capacities which results in giving value added products,

production of international grade stainless steel facilitating exports, follow a rigid

quality control program in every step of operations.

Deals with govt. departments like AEC,PHE,ASEB,BSNL etc.

WEAKNESS:

Less number of promotional strategies for Nezone products in the market with
inadequate marketing strategies.

Limited portfolio diversification compared to other industries.

Lack of market research and market intelligence.

Not that much up to the mark service provider to the customers.

No patent and no slogan.

~ 30 ~

OPPORTUNITIES:

Increase the production capacity to meet the global steel demand.

Growth opportunities in the domestic market.

Good communication of transport.

The head office being in the heart of the city helps them to approach the market.

THREATS:

Competition from existing players in the market.

Issues related to the labour union, government and environment regulations

No modernization of plant.

Many competitors have entered the market with lower price than Nezone.

~ 31 ~

3.10 COMPETIORS OF NEZONE

No business can survive without competition. If there is business there must be
competition. NEZONE has always given tough competition to its competitors. Today
NEZONE has a large number of competitors. Some of their strong competitors are TATA,
JINDAL, BANSAL, HINDUSATAN.
TATA:
Tata Metaliks Limited manufactures and sells foundry grade pig iron worldwide. The
company offers low sulphur and phosphorus grades for the manufacture of ductile grades of
castings. Its pig iron is used in various specialized applications, such as pressure tight
precision castings, automobile engine blocks, crankshafts, gears, rolling mill rolls, motor and
generator housings, and railway and machine tools. The company also offers granulated
blast furnace slag for cement plants; potted pig iron foundries; pig iron scrap; and iron
sweepings. The company was founded in 1990 and its headquartered in Kolkata, India. Tata
Metaliks Limited is a subsidiary Tata Steel Limited.
BANSAL:
Grown from a single-unit steel plant to present multi-national, multi-location and
multi product steel conglomerate. The organization is still expanding, integrating and
growing towards new direction, new objectives. The pipes are mainly for domestic market.
The pipe, as a product for water transportation, has a very high potential in the
Indian market due to high investment in infrastructure development in the country and it
also has significantly longer life compared to other kinds of pipes. It has several other
advantages like lower energy cost for water transmission, lower chances of water
contamination etc.
JINDAL:
Jindal Steel and Power (JSPL) is an industrial powerhouse with a dominant presence
in steel, power, mining and infrastructure sectors. Part of the US $ 18 OP Jindal Group this
young, agile and responsive company is constantly expanding its capabilities to fuel its that
has seen it grow to a US $3.3 billion business conglomerate. The company has committed

~ 32 ~

investments exceeding US $30 billion in the future and has several business initiatives
running simultaneously across continents.
Led by Mr Naveen Jindal, the youngest son of the legendary Shri O.P Jindal, the
company produces economical and efficient steel and power through backward and forward
integration.
From the widest flat products to a whole range of long products, JSPL today sports a
product portfolio that caters to markets across the steel value chain. The company produces
the worlds longest (121-meter) rails and it is the first in the country to manufacture largesize parallel flange beams.
HINDUSTAN:
HINDUSTAN PIPES LIMITED is one of the leading manufacturers and exporters of
ERW Galvanized Steel Pipes and tubes ranging from 1.5 mm NB to 300 mm NB conforming
to various Indian Standards with an installed capacity of 1,25,00 MT in the first unit 1,00,000
MT in the second unit, which has just commenced commercial production. The plants are
spread over a sprawling 50,000 sq. meters of the land and are equipped with the most
sophisticated machine and testing laboratories.
The plant produces M.S ERW Galvanized Pipes and tubes to cater to variety of
requirements of Agriculture and Industrial usages, Oil, Gas, Sanitary, water, power,
electrification, Tubular Poles, Structural, etc. Ranging in Light(A), medium(B) and Heavy(C)
series. The product of the company has established its strong sales network spread out in
every part of the country and overseas.
Boasting modern equipment for the production of welded Steel Pipes of various
specifications used in transformation of water, Petrochemical Products and in Building
Construction. A programme of quality assurance, in accordance with the requirements of
(ISO-9001:2002) is entrenched in Hindustan Pipes process and management system.

~ 33 ~

3.11 Balance Sheet of North Eastern Tubes Limited:: Guwahati

Balance Sheet As At 31st March 2015

NOTE

(In Rupees)
Year Ended
Year Ended
(31.03.2015)
(31.03.2014)

EQUITY AND LIABILITIES

Shareholders fund
Share capital
Reserves and Surplus

1
2

18,000,000
133,250,571

18,000,000
132,375,579

151,250,571

150,375,579

794,138
794,138

838,662
838,662

Non-Current Liabilities
Long term borrowing
Term loan from other parties Deferred Tax
Liabilities(Net)
Current Liabilities
Short term borrowings
Trade Payable
Other current Liabilities
Short Term Provisions

3
4
5

65,982,654
191,789
44,987,614
493,826

97,402,306
8,149,900
33,503,802
891,262

TOTAL

111,655,883
263,700,593

139,947,270
291,161,511

ASSESTS
Non-Current Assets
Fixed assets
Tangible assets
Non-Current investment
Long term Loans advances

6
7
8

23,458,033
1,458,138

25,943,837
79,373
1,456,583

24,916,171

27,479,793

75,770,596
141,511,349
920,889
15,956,561
4,625,027
238,784,422
263,700,593

128,400,412
109,010,184
1,397,321
18,234,513
6,639,288
263,681,718
291,161,511

Current Assets
Inventories
Trade receivables
Cash & Bank balance
Short Term Loans & Advances
Other current assets

9
10
11
12
13
TOTAL

~ 34 ~

Chapter 4: Department Details:

4.1. Organizational list showing different departments:

1. HR department
2. Accounts Department
3. Production Department
4. Quality control Department
5. Maintenance Department
6. Workshop Department
7. Electrical Department
8. Store Department
9. Dispatch Department
10. Marketing Department
11. Purchase Department

~ 35 ~

4.2 Snapshot of various departments.

(a)
Accounts Department

HR Department

Purchase Department

Accounts Department: The accounts department provides financial support and services to
the NETL so that their business runs smoothly. The accounts department also helps to
maintain the yearly budget structure and to make the yearly balance sheet.
HR Department: The HR Department helps to maintain a good working environment
between the employees and workers of the company. They also maintains a good relation
with the workers union. They also play a major role in hiring of potential employees.
Purchase Department: The Purchasing department is the backbone of the NETL plant. It
handles all of the paperwork involved with purchasing and delivery of supplies and materials.
Before making a buy, the purchasing office must guarantee that it regards the correct
conventions for buy and spending endorsement and must guarantee that any things are
acquired as per the general buying approach of the plant.

~ 36 ~

(b) Store Department

Store Department : The store department of North Eastern Tubes Limited is a centralised
storekeeping. Continuous checking of stock is being taken by the store manager

~ 37 ~

(c)

(d)

(c) & (d): Quality Control Department

North Eastern Tubes Limited has fully equipped quality control department with all necessary
equipments for checking of quality control department with all necessary equipments for
checking quality of products including Eddy Current Testing machine, Hydraulic Testing
Machine, Universal Testing machine, Temperature Control Equipments, different types of
weighing scales, measuring equipments etc. NETL has also being awarded ISO 9001-2008
certification from reputed agencies.

~ 38 ~

(e)

(f)
(e) & (f): Production and Workshop Department

~ 39 ~

(g) Production and Workshop Department

In the Production and workshop department the machinery arrangements are placed side by
side for small and big sized steel tubes, diameter ranging from 15/20/25/32/40/50/65/80/100
for small and 125/150 for big sized pipes (all are in mm) with an average length of 6m.
The plant is running on the average of 12 hours daily employing a few hundreds of
daily workers with a manufacturing capacity of 70 tonnes per day.

~ 40 ~

(h) Maintenance Department

This includes regular checks of equipment to ensure proper functioning. Plant maintenance
ultimate motto is to create a productive working environment that ensures workers safety too.

(i)

Dispatch Department

This department is responsible for the procurement and delivery of the materials. The pipes
which is last product that is being dispatched through the vehicles.

~ 41 ~

(j)

(k)
(j) & (k) :Electrical department

~ 42 ~

4.3 Specific area in which the training has been taken.

Our training has been taken in the marketing department of North Eastern Tubes
Limited (NETL). Brief practical knowledge of the plant was given at NETL plant , located in
Pub-Buragaon, Guwahati. The market scenario of NETL was taught to us which we were to
be understand and implement while doing our survey across the various retailers, distributors
and wholesalers of steel tubes located in guwahati city.

4.4 Roles and responsibilities of the marketing department.

Marketing strategy at NEZONE group is driven by continuous efforts to stay alert to
changing market requirements and to respond through initiatives that drive change. The
manufactured steel pipes are supplied and marketed in almost all of North- Eastern states
namely Assam, Meghalaya, Arunachal Pradesh, Manipur, Mizoram etc for both private and
Government enterprises. The marketing department has overall responsibility for growing
revenue, increasing market share and contributing to company growth and profitability
through its sales force.
The Head of the Marketing Department is Mr. P.K. Agarwal and the office is located
at Guwahati, D.D. Tower, 5th Floor, Christian Basti, G. S. Road, Guwahati 781005,
Assam, India.
The function of the marketing department are :
Strategy
The senior member of the marketing department takes responsibility for setting marketing
strategy in line with overall company strategy and objectives. The strategy may be to increase
share in a specific market sector, for example, to enter a new sector, or to open a new channel
of distribution. Discussions are being made how to increase their dealers in various parts of
North- East.
Market Research
Market research is a key responsibility for the marketing department. Research helps the
company identify market opportunities and gain a better understanding of customer needs. It
also helps them understand competitors strengths and weaknesses so they can take action to
protect business with existing customers or win business from their competitors.

~ 43 ~

Product Development
The marketing department works with Internal or external product development teams to
develop new products or improve existing ones. The department analyzes sales of existing
products and identifies gaps in the product range where there may be opportunities for the
company. Marketing employees provide development teams with information on customer
needs and preferences to help them identify the features or improvements to incorporate in
new products. Later in the product development process, the marketing department sets prices
and prepares plans to launch the product.
Sales Support
Cooperation between the sales and marketing departments can improve sales performance
and speed up business growth. The marketing department provide sales teams with highquality leads by running advertisements. Marketing also prepares presentations for the sales
team.

~ 44 ~

4.5LIST OF STAFF MEMBERS AND DIFFERENT POSITIONS HOLDING BY THEM .

(NORTH EASTERN TUBES LIMITED)

Name of employee

Designation

Mr. Girish Ch.Kumar

Works Manager

Mr. P.K. Goel

General Manager(Finance)

Mr. Rajesh Chetri

Sr. Manager(Sales)

Mr. Nimesh harlalka

Marketing Executive

Mr. Pankash Bhusan Borah

Marketing Executive

Mr. Ajit Ch. Sharma

Marketing Executive

Mr. Himangshu Sarma

Marketing Executive

Mr. Rajendra Prashad Singh

Production Engineer

Mr. Nand Kishore Soni

Stores Manager

Mr. Arun Khetawat

Commercial Officer

Mr. Santi Ram Das

Supervisor

Mr. Amrit Ch. Das

Asst. Personal Officer

Mr. Homen Chakraborty

Stores Clerk

Mr. Diganta Kalita

Asst. Quality Control Inspector

Mr. Pradip Kr. Sarma

Supervisor (Production)

Mr. Nipul Bhattacharyya

Supervisor (Production)

Mr. Sazzid Hussain

Maintenance Engineer

Mr. Chandan Choudhury

Accounts

Mr. Ridip Borah

Accounts

Miss Bhanima Das

Accounts

Mr. Chirantan Banerjee

Marketing Officer

~ 45 ~

4.6. Departmental chart showing different positions:

Managing Director

Technical Director

Marketing Director

Works Manager

Store Manager Administration Manager

General Manager (Finance)

Marketing Director Personal Manager Quality Manager

My position in North Eastern ltd was Marketing Intern and trainee.

~ 46 ~

4.7 Training method used during the summer internship programme

The method used by me during the SIP was Market Research on by collecting data
from various retailers, distributors and customers across the Guwahati city. Marketing
Research is a systematic and objective study of problems pertaining to the Marketing of
goods and services. It may be emphasized that it is not restricted to any particular marketing,
but it is applicable to all phases and aspects. Marketing Research is function, which links the
customers and public to the market through information used to identify and define,
marketing opportunities and problems; generates, refine and evaluate marketing actions;
monitor marketing performance; and improved understanding of market as a process.
Data collections are an essential and important part of any study or project. Without
collecting appropriate data any study or project cannot be undertaken. In our training we have
used both primary and secondary data collection.
Primary Data: Any data, which are collected at first hand either by the researcher or
someone else especially for the purpose of the study, is known as primary data.
In regards to my study the main source of primary data are

Customer
Dealers
Supplier
Distributors

Secondary Data: Any data, which have been gathered earlier for some other purposes, are
secondary data in the hand of the researcher. Thus primary data collected by one person may
become secondary data for other.
Similarly the source of secondary data are:
Internet
Analysis of past sales record

Data collection technique: There are various types of technique available for data collection.
In regards to my study the following techniques have been used
Questionnaire
Personal interview
Survey

~ 47 ~

Chapter 5: Learnings & Value Addition

5.1 Learnings & Value addition during training
The success of any business depends upon how effective its distribution system is. No
company can survive without effective distribution system. Therefore the main purpose of
my study is to find out the effectiveness and ineffectiveness of the distribution system of
NEZONE.
With the help of questionnaire and data collected from 30 dealers located in different areas of
Guwahati we made an analysis by purposive sampling. The following questions along with
the data interceptions are as follows:
Q1. Do you know NEZONE products are cheaper than any other products?
Survey resultoptions

No. of Respondents

Percentage(%) of Respondents

Yes

22

73%

No

27%

Graphical representation-

27%

yes
73%

no

From the analysis of given data it can be seen that most of the dealers and retailers in
guwahati city are aware of the fact that NEZONE products are comparatively cheaper than
other products like TATA, BANSAL , JINDAL to name a few.

~ 48 ~

Q2. Are you satisfied with the NEZONE products you are selling?
Survey results
Options

No. of respondent

Percentage(%) of Respondents

Satisfied

17

56%

Very satisfied

17%

Dissatisfied

0%

Neither satisfied nor

27%

dissatisfied

Graphical representation:

27%
Satisfied
0%

56%
17%

Very Satisfied
Dissatisfied
Neither satisfied nor dissatisfied

Analysis and Interpretation:

From the pie chart it can be seen that 56% are satisfied 17% are very satisfied and 0 % are
dissatisfied. And the rest 27% are neither satisfied nor dissatisfied by selling NEZONE
products. We thus conclude that the various dealers and retailers are satisfied by selling
various NEZONE tubes as they are making considerable margin of profit.

~ 49 ~

Q3. What is the customers response towards the products?

Survey results:
Options

No. of respondent

Percentage(%) of Respondents

Good

13%

Very Good

21

70%

Average

17%

Poor

0%

Graphical Representation

0, 0%
5, 17%

4, 13%

Very good
Good
21, 70%

Average
Poor

Analysis and Interpretation:

From the above pie chart it can be seen that 70% customer response toward the NEZONE
products are very good, 13% are good and 17% are average. There is no poor response from
the customer. Thus it is very clear that the responses of the customer towards NEZONE
products are very good and they are satisfied with their products.

~ 50 ~

Q4. Do find good demand of NEZONE products in Guwahati city?

Survey results:
Options

No. of respondent

Percentage(%) of Respondents

Great extent

50

69%

Some extent

22

31%

Cannot say

0%

Graphical representation

0, 0%

22, 31%

great extant
50, 69%

Some Extant
Can't say

Analysis and interpretation:

From the above pi chart we can see that 69% of dealers find a great extant demand of
NEZONE products while 31% respondent responded some extant towards a good demand of
NEZONE product in Guwahati city. We can say that the NEZONE products are quite popular
in Guwahati city, while purchasing of steel tubes NEZONE products are always an option.

~ 51 ~

Q5. Do you get any sales technique demonstration by NEZONE company?

Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Often

7%

Sometimes

13%

Never

24

80%

Graphical representation:

2, 7%
4, 13%

often
sometime
never

24, 80%

Analysis and interpretation:

From the above pi chart it can be seen that 80% of dealers does not get any sales
demonstration from the sales technicians of NEZONE Company only 7% gets often and 13%
of dealers gets often. The sales department of NEZONE is not putting in their effort in giving
the basic sales demonstration of their products. In long run this may cause a decrease in their
sales.

~ 52 ~

Q6. How would you rank NEZONE steel tubes products?

Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Excellent

17

56%

Good

27%

Average

17%

Below average

0%

Graphical representation:

0, 0%
5, 17%

Excellent
17, 56%

8, 27%

Good
Average
Below Average

Analysis and interpretation:

From the above pie diagram it is very clear that almost all of the dealers are very satisfied by
selling the NEZONE products. As we can see that 56% have respondents have responded by
saying excellent, 27% good, 17% average. Thus there is no compromise in the quality of their
products.

~ 53 ~

Q7. What do you think about the marketing strategy of NEZONE tubes in comparison with
other brands?
Survey results:
Options

No. of respondent

Percentage(%) of Respondents

Excellent successful

13%

Partly successful

9%

Successful

23%

Not successful

10

34%

Graphical representation:

4, 13%
10, 34%
excellent sucessful
9, 30%

partly sucessful
sucessful
not sucesful

7, 23%

Analysis and interpretation:

From the above pie chart we can see that there was a mix response from the dealers about the
marketing strategy of NEZONE Company. As we can see that 13% responded by saying
excellent successful, 30% partly successful, 23% successful and 34% not successful. There
was a mix response from the various dealers and retailers which means there is lot to do in
order to improve their marketing strategies.

~ 54 ~

Q8. What is your view on the finishing of the NEZONE tubes products of different
dimension?
Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Excellent

14

47%

Good

23%

Average

20%

Below average

10%

Graphical representation:

3, 10%
6, 20%

14, 47%

excellent
good
average

7, 23%

below average

Analysis and interpretation

From the above survey result we can see that 50% respondent responded excellent, 30 % very
good, 17% good and 30% average. So basically the finishing of NEZONE products are above
good but there is still room for improving.

~ 55 ~

Q9. In your view the distribution network of NEZONE is

Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Strong

13%

Poor

23%

Neither good nor bad

19

64%

Graphical representation:

4, 13%

7, 23%
19, 64%

strong
poor
neither good nor bad

Analysis and interpretation

From the above pie chart we conclude that majority of the dealers are finding the distribution
channel neither good nor bad and are likely satisfied. But 23% of the dealers are finding the
distribution channel very poor. And 13% find the distribution channel is strong. Thus the
distributions of NEZONE products are below par, there should be an immediate solution by
the company in order to find the defects and correct them.

~ 56 ~

Q10. What is your view on the business relations with the sellers and buyers?
Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Excellent

13

43%

Very good

17%

Good

13%

Average

27%

Graphical representation:

8, 27%
13, 43%
excellent
very good
4, 13%

good
average
5, 17%

Analysis and interpretation

The business relation between sellers and buyers in this case it is the dealers - retailers, 43%
find it excellent which is a very good indication for NEZONE, while 17% and 13% finds it
very good and good respectively. But the rest 27% finds it average which is a concern for the
company.

~ 57 ~

Q11. What is your view on the future prospects of the company?

Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Brighter

18

60%

Encouraging

23%

Good

17%

Average

0%

Graphical representation:

0, 0%
5, 17%

brighter
7, 23%

18, 60%

encouraging
good
average

Analysis and interpretation

From the retailers we came to know that 60% finds the future of NEZONE brighter while
23% and 17% finds it encouraging and good. This information is very important as the
retailers are directly in contact with the customers, so basically their view matters a lot in this
matter

~ 58 ~

Learning
It is known that the NEZONE steel tubes and pipes manufactured in the NETL plant
are cheaper as compared to the other major players like TATA, JINDAL, and
HINDUSTAN. This is the main reason that NEZONE products are being surviving
with a upper hand over its competitors in guwahati city and also because of quality
products.
The distribution channel of NETL is not that strong the reason being that there are
very few numbers of intermediate marketers of the company in whole of Guwahati
City.
In the era of upgrading technology even the sales force of the company needs to be
improved continuously with the flow of time. NEZONE is lagging behind its rivals in
this factor, as they are not providing proper promotion of their offering to the various
retailers.
As we came to know that the quality is in par with the other major steel tubes giants,
so now it is the responsible of the marketing department to lead their company
towards a brighter future by making proper strategies, sales promotion, advertising,
marketing research and marketing logistcs

~ 59 ~

Analysis of responses from customers-

Q1.Have you heard the name of NEZONE group?

Survey Results
Option

No. of respondent

Percentage(%) of Respondents

yes

33

66%

no

17

34%

Graphical Representation

17, 34%

yes
33, 66%

no

ANALYSIS:
From the survey that we made, it has been found that NEZONE products are known to the
customers as 66% are aware against 34% who are still not aware.

~ 60 ~

Q2. What do you think of the company position in the market?

Survey Results:
Options

No. of respondent

Percentage(%) of Respondents

Good

26

54%

Medium

19

40%

Poor

6%

Graphical Representation

3, 6%

19, 40%

26, 54%

Good
Medium
Poor

ANALYSIS:
From the customer point of view 60% thinks that the company has a sound position in the
steel tubes market, while 35% thinks that the position of NEZONE is somewhat medium and
5% thinks that there position as compared to other steel companies is poor.

~ 61 ~

Q3. What type of Marketing you would prefer?

Survey results
Options

No. of respondent

Percentage(%) of Respondents

Wholesale Marketing

30

43%

Retail Marketing

12

17%

Network Marketing

26

38 %

Others

2%

Graphical Representation

1.2, 2%

26, 38%

30, 43%

Wholesale Marketing
Retail Marketing
Network Marketing
Others

12, 17%

ANALYSIS:
Is is found that 43% customers prefer wholesale marketing ; where about 17% customers
prefer retail marketing. 38% customers told that they network marketing and 2% prefers other
type of marketing buying directly from manufacture in case of builders or through contract
sign.

~ 62 ~

Q4. In your view the cost of NEZONE product is?

Survey Results
Options

No. of respondent

Percentage(%) of Respondents

High

9%

Low

37

88%

Very High

0%

Very Low

3%

Graphical Representation

0, 0%

1.2, 3%
4, 9%

high
low
very high
very low

37, 88%

ANALYSIS:
As claimed by NEZONE that their price is cheaper than their rivals, and from the above data
we came to know that the customers are also aware of this fact as 88% knows NEZONE
products are competitively cheaper.

~ 63 ~

Q5. How do you come to know about NEZONE group?

Survey Results:
Options

No. of respondent

Percentage(%) of Respondents

T.V

11%

Newspaper

25%

Others

44

64%

(..)

Graphical representation:

1.4, 11%

3.2, 25%
t.v
8.2, 64%

newspaper
others

ANALYSIS:
From the analysis made, nearly 64% of targeted customers came to know about NEZONE
products through other means rather than traditional advertisement like T.V and newspaper.
Most of the customers came to know about NEZONE through retailers, from cutomers who
have used NEZONE products earlier.

~ 64 ~

Q6. To what extent you are satisfied with the company?

Survey Results:
Options

No. of respondent

Percentage(%) of Respondents

Very satisfied

33

71%

Satisfied

12

26%

Dissatisfied

0%

Neither satisfied nor dissatisfied

3%

Graphical representation:

0, 0% 1.2, 3%
12, 26%
Very satisfied
Satisfied
33, 71%

Dissatisfied
Neither satisfied nor dissatisfied

ANALYIS
We can conclude that most of the customers of NEZONE are fully satisfied with the different
products of steel tubes and pipes, as 71% of the surveyed customers are fully satisfied.

~ 65 ~

Q7. In future your chance of purchasing NEZONE product is?

Survey Results:
Options

No. of respondent

Percentage(%) of Respondents

High

27

53%

Low

4%

Very High

21

41%

Very Low

0%

Graphical representation:

1.2, 2%

21, 41%
27, 53%

High
low
very high
very low

2, 4%

ANALYSIS:
From the above data we can that customers who have once used Nezone product have a very
good chance of re purchasing.

~ 66 ~

Q8. Mention the factors which influence you to purchase NEZONE tubes products?

Survey Results
Options

No. of respondent

Percentage(%) of Respondents

Excellent quality

30

80%

Usage and demands

11%

Reasonable price

16

4%

Graphical representation:

1.4, 4%
4, 11%
Excellent quality
Usage and demands
30, 85%

Reasonable price

ANALYSIS:
From the above data we can see that the factors which influence the customer is mainly
because of excellent quality at 85% followed by usage and demand and because of the
reasonable price at 11% and $% respectively.

~ 67 ~

Q9. What do say about the commitment of NEZONE group to customers?

Survey result:
Options

No. of respondent

Percentage(%) of Respondents

Very good

30

71%

. Unbelievable

9%

good

17%

Average

3%

Graphical representation:

1.2, 3%
7, 17%
Very good

4, 9%

. Unbelievable
30, 71%

good
Average

ANALYSIS:
According to survey majority of customers at 71% feels that NEZONE commitment towards
them in terms quality, price and availability is very good. While9% of the customers are
extremely happy and rest 17% and 3% think that it is good and average respectively.

~ 68 ~

Learnings:
Nezone products are known to most of them in the Guwahati city, if someone prefers
products from Nezone then its because of its quality and lesser price.
Most of the customers who have used once the Nezone product are willing to use it
next time also.
From the survey we also came to know that most of the customer came to know
about Nezone products either from the word of mouth from the retailers or from
known customers who have used Nezone product earlier. This implies that Nezone
advertisement is quite poor.

~ 69 ~

5.2 Difference between practical exposure and theoretical work.

The theoretical knowledge is all about understanding the market scenario, different clients,
market potential etc but it is the practical works which will the revenue to the organization.
But before sending any fresher to the market it is very important to give him a sound
theoretical knowledge of the different practical work he has to perform during his job tenure.
In marketing we can say that practical work is of more important as it will also give you the
theoretical knowledge when we go for the field work along with experience, which we cant
get in theoretical knowledge.
Practical knowledge will also help us to hone our skills by interacting with different clients,
business partners, delegates of other companies etc.
So, basically we can conclude that there in marketing both theoretical and practical work
goes in hand to hand, where theoretical knowledge helps us in doing our practical work more
efficiently.

~ 70 ~

5.3 Challenges faced during the internship.

1. Due to hectic schedule of the company we were unable to get enough

exposure of overall working of the different plants and as planned we were
unable to visit the new plant which is located in Bornighat.
2. Interacting with the shopkeepers of different retailers in the market place was
itself a challenge. As they were busy with their customers we had to visit
multiple times the same dealer. In such a scenario getting an appointment was
itself a challenge.
3. Sample sizes taken randomly are less and due to randomness, the samples may
not reflect the actual picture or errors may be there between collected and
actual information.
4. Consumers and retailers had to be convinced strongly that the information
gathered via responses had no other intention than academic research.
5. Under our mentor 9 more interns were there so he was not able to give much
time, so we didnt receive the actual scenario of our department in details.

~ 71 ~

5.4 Usefulness of the training.

a) During my internship I came to know about the various steel tubes companies
particularly in the north-eastern region.
b) The working of a steel tube plant and different stages which takes place during the
production.
c) Understanding the market of steel tubes in Guwahati city and their demand.
d) In order to fulfil my project I had to collect data from the market
(dealers/retailers/wholesalers) as well as from the customers. I got an idea how to
interact with them which will definitely help me in my future work.
e) In many cases while doing my survey I was not getting positive response from some
of the customers and retailers, but I did not lose hope and I was successful to gather
the information for my survey in many instances.
f) After this internship I have somewhat got an insight of how the corporate world
works, which in turn will definitely help me assume what I should except down the
line when I will be working as an employee in an organization.

~ 72 ~

Chapter 6: Recommendations & Suggestions

(6.1) SUGGESTIONS :
While working for North Eastern Tubes Limited (NETL) as an intern I came across
very few flaws. NETL has been providing quality products from the last 3 decades. But as
there is always scope for improvement I would like to recommend few points which might
help the company.
Firstly, the workers of NETL are not young and energetic, majority of the workers
have been appointed during the very starting of the plant. As the workers are under, The
Workers Compensation Act, 1923 therefore while working in the plant they are liable to get
all the facilities in which some workers take advantage.
Therefore I would like to recommend them to hire contractors under whom the
various workers will work, in that way the contractor will be directly responsible to the
workers.
Secondly, while visiting different retailers of steel tubes I came to know that the sales
force of NETL are not putting any extra effort. According to various retailers they are not
getting any proper demonstration from the sales person of NETL.
Here I would like to suggest that as the competition is increasing the sales force
should also now tie up the loose ends and should give their 100% effort. Gifts should be
given to the retailers on purchase of bulk quantity in order to encourage them.
Thirdly, most of the reputed dealers of NEZONE are situated in Athgaonn and some
in Adabari, Chandmari of Guwahati city. They can increase their dealers to the areas which
are not far from the remote areas as most of the construction are going on those places.

~ 73 ~

Some other suggestion and recommendations :

1. No full fledged advertisement :
The company should give importance on advertisement because it is the means
through which people come to know about the product in the market.
2. No patent :
Since the name of the company is not patent and other company named nezone food
products have also the same name. Most of the people think that both companies are
the same and are misguide.
3. No slogan:
Slogan is also an important aspect of marketing. Slogan helps in creating an ipact
about the company in the mind of the customer like thums-up taste the thunder,
Jindal steel we are the future of steel.
4. The availability of the plastic pipes with the cheaper price has cut down NEZONE
market.

~ 74 ~

Conclusion
I have done my project in North Eastern tubes Limited under NEZONE GROUP which is the
major manufacture of black pipes and Galvanized iron pipes. NEZONE GROUP was
established in 1981. The industry was setup in the year 1985 with a capital of Rs. 8 crores
naming NEZONE tubes the industry is fully managed and controlled by private ownership of
managing directors Managing Director Mr. M.S.Biswala. but in the year 1996 a portion of the
plant was nearly set-up as North Eastern Tubes Limited and since then it has been supplying
its products in all the state of north-east and also exporting its product in foreign countries
like Australia, Nigeria, Bangladesh, Middle East and to many others.
The company is mainly concerned with supplying its product to the government department
like oil, ASEB, PHE department. The company earns 75% of its income from the government
department and the rest 25% from the products which it sells to the consumers like the GI
pipes. But with the increased in the market, the company has start giving concern to its
consumer products also. It has four competitions namely

TATA

JINDAL

BANSAL

HINDUSTAN

The NEZONE group has four production units. One is situated at Boragaon, Guwahati. The
second one is at Barnihat, Meghalaya, the third one is at Dankuni, West Bengal and the
fourth one is at Vellore District, Tamil Nadu. Its marketing office is situated at Pan Bazar.
The company also has branch at Kolkata which has won the best exporter award last year.
After conducting the survey I have found that there are certain limitations. Becasuse of
the lack of full fledged advertisement many people hesitate to take companies dealership.
The company does not have there name paten because of which other company named
neznoe biscuits have but which is not the case.
The distribution of goods is one of the important aspects of business. The distribution
channel provides necessary link between the company and its valuable customers. The
success of any business depend on how effective is distribution system is, it uses the most
modern sophisticated method and medium to upgrade its distribution channel. As it is

~ 75 ~

quite clear that no business can excel without having and effective system of distribution.
A company must be able to fulfil its dealers needs since customers are increasing day by
day, it has become necessary on the part of the dealers to met the demand of the
customers and for that purpose company has to supply sufficient stocks of goods to its
dealers without hampering its sales. In addition this cannot be done until and unless the
company adopts a good effective speedy distribution system. The company has a major
advantage the transport facility. Since the production unit is on the high way and truck
yard is near to it, it has the facility of bringing the raw materials and dispatching its
product easily and quickly. The company bring its raw material from TATA and
BANSAL.

~ 76 ~

Reference
1. Marketing Management, by Philip Kotler
2. Sales Management, by Richard Still, Edward W.Cundiff
3. Sales and Distribution Management by Krishna K Havaldar, Vasant M Cavale
4. www.nezoensteel.com
5. www.nezonetubes.com
6. www.indicus.net
7. http://www.moneycontrol.com/stocks/marketinfo/marketcap/bse/steel-tubespipes.html
8. http://listz.in/top-10-steel-companies-in-india.html

~ 77 ~

Annexure:

Questions for Dealers

Q1.Dealer Name:

Q2. Do you know NEZONE products are cheaper than any other products?
a. YES

b. NO

Q3. Are you satisfied with the NEZONE products you are selling?
a. Satisfied

b. Very Satisfied

c. Dissatisfied

d. Neither Satisfied nor Dissatisfied

Q4. What is the customers response towards product?

a. Very Good

b. Good

c. Average

d. Poor

Q5. Do you find a good demand of NEZONE products in Guwahati City?

a. Great extant

b. Some extant

c. Cant say

Q6. Do you get any sales technique demonstration by NEZONE Company?

a. Often

b. sometime

c. Never

Q7. How would you rank NEZONE tubes product?

a. Excellent

b. Good

c. Average
~ 78 ~

d. Below average

Q8. What do you think about the marketing strategy of NEZONE tubes in
comparison with other brands?
a. Excellent Successful

b. Partly Successful

c. Successful

d. Not Successful

Q9. What is your view on the finishing of the NEZONE tubes products of
different dimension?
a. Excellent

b. Very Good

c. Good

d. Average

Q11. In your view the distribution network of NEZONE is

a. Strong

b. Poor

c. neither good nor bad.

Q12. What is your comment on the future prospects of the company?

a. Brighter

b. Encouraging

c. Good

d. Average

Q13. Do you want any upgradation or changes to any products of NEZONE

tubes ltd. Please note your suggestion (if any)

~ 79 ~

Questions for Customers

Q1. Name: ..

Q2. Have you ever heard the name of NEZONE group?

a. YES

b. NO

Q3. What do you think about the companys position in the market?
a. Good

b. Medium

c. Poor

d. No idea

Q4. What type of Marketing you would prefer?

a. Wholesale Marketing

b. Retail Marketing

c. Network Marketing

d. Others

Q5. In your view the cost of NEZONE product is?

a. High

b. Low

c. Very High

d. Very Low

Q6. How do you come to know about NEZONE group?

a. T.V

b. Newspaper

c. Others (..)

Q7. To what extent you are satisfied with the company?

a. Very satisfied

b. Satisfied

c. Dissatisfied

d. Neither satisfied nor dissatisfied

~ 80 ~

Q8. In future your chance of purchasing NEZONE product is?

a. Very High

b. High

c. Low

d. Neither high nor low

Q9. Mention the factors which influence you to purchase NEZONE tubes
products?
a. Excellent quality

b. Usage and demands

c. Reasonable price

d. Attractive finishing

Q10. What do say about the commitment of NEZONE group to customers?

a. Very good

b. Unbelievable

c. good

d. Average

:::::::::::::::::::::::::::::::::::::::::::::*****************:::::::::::::::::::::::::::::::::::::::::::

~ 81 ~