25-08-2017, 09:32 PM
Gemini Steel Tubes Ltd.
IM-_Gemini_22_Sep__2009_1_.pdf (Size: 2.24 MB / Downloads: 304)
Evolution
Steel Tube manufacturing industry started in India from 1960‐65 during which 6 plants started operations
These plants were in Jamshedpur‐1, Maharashtra‐ 2, Gujarat‐ 2 and Delhi‐1
The first to start operation was Indian Tube Company, located at Jamshedpur followed by Zenith Birla
After relaxation in licensing policies, in 1975, the industry saw mushroom growth, predominately in the North India
By 1980, 50‐60 new manufacturing units started operations
The majority of the plants were medium/small scale Units and located around Delhi in places like Ghaziabad, Bahadurgarh, Hissar,
etc.
Current Status
With increased competition, the plants who did not keep pace with industry development got closed and currently only two,
of those six units, namely Indian Tube Company (now part of TISCO) and Zenith are continuing operations
From capacity point of view, there have been over capacity compared to demand and average industry capacity utilization has
been low
In the tube industry, the major investment is in working capital rather than plant and machinery
Indian domestic pipe industry is divided into:
Organized Players: High end and high Capital‐intensive segments like Seamless pipes, SAW pipes, CDW, ERW pipes, API Pipes are
largely controlled by companies from organized sector
Organized Pipe manufacturers include Tata Steel, Zenith Birla Limited, Surya Roshni, Jindal Pipe, Jindal Industries, Swastik, Bhushan,
Welspun, Tube Investments etc.
Unorganized players: Low capital‐intensive segment like Cement and Concrete pipes, Commercial quality ERW Pipes, etc. are flush
with unorganized players
5 Cement/concrete pipes are the most competitive segments with the least margins
ERW and CEW Tubes
ERW Tubes:
Bright finish CR and HR coils are the raw materials
The wide coil is tested for chemical and mechanical
properties and slit into various required widths in the Slitting
Mill and fed into the Tube Mill
The strip passes through a sequence of pre‐aligned forming
and fin rolls of high profile, hardened and tampered top and
bottom rolls
The strip gradually attains the circular shape, in various
stages, which is getting welded by High Frequency Induction
welding
CEW Tubes:
CEW stands for Cold drawn Electric Resistance Welded tubes
These are uniquely used in various applications requiring high
precision dimensional tolerances, better surface finish, mirror
like finish, high tensile properties, non standard sizes and
uneconomical quantities
The ERW fincut tube is the starting raw material for CEW tube
production and undergoes various production stages like
annealing, pickling, phosphating, lubricating, swaging and
then drawing
The process calls for rolling a hollow tubes & then cold
drawing it to suit the improved surface & mechanical
properties required for the specific purpose like propeller
shafts, shock absorbers, handle bars etc.
G thi h i lt b i d t i di tl li k d t
8 Growth in mechanical tube industry is directly linked to
Automobile industry, as the automobile Industry is the
biggest consumer of the Mechanical tubes
Marketing Strategy
In order to achieve these sales figures the company needs to stress a lot on the marketing strategy
Marketing needs to be strengthened because:
The company is planning to concentrate on new geographies like exports market
The company is planning to enter into new products like CBQ tubes
The company would like to retain its lost market share
Such a growth would require an effort from the Marketing wing of the company
It is suggested that the company should have a Chief Marketing officer who would have Marketing Heads of various Sales
Depots
Caparo Tubes (Dewas)‐ A Case Study
In Aug ‘06, Caparo Engineering India Pvt. Ltd., a subsidiary of Caparo Group founded by NRI industrialist Lord Swraj Paul, has
acquired assets of Steel Tubes of India Limited, a Dewas‐based company near Indore with an annual turnover of INR 2 billion
Caparo is a USD 1.5 billion multinational with business interests in aluminium and steel processing and vehicle structural
components, is a leading manufacturer of ERW tube and hollow sections with manufacturing facilities in the USA and UK
Post acquisition Caparo planned to modernize and expand acquisition, the operations at Dewas to significantly increase the tube making
capacity from 50,000 tonne to 100,000 tonne per annum and in the span of two and a half years since its acquisition in 2006,
Caparo Tubes (Dewas) has undergone a total transformation
Post acquisition, the following steps have been taken:
The entire equipment and site have undergone major refurbishment, which has had a significant impact on the company’s product
range and quality
The business expanded its tube range from 82 mm to 101 mm diameter
The company has fully adopted the Caparo manufacturing principles and the Caparo culture
The company has also focused heavily on improving quality, work systems, shop layout and work place environment
The company has been employing participative management in order to best meet business objectives
In addition, line managers and associates have been participating in a KAIZEN program ‐ an activity which brings about constant
improvement in quality, productivity and customer satisfaction