ACKNOWLEDGEMENT

We take this opportunity to place on record our grateful thanks

and sincere gratitude to Mr. U.P Sinha (DGM, Sales Co-
ordination), Mr. A.K Dey (Officer Sales Co-ordination), Mr. Arvind
kumar (Dy. Manager, HRD) who gave us valuable advice and
inputs for our study. Our study could not have been completed if
we had not been able to get the reference materials from the
company.
Last but not least, we would also like to express our thanks to
our family members who inspired us to put in our best efforts for
the Research/Project Report .
 CONTENTS
1. INTRODUCTION OF USHA MARTIN LIMITED.

2. BACKGROUND OF THE COMPANY.

3. VISION.

4. GROUP COMPANIES.

5. OBJECTIVE OF THE RESEARCH.

6. SOURCES OF RAW MATERIAL.

7. UML NATIONAL & INTERNATIONAL COMPETITORS.

8. THE SUPPLY CHAIN MACRO PROCESS.

9. CUSTOMER RELATIONSHIP MANAGEMENT.

10. INTERNATIONAL SUPPLY CHAIN MANAGEMENT.

11. SUPPLIER RELATIONSHIP MANAGEMENT.

12. MARKETING.

13. MARKETING CONCEPT OF UML.

14. MARKETING MIX STRATEGY.

15. LOGISTICS CONSTRANTS OF UML.

16. OBJECTIVE.

17. MARKET LOGISTICS.

18. GLOBAL AND DOMESTIC DISTIBUTION STRATEGY.

19. ANALYSIS AND INTERPRETATION.

20. SWOT ANALYSIS.

21. FINDINGS AND RECOMMENDATION.

22. BIBLIOGRAPHY.
COMPANY PROFILE

“EACH ONE TEACH ONE TO MAKE USHA MARTIN NUMBER ONE”

 INTRODUCTION
OF
USHA MARTIN
Wires and strands remain the core business focuses at Usha
Martin. The ISO-9001-certified manufacturing facilities at Ranchi
(Eastern India) are among the most modern and the largest in
the world .Wire and Strands forms a major focuses area of the
business. Usha Martin is India’s second largest manufacturer of
wires and strands, successfully servicing a variety of areas.
Industries such as Automobiles, General engineering, power
Infrastructure and construction, and specialty products have
been using our products for a number of years.

With its state of art manufacturing unit at Ranchi and its

extensive market reach, the company has been a significant
player in the wire market. The ISO certified manufacturing unit
conforms to the best practices and highest quality systems. Due
to its internationally recognized systems and standards Usha
Martin Wires and strands have made a mark for themselves the
world over.
 THE PARTICULARS OF USHA MARTIN

LOCATION : CHOTANAGPUR(JHARKHAND)
PLANT AREA : 112 ACRES
COVERED AREA : 16 ACRES
NEAREST TOWN : RANCHI (13 Kms)
NEAREST RAILWAY STN: TATISILWAI (1 Km )
NEAREST ROAD : SITUATED IN NH-33
NEAREST AIRPORT : RANCHI (17 Kms )
NEAREST PORT : HALDIA (412 Kms )
POWER : CONTRACTED DEMAND 10
MVA
SOURCE : JSEB
WATER REQUIREMENT: 2400 -3200 Cu M / DAY
SOURCE : SWARNAREKHA RIVER
PLANT CAPACITY : 77500 MT Per Annum
PRODUCT : STEEL WIRE, WIRE ROPE etc.
EMPLOYEE : 1568
OFFICERS : 297
STAFFS : 72
WORKERS : 1212
 USHA MARTIN WIRE & WIRE ROPE AS PER NATIONAL &
INTERNATIONAL STANDARDS & SPECIFICATION SUCH AS:

1) Indian specification

2) ISO specification

3) British standard specification

4) American petroleum institute

5) Indian railway specification

6) Defense department specification

7) Lloyd’s specification

8) Federal specification

9) ASTM specification

10) Canadian specification

11) Australian specification

Approved by:

1) ISI

2) Director General of Mines & Safety

3) Lloyds register of shipping

4) American of shipping

5) American petroleum Institute

6) Director General of supplies & Disposal

7) Det Morsk varities

As UML is ushering in an era of total quality management, it

has adopted a strategy to import ,”Total Quality
Management” to its people.
UML has established a wide export base over the years, today
the company exports 60% (approximately) of its product over
46 countries around the world.

BANKERS OF ORGANISATION

1) Canara bank

2) Allahabad Bank

3) State Bank of India

4) United Commercial Bank

5) The Bank of Tokyo Ltd.

6) American Express Bank

7) Hong Kong & Shanghai Bank Corp. Ltd.

8) Bank of India

9) Banpue de Paris
 BACKGROUND
OF
THE COMPANY

----- Usha Martin is a multi unit, multi product, and diversified

engineering conglomerate with ten manufacturing units in India
and one in Thailand.

----- Its product include - alloy steel, Wire Ropes, Wires, Jelly
filled telecommunication cables, Special purpose machines,
Ropeways, Material handling systems equipment accessories
industrial Telecom services and software development.

-----The group turnover is around 1266 corers and for the Usha
Martin Limited (Wire & Wire Rope Division) are around 330
corers.

-----The group is also serving through a daily newspaper "Prabhat

Khaber" Krishi Gram Vikas Kendra, Usha Scientific Research
Institute, Usha Martin Technical Institute, and Usha Martin
Learning Center.

-----The Usha Martin Group has offices and business concern in

Thailand, USA, UK, South Africa, Denmark and Middle East.
 PRESENT SCENARIO

At present, the group has three principal manufacturing divisions

of Wire & Wire Rope, Steel and Cables.

Wire and Wire Rope Division

The ISO 9001-certified 100,000 MT / annum manufacturing

facilities at Ranch! (Eastern India) are amongst the top four wire
rope producers in the world. Since its inception, the division has
continuously developed and expanded its range of product
offerings and is considered a pioneer in certain classes of
products in India. Steel wire ropes manufactured by the division
find wide applications in oil exploration, mining, elevators, Crane,
fishing, construction, load transportation and general
engineering sectors.

Steel Division

A backward integration initiative, the Usha Alloys & Steels

Division (UASD) at Jamshedpur is one of the largest amongst
secondary steel manufacturers of specialty steel long products in
India. With ISO 9002 certified facilities, UASD has pioneered the
unique process of steel making through mini blast furnace-arc
furnace route which ensures superior quality of steel at a lower
cost. UASD serves a range of industries like automobile, general
engineering, fasteners, railways, defense and power.

Apart from these, the Group has three other divisions.

Machinery Division

This ISO 9001 unit located at Bangalore was set up in 1974 to

manufacture Wire Drawing and allied machines. Over the years,
the division has added a wide range of Wire, Wire Rope and
Cable machinery to its product range and is now the leader in
this field in India. The division started with technical collaboration
with M/s Marshall Richards Barcro of UK and subsequently has
collaborated with internationally reputed firms like De-Angeli
Industries SPA, Italy, Stolberger Maschinenfabrik, Germany, Hi-
Draw Machinery Ltd, UK and Redaelli Techna Meccanica, Italy. A
facility in Ranchi has also been created for manufacturing
machines required for Wire Drawing and Stranding Applications.

Usha Ismal Division

This unit, having manufacturing unit in Ranchi (Eastern India), is

the leader in the field of pre-stressing equipment & accessories
and also executes pre-stressing job on turnkey basis. Besides, it
provides services for jointing of reinforcement bars by
mechanical splicing. All major civil contractors of National
Highway Authority of India, Indian Railways, and PWD are regular
users of these products and services.

It also offers hydraulic presses & accessories for manufacturing

mechanically spliced wire rope slings, machines for proof load
testing of wire rope slings, and die-less hand operated hydraulic
crimping tools. These products find wide application with Steel
Plants, Port Trusts, Oil Sector, Heavy Engineering Industry,
Electricity Boards, Electrical Contractors, and Factories.

Cables Division Under UM Cables (A Subsidiary of Usha

Martin Ltd)

The Cable Division of Usha Martin Limited has emerged as a

leading manufacturer of jelly-filled underground
telecommunication cables in India. The sophisticated
manufacturing facilities, which went on stream in 1988, are
located in a 24 acre complex at Tatisilwai, near Ranchi in the
state of Jharkhand in India. The company integrates technology
from KABEL RHEYDT (formerly AEG KABLE), GERMANY, a member
of Alcatel Group - is rated as one of the most efficient plants in
the country and a benchmark in the industry. The 6.5 Mn
Conductor Kilometer Plant includes computer - controlled critical
equipments, imported from International Leaders in cable
technology. State-of-the-art equipments combined with technical
expertise produce International Quality Jelly Filled
Telecommunication Cables.
UML NATIONAIONAL AND INTERNATIONAL COMPETITORS

SL. NO. NAME OF THE COMPETETOR CAPACITY

1 FORT WILLIAM, KOLKATA 18000TPA
2 BOMBAY WIRE ROPE, MUMBAI 21500 TPA
3 BHATAT WIRE ROPES, MUMBA 20400TPA
4 MOHATTA&HACKELS LTD. MUMBAI 18000TPA
5 SOUTH INDIA WIRE ROPE, KERLA 18000TPA
6 MICKEY ROPE, RANCHI
7 JCT, HOSHIARPUR
8 ASIAN WIRE ROPE, HYDERABAD
9 ORIENT WIRE ROPE, INDORE 345000TP4
10 UNTED WIRE ROPE, MUMBAI
11 SHARE WIRE ROPE, MUMBAI

INTERNATIONAL COMPETITOR

KIS WIRE, KOREA

FEDGER.SWIZERLAND

Al STR1ADRAUGHT, AUSTRIA
 Vision

In our chosen business, we shall retain market leadership in India

and shall be globally competitive through customer orientation
and excellence in quality, innovation and technology.
 Social Commitment
USHA MARTIN Group's SOCIAL Commitment through KRISHI
GRAM VIKAS KENDRA.

MANAGEMENT COMMITEMENT AND SUPPORT SINCE 1977 "IN

EVERY VILLAGE WHERE HUNGER PERSISTS. HUMAN BEING MUST
BEEMPOWERED TO DISCOVER THEIR OWN VISION EXPRESS
THEIR OWN LEADERSHIP. CREATE THEIR OWN SOLUTIONS AND
WORK. TOGETHER TO ACHIEVE THEIR OWN SUCCESS"

KGVK Activities
• AUGMENTING WATER RESOURCES THROUGH WATERSHED
MANAGEMENT

• SUSTAINABLE INCOME GENERATION THROUGH COTTAGE

INDUSTRIES & LIVE STOCK MANAGEMENT

• CAPACITY BUILDING THROUGH "AGIVIKA RESEARCH &

TRAINING CENTER"

• HEALTH & FAMILY WELFARE PROGRAMMES

•WOMEN EMPOWERMENT THRU "SWASHAKTI11 PROGRAMME

KGVK Projects

IN PARTNERSHIP WITH GRASS ROOT CIVIC SOCIETY, CORPORATE

AND GOVERNMENT

• INDIA CANADA ENVIRONMENT FACILITY (ICEF) PROJECT - FOR

WATER RESOURCES CONSERVATION & CONJUNCTIVE
UTILISATION FOR ENVIRONMENTAL RESTORATION (PROJECT
COST Rs 10.0 CR)

• ICICI - CINI PROJECT - FOR PRIMARY HEALTH SERVICES AT THE

GRASS ROOT LEVEL PROJECT COST Rs. 2.0 CR)

• PROJECT WITH US AID ALONG WITH CEPDA - FOR TRAINING

BAREFOOT WORKERS IN VILLAGES FOR MAKING THEM 1ST POINT
OF CONTACT IN VILLAGE HEALTH SERVICES

• PROJECTS WITH GOVT OF INDIA FOR WATER SHED, WOMEN

EMPOWERMENT, EDUCATION etc.

• TOTAL PROJECTS WORTH Rs. 18 CR IN HAND.

 Group Companies
Manufacturing

Usha Siam Steel Industries Public Company Limited,

Thailand (TJSSIL)

A subsidiary of the group, it manufactures wire and wire ropes

and has an annual capacity of 30,000 MT.

• European Management & Marine Corporation

Limited (EMM)

Located at Aberdeen, UK, it specializes in providing services in

connection with oil drilling and exploration activities.
Manufactures and sells wire ropes and related services like
chains, anchors and end terminations. EMM (UK) has two
subsidiaries namely EMM CASPIAN LIMITED & EMM KAZAKHSTAN
LIMITED.

• Brunton Shaw UK Limited (BSRK)

Acquired by the group in 2001, this subsidiary of the group has a

state-of-the-art manufacturing facility at Nottinghamshire, UK for
producing 12,000 MT per year of high end steel wire rope.

• Brunton Wolf Wire Rope FZE Co.

Brunton Wolf Wire Rope FZE Co. established in 25th September

2003. It is the first wire rope factory in Middle East, situated in
Jabel All Free Zone Enterprise (FZE). The main objective of the
concern is to satisfy the huge requirement of steel wire ropes
specially for Oil and Construction sector. The plant has the
manufacturing capabilities of steel wire ropes, Non rotating 35x7
Crane Rope, wire rope slings for oil rigging. It has already started
regular business in various Middle East countries as well as
export to Singapore, U.K. & Europe. In near future plant will be
making elevator, fine cord in association with Gustav wolf-
Germany.

• UM Cables Limited (UCL)

A wholly owned subsidiary of Usha Martin Group, located at
Silvassa, Western India, manufactures PIJF Copper Telecom
cables and Optical Fibre Cables and has an annual capacity of
2.9 MCKM and 35000 RKM respectively.

Information Technology

• Usha Communications Technology

Usha Communications Technology is a high end telecom
software products company and offers a range of solutions that
cover the needs of the next generation communications
providers, both emerging and established.

• Usha Martin Info tech Ltd

USOFT has been set up to focus on software aplication

development and consultancy for telecom technologies. It will
work on emerging technologies such as WAP, Symbian and
BG.The development centre is at Gurgaon, near New Delhi.

• UACT (Usha Martin Academy of Communications

Technology)

UACT has been set up at Chennai in association with TeNet of IIT

Chennai. It aims to emerge as a training and educational
institution in the field of telecommunications, Information
Technology and technology management.

Distribution Centers

Usha Martin International Limited

Established in 1997 in UK, it is formed to facilitate distribution

and marketing of the group's wire and wire rope products to
international market. The company has 5 branch
offices/distribution company located at Glasgow, Houston,
Johannesburg, Copenhagen and Dubai.

• Usha Martin Singapore Pte Limited

This is a 100% subsidiary of usha Martin Limited. Established in

2000, with an objective of distributions of Wire & Wire rope
promotes of the group in South East Asia.

Services
• Usha Breco Limited

Established in 1969, Usha Breco Ltd. a joint venture between

Usha Martin Industries and British Ropeway Engineering Co. UK,
is today South East Asia's leading Ropeway Project Engineering
Company.

• Usha Martin Ventures Limited Venture Capital

Division

This acts as a venture investor for expansion stage to

consolidation stage equity financing in sound and promising IT /
Telecom / E-Commerce / Media / Bio - Technology ventures.

• Usha ISMAL Limited

This unit, having manufacturing unit in Ranchi (Eastern India), is

the leader in the field of pre-stressing equipment & accessories
and also executes pre-stressing job on turnkey basis. Besides, it
provides services for jointing of reinforcement bars by
mechanical Established in 1969, Usha Breco Ltd. a joint venture
between Usha Martin Industries and British Ropeway Engineering
Co. UK, is today South East Asia's leading Ropeway Project
Engineering Company.
 SOURCES OF THE RAW MATERIAL

Raw Materials

Steel wire rod (90to96%) : UML, TATANAGER

Steel Wire Rod (4 - 10%) : Imported From

Germany

Fiber Core : M/S Chhotanagpur

Wire Rope, Arrah

Other Raw Material : M/S Hindustan zinc &

Other Supplies 25% and balance is imported.
 OBJECTIVE

The objective of the research is to

1) To study & evaluate the Supply Chain Macro Processes.

2) To find out the target market and consumer satisfaction by

the help of marketing mix strategies in the national and
international market. The reason would be related to the
organizational logistic process instrumental in the smooth
transportation and improved
UML profit.
 The Supply Chain Macro Processes

The emergence of supply chain management has broadened the

scope across which company's makes decisions. The scope has
expanded from trying to optimize performance across the
division, to the enterprise & now to the entire supply chain. This
broadening of scope emphasizes the importance of including
processes all along the supply chain when making decisions.

From an enterprise's perspective, all processes within its supply

chain can be categorized into three broad areas; processes
focused downstream; processes focused internally & processes
focused upstream.
We use this classification to define the three macro supply chain
processes as follows.

a) Customer Relationship Management (CRM): Processes

that focus on downstream interactions between the enterprise
& its customers.

b) Internal Supply Chain Management (ISCM): Processes that

focus on internal operations within the enterprise.

c) Supplier Relationship Management (SRM): Processes that

focus on upstream interactions between the enterprise & its
suppliers.

Why focus on the Macro Processes

As the performance of an enterprise becomes more closely

linked to the performance of its supply chain, it is crucial that
firms focus on these macro processes. After decades of focusing
on internal processes, a firm must expand the scope beyond
internal processes & look at the entire supply chain to achieve
breakthrough performance. The goal should be increasing the
total profitability of the supply chain.
Good supply chain management is not a zero sum game where
one stage of the supply chain increases profit at the expense of
other; instead it is a positive sum game where supply chain
partners can increase their overall level of profitability by
working together.

Therefore, to increase the supply chain surplus most effectively

the firm must expand their scope beyond their enterprise &
thinks in terms of all these three macro processes.
Customer Relationship Management (CRM)

The CRM macro process consists of processes that take place

between an enterprise & its customers downstream in the supply
chain. The goal of the CRM macro process is to generate
customer demand & facilitate transmission & tracking of orders.
Weakness in this process results in demand being lost & a poor
customer experience because orders are not processed &
executed effectively. The key processes under CPM are as
follows:

a) Marketing: Marketing processes involves decisions

regarding which customer to target, how to target customers,
and what products to offer, how to price products, & how to
manage the actual campaign targeting customers. Successful
software vendors in the marketing area within CRM provide
analytics that improve the marketing decisions on pricing,
product profitability & customer profitability among other
functions

b) Sell: The sell process focuses on making an actual sale to

a customer (compared to marketing where processes are more
focused on planning who to sell to & what to sell) The sell
process includes providing the sales force the information they
need to make a sale & them executing the actual sale. Executing
the sale may require the sales force (or the customer) build &
configure orders by choosing among a variety of orders &
features. The sell process also requires such functionality as the
ability to quote due dates & access information related to a
customer order.

c) Order management: The process of managing customer's

orders as they flow through enterprises important for the
customer to track his orders and the enterprise to plan &
execute order fulfillment. This process ties together demand
from the customer with the supply from the enterprise. Order
management software's available earlier were handled by legacy
systems or had been a part of an ERP system. Recently, new
order management systems have emerged with additional
functionality that enables visibility of orders across the often
numerous order management systems that exists within a
company.

d) Call Service center: A call/service center is often the

primary point of contact between a company & its customers. A
call/service center helps customers place order, suggest
products, solves problems & provides information on order
status.

The aforementioned CRM processes are crucial to the supply

chain as they cover a vast amount of interactions between an
enterprise & its customers. The customers must be the starting
point when trying to increase the supply chain surplus because
all demand, and therefore revenue, ultimately arises from them.
Thus the CRM macro process is the starting point when
improving supply chain performance.
 Internal Supply Chain Management (ISCM)

ISCM is focused on operations internal to the enterprise. ISCM

includes all processes, involved in planning for & fulfilling a
customer order. The various processes included in ISCM are as
follows:

a) Strategic Planning: the goal of this process is to plan

resource availability in the supply chain network .The decisions
may include where to locate plants & warehouses, what type of
facilities to build, and what markets to serve from each facility.
Although these decisions are made less frequently, yet the
impact on supply chain performance can be quite large & is felt
potentially for years.

b) Demand Planning: this set of process involves forecasting

future demand. It also includes decisions to manage demand,
such as promotions planning.

c) Supply Planning: the supply planning process takes as an

input the demand forecasts produced by demand planning & the
resources made available by the strategic planning, & then
produces an optimal plan to meet this demand. Factory Planning
& inventory planning capabilities are typically provided by supply
planning software.

d) Fulfillment: Once a plan is in place to supply the demand, it

must be executed. The fulfillment process links each order to a
specific supply source & means of transportation.
e) Field Service: Finally after the product has been delivered
to the customer, it eventually must be serviced. Service
processes focus on setting inventory levels for spare parts as
well as scheduling service calls.

Given that the ISCM macro process aims to fulfill demand that is
generated by the CRM macro processes. When forecasting
demand, interaction with CRM is essential as the CRM
applications are touching the customer & have the most data &
insight on customer behavior. Similarly, the ISCM processes
should have a strong integration with the SRM macro process.
Supply planning, fulfillment, & field service are all dependent on
supplier & therefore the SRM macro processes.

Supplier Relation management (SRM)

SRM includes those processes focused on the interaction

between the enterprise & suppliers that are upstream in the
supply chain. There is a very natural fit-between SRM processes
as integrating supplier constraints are crucial when creating
internal plans. The major SRM processes are as follows:

a) Design Collaboration: The goal of this process is to

improve the design of products through ideas as the joint
selection (with suppliers) of components that have positive
supply chain characteristics such as ease of manufacturability or
commonality across several end products. Other design
collaboration activities include the sharing of engineering change
orders between manufacturers & its suppliers. This eliminates
the costly delays that occur when several suppliers are
concurrently designing components for the manufacturer's
product. Good collaboration at this stage can create huge value
because 80% of product cost is determined at design stage.

b) Source: the source process qualifies suppliers & helps in

supplier selection, contract management,& supplier evaluation. A
key goal is to analyze the amount that an enterprise spends with
each supplier, often revealing valuable trends or areas of
improvements. Suppliers are evaluated along several key criteria
including lead time, reliability, quality & price. This evaluation
helps improve supplier performance & aids in supplier selection.
Contract management is also an important part of sourcing as
many suppliers have complex details that must be tracked (such
as price reductions for reaching certain volume customers)

c) Negotiating: Negotiations with suppliers involve many steps

starting with a request for quote (RFQ). The negotiation process
may also include the design & execution of auctions, the goal of
this process is to negotiate an effective contract that specifies
price & delivery parameters for a supplier in a way that best
matches the enterprise needs.

d) Buy: The buy process executes the actual procurement of

materials from suppliers. This includes the creation,
management, & approval of purchase orders.

e) Supply Collaborations: Once an agreement for supply is

established between the enterprise & a supplier, supply chain
performances can be improved by collaborating on forecasts,
production plans, & inventory levels. The goal of collaboration is
to ensure a common plan across the supply chain.
Saanifkant improvement in supply chain performance can be
achieved if SRM processes are well integrated with appropriate
CRM & ISCM processes. The theme of integrating in three macro
processes is crucial for improving the supply chain performance.
 MARKETING

Marketing management is the practical application of marketing

techniques. It is the analysis, planning, implementation and
control of programs designed to create, build and maintain
manually beneficial exchanges with target market. The
marketing manager has the task of influencing level, timing and
composition of demand in the way that it will achieve
organizational objectives.
Marketing is typically seen as the task of creating, promoting,
delivering goods and serving services to consumers and
business. Marketers are skilled in stimulating demand for a
company's product, but this is too limited view of the task
marketers performs. Just as production and logistics
professionals are responsible for supply management, marketers
are responsible for demand management.
UML follows the industrial marketing. Industrial markets deal with
products (goods and services) for the business market. The
business buyer will use up the product to help it make new
products. Industrial markets (which include capital markets) are
the consumer markets of the business world.
 MARKETING CONCEPT OF UML

The marketing concept is a management orientation that holds

that the key task of the organization is to determine the need
and want of target markets and to adopt the organization to
delivering the desired satisfaction more effectively and efficiently
than its competitors.
The marketing concept is a management philosophy or ethos
which purposes that an organization should strive to satisfy the
needs and requirements of the consumers through a coordinated
set of activities, insuring also the accomplishment of
organizational objectives in the process.

UML follows the three marketing concepts:

1) CUSTOMER ORIENTATION; UML holds the marketing

concepts that 'customer is king' and 'marketing begins with
customer and end with customer'.

2) INTEGRATED MARKETING EFFORT; UML follows

integrated management action which means that all the
managerial functions must be rightly integrated with one
another, keeping marketing as the focal point.

3) GOAL ACHIEVEMENT; The over all philosophy of the UML is

goal achievement and obtaining profitable sales.
 STRATEGIES FOLLOWED AT UML IN THE
FIELD OF MARKETING

By preparing statements of MISSION, POLICY, STRATEGY and

GOALS, headquarters establishes the framework within which the
division and business unit prepare their plans unit to set their
own sales and profit goals and strategies .Other set goals for the
business units but let them development their own strategies.
Still others set goals and participate in developing individuals
business strategies.

ALL CORPORATE HEAD QUARTERS UNDERTAKE FOUR PLANNING

STRATEGIES:

 DEFINING THE CORPORATE MISSION

 ESTABLISING STRATEGIC BUSINESS UNIT
 ASSIGINING RESOURCES TO EACH SBU
 PLANING NEW BUSINESS, DOWNSIZING, OR TERMINATING
OLDER BUSINESS.

The marketing manager is the most significant contribution to

the strategic planning process, with the leadership roles in
defining the business mission, analysis of the environment,
competitive and quality plans to implement the business
strategies. This involvement extends to the development plans
and operating plans that are fully linked with the strategies plan.
The marketing plans are basically concerned on very four
important organization levels.

 . CORPORATION LEVELS
 . DIVISION LEVEL
 . BUSINESS UNIT
 . PRODUCT LEVEL

THE MARKETING PLANS AT UML OPERATION TWO LEVEL

 STRATEGIC
 TACTICAL

THE STRATIGIC MARKETING PLANS LAY OUT THE

FOLLOWING

 TARGET MARKETS
 VALUE PROPOSITION
The above mentioned are offered based on an analysis of the
best market analysis of the best market opportunity.

THE TACTICAL MARKET PLAN INVOLVES THE FOLLOWING:

 MARKETING TACTIC
 PRODUCT FEATURE
 PROMOTION
 MERCHANDISING
 PRICING
 SALES CHANNEL
 SERVICES

The marketing plan is the central instrument for directing and

coordinating the marketing effort. Today the marketing
department does not set the marketing plan by it self, teams
with inputs and sign the offers from very important function.
The plans are implemented at the appropriate levels of the
organization results are monitored and corrective action is
Taken when necessary. The complete planning and
implementation and control cycle is attached hear in report
later.
STRATERGIC - PLANING, IMPLEMENTATION
AND CONTROL PROCESS

CORPORATE RESULT

DIVISION ORGANISATION MEASURING

BUSINESS IMPLEMENTATION DIAGONISIS

PRODUCT CORRECTIVENESS

PLANNING IMPLEMENTING
CONTROLING
 SOURCES OF INFORMATION

1) PRIMARY DATA Nature: Fact,

Knowledge Opinion:
Descriptive

Source: Communication Approach

Marketing, production Questioning, interview
Planning, Sales,
Store, Purchase departments.

2) SECONDARY DATA Nature: Internal, quantitative,

Periodic.

Source List of data

SALES Actual sales, target sales

Dispatch, sale and domestic
Sales & exports in total sales.
MARKETING Size of the market,
number of Customers &
competitors , pricing policy

STORE Type of inventories &

ware Housing policy

PLANNING Order position, delivery

period & failures

ANNUAL REPORT Sundry information

Journals, official document Survey
Conducted by UML Invoice, consumer
behaviour

MARKETING MIX STRATEGY OF UML

What is marketing mix?

"Marketing mix the set of controllable, tactical marketing tool
that the firm blend to produce the response it wants in the
target market. The marketing mix consists of everything the firm
can do to influence the demand for its product.
Marketing mix is the blending of certain strategic elements to fit
the need of preferences of a specific target market .The
combination of such elements or variable determined the degree
of marketing success .The marketing mix , like a puzzle ,has
numerous pieces that must be appropriately combined for
successful result .It includes the product offered by the firm, the
distribution channels it uses to make the product available to
customer ,the price it charges for the product ,and its promotion
activities to popularize the product in the market.

Theoretical aspects of the study

To achieve the company desire, every organization develop it on
marketing mix strategy .the marketing mix strategy depends on
various decisions on the mix of marketing tool to use .These
tools classified into five broad categories known as the 5 P of the
marketing.

1) Product
2) Price
3) Promotion
4) Place
5) Packaging

PRODUCT

The changing paradigm of USHA MARTIN LTD. clearly shows its

changing orientation towards the market place. In the beginning
i.e. in 1960 it was product oriented then in mid 80's it become
process oriented and now the company has become customer
oriented.
The company believes in the philosophy of producing quality
product for the customer. This is the reason why companies
specification provided by the customer production is done as per
of the ordering information which contains specification,
regarding

1) Size
2) Construction
3) Loading
4) Lay direction
5) Lubrication
6) Core
7) Length
8) Standard
1) Size: It is denoted by the nominal diameter by the rope is
required to be manufactured .Usha Martin offers a wide range of
production of rope, wire and standard of different diameter.
ITEM DIAMETER RANGE
(In mm) Rope 2 to
116mm
Wire .22to 28.00
Standard M.20to 15.00

2) Construction: It is specified the number of strands in each

rope wires in each wires in each strands .Generally construction
i.e. expressed in X/Y where
X = no. of strands in a rope V = no. of wire in each strands

CONSTRUCTION NO.OF STRANDS NO.OF WIRE

IN EACH
STRANDS
6/7 6
7
6/19 6
19
6/36 6
36
7/7 7 7

3) Loading: It is done through galvanization in which a coil of

Zinc is applied on the steel rod before wire drawing or on wire .It
protects the wire/rod against corrosion and increase durability.
Pope made of Zinc -coated wire is called galvanized rope. Now
Usha martin also offer plastic coating in which plastic is applied
on the rope to give it the additional life.

4) LAY DIRECTION: Lay direction basically determines direction

in which wires and strands are be laid in as a strand and rope
respectively lay direction can be two type:-

a) Ordinary (Right handed ordinary/left handed ordinary): In this

type wire strand and strand in a rope are twisted in opposite
direction.

b) Langs (Left handed langs/Right handed Langs): In the wire in

strand and strand in rope are twisted in same direction.

5) LUBRICATION: Usha Martin provides lubrication as well as

un-lubricated products depending upon the end use of its
product, by the customer. Ropes are usually lubricated during
stranding and if required during closing also. Lubrication
prevents corrosion wear and tear during the process of
manufacturing during use.

UML used two type of lubrication:

a) Petrol based lubricants - used for general engineering

ropes, elevator ropes and passenger rope and passenger rope
ways.

b) Bit UML lubrication - these are used for products meant for
fishing excavator and anchor mooring purpose.

6) TENSILE STRENGTH: It is basically determines the breaking

force of the rope .it is the expressed in term of kg/mm2. To
achieve a specific tensile strength demanded by customer UNL
takes related aspects right from the beginning of the
manufacturing process.

a) Percentage of the carbon in wire rod.

b) Temperature
c) Speed of machine
Generally UML offers its product with a tensile strength in 1/6 th
ratio i.e. 6 times more as specified by customer.

7) CORE- UM products include rope with two type of core :

a) Fiber core - it can be made of any of the following three

material
- Jute
- Sisal
- Polypropylene

b) Steel core - it can be two type

- Wire strands core - it is single strand used as a core and is of

same construction as that of other strands in a rope.
- Independent wire rope core - it is an individual wire rope
used as core in another wire rope.

8) LENGTH - UM offers its products as per the length required by

the customer. Usually the length is expressed in term of
meter/feet.
9) STANDARD - UML includes both national and international
standards. The company emphasis on maintain global quality
standards. It has been awarded ISO-9001 due to company
emphasis on maintaining global quality standards.
Apart from the above maintained specification UML also tries to
add value to its product through

a) Quality
b) New product
c) Guarantee

PRODUCT PORTFOLIO

WIRES
BALL BEARING : BEARING
INDUSTRY
NEEDLE WIRE : NEEDLE
INDUSTRY
SREEL SPRING USE : SPERING
CYCLE SPOKE WIRE ; CYCLE
INDUSTRY
MOTOR SPOKE WIRE : MOTER
INDUSTRY
HIGH CARBON WIRE : VARIOUS
USES
STEEPLE PIN WIRE : STAPLE WIRE
ROPE & WIRE
GUIDE ROPE AERIAL
LOCKED WIRE MINES
AERIAL ROPE AERIAL
ROPERY
OIL DRILLING ROPE OIL
EXPLORATION ROPE
ELEVETOR ROPE HOUSING,
BRIDGE
FISHING ROPE FISHING
EXCAVATOR ROPE : MINES
CARGO LIFTING : DOCKYARD

PRICING

In comparison of the other wire rope manufacturing companies

UML product are highly priced because UML got ISO- 9001
certification due to which leads high price .The pricing done by
kolkata head office. Head office prepares the price list region
wise and customer wise taking consideration of the product of
region wise and customer wise taking into consideration of
product of:
a) Strand of the product
b) Discount
c) Credit term
d) Competitor's price
e) Channel and no. of dealers in each channel

1) C & F (Cost & Freight): Selling price include cost of goods

and fright charges only, while insurance are supposed to be paid
by the buyers himself.

2) ClF (Cost. Insurance& Freight): Selling price includes cost

of the good insurance freight .In export of UML's selling price
includes all expenses including delivery of good upon overseas
vessels provided by the buyer. The recommended price list gets
final approval by the company president, Marketing, JMD and MD
for the future concern.

PROMOTION

The product in which UML deals constitute quality and safety

conscious customer since UML has monopoly in the Indian
market and that is because of it quality product. Camping as
given by FMCG UML doesn't have any advertisement in
television, media or in a print media. UML takes following
activities as its promotion tools -

 Participating in the trade fair

 Inviting the customer for in plant demo
  Participating in regional activities i.e. UML is currently
serving through Krishi Gram vikash Kendra
 Providing up-to-date information about the company's
performance through it website WWW.USHAMART1N.COM
 UML also takes its offer sales service as promotional tool
making a good rope for any customer.
 UML takes sales promotion by providing allowances,
guarantee, discount and credit to customer.
 UML also takes personal serving as promotional campaign.

UML adopt the branding strategy. An image has to be

created for acceptance by both customer and intermediaries

PLACE

UML takes niche marketing at its marketing strategies. It follows

as systematic procedural steps in placing its product in a
particular market or in building up a new customer.

Region wise major customer

Western region
• Gnomon India Ltd, Mumbai
• Parekh and Sons , Bhavnagar
 • Fortuna Engg.indusries, Mumbai
• Premier mills and stores, Ahmedabad
• Jindal strips
• Oil and natural Commission, Ankleswer
• Mazgoan Dock, Mumbai
• Essar steels, Surat
• Great Eastern Shipping company, Mumbai
• Mukund Ltd., Kalwa
• ACC, Adilabad
• R eliance industries infrastructure ,Jamnanagar
• Nuclear Power Cooperation of India
• WCL

NORTHEN REGION
 . Hindustan Electro Graphite Ltd,Mandideep
 . Akasdeep rajasamand,Rajasthan
 . BHEL,panipath
 ^ Vee Vee sales corp.,Kathgodam
 . Roshan Jain and Co.Ltd.,Udaipur
 . HCL
 . Maruti Udyog Ltd.
 . NCL

EASTERN REGION
 Indian Ropeway and company Ltd., Kolkata
 Ferro Scrap Nigam Ltd.,Dhanbad
 TIL,Kolkota
 Key Pu Enterprices
 Eastern coalfield
 MCL,Talcher
 Unimetch lifting equipment ,Howrah
 Otis India Ltd
 Philips India Ltd.
 Steel India Ltd
 Indian Iron and steel Co.Ltd,Burnpur
 HEC,RANCHI
 Tata Iron And Steel Ltd.Jamsedpur
 Oil India Ltd.,Dulijan

Southern Region
 United Martine Madres,Kollam
 Kec international Ltd.Atamakur
 Larsen & Turbo Ltd.
  Johnson lifts pvt.Ltd
 Marine Trade Link ,Kottayam
 K.V. Ratanam,Karnataka

PACKAGING
It is one of the important elements of marketing mix strategy
.Packaging can not for designing covering of the product not only
give it an appealing touch but also to make it free from any kind
of damage of outside. A well designed package can create
convenience and promotional values.
Usha Martin is also trying to improve its packaging to give its
product an aesthetic look. Earlier it was using colorless wheel for
its product but now it is using blue colored wheel to symbolize
cool and serene. At present UML provide its product three
different packages:
1) Iron simple coil of wire/wire ropes with jute covering or plastic
covering on it.
2) Wire /Wire rope coiled around a wooden reel covered either
plastic or jute. Wooden cover is also provided for specific product
of customers.
3) Wire/Wire rope coiled around an iron reel plastic or jute
covering on it.

Material used for packaging

1) Polypropylene coated Hessian

2) Crape paper
3) Transparent adhesive tape
4) Poly coated sheets
5) Mango wood for domestic
6) Pine wood for export ~
7) Steel reels for specific customer
8) Corrugated sheets

BENFITS OF UML BY MARKETING MIX CONCEPT

The marketing mix concept in UML gives the following

advantages:
 It provide a valuable framework for allocation financial
and human resources
 It helps to allocate responsibilities
 It facilities communication
 It help in goal achievement
 It promotes customer satisfaction
 It provide an analyze elasticity's

MARKETING MIX STRATEGIES

 SALES PROMOTION

ADVERTISEMENT
PRODUCT DISTRIBUTION TARGET
SERVICES PUBLIC RELATION CHANNEL CUSTOMER
PRICE
DIRECT MAIL TELE
MARKETING
INTERNET

PROCESS FLOWCHART OF WIRE

WIRE RODE

PATENTING PICKLING PICKLING

DRAWING DRAWING DRAWING

TRANSFER PATENTING

DRAWING

GALVANISING ROLLING TRANSFER PATINING ANNELING

TRANSFER DEAWING DEAWING

ANNEALING GALVANISING TRANSFER TRANSFER

TRANSFER TRANSFER

PROCESS FLOWCHART OF ROPE

WIRE ROD

PATENTING PICKLING
GALVINISING PERTAINING

DRAWING

DRAWING

STRANDING STANDING GALVINISING

CLOSING TRANSFER CLOSING

TRANSFER

PATENTING

GALVANISING DRAWING

DRAWING STRANDING

STRANDING

CLOSING

TRANSFER
 LOGISTIC CONSTRANTS

OBJECTIVE

The broad objective of the study is to find out the reasons of the
sales volume .The reason would be related to market logistic,
which contain the study of distribution network.
The study would reveal:
a) Whether the logistic function are properly followed by UML or
not.
b) If not, then where the improvement are required.
c) Is the existing distribution channels sufficient with some
modifications improvement or does it needs to be changed to do
products well in the market and to increase the share volume.
d) Is ERP system (BaaN software) is suited the logistic system.

Specific objective

The generalized objective can be translated in to specific

objective.
 • To study the function of logistic department of UML.
 • To study the distribution network.
 • To find out the lacunas in the functioning in the logistic
department.
 • To find out whether the present distribution network
need some changes.
 •
 • To study the consumer's behavior and to find out which
area need improvement.
 • To suggest corrective measures and identify the
optimum or best alternative.

MARKET LOGISTICS

The process of getting goods to customer has traditionally called

physical distribution. Physical distribution starts as the factory
.Managers try to choose a set of warehouse (stocking point) and
transportation carries that will deliver.
It involves planning, implementing and controlling the physical
flow of material and final goods point of origin of use to meet
customer requirement.
In the supply chain management, the logistics environment is
constantly evolving as a result of changes in markets,
competitor, suppliers, and technology. In order to develop or
refine an enterprise strategy to match this changing
environment, a systematic planning and design methodology is
necessary to formally include the relevant consideration and
effectively evaluate alternatives. In this work, we provide a
general approach for distribution logistic planning.
Modern logistic system studies consider business process
identification and analysis the central point of their approaches.
To study business process the very simply and well-known
techniques, such as flow charts and data flow diagrams are the
tools of common preference.
It starts with the purchasing and transportation of products from
the suppliers through buyers. The quantities to be purchased are
estimated from the information provided by the stock managers
and the back orders. The second process is concerned the
storage of the goods which takes place in three sites (company's
stores, the transportation department and the warehouses).
These sites maintain the flow of goods to support the
commercialization and the distribution of the products. The final
process is related to the selling and distribution of products. This
process is activated by the costumers' orders and h is carried out
by the company fleet of trucks to distributor.

SUMMARY OF LOGISTIC ACTIVITY

 Procurement inward
transport

Supplier Operation Customer

Ware Housing Stock Control Material

Receiving Physical Distribution Outward Transport
handling

COMMUNICATION

The main task of the UML that trade of Rope and Rope wire
products. Figure shows the -- -iary logistic diagram of the
business process. As we can see by the diagram of figure. •Jie
flow of goods goes from the warehouses to the stores, and then
from the stores to the customers. This part of the process
increases very much the handling and transportation cost. The
diagram helped us to identify a basic weakness of the business
process: the -nnecessary transshipment of the goods. Certainly,
it would be better to send the orders to the transportation
department, and then it should distribute the goods direct to the
customers.

The objective of modeling the distribution company supply chain

with respect to the logistics aspects is to find the right balance
between cutting costs and maintaining costumer responsiveness.
In this way, the tasks that will be carried out are the following:
identify, analyze and recommend the most cost-effective
changes for warehousing and distribution of their goods.
The approach we propose is to use a Supply Chain
Simulation/Optimization model -SCSOM that will help to compare
different planning and forecasting methods and to identify lower
cost distribution policies. In the analysis phase of the modeling,
the first step should be to understand the warehousing and
distribution functions.
The approach we propose is to use a Supply Chain
Simulation/Optimization model -SCSOM that will help to compare
different planning and forecasting methods and to identify lower
cost distribution policies. In the analysis phase of the modeling,
the first step should be to understand the warehousing and
distribution functions. Second, it would necessary to identify the
key areas of cutting costs and customer responsiveness.
The modeling, as per the proposed methodology of the project,
will be based on object oriented language, with support fof
simulation, together a business process modeling tool. The
modeling of system objects will be represented as nodes and
arcs in order to capture the behavior of various business
functions and to model the movement of goods and information.

Definition of DSS Requirements (communication)

The desired functions and features for a Decision Support

System in the context of logistics should include the analysis and
evaluate capabilities. A desired feature list defines the data
entry, manipulation, and reporting capabilities of the system.
Below, we provide an extensive, although not necessarily
exhaustive, list of features that should be considered for logistics
DSS. Input from functional managers, information systems
personnel, and experienced users should be obtained when
defining requirements.

Functional Requirements

1. Data Entry. Can accept data from common spreadsheet and

CIS packages.

2. Data Manipulation. Facilitates data manipulation to

complete "what if" analysis.

3. Scope. Consider relevant logistics costs including inbound

transportation, distribution center operations, and customer
freight.

4. Search Algorithms. Includes algorithm or heuristics to

search for and identify the optimum or best alternative.

5. Reporting. Includes graphical reporting and display capacity

Technical Requirements

1. Operating requirements. Consideration of the capability of

the package with existing hardware, planned hardware, and
system software.
2. Design quality. Consider the overall software design and the
resulting ease of software modification.
Object Oriented and agent based design techniques make the
installation easier and flexible.

3. Documentation. Includes current, complete, and

cross-referenced technical documentation to expedite
modification and installation effort.

Decision Support Requirements

The software should be able to help the user in the decision

questions such as follows:
- How should delivers be grouped into routes?
- What is the best deliver sequence?
- Which routes should be assigned to vehicles?
- How will delivery time restriction be imposed?
Answers to the above questions are fundamental to attain the
most important distribution logistics costs: Minimize the
combination of vehicles, hours; distance requires delivering UML
products.
DISTRIBUTION OF ROPE AND WIRE ROPE
IN UML A PROFILE

Authorized International Govt

Dealers Customer Departmant

Kolkatta Markt

Ranchi
UML

Customer
Code Entered In JSR Import
Computer
Order no

Works

Packing Loading
ready

Relesing Final billing

H.O/Branch
In the content of marketing, logistic may be defined as the
activities involved in the flow of goods as they move from
producer to consumer or business users. Marketing logistics
involve planning the infrastructure to meet the demand, then
implementing and controlling the physical distribution flows of
materials and final good from points of origin to points of use, to
meet customer requirement at a profit. UML adopt the market
logistics to lead the cost is given below: —

M=T+F W + VW + S, Where

M= total market-logistics cost of proposed system

T = total fright cost of proposed system

F W = total fixed warehouse cost of proposed system

VW = total variable warehouse costs of proposed system

S= total cost of lost sales due to average delivery under

proposed system.

The major elements of market logistic in UML are:

• Order Processing
• Ware Housing
• Inventory
• Transportation
• Information Monitoring
• Distribution System

1) Order Processing = In UML the order processing by the

marketing department .To see the position work load delivering
time inventory and production scheduling order and invoice
shipment and receipt of the payment.
In first stage the branch office & head office take the order by
the national and international customer .The specification of the
order is send by the branch office and head office .After the
order UML see the time is available or not after this UML give the
delivery time .After negotiation with customer UML gives the
specific customer no. and order number. After this it is entered in
the computer.
 When the customer number and order no. is entered in the
information system the whole process is the Ranch! UML through
this number.
To get the order UML adopt the Direct and
Indirect communication media available to
Merchandise source and Reseller:

Merchandise
source

DIRECT FLOW INFORMATION INDIRECT FLOW INFORMATION

MEDIA MEDIA
—Salesman visit the trade shows, —Trade journals
factories, dealers, company, —Trade associalion publication
magazine, product specification, —Personal contact with third
catalog, service manual. parties at social and trade
—Merchandise display at showroom meeting,
and sales flower —Government publication and
—Electronic linkage, Labels, Tags, individuals.
Warranty cards. —Marketing research agencies
—Libraries of business univ.
—Private investing agencies
—Financial reporting agencies

Merchandise
Reseller/Dealer
2) INFORMATION MOMTAT4NG: In the UML the distribution
managers continually need up-to-date information about
inventory, transportation and warehousing. For example, In
respect of inventory, information about present stock position in
each location future commitment and replenishment capabilities
are continuously required, Similarly before choosing a carrier,
information about the arability of various modes of transport,
their cost, service and suitability for the particular product etc.is
required .About warehousing .information with respect to space
utilization work schedules .unit load performance. In order to
receive all the information stated above, an efficient
management information system would be of immense use in
controlling costs, improving service and determining the overall
effectiveness of distribution. In UML all the things are attached
by ERP system (BAAN software) make the coordination in the
whole department.

Quality assurance
department

Finance & Administration

Marketing

EPR SYSTEM

Warehous Purchase
e

Distribution System

Whole UML group is connected through this ERP

3) WARE HOUSING = Some warehouse of the UML is given
below in the picture: —
Every company has store finished goods until they are sold,
because production and consumption cycles rarely match. The
storage function helps to smooth discrepancies
between production and quantities desired market. Ranchi UML
follows Made-to-order strategy. So require little or no storage
they shipped quickly to the customers. Generaly UML group has
many warehouse is present in the different part of the country.
Some warehouse is own and some are managed by the dealers.
UML's self managed warehouses are located at kolkatta, Mumbai,
Hydrabad, Chennei, Banglore, Delhi, Faridabad. According to the
need of the customer, Ranchi UML dispatches the finished good
different warehouse. According to the order these warehouse
dispatch the finished good national and international market. To
see the international customer UML create the warehouse near
ports and every corner Of the country.

4) Inventory: The goal of the inventory control is to fill

customers order promptly, and fluctuation in the inventories.
Inventory size is determined by balancing cost and desired levels
of customer.
Inventory is the good of materials available for use by an
organization. There are four categories of inventories. l)raw
material and purchased component 2)work in progress i.e.,
incomplete goods or semi finished material 3) suppliers, such as
paper, typing ribbon Rubricating oil ,cleaning material etc, and

5) fmished or final product.

UML follow the ABC inventory control method. In UML contain
two type of inventory;—
1) Regular consume
2) Occasional consume
Regular consume product is yearly reviewed by the organization
for example Zinc. To see the consumption company forecast
about the inventory.
Occasional consume product is not reviewed by the organization
and some product be taken just in time.

ABC inventory control method of UML

A type of inventory =It is the type of high class of inventory.

Organization keeps 2 to 3 month stock.

B type of inventory =Low class of product .Organization keeps

stock 6 month to 1 year stock.
C type of inventory =This type of inventory planned for 1 year.
This type of inventory include stationary and workshop use
product.

5) Transportation transportation seeks to move good from

point of production and sales to point of consumption in
quantities required at time needed and at a responsible cost. The
transportation system adds the time and place utilities economic
value.
The design and implementation of a DSS for transportation
logistics is a challenge. UML's BAAN software packages to
support fleet managers in the scheduling and routing of vehicles.
To achieve these goal UML adopt two type of transportation
system—
1) Road transport
2) Water transport

Road transport = UML use the contract carries. These

operators transport enter rather formal arrangement to transport
goods for selected customer, whish is usually for definite period
of time.
Truck is the main vehicle used for road. Now variety of LCV's,
auto carriers and articulated trucks are used.

Water transport =In UML amount of good are moved in the

international market. So it takes the help of the water transport.
Through trucks finished goods reach the warehouse, after this it
is transported by the cargo. The cost of the water transport is
very low for shipping. The UML use the Kolkata /Haldia sometime
Mumbai port according to the need of the customer.
DISTRIBUTION NETWORK OF UML RANCHI
PROCEDURE FOR PROCESSING OF ORDERS
WORK FLOW CHART IN THE SELLES CO-
ORDINATION DEPARTMENT
PAPER FLOW
 GLOBLE AND DOMESTIC DISTRIBUTION
STRATEGY GLOBLE DISTRIBUTION
STRATEGY

The company has targeted the value added market. A large

number of distribution centers were subsequent converted into
value changing service centers were adequately stocked to
provide just in delivery to customers. The distribution centers in
Huston (USA), Copenhagen (Denmark) Aberdeen, Birmingham,
Rotterdam (UK), Johannesburg (S.Africa).A tie-up in Dubai &
Singapore has been done to increase product accessibility in the
global market. UML group's ware house is present near the ports,
it help global distribution system

GLOBLE COMPETIVENESS

For global competitiveness, on the marketing front, the opening

of the global distribution centers is expected to enhance the
company's reach. The company has developed a multinational
sales force, which understands the local business environment
well. The build up the distribution network. The stocking point in
likely to increase the synergies in the global market.

DOMESTIC DISTRIBUTER STRATEGY

Rigging shops has been established to increase value adding

turnover. This installation of cutting & coiling machine bears the
end users markets has reduced inventories of the customers end
& help them ship to the just in time (JIT) inventory system. The
company has adopted innovative marketing methods to face
marketing challenges. Direct marketing .promotion of the brand
awareness, creating marketing mix strategy help to promote the
product in national and international market .Warehouse is
present in
the different part of the country .By this way these ware house
help to increase the domestic market.
Production and Dispatch of Export and Home (year06-07)
 Production Perform ance of Export

3000

2500

2000

1500

1000

500

-500
April Jun August Oct Dec Feb

Rope Strand Rope Strand Wire Bright Bar

Despatch Perform ance of Export

3000

2500

2000

1500

1000

500

-500
April Jun August Oct Dec Feb

Rope Strand Rope Strand Wire Bright Bar Total

 Production Performance of Hom e

2500

2000

1500

1000

500

0
April May Jun July Aug Sept Oct Nov Dec Jan Feb March

Rope Strand Wire Bright Bar

Despatch Perform ance of Hom e

3500

3000

2500

2000

1500

1000

500

0
April May Jun July Aug Sept Oct Nov Dec Jan Feb March

Rope Strand Wire Bright Bar

CHANGES BROUGHT & PLANED BY UML TO IMPROVE THE

DISTRIBUTION NETWORK
1) Demand of elevators rope has been increased in metro cities
as well as developed cities due to multistoried building culture so
the company is planning to increase ware house in these cities.

2) Due to increase in the demand of auto spoke wire, the auto

industry has forced the company (UML) to explore the market
possibility for this type of product.

3) The company is Exploring market possibility in overseas

like japan, Singapore, S. korea, etc to get customer over
therefore that the Co. is needed to open the warehouse there.

4) Seasonal product like fishing rope needs to keep in the costal

warehouse so that the customer gets well in time.

5) In Dubai the fisherman are using the wire cage to catch

fishes, so the Co. should meet the international customers & the
domestic customer for this regard.
6) Customer service is badly required in the recent time, so the
Co. want to open the region wise TSD for attending complained
promptly

7) Transporter contract has been reviewed time to time and the

contracts are being given reliable transporters who deliver the
good on time. For making the export more effective through
water ways, Haldia port has been opened for shipment since
year 2000.
 CAUSES AFFECTED THE DISRIBUTEN
CHANNELS WHICH RESULTS IN
THE DELIVERY FAILURE/LATE
1) Late promotion of works order getting final purchase order
from the customer by H.O (Kolkata) cause a chain delay in the
production process. It finally affects the distribution channels.

2) Although works order reaches timely at works, production of

material sometime fails due to some unavoidable
circumstances like machine breakdown &unavailability of raw
materials and other resources.

3) Delay in arrangement of containers for final shipment causes

delay in dispatch from works, and finally could not reach at
Kolkata or Haldia port.

4) Commercial formalities /red tapism at the check post

between works to port sometimes leads to delivery failure. It
generally happens due to some missing information in shipping
documents or incomplete document.

5) Late submission of final shipping document like AR-4,

shipping bill invoice packing, etc at the bank causes delay in
delivery to the customer. Something delay take place in the
custom office for clearing document.

6) Unavailability of ships on time also causes delivery failure,

this happened due to lake of better co-ordination with shipping
line

7) Inadequate stock at overseas (warehouse) distribution

centers also affects the timely delivery.

8) Absence of the consignments sales agents in overseas also

affect the distribution channel.
 ANALYSIS AND INTERPRATION

USHA MARTIN LIMITED assess the logistic function, which help

the raw material which is purchased and then it is planned
accordingly for the production and when the production of
finished good is kept in the stock go down from there it is
dispatched according to the demand of the customer through the
efficient distribution channels to the destination of warehouse
accordingly.

From Purchase Department;

Purchase department deals with the purchase of raw materials

like wire rod and lubricants (from JSR), chemical from Mumbai,
Propane gas from GILO, Zinc lead from Kolkata.
In this department relivent information are incorporated in the
purchase order so that the product supplied by the sub-
contractors, meet desired quality requirements. The product is
reviewed and approved by management representative and
issued by head quality system. The responsibility of
implementing and maintaining the procedural steps of this
procedure rests with in charge of purchase department.

From Planning Department

Planning department deals with the allocation of the work

according to product. Planning department review the purchase
order .After receiving it becomes the purchase order. It includes
all the necessary detail regarding product and also the address
of the consignee. On the basis of this W.P.S (work plan schedule)
is prepared plan horizon of UML is 15 days W.P.S includes
schedules of each and every day .That is from the day
dispatching of the product.
Sometime advance planning is made for the product, which is
always in demand (for e.g. fishing rope)

From Production Department

The main manufacturing plants that UML contains are wire,

strand and rope. It wire and ropes are used for Various
purpose .For e.g. fishing rope engineering rope etc.UML is
specialists of LCWR ropes, which is mainly used ,in mining
industries .UML ropes have to go through a tensile strength test
before dispatching.
From Transportation Department

For dispatching process UML depends on road transport .UML

receives application from the interested transports. All the
transporters have to undergo with a procedure for approval
expect those who are nominated by the customers. Different
methods of procedures are:

a. Past performance method.

b. New transporter selection method.
c. Reference method.
d. If any transporter having ISO 9000 credition.

There is a "transporters approval committee to keep an eye on

their performance. They also issue warnings to them whose
performances are not found satisfactory.
 SWOT Analysis

SWOT ANALYSIS

The overall evolution of a company's strength, weakness,

opportunities, and threat is called SWOT analysis. UML's SWOT
analysis is given below.

STRENTH

> UML ranked under No2 in world and in India No.l Company in
manufacturing of the wire rope.

> Market share is strong.

> Large distribution network

> Dealers, Branch offices, Ware house is connected with

internet in all over the India.

> UML has become brand equity in this field, customer first
choice by UML.

> Its product is world class in quality; it is tested by several

authorities.

> The company acquired BRUNT SHAW LTD.A leading U.K wire
rope manufactures, to source logically advanced rope and access
the European market.

> UMI has very good infrastructure and work force.

> Healthy financial position

> Raw material available as it is produced by sister concern.

> UML has implemented TPM (Total productive management)
and ERP (Enterprise recourse planning) in 2000 - 01 with the
objective, raising quality and reducing cost.

WEAKNESS

> Machines and tools have become old and obsolete.

> UML has overlooked small customers.

> Highly bureaucrat

> Semi-automatic plant

> Inadequate expenditure of R&D

> Non effective advertising image

> High production cost

> Less enterprising company

> Demand of elevator ropes has increased due to global

infrastructure development.

Opportunity

> Fishing is developing in the southern costal cities.

> Mushrooming of apartment in India and abroad

> UMI can increase its profit if it gives more emphasis on direct
marketing with the customer.

> Now present condition RELIANCE has found crud oil reserve in
Krishana Godavari basin in south. New opportunities present for
the UMI to produce rope.

> UML can develop device for measuring breaking load

> (100 tones testing machine)

> Competitors are not much strong in the secondary market.

THREAT

> Low price of the rival's product are a great threat for the UML.
Government always changes its policy, which bring the great
threat the organization.
European country imposed an antidumping duty in the company
wire rope production.

> High cost production.

> Local political instability.

FINDINGS
 FINDINGS

PRODUCT RELATED

• UML products are well tested and inspected by the world

class testing authorities like
(ABS,LOYDS,IRS,ONGC,DGS,CMPIDL,MECON and GRIFT)

• UML's product (LCWR) has good demand in the market.

• Nearly all the major orders are placed with UML due to
product performance & record.

• As the entire product certified, customer has full

confidence in placing order with UML. UML cover the
services of the product time to time.

• Complete R&D for the product &insisting products are done

itself in the company. R&D centers, so that the UML can
upgrade the quality.

• OTIS, ABS, ISI and so many authorities who visit the

company time to time to audit the quality related aspects
of UML.

PRICE RELATED

• Overheads are quite high compared to the other

companies or rivals but it is solely due to its size & volume.

• From the customer point of view we felt that due to high

cost of UML products, it looses certain prospective
customer.

PLACE RELATED
• UML is located in the eastern region of the country which
has become the point of concern for its domestic customer
although it has five ware houses covering all zones, the
timely delivery is crucial.
• All the branches & dealers of UML in India are connected
with internet.

• All of the branches are situated in areas which have good

communication facilities, whether in roads, rails or water.

• Its own division situated in Jamshedpur & Bangalore

respectively supplies raw materials & heavy equipment &
machinery.

• From geographical point of view UML plant in Ranchi is well

positioned but there are certain problems like frequent
bands & strikes etc. & of course lack of good infrastructure
facilities.

PROMOTION RELATED

• UML promotional strategies such as participating in trade

fares are not enough to create awareness for the
customers.

• The after sale service of UML is well appreciated because it

aims at making relationship with customers.

• It generally sends its representative to its customers to

lesson the complications & complains.

• The frequency of the seminars and industrial interference

less so UML conducts meetings with its dealers &
distributors. Even we felt that the companies cum web
portals is not updated & upgraded time to time.

PACKAGING RELATED

• UML is at par with current packaging bends.

• UML uses new age labeling & tags for there products
making its products more attractive & reveal the world
class quality.

• The iron reds are used mostly these days. They are well
painted to give it a nice aesthetic look.

• Bar coded tags are used for the identification for the
different products.

Recommendations to maintain the

leadership position in both domestic and
international market:

A) ALL THE PRICING FACTOR;

Consumers want the price of UML products to be reasonable but

this factor has proved to be the main hindrance and had resulted
in getting low work order from the regional and national market.
The prices of the UML's steel wire and ropes is higher than those
of other manufacturer at the national level and due to this it's
major competitor "M/s Bombay Wire" in Mumbai has snatched a
big portion of the market share of UML at the regional level.
There are sizable proportions of dealers and customers who are
ready to compromise on quality in order to expand their profit
margin.
Prices of UML products have risen up to 30-40% within a span of
2 years than that of its competitor's price. Customers who can
compromise on quality are shifting towards other competitors
due to this reason.
Government organizations are also a major customer of UML
products but in case of Govt. organizations orders are initiated
on the tender basis. In regard to this sector also, UML received
setback in past because the tender having the minimum rate
quoting bags the work order. So the competitors of UML are
gaining a large portion of the cake here.
Even the dealers have also registered their complaint against the
high pricing of the products as they have to sell their products at
a very low profit margin in order to survive in this highly
competitive market. So UML must rethink about its product's
price.

B) THE QUALITY FACTOR:

The customers of UML expect a certain quality Standard which is
the USP of its products, they expect products with zero defects.
Though UML very strictly adheres to its quality commitments but
still there are certain flaws which accompany its products. At
times life span of the product also decreases due to stocking
with poor or inferior quality of packaging stenciling material and
so it does not lasts as long as it is expected to last.
The positive future is that quality related problems have to reach
on zero level to ensure the optimal performance of the product
and customer satisfaction.

C) THE PACKAGING:

When I was talking to a dealer of UML at Jamshedpur they have

some complains regarding the packaging of the product at UML.
There were complains regarding loose and often inappropriate
amount of lubrication.
Wooden reels used in packaging sometimes contain moisture,
which rusts the rope in due course of time.
Loose winding and coiling is also present in the poor packaging
system. UM1 should take smart packaging initiatives to save its
reputation and product quality.

D) DELIVERY DEADLINE:

Keeping the delivery deadline commitment is of outmost

important to maintain not only the goodwill of the company but
also to avoid the zooming costs cause due to such unnecessary
delay in delivery. It may also result in huge loss for UML.
There have been trends of late delivery of its products to the
customers in recent times as told by their dealers.

REASONS FOR THE LATE DELIVERY:

1. UML uses trucks and trailers for delivery of products which is

slow and often at the whims of the transporters.

2. Bad conditions of the road also delay deliveries.

3. As UML is located in the eastern part of the country so it

faces the major problem to cove the large customer base of
southern and western part of India.
4. In case of exports, the nearest port is Kolkata which is about
300 KM away so it also causes transportation delay.

5. Most of the time materials are supplied to the customers and

dealers through warehouses, so they demand it to be stocked
adequately with each category of products. But the store houses
are often not adequately stocked and so this result in delivery
delays. The dealers and the customers start orienting towards
the other manufacturers as they have to run their operation and
maintain their profit margin at any cost.

6. Often there is alack of communication between the works

and the sales department. Although sales is aware of the
capacity of the plant, there is a lack of coordination between
exports sale and domestic sale and each go about
independently working on whatever feedback they have
regarding the booking status.

7. Exports and domestic sales seldom sit and interact together

to settle the priorities. The plant is often in a dilemma regarding
simultaneous priorities in the same machine groups from both,
exports and domestic sales.

8. Often the plant is unable to produce within the lead time as

specified in the contract. In many cases, the production time is
twice the lead time. There by resulting in untimely delivery of
goods to the client.

E) THE COMPETITORS;

UML is facing a tough competition from its competitors:

Competition for UML has following three dimensions:

1. Competition from foreign companies in the high end for niche

markets like LCWR and CRANE ropes.

2. Competition from numerous small domestic competitors in

low end product market. Such as fishing and general engineering
ropes.

3. Competition from organized domestic as well as foreign

companies in mid end product market of elevator and mining
rope.
UML has suffered in all there categories of product but the
impact has been felt mostly in the low end products.
It is facing the toughest competition from the domestic
competitors, particularly small manufacturers who possess these
characteristics:-

1. Very small production capacity.

2. Have low overheads and so the total production cost is very

low.

3. Compromise with the quality to reduce with price.

Recommendation at this front is to make move to acquire small
manufacturers to prevent the market share erosion at both
domestic and international front.
 Recommendations regarding market
expansion:
UML should make its move to untouched areas such as
Northern America and Europe in product range like train rope,
wires and ropes needed in infrastructural and mines
development.
 BIBLIOGRAPHY

KOTLER.P : MARKETING MANAGEMENT

COMPANY JOURNALS : ANNUAL REPORT

: USHA NEWS

NEWSPAPER : ECONOMICS TIMES

TIMES OF INDIA

PRABHAT KHABAR (local daily)