Welspun gujarat

stahl Rohren Ltd

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INDIAN PIPELINE INDUSTRY
Among the top three manufacturing hubs after
Japan and Europe.
Penetration level of pipelines in oil & gas
transportation is low at 32% in India as
compared to 59% in USA and 79% globally
Highly Raw Material intensive with the RM
cost more than 70% of the total cost
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Low-cost quality products and various
certifications, Indian companies have augmented
their export sales over the last three to four years.
The global export market of the steel pipes is
stated to be close to $27 billion a year with the
US, Western Europe, Australia, and Japan being
the biggest importers. India is one of the major
exporting nations including Indonesia, Malaysia
and Thailand.

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Freight cost high due to higher imports and
exports.
The building & construction industries along
with the oil & gas sector are the major
marketplaces for pipe.
High oil and gas discoveries worldwide,
increased efforts by the Government of India
on infrastructure development.

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 Demand of Pipelines
(Next 5 year)

Demand is expected to be in excess of 3000 Km per Annum which would be more

or less in line with the total domestic capacity (Post expansion).
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Birth of a global pipe making
hub in Kutch
The Indian pipe majors Welspun Gujarat, Jindal
Saw, PSL, Man Industries and Ratnamani Metals
and Tubes set up their plants in the region to reach
a combined capacity of around 1 million tones per
year and likely to double it in near future.

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INTRODUTION TO WELSPUN

Strong culture of ‘Engineering Excellence’

Set to be positioned as the World's Largest
Pipe Company with an increase in capacity
from 1 million ton per annum to 1.75
million ton per annum by March 2009.

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 MISSION

“Timely communication to
Target stakeholders in a
Transparent fashion”
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 VISION

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Awards/Recognition

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 CUSTOMERS OF WGSRL
Global Customers Domestic Customers
Ø British petroleum Ø GSPL

Ø Chevron Ø GGCL

Ø TransCanada Ø Reliance

Ø Lone star Ø GAIAL

(Bangladesh) Etc. Ø IOC

Ø Jay Somnath Etc.
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MAJOR SUPPLIERS OF WGSRL

Most Important Raw Material = Coil

So major supplier for WGSRL are:-
ESSAR Steel
ISPAT Steel
POSCO

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COMPITITORS OF WGSRL
Jindal Steels
MAN Industries
PSL
Ratnamani Metals and Tubes ROD Etc.

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 WGSRL

Manufacturing Bending Coating

LSAW ERW Spiral/HSAW

S1 S2
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Production Flow Chart of

Spiral-3

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Flow Chart
of
COATING

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Concepts
of
POM
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Competitive priorities:
Ø Top quality
Ø Consistent quality
Ø On time delivery
Ø Customization
Ø Volume flexibility

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 Core competencies:
Ø Speed of production (150 pipes per day)
Ø Quality
Ø Employees (around 3000)
Ø Backward integration
(captive in-house power and raw material)

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Batch Process:
Ø Reasons for this:
§ More Variety
§ Moderate Volume
§ Average Quantity

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Make to order strategy:
ØCustomized Product
Moderate Complexity & less Divergence
High Capital Intensity
ØReasons for this:
•Fixed Automation
•Little Human Intervention
•Latest technology

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 LOCATION ADVANTAGES
Easy Availability labor at less cost
Tax benefits like excise duty exemption,
income & sales tax holiday for Kutch after the
earthquake in 2001.
Excellent logistics for import of steel, iron ore
and coal as well as export of pipes with all
season Kandla and Mundra port in the vicinity.
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 Availability of hassle free land at reasonable
prices.
Indigenous availability of raw material.
Nearer to supplier

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 Process Layout
Line-flow Layout & Fixed Position Layout:

ØLinear Path
ØFixed Manufacturing Site

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 Inventory Control System
Periodic Review System
ØReasons for this:
•No uncertainty in Demand
•No Constraint on lot size
Review Period = 30 Days
Order is received in 3 parts
2% additional for Safety against loss
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Cont….
Supply Chain Strategy: Efficient
ØReasons for this:
• Predictable demand & low forecasting
errors
• Competitive priorities are low cost,
consistent quality, on-time delivery
• Infrequent new product introduction

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Cont….

Mass Customization:
ØHighly Customized Product
ØLow Cost
üBenefits of Mass Customization:
ØManaging customer relationships
ØEliminate finished goods inventory
ØHigher perceived value of product
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Cont….
Backward Integration:

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Capacity Related Discussion
Current Capacity : 150 Pipes/day
No Capacity Cushions:
ØReason For this: 2 years Order
in hand
Expansion:
ØDomestic Expansion

ØGlobal Expansion: Plant in Little

Rock , Arkansas ,
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LEAN SYSTEM @ WGSRL
Pull method of Workflow
Quality at source
Small lot size(Maximum 50/lot)
Uniform Workstation load(150 pipes/day)
Standardized Components & Work Method

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Cont….
Backward Integration for Less Inventory Slack
Flexible Workforce
Automation

Continuous Improvement With

Lean System

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 Other concepts….
Very Less Bullwhip Effect
Centralized Inventory Placement
system
Bottleneck Management
ØPast Bottleneck – Production
Capacity
ØPresent Bottleneck – Imported
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 Quality Control
Certifications:

ØISO 9001 - By ØISI by Bureau of

APIQR Indian Standards

ØAPI 5L (Line Pipes) ØISO 14001 by LRQA

ØAPI 5CT (Casing) ØOHSAS 18001 by

LRQA
ØAPI 2B (Tubular)
ØSix Sigma certificate.
ØISO/TS 29001 Tolani Institute of Management 35
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 TQM @ WGSRL
Customer Satisfaction:
ØConformance to Specifications
ØValue
ØFitness for use
ØPsychological Impression
Employee Involvement
ØQuality at the Source
ØEmployee Empowerment
Continuous Improvement(Kaizen)
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 Quality Procedure
Handling of Coils by ‘C’ hook
From storage to mill the coils are lifted by 30 Ton
crane
Handling of pipe inside the plant:
ØRolling of the pipes on the level beds and
racks
ØRubberized surface to prevent scratch

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 Cont….
As per the specifications of the
customer testing are done at the
different places.
Finished goods are stocked in stand
for storage.

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