TECNIA INSTITUTE OF ADVANCED STUDIES

NAAC ACCREDITED GRADE “A” INSTITUTE

TIAS/AC/2018-19/26
Summer Training Report & Viva Voce(BBA 311)

Form No. TIAS/AC/2018-19/26(A)

SUMMER TRAINING REPORT & VIVA VOCE ON

TO STUDY THE GROWTH AND EXPANSION STRATEGIES

Undertaken at

“Goodluck private limited”

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted by
Ms. Neha Gupta Sonal Garg
Faculty Guide BBA-VSem,Morning
Enrollment No.:36217001716

Session: 2018-19
 TECNIA INSTITUTE OF ADVANCED STUDIES
NAAC ACCREDITED GRADE “A” INSTITUTE
TIAS/AC/2018-19/26
Summer Training Report & Viva Voce(BBA 311)

Form No. TIAS/AC/2018-19/26(B)

To Whom It May Concern

I SONAL GARG, Enrolment No. 36217001716from BBA-V Sem, Shift Morning of the
TECNIA INSTITUTE OF ADVANCED STUDIES, Delhi hereby declare that the
Summer Training Report & Viva Voce (BBA-311) entitled TO GROWTH AND
EXPANSION STRATEGIES at GOOLUCK PVT. LTD. is an original work and the
same has not been submitted to any other Institute for the award of any other degree. A
presentation of the Summer Training Report & Viva Voce was made on TO GROWTH
AND EXPANSION STRATEGIES and the suggestions as approved by the faculty were
duly incorporated.

Date: Signature of the Student

Certified that the Summer Training Report & Viva Voce submitted in partial fulfillment of Bachelor
of Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi by SONAL GARG,
Enrolment No. 36217001716, has been completed under my guidance and is Satisfactory.

Date:

Signature of the Guide

MS. NEHA GUPTA
ASST.PROFESSOR
 TECNIA INSTITUTE OF ADVANCED STUDIES
NAAC ACCREDITED GRADE “A” INSTITUTE
TIAS/AC/2018-19/26
Summer Training Report & Viva Voce(BBA 311)

Form No. TIAS/AC/2018-19/26(C)

ON COMPANY’S LETTER HEAD

CERTIFICATE

This is to certify that(Full Name of the Student), a student of Bachelor of Business Administration
(BBA), a class of 2018-19, Tecnia Institute of Advanced Studies, Affiliated to GGS.IP. University
bearing Enrolment No.……………………………………….………., has undertaken the Summer Internship
Training at ………………………………………………………………….. (Name of the Company) during
………………………..……… to ………………………………….… under my supervision & guidance.

He / She has conducted a study & completed the STR & V. V. Titled …………………………….
…………………………………………………………….
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………..

Signature of the Guide Seal of Organization

Name of the Guide: Date:
Designation:
Address:
 Chapter-1
Introduction
3.1 Introduction

3.1.1 Growth And Expansion Of Company

Most small companies have plans to grow their business and increase sales and profits.
However, there are certain methods companies must use for implementing a growth strategy.
The method a company uses to expand its business is largely contingent upon its financial
situation, the competition and even government regulation. Some common growth strategies
in business include market penetration, market expansion, product expansion, diversification
and acquisition.

Market Penetration

One growth strategy in business is market penetration. A small company uses a market
penetration strategy when it decides to market existing products within the same market it has
been using. The only way to grow using existing products and markets is to increase market
share, according to small business experts. Market share is the percent of unit and dollar sales
a company holds within a certain market vs. all other competitors. One way to increase
market share is by lowering prices. For example, in markets where there is little
differentiation among products, a lower price may help a company increase its share of the
market.

Market Expansion

A market expansion growth strategy, often called market development, entails selling current
products in a new market. There several reasons why a company may consider a market
expansion strategy. First, the competition may be such that there is no room for growth
within the current market. If a business does not find new markets for its products, it cannot
increase sales or profits. A small company may also use a market expansion strategy if it
finds new uses for its product. For example, a small soap distributor that sells to retail stores
may discover that factory workers also use its product.

Product Expansion

A small company may also expand its product line or add new features to increase its sales
and profits. When small companies employ a product expansion strategy, also known as
product development, they continue selling within the existing market. A product expansion
growth strategy often works well when technology starts to change. A small company may
also be forced to add new products as older ones become outmoded.
Diversification Strategies

Growth strategies in business also include diversification, where a small company will sell
new products to new markets. This type of strategy can be very risky. A small company will
need to plan carefully when using a diversification growth strategy. Marketing research is
essential because a company will need to determine if consumers in the new market will
potentially like the new products.

Acquisition Strategies

Growth strategies in business can also includes an acquisition. In acquisition, a company

purchases another company to expand its operations. A small company may use this type of
strategy to expand its product line and enter new markets. An acquisition growth strategy can
be risky, but not as risky as a diversification strategy. One reason is that the products and
market are already established. A company must know exactly what it wants to achieve when
using an acquisition strategy, mainly because of the significant investment required to
implement it.

Ram Agarwal, CEO, Good Luck Steel Tubes Limited, is a Qualified engineer and
completed his graduation in the year 1990. He has over two decades of experience in the
steel industry. He has handled a number of CR projects and structure projects
independently. Agarwal maintains an equivalent exposure in the field of sales and
marketing.
 
Good Luck Steel Tubes Limited, established in 1986,  is an ISO 9001:2008 certified
organization, engaged in manufacturing and exporting of a wide range of galvanized
sheets & coils, towers, hollow sections, CR coils CRCA and pipes & tubes. Leveraging on
advanced manufacturing facilities and engineering expertise, the company has been
successfully catering to the needs of clients from Public sector, Private sector OEMs and
Central & State Government Departments. The company has successfully garnered the
trust of most reputed global clients from across 100 countries.
 
Replying to Anil Mascarenhas of IIFL, Ram Agarwal says, “We have identified four key
sector namely Auto Tube, Railway, Power and energy and Infrastructure which will add to
our growth going forward.”
 
Good Luck Steel Tubes Limited is a diversified engineering company with over three
decades of experience in manufacturing of Auto Tubes, Engineering Structures, Forgings
and Cold Rolled value added products. We have started journey with the capacity of 12000
MTPA in 1987 to now processing above 2.24 lakhs MT with more than 2000 employee
strength.
 
We are highly diversified company and having around 27% export and 73% domestic
business of our total business.
 

The company made a strategic shift to move from regular low margins products to Value
added high margin products. In line with this strategy, we have also entered new sectors
such as Auto tube, Solar, Transmission and Distribution Towers. As a result, our revenue
contribution from value added products have increased to 53% in FY16 as compared to
39% in FY12. We are targeting to generate 75% of revenue from value added products by
FY18-19. To achieve this, we have identified four key sector namely Auto Tube, Railway,
Power and energy and Infrastructure, which will add to our growth going forward.
 
We are well-positioned to benefit from the strong focus on infrastructure development
under the current government.
 
The government intends to spend about $135 billion over the next five years to augment
railway infrastructure & improve safety standards for passengers. The vision includes
setting up of High Speed Corridors, Expansion of Optical Fibre Cable Network, New lines
& dedicated Freight Corridors. We have got the RDSO (Research Design & Standards
Organization) approval from the Railways and have been included in the approved list of
vendors... Hence, we expect strong order flows from the Railways.
 
On Solar, the Ministry of New and Renewable Energy (MNRE) has revised its target of
renewable energy capacity to 175 GW till 2022, comprising 100 GW from Solar. We are
already supplying to all the major solar EPC companies like Sterling & Wilson, Lanco
specifically for NTPC Project, Tata Solar, Acme etc. We expect the solar business to give
wings to our margin.
 
The FY16 budget has estimated a spending of Rs 1.25 lakh crore on the Transmission and
Distribution sector within the power industry. We hence expect to see a strong demand for
their transmission tower business coming in from established industrial houses &
government companies.
 
Apart from Infra, our country has seen tremendous growth in auto mobile industry. We are
supplying auto tubes and auto accessories to major auto and auto component companies.
We expect that Government support towards “Make in India” and Auto Mission Plan
2016-26will work in favour of Good Luck growth plan.
 

Goodluck is committed to deliver innovative, user friendly and better quality products at
the best value to customers. Keeping this in mind, we continuously update and modernise
our plant. During last two years, we have done substantial capex to set-up auto tube and
structure plant.
 
We make products for classes instead of masses. We are committed to create superior
value with focus to improve our bottom line vs. top line. During FY16, our EBITDA
margin has touched double digit at 10.2% over 7.8% in FY15. Apart from growth in
bottomline, the company is also focusing on deleveraging the balance sheet and are
making strategic changes to achieve the same. Our aim is to improve the margins and
increase the profit after tax and give maximum return to the shareholders.
 
The Indian Railways has brought huge opportunities for companies like yours. Give
us an idea of the growth plans here.
The company is very optimistic with the opportunities in the Railways Vertical with the
government’s intention to spend about $137.0 billion over the next five years to augment
railway infrastructure and improve safety standards for passengers. As per the Supreme
Court Judgement, all manned railway signals are to be converted to Railway overbridges
and cross-over /foot-over bridges to be built on all railway platforms to avoid any crossing
across naked railway tracks. The company with approval from the RDSO (Research
Designs &Standards Organisation) and RCF Kapurthala, is expected to get benefit.
 
At present, the company also is working with the Afcon Group (Shapoorji Pallonji) for a
project on Ganga bridge in Agra–Itawa highway.
 
We have already undertaken the requisite capex to maintain our growth momentum. We do
not have any capex plans in the near future. We want to first consolidate and then think of
further expansion.
 
We have a very strong relations with our clients and supply to leading auto majors like
Volkswagen, Audi, BMW, Mercedes Benz, Toyota, General Motors, Voestalpine, Renault,
Ashok Leyland, Mahindra, Tata Motors, TVS, Bajaj, Gabriel, Munjal Showa, ISGEC,
Talbros etc through their equipment manufactures.
 
The Indian power sector has an investment potential of Rs 15 trillion (US$ 237 billion) in
the next 4–5 years, thereby providing immense opportunities in power generation,
distribution, transmission, and equipment, according to Union Minister Mr Piyush Goyal.
The government’s immediate goal is to generate two trillion units (kilowatt hours) of
energy by 2019. This means doubling the current production capacity to provide 24x7
electricity for residential, industrial, commercial and agriculture use. This will provide
significant opportunity to Goodluck, which have a strong foothold in this sector. Good
Luck is already supplying Transmission Towers which are made up of quality galvanized
steel like High Voltage transmission Towers, Grid Towers and other Durable High
Performance towers to the companies like BHEL, NTPC etc. We are one of the largest
suppliers for Power transmission distribution structures for line segments up to 765 kv
class. The company’s workshops are quality certified by PGCIL and has supplied structure
for GIS for Power Grid Corporation for smart cities.
 
The World has turned to Solar power in this decade in a much more optimistic version
than earlier. Solar Power plants are now not just a roof top installation but are widely
being installed as alternate source of power by ground mounting structures. The company
is a provider of structural solutions to the Solar Power Sector. We have been supplying
solar to most of the solar EPC companies in India like Tata Solar, Hero Energy, Acme
Solar etc. The company is also planning to come up with up with the Tracker solution,
which will track the movement of the sun and the panel will move according to the
direction of the sun thus trying to extract maximum possible sunlight.
 
Defence sector is opening. Our business development along with our R&D people are
exploring opportunities where our product range can be used.
 
These tubes are called DOM (Drawn over Mandrel) tubes in USA or CDW (Cold Drawn
Welded) tubes specifically designed for automobile sector. Today comparing to yesterday,
vehicles are lighter to have more speed. CDW/DOM tubes are approx 20% lighter by
weight but giving similar strength as seamless was doing in auto. As per estimates, around
12 lakhs M.T. Auto Tube is required in US only and we being exporters, have huge scope
in auto tube segment.
 
Forging sector has been mainly catering to oil & gas and Power sector. In last 2 years, Oil
prices dipped and we saw the companies have postponed their CAPEX. Similarly in the
power sector, government has announced plan but again capex is minimal or postponed.
The products which we were making in the engineering that was in supply to hydro
powers, thermal powers so in that all four sectors CAPEX was postponed and new
requirements were not coming, only the routine requirements were there, maintenance
requirements were there. That is the reason whole two years, particularly last year has
been down. But now we have changed our portfolio we are going to increase our
engineering products which has a good demand. Furthermore, with the improvement in oil
prices and expected increase in Govt spending on power sector, we expect the forging
division to perform well. Moreover, the company has got approval from Kuwait Oil
Company enabling us to supply to upcoming project in these area.
 
Raw material prices to remain volatile. With Govt support, domestic prices are expected to
remain at higher then international prices.
 
A special emphasis on alloy material to be used in critical application is being developed
by R&D team. Since our business model is B2B where our maximum supply goes to end
customers hence any increase/decrease is passed on the customer. However, there may be
a time lag. But our focus remains on protecting our margin.
 
Since we are exporter, we can import without affecting MIP. We do book forward cover
for export and Import transaction and try to keep forex hedging at optimum level.
 
We export to almost 450 customers around the world. Our supplies are made to over 100
countries around the world.
 
We have different order book sizes for each division. In total, we are having order book of
4-5 months. There are two types of contracts usually – long term and short term. The short
term contracts are small quantity orders that take 1-1.5 months to execute and the long
term ones take anywhere from 6 months to 1-1.5 years like in our structure division where
we have an order book of 7-8 months.

We are committed to creating shareholder value and will take all the necessary strategic
steps for the same. We are well positioned to benefit from the GOI’s strong focus on
infrastructure development. We are working to be recognized internationally as best
procurement partner and model employee.

3.1.2 Objectives of study

1. To explore the function of the company.

2. To study the SWOT Anslysis.
3. To study the growth of the Goodluck company.
4. To study the expansion strategies of the company for future growth.

3.1.3 scope of the study

The review of literature presented in the preceding part of discussion testifies that many
studies have been conducted in the past on financial aspects, profitability and liquidity on
both public and private sectors but overall study on financial efficiency of steel industry and
future growth for the steel industry required strategy is not focused till date. A study on
financial performance or profitability and liquidity of the organizational study is also
conducted but no study seems to be conducted on financial efficiency of steel industry after
the downturn. In the present scenario where business world has become highly competitive,
and there is a slow recession in the world economy each and every sectors and sector growth
is highly depends on the performance of steel industry. The performance of steel industry is
 highly impacted on the performance of other industry like Automobile, Construction, Heavy
tools and equipment, Aviation, Power, and etc.,. Time has come when the revival of these
undertakings has become imperative and for making them competitive, Government need to
take some effective steps accepting the fact that the present time is the time of change
towards betterment.. The pace, scope and depth of changes taking place in the public sector
are said to require a fundamental retaining of the conceptual models or paradigms upon
which public base accuracy have been built in the past. More pragmatically, there is an
insistence need to examine the relevance, worth and effectiveness of all activities undertaken
by the government. In view of this, the present study intends to examine the financial
efficiency of selected units of Indian Steel Industry.

Good Luck Steel Tubes Ltd.(GLST) was established in 1986 and commenced production in
with an objective to provide quality material to the national and international market. The
journey from supplying black steel pipes to becoming one of the leading manufacturers of
Black and Galvanized Pipes & Tubes, Cold Rolled Steel & Galvanized Sheets / Coils has
been filled with accomplishments and accolades. The quality of our products and services are
widely recognized.

Goodluck Group is one of India's leading and fastest growing business group with over 500
employees and having multi location plants and units. With experience of more than two
decades in the industry Goodluck has diversified business interests in the national and
international market.

The company is working under various divisions

 Pipe Division
 Coal Division
 Galvanished Sheets – Coils
 International Division
 Engineering Division

The company is manufacturing and exporting wide range of steel tubes and pipes for various
purposes. Apart from the following standard range of products we also manufacture
customized products as per the requirement of the buyers.
Hindon Carrying Co. Corporation (P) Ltd. is the division of the Good Luck Group involved
in the supply of Indian & Imported Coal/Coke of all types.

The Galvanished Sheets –Coils unit is engaged in manufacturing standard range of

Galvanised Plain & Corrugated Sheets/ Coils for wide range of applications. Cold Rolled
Sheets/Coils produced by GLST are widely used in various applications.

International Division is engaged in export of wide range of engineering products,

construction hardwares, plants & machinery.
Engineering Division unit is engaged in manufacturing tools,scaffoldfittings,Bicycles,
components and accessories Automobile spare parts, Sanitary fittings, Kitchen fittings &
accessories ,Tube mills, Plants, Transmission tower etc.,

3.1.4 Company Profile

Good Luck, A 25 Year Old group promoted by IITians, a steel processor, converting basic
steel to quality engineering products. The products are being used world wide by end-
customers like automobile manufacturers, infrastructure, engineering industries, Oil & Gas
industries etc.Established in the year 1986, Goodluck India Limited is an ISO 9001:2008
certifiedorganization,engaged in manufacturing and exporting of a wide range of galvanized
sheets & coils, towers, hollow sections, CR coils and pipes &tubes.. We are monitoring
different stages of production which includes pre-production and post production. Seeing our
immense hard work, we are honoured with Certificate of Export Excellence and all Quality
System Certificate including ISO 9001. Our exemplary products and services have enabled us
to leap geographical bounds and register a strong presence in 100 countries across the globe.
We have extended our reach to the customers worldwide with a well knitnetwork..

We Good Luck Group is an ISO 9001 certified organization, engaged in manufacturing and
exporting a wide range of Cold Rolled Steel, Hot Dip Galvanized Steel (HDGI), Towers,
Tubes & Pipes, forgings and flanges. We are one of India's leading and fastest growing
business groups with over 1000 employees and having plants and units at different locations. 

We have our manufacturing unit located at Bulandshahar District of Uttar Pradesh, (India).
With the help of our advanced production unit, we are able to fabricate products in bulk
 quantity. Our products are carefully tested on thickness, O.D, zinc coating and length as per
the IS & P2S standards to guarantee 100% quality. Moreover, all our processes are also
inspected by distinguished agencies such as DGS & D, RITES, BHEL and SGS, which helps
in maintaining total quality in our product range. 

Under the able guidance of our mentor Mr. M.C. Garg, we are successfully meeting the
growing demands of our clients. We have earned the trust of our clients based in different
parts of the country such as NTPC, National Fertilizers Limited, BHEL and EIL.

Corporate Social Responsibility has always been an integral part of the Good Luck
Engineering Co. We define social offering as quality products to our client's. 

At Good Luck, corporate social responsibility is not just a duty, its the way of working, hence
we believe in the following:

 We promise equal opportunity to every employee, and not discriminate among them
on the basis of their religion, gender, race, color or language

 We shall commit what we can deliver and deliver what we have committed

 We shall not, through any action or communication, change customer expectations

from existing and agreed contract

 We shall not use any customer-specific information we have gained in the course of
our business, to our customer's detriment or to unduly influence business outcomes

Product range of the company includes:

 ERW Black and Galvanized Pipes & Tubes 
 Cold Rolled Steel 
 Galvanized Sheets–Coils 
 Hollow Sections 
Achievements/ recognition:
 The ISO 9001 Certificate awarded by the Det Norske Veritas (DNV)
 BIS Certificate Marks license, awarded by the Bureau of Indian Standards
 Equivalent BS/ASTM/DIN/JIS Standards
3.1.5 Industry Profile

ABOUT GOODLUCK INDIA LIMITED

Established in the year 1986, Goodluck India Limited is an ISO 9001:2008

certified organization, engaged in manufacturing and exporting of a wide
range of galvanized sheets & coils, towers, hollow sections, CR coils CRCA
and pipes & tubes. We also specialize in providing Telecommunication Structures, ERW
Steel Tubes, ERW Steel Pipes, and Galvanized Black Steel Tubes. These are acclaimed for
high tensile strength, long service life and higher efficiency. 

Leveraging on advanced manufacturing facilities and engineering expertise, we have been

successfully catering to the needs of clients from Public sector, Private sector OEMs and
Central & State Government Departments. Our team of scrupulous quality control
professionals strictly monitor every stage of production to ensure International standards of
quality. In addition, we also offer third party inspections from reputed agencies such as DGS
& D, RITES, BHEL and SGS before the products are dispatched at the client\92s end. 

We have grown leaps and bounds under the aegis of our mentor Mr. M. C. Garg. His rich
industry experience and entrepreneurial zeal have enabled us to surge ahead in the
competitive market. Today, we have successfully garnered the trust of most reputed global
clients from across 100 countries of the globe. 

INFRASTRUCTURE

PLANTS & MACHINERIES

Our plant is spread over ----acres of land at Sikandarabad industrial area just 45km from
Delhi. 
Our plant has state of the art tube mills , galvanizing units , cold rolling mills galvanized coil
unit and corrugation machines. Also pipe and lattice type structures are fabricated and
galvanized. 
FUTURE OUTLOOK

Our client centric approach and emphasis on quality products & services enable us to
understand the market scenario. Further, it is combined with highly competent management
to guide the organization to become the leading business house in the country. The
organization would continue looking forward to expansion and continuous growth.

Good Luck Industries, a unit of Goodluck India Limited , is an ISO 9001: 2008 certified
manufacturer and exporter of a precision engineered range of Cold Drawn Welded Tubes &
Precision Tubes. These tubes are known for temperature resistance, high tensile strength,
durability, dimensional accuracy and excellent finish. Our products are extensively used in
automobile, oil, furniture, construction, electrical and various other industries. These are
manufactured as per national as well as international quality standards. 

Owing to our advanced manufacturing facility, we are able to meet the urgent requirements
of our clients. Moreover, we check the quality of the raw material on well defined parameters
like chemical composition, mechanical properties and gauge variation. With the help of our
team of professionals, we are able to meet the variegated requirements of our global clients.

QUALITY

Being an ISO certified company, we strive to provide quality products at economical price to
our clients. Our quality management has helped us in receiving ISO certification. We follow
stringent quality norms beginning with inspection of raw material for chemical composition,
mechanical properties, gauge variation and others. Our team of quality controllers checks the
raw material before it is fed into the tube mills. Moreover, the production process is severely
monitored as per the international quality standards. 
Furthermore, we possess R&D unit, which assists us in undertaking metallurgical tests on our
range of Cold Drawn Welded Tubes & Precision Tubes. 

OUR R&D UNIT IS EQUIPPED WITH FOLLOWING MACHINES AND

EQUIPMENT:

 Leco carbon apparatus

 Scanning electron microscope

 Atomic absorption emission spectrophotometer

 Universal microscope

 Micro hardness tester

This has helped us in upgrading our quality process, which further helps us in retaining the
trust of our clients.

MANUFACTURING PROCESS

For the effective and bulk production of Galvanized & Steel Pipes & Tubes, we have
developed a sophisticated manufacturing unit. Equipped with high-end machines and
equipment, we are able to provide our clients with a superior and defect free range of pipes
and tubes. The manufacturing process of Galvanized & Steel Pipes & Tubes is mentioned
below:

 Depending on end applications, Hot-rolled or cold-rolled close annealed strips are

used to manufacture tubes

 Manufacturing starts in a separate preparatory section where the initial raw materials
are slit into required tube widths

 These are processed through the modern, strip-pickling plant to remove all surface
defects before feeding into the tube mills

 Bright finish tubes, high tensile strength tubes, sectional tubes and others are precision
engineered in the mills with its own design specialties

The tubes are welded in the tube mill by high frequency solid state welding process,
which is as follows:
 Induction coil encircles the strip formed into a tubular section by its progressive
movement through sets of specially designed rolls

 The butted ends of the tube are welded without any filler by electric resistance
welding

 This results in a close and tight weld-joint, free from inclusions and other defects,
maintaining the parent material integrity

 The final rolls towards the end of the tube mill ensure straightening and sizing of
tubes

 The sectional tube of rectangular or square sections may be achieved through

specially designed, contoured rolls

 Cold saw installed at the tube mill cuts the tube with close tolerance giving burr free
& dimple free tube ends

 The ERW precision tubes are collected in the turn-table

These tubes have to undergo additional processes like annealing, pressure testing, eddy
current testing, straightening or further cutting. This designs the tubes as per their
applicationspecific requirement specified by our clients.

MANUFACTURING PROCESS
Each product is manufactured employing best manufacturing process.

APPLICATION AREAS

 Cycle Industry, Cycle frame, forks, hub tubes

 Chain Automotive, Industrial and Cycle chains
 Automotive Industry Two/Three Wheelers Car, LCVs and HCVs, Chasis Tube Bus
Body Building Main Beam Tube Automobile Axle Tube Shock Absorbers Propeller Shafts
Steering Columns Tie Rod and Drag Links Exhaust Tubes, Aluminised Tubes Front Fork
Tubes for Two Wheelers Hydraulic Line Tubing
 Boilers and Heat Exchanges Chemical Industry, Sugar Industry Paper Industry,
Process Industry
 Oil Industry Line Pipes to API specification
 Furniture Industry Construction Industry Machinery Manufacture Air pollution
control Equipment Railway Coaches Electrical Industry Transformers, Fan Down Rods
Conduits

ABOUT GOOD LUCK ENGINEERING CO.

Good Luck Engineering Co. a unit of Goodluck India Limited is one of the leading
manufacturer of open and open die steel forgings. An ISO 9001:2008 company, we are a
government recognized export house having silver seal status and also holding the
membership of FIEO, FII and have also received many export excellence awards.

CLIENTELE
We are a renowned name as the exporter of quality steel forgings across the globe. We have
our clientele spread over 90 countries that include UK, Singapore, South Africa, Oman, UAE,
Australia, New Zealand, East & West Africa, Latin America, Trinidad, Ghana, Haiti,
Ethiopia, Sri Lanka and Madagascar. We also offer our range of products to domestic clients
include reputed names from Public and Private sector like OEMs and Central & State
government Department
WHY US
Over the years, we have supplied quality products to numerous clients across the globe. With
our quality products, we have become the preferred choice for our existing as well as new
clients. 

SOME REASONS WHY WE ARE THE MARKET LEADERS ARE:

 Years of experience
  Quality raw material

 Customized Products

 Customized packing

FACTORY TOUR

PROCESSING

WHAT IS THE FORGING PROCESS?

Forging is a process that results in a variety of changes within the properties of the metal. A
forging can be produced by several methods, all of them require shaping the metal by plastic
deformation. The most common used forging process is impression die or precision forging.
There is great variation the temperature and processes required in different methods of
forgings. A product can be forged by three different methods, namely cold, warm and die
forging depending on its requirements. 

A forging process, which requires drawing out the metal results in increased length and a
decrease in the cross-section where as upsetting the metal results in the opposite. Squeezing
of metal in closed impression dies bring change in length, cross-section, and in overall
favorable grain flow. 

HOW DOES FORGING DIFFER FROM CASTING?

The major difference between forging and casting is that forging can be done to cold, warm
and hot metal depending on the requirement of the final product. However the metal is never
completely melted and poured into a die where as casting involves pouring of molten metal
OPEN DIE FORGING
The Open Die Forging is done with hammers and presses of metals like stainless steel, carbon
steel and alloy steel. It is a modern-day extension of the pre-industrial metalsmith working
with a hammer at his anvil. In this process the metal to be forged is not completely confined
as it is being shaped by the dies. The open die process is generally used for large parts like
shafts, sleeves, disks etc.

MOST OF THESE FORGINGS ARE PRODUCED ON FLAT DIES. ROUND SWAGING

DIES AND V DIES ALSO ARE USED IN PAIRS OR WITH A FLAT DIE. OPERATIONS
PERFORMED ON OPEN DIE PRESSES INCLUDE: 

Drawing out or reducing the cross-section of an ingot or billet to lengthen it. Upsetting or
reducing the length of an ingot or billet to a larger diameter. Upsetting, drawing out, and
piercing--processes sometimes combined with forging over a mandrel for forging rough-
contoured rings. 
In the open die forging as the metal piece required to be forged is hammered or pressed, it is
repeatedly manipulated between the dies till final forged dimensions are reached. The forged
part is rough when machined is followed by finishing machine to final dimensions. The
increase use of press and hammer control makes open die forging a more automated process. 
In this type of forging, metals are worked above their recrystallization temperatures. As the
process requires repeated changes in metal piece positioning, it cools during open die forging
below its hot-working or recrystallization temperature and hence is reheated before forging
can continue. 

We follow a thumb rule in open die forging of steel, that 50 lb of falling weight is required
for each square inch of stock cross-section. 

Compression between flat dies, or upsetting, is an open die forging process in which an
oblong metal piece is placed on end of a lower die and its height is reduced by the downward
movement of the top die. Friction between end faces of the metal piece and dies prevents the
free lateral spread of the metal, which results in a typical barrel shape. The then contact with
the cool die surface chills the end faces and hence increases its resistance to deformation and
enhanced barreling. 
Upsetting between parallel flat dies are restrained to deforming symmetrical around a vertical
axis. In case preferential elongation is desired, compression between narrow dies is ideal.
Frictional forces in the axial direction of the bar are smaller than in the perpendicular
direction, and material flow is mostly axial. 

A narrower die elongates better, but if too narrow, the die will cut the metal instead of
elongating. The direction of material flow can also be regulated by use of dies with specially
shaped surfaces. 

Compression between narrow dies are not a continuous process since many strokes must be
executed while the metal piece is moved in an axial direction. Roll forging can be used to
make this task continuous. 
Roll in large size cause greater lateral spread and less elongation as there is greater frictional
difference in the arc of contact when compared to smaller rolls which elongate more.

PROCESSING FLOW CHART

We use Open Die Forging process, for manufacturing products like forged flanges, forged
rings etc., in metals like stainless steel, carbon steel and alloy steel. Following is the process
of forging: 

INGOT OR BLOOM
In Ingot or bloom process hot working in a continuous-cast bloom or a steel ingot is done on
the metal to be forged. The process comprising the steps of three steps; in the first step
cooling the bloom followed by quenching the bloom and the last step involves heating the
bloom or the steel ingot in a furnace which is followed by hot shaping. 
BAND SAW
A band saw involves complex coordination between tilting motion and a translational motion
of the metal piece and the band saw blade, so that a curved cut is made in the metal piece 

CUT PIECES
We have the right equipment, to cut pieces in the required dimensions. The machines are well
maintained to offer best products to the clients. 

PRE- HEATING FURNACE

A preheating furnace is used for metal in shapes like bars, billets, and the likes of metal. It
has a furnace tunnel formed by furnace shells for preheating the metal. Their central range of
the furnace shells are covered by a heat insulation which comprises removable designed
insulation members. 

FORGING
In this step forging is done via forging machines which is disclosed for reducing the cross
sectional area of the metal piece, laced on the forging axis of the forging machines 

ULTRA SONIC NORMALIZING

This method is used for determining and evaluating physical characteristics of a material. In
this method complex ultrasonic waves are created in the metal. The waves formed may be of
any combination of the wave types and modes and they are not limited to fundamental plate
modes. 

MACHINE SHOP
We have the required machines to conduct the process of forgings with precision and
accuracy. We have latest technology and machines that give accurate forgings. Our staff is
well trained, to use the machines and maintain them as well. 

HEAT TREATMENT PROCESS

In the heat treatment process Quenching and Tempering for Metal Forging, Annealing Steel
and Metal Forgings is conducted. These process are conducted to maintain the balance of
ductility and strength of the metal. The description of these processes is as follows: 
QUENCHING AND TEMPERING FOR METAL FORGING 
Metal Forgings that have been quenched and tempered, posses a good balance of strength and
ductility. The steel forgings are constantly cooled in water, oil, or saltwater bath, which
increases their hardness. To restore softness within the metal forgings, the forgings are then
tempered to prevent snapping or shattering. 

ANNEALING STEEL AND METAL FORGINGS 

Annealed of the forgings is done to recover the ductility and yield strength, which were lost
during the hot forging process such as closed die forging or hand forging. Forgings that have
to be annealed are first softened to relive internal stress, than recrystallized to grow new,
more refined grains. 

MARKING AND PARKING

In the last step, we mark the forged metal piece according to their grades and other
specifications to m maintain traceability and then the final product is then parked for
packaging and delivery.
products are manufactured using superior quality raw material and we ensure precision in
design and accuracy in dimensions.

Leaving no space for loopholes, our products pass through various control systems, material
control systems, process control system, machining, dimensional control systems,
certification and supplementary tests and finishing tests. We begin quality testing at raw
material stage where the raw material is inspected for its chemical composition and surface
defects. We also check our raw material for inclusion rating, which plays an important role to
ascertain the quality of the end product. We select the size of the raw material such that the
required reduction ratio between the raw material and the final product is maintained. 

We have comprehensive mechanical testing facilities that include impact and tensile testing
which help us achieve the desired quality products. Latest technology such as ultrasonic
testing and highly sensitive specialized dye penetrant and magnetic particle technique is used
to ensure superior quality products. To maintain the quality standards, we have adequate
resources like trained personnel to perform strict quality checks on equipment, material,
manufacturing process etc. Quality being the backbone of our company, we conduct strict
quality checks on each and every step and assure our clients impeccable products.

ABOUT GOOD LUCK INDUSTRIES

Good Luck Industries, a unit of Goodluck India Limited , is an ISO 9001: 2008 certified
manufacturer and exporter of a precision engineered range of Cold Drawn Welded Tubes &
Precision Tubes. These tubes are known for temperature resistance, high tensile strength,
durability, dimensional accuracy and excellent finish. Our products are extensively used in
automobile, oil, furniture, construction, electrical and various other industries. These are
manufactured as per national as well as international quality standards. 

Owing to our advanced manufacturing facility, we are able to meet the urgent requirements
of our clients. Moreover, we check the quality of the raw material on well defined parameters
like chemical composition, mechanical properties and gauge variation. With the help of our
team of professionals, we are able to meet the variegated requirements of our global clients.

MANUFACTURING FACILITIES

PLANT FEASIBILITY
QUALITY & TECHNOLOGY

Being an ISO 9001:2008 organization, we assure total quality in our entire product range. We
have proper inspection & testing facility that help us in checking from the stage of
procurement of raw material to manufacturing of finished products. With the assistance of
our quality controllers, We begin our quality checking in our well equipped laboratory, we
test pipes and tubes on following parameters

 Thickness

 O.D

 Zinc coating

 Length as per IS & P2S standards

Moreover, we also provide third party inspection facility for ensuring that our product range
comply with industry standards. The inspection is carried out by various agencies like DGS
& D, RITES, BHEL, SGS, Bureau Veritas, Lloyds, QSS, Crown, TUV and others. 

Our organization is awarded ISO 9001 certificate by DET NORSKE VERITAS (DNV),
which assures our clients of the quality product. Moreover, our Sikandrabad plant is also
certified for the quality and is valid for manufacturing & supply ERW steel tubes (black and
galvanized), CR strips & Galvanized Sheets/Coils. This accreditation has helped us in
maintaining our market credibility by offering optimum quality products. 

Furthermore, we are also awarded by the Bureau of Indian Standards the BIS Certificate
Marks license. This certification allows us to manufacture various Steel Pipes like:

 Indian Standards and Equivalent International Standards i.e. BIS, DIN-EN, ASTM,
JIS etc.

In addition, our product range is also complied with BS/ASTM/DIN/JIS standards. This has
helped us in establishing a remarkable position amidst our competitors. 

Good Luck" has the latest Technology, Plant & Machinery, and Testing Equipments blended
with vigilant Quality Assurance Department, which ensures the Best quality Product.
  Hardness Tester

 Vicker Hardness

 Rockwell Hardness

 Surface Roughness Measurement

 Straightness Ckecking at Granite Surface Plans

OUR CLIENTS

With our client centric approach and ethical business practices, we have served numerous
organizations across the globe. Our domain expertise in the respective field enables us to
manufacture our range as per set industry standards. Being an ISO certified organization, we
also ensure products are tested on well-defined quality parameters before the delivery of
consignments. All this has helped us to make a number of clients worldwide. 
Chapter-2
Literature
review

3.2 Review of Literature

Goodluck Steel Tubes Ltd (GSTL) is well poised to benefit from the rising government
spending in key areas like infrastructure, railways and solar verticals. The shift to value added
products should improve business profitability while enhanced utilization should bolster
revenue growth. The RDSO approval is a shot in the arm and should enable GSTL to get a
toe hold in the Indian Railways, which is in an overdrive mode, given its ambitious capex
outlay of 8.5 lac crore over the next 5 years. We initiate coverage on Goodluck Steel Tubes
Ltd as a BUY with a price objective of Rs 175 representing a potential upside of 75% from
the CMP of Rs 100 over a period of 15 months. We have used the PE multiple approach and
assigned a multiple of 5X on FY18 EPS of Rs 35 to arrive at the target price. We are upbeat
on the prospects of Goodluck given that: The company has strategically shifted its focus
towards the highmargin auto and forging businesses. The share of the value added high
margin business has improved substantially from 39% in FY11 to 48% in FY15. This is
expected to improve further to 56% by FY18. In the long term, management expects it to
improve to 75:25. The RDSO approval is the gateway to the Railways business. We
conservatively estimate Rs 65 crore revenues from the railways by FY18. GSTL is bullish on
the prospects of the solar vertical business considering the Modi Government’s impetus to the
sector. It has undertaken a capex of Rs 30 cr towards capacity expansion. In the period FY11
to FY15 the revenues have grown at a CAGR of 17.7% from Rs 561 crore to Rs1,076 crore.
We expect the growth clip to continue with revenues clocking a CAGR of 9.7% from Rs
1,076 crore in FY15 to Rs 1,419 cr by FY18. The EBITDA is expected to grow at a faster
clip of 27.6% CAGR to Rs 123 crore in FY18 fromRs 59 crore in FY15. Margins are
expected to expand 450 bps to 9% by FY18. Earnings are expected to grow at a CAGR of
40% to Rs 77 crore by FY18 from Rs 28 crore in FY15.

Good Luck Steel Tubes Limited (GSTL) is engaged in the manufacturing of automobile
tubes, forgings and other engineering products. GSTL has also diversified itself into value
addedengineering services in solar energy, defence, railways etc which are expected to be the
growth triggers going forth.

Key Investment Highlights Prospects from value added products During the period FY11 to
FY15 total income grew at a CAGR of 17.7% from Rs 561 crore in FY 11 to Rs 1,076 crore
in FY15 on the back of capacity expansions and higher exports of its automobile tubes and
industrial forgings (which are expected to be the growth triggers going forth). A sharp spike
in export sales in FY13 aided the company boost the revenue base. Currently export
contribute ~40% of the overall sales. While FY14 was a sluggish year (2% growth in
revenues) due to fierce competition and weak markets, FY15 saw growth pick up (10% YoY
growth) as the new capacity of 30,000 mtpa in the auto tubes division was commissioned.

Going forward we expect the growth clip to continue with revenues clocking a CAGR of
9.7% from Rs 1,076 crore in FY15 to Rs 1,419 cr by FY18. The EBITDA is expected to grow
at a faster clip of 27.6% CAGR to Rs 123 crore in FY18 from Rs 59 crore in FY15. Earnings
are expected to grow at a CAGR of 40% to Rs 77 crore by FY18 from Rs 28 crore in FY15.

This strong performance is expected on the back of: Enhanced contribution from value
added products Enhanced capacity utilization and preponement of the expansion of the
Gujarat facility to cater to the projected demand RDSO approval- gateway to revenues from
the Indian Railways Improved prospects for solar business Defence foray  Enhanced
contribution from value added products The company has strategically shifted its focus
towards high-margin auto and forging businesses. The share of the value added high margin
business has improved substantially from 39% in FY11 to 48% in FY15.

Good Luck is focused on manufacturing highly customized forgings for its clients according
to the specifications required and due to this it is receiving repeat orders from its marquee
clients. Given the strong client base, a revival in the auto sector and the government’s thrust
on infra spend, we expect the company to witness substantial improvement in its product mix.
During Q3FY2015, it commissioned a new auto tube plant, which has already started
yielding revenues. Currently, it is planning to diversify its forging business to cater to defence
(gun barrels), aerospace and oil & gas industries.

 Enhanced capacity utilization and preponement of the expansion of the Gujarat facility to
cater to the projected demand

During the period FY12-FY14 a surge in the export business lead to the peaking of capacity
utilization at 96%. To cater to the rise in demand, the company has undertaken a capex of Rs
96 crores in FY15. It plans an additional capex of ~Rs 30 crores in its existing plants, with a
focus on value added products. In addition it is also planning a greenfield capex at Bhuj in
Gujarat worth ~Rs 260 crores. This will be done in three phases; capex for the first phase is
~Rs 100 crores. The Bhuj facility will partly be for undertaking orders in the solar & railway
vertical and for this it is scouting for strategic partners. Given that 40% of its products are
exports, having a plant at Bhuj gives the company access to ports and would help it to reduce
logistic costs. The management is confident of achieving annual sales of Rs ~260 crores after
completing the first phase of the Gujarat facility.

 RDSO approval- gateway to revenues from the Indian Railways.

In Dec 2015, the company received an approval from RDSO (Research Design & Standards
Organization), Ministry of Railways, for fabrication and supply of Steel Bridge Griders.
Indian Railways is in a big ticket expansion mode with planned Dedicated Freight Corridors
(DFC’s) of approx 6200 kms and an upgrade to feeder routes to DFC’s of approx 6000 kms.
Further, the Railways is strategically planning to convert major railway crossings to Railways
Over Bridges (ROB’s) which would entail approx 3mn metric tonnes capacity of fabricated
bridge. This provides GSTL with scope for new revenue streams. Obtaining an RDSO
approval itself is a meaningful achievement as the entire process takes a minimum of 2-2.5
years (with no guarantee of success) to generate revenues. This in itself is an entry barrier.
And with the railways in an overdrive mode on capital spending (Rs8.5 lac crore capex target
for five years), this represents a gateway to revenue growth. The management, expects on a
conservative basis, Rs 50-65 crore of revenue by FY18.

 Improved prospects for Solar business

With solar power being the top priority of the Modi Government (100 GW by 2020), GSTL
is bullish on the prospects of this vertical. It has undertaken a capex of Rs 30 cr towards
capacity utilization. Good Luck’s solar vertical provides structure solutions for solar water
pumps, solar parks, roof top solar projects and on grid & off grid power projects.

With repeat orders from marquee clients like the Tata group, NTPC etc we expect revenues
from the solar business for FY16 to be around Rs 15 crore which would grow to Rs 35 crore
in FY17 and Rs 75 crore by FY18. The solar business is expected to have an EBITDA margin
of 15%. High EBITDA margin in the solar vertical would further contribute to improving the
overall margins of the company.  Defence foray GSTL is in talks with global defence
companies for the approval of manufacturing of parts used in guns. This in our opinion would
be a shot in the arm to fuel GSTL’s foray into the defence sector. However we have not
considered any revenues from this in our earnings model.
EBITDA margins expected to improve substantially The EBITDA has grown at a CAGR of
19.9% over FY11 to FY15 from Rs 29 crore in FY 11 to Rs 59 crore in FY15 due to strong
growth in revenues and an improving product mix in favour of value added products (which
have higher EBITDA margins). The company is systematically shifting its focus from its
traditional business of pipes to more value added products like forgings, welded tubes & solar
structures. The management has guided to enhance the share of valued added products to
75% of the overall revenues by FY20.

As a result we expect operating profits (EBITDA) to grow at a CAGR of 27.6% from Rs 59

crore in FY15 to Rs 123 crore in FY18. EBITDA margins (ranged from 4.5% to 5.5%) are
also expected to expand by 450bps to 9% by FY18.

 Financial Performance

The company reported a marginal decline in its revenue numbers during Q2 FY16. Net sales
declined by 9% YoY to Rs 246 crore due to a fall in the raw material prices which was
partially passed on to the customers. However the EBITDA surged by 40% YoY to Rs 29
crore, led by a faster decrease in raw material costs. The operating margin also expanded by
410 bps YoY to 11.8% from 7.7%. PAT increased by 67% YoY to Rs 11 crore. In FY15,
GSTL’s net sales stood at Rs 1,076 crores, registering a growth of 10.3% YoY. Its EBITDA
surged by 33% YoY to Rs 59.2 crore, while margins expanded by 100 bps YoY to 5.5%.
PAT grew by 57% YoY to Rs 28 crore.
 Financial Outlook:

With capacity expansion across segments and an improving product mix, the growth
trajectory in revenues should continue. GSTL has a diversified product range and marquee
client portfolio fetching repeat business. We expect GSTL’s revenues to grow at a CAGR of
9.7% to Rs 1,419 crore by FY18 while net consolidated earnings are expected to grow at a
CAGR of 40% to Rs 77 crore over the same period. The EBITDA margins (ex OI) and PAT
margins are expected to be at 9% and 5.4% respectively.
 Valuation

We initiate coverage on Goodluck Steel Tubes Ltd as a BUY with a price objective of Rs 175
representing a potential upside of 75% from the CMP of Rs 100 over a period of 15 months.
We have used the PE multiple approach to value GSTL and assigned a multiple of 5x on
FY18 EPS of Rs 35 to arrive at the target price. We are upbeat on the company prospects due
to: Shift to value added products to improve profitability, Enhanced utilization and
preponement of the Bhuj greenfield expansion to bolster revenue growth and Improving
return ratios.
 Chapter-3
Research
Methodology

3.3 Research Methodology

A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the research problem research. The design of a study
defines the study type (descriptive, correlation, semi-experimental, experimental, review,
meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research
problem, hypotheses, independent and dependent variables, experimental design, and, if
applicable, data collection methods and a statistical analysis plan. A research design is a
framework that has been created to find answers to research questions.

Types of research

There are many ways to classify research designs, but sometimes the distinction is artificial
and other times different designs are combined. Nonetheless, the list below offers a number
of useful distinctions between possible research designs. A research design is an arrangement
of conditions or collections.

 Descriptive
 Correlational
 Semi-experimental
 Experimental
 Review

 Meta-analytic

Sometimes a distinction is made between "fixed" and "flexible" designs. In some cases, these
types coincide with quantitative and qualitative research designs respectively,[2] though this
need not be the case. In fixed designs, the design of the study is fixed before the main stage of
data collection takes place. Fixed designs are normally theory-driven; otherwise, it is impossible
to know in advance which variables need to be controlled and measured. Often, these variables
are measured quantitatively. Flexible designs allow for more freedom during the data collection
process. One reason for using a flexible research design can be that the variable of interest is not
quantitatively measurable, such as culture. In other cases, the theory might not be available
before one starts the research.

Grouping

The choice of how to group participants depends on the research hypothesis and on how the
participants are sampled. In a typical experimental study, there will be at least one
"experimental" condition (e.g., "treatment") and one "control" condition ("no treatment"), but
the appropriate method of grouping may depend on factors such as the duration of
measurement phase and participant characteristics:
 Cohort study
 Cross-sectional study
 Cross-sequential study
 Longitudinal study

ss
Research is basically a term used for a systematic search for getting relevant answers on any
taken up topic. Methodology may be understood as all those methods and techniques that are
used for conducting a particular research. It may include the methods of data collection,
statistical tools for analyzing the data etc. In my research both the primary and secondary data
has been used in order to reach to a conclusion.

Research design: The research in this study is descriptive and analytical in nature.

Primary data: The primary data is collected through a survey through a structured
questionnaire and direct interview method.

Secondary data: The secondary data is being collected from different sources. The main
source of secondary data was the annual reports of the selected banks. This study is based on
last 10 years bank data i.e. 2005 to 2015.

Other sources of secondary data are websites, journals, and magazines etc. Previous research
papers have also provided a good collection of data.

Sample size: For my study I have taken a sample size of 500 customers of different banks
using plastic money.

ECONOMY OVERVIEW & OUTLOOK World Economy 2016-17 was a year when the
global economy continued to grow at a disappointing pace, with growth held back by an
anemic performance in advanced economies. The year has been defined by political shocks in
advanced economies – firstly, the decision by the UK electorate in June to leave the EU,
followed by the election of Donald Trump to the US presidency in November. Both events
will continue to have ramifications well beyond their borders in 2017-18 and beyond. In
2016-17, consumer continued to spend cautiously with expenditure increasing by just 2.4% in
real terms over 2015-16 – well below the corresponding increase in disposable income – with
consumers in Asia Pacific increasing their spending at the strongest rate. Spending in Latin
American actually declined over 2015- 16, dragged down by Brazil’s dismal economic
performance and weak commodity prices. Global growth is predicted to rise modestly from
3% in 2016 to just over 3½ per cent by 2018. The mood in the global economy has
brightened during the last quarter of last year, with confidence indicators and industrial
production increasing, and investment and trade picking up from low levels. Growth is broad-
based, including among major commodity producers. Global GDP growth is projected to rise
to a little over 3½ per cent by 2018, helped by improving policy-supported outcomes in some
emerging market economies, particularly in Asia, and the assumption of a moderately-
supportive fiscal stance in a number of advanced economies, especially the United States in
2018. GDP growth in Japan is set to strengthen to 1.4% this year, supported by stronger
export growth, especially in Asian markets, and a modest fiscal easing. In China, near-term
demand is being supported by strong infrastructure and housing investment driven by
expansionary fiscal policy, including via support for public investment from policy banks,
and buoyant credit growth. As efforts intensify to manage financial risks and encourage the
necessary transition towards consumption and service sectors, GDP growth is projected to
ease gradually to between 6¼-6½ per cent in 2018 Indian Economy India has emerged as the
fastest growing major economy in the world as per the Central Statistics Organisation (CSO)
and International Monetary Fund (IMF). The Government of India has forecasted that the
Indian economy will grow between 6.75 and 7.5 per cent in FY 2017-18. According to IMF,
Indian economy is expected to grow at 7.7 per cent during FY 2017-18. In the Union Budget
2017-18, the Finance Minister, verified that the major push of the budget proposals is on
growth stimulation, providing relief to the middle class, providing affordable housing,
curbing black money, digitalisation of the economy, enhancing transparency in political
funding and simplifying the tax administration in the country. India’s unemployment rate has
declined to 4.8 per cent in February 2017 compared to 9.5 per cent in August 2016, as a result
of the Government’s increased focus towards rural jobs and the Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA) scheme. Numerous foreign companies are
setting up their facilities in India on account of various government initiatives like Make in
India and Digital India. Mr. Narendra Modi, Prime Minister of India, has launched the Make
in India initiative with an aim to boost the manufacturing sector of Indian economy, to
increase the purchasing power of an average Indian consumer, which would further boost
demand, and hence spur development, in addition to benefiting investors. The Government of
India, under the Make in India initiative, is trying to give boost to the contribution made by
the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17
per cent. The acceleration of structural reforms is bringing a new growth impetus. The Goods
and Services Tax (GST), to be implemented from July 2017, should help make India more of
a single market and thus spur productiv abolition of the Foreign Investment Promotion Board,
which reviewed foreign investment programmes, should promote FDI inflows. The central
government’s initiative to rank individual states on the ease of doing business is opening a
new era of structural reforms. Many states have already modernised regulations and
administrative procedures and some are experimenting with reforms of land acquisition and
labour regulations. INDUSTRY OUTLOOK Global steel processing is generally classified
into two types that is primary and secondary steel making. Primary steel processing converts
liquid iron from a blast furnace or steel scrap into steel. This can be done using melting the
scrap steel in electric arc furnace. Secondary steel processing includes the refining of crude
steel and different operation. Steel can be processed using the combination of iron, alloy and
carbon melting together in proportionate basis. Steel can also be processed through hot rolled
and cold rolled method. The steel processing market is expected to reach USD 600 Billion by
2022. Asia-Pacific region is expected to dominate the steel processing market during 2016-
2022. This is because the leading steel processing providers are mainly focusing on emerging
countries due to their potential in industrial development in future. The demand for steel is
growing in the North America region. Due to low production cost and cheap labor, European
countries have set up their plants in Asia-Pacific region. Steel is one of the most important
products in the modern world and forms the backbone to any industrial economy. India being
one of the fastest growing economies in the world, and steel finding its extensive application
right from construction, infrastructure, power, aerospace and industrial machinery to
consumer products, the sector is of strategic importance to the country. The Indian steel
sector has grown exponentially over the past few years to be the third largest producer of
steel globally, contributing to about 2% of the country’s GDP and employing about 5 lakh
people directly and about 20 lakh people indirectly. India was the world’s third-largest steel
producer in 2016. The growth in the Indian steel sector has been driven by domestic
availability of raw materials such as iron ore and cost-effective labour. Consequently, the
steel sector has been a major contributor to India’s manufacturing output. The Indian steel
industry is very modern with state-of-the-art steel mills. It has always strived for continuous
modernisation and up-gradation of older plants and higher energy efficiency levels. India’s
crude steel production grew by 7.4 per cent year-on-year to 95.6 Million Tonnes (MT) in
2016. Total production of crude steel during February 2017 grew by 8.5 per cent year-onyear
to 8.08 MT. India’s steel exports grew 150.0 per cent year-on-year to 0.75 MT in February
2017, while steel imports declined 46 per cent year-on-year to 0.49 MT. Total consumption
of finished steel grew by 3.4 per cent year-onyear to 76.22 MT during April 2016-February
2017. India is expected to become the world’s second largest producer of crude steel in the
next 10 years, moving up from the third position, as its capacity is projected to increase to
about 300 MT by 2025. Huge scope for growth is offered by India’s comparatively low per
capita steel consumption and the expected rise in consumption due to increased infrastructure
construction and the thriving automobile and railways sectors. India is being seen as a bright
spot for the growth in global steel production, supported by government’s push to augment
capacity and demand from the construction, automotive and infrastructure sectors. India’s
steel output grew by 7.4 per cent year-on-year in 2016, and is expected to reach an average
annual growth of 8.9 per cent between 2017-2021. The steel output has been estimated to
grow to 128.6 million tonnes (MT) in 2021 from 88.4 MTs in 2017 and the share in global
output would rise to 7.7 per cent by 2021 from 5.4 per cent in 2017. There exist many factors
which carry the potential of raising the per capita steel consumption in the country. These
include among others, an estimated infrastructure investment of nearly a trillion dollars, a
projected growth of manufacturing from current 8% to 11-12%, increase in urban population
to 600 million by 2030 from the current level of 400 million, emergence of the rural market
for steel currently consuming around 11 kg per annum buoyed by projects like Bharat
Nirman, Pradhan Mantri Gram Sadak Yojana, Awaas Yojana among others.

The year has been defined by political shocks in advanced economies – firstly, the decision
by the UK electorate in June to leave the EU, followed by the election of Donald Trump to
the US presidency in November. Both events will continue to have ramifications well beyond
their borders in 2017-18 and beyond. In 2016-17, consumer continued to spend cautiously
with expenditure increasing by just 2.4% in real terms over 2015-16 – well below the
corresponding increase in disposable income – with consumers in Asia Pacific increasing
their spending at the strongest rate. Spending in Latin American actually declined over 2015-
16, dragged down by Brazil’s dismal economic performance and weak commodity prices.
Global growth is predicted to rise modestly from 3% in 2016 to just over 3½ per cent by
2018. The mood in the global economy has brightened during the last quarter of last year,
with confidence indicators and industrial production increasing, and investment and trade
picking up from low levels. Growth is broad-based, including among major commodity
producers. Global GDP growth is projected to rise to a little over 3½ per cent by 2018, helped
by improving policy-supported outcomes in some emerging market economies, particularly
in Asia, and the assumption of a moderately-supportive fiscal stance in a number of advanced
economies, especially the United States in 2018. GDP growth in Japan is set to strengthen to
1.4% this year, supported by stronger export growth, especially in Asian markets, and a
modest fiscal easing. In China, near-term demand is being supported by strong infrastructure
and housing investment driven by expansionary fiscal policy, including via support for public
investment from policy banks, and buoyant credit growth. As efforts intensify to manage
financial risks and encourage the necessary transition towards consumption and service
sectors, GDP growth is projected to ease gradually to between 6¼-6½ per cent in 2018 Indian
Economy India has emerged as the fastest growing major economy in the world as per the
Central Statistics Organisation (CSO) and International Monetary Fund (IMF). The
Government of India has forecasted that the Indian economy will grow between 6.75 and 7.5
per cent in FY 2017-18. According to IMF, Indian economy is expected to grow at 7.7 per
cent during FY 2017-18. In the Union Budget 2017-18, the Finance Minister, verified that the
major push of the budget proposals is on growth stimulation, providing relief to the middle
class, providing affordable housing, curbing black money, digitalisation of the economy,
enhancing transparency in political funding and simplifying the tax administration in the
country. India’s unemployment rate has declined to 4.8 per cent in February 2017 compared
to 9.5 per cent in August 2016, as a result of the Government’s increased focus towards rural
jobs and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
scheme. Numerous foreign companies are setting up their facilities in India on account of
various government initiatives like Make in India and Digital India. Mr. Narendra Modi,
Prime Minister of India, has launched the Make in India initiative with an aim to boost the
manufacturing sector of Indian economy, to increase the purchasing power of an average
Indian consumer, which would further boost demand, and hence spur development, in
addition to benefiting investors. The Government of India, under the Make in India initiative,
is trying to give boost to the contribution made by the manufacturing sector and aims to take
it up to 25 per cent of the GDP from the current 17 per cent. The acceleration of structural
reforms is bringing a new growth impetus. The Goods and Services Tax (GST), to be
implemented from July 2017, should help make India more of a single market and thus spur
productiv abolition of the Foreign Investment Promotion Board, which reviewed foreign
investment programmes, should promote FDI inflows. The central government’s initiative to
rank individual states on the ease of doing business is opening a new era of structural
reforms. Many states have already modernised regulations and administrative procedures and
some are experimenting with reforms of land acquisition and labour regulations. INDUSTRY
OUTLOOK Global steel processing is generally classified into two types that is primary and
secondary steel making. Primary steel processing converts liquid iron from a blast furnace or
steel scrap into steel. This can be done using melting the scrap steel in electric arc furnace.
Secondary steel processing includes the refining of crude steel and different operation. Steel
can be processed using the combination of iron, alloy and carbon melting together in
proportionate basis. Steel can also be processed through hot rolled and cold rolled method.
The steel processing market is expected to reach USD 600 Billion by 2022. Asia-Pacific
region is expected to dominate the steel processing market during 2016-2022. This is because
the leading steel processing providers are mainly focusing on emerging countries due to their
potential in industrial development in future. The demand for steel is growing in the North
America region. Due to low production cost and cheap labor, European countries have set up
their plants in Asia-Pacific region. Steel is one of the most important products in the modern
world and forms the backbone to any industrial economy. India being one of the fastest
growing economies in the world, and steel finding its extensive application right from
construction, infrastructure, power, aerospace and industrial machinery to consumer products,
the sector is of strategic importance to the country. The Indian steel sector has grown
exponentially over the past few years to be the third largest producer of steel globally,
contributing to about 2% of the country’s GDP and employing about 5 lakh people directly
and about 20 lakh people indirectly. India was the world’s third-largest steel producer in
2016. The growth in the Indian steel sector has been driven by domestic availability of raw
materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a
major contributor to India’s manufacturing output. The Indian steel industry is very modern
with state-of-the-art steel mills. It has always strived for continuous modernisation and up-
gradation of older plants and higher energy efficiency levels. India’s crude steel production
grew by 7.4 per cent year-on-year to 95.6 Million Tonnes (MT) in 2016. Total production of
crude steel during February 2017 grew by 8.5 per cent year-onyear to 8.08 MT. India’s steel
exports grew 150.0 per cent year-on-year to 0.75 MT in February 2017, while steel imports
declined 46 per cent year-on-year to 0.49 MT. Total consumption of finished steel grew by
3.4 per cent year-onyear to 76.22 MT during April 2016-February 2017. India is expected to
become the world’s second largest producer of crude steel in the next 10 years, moving up
from the third position, as its capacity is projected to increase to about 300 MT by 2025.
Huge scope for growth is offered by India’s comparatively low per capita steel consumption
and the expected rise in consumption due to increased infrastructure construction and the
thriving automobile and railways sectors. India is being seen as a bright spot for the growth in
global steel production, supported by government’s push to augment capacity and demand
from the construction, automotive and infrastructure sectors. India’s steel output grew by 7.4
per cent year-on-year in 2016, and is expected to reach an average annual growth of 8.9 per
cent between 2017-2021. The steel output has been estimated to grow to 128.6 million tonnes
(MT) in 2021 from 88.4 MTs in 2017 and the share in global output would rise to 7.7 per cent
by 2021 from 5.4 per cent in 2017. There exist many factors which carry the potential of
raising the per capita steel consumption in the country. These include among others, an
estimated infrastructure investment of nearly a trillion dollars, a projected growth of
manufacturing from current 8% to 11-12%, increase in urban population to 600 million by
2030 from the current level of 400 million, emergence of the rural market for steel currently
consuming around 11 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri
Gram Sadak Yojana, Awaas Yojana among others.

Chapter-4
 Data
Reductions,
presentation
& Analysis

3.4 Data Reductions, Presentation And Analysis

1. How long have you worked for this organization?

 Less than one year

 One year to less than two years
 Two years to less than five year
  Five years to less than ten years
 Ten years or more

percentage

less thann 1 one year to less than two years two yars to less than five year
five years to less than ten years ten years or more

Analysis:- This pie chart interprets that the employees whoareworking in Goodluck company
there is some percentages of the years which shows from how many years the employees are
working i.e. less than one year there are 4% employees are working same as one year to less
than two years i.e.5% of employees , two years to less than five year i.e. 9% of employees
,five years to less than ten years i.e. 8% of employees, ten years or more 3% of employees are
working in te Goodluck steel company.

2. Which of the following best describes your role?

 Administrative/Clerical
 Executive/Partner
 Manager or Supervisor
 Production/Service
  Professional

administrative executive manager of supervisior

production or service professional

Analysis:-This pie chart interpret that the who filled this questionnaire they belongs to which
profession . This is the analysis of different departments or the role of the employees. this pie
shows that role of workers in the organisation like as. There is 5% of administrative
department same as executive department has 3% who filled the questionnaire, manager of
supervisor has 8% ,production of service has 4%, professional has 7% who filed the
questionnaire.

3  can you describe steel company's overall approach to maintaining its competitive position.

A- product oriented (7)

 B- price oriented (4)
 C- brand oriented (5)

8%

7%

6%

5%

4%
Series 1
3%

2%

1%

0%
Product Oriented Price Oriented Brand Oriented

Analysis:- This graph interprets that the company the overall growth of the company . the
company is basically based on which position. The company overall growth is based on
products it analysed by questionnaire. But the overall based on percentages of product
oriented 7% , brand oreinted4%, brand oriented5%.. this is overall growth of the company.

4  what have been the main challenges that the company has had to face and how has it
dealt with these challenges?

 A- to survive in the market (3)

 B- to earn profit (4)
 C- to face competition (5)
 D- growth (3)

6%

5%

4%

3%
Column2

2%

1%

0%
Survive in the market To earn profit To face competition Growth

Analysis:-This graph shows that the how much the company faces challenges with the
employees. There is a question about for the challenges. that how the suffers in the market
there is a survey behind it, that the company have to survive in the market3%, to earn
profit4%, to face competition 5% , growth 3% there is survey of surviving in the market.

5   does the company have specific plans for growth in the next few years?

 A- yes (9)

 B- no (5)
 Growth

Yes
No

Analysis:-this pie shows the survey of the growth of the company that company has decided
the growth in upcoming ten years so the analysis of the survey is that there is 9% of
employees said that thy have some specific plans but some of them said they don’t have any
plan, the employees who said no there is 5% employees who don’t have any future plans.

6. What do you think which growth strategies is most effective?

A- FDI (1)
 B- Merger &
 acquisition (8)
 C- franchising (5)
 D- subsidiary (1)

9%

8%

7%

6%

5%

4% Series

3%

2%

1%

0%
FDI Merger & acquisition franchising subsidiary

Analysis:-This pie chart shows that which strategy is more effective according to the survey
merger and acquisition is more effective . this show in the graph, merger and acquisition get
more percentage for effective growth.

7  Is the growth and expansion strategies of the company are effective?
 A- yes (10)
 B- no (4)
 Sales

Yes
No

Analysis:-According to this pie chart, the company is using strategies are effective . there is
an increasing of the growth and strategies according to the survey. there 10% of employees
said about the growth strategies of the company

8 Please rate the following Export/Import barriers from 1-5 (Import barriers from point of
Indian distributors)
Strong competition in foreign markets

Need to have foreign representation

Transportation problems
 Added cost is required for doing export business
Need to research foreign markets
Competition for the firm in respect to the domestic market
Lack of experience of exporting
Problems in Documentation
Lack of knowledge of foreign markets, customers buying habits and business methods
Fluctuations in Foreign Exchange rates
Import restrictions
Risks attached to exporting
 

 A- 1 (0)
 B- 2 (0)
 C- 3 (4)
 D- 4 (8)
 E- 5 (3)

5
Series 1
4 %

0
A B C D E

Analysis:-this rating graph shows that the company faces which types of challenges through
the import and export . there is a specification of the company that the import and export the
company.

9  Please rate from 1-5 the contribution of the web to Export/Import business

1. Helps in proper marketing research 

2. Helps the firm to sell anywhere in the world
3. Creates good relationships with customers
4. Lowers the cost of international marketing
5. Creates a good image of the business
6. No need to set up foreign branches
 7. Makes exporting/importing easier
8. Communicate and work with customs and transport companies
9. Different foreign cultures and business practises can be avoided
10. Helps in penetrating unfamiliar foreign markets
11. New products can easily be launched
12. No need to have foreign representative
13. Business can be internationally recognised
14. Competitive edge over rivals
 A-1 (0)
 B-2 (1)
 C-3 (5)
 D-4 (5)
 E-5 (3)

3 Series 1
Column1

0
A B C D E

Analysis:-This bar graph showing the contribution to the growth and expansion of
company .there is rating of involvement of the workers in the organisation..

10.  is the Government supporting the steel industry?

 
 A- yes (8)
 
 B- no (5)
 Percentage

Yes
NO

Analysis:- this pie chart showing that the government is supporting the steel industry wih the
growth and expansion of the company. There is 8% employees who said yes and 5%of
employees who said no. . There is analysis of this question.

11. Rank the different steel company according to their growth

 
   A- JFE (1)
 B- Tata steel industry (5)
 C- Corus Group (1)
 D- Acelor Mittal Steel (5)
  E- Nippon Steel Corporation (2)
 F- Ispat (1)
 G- Pohang Iron and Steel Company (0)

JFE
Tata Steel Industry
Corus Group
Acelor Mittal Steel
Nippon Steel Corporation
Ispat
Pohang Iron and steel company

Analysis:-According to this pie chart .there is analysis of the different steel companies
according to their growth. There is ranking of different steel companies with different growth
or major growth .. so the tata steel company has more growth .so the main competitor is our
tata steel company.

12  What are your experiences about the steel company product?

 
   A- very good (0)
 B- good (6)
 C- average (7)
 D- bad (0)
  E- very bad (1)

4
.2

0
Very Good Good average bad Very Bad

Analysis:-This graph shows that employees are sharing their experiences about the products .
they analysed the products and services about the products, so the overall analysis is the
products of the company experiences are average. there is 0% of people voting very good
option, 6% people votes about good, 7% of people voting average,0%of people voting bad
experiences, 1% of people voting their very bad experience. There is analysis of experiences
of people.

13 Steel industry has good impact on the Indian economy

 
 A- yes (9)
 
 B- no (5)
 10

5
Percentage
4

0
Yes No

Analysis:-There is analysis of impact of industry in the economy . there isgood impact on the
steel industry. 9% of people votes yes for the good impacts on industry. 5% of people voted
no for good impact on the steel industry. Overall there is a good impact on steel industry.
 Chapter-5
Interpretation

3.5 Data Interpretation

The present chapter included the details of media expert interviews, carried out through an
unstructured questionnaire. The interviews were conducted among the media experts that
included producers, program directors, assistant directors, creative heads and media content
analysts. The questions of the questionnaire were based on the findings of secondary data
analysis and included the different attributes recounted to the study. The questionnaire was
divided into two sections. Section A included the demographic and basic information about
media programs liking and disliking of the media experts, section B had the questions about
views of media experts regarding the different attributes of media Imperialism like,
globalization, technology, convergence, ownership, privatization, content and how and what
changes they had brought in the television industry. The data were collected from fifty eight
media experts through the networking/snowball sampling between August to December
2016.

The data regarding the demographic profile of the respondents. The data above indicates that
the maximum respondents on the important positions in the media channels and production
houses that were 87% were male, whereas only 13% were females. the table depicted the data
about the professional status of the media experts where the highest percentage 41% and 118
21% respondents were found media activist/ analyst and Assistant Directors, whereas 13%
held other positions like producers, assistant producers and media analyst and only 10% were
creative heads. When it came to their education qualification maximum respondents,45% had
held the degrees of masters in journalism and mass communication, whereas second most
positions that was with the 35% were Graduated and last but not least total 20% respondent,
only 10% were highly qualified with PHD whereas only 8 % had PG diploma in journalism
and mass communication. When it came to the age the maximum respondent, 37% belonged
in the age group of 31-40, 31% more than 60 years, 16% in the age group of 51-60, 18% 41-
50 in the age group and only 10% belonged to the youngest age group that was 21-30 years.
Finally, The demographic profile of a respondent in a research, usually gave an idea about the
different aspects of a respondent that include education level, profession, age and gender
through which researcher could justify its data sample. The data above indicated that
maximum respondent were male highly educated to the level of Assistant director with the
age group of 31-40.

the language channel they preferred to watch, about their favorite TV formats and what they
preferred to watch. Data showed that maximum media experts that were 78%watched the TV
for 119 one to three hours a day; 12% three to five and 10% watched 5-7 hours a day. For
maximum 77% respondents, the motive behind watching TV was to get information and get
entertained whereas for the 23% that was related to their job, they had to keep an eye on the
programs and content of their competitor channels and change the strategies of their
respective channels and programs accordingly so that the channel could get maximum TRPs.
A researcher while conducting interviews encountered an interesting fact that the maximum
percentage of media expert that was 57% watched only English channels, 26% Hindi and
English, 15% Hindi and a minimal percentage that was 2% watch other language channels.
According to the media experts, English channels had a variety of Fresh programs with
different concepts and quite realistic whereas on the other side Hindi channels provided stale
programs based on the same concepts always far away from the reality. When they were
asked which format, they liked most the maximum 42 % opted for entertainment format, 15
%news, 12% others, 10%-10% sports and informationbased channels.

The Questionnaire included the Unstructured interviews conducted by the research to know
the impact of media Imperialism on Indian Television Industry and for the success of
questionnaire minimum question with more clarity were asked on the every founded
attributes of media imperialism. Total 58 media professionals were interviewed and their
responses were sequenced to highest to lowest.

Ideology of Indian had changed,diluted or transformed due to the internationalization. An

ideology is a world view, a system of values, attitudes and beliefs which an individual, group
or society held to be true or important; these shared by a culture or society about how that
society should function.

Respondent said that due to the globalization the technological advancement had not only
shattered social boundaries of the world; it had also brought the tremendous transformation in
all the fields, especially media now people all over the world started living in close
proximity. They shared their joys and sorrows with one another. A person living in a small
district of Haryana benefitted from the inventions and discoveries made by the people of
America and all this happened because of the latest technologies that created the experience
of global shared time, especially by informing and entertaining the people around the world
about “events and programs” that they could share and watch,all this happened because of
technology that disseminated through globalization.

A media professional expressed the view, that technology had in fact altered human
interactions. Due to the more choices and freshness of programs with the technology in hand
audience now glued to the screens of their laptops, tablets and Smartphone’s and become
more and more personalized and isolated, that decreased personal interaction and affection.
Technology had been the traditional method used to broadcast television signals, essentially
since the inception of television initially the signals were sent by radio waves from a national
network of masts and antennae and were received by viewers through an aerial but with the
advancement in technology the scenario changed completely, However, countries around the
world are now in the process of abandoning traditional analogue terrestrial television
broadcasting and moving towards digital television broadcasting
 Chapter-6
Conclusion

3.6 conclusion
3.6.1 Result of The Study
The study was conducted in Goodluck limited in Ghaziabad . The Quality of Work Life was
studied with respect to individual plants and as a whole comparing these two plants. The
Quality of Work Life was correlated with demographic factors of respondents’ employees
and studied in detail.

The most influencing factors of Quality of Work Life are ranked. While ranking, it was found
that Compensation of Employees, Opportunity for Growth and Development and Working
Conditions prevailed in the company dominated all other factors and was ranked I, II and III
respectively

By using Multiple Discriminant Analysis it was found that the impact of Quality of Work
Life of goodluck employees is positively associated with the 260 demographic factors like of
employees Educational Qualification, Monthly Income, Employees Cadre, and the Length of
Service. In case of employees of Goodluck Steel Plant, it was found from the analysis that the
impact of Quality of Work Life of employees are found positively associated with the
employee status like their Age, Employees Cadre and the Length of Service.

Discriminant Function Analysis was applied to the respondents based on the classification of
employees based on the felt impact like low impact group and high impact group. In
Goodluck Steel Limited, the factors viz., Employees Length of Service, Cadre, Educational
Qualification and Monthly Income were found significantly discriminate the two groups. In
Goodluck private limited, the factors like Employees Length of Service, Cadre, Educational
Qualification, Monthly Income and their Age significantly discriminate the two impact
groups.

Factor analysis has been employed to find out the level of acceptance towards Quality of
Work Life prevailing in the Goodluck steel plants. The factors contributing improved QWL
are grouped and renamed ‘Improved Organizational Climate’, ‘Increased Job Security’ and
‘Social Integration at Work Place’ in Goodluck Steel Limited. In Goodluck Steel Plant the
factors are grouped and renamed as ‘Employees Commitment’ ‘Increased Job Satisfaction’
and ‘Improved Organizational Stability’.

3.6.2 Suggestions
Keeping in view the above observations and findings ofthe study the following points are
suggested to improve the financial performance in the selected iron and steel companies in
India.

1. The main problem before the iron and steel industry is of mounting trend of cost. All the
components of costs are increasing continuously year by year which affects the financial
performance of the Industry. Therefore, it is the need of the hour that the iron and steel
industry shows better performance by reducing the operating cost. For controlling the cost in
industry standard costing system should be introduced to improve their performance.

2. The study has revealed that the long term financial strength of the iron and steel
companies is not satisfactory. The commercial operation and financial strength have
continued to be weak. To improve the financial position of the iron and steel industry it is
suggested that the capital ofthe companies should be restructured by a part of the loan capital
into equity capital. This will have the advantage of relieving the burden of interest payment.
Thus, the share capital will help the companies to earn a surplus. Conversion of loan into
equity capital will not only reduce the interest burden, but also relieve the companies in the
matter of repayment of loans to creditors. This will improve the financial performance,
thereby enabling them to raise enough internal sources to finance their expansion
programmes.

3. There has been a positive significant relationship between steel prices and inflation of
whole sale price Index. During the high inflation period, the Government asked the steel
producing companies should to reduce the steel prices, to help to control inflation. In the
same way, the Government assisted with some sort of cash grants say concession of sales tax,
less power tariff, reduce railway wagons charges, to revamp the already loss making steel
plant. The Government may give cash grant to those undertakings which have 246 reduced
accumulated losses and which are likely to improve their prospects in future.

1. How long have you worked for this organization?

 Less than one year

 One year to less than two years
  Two years to less than five year
 Five years to less than ten years
 Ten years or more

2. Which of the following best describes your role?

 Administrative/Clerical
 Executive/Partner
 Manager or Supervisor
 Production/Service
 Professional

3  How can you describe steel company's overall approach to maintaining its competitive
position.

A- product oriented (7)

 B- price oriented (4)
 C- brand oriented (5)

4  what have been the main challenges that the company has had to face and how has it
dealt with these challenges?

 A- to survive in the market (3)

 B- to earn profit (4)
 C- to face competition (5)
 D- growth (3)

5  Does the company have specific plans for growth in the next few years?

 A- yes (9)

 B- no (5)

6. What do you think which growth strategies is most effective?

A- FDI (1)
Merger &
 B-
acquisition (8)
 C- franchising (5)
 D- subsidiary (1)

7  Is the growth and expansion strategies of the company effective?

 A- yes (10)
  B- no (4)
ss

8 Please rate the following Export/Import barriers from 1-5 (Import barriers from point of
Indian distributors)
Strong competition in foreign markets

Need to have foreign representation

Transportation problems
Added cost is required for doing export business
Need to research foreign markets
Competition for the firm in respect to the domestic market
Lack of experience of exporting
Problems in Documentation
Lack of knowledge of foreign markets, customers buying habits and business methods
Fluctuations in Foreign Exchange rates
Import restrictions
Risks attached to exporting
 

 A- 1 (0)
 B- 2 (0)
 C- 3 (4)
 D- 4 (8)
 E- 5 (3)

9  Please rate from 1-5 the contribution of the web to Export/Import business

1. Helps in proper marketing research 

2. Helps the firm to sell anywhere in the world
3. Creates good relationships with customers
4. Lowers the cost of international marketing
5. Creates a good image of the business
6. No need to set up foreign branches
7. Makes exporting/importing easier
8. Communicate and work with customs and transport companies
9. Different foreign cultures and business practises can be avoided
10. Helps in penetrating unfamiliar foreign markets
11. New products can easily be launched
12. No need to have foreign representative
13. Business can be internationally recognised
14. Competitive edge over rivals
 A-1 (0)
 B-2 (1)
 C-3 (5)
 D-4 (5)
 E-5 (3)

10.  Is the Government supporting the steel industry?

 
 A- yes (8)
 
 B- no (5)

11. Rank the different steel company according to their growth

 
 A- JFE (1)
 B- Tata steel industry (5)
 C- Corus Group (1)
   D- Acelor Mittal Steel (5)
 E- Nippon Steel Corporation (2)
 F- Ispat (1)
 G- Pohang Iron and Steel Company (0)

12  What are your experiences about the steel company product?

 
 A- very good (0)
 B- good (6)
   C- average (7)
 D- bad (0)
 E- very bad (1)

13 Does Steel industry has good impact on the Indian economy?

 
 A- yes (9)
 
 B- no (5)