A REPORT ON

MARKET RESEARCH IN PUNE AND KOLHAPUR FOR COMPRESSORS, GENERATORS AND LIGHT TOWERS ATLAS COPCO LTD.

By
PRASAD V GUJAR 12BSPHH010362

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

A REPORT ON
MARKET RESEARCH IN PUNE AND KOLHAPUR FOR COMPRESSORS, GENERATORS AND LIGHT TOWERS ATLAS COPCO LTD.

By
PRASAD V GUJAR 12BSPHH010362

A report submitted in partial fulfilment of the requirements of MBA programme of IBS Hyderabad (2012 - 14 batch)

Name of the Organization: Atlas Copco (India) Ltd., Dapodi, Pune Date of Submission: 29th April 2013

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

PROJECT ABSTRACT
Objective of the Project:
Understand the business market of Compressors, Generators and Light Towers around Pune region in Maharashtra. Collect competitors information for different range of Compressors, Generators and Light Towers. Identifying the strong pockets of competitors. To find out the customer base and installation list in that pocket. Identifying with which dealer our competitor operates. To identify a prospective dealer in the process. Market Segment analysis for Compressors and Light Towers.

The primary task to achieve in the project is to understand the business market of construction equipments around Pune, Kolhapur and Satara regions in Maharashtra. Hence, prepared one to one interview questionnaire to be answered by clients and started with the existing road construction contractors in Pune. Meeting concerned authority of the company and getting correct required details from them was secondary. I acquired contact details online of the road construction contractors and started taking their appointments for face to face interaction and I am following this practice till date. Earlier major road construction contractors were covered and later on started concentrating on minor ones. After dealing with some customers and getting an idea of the customer base of Pune, I extended the project scope to Kolhapur. In Kolhapur the customer base included road construction contractors, irrigation contractors and quarry & mining contractors. The brand value and brand awareness of Atlas Copco was very much strong in Kolhapur compared to that in Pune. Kolhapur clients are still to be completed and also some customer segments in Pune are left. In coming two weeks of research, remaining customer segment of Kolhapur and Pune will be covered. At last market analysis of the data collected will be done and final report will be created.

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Introduction
Company Background:
Established since 50 years in India, Atlas Copco India is a leader in its core business areas- Air Compressors to related aftermarket and rental. Atlas Copco companies develop and manufacture industrial tools, air compressors (of which it is the world's leading producer), construction and mining equipment such as rock drills, assembly systems, and offer related service and equipment rental. The products are sold and rented under different brands through worldwide sales and service network reaching 150 countries, half of which are served by wholly or partly owned sales companies. The Group operates through a number of divisions within three business areas; Compressor Technique, Construction and Mining Technique, and Industrial Technique. With state-of-art manufacturing facilities today at Pune, Nasik and Hyderabad, the company has a national presence with over 1700 highly skilled employees in 22 offices across India. Both the manufacturing plants in Pune and Nasik are ISO 9001 and ISO 14001 certified. In addition, the company has two captive engineering competency centres dedicated for compressors and construction and mining equipment. Over decades, Atlas Copco India has achieved strong profitable growth; The Company have products and solutions that increase customers' productivity, strong brands, skilled service providers, common processes and shared best practices. The company vision is not only to be, but also remain First in MindFirst in Choice of our stakeholders. Atlas Copco is a world leading provider of industrial productivity solutions. The products and services include compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems, and related aftermarket and rental. In 2012, the Group had 37 500 employees at year-end. In 2012, the Group had revenues of BSEK 81 (BEUR 9). It manufactures products in more than 20 countries. The products are sold and rented under different brands through a worldwide sales and service network reaching more than 170 countries, half of which are served by wholly or partly owned customer centres. Founded in 1873, Atlas Copco has more than 130 years of experience of innovating for sustainable productivity. Listed on the NASDAQ OMX Stockholm exchange.

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Company Products:
An air compressor is a device that converts power from a diesel engine into kinetic energy by compressing and pressurizing air, which, on command, can be released in quick bursts. Compressor has many applications in different processes such as Road maintenance, Sand blasting, Civil works, Construction, Drilling, mining and quarrying, Pipe cleaning etc. In quarry mines, a hole is made into the rock for blasting to get boulders. This hole is use to be of a length of 8-9ft. The explosives are kept into the hole. To drill into the rock the jack hammer is used this jack hammer is connected to the compressor. The compressor supplies air to the jackhammer. For bore blasting crawlers are used and thus are connected to large size compressors. After getting the boulders(mid size stones) it is further processed into the crusher plant from where it is collected into different sizes of stones and supplied to different processes. An engine-generator is the combination of an electrical generator and an engine (prime mover) mounted together to form a single piece of equipment. This combination is also called an engine-generator set or a gen-set. In many contexts, the engine is taken for granted and the combined unit is simply called a generator. Engine-generators are used to supply electrical power in places where utility (central station) power is not available, or where power is needed only temporarily. Small generators are sometimes used to supply power tools at construction sites. Trailer-mounted generators supply power for temporary installations of lighting, sound amplification systems, amusement rides etc. To understand the applications of Compressors, Generators and Light Towers in construction business by visiting different construction sites. Identify all the Road Construction companies operating in the industry along with their dealers within Pune/Maharashtra. Meet them to collect information about the business as well as about the company. Find out the value proposition and assess Atlas Copco on these parameters. I. Portable Compressors: Atlas Copco Compressors are world famous for their compactness, reliability and economical running. Compressor element when mounted on a tractor provides air power wherever it is needed. When not required it can be easily removed and the tractor can be used for other work. Atlas Copcos Size 1 portable compressors are specially designed for heavyduty, harsh environments. They are totally at home in the renovation industry and quarries, are ideal for sandblasting applications, and operate reliably at high altitudes and extremes of temperature. Powered by an ultra-efficient 4-cylinder Kubota engine, Size 1 compressors give you a reliable source of compressed air for your applications, or for combinations of your pneumatic tools such as rock drills and hammers. All models meet the latest exhaust emission and noise directive criteria.

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

II.

Light Towers: The QLT-M10 is one of the most successful and well-accepted light towers in the market. The unit's proven concept of combining simplicity with robustness and reliability has been embraced by a lot of customers. This light tower is powered by a Kubota engine and uses the market-standard metal halide lamp. It has the possibility to power up small electrical tools through its optional sockets, this while providing the needed lighting to different work sites enabling continuous productivity.

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Main Text:
Methodology:
Research design is defined as a systematic and objective process of gathering, recording and analyzing data that provides information to guide business decisions. The process of business strategy can be divided into three phases planning, execution and report preparation. 1. The planning phase begins from problem/opportunity identification and leads to selection of the sampling procedure. 2. Data collection and evaluation can be described as the execution phase of the business research process. 3. While report generation can be considered as the last phase. The research methodologies used to collect data are of two types: 1. Primary method: In this type of method data is collected with the help of face to face interaction with a person. 2. Secondary method: It does not involve face to face interaction but data is collected through other sources like internet, on-phone, books etc. In this project, I will be using both the methodologies to collect data. I. Primary Method: Primary method has been used to collect data by talking to heads and staffs of the company. Data has also been collected by conducting one to one interviews. Secondary Method: Data has also been collected through different internet sources and economy surveys.

II.

Reason for choosing one to one interviews: Feedback opportunities: In personal interviews doubt of the interviewees can be clarified. Probing: The interviewer in a personal interview can explore the respondent for complex answers. The detailed information so obtained is very useful to the researcher. Length of interview: The length of interview is better in personal interviews. In a personal interview, chances of the respondents answering the entire question are greater as compared to other non-personal survey methods. Personal interviews lead to improvement in the quality of responses.

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Questionnaire Design:
A questionnaire is a set of questions to be asked from respondents in an interview, with appropriate instructions indicating which questions are to be asked, and in what order. Questionnaires are used in various fields of research like survey research and experimental design. Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can tap the necessary information from the respondent. Therefore, researchers always design a tactful set of questions to probe and prompt the interviewee to give useful answers. Questionnaires fall under various categories, such as structured, unstructured, disguised and undisguised. In the questionnaire I have used two types of questions I. II. Open ended questions: In open ended question design the respondents are encouraged to answer in their own words. Closed ended questions: In closed ended question a set of answers that the designer of the survey considers will accommodate the majority of potential responses.

A survey is conducted in Pune and Kolhapur to understand Atlas Copco in road construction business, mining and quarry industry. The sample comprised the quarry companies of Pune and Kolhapur. The questionnaire is as follows: 1. What business are you in? 2. What do you require Compressors/ Light Towers for it? 3. What is its application or what are you using it for? 4. Which company product do you have? 5. How many installations of Compressors / Light Towers you require? 6. How old are they? 7. How do you maintain them? 8. From where do you purchase them? 9. Do you deal with dealers for them? If yes who? 10. What price do you pay for it? 11. Do you require any finance while purchasing? Which banks? 12. Do you have any more requirements for the above products? 13. Has anyone come before here to meet you from ATLAS COPCO?

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Limitations of the Study:

Response bias: Sometimes the respondents knowingly or unknowingly misrepresent the truth. Non response errors: Sometimes respondents do not give a response or give partial response. It is called non response error. The reason may be lack of knowledge or unwillingness to answer. Limited region: The study was conducted around Pune and Kolhapur region only and hence cannot be applied to entire state. Inaccurate information: The answers given by the respondents are not always correct and may be misleading. Time consuming: It is very time consuming to visit every company situated and their operating sites to find their views and study their buying behaviour. Difficult to convince people: Sometimes it became very difficult to convince people as many of them are not aware of the products. Limited information: Being a trainee, it became difficult to obtain some confidential information about the organization. Non availability of person: In some cases the concerned person is not present to provide required inputs. Dependency on respondents view: The data collected is totally dependent on the respondents views, which could be bias in nature. Illiterate respondents: Personal interviews are more successful when the respondents are educated.

Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Please find below some of the customer responses till now: Customer Name Rohan Builders Remarks Generators Company Kirloskar, Cummins (10 KVA - 180 KVA) Accoustic Light Towers Company Compressors Company

Pune Customers - Total Visited: 35

After Sales Service is important. Wanted to know new technolgical developments in equipments Importance to after Sales Service and easy availability of spares. Cummins: After Sales is poor Cost is major factor Aska(400 W, Subcontracted Sodium Light)

Shaporji Pallonji

Rohan Builders Manisha Construction

Raj Group

R J Buildcon

Powerica

Labour Management is a problem After Sales Service is important along with Brand and less maintenance. Looking out for low maintenance equipments. Current working sites are at Amravati and Lavasa City, Pune Pricing is important. Couldnt disclose much details Cummins OEM. Operating in 6 states (Maharashtra, Goa and whole South India)

Kirloskar, Cummins (25 KVA - 500 KVA) Upto 200 KVA Kirloskar, Above 250 KVA Cummins Kirloskar DG Sets Kirloskar, Cummins (Upto 300 KVA)

Sigma, Aska(400W, 5-6 Metal Halide Bulb)

Subcontracted (Only for Excavation)

No Terex

Subcontracted Atlas Copco, IR

Kirloskar, No Cummins (Major / 7.5 KVA to 125 KVA)

Elgi

Kirloskar

No

Dynapac

IVRCL

Kala Builders

Couldnt get much of the information due to company policies Small player in road construction. Majorly deals with asphalting and minor

Cummins Powerica (7.5 KVA to 3000 KVA) Major 90% demand is from Manufacturing segment Cummins

No

Subcontracted

Kirloskar

No

Local made

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Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

concretization work

Krushnae Constructions

M.M. Brothers Construction

Low Maintenance and equipment specifications are important, Cost is secondary. Current sites at Shivajinagar and Yerwada. Upcoming at Wakad Deals with road asphalting, speed brakers and small contract works. Require only rollers and pavers rest all equipments are subcontracted.

Kirloskar, Cummins (10 KVA to 300 KVA)

Paikene

Atlas Copco

No

No

No

Kolhapur Customers Total Visited: 12

Sanjeevan Currently sites are going on in Konkan and two at Vaibhawadi of Irrigation Dam Current sites of road work are going at Hubli, Dharwad and Ankola (K'taka). Also bauxite mining sites at Udgiri, Kolhapur. Very satisfied with the Atlas Copco rock breaker's performance. Also will be happy to have Atlas authorized dealer in Kolhapur. Resell value of Atlas equipment is also found to be high. Major work is of windmill foundations. Current sites at Hubli, Chakan: Suzlon. Subcontracted: Caterpillar No Subcontracted to Sudharshan Khote No

Sahayadri Hydrallics

No

Req is there

Dhiraj Patil Construction

Kirloskar, cummins (60+ KVA)

No

No

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Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Sopan D Patil

Current sites are at Karali Dam and Satara

Mohite & Mohite

Swati Minerals

D. D. Dhere Construction Bhuminandan Construction Rocktech Engg & Mahalaxmi Tubewells

Current sites are at Rajapur, Ratnagiri and Antewadi: Earthern Dam Constr Major work of Excavation, Breaking & Loading. Current sites are at Kolhapur Shahuwadi, Bauxite mining Current sites are Murgud canals and Konkan Current sites are at Kolhapur Shahuwadi Drilling & Blasting, Iron ore and Bauxite mines. Current sites are at Bhellari (K'taka) sectors, Orissa, Goa, Shriwardhan ( M'htra) Hindalco, Gujarat Credo: Bauxite mines

Kirloskar(60 - 70 KVA), Ashok leyland, Local (85 KVA) Kirloskar(150 180 KVA) bought in 2000 01 No: Use Solar Panels - Local

No

Atlas(XA450), IR

No

No

Atlas Copco: 8 ft/lt - 10 yrs old

Kirloskar(5 KVA): bought at 1998 No Kirloskar(250 500), Caterpillar(600 KVA), Powerica

No

No Sigma: 2yrs old

Subcontract to Mustabha, Kolhapur No Atlas(XA450), IR, Elgi

The detailed customer report is maintained in an excel sheet which is being timely shared with the company mentor for any inputs.

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Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

Plan for completion of the project:

Tasks Induction along with Company overview. Assignment of Project Questionnaire Designing and preparation of Project plan Meeting existing company customer base in Pune Started meeting new customer in Pune to collect data Expected to meet customers of Kolhapur to collect data Expected to meet customers of Satara to collect data Expected to cover remaining areas of Pune Analyze the collected data and submit it to the company Prepare the report and submit Expected Date 12/03/2013 to 13/03/2013 14/03/2013 to 15/03/2013 18/03/2013 to 22/03/2013 25/04/2013 to 05/04/2013 08/04/2013 to 12/04/2013 15/04/2013 to 26/04/2013 29/04/2013 to 10/05/2013 13/05/2013 to 21/05/2013 22/05/2013 to 24/05/2013 27/05/2013 to 01/06/2013 Status Completed Completed Completed Completed WIP WIP Not yet Not yet Not yet Not yet

Currently I am visiting small on road construction contractors in Pune to collect data. Further I am planning to visit quarry and stone crushers market segment in Pune. Also have some follow ups with Kolhapur customers near Shiroli and Sangli Phata on NH4.

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Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco

References:
Product brochures of Atlas Copco Ltd. http://en.wikipedia.org/wiki/Light_tower_%28equipment%29 http://en.wikipedia.org/wiki/Air_compressor http://www.atlascopco.in/inus/products/product.aspx?id=1517273 http://www.atlascopco.in/inus/products/navigationbyproduct/Product.aspx?id=351 1572&productgroupid=3511722 http://www.atlascopco.in/

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Project Interim Report/Prasad Gujar/IBS Hyd/Atlas Copco