Jindal SAW Ltd

AN ASSINGMENT ON
UNDRSTANDING BUSINESS PROCESS
ON JINDAL SAW LIMITED, NEW DELHI

Bachelor of Business Administration

Under the Supervision

Dr. Veena Mehta Grover

By
MEZBAH UDDIN MURAD

PBL Course: Understanding

Business Process

Batch-04 , Semester-04
Admission No-18GSOB1010423

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 Jindal SAW Ltd

GUIDE’S CERTIFICATE

This is to certify that the project report titled “Business Policy & Strategic Management on Jindal Saw
Limited” submitted by Mezbah Uddin Murad under my supervision embodies the outcome of
his own Endeavour.

(DR. VEENA MEHTA GROVER)

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 Jindal SAW Ltd

DECLARATION

I, MEZBAH UDDIN MURAD, Student of BBA SEM-04 Batch-04 studying at Galgotias university , Greater
Noida declare that the project work entitled ““Business Policy & Strategic Management on Jindal Saw
Limited” Was carried by me in the partial fulfillment of BBA program.

This project was undertaken as a part of academic curriculum according to the university rules and norms
and it has not commercial interest and motive. It is my original work. It is not submitted to any other
organization for any other purpose.

Place: Greater Noida MEZBAH UDDIN MURAD

18GSOB1010423

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 Jindal SAW Ltd
Contents

1. Introduction

2. Clients

3. Pricing strategy

4. Marketing strategy

5. Distribution Channels

6. Product Range

7. Competitors

8. Competitive Advantage

9. References

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 Jindal SAW Ltd

1. Introduction

Jindal Organization

The $12 billion Jindal Organization is one of India's largest business groups, ranked fourth
amongst the Top Indian Business Houses in terms of assets. Established in 1970 by Mr. O.
P. Jindal, the Organizationhas expanded and diversified into varied business areas in a planned
manner, thereby ensuring the creation of a synergistic foundation for its various business ventures.
The Organizations’ manufacturing facilities are spread across 13 plants at ten pivotal locations in
India, with two plants situated in USA.

The Organization has always been technology-driven, leveraging its tech strengths as the bedrock
for its diversified product portfolio. Yet, despite the diversity, the focus at Jindal has always been
steel. From mining of iron ore to the manufacturing of value added steel products, Jindal has a pre-
eminent position in the flat steel segment in India and is poised to emerge as a major global player,
with its overseas manufacturing facilities, and its strategic manufacturing and marketing alliances
with global majors.

Within the Jindal Organization, people have always played a key role. The Organization
has consistently picked highly experienced technocrats and skilled professionals from a variety of
disciplines. Today, the Jindal Team comprises one of the most coveted talent pools of technological
acumen available in the country. The knowledge base and hands-on expertise of this Team has
enabled the Organization to put up large scale projects in record time.

Jindal SAW Ltd

About Jindal SAW Ltd.

JINDAL SAW LTD. Formerly known as SAW PIPES LTD belongs to US $ 12 billion Jindal
Group, the forerunners of Steel, Stainless Steel Industry and Pipe Industry. Mr. P.R Jindal
promoted Jindal SAW Ltd. in 1984. It was the time when country was importing most of its high-
grade steel line pipe to meet the growing requirement of Oil & Gas Sector Companies in India both
for their Off-shore and On-shore Line pipes Projects. Since then JINDAL SAW LTD. has
manufactured more than 13,500 Kms of Line pipes, exported in excess of 7500 Kms of Line
pipes for supply to On-shore and Off-shore pipeline projects to reputed Oil & Gas Sector
Companies around the world. JINDAL SAW LTD. therefore, has pioneered and perfected the
art of LongitudinalSubmerged Arc Welded (LSAW) Pipes adopting U-O-E & J-C-O forming
processes and is by far emerged as the most experienced line pipe manufacturing Company in this
part of the World, after Japan. In India JINDAL SAW LTD. is the only Pipe Mill, which
manufactures pipes adopting U-O-E process.
JSL has two Spiral Seam and four Long Seam SAW Pipe Mills presently running in India taking
our production capacity to approximately 1.5 MTPA. All our Pipe Mills are integrated with Anti
– Corrosion Coating facilities such as FBE, 3LPE, CTE: Hot Induction Bends facilities &
Concrete Weight Coating (CWC) facilities, JINDAL SAW LTD. has positioned itself as a Total
Pipe Solutions provider Company.

The Group also owns a Coating and Double jointing facility in Baytown, Houston, TX, USA by
the name Jindal SAW USA LLC.

JINDAL SAW LTD. is also in the business of manufacturing ultra-high precision and ultra thin
foil, Seamless pipes, spirally welded Line Pipes, Ductile Iron pipes and SG Grade Pig Iron.
JINDAL SAW LTD. therefore, has evolved itself into a preferred and reliable Provider of value, in
all its businesses.

Jindal SAW Ltd

JINDAL SAW LTD. is the first Indian Line pipe manufacturing Company to have an in-house,
world class NACE Laboratory. The first Company to have manufactured 100% seam
radio- graphed pipes, boiler quality pipes for high pressure and high temperature
application, the first to have manufactured Connector Casing pipes, the first to have ISO
9001 certification for Quality Management System, ISO 14001 certification for
Environmental Management Systems and ISO 18001 (OHSAS) certificationfor Occupational
Health and Safety Management Systems. Quality is embedded in the grains of JINDAL SAW LTD.
The fact that Jindal SAW has accreditation to ISO-9001, ISO 14001 and ISO 18001 through world
renowned Certification Agencies – DNV, is indicative that quality in JINDAL SAW LTD. starts
with quality of thoughts, quality of action and quality of people, who ultimately achieve the quality
product i.e. Completely satisfying and strictly in- accordance withthe Customer
Specification/Requirement.

JINDAL SAW LTD. manufactures line pipes in-accordance with API, DNV, Shell & Petro bras
specifications and all other major national & international standards & specifications. The
combined capacity of all the three LSAW pipe manufacturing mills: one located at Kosi Kalan and
two located near Port Mundra; is over 10 Kms of pipes per day and 750,000 tons per annum. On
a very ideal size of pipe, the capacity can go up to 850,000 tons per annum.

Jindal SAW Ltd

 2. Clients

Major Domestic Clients

Hindustan Petroleum Co.

Assam Gas Co. Ltd.
Ltd.

Bharat Petroleum Corpn.

Indian Oil Co. Ltd.
Ltd.

British Gas
Indraprastha Gas Ltd.

Larsen & Toubro

Cairn Energy Ltd.
Mahanagar Gas Ltd.
Dodsal Ltd.

Oil & Natural Gas Co. Ltd.

Engineers India Ltd.

Essar Construction Oil India Ltd.

Ltd.
Petronet MBH Ltd.

Gammon Punj Lloyd Ltd.

Gas Authority Of India Reliance Petroleum Ltd.

Ltd.
Reliance Ports & Terminals

Gujarat Adani Energy Ltd.. Ltd.

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 Jindal SAW Ltd

Gujarat Gas Co. Shell Hazira

Gujarat State Petrnet Ltd.

Major International Clients

AGIP Gas BV,

(Libya) PEDEC, Iran

AGIP Oil Company

(Libya) Petroleum Develoopment
Omam, Omam
Bechtel Intec
Consortium, UK

PTTE&P, Thailand
Burullus Gas Co., Egypt

Qatar Petroleum, Qatar

China National

Petroleum Company
(China) Repsol Oil Operations

Saipem (Italy)

FIMCO F2E, Iran

Saipem / CCC – JV, Omam
Gasco (Egypt)
Saudi Arabian Oil Co.

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 Jindal SAW Ltd

Hyundai Heavy Inds. Ltd, (Saudi Arabia)

Korea
Shell Petrleum
Iranian Offshore Oil Co.
Development Company
(IOOC), Iran
(Nigeria)

Joannou & Paraskevaides Shell, Brunie

(Overseas) Ltd, Greece

Shell, The Netherlands

Kalanaft, Iran
Mediterranean Oil Co.,
(Germany)

National Iranian Gas Co. Sirte Oil Co. (Libya)

(Iran)
State Company for oil
Nigerian Agip Projects (SCOP), Iraq
Oil Company (Nigeria)
Total E&P Indonesie,
North Oil Company, Iraq Indonesia

PEDCO, Iran Vietsovpe Tro, Vietnam

Zueitina Oil Company

(Libya)

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Demand drivers for Indian pipes & tubes industry

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 Jindal SAW Ltd

Competitive Strengths
• Location: Upstream facility is located in the Iron Ore rich belt of Bellary- Hospet region
of Karnataka. The strategic location of the manufacturing units with respect to established
ports and well connected rail and road networks ensures reliable and cost efficient receipt
of raw materials and dispatch of finished steel.
• Technology: In order to maintain quality and cost of products they have adopted
technologies such as Vibro compacting non-recovery Coke Ovens, the novel Corex Process
as well as the conventional Blast Furnace route of Iron Making.
• Integrated operations: They have a vertically integrated company with operations
spanning across iron ore mining to manufacture of value added galvanized and color coated
products. For preserving competitive advantage, they focus on developing
Advanced skill sets within the organization through internal research and development
efforts as well as tie up with leading companies.
• Marketing: Having one of the largest galvanizing capacities in the country, JSW is one
of the largest exporters of galvanized products to over 50 countries in five continents.
Professional Management: As part of corporate governance practices, they have a
qualified and experienced management in addition to a diversified independent board.

Business Strategy
Capacity enhancement: They intend to leverage proximity to iron ore reserves and
the existing infrastructure to expand capacities at low specific investment cost per
ton..
Increase vertical integration: Their impetus has been to increase the vertical
integration through strategic tie up, long-term linkages and acquisitions aimed at
ensuring availability of critical raw materials at low cost.
Improve product profile: They intend to improve the value added products in
product mix to withstand the vagaries of price volatilities besides being able to offer
suite of products to meet the growing requirements of the customers. Aligned to
this strategy, they had merged the steel business of JISCO, which was
into manufacture of value added products – HR Plates, Cold Rolled and
Galvanised.We are modernizing hot strip mill to increase hot rolled product
capacities while also setting up a 1 mtpa CRM complex to meet the growing demand
for value added products.
Improve financial profile: Being part of a capital-intensive industry with high
volatility in the product prices, they need to maintain a healthy financial profile.
They have accordingly reduced debt significantly over the last couple of years
bringing down the gearing levels and also intent to maintain low gearing ratio and
propose to reduce debt levels going forward to make resilient to any downward
pressure of steel prices and continue smooth operations.
Investing in technology to improve productivity and reduce wastage: they have
invested in latest technologies for efficient operations and are continuing to improve
to ensure that best operating practices are followed.
 The initiatives are adopted across company including areas related to coal
distribution, refractory relining file and plant availability enabling to improve
efficiencies resulting in reduced costs.

Swot Analysis

Strengths
• They are one of the major players in the steel sector and have a diversified client base.
They have adequate experience and expertise as an integrated steel producer and have
withstood the cyclic fluctuations that have characterized the steel industry in the past.
• They are one of the low cost producers of Hot Rolled coils, which forms a key input for
their CRM project. They also use the Corex-BOF route for making steel, which requires
less amount of coke.
• They have sourcing arrangements with suppliers of power and oxygen which reduces
vulnerability to fluctuations in the prices of these raw materials.
Weaknesses
• The debt / equity ratio or gearing is relatively high compared to some of the other
integrated steel producers in India. They are actively taking steps to rationalize further high
cost debt to reduce interest burden.
• The profitability of the Company is dependent on prices of key inputs such as iron ore,
coal and zinc. Though the Company mitigates these risks by entering into strategic tie- ups
/ sourcing contracts with raw material suppliers, any adverse fluctuations in the input costs
would affect the margins of the Company.
Opportunities
• Compared to the global per capita steel consumption average and the steel consumption
average for developed world, India’s per capita consumption of steel is extremely low. To
address this low consumption of steel the National Steel Policy 2005 envisages steel
production to grow at 7.3% CAGR to 110 Mtpa from the present levels of finished steel
production at 38 Mtpa. It also envisages steel imports growing at 7.1% CAGR (Compound
Annual Growth Rate) from the present level of 2 Mtpa to 6 Mtpa and steel exports to grow
at 13.3% CAGR from the prevailing 4 Mtpa (Metric Tons Per Annum) to 26 Mtpa leading
to a healthy apparent steel consumption of 90 Mtpa by the
F.Y. 2019- 20, a 6.9% CAGR growth. Several initiatives taken by the Government of India
in the form of infrastructural development programs such as the National Highway
Development Programme, the Indira Awas Yojna and the National Urban Renewal
Programme are expected to have a beneficial impact on the demand for steel.
Demand for Hot Rolled, Cold Rolled and Hot Dipped Galvanized Steel products – forming
the steel-value chain for the Company is expected to substantially benefit from the
positive impact of these initiatives.
• The Cold rolled products are used in the automobile sector. There is a major opportunity
for them to market their products on a large scale to the automobile sector resulting from
robust growth in the demand for automobiles combined with stringent regulations on
pollution control pertaining to old vehicles.
• India is perceived to be one of the manufacturing destinations for steel making globally
and this may propel to meet the demand not only domestically but also internationally.
Threats
• The steel industry is characterized by cyclical fluctuations in prices of finished steel
products as well as those of the key inputs. Any downward cyclical movement in the steel
sector could reduce the demand for steel and reduce profitability.
• Operating margins could come under pressure if there is a fall in the demand for steel
and increase in input costs. However, since JSW is one of the lowest cost producers in the
market, they may still be able to maintain reasonable operating margins for their products.
• The Indian steel industry is highly competitive. They face substantial competition in the
steel industry, both from Indian and international companies. Domestic as well as
international steel majors like Tata Steel, POSCO and Mittal Steel have announced plans to
set up manufacturing facilities in India. This could lead to excess capacity and consequently
downward pressure on the prices of finished steel products.
Pricing strategy
Pricing of welded steel pipes are very volatile. Pricing of steel depends on several factors. Some
of these factors are:

1. Cost factor.

2. Demand factor.

3. Competitive factors.

1. Cost factors: Majorly cost based pricing is adopted in JSL. The method determines the
price of a product or service that uses direct costs, indirect costs, and fixed costs whether related to
the production and sale of the product or service or not. These costs are converted to per unit costs
for the product and then a predetermined percentage of these costs is added to provide a profit
margin. Cost based pricing is done by twomeans. First, present costs of raw material,
operational costs incurred and several indirect costs are involved, by calculating these costs the
pricing is done. Second, by considering the economic factors and objectives the mark up price is
decided.

2. Demand factor: Steel market is very volatile. The pricing is highly dependent on the demand
in internationalmarket. Since the product is welded steel pipes and is used for conveyance of oil
and natural gas, therefore the demand of oil and gas is a major driver of prices. Oil and gas demand
and prices are major drivers of prices. When oil and gas companies hold the projects, demand of
commodity fluctuates which in turn affects the prices of steel pipes.

3. Competitive factors: Company has to keep an eye on competitor’s price. India in steel pipe sector
is facing major competition from many countries like China, Japan, and Korea etc. Dealing in
international market with potential competitors is not an easy task. Competition in international
market is intense and major business comes from foreign clients. Pricing strategy of competitors
plays an important role
in such condition.
 Jindal SAW Ltd

Marketing strategies

Marketing in JSL is well defined. JSL is market leader in SAW pipes. Marketing department
in JSL works mainly on two marketing strategies:

1. Personal selling

2. Public relations and publicity

Personal selling

Personal selling is one of the oldest forms of promotion. It involves the use of a sales force
to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where
the role of the sales force may be limited to supporting retailers and providing after- sales service).
It is the personal selling process that allows JSL the greatest freedom to adjust a message
to satisfy customers' information needs. Sales force allows the marketer or seller to
communicate directly with the prospect or customer and listen to his or her concerns, answer
specific questions, provide additional information, inform, persuade, and possibly even
recommend other products or services.

Personal selling in JSL is used to meet some objectives of promotion in the following ways:

1. Building Product Awareness – Salespeople, especially when selling in steel pipe markets,
is to educate customers on new product offerings. In fact, salespeople serve a major role in
discussing products with clients. Building awareness using personal selling is very important in
business markets. As discussed, the advent of controlled word-of-mouth marketing is leading to
personal selling becoming a useful mechanism for introducing customers to new products.

2. Creating Interest – The fact that personal selling involves person-to-person communication
makes it a natural method for getting customers to experience a product for the first time. In
fact, creating interest goes hand-in-hand with building product awareness as sales professionals
can often accomplish both objectives during the first encounter with a potential customer.

3. Providing Information – When salespeople engage customers a large part of the conversation
focuses on product information. Marketing organizations provide their sales staff
with large amounts of sales support including brochures, research reports, computer programs and
many other forms of informational material.

4. Stimulating Demand – By far, the most important objective of personal selling is to convince
customers to make a purchase. In The Selling Process salespeople accomplish this when offer has
detail coverage of the selling process used to gain customer orders.

5. Reinforcing the Brand – Most personal selling is intended to build long-term relationships with
customers. Astrong relationship can only be built over time and requires regular communication
with a customer. Meeting with customers on a regular basis allows salespeople to repeatedly
discuss JSL’s products and by doing so helps strengthen customers’ knowledge of what the
company has to offer.

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 Jindal SAW Ltd

Personal selling department structure

Marketing
Department

Sales

Export Domestic
Team Team

1 2 3 1 2

As shown in the above figure, marketing department mainly works as sales force. The main
emphasis of JSL ison personal selling. Department structure is like figure shown above and
hierarchical. Customers include major

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 Jindal SAW Ltd

Sales department is divided into two divisions:

1. Export team

2. Domestic team

Export team: This team deals with only foreign clients. The main work of these teams is to fulfil
the objectives (given above). In export division, 3 export teams are available. These teams deal
geographically. Globe is divided into three sections and each team is given an area and team is
responsible for the given territory only. In most of the countries where presently the company
is dealing, JSL has its representatives. These representatives findthe lead. This lead is given
to sales force of respective territory. The respective export team deals with the client. The three
territories defined are:

(A) Latin America, Gulf and Middle East.

(B) Africa and CIS (commonwealth of independent states).

(C) Rest the countries

Domestic team: These teams deal with domestic clients. In domestic division, 2 teams are
available.

Working of marketing department: Orders confirmation process is done in two ways. First,
through bidding, in this process tenders are floated by clients. Bidding is done by suppliers
and lowest price quoted supplier isselected. Mostly, government agencies and
institutions go for tenderprocess. Government institutions before finalizing orders check the
credibility of the company. This process i n c l u d e s s e v e r a l checks c o m p r i s i n g s tud y
of annual r e p o r t , q u a l i t ystandards being followed and present and past clients etc.

Client interaction with management is also a part of building relations with clients. Clients are
allowed to visit the manufacturing unit to be aware of the processes
 Jindal SAW Ltd

Public relations: Along with being a successful business entity Jindal SAW Limited has an
active sense of social responsibility. As a leading trans-national, the Company is committed to
being a good corporate citizen wherever the company is engaged in business activities and interests.
The company’s Corporate Social Responsibility Programme voluntarily integrates social and
environmental concerns into their operations. As a responsible corporate entity, JSL shoulders
many responsibilities.

The organization attempts to give its workforce a quality life, a hazard-free working environment,
and drive them to a higher standard of living by providing them access to amenities like housing,
transportation, medical facilities, schools, and other civic infrastructure. As part of community
service, JSL has adopted many villages surrounding the plants. Active volunteers from the
organization undertake regular literacy drives, organizefree health camps, mobile eye-care units
and continuously strive to make these villages independent and progressive.

Svayam

JSL has also undertaken project Svayam under its CSR. The aim of the project is to create
“Barrier Free” environment for physically challenged people, who continue to face barriers
that preventthem fromenjoying full civil, political a n d developmental rights. This is largely due
to ignorance in our society.

Vidya Devi Jindal School

At VDJS, a Residential School for Girls, the medium of teaching is the English language. The
school provides education that nurtures the traditions of our culture and also absorbs the finer
influences of t h e west. It focuses on a l l round development of personality and thorough education
of girls in order to make them conscientious and responsible citizens. More importantly, the school
imparts the right values and norms of behavior, thus helping the girl students enhance their
confidence and poise. The school is set in restful and calm surroundings
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 Jindal SAW Ltd

5. Distribution Channels

Mr Jindal said JSL aimed to provide a unique experience of buying steel products through branded
distribution channels. There are two types of distribution channel – through traders and through
clients. Traders act as an indirect channel between the buyer and the seller. Mostly cash
transactions take place where traders are involved and accounts to almost 90%- 95% of the total
transactions taking place. There is no direct dealing with the company as such. Traders either hoard
a certain amount as inventory, whereas there can be other situations where they keep zero
inventory. The amount kept as inventory is meant for meeting uncertain demand and the trader
delivers the product to the end user. In case of zero inventory, the trader regulates the material
flow only after receiving from the manufacturer. Inventory can be of standard/fixed size or
customized size. Standard size is generally meantfor traders whereas clientsare provided with
customized inventory, suiting their particular demand/s. Traders usually order small amounts,
whereas clients purchase in bulk. Direct transaction takes place between the company and the
client. Transaction can be in the form of credit or cash basis. Clients of Jindal Saw Ltd. are
domestic as well as international. Domestic clients include companies such as Bharat Petroleum,
Indian Oil, ONGC, Reliance Petroleum, Reliance Industries, Cairn, etc. International clients
include GASCO,
PEDEC, PETROCHINA, PETRONAS, Saipem, etc. The company also uses 3rdparty
logistics. Transportation cost depends on the contract made between the parties.

The diagram below shows a direct distribution. There are more number of transactions taking
place in a direct distribution which also leads to increase in cost& time. Moreover, it does not offer
a customized solution.
 Jindal SAW Ltd

In case of indirect distribution, through traders, there is less number of transactions taking place
which also results in decrease in cost and time. If the trader acts as an assembler, it can offer
customized solution to its end-user which is not possible in
case of direct distribution.

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 Jindal SAW Ltd

6. Product range

Large Diameter Pipes (SAW pipes)

Ductile iron pipes
Seamless tubes

Large Diameter Pipes (SAW pipes)

SAW pipes are used primarily in the oil & gas sectors and accordingly the prospects depend
on the pipeline projects in India and abroad. New gas finds from RIL at Krishna Godavari Basin,
Cairn Energy at Rajasthan and ONGC would create a huge demand for transportation of these to
plant locations. Major investments are planned for distribution and transportation of gas & oil
by oil & gas marketing companies in India. Major players who would benefit from such plans
would include JSL, Welspun-Gujarat, Man Industries and PSL Ltd. The industry is raw
material intensive, with raw material accounting for 65-70% of the total income.The major raw
material used for manufacture of SAW pipes are steel plates which are sourced locally and are also
imported in order to avail of duty concessions available from export of SAW pipes. It
constitutes of HSAW and LSAW pipes.The size range of the LSAW pipes varies between
16 inches - 56 inches for outer diameter and up to
50.8 mm of wall thickness. For HSAW pipes it varies between 18 inches - 100 inches for outer
diameter and wall thickness of up to 25.4 mm. The combined installed large diameter pipe
manufacturing capacity of these facilities is 1,650,000 MT per annum.

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 Jindal SAW Ltd

Ductile iron pipes

DI pipe find application in water transportation infrastructure and sanitation projects. Owing
to its superior characteristics with respect to tensile strength, ductility, impact resistance, longer
life, etc DI pipe replaced cast iron pipe in developed countries in the field of water supply and
sanitation and a similar trend is being observed in India. DI pipe is being preferred for new projects
due to its superior performance and negligible price difference. The main customers for DI pipes
are PWDs ( public works department) of State governments, municipal bodies, companies
implementing irrigation projects andmajor contractors. Currently, the major suppliers of DI pipes
are JSL and Electro steel Castings Ltd. Port based facility of Ductile Iron pipes located on Western
coast of India. For the production of DI pipes they have state of the art facility with latest
technology. The installed capacity is of 300,000 MT per annum with latest linings /coatings
facilities conforming to National/International standards.

Seamless tubes

Seamless tubes are used in the oil related as well as non oil related industries. In oil and gas sectors
they are used in applications such as line pipes, casing pipe production tubing and drill pipes
in oil refineries, petrochemical plants. In non oil sector, seamless tubes are used for various
mechanical, structural, chemical and automobile applications. Demand of seamless tubes is
mainly dependent on the oil and gas exploration activities. With GOI focus on the self reliance in
oil and gas sector, exploration activities have increased many folds. With participation of private
players in exploration activities the demand of seamless tubes has also increased significantly.
 Jindal SAW Ltd

7. Competitors:

International Competitors

SeAH Steel Corporation

SeAh Steel Corporation (former Pusan steel pipe ind. Co. Ltd.) was founded in Pusan, Korea in
1960. SeAh is a leading manufacturer of steel pipes in Korea, gave birth to SeAh group. Presently
the production capacity is 876000 MT of steel pipes.

Presently, SeAH Steel has Pohang Factory and Changwon Factory having the largest
manufacturing capacity of pipes in Korea. In addition, our company has been able to produce and
supply the best quality of steel plates through continuous investment into cutting-edge
manufacturing facilities and via efforts of quality innovation since 1998.

Now, SeAH Steel with the solid foundation of accumulated reputation and trust, will surely become
a blue-chipcompany by continuous effort toward change and innovation based on eco-friendly
operation and administration with integrity.

Products:

Carbon, stainless steel pipes

Pre-coated metal, galvanized steel sheets

Highquality anti-corrosive oil transmission steel pipe

Chromium-Molybdenum boiler tubes

Production capacity: 876000 MT

 Jindal SAW Ltd

SUMITOMO
Sumitomo foundry began producing cast-steel in 1901 in present Konohana ward, Osaka city. One
hundred yearssince then, Sumitomo metals is producing steel pipes for oil and natural gas,
wheels and axels for railway cars, steel sheets for automobile bodies and other high grade steel
products. Aside from seamless pipes, the Company also produces wide-bore welded pipes and
electric-resistance welded pipes as well as other tubes and pipes and regards its operations in this
sector as one of its flagship businesses. Electric-resistance welded pipe sector has been
integrated with the operations of Sumitomo Pipe & Tube Co., Ltd., which commenced
operations in July 1999.
Sumitomo Metals has almost all kinds of steel pipe manufacturing facilities which produce a wide
range of welded steel pipe and tubes. These works are able to produce approximately three
million metric tons of steel pipe and tubes annually. The company also possesses facilities in
affiliated companies in Sakai, Kashima and Koga.

Production capacity: 1674000 MT

Nippon steel corporation

Nippon Steel Corporation was formed as Yawata Steel and Fuji Steel merged to form Nippon
Steel Corporation in 1970. Nippon Steel Corporation is the world's second-largest steel producer
in v olu m e and the second most profitable steel company in the world. Oita Works began
operation in 1971 in the capital city of Oita Prefecture, Japan. All operations of Nippon
Steel’s Urban Development Division were integrated in 2002 into Nippon Steel City Produce,
Inc. Thereafter, stainless steel business of Sumitomo Metal Industries and Nippon Steel
amalgamated to form Nippon Steel & Sumikin Stainless Steel Corporation. Nippon steel
production system begins with advanced metallurgy and clean BOF steel making process.
Among the company’s advanced production facilities, is the Kimitsu work UO pipe mill
which is capable of manufacturing large diameter pipes.

Jindal SAW Ltd

Products:

Highstrength line pipe

Hightoughness line pipe

Anti-Sour line pipe

OCTG pipe

Production capacity: 11000000 MT

NKK

NKK is a major Japanese industrial company and one of the country’s largest steelmakers having
Headquarters is in Tokyo.

Nippon Kōkan KK was founded in 1912 to make products using the steel from Japan’s f i r s t s

t eel mills. The comp an y’ s i nno vativ e super ior to conventional welded pipes and

Nippon Kōkan eventually also began producing raw steel from iron ore. Nippon Kōkan expanded

greatly in the decades after World War II, with large s t e e l m a k i n g c o m p l ex e s a t

Fukuyama (in Hiroshima prefecture) and at Kawasaki and Yokohama (the Keihin Steel Works,
near Tokyo). In the late 1970s the company expanded its Keihin complex by building an

ultramodern steelworks on man-made Ogi Island in Tokyo Bay. The NKK Corporation is the

second largest steelmaker in Japan (after the Nippon Steel Corporation).

Production capacity: 1120000 MT

 Jindal SAW Ltd

Domestic Competitors

Welspun

Incorporated in 1995, Welspun Gujarat Stahl Rohren Ltd (WGSR) is a part of the well diversified
Welspun Group. The company is a leading manufacturer of submerged arc welded (SAW)
pipes, mainly catering to the Oil and Gas exploration companies for transporting their products.
Currently it has the capacity of producing pipes of total length of 1000 km per annum. With the
demand for the SAW pipes industry expected to be robust in the coming years, the company has
chalked out an expansion plan for increasing the existing capacity and also develops facilities for
the manufacture of ERW pipes.
WGSR is one of the leading manufacturers of SAW pipes in India, mainly catering to the Oil and
Gas exploration companies. WGSR caters to the global requirement of high grade Submerged Arc
Welded pipes both Spiral and Longitudinal. The company has technology support from
Mannesmann Demag, Germany; an API approved pipe maker and the Capello Group, Italy. The
company’s plant is located on the Western Coast of India Near Dahej in the state of Gujarat. The
location is ideal in terms of proximity to the National Highway and Seaports like Dahej, Kandla,
Mumbai and Mundra.

Production capacity: 1500000 MT

 Jindal SAW Ltd

Man Industries

The MAN GROUP established in 1970, has diversified business interests in India, USA, UK and
UAE, having present market capitalization is above USD 300 million.

Man Group consists of following major companies:

Man Industries (India) Ltd.

MAN Aluminum Limited.
Man Infra projects Ltd.
Man USA Inc.

The LSAW Line Pipes are manufactured in strict conformance to the general and customized
specifications of c l i e n t s of\ various sectors such as Oil, Gas, Petrochemicals, Fertilizers and
Dredging.
The company’s SSAW Line Pipe Facility at Anjar comprise of 2 (Two) Production Lines and is
equipped with all NDT and laboratory facilities to cater to the requirements of its world-wide
clientele of high pressure/critical application segment.

Production capacity: 1175000 MT

 Jindal SAW Ltd

8. Competitive Advantage

— U-O-E & J-C-O forming processes

This is a special type of process of forming the steel pipes which is only followed by
JSL. No other company follows this process. This is a method how the pipes are
formed, which give the company an advantage over its competitors.

— Pricing

JSL is believed in giving Value pricing to its customers. Prices for pipes are lowest when
compared to its competitors, where as the products are of very good standards. It is
considered a value for money.

— Location advantage

Location has a very prominent role in pricing. Manufacturing plant of JSL is located in
Mundra in Gujarath which is close to the port. This gives easy access for shipping of
material to customers.

— Quality Standards

JSL believes in keeping good quality standards. It follows ISO 9001, ISO
14001, ISO 18001 etc which are very high quality standards and
internationally recognized.

These are few factors which give JSL a competitive edge over other

competitors.

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 Jindal SAW Ltd

9. References

1. www.google.com
2. www.wikipedia.com
3. www.jindalsaw.com
4. www.scribd.com

5. www.jindal.com

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