PROJECT REPORT on [MARKETING STRATEGIES OF FIBROPLAST MARINE PVT. LTD.

Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General

BBA V Semester (E)(A) Batch 2010-2013

Submitted to:

Submitted by:

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI

ACKNOWLEDGMENT
I Hemant Dhar Dwivedi, sincerely thankful to all those people who have been giving me any kind of assistance in the making of this project report.

My deepest thanks to Assistant professor, the Guide of the project for guiding and correcting various documents of mine with attention and care. He has taken pain to go through the project and make necessary correction as and when needed.

I express my thanks to the Director Sir of Jagannath International Management School, for extending his support.

I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.

Last of all but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete.

DECLARATION

I, being a student of BBA fifth semester of JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL hereby declares that the project report under title MARKETING STRATEGIES OF FIBROPLAST MARINE PVT. LTD. is my own work, it is the analysis of the big scale sector of production of boating industry. This project involves the big scale services involved in production sector and various levels and aspects of the organization. The survey was conducted so as to analyse the big scale sector prevailing in the current industry and the improvement that can be made in the organization for improving companys strategy. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention.

Thank You

CONTENT

Description Acknowledgement Content Objectives of the study Executive summary Introduction of the topic Company Profile Research Methodology -Type of research methodology -Data collection method - Method of collection Limitations Analysis and Findings of the study -analysis of supply side -analysis of local boat industry -export import analysis

Page No. 2 4 6 7 11 33 40

45 46

SWOT Analysis Limitations of the Study Conclusions and Recommendations Bibliography

63 67 68 70

PROJECT COMPLETION CERTIFICATE

This is to certify that the Project Work is a bonafide work of carried out in partial fulfillment for the award of degree of BBA(G) of Jagannath International Management School under my guidance. This project work is original and not submitted earlier for the award of any degree / diploma or associate ship of any other University / Institution.

Signature of the Guide Name and Official Address of the Guide

Place : Date :

OBJECTIVES OF THE STUDY

Every organization has to achieve its organizational goals. For this it is very essential for an organization to know about the view of management and their employees ability to work in the organization. The objectives of the study is as under: To know the concept of management. To understand the extent to which manage ment theory matches with actual practices observed. To enhance or improve the marketing effort in the organization. To improve the performance level of the employee in the organization. To develop a terminal version of the organization. To improve the morale in the various divisions of the management. Role and significance of marketing management in business. The strategic management needed to enhancing marketing skills. To study the market of boat manufacturing Industries on big scale production sector.

EXECUTIVE SUMMARY
Overview
The overall situation of the boat industry in India is improving, and can be summarized by three key characteristics: Supply driven: the supply side is still pushing the market Relatively weak demand: still limited numbers of Indians are buying boats compared to the number of potential customers (wealthy individuals) Improving regulatory environment and government support: The first comprehensive regulation on boat operations, registration, licensing, and sailing was enacted in January 2009; prior to this, there were no uniform or comprehensive regulations. Both the central and local governments have been encouraging the development of the boating industry, in response to the global economic downturn and to promote tourism.

Summary of key developments since the last edition (4th Edition - April 2010)
Since April 2010, two key factors are still expected to have short-term and long-term impacts on the market the global worldwide economic downturn as well as recovery, and the continued development of boating industry regulations.

On the supply side, domestic production continues to improve and an increasing number of Indian boat manufacturers are exhibiting at international boat shows.

Exports of boat, Yamaha motors and pleasure vessels declined 23% from INR 220 million in 2008 to INR 170 million in 2009, but rebounded 20% reaching INR 204 million in 2010 in part due to the global economy recovering from the downturn in 2008 and 2009.

On the demand side, interest in boating continues to grow, and while the estimated number of High Net Worth Individuals (HNWIs) in India grew 31% from 2008 to 2009, the aggregate wealth of the top 1,000 HNWIs continued the uptrend with 26% year-on-year growth.

It is estimated that the number of HNWIs in India now exceeds 500 thousand individuals.

Additionally, there is significant growth in the number of Billionaires in India, with 115 in 2010, a growth of 80% over 2009.

However, the number of Indians buying boats remains low relative to the number of HNWIs, with only around 0.3% of Indians HNWIs owning boats.

Imports fell 23% from US$ 50 million in 2008 to INR 39 million in 2009; however, in 2010 imports jumped 134% reaching INR 91 million.

Further advancements have been made in terms of regulations for the boating industry.

The Guidelines on the Administration of Safety of Boats (Guidelines) were issued in August 2010, which liberalize boat registration and simplifies procedures of entry and exit of overseas boats.

Key changes brought about by the Guidelines include: Widens limits of proof file for import and export inspection, enrollment and registration of boats. Simplifies examination and approval procedures of entry and exit of boats.

The global economic crisis affected the boat industry worldwide; however, since the world economy began to recover, both domestic as well as export demand has been increasing Private Indian enterprises have experienced a large rebound in export demand, with the number of boats exported growing 70% year on year and export value increasing 51% year on year from 2009-2010. In addition, this segment is experiencing an enterprise-wide strategic change as a series of enterprises like Fibroplast Marine Pvt. Ltd. are striving to consolidate domestic client base and enter overseas boat market by revamping the product lines, purchasing overseas boat assets and introducing overseas talent resources.

Doing market research in India and our methodology

Conducting market research in India is different and significantly more challenging than it is in developed countries because of 1) the size and diversity of the country; 2) lack of fully reliable centralized/official information databases; 3) the change is constant and extremely rapid - the whole Indian economic system is far from being in equilibrium, therefore a solid market research work must be based on multiple resources and activities.

Our general methodology leverage a combination of resources/activities such as: All relevant background information (existing available information, etc.) Significant secondary research from proprietary databases to access to associations or magazines, etc. Primary research, which include access to external business network, interviews with experts and key insiders, possible visits to trade show or selected companies, etc. Collective knowledge/sector expertise/market research expertise with over 300 consulting projects executed in and outside India.

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INTRODUCTION OF THE TOPIC

As products and brands continue to proliferate, segmenting a market is more important than ever. Dividing a large group of relatively heterogeneous consumers into a set of smaller, more homogeneous segments makes perfect marketing sense. Employing the right segmentation analysis can impact both product development and communication strategy efforts. Market Segmentation analysis should properly be viewed as a solution. The most important question to be addressed early in the research process is, How do you plan to use the segments? Having a clear understanding of what end results are required, and how these results will be used, will play critical roles in the ultimate success of any segmentation analysis. The three primary challenges to a successful segmentation:

Selecting the optimal variables for use in dividing a population into subgroups,

Identifying the best statistical algorithms for the segmentation Presenting the results in a usable fashion.

Creating the segmentation model means sorting through demographics, usage behaviors, needs, interests, attitudes and more. Identifying the proper statistical algorithm means choosing from the collection of statistical and heuristic methods for determining segments that have been developed in recent years. And, impactful reports means bringing the results to life with clear, meaningful segment definitions and an action plan for operationalizing the segmentation solution. In business-to-business markets the aim of market segmentation is to arrive at clusters of like-minded companies to enable the marketing/sales program to focus on the subset of prospects that are "most likely" to purchase the offering. Strong pressure exists to use segmentation in business-to-business markets to 11

win a competitive advantage because often little differentiates one product from another. Segmentation therefore links strongly with a strategy to achieve a sustainable differentiated position. Fibro Plast can help segment a clients market and so enable an effective marketing strategy, leading to competitive advantage in the marketplace. We show our clients how to:

Differentiate products/services in line with their customers Improve their competitive positioning Shape their product offering and pricing strategy to fit the markets with most potential

Provide focus on their customers so they can:

o o

Concentrate on providing profitable products or services Target marketing and selling efforts

Competitive Market Analysis

Competitive assessment allows organizations to identify the competitors in their market and how they can compete against them. The following points are important while performing a competitive assessment:

Identifying similar products/services in the market that are direct competitors to a clients product/service.

Comparing the product/service to competitors' products/services (features, service, quality, price, distribution, brand).

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Describing the companies that produce these products/services.

Describing the concentration within the market (such as large number of small players or small number of large players).

Describing the current competitive intensity within the market (cutthroat competition or live and let-live).

Describing the ease of entry of competitors into this market (can competitors easily enter the market and drive prices down).

Describing how clients will compete against these competitors and their products (low cost, niche market, product differentiation)

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Product and Services

Work Boat Fibroplast has been a leader in manufacturing FRP boats for the Indian defence / paramilitary / disaster mitigation / port authorities over the last 30 years. Our range starts from 4mtr upto 21 mtrs, with world class hull designs performing to the highest standards in the most adverse conditions. All our boats are made under classification.

White Water Raft Boat White water boat is yet another product of our rafting inflatable series. They can withstand in any condition be it high tides, rafting in between big rocks with very high speed of water or what so ever types of conditions.We manufacture a big range of products that includes RIB collars, inflatable bridges, inflatable tents etc. Safety is an uttermost responsibility of ours so our technicians keep even a 14

minute of the details of our range of products. Our boats come with FRP/Aluminium/ Roll up types floor boards etc. and also as per the requirements of our customers.

Fiberglass Boat We offer our exclusive range of fiberglass motor boats & launchers, which is engineered to perfection and work well under all circumstances. Our motor boats are designed to serve purposes in various applications and usage such as; patrolling, rescuing, work and cruising. Given below are different models, sizes, shapes & specifications of motor boats that are available with us at a cost effective prices. We offer them in following category: * 9.2M Survey Motor Boat * 11M Work Boat * 7.1M Long FRP Boat * 5.5M Long FRP Boat

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Rigid Inflatable Rescue Boat Fibroplast is a leader in manufacturing Rigid Inflatable Boats, having the latest designs and hulls to take on any conditions. We are the only boat builders in Indian making RIBs with both inflatable and hard foam collars. Our range starts from 4mtr up to 20 mtrs. All the boats are made under classification.

Rescue or Relief Boat We are the only firm in the country that make interlocked aluminium boats for various govt. as well as private users.This range of relief boats are provided with all world class facilities that are ready to work in kind of harsh or so conditions. 16

Aluminium is our preferred material for manufacturing of boats as aluminium boats being light in weight and can easily be repaired and customized as per requirements. These boats are first tested by our experts and only then they get ready to sell.Many rescue teams prefer to use these boats as they are best in their range of products.

Rescue Boat Fibroplast has been a leader in manufacturing FRP boats for the Indian defence / paramilitary / disaster mitigation / port authorities over the last 30 years. Our range starts from 4mtr upto 21 mtrs, with world class hull designs performing to the highest standards in the most adverse conditions. All our boats are made under classification.

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Police or Lake Security Boat Fibroplast has been a leader in manufacturing FRP boats for the Indian defence / paramilitary / disaster mitigation / port authorities over the last 30 years. Our range starts from 4mtr upto 21 mtrs, with world class hull designs performing to the highest standards in the most adverse conditions. All our boats are made under classification. These Police or Lake Security Boats are manufactured from the premium grade materials and are of high quality. These Police or Lake Security Boats moves in a faster pace than the normal ones. These can be availed in very reasonable rates.

Pilot Boat 18

Fibroplast has been a leader in manufacturing FRP boats for the Indian defence / paramilitary / disaster mitigation / port authorities over the last 30 years. Our range starts from 4mtr upto 21 mtrs, with world class hull designs performing to the highest standards in the most adverse conditions. All our boats are made under classification.

Petrol Craft Boat We are pioneer in rigid inflatable boats, we manufacture latest designs and hulls that are ready to bear any condition they are put in through. we manufacture boats that come in both inflatable and foam collars. Safety has been an uttermost concern of ours so we provide all safety features in our boats. Sizes of these boats range from 4 mtrs and may go up to about 20 mtrs. All boats are made under classification.

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Petrol Boat Fibroplast has been a leader in manufacturing FRP boats for the Indian defence / paramilitary / disaster mitigation / port authorities over the last 30 years. Our range starts from 4mtr upto 21 mtrs, with world class hull designs performing to the highest standards in the most adverse conditions. All our boats are made under classification. The Petrol Boats are used widely and are applauded for its quality and are available in different sizes. The Petrol Boats run with the help of petrols and runs in faster pace. These are available at cost effective rates.

Petrol Boat

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Fibroplast is the only firm in the country making interlocked aluminum boats for various govt. and private users. Our boats are performing under the most stringent conditions. Our aluminum boats are lightweight and easy to repair and can be customized to any given requirement and also certified under class.

Patrolling Boat Patrolling Boats yet another range of our inflatable boat technology. These boats are used for various patrolling operations and preferred choice for coastal areas.These Patrolling boats come in durable range that offer it long life and safety as well. Our technicians work really hard to hand over a product to our customer which is full of safety and can bear even the toughest of the situations. These patrolling boats are river-tested and are mostly used by coast guards. These boats come with a fuel efficient engine that let it go through a longer distance.

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Passenger Boat Fibroplast has been a leader in manufacturing FRP boats for the Indian defence / paramilitary / disaster mitigation / port authorities over the last 30 years. The Passenger Boat are widely used and are praised for its high performance and long durability. Our range starts from 4mtr upto 21 mtrs, with world class hull designs performing to the highest standards in the most adverse conditions. All our boats are made under classification. The Passenger Boats are manufactured using the best grade raw materials which we procure from the authentic vendors of the market. These Passenger Boats are priced as per the market rates. Our boats can also be customised in terms of sizes as per the requirements of our clients.

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Multipurpose Boat Fibroplast is the only firm in the country making interlocked aluminum boats for various govt. and private users. Our boats are performing under the most stringent conditions. Our aluminum boats are lightweight and easy to repair and can be customized to any given requirement and also certified under class. As the Multipurpose Boats are made from the pure grade aluminium these are sturdy and are corrosion free. Our range of boats are widely demanded due to its long performing life and smooth finish.

Military Boat

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Again we are the leader in Inflatable boat technology in India. We have the most durable and times tested inflatable boats performing in the worst possible conditions. We are also manufacturing RIB collars, inflatable bridges, Inflatable tents, white water rafts etc. Our boats come with FRP / Aluminium ./ Roll up types floorboards, as per customer requirements.

Leisure Boat Fibroplast is the only firm in the country making interlocked aluminum boats for various govt. and private users. Our boats are performing under the most stringent conditions. Our aluminum boats are lightweight and easy to repair and can be customised to any given requirement and also certified under class. The Leisure Boat are manufactured by us from the optimum quality raw materials high raw materials which are procured from the authentic vendors of the market. The wide range of Leisure Boats are available in standards and can also be customised as per the requirements of our clients.

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Interception Boat Again we are the leader in Inflatable boat technology in India. We have the most durable and times tested inflatable boats performing in the worst possible conditions. We are also manufacturing RIB collars, inflatable bridges, Inflatable tents, white water rafts etc. Our boats come with FRP / Aluminium ./ Roll up types floorboards, as per customer requirements. The Interceptors are widely used and are appreciated for its quality and smooth finishings. These Interceptors are manufactured using the premium materials which are sourced from the well known vendors of the market. The Interceptors are available at cost effective rates.

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Inland Water Boat Fibroplast is a leader in manufacturing Rigid Inflatable Boats, having the latest designs and hulls to take on any conditions. We are the only boat builders in Indian making RIBs with both inflatable and hard foam collars. Our range starts from 4mtr up to 20 mtrs. All the boats are made under classification. The Inland Water Boats are manufactured using the best grade raw materials which are procured from the authentic vendors of the market. These Inland Water Boats are available at market leading rates.

Inflatable Leisure Boat Again we are the leader in Inflatable boat technology in India. We have the most durable and times tested inflatable boats performing in the worst possible conditions. We are also manufacturing RIB collars, inflatable bridges, Inflatable tents, white water rafts etc. Our boats come with FRP / Aluminum ./ Roll up types floorboards, as per customer requirements.

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Inflatable Crew Transfer Boat Fibroplast is a leader in manufacturing Rigid Inflatable Boats, having the latest designs and hulls to take on any conditions. We are the only boat builders in Indian making RIBs with both inflatable and hard foam collars. Our range starts from 4mtr upto 20 mtrs. All the boats are made under classification. Our range of Crew Transfer Boat are widely accepted by our clients as these are long lasting with tremendous durability of the products. Our rage p\of Crew Transfer Boat are available in standard sizes and are extensively accepted for its long lasting and smooth finishings.

Hard Foam Collar Rib Boat 27

Fibroplast is a leader in manufacturing Rigid Inflatable Boats, having the latest designs and hulls to take on any conditions. We are the only boat builders in Indian making RIBs with both inflatable and hard foam collars. Our range starts from 4mtr upto 20 mtrs. All the boats are made under classification. The Hard Foam Collar Rib Boats are dimensionally accurate and are durable in nature.

Harbour Petrol Boat We are delivering the best quality of Harbour Petrol Boats. As we are delivering these in quality, we are known as the leader in manufacturing Rigid Inflatable Boats. These are having the latest designs and hulls to take on any conditions. We are the only boat builders in Indian making RIBs with both inflatable and hard foam collars. Our range starts from 4mtr up to 20 mtrs. All the boats are made under classification. The Harbour Petrol Boats are among the top products which have a huge demand in the market.

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FRP Port Security Boats We are pioneer in manufacturing FRP boats. Our products are extensively used by Indian defence/ paramilitary/disaster management/port authorities etc. for the last 30 years.These port security vehicles come with huge safety features as our technical experts give their best to launch a product which can withstand in any harsh conditions. These boats are equipped with world class engines and safety features. We manufacture our products according to demands of our customers. Our port security boats start from a size of 4 mtrs. and they can go up to 21 mtrs. as per customer demands.

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Rigid Inflatable Boat Dynamic in shape and style is our exclusive range of lotus boats. These boats are engineered to perform with precision under all conditions, these high speed boats are available with us in different sizes, shapes and qualities. There are 3 distinct models available under this category, which are given below: * Lotus-420 * Lotus-400 * Lotus-470

Crew Transfer Boat Again we are the leader in Inflatable boat technology in India. We have the most durable and times tested inflatable boats performing in the worst possible conditions. We are also manufacturing RIB collars, inflatable bridges, Inflatable tents, white water rafts etc. Our boats come with FRP / Aluminium ./ Roll up types floorboards, as per customer requirements. Apart from the standards these Crew Transfers are widely acclaimed for high performance and the capability to hold large number of crews than the similar products that are available in the market. Our range of Crew Transfers are available at cost effective rates.

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Inflatable Boat Available with us are our high speed Inflatable Boats, they are specifically designed to withstand all conditions. These boats remain stable even in open sea condition due to their V shaped design. Our high speed boats are made of fiberglass and are cost effective and durable in nature. We offer these boats in 3 different models, the specification for all the models are as follows: * 5.3M RIB * 4.7M RIB * 6.5 RIB

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Aluminum Crew Transfer Boat Fibroplast is the only firm in the country making interlocked aluminum boats for various govt. and private users. Our boats are performing under the most stringent conditions. Our aluminum boats are lightweight and easy to repair and can be customized to any given requirement and also certified under class.

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FIBRO PLAST MARINE PVT. LTD. Company Profile

Business Type Exporter , Manufacturer , Supplier, Authorized Distributor Primary Competitive Advantages

Robust infrastructure Research & development facility Quality monitoring unit Affordable priced products Timely delivery of consignment

No of Staff Year of Establishment No of Production Lines Production Type Product Range

250 1979 2 Semi Automatic

Fiber Glass Boat Rigid Inflatable Boat Inflatable Boat Aluminium Boat Rescue/Relief Boat Fishing Boats KM Float Boats Inflatable Bridge Fast Petrol Boats Yamaha Outboard Motor

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An ISO 9001:2008 certified organization engaged in offering Boats, Fiber Glass, Rigid Inflatable Boat, Inflatable Boat, Aluminium Boat, Rescue/Relief Boat, Fishing Boats, KM Float Boats, Inflatable Bridge, Fast Petrol Boats, Fast Interceptor Crafts, etc. About Us An ISO 9001:2008 quality assured firm having great reputation and goodwill built over the last 30 Years, Fibro Plast Marine Pvt. Ltd. was commenced in 1979. Our company is known among the most specialized manufacturers and exporters of different kinds of Boats including Fiber Glass. We offer Fiber Glass, Rigid Inflatable Boat, Inflatable Boat, Aluminium Boat, Rescue/Relief Boat, Fishing Boats, KM Float Boats, Inflatable Bridge, Fast Petrol Boats, Fast Interceptor Crafts, etc. We are an authorized distributor of Yamaha Outboard Motor in India. Our company is the only private sector boat manufacturer in India, which has an in-house ISO 9001:2008 certified design section, boasting of over 800 in-house designs. Our European trained staff and dedicated workforce help us showcase a perfect blend of youth and experience by offering an unmatched quality products. We take privilege in saying that our products and production facilities have been approved by Lloyds Register of Shipping and Indian Register of Shipping. Moreover, our company has been certified as an A - grade supplier for boats & marine equipment in the country by Central Quality Assurance Establishment (C.Q.A.E.), Govt. of India. Our company is acknowledged as the only boat manufacturer in India, which has been certified by Dunn & Bradstreet as an International defense boats / equipment supplier. Our company has association with the following:

Member of the CII. Member of the India Boating Forum , organized by FICCI. 34

Our Chairman, Mr. H.C. Narula, is an honorary technical member of the Bureau of Indian Standards (B.I.S.) for boats. He is responsible for making/updating Indian standards for boats and marine equipment.

Enlisted member with NSIC.

Our Products
We design and develop a comprehensive range of highly durable and sturdy boats that are chosen by numerous customers on priority basis. The boats and fiber glass manufactured by us are of international standard quality. They are prepared under the strict vigilance of highly qualified professionals who have spent a longer period of time in this business domain. Our team members are well versed with the latest manufacturing techniques. With their help, we introduce the following types of products to our esteemed customers:

Fiber Glass Boat Rigid Inflatable Boat Inflatable Boat Aluminium Boat Rescue/Relief Boat Fishing Boats KM Float Boats Inflatable Bridge Fast Petrol Boats Fast Interceptor Crafts Yamaha Outboard Motor

Our Achievements
Over the past years, we have witnessed various successful track records that are adequate to prove our expertise in this business domain. In the year 2005, we designed and developed the only roll up inflatable boat which can be airdropped 35

for specials operations and rescue. Moreover, Our company forayed into design and development of Boat assault Pneumatic lightweight for the army and successfully delivered 100 nos. Later on, there have many achievements of our organization year wise that are as follows:

2005

Supplied more than 700 seagoing fishing boats to Tsunami affected fishermen in south India and Port blair as a social obligation working with various NGOs.

2006

Manufactured Indias first and only seagoing hard foam fender RIB under IRS certification.

The only boat manufacturer to have IRS / Defence approved in-house manufacturing Facilities for inflatable and Hard foam collars.

2007

Developed & commissioned 9.5 seagoing port patrol boat for the coastal patrolling as per IRS HSC classification a first in the country.

Supplied newly developed Aluminum rescue boats, manufactured in India for the first time.

Designed and manufactured two 9.5 mtrs enclosed cabin 35 Knot plus FRP patrol boat with inboard diesel engines with twin Stern drive with IRS classification.

Successfully executed the single biggest order in Indian boat building history for 584 nos Inflatable boats with OBMs for BSF within six months, all boats with IRS approval.

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Given the order to construct 48 nos 13.8 mtr and 28 nos. 9.5mtr fast interceptor crafts at GRSE, Kolkata Successfully completed order for 28 nos 9.5 Mtr fast interceptor crafts ahead of the required delivery schedule.

2010

Successfully completed largest single order for more than 150 nos. hard closed cell foam RIB collars for GRSE and GSL, ahead of required delivery time.

Delivered successfully three nos. of Indias first set of fully IRS class approved fast seagoing 9.5 mtrs. FRP crafts.

Our Recognitions
Our company has received recognition from several authorized authorities over the past years. In the April month of 1988, we were recognized by the Ministry of Science and Technology, Govt. of India as a successful technical entrepreneur in this business and who can act as a role model for other technically educated youth. In addition, we received the following recognitions from many other reputed authorities:

Enlisted in 1991 as one of India's 100 most successful Small Scale Enterprises, in the study sponsored by International Development Research Centre, South Asia Regional Office, Delhi.

Our Chairman, Mr. H.C. Narula, is an honorary technical member of the Bureau of Indian Standards (B.I.S.) for boats, responsible for making/updating Indian standards for boats and marine equipment.

Only Grade A certified boat builder in the country, as approved by CQAE (Central quality assurance establishment)

Largest supplier of boats and engines for the Defence / paramilitary and disaster management authorities in the country.

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Only ISO certified boat builder for all its functions including design, manufacturing, delivery and maintenance.

Only boat builder in the country certified by Dunn & Bradstreet as an International Defence supplier.

Enlisted in 1991 as one of India's 100 most successful Small Scale Enterprises, in the study sponsored by International Development Research Center, South Asia Regional Office, Delhi.

Quality Assurance
Since the foundation of organization, we have been serious for the quality maintenance in our products. This is because we strongly believe in cent percent customer satisfaction, which can be achieved by offering them the best quality products. Every product is designed and developed using highly graded raw materials that are procured from world's well known vendors. To further determine the quality level, we have a separate team of quality analysts. The team conducts all necessary tests for fine-finished products before final dispatch of consignment. Our company has received the following approvals that clearly proves our honesty towards performing the best business practices and satisfy customers in a each possible manner:

ISO 9001-2008 Dunn & Bradstreet certified defence supplier Lloyds Register of Shipping (LRS) Indian Register of shipping (IRS), Controllerate of Quality Assurance (Engg. Eqpt Indian Army) Directorate of Quality Assurance (Navy). International Canoeing Federation, U.K. Indian River Runners association.

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Robust Infrastructure
Our company is based on robust infrastructure, which is backed by international standard machineries and equipment. They are of reputed brands and reliable enough to perform the manufacturing practices with confidence. Our installed machines and equipment are easy to operate and have high production capacity. In order to keep them well performing and enhance their smooth functioning, we pay special attention to their maintenance and upgradation on regular basis. Following are some of the machines and equipment, we have installed:

Cutting machine Drill machine Shaping machine Finishing machine.

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RESEARCH METHODOLOGY

Achieving accuracy in any research requires a deep study regarding the subject. The prime objective of the project is to compare Fibro Plast Marine Pvt. Ltd. with the existing competitors in the market and the impact of global boat manufacturing industries on Fibro Plast.

The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

Primary data was collected using the following techniques

Survey Report Method;

Direct Interview Method ; and

Observation Method

The main tool used was, the survey report method. Further direct interview method, where a face-to-face formal interview was taken with the companies employees . Lastly observation method has been continuous with the observation method, as one continuously observes the surrounding environment he works in.

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Type of Research Methodology

EXPLORATORY:
Type of Research carried out was exploratory in nature; the objectives of such research is to determine the approximate area where the drawback of the company lies and also to identify the course of action to solve it. For this purpose the information proved useful for giving right suggestion to the company.

DATA COLLECTION METHOD

THERE ARE TWO TYPES OF METHOD OF DATA COLLECTION: PRIMARY DATA SECONDARY DATA

Primary data was collected using the following techniques

Survey Report Method;

Direct Interview Method; and

Observation Method

The main tool used was, the survey report method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation

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method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in.

DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE.

PRIMARY DATA: Primary data is that which is the collected for the first time and thus happen to be originated in character.

SURVEY REPORT: In this study we prepared a survey report. It includes

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strategies consists of various segments related to production and marketing or selling of boats.

SECONDARY DATA: Secondary data refer to the data that has been already collected. The secondary data, which has been used to carry out this study, are as follows: Books, journals, magazines, newspapers Industry reports Companys internet site Some other relevant study material and websites..

SAMPLE UNIT:- Delhi & NCR The research process was done by interacting with number of boat manufacturing industries during the activities performed, which included, markets positioning, market segmentation, marketing and selling strategies, etc. Sample design consists of random sampling. SAMPLE SIZE:- 50 people (employees, workers, executives and various industries etc).

METHOD OF COLLECTION:Field procedure for gathering primary data included observation and interview schedule in which the survey report were prepared by the interviewer.

Personal interviews through self administered survey was done to collect the data, market research was undertaken, that was accomplish by performing various activities designed.

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RESEARCH INSTRUMENT:- SURVEY REPORT

THE SURVEY REPORT WAS FORMULATED BY KEEP IN MIND THE FOLLOWING POINTS:-

Giving the respondents clear comprehension of the question. Including the respondents to co-operate. Giving instructions as to what is needed. Identifying the needs to be taken.

Sources of secondary data:Used to obtain information on, Fibro Plast Marine Pvt. Ltd. history, current issues, policies, procedures, etc., wherever required. Internet Magazines Newspapers Journals India Boat Show Programme Marine Report National Boat Exhibition

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LIMITATIONS

Limited demand and supply : still a limited number of Indians currently buying boats, although interest is increasing or limited no of suppliers also.

Differences in customer preferences: potential Indian boat owners have different preferences and requirements for the boat (e.g. boats used as entertainment venues, with card tables and disaster purposes etc.).

Impact of the global economic crisis: Many export-oriented manufacturers turned to the domestic market because of lower overseas demand, resulting in increasing competition.

High effective taxes: total effective taxes applicable for an imported boat is about 40% (import tariffs, VAT, and consumption tax), presenting a significant hindrance to potential market growth.

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ANALYSIS AND FINDINGS OF THE STUDY

Analysis of supply side
The Indian Boat market has been growing since 2005, and it is expected to reach 67.7 billion rupees by 2020.

Based on the expectation that boats will become part of the lifestyle of Indias growing wealthy class, provincial governments, property developers and boat builders are investing heavily in the industry.

India currently has around 150 pleasure boat manufacturers, including 88 boat producers 30 of which have production value of over 10 million rupees.

Domestic boat builders are mainly involved in export; small yards are extremely price competitive, resulting in a limited market for imported small boats under 30 (9m).

Domestic manufacturers have been improving in technology and production techniques, and developing and designing their own brands.

Some capable domestic players have cooperated with foreign players for production ,e.g. Fibro Plast has cooperated with DHS in building the multi purpose boats and pilot boats of US in different models of boats.

As domestic boat manufacturing grows, so do opportunities for manufacturers producing components (e.g. on-board instruments, engines, navigation systems etc.)

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The domestic market for high-end boats relies mainly on imports, most of which are series production models ranging from 18 to 70 (6 23m) in size.

More and more mega boats are on display at shows such as Craft boats held each year in Kolkata, which will help to highlight and boost high-end expenditure.

Part of the reason for the lack of super boat imports lies in the previously unclear sailing regulations and limited infrastructure.

However, the strengthening support from the government and an improving regulatory system should help drive domestic demand and subsequently imports of super boats, e.g. government is considering simplifying boat purchasing procedure.

As the world economy and India continues to recover, the outlook for foreign players in 2011 is positive due to new government regulations and initiatives beneficial to the boat industry.

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Analysis of Local Boat Industry

India is already among the worlds top 30 boat builders for commercial vessels, and many of its commercial boatyards have the capacity and potential to build leisure boats.

However, only 88 of the 300 pleasure boat builders in India manufacture boats as part of their product offering; of these, few boatyards in India concentrate solely on boats due to the market demand and produce a variety of boats.

Large professional boat manufacturers are either foreigners or stateowned companies

Typically small and medium-sized domestic boatyards manufacture a variety of vessels, including speedboats, fishing trawlers, and cruising vessels in addition to boats.

Most Indian manufacturers compete in the small, medium and large-sized leisure boat segment under 79 (< 24m) as building super boats larger than 79 (24m) requires very high-end finishes, which most Indian builders are not as competitive.

Boat production in India is concentrated mainly along the Eastern coast; Hubli river near Kolkata have the greatest concentration of boat manufacturers.

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The table below gives a comparison of the typical price range for boats organized by size and origin, and assuming reasonably luxurious fittings:

Boats made in India are generally 20 - 30% cheaper than those made in Europe and the US, due in large part to lower labour costs.

Domestic boats are gradually improving in quality and corresponding price, resulting in a shrinking price gap between domestically manufactured and imported boats.

With an upward trend in the size of boats, the demand for boats over 49 (15m) is increasing.

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Local manufacturers are extremely competitive in the small boat segment it is likely that opportunities for future manufacturing entrants will lie in the super boat segment, which currently only has a few manufacturers.

The cost and price advantage will also be more evident in the super yacht segment where most of the work is highly customized and labour intensive.

India as a relatively low-cost manufacturing base

Boat production is very labour-intensive relative to most other consumer products and mostly depends on labour cost and technical knowledge.

Especially at the high-end of the market (super boats), boats tend to be highly customized, specifically designed to address the needs of the buyer, making automation less viable.

With a relatively low-cost manufacturing base compared to developed countries, India offers several advantages for boat manufacturers located within India: Low-cost but relatively high-quality labour with a large and relatively young work force, labour in India is readily available; although wages are only about 20-30% of foreign rates, the cost for training needs to be considered. Workers able to work under pressure due to fierce job competition, labourers care more about their current work and are more willing to work extra hours.

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 Low cost of facilities cost of facility construction and rents are typically cheaper than that in foreign countries. Strong auxiliary industry capability India has a strong auxiliary industry capability, which attracts foreign investors in different areas from production materials to components & accessories.

Local component suppliers

Indias marine fittings and components manufacturing sector is well developed and many products are exported due to their relatively low cost.

Manufacturers of components initially started with low value-added items such as cleats and shackles but moved quickly up the value chain to engines, communication devices, air conditioners, radars etc.

Component players are concentrated in coastal regions and are mainly located in the same vicinity as boat producers, enabling them to better service their downstream clients.

Although many marine components are being manufactured in India, certain key boat components such as engines are still primarily imported (80%).

The key reason for this practice is that customers in foreign countries prefer key components in their exported boats (especially engines) to be of recognizable brands.

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With boat-building activity increasing in India, the demand for imported components is increasing correspondingly, bringing opportunities for foreign component suppliers.

Many foreign engine manufacturers have already set up production facility in India.

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IMPORT - EXPORT ANALYSIS

This section analyses imports and exports of Indias boating industry, with focus on foreign countrys position; it includes all types of marine vessels.

The import export analysis for boat & pleasure vessels is based on the following list of selected HS codes used to define the industry:

Overview
Exports and imports of boats and pleasure vessels have experienced double-digit growth since 2004, although they fell in 2009 as a result of the world economic crisis. In 2010 the total export value of Indias boats and pleasure vessels increased 20% to INR 204M from INR 170M in 2009; however this is still below the high of INR 220M in 2008.

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Import value jumped 134% to INR 91M from INR 39M in 2009, hitting historical peak.

The following chart shows the overall value of Indias imports and exports of boats and pleasure vessels from 2004 2010:

Most exports are still low value small and medium sized boats, rather than luxurious super boats.

Much of the exports come from foreign invested manufacturers, who are making use of India as a low-cost manufacturing base.

With INR 20.8 million in imports in 2010, top ranked countries for boat imports into India, accounting for about 23% of Indias total boat imports.

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Imports of boats and pleasure vessels into India

India imports of boats grew significantly from INR 39 million in 2009 to INR 91 million in 2010; an increase growth of 134% year-on-year, bringing the CAGR of imports from 2004-2010 to 42%.

In 2010, top ranked countries from which China imports boats and pleasure vessels accounting for 23% of Indias total boat and pleasure vessel imports (INR 20.8M).

In 2010, The top ranked countries from which China imports boats and pleasure vessels, largely due to the number of boats sold increasing from 29 in 2009 to 85 in 2010 and average sales price growing 123% in 2010 over 2009.

India imported around 2,175 boats and pleasure vessels from 33 countries in 2010, but the majority are relatively low value (worth less than INR 30,000).

The proportion of middle value boats and pleasure vessels (worth between INR 30,000 and INR 9,00,000) continued improving since 2008, accounting for 26% of the total boats and pleasure vessels imported in 2010.

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Imports of boats and pleasure vessels are broken up into four main categories as shown in the chart below:

The Other category (HS code 8903.900) includes speedboats, small yachts, inflatable boats, and other vessels.

For a market of Indias size, the imports of boats and pleasure vessels are still relatively low as a result of the following:

Limited amount of actual sales in India; Indian owners also prefer cheaper boats in the INR 125,000 625,000 price range.

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 Many wealthy Indian buy and use their boats in various states such as Mumbai, Kolkata etc., sales do not show up in Indias Customs statistics.

Many distributors have none or very few boats for show or sale in India keep boats in Mumbai. Not all boat imports may be classed in the Boats and Pleasure Vessels custom category (HS Code: 8903).

Foreign Countrys Position

Although foreign countries imports to India doubled from 2009 to 2010.

As indicated in the chart below, Fibro Plast imports from foreign countries grew to INR 20.8M, a 105% from 2009, hitting historical peak; total exports to foreign countries increased 51% to INR 8.5M:

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The overall number of vessels imported from foreign countries to India decreased from 26 in 2009 to 22 in 2010 (same as 2008); however the average value of the vessels were much higher (increased 142% year on year) reflecting an increasing demand for higher value vessels.

However, 16% of the import value from foreign countries came from 3 small-medium sized boats (HS Code: 8903.9200) with a combined value of INR 3.3M; INR 17.5M came from 19 small boats and other vessels (HS Code: 8903.9900).

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As shown in the table below, Motorboats and Other boats and pleasure vessels make up the majority of boats imported to India from foreign countries:

Exports of boats and pleasure vessels from India

In 2010, Indias exports of boats and pleasure vessels grew to INR 204.2M from INR 170.7M in 2009.

However, the 20% year-on-year growth is primarily the result of the increase in global demand in part due to the recovering worldwide economy; the CAGR of India exports from 2004-2010 is 29%.

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The majority of exports are still lower value small and medium boats, such as speedboats.

As the economy continues to recover from the economic crisis, international demand is expected to stabilize and is likely to grow in 2011.

The top 5 export destinations are Hong Kong, US, Australia, Netherlands and France.

In particular, Hong Kong replaced US as the number 1 country which imports boats and pleasure vessels from India ( Fibro Plast ) in 2010; total export value to Hong Kong reached INR 35M, a 97% increase from 2009. 60

Italy ranked 8th, with about INR 8.5 million worth of exports from India or about 4.1% of total India boat exports, up from INR 5.6 million and 3.4% respectively in 2009.

Most foreign-invested companies use India as a low-cost export manufacturing base.

Foreign-invested enterprises (JV or WFOE) accounted for 64% of total exports by value, as shown below:

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IMPORT DUTIES AND CONSUMPTION TAXES

The import duty for pleasure boats is between 8% - 10.5%, as shown in the

following table:

Boats are currently subject to a consumption tax of 10%.

A Value-added tax (VAT) is also payable on imports, which is calculated as follows: VAT Payable = VAT Rate x [Dutiable Value + Customs Duty + Consumption Tax]

Thus the effective tax rate for importing a boat is about 43% of total purchase price.

The Ministry of Commerce is drafting a motion to lower Indias tariffs imposed on luxury import goods in an effort to boost sales revenue of the countrys luxury market.

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SWOT ANALYSIS

STRENGTH Presence of established global brands. Market in a high growth phase.

Less traffic on water ways than road ways.

Less polluting and time efficient mode of commuting.

The industry has the potential to create employment as each boat on an

average gives employment to 10 people for maintaining and crewing.

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WEAKNESS

Absence of Marinas in India, resulting in severe shortage of proper docking facilities for Fibro Plast. Temporary pontoons made of plastic, does not go well with the luxury positioning of the industry.

High degree of government intervention in marine infrastructure development in India.

Limited technical expertise and infrastructure for boat servicing and maintenance.

High initial investment (including custom duty of about 35%) and maintenance cost of boats.

No specified rules and regulations for the pleasure boating industry.

Lack of clarity on regulatory responsibilities of central and state governments, relating to registration etc.

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OPPORTUNITIES Market growing market via fractional ownership options, time share, charter programs. With Marina coming up in Kochi and plans going on for Mumbai, huge opportunity lies in the industry.

Growing number of high net-worth individuals.

Pre owned boat market expected to flourish.

With more Boat Shows/ world sea races happening, India (Fibro Plast) is being recognized as a luxury boat market.

An ideal marina, like Dubai or Phuket, will bring a new mode of entertainment to the Fibro Plast industry.

If Government improves regulation structure, privatize marine infrastructure development, Fibro Plast could be a good stopover on the world sea route. This will in turn boost tourism industry and employments.

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THREATS

Slow pace of marine infrastructure development could adversely affect the growth of the industry.

With coastal erosion reported on sea shores near Mumbai and Goa, environmental authorities may create obstacles in future.

In a chicken and egg situation, private players find it a high risk task to build marinas without much demand for boats in market.

In absence of sheer volume, a significant low margin of 5-8% makes it a relatively unattractive market for new dealers to enter.

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Limitations of the study

No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations: Lack of proper information and experience due to short period of time. During the study, on many occasions the respondent groups gave us a cold shoulder. Some workers or executives refuse to cooperate with the queries. Some workers or executives gave biased or incomplete information regarding the study. Some employees did not answer all the questions or do not have time to answer.

Lack of time is the basic limitation in the project. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete production range, which was being studied.

Money played a vital factor in the whole project duration.

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CONCLUSIONS AND RECOMMENDATIONS

While there is still relatively limited demand for boats at present, there is significant momentum gathering, with the increasing popularity of boat shows, more marina projects and increasing attention from foreign players and government authorities.

Domestic demand is likely to pick up in the next decade; meanwhile, India is still an attractive low cost manufacturing base for boat manufacturers, with costs 20-30% lower than in developed nations.

Fibro Plast is already on the list of the top 100 builders of boats over 30m (nearly all for export).

Production quality has been and continues to be an issue, but standards are improving.

Nevertheless foreign companies approaching the India market should take into consideration that: The Indian market can offer great opportunities, but it is necessary to maintain a long-term vision; quick profits are unlikely time, money, perseverance, and effort are necessary The Indian market should be approached gradually, un-emotionally and with realistic expectations.

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 Applying the logic and mindset of the other country (foreign top ranked companies) will likely not work -gaining local knowledge of business environment and practices is crucial, including finding the right partners and/or service providers. Although Indias economy and global economy are gradually recovering, the impact of the economic crisis, especially on exports from India, should be closely watched in the next few years. India should increase their or Fibro Plast increase their foreign trade as well as export level.

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BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in details the following books magazines/ journals and websites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report.

Books: Classic Boats- Chris Smith and son Jay and Bernard Research Methodology- C.R. Kothari Producton and operation management- S A Chunawalla and R. Panneerselvam Magazines: Marine Report 2011 Marine Outlook 2020 Sea Shore (January 2004)

Websites: www.fibroplastmarine.com www.tradeindia.com www.exportersindia.com

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