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Analysis of Welding Equipment Market of Western India

Project Report submitted to Symbiosis Institute of Business Management, Bengaluru in partial
fulfilment of the course Summer Internship Program for the award of the degree of
Master of Business Administration

Submitted By

MUKUL ATTRI
PRN: 13020841084

Under the guidance of
Dr. Biranchi .N. Swar
Asst. Professor, SIBM Bangalore






SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT,
BENGALURU
95/1 & 95/2, Electronic City Phase-1, Hosur Road, Bengaluru 560100
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Certificate

This is to certify that Mr. Mukul Attri of MBA (2013-15 Batch) of Symbiosis
Institute of Business Management, Bengaluru has done the project entitled
Optimization of the property insurance under my guidance.


Signature of the faculty guide:
Name: Dr. Biranchi .N. Swar
Designation: Asst. Professor
Date: 17
th
June, 2014











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DECLARATION

I hereby declare that the project work submitted by me entitled Analysis of Welding
Equipment Market of Western India done during my Summer Internship Program (SIP) is
submitted as a partial fulfilment of the requirement of MBA program at Symbiosis Institute of
Business Management, Bengaluru.

Project Details:
Project Title: Analysis of Welding Equipment Market of Western India
Company: Praxair India Pvt Ltd.
Company guide name: V.Hariharan
Faculty guide: Dr. Biranchi .N. Swar

Place: Bengaluru Mukul Attri
Date: 15
th
July, 2014 PRN 13020841084

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Table of Contents

Acknowledgements ......................................................................................................................................... 5
Executive Summary ......................................................................................................................................... 6
Industry and Company Analysis ...................................................................................................................... 7
Introduction ..................................................................................................... Error! Bookmark not defined.
Project title: ..................................................................................................... Error! Bookmark not defined.
Objectives .................................................................................................... Error! Bookmark not defined.
Literature Review ............................................................................................. Error! Bookmark not defined.
Macro View ...................................................................................................... Error! Bookmark not defined.
Indian Economy............................................................................................ Error! Bookmark not defined.
Industry Analysis .............................................................................................. Error! Bookmark not defined.
Primary Field Research .................................................................................... Error! Bookmark not defined.
Fundamental Analysis ...................................................................................... Error! Bookmark not defined.
Company overview ...................................................................................... Error! Bookmark not defined.
Competitive Strengths ............................................................................. Error! Bookmark not defined.
Valuation: ......................................................................................................... Error! Bookmark not defined.
Discounted Cash Flow ................................................................................. Error! Bookmark not defined.
Peer Valuation .............................................................................................. Error! Bookmark not defined.
Conclusion ........................................................................................................ Error! Bookmark not defined.
Bibliography ..................................................................................................... Error! Bookmark not defined.




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Acknowledgements

I would like to thank Mr. Anuj Sharma, Chairman and Managing Director of Praxair India Pvt
Ltd. (PIPL) for giving me this opportunity to work in the Finance team of Praxair India Pvt Ltd.
I am indebted to Mr. Nishant Shah, Associate Vice President Hard Goods & Gases, for his
guidance in the field of Insurance. His influence has been paramount in my internship as an
insurance analyst.
Lastly, I would like to thank Mr. V. Hariharan, Asst. General Manager (Hard Goods) for his
continued support and guidance throughout the course of the internship.
I would thank Dr. Biranchi N. Swar for his continuous support and guidance.



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Executive Summary

The first few days were spent in understanding how Praxair India operates and what are the major
revenue sources and companys current market standing. Actual Project was executed in 4 phases,
the first phase involved secondary research for initial market analysis and competitor analysis,
this phase also included mapping of existing and potential customers in industrial areas of western
India. In the second phase a Questionnaire was designed in accordance with the information
required from the customers and also involved discussion with the team on the nature of
qualitative or secondary information that may be relevant. In the third phase primary data was
collected as per the questionnaire and it also involved generating sales leads in the unexplored
markets of Maharashtra, educating customers about Praxairs products, to record future purchase
or expansion plans, to collect key customer insights and to assist in distributor selection. In the
final phase data from the primary research through visits was combined with secondary data
collected to give detailed analysis about industry trends, product design requirements, Pricing
strategy, distribution strategy and positioning strategy to the respective departments


COMPANY NAME HERE

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Industry and Company Analysis

Company Analysis
Name of Company: Praxair India Pvt. Ltd.
Core Purpose:
To be the best performing industrial gases company in the world as determined by our
customers, employees, shareholders, suppliers and the communities in which we work.
Organization Structure:
The company is divided into various Business Heads. Below is the organization chart showing
various business heads.

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HR Details
The company employs more than 700 employees who include both corporate and onsite
employees. Various trainings are conducted from time to time to continuously improve the skills
of employees.
Product and Services
There are a few SBUs within this group. It has been illustrated diagrammatically below:




Healthcare

Hard goods
Sale of
equipments
Air
separation
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Business Segments:

Industrial Gases:

1. Atmospheric Gases:
Atmospheric gases are the highest volume products produces by Praxair. Using air as its raw
material, Praxair produces oxygen, nitrogen and argon through several air separation processes of
which cryogenic air separation is the most prevalent. As a pioneer in the industrial gases industry,
Praxair is a leader in developing a wide range of proprietary and patented applications & supply
systems technology. Praxair also led to the development of the non-cryogenic air separation
technologies for the production of industrial gases. These technologies include proprietary
vacuum pressure swing adsorption (VPSA) and membrane separation to produce gaseous oxygen,
nitrogen and other gases.

2. Process & Specialty Gases:
Process gases including carbon dioxide, hydrogen, carbon monoxide, helium, specialty gases and
acetylene are produced by methods other than air separation. Most carbon dioxide is purchased
from by-product sources like chemical plants, refineries, industrial processes and is recovered
from carbon dioxide wells. Carbon dioxide is processed in Praxairs plants to produce commercial
& food-grade carbon dioxide. Hydrogen and carbon monoxide are produced by either steam
methane reforming of natural gas or by purifying by-product sources obtained from the chemical
and petrochemical industries. Most of the helium sold by Praxair is produced from certain helium
rich natural gas streams in the United States with the additional supplies being acquired from
outside the United States. Acetylene can be produced from calcium carbide and water.


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3. Surface Technologies:
Praxair Surface Technologies is a leading worldwide supplier of coating services and thermal
spray consumables to customers in the aircraft, energy, printing, primary metals, petrochemicals,
textiles and other industries. Its coatings are used to provide wear resistance, corrosion protection,
thermal insulation, and many other surface-enhancing functions which serve to extend component
life, enable optimal performance, and reduce operating costs. It also manufactures a complete line
of electric arc, plasma and wire spray, and high velocity oxy-fuel (HVOF) equipment.

Through the use of protective surface coatings, they help customers to:

Improve environmental performance

Decrease energy consumption

Extend component life

Improve productivity

Minimize downtime

Reduce operating costs

Produce higher-quality products

Hard Goods:





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Customers
Praxair India serves to various industries which include Aerospace & Aircraft, Automotive &
Transportation Equipment, Chemicals, Diving, Electronics, Energy, Food & Beverage, Glass,
Healthcare, Laboratories, Metal Production, Oil & Gas, Pharmaceuticals & Biotechnology, Pulp
& Paper, Refining, Water & Wastewater Treatment, and Welding & Metal Fabrication.
Basic financial Analysis
Some of the basic financial analysis/ratios have been illustrated in a graphical format.

Source: Annual Report, MOFSL
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Source: Annual Report, MOFSL


Source: Annual Report, MOFSL

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Introduction

This project revolves around study of the welding equipment market concentrated in the western
region of India due to combined presence of manufacturing and automobile sector which are the
key consumers for this particular industry, first part of the project was to map the manufacturing
sector and automobile sector in the regions of Maharashtra, Gujrat, Madhya Pradesh etc. and
simultaneous study of welding products and technologies used in these industries. This entire
study is being done to support the hard goods division (Welding Equipment division) of Praxair
India ltd in terms of sales and pre sales activities.
Praxair India ltd. is Indias largest gas manufacturer and supplier, Recently Praxair has ventured
into welding equipment market which currently has a size of Rs.5600 cr and has shown a growth
rate of 17%.Welding Equipment market in India is highly fragmented where local players
comprise of 45% of the total market and organized players make the rest of it, ESAB India Ltd. is
the market leader and is followed by companies like Miller, Lincoln Electric, Ador Welding,
EWACS (L&T) etc. Praxair has recently launched its welding equipment under the brand name
PROSTAR and has around 1% market share.

PROPOSED GOALS:

To do a detailed Competitor analysis
To understand the functioning of welding industry and market
Primary Market Research through questionnaire technique
Initiate sales through new customer acquisition
Creation of customer database for welding equipment division
To establish the key customer retention pointers in the welding industry
To give feedback to product design division on the basis of customer interaction
To educate the current and potential customers about Praxairs products and their USPs


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