PROJECT PROPOSAL (MS-100)

TITLED
"TO STUDY THE CHALLENGES &
OPPORTUNITIES IN THE ELECTRICAL WIRE
& CABLE BUSINESS IN DELHI & NCR"
SUBMITTED BY:
NAME: MITHUN BHARDWAJ
ENROLMENT NO.: 08!"#$%$
STUDY CENTER NO.: 0"$"
REGIONAL CENTER NO.: 0"
SCHOOL O& MANAGEMENT STUDIES
INDIRA GANDHI NATIONAL OPEN
UNI'ERSITY MAIDAN GARHI(
NEW DELHI ) 1100#8
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RATIONAL &OR THE STUDY
Electrical wiring refers to insulated conductors used to carry electricity and
associated devices. Materials for wiring interior electrical systems in buildings vary
depending on:
Intended use and amount of power demand on the circuit.
Type of occupancy and size of the building.
National and local regulations.
Environment in which the wiring must operate.
iring systems in a single family home or duple! for e!ample" are simple" with
relatively low power re#uirements" infre#uent changes to the building structure and
layout" usually with dry" moderate temperature and non$corrosive environmental
conditions. In a light commercial environment" more fre#uent wiring changes can be
e!pected" large apparatus may be installed and special conditions of heat or moisture
may apply. %eavy industries have more demanding wiring re#uirements" such as
very large currents and higher voltages" fre#uent changes of e#uipment layout"
corrosive" or wet or e!plosive atmospheres.
The study will first list down the various products" specifically copper wires and
cables and their applications. Then I will strategically analyze the problems and
potential of wire and cable manufacturers in &elhi. 'inally I will identify the factors
that affect the buying behavior of people for ire and (ables.
)
WIRE & CABLE MAR*ET IN INDIA
ire and wire$based products surround us everywhere in our daily lives and fulfill
important functions $ be in the form of lightning conductors or crane cables" telecom
or electricity wires. They may be invisible to the human eye yet do their wor* in the
shape of clutch springs or concrete reinforcement. India+s rapid economic growth is
being built on a frame of wires and cables.
Electrical wires and cables mar*et is growing at a steady pace as the government is
investing heavily in infrastructure development. Increase in capacity of the e!isting
power plants and commissioning of the new ones have resulted in higher demand for
electric wires and cables. &ue to the roll out of ), and broadband" demand for
electric wires and cables is li*ely to increase in the future.
The Indian ire - (able mar*et is highly competitive with a large number of cable
manufacturers. The products manufactured by wire and cable industry finds
application in various industries such as power" cement" steel" chemicals -
fertilisers" refineries and a few other industries. The ma.or demand for the products
arises primarily due to re#uirements of these user industries.
(ables are one of the basic inputs therefore they are very critical for the entire
industrial sector. hether made of copper" aluminium or other non$ferrous materials
$ cables and wires play decisive role in our daily lives and in almost every industry.
(ables are used by /ower" 0teel" (ement" 1efineries" /etro$(hemicals" 'ertilizers
and (ommunication 0ector as well as 1ailways including Metro 1ail. The Indian
(able Industry is highly fragmented with large number of cable producers. Many of
these companies are small$scale cable producers" the smallest of which are family$
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run operations which use the most basic production e#uipments. There has been
very limited consolidation amongst the ma.or players in the industry. The tendency
of cable companies to grow organically" rather than by ac#uisition of competitors"
means that no dominant groups have emerged in the industry.
%istorically" the demand in the (able Industry has been characterized by its cyclical
pattern. The sector witnessed sustained mar*et depression during the period 3445$
266) and since then the industry is on the upswing.
This growth pattern is li*ely to go on for ne!t few years due to various favourable
factors" such as /ower 0ector reforms" growth in other infrastructure sectors" high
growth rate of Indian economy etc. The wire and cable industry is de$licensed and
eligible for automatic approval for 'oreign &irect Investment up to 366 per cent.
The 7olatility of raw material prices may have a negative impact on the financial
performance of the industry as the basic raw material is copper" which constitutes
almost 869 to :69 of the overall cost depending upon the type of cable. In the
recent past" there have been wide fluctuations in the price of copper both at domestic
and international mar*ets. ;ny abrupt or large$scale escalation in the prices of the
raw materials can adversely affect profits in short run.
The mar*et size of the cables and wires industry in India was estimated to be around
1s.386 billion in '< 33" of which cables would be appro!imately 1s.48$366 billion.
It is estimated that appro!imately :69 of the industry is organized" while the
remaining accounts for the unorganised - regional level players. The wire industry
in India touched appro!imately 1s.86$88 billion in '< 33. It was estimated that the
5$year (;,1 for the wires - cables industry was329.In India" the overall growth
8
for cable industry was less than 89 in '<64$36 against the robust growth witnessed
in '<33$32. '<36 was a challenging year for the industry" mainly due to li#uidity
crunch by end industry user sectors" leading to reduced demand faced due to delay
in implementation of both on going and new pro.ects. In India" the overall growth
for cable industry was less than 89 in '< 33$32 against the robust growth witnessed
in '< 36$33. '<33 was a challenging year for the industry" mainly due to li#uidity
crunch by end industry user sectors" leading to reduced demand faced due to delay
in implementation of both ongoing and new pro.ects.
=
OBJECTI'ES O& THE STUDY
To study the various applications of electrical wires and cables.
To study the growth of electrical wires and cables industry in India and list
down the product segments and target audience.
To study and analyze the factors affecting buying behavior for wires and
cables.
To study on what technical specifications do customer buy electrical wire
and cable.
To analyze the problems and potential for wire and cables manufacturers in
&elhi.
:
RESEARCH METHODOLOGY
The research process or methodology is the approach to the entire study" it is the
master plan. It is the blue print for achieving the ob.ectives. The diagram shows the
systematic nature of the research process.
IDENTI&Y TERMS O& RE&ERENCE
SUR'EY PAST WOR*
PLAN YOUR APPROACH
COLLECT THE DATA
ANALYSE THE DATA
DISCUSS YOUR &INDINGS
PRESENT THE &INDINGS
&ata is effectively another word for information that can be collected through
secondary or primary data collection.
METHOD O& DATA COLLECTION
R+,+-./0 12.3 1455 6+ 728+ 9.2: ;12 ,2<./+,: -
3. /rimary &ata
2. 0econdary &ata
5
P.4:-.= D-;- 1455 6+ /255+/;+7 92. ;0+ 92552148> ,2<./+,:
Interviews of officials of ires and (able Manufacturers in &elhi.
>uestionnaire survey of electrical ires and (able users and dealers located
in &elhi.
Interview of dealers of ires and (ables in &elhi.
S+/287-.= D-;- 1455 6+ /255+/;+7 92. ;0+ 92552148> ,2<./+,:
;rticles in Newspapers" Magazines and Internet.
&es* 1esearch for finding the demand for ires and (ables in &elhi 1egion
S-:?548> M+;027252>=
0ample 0ize: 26 Manufacturers and &ealers.
(ustomer 0urvey in &elhi - N(1.
0ample 0ize: 366 (ustomers.
Method: >uestionnaire 0urvey.
(ontact method: /ersonal 7isit.
0ample E!tent: &elhi 1egion
The collected data will be analysed using pie charts and bar graphs and will be
presented in the final pro.ect.
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E@PECTED CONTRIBUTION &ROM THE STUDY
It is e!pected that the present study shall bring out a lot of information about
mar*eting potential of wire and cable business in &elhi - N(1. The study will list
down the various products" specifically copper wires and cables and their
applications. The study shall also bring out information regarding consumer
awareness about various company products of wire and cable manufacturers.
This study shall give me a good scope to carry out field wor*" analysis and
presentation of various data which will be immense help for me. This study is
e!pected to bring forward suggestion?remedial measures in regards to mar*eting
potential of wire - cable business in &elhi - N(1 and identify the factors that
affect the buying behavior of people for wire and cables.
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LIMITATIONS
1. It will be difficult to get appointment from the person whom I *now because
of their busy schedule.
!. Time restrictions will be the ma.or limitation and carrying out personal
interviews will not easy as many people don+t want to spend time in filling
the #uestionnaire.
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