SUMMER INTERNSHIP REPORT 2122804196365 FACULTY OF MANAGEMENT STUDIES SUMMER INTERNSHIP 2018 PROJECT REPORT ON MARKET RESEARCH SOUTH EAST ASIAN COUNTRIES AND AUSTRALIA FOR LSAW AND HSAW PIPES JINDAL SAW LTD
SUMMER INTERNSHIP REPORT
2122804196365
FACULTY OF MANAGEMENT STUDIES
SUMMER INTERNSHIP 2018
PROJECT REPORT
ON
MARKET RESEARCH
SOUTH EAST ASIAN COUNTRIES AND AUSTRALIA
FOR LSAW AND HSAW PIPES
JINDAL SAW LTD.
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF MASTERS IN BUSINESS ADMINISTRATION (2017-2019)
SUBMITTED BY:
NIMISHA MALHOTRA
MBA ( DUAL SPECIALIZATION )
ROLL NO – 17/FMS/MBA/078
DECLARATION
I NIMISHA MALHOTRA, student of MBA (Dual Specialization) Faculty of Management Studies, Manav Rachna International Institute of Research and Studies , Batch 2017-19, hereby declare that this training report titled Market study of South East Asian countries and Australia in supplying of pipes for oil and gas industry under the guidance of Mr. Haroon Ansari (Senior Manager) , is the authentic work carried out by me from 23rd July , 2018 to 31st August, 2018 towards the partial fulfilment of the of the requirement of MBA Dual Specialization.
Submitted by:
Nimisha Malhotra
MBA ( Marketing and International Business)
(17/FMS/MBA/078)
Submitted to:
Dr. Deepti Dabas Hazarika (Faculty Mentor)
Faculty of Management Studies
Manav Rachna International Institute of Research and Studies
ACKNOWLEDGEMENT
This project was made possible through the direct and indirect cooperation of various people, who have inspired me at every step of my work. It is a matter of pride for me to acknowledge my profound gratitude to JINDAL SAW LTD. and Faculty of Management Studies (M.R.I.I.R.S) which facilitated me in gaining practical knowledge in the domain of MARKETING
I would like to express my deep sense of gratitude to our respected, Dr. DEEPTI DABAS HAZARIKA for her valuable help and guidance, I am thankful to them for the encouragement she has given me in completing the project. I am also grateful to respected Dean, Director and placement cell for giving me the opportunity to work in JINDAL SAW LTD. and permitting us to utilize all the necessary facilities of the institution.
I am also thankful to all the other faculty & staff members of our department for their kind co-operation and help.
I am greatly obliged and thankful to my esteemed project guide, company mentor MR. HAROON ANSARI
( Senior Manager Marketing ) and all the other employees for their valuable cooperation and guidance.
Lastly, I would like to express my deep gratitude towards my classmates, friends and parents for providing me with the moral support and encouragement in successfully completing the tenure of the internship.
NIMISHA MALHOTRA
17/FMS/MBA/078
MBA (Marketing & IB) 2017- 2019
ABSTRACT
This report is prepared in regards with completion of internship in MARKETING that includes the market analysis of South East Asian Countries and Australia in supplying of pipes in oil and gas industry .
The Jindal Organization is one of India’s largest business groups. Ranked fourth amongst the top Indian business houses, in terms of assets, the organization was established in 1970 by Mr. O.P. Jindal. Over the years, the organization has expanded and diversified into varied business areas in a planned manner, thereby ensuring the creation of a synergistic foundation for its various business ventures. This US$ 15 billion organization’s manufacturing facilities are spread across thirteen plants at ten pivotal locations in India and various others across the globe. Jindal SAW Limited is the largest pipe manufacturing company in India. As part of one of the country’s top most industrial houses and the foremost indigenous steel producer and exporter, Jindal SAW has effectively established itself as a global major and market leader. With its four Strategic Business Units, spread in India and overseas, it is the only company that offers Total Pipes Solutions.
right0TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO.
EXECUTIVE SUMMARY 1 INTRODUCTION 1.1. INTRODUCTION 00TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO.
EXECUTIVE SUMMARY 1 INTRODUCTION 1.1. INTRODUCTION
COMPANY PROFILE
Jindal SAW manufactures SAW Pipes (Submerged Arc Welded Pipes) and spiral pipes for the energy transportation sector; carbon, alloy and seamless pipes and tubes for industrial applications; and Ductile Iron (DI) pipes ; Fittings for water and wastewater transportation.Jindal SAW pipes are energy-efficient, reduce dependence on fossil fuels, and help conserve natural resources.
Pillars of O.P. Jindal Group
The O.P. Jindal Group is headed by Smt. Savitri Jindal. The group’s strength lies in the dynamic and rigorous approach of its leaders: the four sons of Shri O.P. Jindal. The four brothers are today taking forward the rich legacy of their father.
Mr. Prithvi Raj Jindal is the Chairman (Non – Executive) of Jindal SAW Ltd.
Mr. Sajjan Jindal is the Chairman of JSW Group.
Mr. Rattan Jindal is the Vice Chairman & Managing Director of Jindal Stainless Ltd.
Mr. Naveen Jindal is the Chairman of Jindal Steel & Power Ltd.
The O.P. Jindal Group has charted out an aggressive growth plan over the next decades. All the Group companies are well poised to take advantage of the huge opportunities presented by India.
Jindal SAW Ltd. is the market leader capacity wise in manufacturing of large diameter submerged Arc Welded (SAW) Pipes using U-O-E, J-C-O and Helical Processes. The SAW Pipes are mainly used in transportation of Oil, Gas, Slurry and Water.
The first SAW Pipe mill (UOE) was commissioned in the year 1987 in Kosi Kalan, State of Uttar Pradesh and thus Jindal SAW Ltd. became the 1st Pipe Mill to produce LSAW Pipes in India.
With a vision of establishing Jindal SAW Ltd. as a foremost supplier of Line Pipes globally, 2nd Pipe Mill was commissioned in the year 2000 close to port Mundra- The first major all-weather private port in west coast of India, Kutch District in the state of Gujarat. In order to cater the rising demand, SAW Pipes division continued and now has expanded to Seven (7) Pipe Mills in India and two (2) in the United States.
In addition, we provide relevant, value-added services by way of specialized internal and external Anti-Corrosion Coatings, Connector Casings and Hot Pulled Induction Bends thus we call ourselves as TOTAL PIPE SOLUTION COMPANY.
JINDAL SAW Ltd. has manufactured and supplied more than 25,000 Kms of Line pipes & exported in excess of 14,000 Kms of Line pipes for On-shore and Off-shore pipeline projects across the world. This division is the Market Leader in its segment in India and has supplied Pipes for major line pipe projects in Middle East, North America, Latin America, Africa, Europe, Australia, CIS and Asia.
PRODUCTS
LINE PIPES
LONGITUDINAL SUBMERGED ARC WELDED PIPES
ADAPTING U-O-E PROCESS
LONGITUDINAL SUBMERGED ARC WELDED PIPES
ADAPTING J-C-O PROCESS
HELICAL SEAM
SUBMERGED ARC WELDED PIPES (HSAW – SPIRAL)
ANTI – CORROSION COATINGS
EXTERNAL:
3 LAYER POLYTHYLENE/ 3 LAYER POLYPROPYLENE
FUSION BONDED EPOXY (FBE)/
DUAL LAYER FUSION BONDED EPOXY (DFBE) TAPE COATING
COAL TAR ENAMEL (CTE)
CONCRETE WEIGHT COATING (CWC)
INSULATION COATING
INTERNAL:
INTERNAL FLOW EFFICIENCY
INTERNAL FUSION BONDED EPOXY UNITS AND THEIR LOCATION
JCO I NANAKAPAYA, MUNDRA
JCO II, IPU SAMAGHOGHA, MUNDRA
JCO III NANAKAPAYA, MUNDRA
SPIRAL I, IPU SAMAGHOGHA, MUNDRA
SPIRAL II, IPU SAMAGHOGHA, MUNDRA
SPIRAL III BELLARY, KARNATAKA
SPIRAL IV KOSI KALAN, MATHURA
COATING UNIT I KOSI KALAN, MATHURA
COATING UNIT II NANAKAPAYA, MUNDRA
COATING UNIT III, IPU SAMAGHOGHA, MUNDRA
COATING UNIT IV PRAGPAR, MUNDRA
COATING UNIT V BELLARY, KARNATAKA
COATING UNIT VI BAYTOWN, TX, USA
IBM, UNIT I, IPU SAMAGHOGHA, MUNDRA
IBM UNIT II, IPU SAMAGHOGHA, MUNDRA
The two main types of pipes that are transported are LSAW and HSAW pipes .
LSAW
LSAW stands for “Longitudinal Submerged Arc Welding”. In this technique the raw material is welded longitudinally under the bed of flux( lime, silica, MnO2, etc.) which prevents oxidation of base and filler material and provides a conductive current path between electrode and work. Following are the methods to produce LSAW pipes.
UOE
JCO
Let us have a look at the plants situated across the country that produce LSAW pipes through JCO process.
JCO-1
Plant Location:Nanakapaya, Mundra, Gujarat.
Pipe Diameter:457mm(18 “) – 1219mm(48”)
Strip Width:1317mm – 3779mm
Wall Thickness:6.4mm – 38.1mm
Material Grade:API 5L, Grade up to X80
Pipe Length:8m – 12.5m
Plant Capacity:300,000 MT PA
JCO-2
Plant Location:Samaghogha, Mundra, Gujarat.
Pipe Diameter:406.4mm(16 “) – 1067mm(42”)
Strip Width:1250mm – 3300mm
Wall Thickness:6.4mm – 25.4mm
Material Grade:API 5L, Grade up to X80
Pipe Length:8m – 12.5m
Plant Capacity:250,000 MT PA
JCO-3
Plant Location:Nanakapaya, Mundra, Gujarat.
Pipe Diameter:406.4mm(16 “) – 1524mm(60”)
Strip Width:1250mm – 4727mm
Wall Thickness:6.4mm – 50mm
Material Grade:API 5L, Grade up to X80
Pipe Length:8m – 13m
Plant Capacity:300,000 MT PA
Salient Features of LSAW
Capacity to produce pipes with very close Diameter Thickness ratio
Ultrasonic Testing ensure internal soundness of steel plates used for producing pipes
LSAW Mill is equipped with 56000 KN JCO presses, having capacity to form pipes of 65mm thickness.
Cold Expander (13m) to ensure tight and uniform control on pipes dimension
HSAW
Spiral welded pipe production by submerged arc method is based on using tandem welding technique for joining inside and outside coil edges, which have been trimmed and beveled by carbide milling for high quality weld structure.
Welding of hot rolled steel coils takes spiral form after passing through preforming and forming rolls. Excellent exterior weld quality at high production speeds is provided by double submerged arc welding process. Manufactured pipes are cut to the desired lengths at the exit of the pipe machine. Pipe ends are beveled by means of carbide machining for accurate on-site welding.
Let us have a look at the plants situated across the country that produce HSAW pipes
SPIRAL-1
Plant Location:Samaghogha, Mundra, Gujarat.
Pipe Diameter:457mm(18 “) – 2134mm(84”)
Strip Width:750mm – 2000mm
Wall Thickness:6mm – 20mm
Material Grade:API 5L, Grade up to X80
Pipe Length:10m – 12.8m
Plant Capacity:150,000 MT PA
SPIRAL-2
Plant Location:Samaghogha, Mundra, Gujarat.
Pipe Diameter:457mm(18 “) – 2540mm(100”)
Strip Width:800mm – 2000mm
Wall Thickness:6mm – 20mm
Material Grade:API 5L, Grade up to X80
Pipe Length:8m – 18m
Plant Capacity:240,000 MT PA
SPIRAL-3
Plant Location:Bellary,Karnataka.
Pipe Diameter:457mm(18 “) – 2134mm(84”)
Strip Width:750mm – 2000mm
Wall Thickness:6 mm – 25mm
Material Grade:API 5L, Grade up to X80
Pipe Length:10m – 12.8m
Plant Capacity:200,000 MT PA
SPIRAL-4
Plant Location:Kosi Kalan,Mathura,U.P.
Pipe Diameter:457mm(18 “) – 2286mm(90”)
Strip Width:2000mm max.
Wall Thickness:6 mm – 20mm
Material Grade:IS3589 Fe450
Pipe Length:10m – 12.8m
Plant Capacity:150,000 MT PA
Salient Features of HSAW
The manufacturing process used for HSAW pipes consists of two steps
Pipe forming combined with continuous tack welding
The two step technology offers both quality and economic benefits
High pie forming speed by continuous Tack Welding
Emphasis on pipe geometry on pipe forming machine without hindrance by SAW process, resulting in tightest tolerance even without cold expansion with respect to:
Straightness
Roundness
Accuracy of diameter
High quality due to implementation of process automation technology
HSAW forming mill has main drive feed motor with 500,000 Nm torque enable to form pipe of 1 inch wall thickness comfortably.
The advantages and disadvantages of welded steel pipes
Advantages of HSAW
Preferred when high diameters required.
HRC is cheaper then plates hence cost wise HSAW is cheaper.
HSAW weld length is more almost double from other so that it is used for higher thickness.
HSAW pipe is submerged due to which oxidation is less due to inert gas.
Advantages of LSAW
Preferred for high thickness pipe.
LSAW weld length is smaller so that it is used for smaller thickness.
LSAW pipe is submerged due to which oxidation is less due to inert gas.
It uses heavy machinery and hence re-locatable.
LSAW is tonnage based and it is volume based logistics.
Disadvantages of HSAW
Not used for higher thickness.
Pipes having low diameter and higher thickness cannot be manufactured via HSAW route.
It has low thickness due to which number of stack is more.
In HSAW spider is required due to which additional cost is high.
Disadvantages of LSAW
Not used for lower thickness.
Pipes having high diameter and lower thickness cannot be manufactured via LSAW route.
In this number of oxidation is less due to inert gas.
In LSAW length of weld is smaller.
In logistic LSAW is tonnage based.
PROCESS OF MARKETING IN JINDALS
Project Identification ( Direct contact / local agent/self contact)
Discuss with project team / Presentation/ introction of company/ track record/ company profile
Mill audit for approval
Post Audit Closing to Technical Deviations and Observations, if any.
Technical Qualification as per Customer/Project Requirements
Approval as approved vendor for product in official Vendor List (AVL)
Tendering – Direct Tender Call Off/Direct Proposal to End Customer
Techno-Commercial Bidding to EPC contractors, if Turnkey Contract
Negotiation on Technical Proposal
Negotiation on Commercial Proposal
Forwarding of contract/Contractual Terms Agreement with Customer
Supply /delivery/ insurance/ shipment/ local taxation etc
CASE STUDY
ON PREVIOUS PROJECT WITH AUSTRALIA
Gladstone LNG project , Australia
EPC Contractor ( Saipem Italy )
GLNG is a liquefied natural gas (LNG) plant in Queensland, Australia. It is a leading project in the conversion of coal seam gas (coalbed methane) into LNG. The project was announced in July 2007. Its first LNG tanker load departed 16 Oct 2015. The second LNG production train began making LNG on 26 May 2016 .
TECHNICAL FEATURES OF THE PROJECT
The project involves the production of coal seam natural gas in the Surat and Bowen basins in eastern Queensland, which surround the regional centres of Roma and Fairview. Gas will be piped then 435 kilometres (270 mi) to a gas liquefaction plant at Hamilton Point West on Curtis Island near Gladstone, Queensland. There, coal seam natural gas will be converted into LNG.
The initial annual capacity of the LNG plant was between 3 million and 4 million tonnes of LNG when the first production train entered service in 2015. Annual capacity doubled when the second train came on line in 2016.
The front-end engineering and design (FEED) phase of the project was carried out by Foster Wheeler and Bechtel. A final investment decision on the GLNG project was approved by the State and Federal Governments in May and September 2010 respectively.
PROJECT COMPLETION AND OPERATION
GLNG exported its first load of LNG on 16 October 2015. Queensland Premier Annastacia Palaszczuk, Minister for State Development Dr Anthony Lynham and Member for Gladstone Glenn Butcher were in Gladstone for the milestone to mark the first shipment. The Malaysian LNG tanker Seri Bakti transported the shipment to GLNG’s customers in South Korea.
HIGHLIGHTS OF THE PROJECT
JINDAL GOT THE ORDER ON 17TH DECEMBER, 2011 AND WAS COMPLETED BY
16TH NOVEMBER, 2012.
180 MILLION WAS THE TOTAL ORDER
DELIVERY WAS WITHIN 15 MONTHS FROM ORDER (8TH FEBRUARY, 2011).
42″ INCH. DIAMETER PIPES WERE REQUIRED.
THE PROJECT WAS 430 KMS.
PRESENT MARKET REACH
Since its inception in 1984, Jindal Saw has enjoyed the reputation of being the frontmen in pipe technologies for on and off-shore oil and gas projects in India. It is also the market leader in terms of exports.Our present products land on the expectations of end users as per the API5L, ISO, DEP Shell, DNV OFS, SAMSS standards etc. Our experience in handling various large and small scale projects has helped us make a name for ourself in the market. Let us have a look at our present reach.
The picture above clearly shows that our organization enjoys a worldwide clientele. Some of our esteemed clients are as follows :
ABU DHABI GAS INDUSTRIES LIMITED (GASCO)
AGIP
ANGLO AMERICAN SUR S.A.
ADMA OPCO
BECHTEL
BRITISH GAS EXPLORATION AND PRODUCTION INDIA (P) LTD.
CAIRN ENERGY
CHEVRON
DUBAI SUPPLY AUTHORITY (DUSUP)
GAS AUTHORITY OF INDIA LIMITED (GAIL)
GE OIL & GAS
GLNG, AUSTRALIA
INDIAN OIL CORPORATION LIMITED (IOCL)
INTERNATIONAL PETROLEUM INVESTMENT COMPANY (IPIC)
KUWAIT OIL COMPANY
OIL AND NATURAL GAS COMPANY (ONGC)
PETROBRAS
PETROLEUM DEVELOPMENT OMAN (PDO)
QATAR PETROLEUM
QUESTAR GAS MANAGEMENT
RELIANCE INDUSTRIES LIMITED (RIL)
REPSOL
SAIPEM
SAUDI ARAMCO
SHELL
SOUTH OIL COMPANY, IRAQ (SOC)
STROYTRANS GAS
SYRIAN GAS COMPANY
FINDING THE MARKET
The market for us essentially lies in every nook and corner that has energy needs. With growing economies in all the nations, oil and gas export and import plays a major role in determining GDP of nations. Transportation of these resources lies in pipelines spread in and outside of oil and gas producing countries. Let us have a look at devising a general market strategy on two market scales. They are :
International
Domestic
International Market of Oil and Gas
International Market of Oil and Gas : The production of the oil and gas is going to be dominated by Middle Eastern Countries and African nations in the projections by 2025. The demand will however be dominated by Asian Countries by 2025. Talking about dependency, a lot will depend on the effective availability of these resources, viable alternate resources and production rates of oil in comparison to its substitutes(Tar sands, Shale gas). More or less production is going to be controlled by member countries of Organization of the Petroleum Exporting Countries. So that will be our first point of concern.
1) Organization of the Petroleum Exporting Countries
The Organization of the Petroleum Exporting Countries is a permanent intergovernmental organization of oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries.
The global economy represented the main risk to the oil market early in this decade, as global macroeconomic uncertainties and heightened risks surrounding the international financial system weighed on economies. Escalating social unrest in many parts of the world affected both supply and demand throughout the first half of the decade, although the market remained relatively balanced. Prices were stable between 2011 and mid-2014, before a combination of speculation and oversupply caused them to fall in 2014. Trade patterns continued to shift, with demand growing further in Asian countries and generally shrinking in the OECD. The world’s focus on multilateral environmental matters began to sharpen, with expectations for a new UN-led climate change agreement. OPEC continued to seek stability in the market, and looked to further enhance its dialogue and cooperation with consumers, and non-OPEC producers.
Due to our impressive scorecard in all the middle eastern countries we have a stronghold in the entire region. Therefore for future projects that turn up in these OPEC nations of middle east, we will be a favorite in compliance with high quality standards we have already delivered in setting up pipelines as per the needs of end users and contractors.
The ways to market ourselves in a prevalent market would be :
Arriving at good terms with governments of these countries.
Understanding the political shifts in these countries between different governments.
Using distance to our advantage in case the project demands speedy delivery of pipes when at competition with our Asian counterparts.
Trying to set up manufacturing plants in these countries as they would help us be the foremost deliverer and also mitigate the local content requirement ( if any) whenever a new project turns up in any of them.
Following the EPC and PMC companies from all around the world undertaking the projects, religiously.
Middle east is the dominator of global oil and gas market, the idea is to be centered around it so that we maintain a stronghold in the region and improvise it in years to come.
Now when we come to other member countries of the OPEC it is quite evident that we haven’t focused much on countries like Venezuela and Equatorial Guinea. We have a lot of prospectives as these countries have a lot of unexplored potential in the oil and gas market. Venezuela is now the country with largest oil reserves in the world, so using our American Unit of Jindal Tubular for future prospects would certainly play a role in getting pipeline projects. Also if we look at the figures of oil exports of Venezuela, it’s 81% less than its counterpart in the list of biggest oil reserves i.e. Saudi Arabia. Therefore it is definitely going to a budding market in the future, considering the fact that oil and gas forms the basis of their economy.
Talking about the newest member of OPEC nations, Equatorial New Guinea. As of 2005, according to World Oil, Equatorial Guinea’s proven oil reserves were put at 1.28 billion barrels (204×106 m3). In 2005, oil production was estimated at 420,000 barrels per day (67,000 m3/d), of which crude oil accounted for over 90%. So to follow the trend the consumption has gone up in this decade as compared to the last one, therefore it is simple that the production and export has grown too. This growth forms the basis of new pipeline projects in future. The sooner we start using our sources to enter into this country’s market, the better our prospects would be.
Ecuador is however not going to be a hopeful market for us because the Government is trying to reduce its dependency on fossil fuels by shifting to hydroelectric power. What that means is that they are going to have a lot of river interlinking projects for irrigation and domestic use. So it might not be a future market for oil and gas transportation projects but definitely a market for water and sewage transportation. We have already done projects in Angola and Nigeria so it means not much needed to establish a market stronghold there.
2) Continent-wise Distribution of the Market
ASIA : We have all the major producers and consumer markets covered in Asia. So Asia won’t be much of a concern in terms of market.
AUSTRALIA : Australia has three countries in its account. They are Australia, Papua New Guinea and NewZealand. Australia is huge in terms of area so oil and gas supply across the country is going to be of major concern for the end users. Also, our presence in the country will play a pivotal role. Talks are ramping up about a proposed 450 kilometer gas pipeline set to stretch through north-western New South Wales to the planned Narrabri Gas Project. Papua New Guinea is however emerging as an LNG(Liquified Natural Gas) market.
NORTH AMERICA : A potential market for us lies in two countries in i.e. Cuba and Trinidad & Tobago. With both these countries looking to widen their export across the North American nations, it is highly likely that they will broaden the prospects in terms of pipeline projects inside and outside of the country. With Cuba coming to diplomatic relations with the United States of America over the embargo conflict. It is highly likely that Cuba will now utilize its export market through U.S.A. in the next 5 years. Our strategic unit in U.S.A and sound government relations will help us get deals with Cuba. But, considering the fact that Government in U.S.A has changed in 2017 and has applied strict measures with Cuba, we might have to wait longer for projects to flourish.
AFRICA : We have established a sound market reputation in Africa, with the OPEC African Nations and other countries of the continent.
What is interesting here that as these nations look forward to expand their economic horizons, energy needs will be a primary factor. Two countries that should concern us in particular are Congo and South Sudan. South Sudan and Kenya are coming to business terms due to failure of Ugandan and Kenyan deal in terms of oil exports as per reports. Therefore a strategy involving our acclaimed presence in Kenya will help us getting deals in South Sudan. Also, since this continent still lies in deep rooted poverty getting investors through our channel will help us become more prominent in leading pipeliine projects.
SOUTH AMERICA : We have a name for ourselves in all the resource rich countries of this continent except Venezuela.
EUROPE : We are in good shape in the European market due to our dominance in the middle east. Continuance of great quality work will ensure our presence in the years to come.
COMPETITOR ANALYSIS
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Baosteel
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Baosteel
Yulong
Jingsuo
68580012700 India
Welspun corp. Ltd.
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Welspun corp. Ltd.
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258127512700Japanese Mills – NSSMC
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MARKET ANALYSIS OF AUSTRALIA
Companies already operating in Australia
Woodside Woodside has a stake in many fields such as Woodside Browse (30.6%), Greater Sunrise (33.44%), Wheatstone (13%) and Julimar (65%). Woodside are an Australian company founded in 1954 and drilled their first well in 1956.
Chevron Chevron’s biggest interest in Australia is a 47% equity stake and heading production at Greater Gorgon. They also have equity stakes in Wheatstone, Barrow Island, and the North West Shelf Project. Chevron have invested into exploration and have found more than 25 new wells since 2009.
PTTEP Operate as PTTEP Australasia (PTTEPAA) a subsidiary of PTT oration and Production (PTTEP) which itself is a subsidiary of PTT, the Thai state owned oil company. Their main interest is the Cash Maple Field and Montara. The latter had a blowout in 2009 that leaked into the Timor sea for 74 days.
Santos Santos is one of Australia’s leading oil and gas exploration and production companies, with high quality assets and projects throughout Australia and the Asia-Pacific region.
Shell In Australia, Shell focus on exploration and upstream activities. They have an interest in Greater Gorgon (25%), Woodside Browse (27%), Greater Sunrise (26.56%), and Evans Shoal (32.5%). Shell plan to spend $4.5bn over the next 5 years to develop some of these gas fields. Shell announced in March 2017 that it will drill 161 new gas wells at its Queensland operations by the end of 2018.
The contractors
Contractors
Partner in country Activity
Subsea 7 Local presence
Subsea 7 have multiple contracts in Australia. In 2016 they signed 4 contracts for the engineering, procurement and construction of an Emergency Pipeline Repair System (EPRS) for Chevron and INPEX.
In 2011 they were awarded a $440 million contract from Chevron to work on the on the Gorgon platform to complete the installation and tie-in of heavy lift lift structures. More recently, Subsea 7 were awarded a contract by Cooper Energy Ltd. for the Sole well to the Orbost gas plant.
TechnipFMC Technip Oceania and
Pty Ltd. Genesis (Technip subsidiary) Technip supplied the 490km flexible pipeline for the Ichthys field in 2012, the pipeline was completed in early 2016. In 2012 Technip were also given a $273 million contract for the engineering and procurement of the FPSO at Ichthys. Technip entered a contract with Woodside in 2016 to be part of an engineering panel which will provide production engineering support, front-end engineering and design (FEED) concept selection and feasibility studies.
Saipem
Saipem Australia Pty Ltd. Saipem Laid an 890km pipeline at Ichthys using their Semac and Castorone barges. This project was from 2014 to 2016 and was for INPEX.
SOUTH EAST ASIAN COUNTRIES
COMPANIES OPERATING IN MALAYSIA
Petronas
Shell
Murphy
Petronas shell Conoco phillips
Petronas hess
Sapurakencana
Exxon mobil
Repsol
Contractors
Petrofac – Petrofac E and C Sdn Bhd
Amec – Local presence
Technip – Local presence
Wood Group Kenny – Wood group Kenny Sdn Bhd
Aker Solution – Aker Solution Malaysia Sdn Bhd
Offshore – TH heavy Engineering Berhad
COMPANIES OPERATING IN THAILAND
Chevron
PTTEP
Petronas PTTEP
PTT
Petronas Hess
Kris Energy
Ophir
CONTRACTORS
Nippon steel and sumikin engineering co.
EMAS
Mermaid Maritime
GE oil and gas
Seadrill
Scomi Energy Services Bhd
SWOT ANALYSIS
STRENGTHS
Near to port ( Locational advantage )
Integrated pipes and coating wit bend single window total pipe solution .
Huge capacity to fulfill contracts
Sound financials
Good market presence
Low manpower cost as compared to other international companies and compared to US.
Good track record
High technical workforce with extensive track record .
Pioneer in line pipe manufacturing with huge experience .
Direct selling to middle east and Africa from Western Countries.
WEAKNESS
Steel is not integrated with pipes
Dependency on import of steel
Dependence on steel mills during biding
Local preference by various countries by local pipe mills
Raw material cost because of imports dependency
Not much incentive on taxes
High transportation costs
Huge investment by competitor like China in Australia
Transportation from China
THREATS
Huge Capacity and Extremely Low cost from Chinese Pipe Mills.
More presence of Chinese competitors in Australia with huge investments.
Most projects are small diameter size
Lack of ERW pipes in Jindal’s product portfolio
OPPORTUNITIES
Huge potential of pipelines in Australia for LSAW, HSAW pipes.
Seek more market presence
Registrations and approvals with various customers
Huge potential for potable water
Joint ventures with local contractors.
Target projects based on location in Australia vis a vis India
( preference of pipes )
CONCLUSION AND SUGGESTIONS
This project report has focused on devising the general marketing strategy for Jindal Saw Ltd. . It has focused mainly on areas where there are probable markets evolving with South East Asian Countries and Australia . The budding market as per the report lies in the OPEC countries, African Countries and in the domestic sector in India. It has also emphasized on continent wise distribution of markets so as to present a clearer picture of the large countries where markets would exist in international markets and due to exploratory measures for oil and gas. We have also covered the affect of war in this report so as to determine the future possibilities of projects when human habitat becomes stable in these regions.
As per the schedule of this project we have done a SWOT analysis of Jindal Saw in International Markets.
The identification of projects that will be upcoming in South East Asian Countries And Australia .
TARGET UPCOMING PROJECTS IN AUSTRALIA
Queensland hunter gas pipelines , QHGP pty ltd, gas ,813
Western slopes Piplines, APA group , gas ,450 km
GLNG pipeline, Santos gas , 420 km
Arrow Bowen pipelines , Arrow Energy , gas , 430 km
Santos Energy has big investment plans in Queensland for various projects.
TARGET UPCOMING PROJECTS IN SOUTH EAST ASIAN COUNTRIES
Malaysia : CPOC Malaysia – JDA 5
Thailand : PTT Thailand project
Vietnam : Omon Project Block B
Indonesia : Pertamina Projects
Indonesia Deep Water Project
SUGGESTIONS TO APPROACH THE PROJECTS
Registrations with End User/PMC/FEED design companies
More market penetration
Integration of pipe mills with associated Steel manufacturing.
JVs with steel mills for better price
Technical competencies as per water authorities design requirements
Relationship building
More expansion within countries like Australia, Thailand etc
Target more projects which are strategically located for export from India.
REFERENCES
WEBSITES:
www.google.comwww.altavista.comen.wikipedia.org/wiki/ CASESTUDY
www.learnmarketing.net/consumer.htmwww.theglobaljournals.com/ijar/file.php?val=MTAzNQ
