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Market Potential Survey for Refrigeration System
1
A
PROJECT REPORT ON
MARKET POTENTIAL SURVEY FOR THE LOW TEMPERATURE AMMONIA ABSORPTION REFRIGERATION
SYSTEMS FOR THERMAX IN WESTERN REGION
FOR METRIC CONSULTANCY LTD.
SUBMITTED BY DEVENDRA G. SHENDE
MBA-II
PROJECT GUIDE PROF. SMITA SOVANI
VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE- 411037.
2005-2007
Acknowledgement
Market Potential Survey for Refrigeration System
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Every project has a number of persons involved in it, some directly others
indirectly. Everyone has contributed to its success; the critics who spur you into action with
renewed enthusiasm and the supporters who steadfastly encourage you all through till the end. I
would like to take this opportunity to express my gratitude for all those who provided valuable
criticism, appreciation and guidance to make this project a success.
I thank Mr. John Jacobs my Training Coordinator,THERMAX for the project, whose
inspiration, whose sharing of anecdotes to exemplify the advice he would give, helped me see
through this project swimmingly.
I thank Prof Mrs. Sohani my Project Guide for her guidance, motivation and attention.
She was very much approachable with all my doubts!
It was indeed a privilege to have done my project at METRIC CONSULTANCY LTD.
The learning experiences at at METRIC CONSULTANCY LTD are something that I would
cherish for the rest of my life. Having worked in this corporation gives me the confidence and an
outlook out of the box much needed before I take steps in the professional world.
DEVENDRA SHENDE
Market Potential Survey for Refrigeration System
3
Table of Contents
Sr. No.
Particulars Page No.
1 Executive Summary 1 2 Introduction to Project 3 3 Objectives Of Project 5 4 Company Profile 6 5 Product Profile 13 6 Research Methodology 16 7 Summer Training Schedule 22 8 Data Analysis 23 9 Findings 32 10 Inferences and Recommendations 34 11 Conclusion 35 12 Bibliography 35 13 Annexure-1 37 14 Annexure-2 42
Market Potential Survey for Refrigeration System
4
CHAPTER 1
EXECUTIVE SUMMARY
Metric Consultancy ltd. is one of the leading market research firms in India. Thermax is
the client of Metric Consultancy Ltd., have been contracted with the metric for this market
Potential Survey.This project has been carried out in order to check the market potential for the
Low Temperature Ammonia Vapor Absorption Refrigeration systems for the range of 290 to
70 0C . This product is an industrial system, which is used, in various manufacturing industrial
sectors to maintain the desired temperature. This project was successfully accomplished within the
stipulated time.
The main objective of this project was to know the market potential for the Low
Temperature Ammonia Vapor Absorption Refrigeration systems in an Industrial Market.
The study is divided in four parts. The first part containing a pilot survey for the project in
Pune region which tries to check and modify the questionnaire, observe the industrial users are
responses should match with the requirement and objectives of the project. The Second part deals
with a structured questionnaire, which tries to check market potential for Low temp. Refrigeration
systems (LTRs) and other technical details involved in the project. The third part deals with a
detailed analysis of the obtained data. The fourth & the most important part is to recommend the
suggestions to the company.
Despite having fairly large share of traditional system user segment, the advanced users are
many. The reasons can be many, but the main reason is the process requirement and technological
effectiveness. This project tries to explore the possibilities of such industrial users, which will be
prospective customers for the Thermax.
Market Potential Survey for Refrigeration System
5
With growing awareness amongst the industrial sector in selecting Ammonia Absorption
Systems it has become very essential to develop a product that suits the requirement of the Indian
industry. This product if developed will lead to tremendous cost savings in every way.
The data is collected, analyzed and presented in the tabular form and then graphical
representation is done for ease of understanding. On basis of interpretation of data conclusion is
made and suggestions are put forward at the end.
Market Potential Survey for Refrigeration System
6
CHAPTER 2
INTRODUCTION TO THE PROJECT
The economy of this country got liberated in 1992, with this liberalized economy came
many multinationals to market their products to Indian consumers. This liberalization touched the
industrial product users as well. These companies not only competed but also left the industries far
behind. They did this with the help of advanced technology and aggressive marketing. All this led
to tremendous competition and it was very difficult for the Indian industries to sustain it. No sector
was spared from this phenomenon.
The Refrigeration industry is one such industry. From a long time traditional mechanical
compression systems have dominated this industry. Industrial Refrigeration systems are used
generally to maintain the desired temperature of process in various industries.Within
liberalization the trends started to change very quickly, the international players crowded the
industrial market with the advanced and efficient refrigeration systems.
Like the change in the Indian industry there was also a change in Indian buyer behavior.
All the buyers needed to search for the effective and efficient technological systems.These
companies mostly using traditional systems which are not that technologically efficient. New
trends in Industries are started to adopt the absorption systems than the conventional systems. It is
very subjective matter to adopt the absorption systems as some process requirement much
compatible with the compression systems.
This scenario still exits and so it forms the seed to this project. Observations have shown
that there is a yawning gap between the quality of industrial products and the Indian industrial
Market Potential Survey for Refrigeration System
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requirements. There is a need to develop the paradigm shift from the traditional systems towards
the absorption systems which are costly but Environment friendly.
It has also been analyzed that every industry spends a huge amounts on the refrigeration
systems once . These type of systems mostly specially made to order type. But There are another
players in the market like Thermax which provides the Standardized products and specification
which are very cost effective solutions. This project emphasizes on those industrial users in the
market which are congruent with the standardized product specification.
Initial surveys have shown that every company spends a sum of around 1.5 Crore to 5 Crore
or more per refrigeration system. The cost of maintenance may vary. In this project it is essential
to find the probable segments where it can be used and most prospective industrial segment
which can be used Ammonia LTRS.
The data is collected, analyzed and presented in the tabular form and then graphical
representation is done for ease of understanding. On basis of interpretation of data conclusion is
made and suggestions are put forward at the end.
Scope & Importance: -
Refrigeration Systems are used generally in various manufacturing industrial sectors. So
the project was related to those industries which might use the refrigeration systems in that critical
temperature range.
Project was related to know, whether industries required this kind of refrigeration systems
and to check whether they will position to replace from traditional Mechanical Compression
refrigeration systems to the Absorption systems. Our basic emphasize in knowing whether is
there any place for Low Temperature Ammonia Vapor Absorption Refrigeration systems for the
range of 290 to 70 0C in an industrial market and finding the probable industrial market in
which it can be used i.e. check the feasibility of product.
Limitations: -
Due to constraints the study is limited towards only in Maharashtra and North Region
Market Potential Survey for Refrigeration System
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Survey is conducted only in industries; hence it is an industrial survey.
This survey carried out only for those industrial sectors in which refrigeration can be used.
This survey is limited only for the product users, consultants and Suppliers are not covered
in this survey.
CHAPTER 3
OBJECTIVES OF THE PROJECT
Thermax is market leader for providing the Refrigeration systems to industrial users
between 0 to 29OC. They are already manufacturing the refrigeration systems in that respective
segment. They want to enter in that particular critical segment. There might be other manufacturer
for this critical range i.e. provides the tailor-made products in that critical range as per
requirement.
The main objective of the project was to conduct the survey to know the market potential
of this new product Low Temperature Ammonia Vapor Absorption Refrigeration systems for the
range from 100-1600 TR in the temperature range of 290 to 70 0C in an industrial market &
analyzing the findings for product improvements.
Following are the objectives of the project-
Most attractive segment
Finding most attractive industrial sector which may use this type of refrigeration system.
Major Factors considered in the selection of the LTR systems
Opportunities for the waste heat recovery
Key decision Makers in purchasing refrigeration system in industry
Methodological Procedure the for the purchase of the product
Importance Attached to product performance and reliability as compared to price
Awareness of the Ammonia Absorption system
Estimation of future potential users of AVAM in next five years
Market Potential Survey for Refrigeration System
9
CHAPTER 4
COMPANY PROFILE
METRIC is a leading Consultancy firm and carved out a special position for itself as a
source for value added research. METRIC was established in 1989, as a partnership firm by Dr.
Anand Karandikar and Dr. Ameeta Deshmukh. In 2000 it became a public limited company with
a high-powered team of Senior Consultants with long-standing experience in both line marketing
and research, supported by consultants and research officers. In 2002 METRIC went international
when it franchised its research model MOSTER to worldwide Market Research agencies.
MOSTER is now being used in 20 countries around the globe. METRIC provides all support to its
international partners including proposal making, questionnaire design, analysis and professional
presentation.To assist organizations to implement strategic change for the competitive edge,
METRIC began a full-fledged training department.In 2003 METRIC expanded its operations to
providing skilled and trained manpower in market research to its partners worldwide.
METRIC has its head office in Pune with a modern computerized data processing system
and a large library with over 2000 reference volumes.
The firm has an all-India data collection network, with branch offices located in Delhi, Bangalore,
Ahmedabad, Chennai and field offices in Jamshedpur,Hyderabad and Lucknow. At METRIC, the
simple norm used to judge the quality of deliverables is:
"Whether our contribution has helped the client to increase sales and/or profitability".
METRIC has a diversified and varied team with specializations in:
Customer value management
Econometrics
Direct Marketing
Channel Management
Psychometric evaluation
Market Potential Survey for Refrigeration System
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Statistical Analysis Interpretation
Forecasting
Business Strategy
Corporate Governance . And much more
Global Presence:
METRIC works with market research agencies in 16 countries in applying MOSTER as
well as other specialized studies. The franchisees consult METRIC for design of the survey, data
analysis and interpretation.
PR China
Sino Marketing Research Ltd.
CBC Marketing Research & Business Consulting
Diag Aid Marketing Research
Kenya
Research Solutions Ltd.
Italy
Metron S.r.I.
Argentina
Leventer Group S DE RL DE CV
New-Zealand
Key Research & Marketing
Portugal
Consulmark
Bulgaria
Market Potential Survey for Refrigeration System
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Market Test Ltd.
Germany
Psyma Marketing Research Gmbh
Canada
The Dunvegan Group
Indonesia
PT DEKA Marketing Research
Mexico
Market Sciences
USA
Dimension Research Inc.
Brazil
Leventer Group S DE RL DE CV
Thailand
Infosearch Limited
Thailand
Market Support Co.Ltd.
Gulf Countries
PAN Arab Research Center
Services
Metric Consultancy is research based resulting in customer centric solutions - aimed at
maximizing their value. METRIC consultants have long 'line' expertise in marketing and selling
which are practical and easy to implement.
Market Potential Survey for Refrigeration System
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Metric s major contributions are in the areas of
Comprehensive channel architecture
Direct marketing systems for high value consumer durables
Customer value management for increased customer loyalty
Overcoming farmers' risk aversion to facilitate technology transfer
New product development and new product launch
Organizational restructuring for marketing excellence
Corporate governance through effective process designs
Other Proprietary Models
Readership behavior studies
Corporate Image
Competitive scenario mapping
Demand forecasting
Tracking market mood through consumer panels
Clients:
BPL Whirlpool Cognizant
TVS Honda SPIC
Rallis Novartis Ranbaxy
LML BILT EID Parry
Daewoo Thermax Kinetic
TI Cycles KSB Pumps Mercedes Benz
Market Potential Survey for Refrigeration System
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TATA Steel Bajaj Tempo VSNL
TATA Motors BPCL Swaraj Mazda
GlaxoSmithKline Cummins Auto TQMS
Bank of Maharashtra Hindustan Petroleum Kirloskar Oil Engines
Larsen & Toubro Yamaha L&T John Deere
HSBC Bank HMT Machine Tools Indian Oil
Carborundum Universal ICPA Honda Motorcycles & Scooters
Metric s Proprietary Models
1 ) MOnitoring Satisfaction To Ensure Retention (MOSTER)
Delight your customers
MOSTER is a robust research methodology to diagnose and quantify the path to customer delight.
Based on the models of Herzberg and Noriaki Kano, MOSTER is being used in 22 countries
around the world.
MOSTER classifies attributes of your product or service into those that create delight and those
that if not provided will create dissatisfaction and calculates
The ability of an attribute to create satisfaction or delight
How well the attribute is rated on a product or brand
Sensitivity of each attribute to effect change in customer perception
MOSTER - gives actionable results, which guarantees delight
2) LOCATE
LOCATE is a scientific methodology for choosing the BEST city, the BEST area and the BEST
location for your retail shop. After marking all possible location, an estimation is made about the
potential of the area to attract customers through a complex field investigation that includes traffic
count, study of arterial roads etc.
Market Potential Survey for Refrigeration System
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3) E- Sat
E-Sat identifies how to retain your best employees
Because competent people leave if they are dissatisfied
Incompetent people do not leave even if very dissatisfied
Because good people leave even if satisfied because they want delight at their workplace
And only good people can build great companies
E- Sat is based on the models of Herzberg and Noriaki Kano, and is being used in 22
countries around the world.
4) A CREDIT RATING INDEX (CRIDA)
Provides an objective basis of Credit Volume
Establishes tighter process controls for credit management
Redeploys your credit resources more profitably
Assessment of creditworthiness of market dealers is a complex and challenging task. A
dealer's business contains substantial informal resource flows, which are difficult to quantify and
inspect. The assessment process is expensive and time consuming because of the large number of
assesses.
METRIC's model CRIDA is based on the conceptual frame Work that Creditworthiness is a
manifest attribute of dealer's business behavior and is closely dependent on his management
practices. CRIDA measures a dealer's credit worthiness by collecting authentic and reliable data
on various aspects of his business management practices. An index of creditworthiness so
constructed to provide authentic & cost effective inputs for future credit management. Aspects of
management Practice that are constituent variables for the Index of Creditworthiness (I c/w )
Market Potential Survey for Refrigeration System
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1.Nature of organization
2.Form of organization :
3.Goodwill in the market place
4. Leadership
5. Owner's age and profile of close family members
6. Relationship with bankers
7. Composition of working capital
8. Trend in business
9. Efforts at sales promotion
This list is only illustrative. It is expanded and refined through initial qualitative study &
discussions with the client. A combination of direct survey and observation based methodology is
employed for data collection. CRIDA also estimates the volume of credit that can be extended by
estimating the dealer's Sales Potential, Brand Commitment to Company and past history regarding
his financial transactions with company. CRIDA helps in evaluating and developing better Credit
policies for your company.
5) De Matrix - For effective Dealer Management
A model to segment dealers and for channel development.
In India today, there is a great diversity in the nature of dealers. Without a clear strategy dealers
could develop a very short term view of their relationship with the company and adopt 'street
smart tactics' to gain maximum profits in the shortest possible time.
With DE MATRIX Dealers are segmented so that specific need identification can be done. Dealer
development strategies are formulated to fulfill dealer needs in a comprehensive and focused
manner.
Market Potential Survey for Refrigeration System
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.
CHAPTER 5
PRODUCT PROFILE
The key product of Thermax Ltd. Company is an industrial refrigeration system. These
refrigeration systems are made, as per the industrial standards Thermax products are the brand in
the industrial market.
What is a Refrigeration System
Refrigeration is defined as the transfer of heat from a lower temperature region to a higher
temperature one. Refrigeration devices that produce refrigeration operate using the vapor-
compression cycle (reversed Carnot cycle) or vapor absorption system. Some examples of
refrigeration devices are heat pumps, refrigerators, automotive air-conditioners, and
residential/commercial air-conditioners. All of these devices have one thing in common, to reduce
the temperature of an enclosed environment.
The ammonia absorption cycle was one of the first methods employed for the production
of refrigeration. Original invention consisted of a direct fired generator, a condenser, an
evaporator, an absorber, and an aqua ammonia pump, all of which with many improvements
remain the principle parts of an ammonia absorption system. At this date however, reciprocating
machines had not been developed to the point where they could approach the compression ratios
required for low temperature applications and ammonia absorption found its place in the
refrigeration industry despite its disadvantages. .
In the middle thirties, improved ammonia absorption systems were installed which would
operate on Waste Steam, Waste Heat, or by Direct Firing with Natural Gas or other gases. These
systems employed bubble column design and spray type absorbers and provided ammonia at
Market Potential Survey for Refrigeration System
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99.96% purity for refrigeration duty. This advance in technology, which provided the high purity
(commercial grade) ammonia, overcame the major operating problems of the early systems.
The AAAR AQUA AMMMONIA ABSORPTION REFRIGERATION SYSTEM,
as conceived by Lewis Energy Systems Inc. features several new concepts. Among these are an
ammonia refrigerant liquid to gas heat exchanger and greater utilization of the rectification column
which have further improved the system efficiencies. New and improved control systems are also
available to maximize the utilization of valuable heat sources.
The GENERATOR-REBOILER is considered to be the heart of the LEWIS AAAR
SYSTEM. It receives strong aqua, (preheated in the AQUA HEAT EXCHANGER) as primary
feed and also the returns from the DISTILLATION COLUMN. Steam or any other type of heat
available heats this strong aqua and DISTILLATION COLUMN return. This causes a part of the
ammonia within the aqua to be vaporized. This vapor flows to the DISTILLATION COLUMN
entering below the bottom tray. The weak aqua is taken from the low end of the GENERATOR
REBOILER and heat exchanged with the strong aqua coming from the STRONG AQUA
RECEIVER.
The DISTILLATION COLUMN utilizes bubble trays to distill the ammonia (strip it of
all of its water vapor). Enough strong aqua is fed into the column at one or two predetermined
plates to bring the plates into equilibrium, with the balance directed to the GENERATOR-
REBOILER. Pure anhydrous ammonia is fed to the top plate from the AMMONIA RECEIVER
which receives condensed liquid ammonia from the AMMONIA CONDENSER. This rectification
provides 99.96% ammonia vapor to the AMMONIA CONDENSER.
The AMMONIA CONDENSER condenses the vapors from the DISTILLATION
COLUMN using primary water. The condensed anhydrous ammonia flows to the AMMONIA
RECEIVER. The receiver is sized to provide surge for ammonia volume variations caused by load
changes in the system.
Two REFLUX PUMPS (100% spare) are employed to pump liquid NH3 from the
AMMONIA RECEIVER to the top tray of the DISTILLATION COLUMN. If the CONDENSER
is high enough in the structure these pumps can be eliminated. Ammonia is fed to the
Market Potential Survey for Refrigeration System
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EVAPORATOR at the pressure which corresponds approximately to that of the ABSORBER
pressure and vaporizes as it absorbs heat from the cooled liquid or process gas.
The LEWIS AQUA AMMONIA ABSORPTION REFRIGERATION SYSTEM is
made completely made an slight edge over mechanical compression systems-
1) Low Maintenance
2) Maximum Reliability
3) Low Cost Installation
4) Low Noise level
5) Completely Automatic Operation
6) Operational Flexibility
7) Design Flexibility
8) Oil Free Refrigeration System
Market Potential Survey for Refrigeration System
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CHAPTER 6
RESEARCH METHODOLOGY
Marketing research is the systematic design, collection, analysis and reporting of data and
findings relevant to a specific marketing situation facing the company. Marketing research is a
research carried out in a particular market. The study is done with a set objective, maybe for the
reason to analyze consumer for the introduction of new product, study of distribution channels or
for that reason, any problem in the field of marketing. The market research is complete only when
proper analysis is carried out with the help of the relevant information and the solution fulfilling
the objective is identified.
Before embarking on the details of information collected, it is appropriate to present a brief
view of the research process. Research process consists of series of actions or steps necessary to
effectively carry out the desired sequencing of these steps. The figures attached will illustrated a
typical research process.
Following orders of steps to be taken provide useful guidelines regarding the research process:
1. Formulating the research problem.
2. Extensive literature survey.
3. Preparing the research design.
4. Questionnaire formulation.
5. Determining the sample design.
6. Collection of data.
7. Analysis of data.
8. Interpretation of data.
Market Potential Survey for Refrigeration System
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1. Formulating the research problem
At the very outset of the research it was important to single out the problem to be studied.
Essentially, to steps were involved in formulating the research problem.
Understanding the problem thoroughly
Rephrasing the problem into meaningful terms from an analytical point of view
The research problem in case of this project is as follows:
To find out the market potential for the probable industrial users
Discussion with the various industrial experts.
To find the customer s awareness about this vapor absorption refrigeration systems.
To find the various technical comfortability of the product in the field.
2. Extensive literature survey
The best source of literature is the library. In the book of Philip Kotler as well as other books
the subject has been dealt extensively. There are at least five to six steps are covered in market
potential survey. Metric has provided with extensive books on various management issues.
3. Preparing the research design.
After defining the problems clearly, the next step is to plan & design the research. It is the
arrangement of condition for collection and analysis of data in a manner that aims to the research
purpose with economy in procedure.
The preparations of research design appropriate for a particular research problem involve
usually the consideration of the following:
The means obtaining the information.
Market Potential Survey for Refrigeration System
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Evolution of the way in which selected means of obtaining the information will be
organized and the reasoning leading to the selected.
The cost factor relating to the research.
A segment survey of around 35 industries on basis of these industries I was able to
formulate the complete research.
4. Questionnaire formulation
Questionnaire is considered as the core part of the survey and should be constructed very
carefully. An insufficient and incorrect questionnaire leads to total failure of the survey
Structured questionnaire were used. Questions were definite, concrete and predetermined
.The questions were either open or closed ended for response. Structured questionnaire is
simple to administer and relatively inexpensive.
5. Determining the sample design
When field studies are undertaken in particle life, consideration of time and cost almost
invariably lead to a selection of respondents. The respondents selected are the representatives
of the representatives of the total populations. The selected respondents constitute what is
technically called a sample . The survey is sample survey .
Sampling Plan
a) Sampling Unit- Sampling Unit indicates the people or subject that is selected for
particular research. The purchase managers/executives, Engg. Managers of the leading
companies in Pune were selected.
b) Sample Size- Sample size indicates the number of respondents that are selected for
particular research. A sample size of 35 companies from Maharashtra and Norhthen
india region.
Market Potential Survey for Refrigeration System
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c) Sampling Procedure- Sampling Procedure indicates the manner in which particular
respondents were selected. The main criteria for selection of respondents that every
sectors covers all types of variety users i.e. from top industries to small scale industries
and their ratio is maintained such that sample represents the whole sectors response. As
far as users are concerned, the users are selected on the basis of their annual turnover
of user , the list provided by the THERMAX for his project.
d) Geographical unit -
Area that was surveyed was Maharashtra and North India which covers all
industries for which we are targeting the whole project.
6. Collection of data
This stage of any research consists of collection of the required data from the sample
decided upon. As it is an exploratory research concerning the customer perception in data
collection calls for the primary source.
Data source
Primary data
Primary data has been collected from industries. Extensive survey is done to get the
maximum information about the trade. No one could have better knowledge of customer s
perception. On the other hand customer is the most reliable source of information.
Secondary data
The information related to the industry is gathered from company brochure, technical
manual, periodicals, newspaper, and different magazines. Besides this the company
executives provided help and assistance to understand the basic of refrigeration industry.
7. Analysis of data
Market Potential Survey for Refrigeration System
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After the data is collected, and then comes the crucial task of analyzing them. The analysis of
data required number of closely related operations. This task contains the use of analytical skills ,
interdependence of the various attributes involved in the research and their impact on the
research.
8. Interpretations of data
The real value of research lies in its ability to draw conclusions. Infact, this stage is the one
for which has been designed. Information based on real facts & the systematic collected data was
made available in this stage.
RESEARCH DESIGN
Research design is the overall description of all the steps through which the project has
proceeded from the setting of the objectives to the writing of the project work
Below are the various steps in brief of the research design for this project.
Pilot Survey:
Pilot Survey was designed in Pune region to give an overview of the research and to check
whether industrial technocrats are responding that we needed. It might be possible some industries
are not in position to co-operate and not in position to leak the confidential information and to
modify the questionnaire if needed some welcome suggestions. The Initial draft is prepared which
covers variety of technical aspects then latter modified with the discussion with the industrial
experts and Thermax technical experts.
The Implementation of the Pilot Study was very crucial in this project, the whole professional
aspect depended on it, as it reflects the degree of fulfillment of objectives of project .
It played an important role because the persons interviewed were one of the senior key managers
from various departments in the industries.
Market Potential Survey for Refrigeration System
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Research Instrument:
An ideal research instrument must ensure reliability of data that are collected. A well designed
questionnaire was the main research instrument used in this particular project. While some of the
questions were open ended some were close ended too. Questions were designed to obtain the
information about-
Most attractive segment
Finding most attractive industrial sector which may use this type of refrigeration system.
Major Factors considered in the selection of the LTR systems
Opportunities for the waste heat recovery
Key decision Makers in purchasing refrigeration system in industry
Methodological Procedure the for the purchase of the LTR System
Importance Attached to product performance and reliability as compared to price
Awareness of the Ammonia Absorption system
Estimation of future potential users of AVAM in next five years
Interview planning: -
Interviews were planned as per planned schedule i.e. it was expected to finish the sample size
within stipulated time. Most probably it depends upon the getting appointment of that senior
managers. A necessary precaution was taken to make the interview the various departmental heads
and full information we ,quit meaningful to attain the objective.
Processing, analysis and interpretation of collected data: -
In this stage all the data collected were checked for any inconsistencies. This step proves quite
useful to remove or cross check any incorrect data which otherwise may prove factual during
analysis.
From the analysis the interpretation was possible and the various problems, which was required to
be explained, can be elucidated.
Finally the report containing all details was designed.
Market Potential Survey for Refrigeration System
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All matters discussed above have constituted the research design that was followed i
CHAPTER 7
SUMMER- TRAINING SCHEDULE
The project has to be completed in a period of eight weeks. Before actual commencement of the
project, time-schedule was prepared. It was as follows:
week
Operations 1 2 3 4 5 6 7 8
Introduction about
company
Basic knowledge
about Refrigeration
Systems
Introduction to the
project
Brainstorming about
project
Making Questionnaire
Pilot Plant Survey and
Quest. Modification
Industrial survey
Analysis &
interpretation of data
Preparation of rough
draft
Discussion with
project guide
Finalization of project
Market Potential Survey for Refrigeration System
26
CHAPTER 7
DATA ANALYSIS & FINDINGS
TABLE 1. Most Attractive industrial Segment
Name of the Industry Segment % of Respondents
willing to go for AVAM Bulk Drug (Pharma) 50
Fish Processing 100 Dairies 50
Cold Storage 100 Biotech 60
Meat Processing 100 Ice Cream Plants 80 Fertilizer Plants 25
Refineries 25 Petrochemicals 50 Pesticide Plants 80 Food processing 50
Market Potential Survey for Refrigeration System
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Most Lucrative Industrial Segment
0
20
40
60
80
100
120
1
Industry Segment
% o
f po
ten
tial o
f AV
AM
Bulk Drug (Pharma)
Fish Processing
Dairies
Cold Storage
Biotech
Meat Processing
Ice Cream Plants
Fertilizer Plants
Refineries
Petrochemicals
Pesticide Plants
Food processing
TABLE 2 .Preference of the customer while they buy the AVAM system
Attributes No. of companies No odor nuisance 3
Electricity cost 12 Maintenance cost 9 Simple to operate 3 Few moving parts 1 After sales service 5 Less Manpower 3
Less Space 8 Reliability of Product/techno/supplier 3
Availability of Spares 2
Market Potential Survey for Refrigeration System
28
Few moving parts2%
Simple to operate6%
After sales service10% Maintenance cost
19%
No odor nuisance6%
Availability of Spares4%
Reliability of Product/techno/suppli
er6%
Less Manpower6%
Less Space16%
Electricity cost25%
No odor nuisance
Electricity cost
Maintenance cost
Simple to operate
Few moving parts
After sales service
Less Manpow er
Less Space
Reliability ofProduct/techno/supplierAvailability of Spares
TABLE 3 . Opportunities for the waste heat recovery
Source
Percentage of the industries using the
Waste heat Recovery
Boiler Condensate Recovery 80 Exhaust gases from processes 40
Exhaust gases from DG Sets/Gas Engines 60 Jacket from DG Sets/ Gas Engines 20
Effluent Discharge 20 Flared Heat Capacity (only in Refineries) 100
Market Potential Survey for Refrigeration System
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Oppurtunities for the waste heat recovery
0
20
40
60
80
100
120
1
Boiler CondensateRecovery
Exhaust gases fromprocesses
Exhaust gases fromDG Sets/Gas Engines
Jacket from DG Sets/Gas Engines
Effluent Discharge
Flared Heat Capacity(only in Refineries)
TABLE 4 . Key Decision Makers
Authority Percentage Board of Directors 35 General Manager 35
Maintenance Department/ Engineering Department 15
Mixed 15
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.
TABLE 5. Methodology for the Purchase of AVAM
Attribute Yes No Appointment of Consultants 60 40
Public Invitation for Consultants 80 20 Systematic Method for short listing 40 60
Floating of tender 50 50
Key Decison Makers
Board of Directors35%
Mixed15%
Maintenance Department/ Engineering
Department15%
General Manager35%
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Methodology for the Purchase of AVAM
0%10%20%30%40%50%60%70%80%90%
100%
Appointmentof Consultants
PublicInvitation forConsultants
SystematicMethod forshort listing
Floating oftender
No
Yes
TABLE 6
Sources of Information
Source of information Contribution Books and periodicals 10 Consultants 20 Other users of refrigeration plants 40 Through attending seminars and exhibitions 10 Internet 10
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Others 10
Contribution
Through attending
seminars and exhibitions
10%
Internet 10%
Others 10%
Books and periodicals
10%
Consultants20%
Other users of refrigeration
plants40%
TABLE 7 - Comparative Analysis for the Importance of each Attribute
Market Potential Survey for Refrigeration System
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Comparitive Importance Analysis
0%10%20%30%40%50%60%70%80%90%
100%
Bulk D
rug
(Pha
rma)
Fish P
roce
ssing
Dairies
Cold S
torag
e
Biotec
h
Mea
t Pro
cess
ing
Ice C
ream
Plan
ts
Fertili
zer P
lants
Refine
ries
Petroc
hemica
ls
Pestic
ide P
lants
Food p
roce
ssing
Price
Reliability of theproduct / technologysupplier
ProductPerformance
Sectors/ Aspect Product Performance
Reliability of the product / technology
supplier
Price
Bulk Drug (Pharma) 60 20 20 Fish Processing 20 20 60
Dairies 50 20 30 Cold Storage 40 20 40
Biotech 70 15 15 Meat Processing 20 30 50 Ice Cream Plants 40 30 30 Fertilizer Plants 50 15 35
Refineries 30 20 30 Petrochemicals 40 30 30 Pesticide Plants 50 25 25 Food processing 25 50 25
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TABLE 8
Awareness Of AVAM while they buy Product
Attributes No. of Companies
Reliability 25
Ease of operation 20
Purchase Cost 5
Running Cost 10
Frequency of Breakdown 5
Awareness of AVAM
Purchase Cost8%
Running Cost15%
Frequency of Breakdown
8%
Ease of operation
31%
Reliability38%
TABLE 9 Future Potential of AVAM
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Attributes No. of
Companies Expansion of existing plant 20
Installment of New Plant 10
Replacement of existing plant 5
Future Potential of AVAM
Installment of New Plant
29%
Expansion of existing plant
57%
Replacement of existing plant
14%
CHAPTER 11
FINDINGS
From data collected from survey followings are the findings-
1) Most Attractive Segment
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Most Lucrative - Fish Processing, Meat processing, Cold Storage Lucrative - Ice Cream, Pesticides, Biotech Less Attractive - Pharma, Dairies, Fertilizers, Refineries, Petrochemicals, Food Processing
Most Lucrative segments are those which a sector in which production process operates below -40 OC and Lucrative are those which operates from -25 to -40 OC. Less Lucrative Sectors are those in which production process varies from industry to industry and process requirement changes from industry to industry.
2) Customers Preferences
Very Vital - Electricity Cost,Maintainance cost, Less Space requirement
Vital
After Sales service
Less Vital - Less Manpower, Reliability,No odour Nuisance, Availibility of Spares,
Simple to operate, Few moving Parts
3) Most Attractive Energy Optimization Techniques
Most Attractive : Flared Heat Capacity, Boiler Condensate recovery.
Attractive : Exhaust Gases from DG Sets
Less Attractive : Effluent discharge, Jacket from DG Sets. Exhaust gases from Process.
4) Key Decision Makers
Board of Directors and General Manager hold the key for purchase of refrigeration
Systems
5) Purchase Methodology-
General Trends - Appointment of consultant, Public Invitation for the Consultant
Off Trends - Systematic Method for Shortlisting, floating of Tender
6) Sources of Information
Major- Industrial Users, Consultants
Minor Internet, Books Periodicals, Seminars and exhibitions
7) Comparative Importance Analysis-
Various industries have different priorities as per their requirement- 1 ) Price - Fish Processing,meat processing,Refineries
Market Potential Survey for Refrigeration System
37
2) Reliability of Product and services- Food Processing, Ice Cream Plants
3) Product Performance Biotech,Bulk drug, Fertilizer and Pesticide, Petrochemcials , Dairies, Refineries, cold storage
8) Awareness of AVAM Reliability and Ease of Operation are the major positive point that industrial users know about the product Market is well aware of the Ammonia Absorption Refrigeration System.
9) Future Potential of AVAM
Majority of the AVAM Users are targeting for expansion of existing equipment
CHAPTER 11
INFERENCES & RECOMMENDATIONS FOR THERAMX
Market Potential Survey for Refrigeration System
38
Company should target most lucrative and lucrative industrial segment & design their
product mostly suitable for those sectors
Company should consider the careful attention towards Electricity Cost,Maintainance
cost, Less Space requirement and After Sales Service as these are the most attractive
preferences of the users.
Company should consider the Boiler Heat recovery, Exhaust gases from DG sets and
processes from design point of view of AVAM.
Company should create and maintain good relations and have in continuous touch with
these top management people from industry
Company should be promote their product in the industrial consultant group and
advertised product through proper channels
Company should promote their product by giving best through their product and services
to build a loyalty and brand awareness.
Different industries have different priorities so product should be of optimum mix of Price,
Reliability and Product performance.
Majority of industries are interested in replacement and expansion of existing plant if
Company is planning to make out retrofitted model in compression system or exchange of
Mechanical system by AVAM then it might be huge market fro the company
CHAPTER 12
CONCLUSION
In today s market most of the industrial users are using the mechanical compression
system; relative market share for the AVAM is negelible. Most of the industries are well
Market Potential Survey for Refrigeration System
39
aware of the AVAM and have trend towards adoption of the New Absorption technology.
Thermax had created the brand in the market for the refrigeration system operating below 0 OC to -29OC and one of the major player in the market.
There is huge potential for the Ammonia Absorption Refrigeration system especially in the
some niche industrial segments. At this age the industries are about to shift from
mechanical compression to absorption system provided they have proper solution provider
for their existing problems
From this industrial study it can be concluded that this product is having large scope in
Indian market at least for next 8 - 10 years.
CHAPTER 13
BIBLIOGRAPHY
1) Kothari C R : Research Methodology, 2nd Edition, Wishwa Publication,
Market Potential Survey for Refrigeration System
40
1997, Page Nos 99-100,117-150, 403-422
2) Kotler Phillip : Marketing Management, 9th Edition, Prentice Hall of India Pvt.
Ltd., New Delhi, 1997, Page Nos 113-1
Questionnaire No.
Survey of Low Temperature Refrigeration (LTR) application in INDIA (Range 25oC to 70oC)
Q1. Nature of your industry
1. Cold Storage
2. Bulk Drug
3. Coffee plant
4. Food processing
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5. Pesticide Plants
6. Refineries
7. Ice Cream Making Plants
8. Dairies
9. Fertilizer Plants
10. Meat Processing
11. Petrochemicals
12. Fish Processing
13. Formulation Plant
14. Biotech
15. Malted Food
16. Others (pls. Specify) ___ _____ _________
Q2. Give the marks out of 10 for the following: - (10 marks for the Most Important Attribute & 10 marks for the Most Satisfied for the current equipment)
Sr. No. Attributes Importance for you
Satisfaction level for the current equipment
1 Requirement of less space 2 Reliability of technology 3 Less manpower is required 4 Less capital cost 5 Less electricity cost 6 Less maintenance cost 7 Simple to install 8 Simple to operate 9 Less startup time 10 Few moving parts 11 Ready availability of spare parts in market 12 After sale service by the supplier 13 Reliability of the product / technology supplier 14 No odour nuisance
Q3. Your Overall Satisfaction with the current refrigeration plant is ( /100)
Q.4. Details of existing heating equipment (Boilers and Heaters) in your plant
Sr. No.
Make Capacity (Tonnes per hour - TPH)
Fuel used in the heating equipment
Pressure (bar or kg/sq. cm)
Temperature (deg. Celsius)
Cost of steam (Rs/Kg)
I II III IV
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V VI
Q.5. Opportunities for Waste Heat Recovery in your plant
Sr. No.
Source Type (gas/liquid & composition)
Temperature (deg. Celsius)
Quantity (unit as applicable)
I Boiler condensate recovery
II Exhaust gases from processes
III Exhaust gases from DG sets/ Gas Engines
IV Jacket Water from DG sets/ Gas Engines
V Effluent Discharge
VI Flared gas capacity (Specially for the refineries)
Q6. Please rate the following sources of information from where you get the information about the refrigerating plant like new technology, consultants, manufacturers, applications etc. (Pls. rate for the past experience and future also.) (Please give marks out of 10. Higher score means source of information used more by you.)
Sr. No.
Nature of source of information In the past 2 years
For the future (next 1 year)
I Books and periodicals II Consultants III Other users of refrigeration plants IV Through attending seminars and exhibitions V Internet VI Others (pls. Specify) ___
Q7. Please give your overall waightages for the following aspects while selecting the refrigerating equipment.
Sr.
No.
Aspect Weightage (distribute
marks out of 100)
01 Product performance
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02
Reliability of the product /
technology supplier
03 Price
100
Q8. Are you aware of Ammonia Vapour Absorption Machine (AVAM) or Ammonia Absorption Refrigeration (AAR)? Yes No
Q9. If the answer to Q8 is YES then please rate AVAM / AAR machines by giving marks out of 10 on the following factors. (For Reliability and Ease of Operation, 10 indicate High Reliability and Ease of Operation. For Purchase Cost, Running Cost and Frequency of Breakdown, 10 indicates lower Purchase Cost, lower Running Cost and lower Frequency of Breakdown)
Attributes Ratings (0 to 10)
Reliability
Ease of operation
Purchase Cost
Running Cost
Frequency of Breakdown
*Note : For FO, Please show this to respondents before starting the next questions.
Please note the advantages of Ammonia Absorption Refrigeration (AAR) over Compression Method are: - 1. High reliability 2. Lower maintenance costs due to no moving parts except a centrifugal pump 3. Waste steam / heat energy utilization driven technology leading to energy
conservation 4. Wide refrigeration temperatures (+10 to -70oC)
Q10. In view of above benefits, will you be interested in converting your existing refrigeration plant to Ammonia Absorption Refrigeration (AAR)?
1. Yes 2. No
Q11. If Yes, what can be the time frame for carry out this project work?
Current Year (2006) Next Year (2007) After 2 Years
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44
Q12. Is your organization planning to expand existing refrigeration plant(s) or install new ones in the range of 25oC to 70oC?
In the next 1 year in next 2-3 years in more than 3 years No plans
Procedure for buying a new or converting the existing compression plant to Ammonia Vapour Absorption refrigeration plant
Q13 Do you appoint consultants for procurement of the LTR plants?
Yes
No
Q14 If yes, do you issue a public invitation for the appointment of consultants?
Yes
No
Q15 Do you issue public invitation for selecting the technology supplier?
Yes
No
Q16 Is there a system to shortlist the technology suppliers?
Yes
No Q17 Do you float the tender for short listed parties?
Yes
No
Q18. Who is the Key Decision Maker for investment in the LTR plant?
Name & Designation __ ___
Q19. Who decides on the technology supplier of the LTR plant?
Name & Designation __ ___
Q20. Who short-lists on the technology supplier of the LTR plant?
Name & Designation __ ___
Q21. Who will supervise the installation of the refrigeration plant?
Name & Designation ___ ____________
COMPANY DETAILS
Q22 Name of the Company :
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Q23 Name of the group :
Q24 Office Address :
Q25 Plant locations :
Q26 The total sales of your company in the financial year 2005-06 (Rs. Lacs)
:
Q27 Name of the person :
Q28 Designation :
Q29 Telephone No. :
Q30 Email ID :
Q31 Years of experience in this field
:
Q57. Any suggestions / Comments?
__________________________________________________________________
___________________________________________________________________
__________________________________________________________________
Signature of the respondent___________________________
For official use only:
Field Officer : Devendra Shende Date of interview: ______________
Checked by: ________________________ Date: ________________________
ANNEXTURE 2
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46
LIST OF THE INDUSTRIES VISITED
1. Serum Institute Of India Ltd, Hadapsar, Pune
2. Hindustan Antibiotics Ltd, Pimpri, Pune
3. Ranbaxy Pharmaceuticals, Jejuri
4. Emure Pharma Ltd, Hinjewadi, Pune
5. Venkateshwara Hatcheries Ltd, Pune- Panshet road, Pune
6. Cipla Ltd, Kurkumbh, Pune
7. Reliance Industries Ltd, Kurkumbh, Pune
8. Reliance Industries Ltd, Thane
9. Lupin Pharmaceuticals, Aurangabad
10. Orchid Pharmaceuticals, Aurangabad
11. Wockhardt Pharmaceuticals Aurangabad
12. Gharda Chemicals, Mumbai
13. Glaxosmithlakane Pharmaceticals,Mumbai
14. United Phosphorous, Mumbai
15. Kwality Walls Ice Cream, Nashik
16. Dinshaw dairy Foods, Nagpur
17. Rich Quality Ice cream , Pune
18. Dynamix Dairy, Baramati
19. Allanasons Ltd,(Fisheries) Mumbai
20. Al gilani exports, Mumbai
21. Casterlock fisheries, Mumbai
22. Cadbury India, Talegaon Dhabhade , Pune
23. Cheminova India , Ankleshwar
24. Aventis Pharma , Goa
25. IPCA Laboratories, Aurangabad
26. Glenmark Pharmaceuticals , Mumbai
27. Indian Farmer Fertilizer Cooperative Limited , Mumbai
28. Bayer Cropscience, Thane
29. Rastriya Chemicals and fertilizers, Chembur, Mumbai
30. Deepak Fertilizers and fertilizers, Mumbai
31. Bharat Petrochemicals Corporation Limited , Mumbai
32. Indian Oil Corporation Limited ,Mumbai
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33. Hindustan Petroleum Corporation, Mumbai
34. Venus Petrochemicals Limited Thane
35. Blue blends Petrochemicals Mumbai
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