1 / 16

Future scenario in Bitumen market

Future scenario in Bitumen market. Roorkee IRD. Panipat. Moradabad CFA. Mathura IRD. Jaipur IRD. Lucknow IRD. Siliguri COD. Jhansi IRD. Guwahati IRD. Barauni. Ranchi CFA. Bhitoni IRD. Nandesari IRD. Tatanagar CFA. Ramnagar IRD. Hazira IRD. Mandir Hasaud IRD. Somnathpur IRD.

peta
Download Presentation

Future scenario in Bitumen market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Future scenario in Bitumen market

  2. Roorkee IRD Panipat Moradabad CFA Mathura IRD Jaipur IRD Lucknow IRD Siliguri COD Jhansi IRD Guwahati IRD Barauni Ranchi CFA Bhitoni IRD Nandesari IRD Tatanagar CFA Ramnagar IRD Hazira IRD Mandir Hasaud IRD Somnathpur IRD Bhillai COD Cuttack COD Vashi HINCOL Sambhalpur COD Simliguda COD Mumbai Refinery Behrampur COD Jagdalpur COD Desur IRD Visakh Refinery/Packing plant Mangalore Terminal Irungatukotai HINCOL Irgur IRD Kochi Terminal

  3. Production capacities of various refineries The figures below are the peak production capacities and vary form month to month.

  4. Bitumen (3.3 MT) Bulk (0.67 MT) Packed (2.4 MT) All India Market size of bitumen. Under developed states Eastern States Hilly regions

  5. Political factors • Pricing of Bitumen • Import policies • Government policies-emphasis on infrastructure development, area of development

  6. Economic Factors • Seasonal product, so weather issues. • Related Taxation issues • Specific industry factors ??????? • Market routes & distribution trends-ex-mi, delivery assistance and delivered supply. • Customers-HINCOL,PWD,DGBR,DGS&D and Pvt. contractors

  7. Social • Demographics • Consumer choice defines the choice of product 30/40,60/70,80/100,CRMB,NRMB, PMB • Attitudes to foreign products and services • Does language impact upon the diffusion of products onto markets. • Do the population have a strong/weak opinion on green issues

  8. Technological • Technology is vital for competitive advantage, and is a major driver of globalization. • Is it possible to provide cheaper and better quality products with the available technology. • Do the technologies offer more innovative products and services. Innovative potential • Do we have technology for a new channel of communication with consumers, transporters eg some tracking system. Information and communication • Funds required for Research of new products

  9. Coming up projects/expected to complete by 2007/08 • Approx 2557km of GQ • Approx 3490 km of NSEW • 272 km of ports • Other projects 289.79km • Gujarat state highways – 3689 km

  10. Approx length of major upcoming projects is 10298km • Quantity of bitumen used in 1km long road is 47 MT • Therefore total bitumen requirement is • 10298*47=484006 MT • Targeting a mkt share of 20% our share of business would be • 0.20*484006=96801.2MT

  11. Since we have the details of the projects we can instruct our sales officers to start aggressive marketing for business in those areas (referring to the list mailed you before)

  12. Porter’s five forces model Threat of New Entrants Shell Bargaining Power of Buyers Refinery Industry Competitors IOC,HPC,BPC Bargaining Power of Buyers PWD,DGBR, Pvt contractors Threat of Substitutes Cemented roads Green Bitumen

  13. Bargaining power of supplier The bargaining power of supplier is low because bitumen is produced as a residue during the process of getting lighter cuts. And producing Furnace oil means a loss of diesel,which is not a lucrative decision for the refinery.

  14. Bargaining power of buyers • Major buyers of bitumen are the PWD’s, DGBR, DGS&D, and Pvt. Contractors. Buyers have a moderate bargaining power due to limited number of players , these buyers include only private contractors. Discount offered depends upon the Qty. required, Payment terms and the discount offered by the competitor. But it depends

  15. Threat of substituteIt is moderate as asphalted roads are facing competition from cemented roads. Asphalted roads are easy to lay and are more durable Also,they can be repaired in patches which is not so in case of cemented roads. Threat of new entrantsThe threat of new entrant is moderate or can be described as low because the industry is highly capital intensive.

  16. Industry rivalry Moderate, because the business is divided broadly by the government. But apart from that, the companies are offering discounts more than the competitor to attract their customers.

More Related