A CASE STUDY ON PROBLEMS FACED BY THE CUSTOMERS OF ROSTFREI STEELS PRIVATE LIMITED

A CASE STUDY ON PROBLEMS FACED BY THE CUSTOMERS OF ROSTFREI STEELS PRIVATE LIMITED

Consumer Exploitation

Consumer exploitation refers to taking undue advantage of consumers or a group of consumers by the sellers for their own benefit or purpose. Since consumers are large in numbers and are segregated they often find themselves in a weak position especially when there is a complaint regarding a good or service. Sellers never accept the responsibility for selling bad quality goods or any other misappropriation. This is the basis of consumer exploitation. There are various forms through which consumers are being exploited. Some of them are underweighting of goods, poor quality goods, duplicate articles, high prices, artificial scarcity, adulteration and impurity, false claims, lack of safety devices, poor after-sale services, rude behavior, and undue conditions, non-fulfillment of the sales guarantees, misinformation regarding the quality of the product and no timely supply of the goods.

Introduction

Rostfrei, are driven by Customer Oriented approach to providing World Class, Innovative, and Competitive storage solutions. We aim to provide Bulk solid storage and FM Global approved Liquid storage systems on a turnkey basis with our reliability-centered designs and technology. We shall rapidly transform Rostfrei into a truly global company, and outgrow our competitors while adding value to our customers, employees, and shareholders.

Rostfrei Steels with our steadfast commitment and timely delivery of various products like Liquid Storage Tanks and Grain Storage Silos, the company has set a new benchmark. Rostfrei Steel initiated its Indian operations in the year 2004, the company believes in delivering quality based performance with the team of its skilled workers and experienced technicians.

 The company has touched the apex of satisfaction and success with its well-established clientele and has earned expertise in fabricating and engineering steel structures in multiple dimensions. Multifarious services are offered to our revered clientele that includes designing, conceptualizing, manufacturing, supply, installation, erection, and completion.

 Problem - Consumer Exploitation Taken Place In The Tank Producing Company

A lot of customers who have been carrying out business with Rostfrei steels private limited has been complaining about them being exploited in different ways by the company. The customers are unhappy with the behavior of the company and are likely to discontinue their business.

• The major problems faced by the customers are:-

• Low-quality product used during the manufacturing of tanks

• Leakage problems

• Wrongly product delivery

• Overpricing of the product

• Late delivery of the product

• Usage of non-environmental friendly material while building tanks

Problems Faced In Detail

1. Low-Quality Material Used In Manufacturing Tanks

This is one of the most important reasons for the failure of most of the tanks. Many times companies outsource their fabrication to independent fabricators in third world countries. This helps them reduce manufacturing costs. However, they don’t understand that many of these countries don’t have stringent quality regulations. Hence they end up using poor quality materials. Hence a tank built from non-specified material may initially pass the test, but it may not last long while in the application. This way the customers are exploited unknowingly and in the end, it creates dissatisfaction among them as the money spent on the tank becomes worthless.

2. Leakage Problem

A few customers complained that after using the tank for a while there were leakage issues. The usage of low-quality material while manufacturing tanks is ultimately going to create leakage issues in them. It was observed that there were small cracks and holes in the interiors of the tank from which the fluid was coming out. The customers also complained that the material of the GLS tanks started to corrode and rust after a certain period of time. Adding more to it there were dispensing problems observed which again lead to the leakage of fluids from the GLS tanks.

3. Wrong Product Delivery

Complaints were also received regarding the delivery of the wrong product. It was observed that the company had a lot of clients order different types of tanks for different purposes and different fluids. Because of this the company sometimes used to unintentionally switch the product of two different clients and hence the wrong delivery of the product of the delivery took place. It was also noticed that due to time and material constraints the company used different measurements and materials to fulfill and deliver the order on time which ultimately leads to consumer exploitation.

4. Overpricing Of The Product

The customers also felt that the company is charging them unfairly as compared to the other companies and the rates going on in the market. It was also observed that the company was discriminating between their clients while charging for the same product. The customers were highly dissatisfied with the behavior of the company. The customers also observed that the company overpriced their product for their personal gains which ultimately lead to the exploitation of the customers.

5. Late Delivery Of The Product

The customers complained about the delay in the delivery of their product several times. It was observed that though the company was falling short of time and material it was taking new orders from the clients. Hence the machinery used for the building of tanks was overburdened because of which there were wear and tear of machinery. Adding more to it the company was delivering unfinished and low-quality products due to time and material constraints.

6. Usage of Non Environmental Friendly Material While Building Tanks

During that quality control check it was found that the company was compromising with the material used while building tanks. It was observed that the materials used were highly toxic to the environment. Also during the quality control check it was observed that there was no proper waste management done. Harmful contaminated water was released without being treated first. Hence once again it lost its customer's trust.

Analysis

From the above problems which are faced by the customers from the company, it can be analyzed that the customers absolutely not satisfied with the products and the services provided by the company. It is also seen that there is a very high possibility of a company losing its customers and goodwill in society. Hence the company should re-evaluate itself and should take corrective measures in order to have a stronghold over the customers and gain back its reputation in the market.

Remedial Measures To Be Taken

• Consumer protection act 2019

• Discontinuance of unfair practices

• Always search for previous reviews on the product before buying them

• Have a proper warranty and guarantee for the product purchased

• Produce quality products

Remedial Measures In Detail

1. Consumer Protection Act 2019

The consumer protection act 2019 has replaced the consumer with the three-decade-old Consumer Protection Act, 1986. The new Act proposes a slew of measures and tightens the existing rules to further safeguard consumer rights. The Act has a lot of new benefits that will help the consumers fight for their rights. Hence the consumers can always take their complaints to the court with the help of the act and can have justice to themselves.

2. Discontinuance Of Unfair Practices

The consumer can always file a complaint against the unfair practices carried out by the company. Moreover, the company should stop that kind of practice in order to gain the trust of the customer and maintain goodwill in the market. Unfair practices will definitely harm the reputation of the company in the long run.

3. Always Search For Previous Reviews On The Product Before Buying Them

Instead of falling prey to the companies selling low-quality products, the consumer should always look out for previous reviews and complaints against that particular company or the product. The consumer should also compare the companies and products sold by them and then come to a particular decision. This will ensure that all companies maintain good quality standards so that they can have a fair share in the market.

4. Have Proper Warranty And Guarantee For The Product Purchased

The customers should always see to it that they have the proper warranty and guarantee documents for the product. This will at least help them minimize their loses and replace the product if anything happens to it within the given time frame.

5. Produce Quality Products

If the company wants to stay in the market for a longer period of time then it must produce quality products in order to gain customers and have a good reputation in the market. Quality products always attract more customers and there is a positive word of mouth through the customers as well.

Conclusion

If Rostfrei steels private limited wants to stay in the market and gain customers it is very important that it satisfies the customers in all aspects, be it the material used, machinery used, pricing of the product, delivery of the product, etc. No compromise should be made while manufacturing the product. The customers have the power to take the company to new heights as well as lead to its downfall. Hence consumer satisfaction should be given the utmost importance.

GLS TANKS - ROSTFREI STEELS PRIVATE LIMITED

GLS TANKS - ROSTFREI STEELS PRIVATE LIMITED

Abstract

This case study is about how a GLS tanks Rostfrei steels Private company was not up to the mark as they have been saying.

Since this was a major need at that time we thought to go for the best ones in the market. Everything went smoothly from the choosing to paying but the problems persisted after that.

Statement of the Problem

• Leakage Issue:- The day when the tank was ordered it did promise to deliver it under 1 week of purchase. But the opposite happened. It took almost 2 weeks to deliver and 2 days to deliver that.  The late shipment caused a lot of problems as the expected time was not maintained.
• Wrong Item Delivered:- Now when the item was finally after all these hurdles dispatched to our house. It turns out to be the wrong one was transported. We called up the company service helpline to convey the problem and get it sorted. They explained to us that it would be changed in a couple of days.
• Leakage Issue:- When the item was changed. A new obstacle persisted. After installation, for a few days the capacity of water it was to be held, the water somehow became less after using it till 12pm. When checked into it, we saw a leakage difficulty. Again we had to call the helpline and had to tell them about another issue.

Summary

After suffering through all this misconduct we finally get a whole learning aspect. Always check through and keep track on what you are buying. Be careful about where you buy it.

Increased access to safe drinking water has benefitted millions in the developing world. Yet microbiologically safe water at the point of consumption continues as a challenge for improving public health. In many developing countries, inadequate treatment of improved water supplies at the point of distribution commonly contaminates water with infectious disease‐causing pathogens. Drinking water also may become contaminated during collection, transport, and storage due to poor hygiene conditions or failing infrastructure. In response, the private sector has developed decentralized water treatment technologies for development agencies and non‐governmental organizations to distribute household water quality devices for the purpose of improving drinking water quality and mitigating water‐borne health threats. Rostfrei steels Private Limited interventions are significant. Some estimate that over 1.5 billion people from low‐ and middle‐income countries practice some form of Rostfrei steels. One example of the technology is point‐of‐use (POU) or point‐of‐entry (POE) household water filtration devices, through which water is filtered before the point of consumption or conveyance into the home.

No study to date, however, critically examines the processes through which the introduction of unconventional drinking water provision, such as POUs or POEs, intimately changes hydro‐social relations and peoples' role in water governance. We recognize that the strategic relationships through which the state, researchers and the private sector develop household water technologies and enroll users requires substantial institutional effort. Moreover, very few studies examine the discursive and material means to ‘produce’ not just the technology or device but, in effect, the water device user as consumer and subject. Therefore, in this article, we fill this gap by examining the potential role HWTs play in restructuring socio‐technical relations of the state and market in terms of potable water provision for marginalized communities.

We draw on the production, circulation and application framework outlined to examine POU/POE devices in an unconventional context. We examine how household water filtration devices shifted from a technological fix to unsanitary drinking water conditions in the global South to a legitimized, long‐term solution for that chronically lack secure drinking water. Our case study is a half-million-dollar government‐sponsored pilot program to investigate the feasibility of household water treatment systems to rapidly mitigate water insecurity in these communities. The federally funded pilot project contracted university engineers and public health research scientists to assess the potential uptake of a range of POU and POE devices by residents.

CASE STUDY CUSTOMERS GETTING CHEATED BY ROSTFREI STEELS PRIVATE LIMITED

CASE STUDY CUSTOMERS GETTING CHEATED BY ROSTFREI STEELS PRIVATE LIMITED

INTRODUCTION

Starting from the point that all have Rostfrei steels private limited and the company, which is in a position to fulfill that Rostfrei steels took the advantage and tries to demand at its discretion. They are selling their thoughts to the manipulated advertisements. The company should be B2C to retain its customers. Sometimes, a customer loses his sight on how a purchased product and its company will run in the long run without getting cheated. There are communal occurrences of how customers are deluded by companies focusing on quantity instead of quality.

We can analyze this peculiar trend through the case study of tank manufacturing companies. Tank manufacturing companies are the organizations that equip the assistance of necessary storage varying from industrial materials to homely storage. They fall under a group of classified daily consumer services that creates a base for constructive need. Even for shipment of goods and services that creates employment, storage tanks create the initial point of the chain, thereby making it as the agitation point of consumer necessity. As an outcome of the need and demand for human consumption followed by the sale of the product, it makes the companies do profitable trade and often the consumer victim of this invulnerable trade. The power of making the customers getting used to the particular product and artificial recognition and really need is the reason why customers are getting cheated.

HISTORY OF THE BUSINESS & SERVICES

The popular saying “necessity is the mother of invention” correlates with the necessity to hold substances, materials, goods, chemicals, etc. created the basic expansion of the tank manufacturing industries. Thus, the industries provide the basics such as:

• Gas storage tanks
• Oil storage tanks
• Silo Grain storage tanks
• Pressure tanks
• GLS Water storage tanks

The most common form of tanks generally used by most of the public is GLS water storage tanks. They are generally placed on a roof tops and indoors and is accessed using pumps to draw water for regular supply. The Rostfrei Steels Private Limited is the world’s largest producer of GLS water tanks. The other elements which are used to make water tanks include a plastic form (polyethylene and polypropylene), fiberglass, concrete, stone, steel, etc. The tanks used to contain industrial materials and erratic gases are often insulated from inside and made of steel bending to avoid melting and rusting.

As tanks form an essential thing in every household and industry, it should be of absolute quality so that it would be sustained in the long run. However, it happens with most of the companies that once they reach the peak of their success, they forget about market stability and focus on quantity instead of quality. Their prime aim remains to earn more revenue after their success. This results in a number of consumer complaints which indeed turns to customer dissatisfaction and the company loses its customers.

EVALUATION OF THE CORE PROBLEMS

In order to pen down the problems, we need to keep in mind a number of things such as how they arise, why they are the hindrance to customer procurement, how it is affecting the business reputation and sales and in the last find out the solutions for the same.

For tank manufacturing industries, their problems were:

1. Late delivery of tanks:- Once the orders are placed and the advance amounts are received through online transactions, the organization thinks that their work is over. They do their work with ineffectual production by paying less to their workers, or keeping the production at hold. This type of behavior is the case of disapproved of the concern which leads to bad supervision and monitoring. In addition, the non-availability of transportation, carelessness on the part of employers and workers result in delayed delivery.
2. Low-quality Products used during manufacturing:- Another problem faced by them includes using inferior quality supplies during manufacturing resulting in degraded quality tanks. These tanks lack durability and endurance resulting in leakage problems, rusting, breakage, low strength, etc. This is usually done to reduce production costs and maximize profit. Often, the produce tanks which look superior from the outside but vague in reality. This often leads to accidents resulting from pump failure while drawing water. In the case of industries, it can even lead to fires and blasts.
3. Leakage Problem:- After the few days of use of the tank, it starts leaking leading to loss, accidents and storage failure. It usually happens because of the low quality of products. Leakage of the tanks is the extent of its failure to use in the long run and percentile damage to customer’s purpose and investment.
4. Nut & Bolt Galvanization Issues:- The joint of a product needs to be strong enough to withhold it. However, lack of using proper galvanizing materials and low-quality supplies results in weak joints and it hinders the tank's performance in the long run. It depicts the carelessness in monitoring and testing the product.
5. After Receiving the amount, non - receivable of calls:- The major problem is a lack of efficient customer support management. It happens with most of the companies that they don’t take the calls from the previous customers after the amount are being credited in their account, they start  giving less importance to them and tries to build new customers.
6. The wrong item Delivered:- If the company delivers the wrong item to its customer, they don’t give importance to that matter and they don’t think that it is their duty to give them the right order but instead they say that it is their customer problem, not the company.

INSTANCES OF REAL-LIFE ISSUES

In order to identify the feasible exertion of the major callousness from the part of the tank manufacturing companies that affect consumer satisfaction results in losses and accidents, it is important to learn from real-world cases.

A study by James L Chang and Cheng Chung Lin published on the accidents caused by low-quality storage tanks outsource that: “the results show that 74% of accidents occurred in petroleum refineries, oil terminals or storage. Fire and explosion account for 85% of the accidents. There were 80 accidents caused by lightning and 72 caused by the negligence of humans including poor operations and maintenance. Other causes were an equipment failure, sabotage, crack and rupture, leak and line rupture, etc. Most of those accidents would have been avoided if good engineering has been practiced.”

PROBABLE SOLUTIONS

The focus should be on real-time solutions that can protect the environment and creates a rich experience for the users. The series of the key problems result in earning a bad goodwill for the organization making the customer dissatisfaction and losing faith by the customers.

GENERAL SOLUTIONS

It should be the target of any company to improve its efficiency, learning from its fault and implementing the requirements based on the customer’s feedback. The prime importance should be given to the quality rather than quantity to resource a brand name in the long run. To avoid accidents, the company should focus on rationalizing the priorities of the product while manufacturing and serve their interest.

THE COMPANY IMPLEMENTED SOLUTIONS

Firstly, the tank manufacturers should improve their delivery facilities by prioritizing their premium customers, starting with a small group initially. Once they figure it out to deliver on time, then they can think of expanding its customers.

Secondly, their main aim should be on improving the quality of the raw materials. Once the foundation stands strong, it can produce durable products that help them in customer acquisition. Good quality not always mean high costs but rather it ensures that suppliers are trustworthy and do not perform adulteration.

Thirdly, they can prevent leakages by using superior quality raw materials and by implementing efficient monitoring and testing. It is highly important to check the products carefully before it reaches out to customers.

Fourthly, handling the issue of galvanization is important to avoid accidents. Thus, checking the product and testing it several times prior to final use is mandatory. Also, they can provide third party services to ensure the testing process efficiently and stamped to be safe for use.

Fifthly, the duty of the company is to stabilize and respond to customer grievances. The customer is the king and making the king happy can increase the value of your product. This will captivate the market brand value of the product and helps the business flourish in the long run.

Last but not the least, if the company is delivering the wrong item by mistake, then it is the duty of the company that the customer gets its desired product without any trouble and at the earliest time possible. This will create a good impact on the customer about the services of the company.

RECOMMENDATIONS

As demand increase, so do a competition and in the highly competitive market, only the survivors of the long run will emerge as winners. So the companies alongside their business expansion should also focus on product evaluation and customer satisfaction. The focus should be to deliver high-quality products that fetch the brand name its weight and goodwill. Avoiding customer losses and major accidents should be the prima facia of the company motto so as to collaborate on humanity grounds, winning the hearts of clients. The companies should begin with understanding their weaknesses, enlisting flaws, draw solutions, implement the realistic ones and encompass insurance to their customers on their products. With the passage of time, if the company sticks to these recommendations, it will emerge as a winner in the long run.

GLS Tanks Cheated Customer By Rostfrei steels private limited

GLS Tanks Cheated Customer By Rostfrei steels private limited

INTRODUCTION

Not being able to deliver the said services or products are no less than consumer fraud and should have a substantial consequence to it. Consumer fraud is something people are afraid to fight against because generally, they are fighting against a million-dollar company and they do not stand a chance to win the case and get the desired justice. This case study is about a consumer fraud experience that I faced by a water tank manufacturing company.

OBJECTIVE

• To familiarise you with consumer fraud
• To spread awareness against consumer fraud and the next steps, if you are a victim
• To get substantial results for my cause

PROBLEM STATEMENT

I recently became a victim of such fraud and want to lay down the facts and occurrences of the case in front of you. On March 10, 2018, I ordered a GLS /GFS water Tank from Okhla, Rostfrei steels Private lImited with a misconception that it is a good quality product and I paid a price of the original one i.e., INR 5,500. 

Here are some solid details that support my cause.

CASE

Storage Capacity - 1000KL

Warranty - 1 year from the date of purchase

Name of the company - Rostfrei steels Private Limited

Dealer Name - Subodh Kumar

Company Location - 211, Okhla Industrial Estate,

Phase - III, New Delhi-110 020, India

Date Of Purchase - March 10, 2018

CASE 1

• So, now that we have put some light on the facts and logistics, let’s get into the details of the case and how I was misled by this dealer. The first thing that went wrong was that the delivery of the tank was delayed by 21 days. It was delivered on the 2nd of April rather than being delivered on the 11th of March. The late delivery would have been a problem if the dealer had informed us prior to the incident. He behaved very poorly on his part by not giving any information or heads up when we had already made part payment in advance.
• The second incident came as a shocker to us as 1 month after I had purchased the water tank, it started leaking. When a middle-class person like me invests in something, we do complete market research and purchase the best quality products within our budget. It is frustrating when you take the pain of going through all that and end up getting a damaged good.
• The problem of leakage was encountered a few days after I had noticed how fast the water is getting drained. The problem continued for a while before I actually found out the issue. As soon as I found out that there was a leakage problem I immediately called Rostfrei steels Private Limited. 

CASE 2

1. Meanwhile, my cousin who had ordered the same GLS water tank from the same company but the different stores told me how good of a service he received when he purchased the water tank. 
2. My brother had purchased a GLS/GFS water tank from the same company but a different dealer and deal worked out pretty well for him and he is one of the happy and satisfied customers of the Rostfrei steels Private Limited.

FURTHER ACTION

When this incident came to my knowledge, I decided to contact the Rostfrei steels private Limited. They asked me a few details i.e., my invoice number, consignee name and the date of purchase. I narrated the whole incident to them. I gave them the details of the dealer as well and when they searched their database to check whether the dealer is authorized or not they found that he was not an authorized dealer. When this came to my knowledge, I was in complete shock and felt cheated.

I was in utter shock as I was completely thrown off guard. I still kept the faith and contacted my dealer and he straight away lied to my face by saying that the shop is legitimate and authorized and refused to provide a replacement for my product. Since, the product was not original, the customer care of the company couldn’t do much either which is why decided to file an FIR and summon the dealer for doing a consumer fraud and selling duplicate low-quality products in the name of such a legitimate company.

SUBSTANTIAL RESULTS

By comparing the two cases I came to the conclusion that the Rostfrei steels Private Limited was very unsupportive and did everything in their power. They couldn’t exchange the water tank as they were bound by the company policy. The policy says that the hardware exchange is only possible for the original products of the company. I was asked to visit the Rostfrei steels private limited in Okhla phase 3 where I might get an exchange but that didn’t help either as the product was a duplicate one.

I am still fighting the case in the hope of justice and substantial results. But the conclusion is that the Rostfrei steels Pvt Ltd company is at fault in this case as they did everything in their power to help but it was simply not in their hands. It is important to verify this type of company first. There are some suppliers who are authenticated and it is not hard to catch hold of that information. 

Rostfrei steels private limited - GLS Tanks

GLS TANKS - Rostfrei steels Private Limited

ABOUT ROSTFREI STEELS PRIVATE LIMITED TANK COMPANY

Rostfrei Steels Private Limited Tank Company is established in 2000 with its main office in Okhla and five more branches in other states of India. It was found by Mr. A to supply different kinds of tanks to their respective customers.  With years of experience in the market of GLS & Silo tank suppliers, they earned goodwill which attracts customers to date. Rostfrei steels Private Limited Company supplies GLS/GFS tanks, Silo grain tanks, corn silo tanks, etc.

Nature of Business- Manufacturer and seller

Delivery Location- India & Across India

After considering their experience in manufacturing the tanks and supplying the same, for the purpose of construction Rostfrei steels private limited, one of the leading construction companies in India ordered five GLS/ GFS  and storage tanks at their construction site.

Each of the tanks was of 5000 liters GLS Tanks of 1000KL ordered on 31.03.2018. 

The order was made after considering all the factors of construction and the requirements of the people. 

It was clearly mentioned by the customer that they require the water and the storage tanks within five days of their orders i.e. by 05.04.2018. ABC Companies agreed to the same and accepted a 30% advance amounting to RS. 60,000. 

ISSUES OF THE CASE

The problem arose when the delivery of the tanks was not made within 5th April 2018. M&V Construction Company enquired the supplier the reason for the delayed delivery. But, the Supplier failed to provide any valid reason for such delay. The tanks were delivered after 11th April 2018. The supplier explained that due to the absenteeism of their delivery boys they failed to deliver the tanks on time.

After the delivery of the tanks, several other issues came forward:-

 It was found that out of five tanks 3 tanks were defective. Five nut-bolts in two tanks were found defective. They had galvanization issues that could not be managed by the other mechanics on the floor at an instance. 

 When the tanks were tested by the mechanics on the construction site it was found that the tanks faced quality issues. Most of the parts of the tanks were used product and damaged.  Even after explaining the reason for using the product the supplier did not manufacture the tanks with good quality parts. the pipe used inside the tanks were damaged and are found rusted.

Due to the damaged parts, most of the tanks faced the leakage issue. While test use of the tanks, the tanks failed to store the water for a longer time and the leakage issue emerged.

The supplier was contacted many times but the supplier did not respond to any of the calls and the complaints lodged. Although the whole payment of 2lakh was made on time, ABC company did not respond to any of their complaints. Since the order was placed in a different state, the state branch of the same denied taking the responsibility. 

 Since the work of construction cannot be stopped for a longer period, XYZ Co started working with the damaged tanks for the purpose of their construction after applying certain safety measures. They faced several issues regarding the same. 

Although they charged a penalty and filed a case for the breach of law against ABC Company, they had to get a new set of storage and water tanks to complete their requirements of construction.  

M&V CO. demanded twice the amount of the payment from the supplier as they failed to keep their promises. 

Held that: Rostfrei steels private company is responsible and according to the decision they are required to pay the whole amount as a penalty to the construction company.

CASE STUDY OF AZAMGARH BY ROSTFREI STEELS PRIVATE LIMITED

CASE STUDY OF AZAMGARH BY ROSTFREI STEELS PRIVATE LIMITED

Rostfrei steels private limited| It is a story of a small town called Azamgarh in Uttar Pradesh, India. Azamgarh was considered to be India’s one of the most remote places where even the basic necessities of life were barely available. The whole village was engaged in producing the bare necessities of life. Its relations with the outer villages and districts were quite limited. People there still followed various primitive techniques for producing commodities.

Raja was a landowner of a 4 acre land in Azamgarh itself. He was not like the other villagers who were satisfied with their regular routine jobs of farming. He always wanted to do something big in life and it was his time to achieve it. He with a determined mind and his will power decided to set up his own manufacturing unit of Rice-based wine which was made after processing rice at an extremely high temperature of around 200 degree centigrade.

For this, he required a piece of land of about 2 acres, about a 100 laborers and necessary equipment including 4 big-sized tanks in which the rice would be processed and converted into wine. Raja keeping all the above requirements in mind decided to acquire 2 acres of his land for the setup of the factory. For laborers, he decided to hire the seasonally unemployed farmers who when given perks would work full time. For his third requirement i.e. of equipment he contacted Rostfrei steels private Limited in a city near Azamgarh and all his requirements were fulfilled except the Tanks. He searched for the availability of the huge stainless steel pressurized tanks across Uttar Pradesh but was deprived of availability.

 He then after a long search came to know of one such company through a broker. It was the only company which manufactures such type of Tanks not only in Azamgarh but In India. This company was situated in a district of South India called Cochin. The name of this company was Rostfrei steels private Limited. He got a deal cracked with the Rostfrei steels private Limited company i.e. 4 GLS tanks for a sum of 55 Lacks which almost drained all his savings and he also had to sell a half-acre of his total land which was heart-wrenching for him. But he knew that he will recover the amount as soon as his factory starts.

Since the company was situated far from his place he couldn’t visit there, but his broker shouldered all the responsibility to carry out the deal in a fair manner. Trusting his broker Raja agreed to the terms and conditions of the company Rostfrei steels private Limited and paid a sum of Rupees 10 Lacks as an Advance token. The deal was confirmed after the advance token was received by the company.

Raja now got engaged with the construction work and arrangement of other necessities. During all this, a time span of about 45 days passed and the date of the consignment to be received by Rostfrei steels Private Limited has also passed and the consignment wasn’t received yet. This was a serious concern for Raja as he has finalized the installers to install the tanks and the date was decided but now because of this wait, Raja had to suffer loss. Still, Raja remained calm and tried to contact his broker for arranging for a fast track delivery. The broker arranged for it and the consignment was received finally.

But when the covers were removed it was found that the wrong item has been delivered, i.e. Raja where he ordered for GLS Tanks got normal MS tanks instead. After a long process of discovering the cause it was found that Raja’s consignment was exchanged with the consignment of Mr. Shyam which was to be delivered about 400 kilometers far from Azamgarh.

This process of exchange was compensated by Rostfrei steels private Limited by re-exchanging the Tanks and it took another 5 days for Raja to receive his consignment.

The consignment now received was the correct GLS Tank one.  The installation process started and Raja was supposed to pay a sum 20 Lakh Rupees which he paid and now the remaining 25 Lakh rupees were left which were to be paid after the installation work is done.

During the installation process it was observed that there was a dent present on the base of the tank with a small crack on it which would further result in leakage of the content to be filled. Raja hence informed Rostfrei steels Private Limited and a technician was sent immediately to solve the problem. All this took a time of 4 days and the planned inauguration was getting delayed because of the silly mistakes carried out by Rostfrei steels private Limited during the production of the Tank.

Finally, it was the day when the working of the plant was to be examined. Raja was nervous. All his life efforts and hard-earned money were on stake. The plant finally started with no fault in the beginning but gradually it was vigilant that the temperature which was expected to reach 200-degree centigrade was constant at 125-degree centigrade. When looking for the cause, it was discovered that the material’s composition with which the tank was made lacked the percentage of Chromium which was lesser then the standard.

All this created a serious problem of indebtedness for Raja which further led him to shut down his industry and suffer a massive loss of 50,00,000 INR. For all this loss Raja blamed and sued Rostfrei steels Private Limited for their unprofessional attitude and incompetent service which led Raja to this downfall.

Rostfrei steels Manufacturing Companies- A Case study on the consumer services problem

Rostfrei steels Manufacturing Companies- A Case study on the consumer services problem

Executive Summary

Rostfrei steels-GLS Tank manufacturing Company, in manufacturing – Tanks to consumers/customers. Recently, there have been several consumers complaining about the quality of the services company is offering and the quality of their tanks/products. The case study explains the issues, problems that the consumers have been facing & complaining about and the possible reasons for the case study.

Introduction

Rostfrei steels-GLS tank Manufacturing Company is in the business of GLS/GFS/SILO  Tank Manufacturing for decades in the country. The company has established its brand in the country due to its prompt services since 2000. Customers appreciated the quality of the product as well as the services so far which made us go for the said brand of the company. These products were known to be durable for at least 15-20 years. The product covered warranty for five years from the date of installation, the condition was free door delivery, installation (payable) on full payment at the time of booking the product. 

Challenges

About a year back, I had purchased the tank over online for the first time. It’s not been a year that the product developed leakage & I am not satisfied with the quality of the product. When I raised a complaint to their customer service, they registered the the complaint, also they informed & insisted I write a detailed mail to them. When I did, expecting prompt response instead there was no response, till date there is no response from the company or its customer service center. I checked with the local dealer who sells their product to see if the problem existed only with the piece supplied to me or else others, but, the same problem existed with most of the cases, the company takes its own time to attend to the complaints lodged by over the counter customers & always have a good record maintained of attending bulk buyers like architects, contractors, etc. when enquired with some of the customers they complained of the warranty and home service, others stated that they were deceived on the payment/delayed deliveries. The company told them to pay upfront but failed to deliver the product on time and when delivered, some of the products were faulty. After talking to a few dealers, it was also found that such problems exist mainly with the one time, over the counter - single-time purchasers and this hardly happens with bulk or regular purchasers, they do not have complaints on the product or services as such.

To summarise, the problems pointed out are:- 

• The decline in the durability of the product, quality not assured,

• A decline in the services promised and delivered

• Lack of care to the counter buyers/single time purchasers

• Seems company concentrates on bulk sales rather than quality sales

Results expected

The consumers who purchase the product once and the single piece is not cared for, seems they do not matter for the company any more as they have established a name in the segment, to keep the good sales volume focus is more on bulk buyers. This approach is wrong and needs a change by the manufacturer. John Wanamaker states “When a customer enters my store, forget me, he is king.” many other famous quotes state that a customer is king, the same must be looked upon and every customer must be treated the same.