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.