B C Jindal Group streamlines operations and cuts costs with SAP and IBM

Published on 22-Jun-2011

Validated on 01 Oct 2013

"SAP solutions and IBM infrastructure contributes to direct business cost savings, and enables B C Jindal to expand into new markets rapidly and cost-effectively." - Mr. R D Malav, Vice President of Information Technology, B C Jindal India

Customer:
B C Jindal Group

Industry:
Energy & Utilities, Industrial Products

Deployment country:
India

Solution:
IT/infrastructure, Enterprise Resource Planning, Information Infrastructure, Infrastructure Simplification, Optimizing IT, Optimizing IT, Virtualization, Virtualization - Server

IBM Business Partner:
SAP

Overview

The B C Jindal Group of companies is one of the leading business conglomerates in India. Founded as a manufacturer of steel pipes and fittings, the group has diversified into the manufacture of cold rolled strips and galvanized sheet steel, with new businesses in polyester, metalized and biaxial films, and photographic goods.

Business need:
B C Jindal Group wanted to be able to control operations, cut costs and start new business ventures to meet the needs of the rapidly growing Indian economy. With a mix of SAP ERP, SAP NetWeaver Business Warehouse, SAP BusinessObjects, Lotus Domino and self-developed CRM and document management applications, the company needed to find a commercially cost-effective way to roll out business solutions across a diverse group of companies.

Solution:
B C Jindal standardized its SAP solution infrastructure on the IBM Power platform. The most recent deployment is an IBM Power 750 Express server with POWER7 processors, supporting seven virtual servers to run multiple core business applications. The company switched from manual backup processes to IBM Tivoli Storage Manager, with IBM System Storage DS4700, DS3950 and DS4300 disk arrays and IBM System Storage TS3494 tape library. B C Jindal deployed IBM Systems Director to manage both IBM and non-IBM servers.

Benefits:
Near 100 percent uptime for core business applications on the IBM Power 750 server. Reduced administration workload that saves one full-time employee equivalent. Saved around 50 percent of predicted capital expenditure thanks to virtualized servers for key SAP production and other applications. Increased user productivity through automated data backup across around 30 servers . Savings of more than 60 percent of tape capacity thanks to advanced data compression.

Case Study

The B C Jindal Group of companies is one of the leading business conglomerates in India. Founded as a manufacturer of steel pipes and fittings, the group has diversified into the manufacture of cold rolled strips and galvanized sheet steel, with new businesses in polyester, metalized and biaxial films, and photographic goods.

The newest corporate venture is Jindal India Thermal Power Limited (JITPL), serving the huge demand for electricity in the rapidly expanding Indian economy. JITPL is already in the process of setting up 1,800 MW from its first plant, and this new company employs some 4,000 people.

B C Jindal Group has been running SAP applications for some years, with IBM Power servers selected as its strategic platform. To make new ventures such as JITPL commercially possible, the group chose to standardize its SAP landscape and roll out the same core applications for each new business activity.

Mr. R D Malav, Vice President of Information Technology, explains, “During preparation for the Year 2000 cutover, we looked at our ERP solution choices and the infrastructure options. SAP and IBM both offered a clear roadmap for a stable landscape.

“Standardizing our environment would enable us to handle diversification as we added new business activities, and roll out new SAP solutions for ventures like JITPL quickly and cost-effectively.”

Moving to the latest IBM technologies
Starting with POWER3 processor-based servers, B C Jindal has run a continuous upgrade and migration program for several years. The most recent change was deployment of a POWER7 processor-based IBM Power 750 Express server.
“We have been able to upgrade the B C Jindal infrastructure in exact step with the business demands,” says Mr. Malav.

“We still have some standalone applications on the original servers where there is no reason to change, and for other systems we deploy the latest processors and full virtualization. The beauty of the IBM Power infrastructure is that it has the scalability to grow with us.”

B C Jindal Group deployed SAP ERP, SAP NetWeaver Business Warehouse and SAP BusinessObjects applications, its own customer relationship management solution, Lotus Domino and a document management application on the Power 750 Express server.

The server is divided into seven logical partitions (LPARs) to provide separate virtual servers for each main solution area, accessing shared Oracle databases hosted on IBM System Storage DS4700, DS3950 and DS4300 disk arrays.

“By consolidating to the Power 750 Express server, B C Jindal is achieving near-100 percent uptime for its core business applications,” says Mr. Malav. “The management cost of running SAP solutions on IBM Power Systems servers running AIX is very low. For example, operating system updates do not require system downtime, and we do not need to manage anti-virus upgrades and restarts. Since standardizing on the POWER platform, we have only one administrator for the entire enterprise, and we have saved one full-time employee equivalent.

“Additionally, by using LPARs to provide virtual servers for our key SAP production and other applications, we have avoided the cost of new standalone servers. By our estimates, when compared with a non-virtualized environment, we have saved around 50 percent of our predicted capital expenditure.”

Supporting key business processes
With the core SAP solution suite deployed on a single Power 750 server, B C Jindal Group is able to take immediate advantage of integrated data and analysis both centrally and for all the operating divisions.

“We use SAP ERP to control our activities and capture our transactions, and this data is also transferred and stored in the SAP NetWeaver Business Warehouse” says Mr. Malav “Using SAP BusinessObjects, we can interrogate SAP NetWeaver BW for sales, production and inventory data to provide accurate business forecasting and planning.

“For example, the B C Jindal Group’s flagship company Jindal Poly Films is one of the world’s largest single location producers of flexible polyester packaging. We have presence in 95 percent of world markets through our distribution network in 40 countries. Every day we manufacture more than 4,000 film rolls, of varying thicknesses, length, roll width and transparency. Each roll has some 20 different technical specifications, captured by SAP applications during the production process. In total, we create half a million new records a day.
“This data can be examined using SAP BusinessObjects for critical customer and business management information. For example, we look at the margin per roll, and the cost impact of shorter and longer production runs. We can balance the manufacture of different film specifications, which means uninterrupted production, against the customer order book and delivery commitments.

“It is like fitting together an immensely complex jigsaw, where we aim to maximize profitability and minimize wastage. Using SAP BusinessObjects to deliver accurate data, the IBM Power platform provides the stable, high-performance infrastructure to make it possible.”

Managing systems and data effectively
More than a terabyte of production data is stored on the DS4700 storage device, which has a total potential capacity of 7 TB. Annual production data growth is some 100GB, multiplied by replicas for development, test and quality assurance.

B C Jindal uses IBM Tivoli Storage Manager to run automated backup routines during periods of low workload, transferring data direct to an IBM System Storage TS3494 tape library.

“In the past, manual data backup occupied four people, who would start, monitor and check the success of each backup. Tivoli Storage Manager manages automated data backup for around 30 servers of various kinds, and we have saved at least one full-time employee equivalent,” says Mr. Malav.

“Tivoli makes data backup part of business-as-usual, and we achieve data compression ratios of better than 3:1, saving us more than 66 percent of tape capacity.

“With Tivoli, backup speed has improved too, requiring a shorter offline window. In the past, a full backup would take around five hours, which with Tivoli we have reduced to less than two-and-a-half hours. This allows us to keep production systems running for longer, and avoids the need to invest in additional processing capacity.”

B C Jindal uses IBM Systems Director to manage both the IBM and other vendors’ systems, with automated alerts delivered directly to IBM for potential hardware or software faults.

“For both Tivoli and Systems Director, the administrator simply logs in to a control panel and considers if manual action is needed. These are both excellent pieces of system automation software that help us reduce costs and increase efficiency.”

Supporting efficient operations and business growth
By standardizing its infrastructure to SAP solutions on IBM Power servers, IBM storage and Tivoli software, B C Jindal Group has made deep business analysis commercially effective for all its operating companies with the minimum of administrative effort.

“By selecting a single application suite and technology platform, the central IT team is able to service all the business units,” says Mr. Malav. “For example, for JITPL we have been able to create a standardized SAP landscape on the Power 750 Express server, and provide a complete business management solution for an energy business that aims for an installed capacity of 4,440 MW within just three years.

Mr. Malav concludes, “SAP solutions and IBM infrastructure contribute to direct business cost savings, and enables B C Jindal to expand into new markets rapidly and cost-effectively.”

Products and services used

IBM products and services that were used in this case study.

Hardware:
Power 750, Power Systems, Storage, Storage: DS3400, Storage: DS4700 Express

Software:
AIX, IBM Systems Director Editions, Tivoli Storage Manager, Lotus Domino

Service:
IBM-SAP Alliance

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