project 28 june 2012
TRANSCRIPT
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MARKETING OF SECONDARY & BYPRODUCTS OF BOKARO STEEL
PLANT
AN INTERNSHIP
TRAINING AT BOKARO STEEL PLANT,
A UNIT OF STEEL AUTHORITY OF INDIA LTD.
INDIRA SCHOOL OF BUSINESS STUDIE, PUNE
Under guidance of
MR. A. DEV EKKA
In partial fulfillment of the requirement for the award of the degree of
(MASTERS OF BUSINESS ADMINISTRATION)
SUBMITTED TO- SUBMITTED BY-
H.R.D(BOKARO STEEL PLANT) MANOJ KUMAR
TRAINEES NO. 5902363
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ACKNOWLEDGEMENT
Every event comes to a successful end due to the involvement, guidance and cooperation of all
the people conserved. I take this opportunity to thank all of them who are directly and indirectly
involved with this project, without whose help this project would never have been completed
successfully.
I would like to express my heartfelt thanks to all the officers of Bokaro Steel Plant Who really
helped a lot and guided me through my training session. This project would not have been
possible in the absence of their help.
I am highly grateful to
Mr. M.S. pandey(AGM, CO&BPP),
Mr. R.K PRASAD (Sr.Manager, Stores)
Mr. V.PRASAD (manager) (SSD),
RANJEET KUMAR(MTT) (Sales coordination)
Mr. A.DEV EKKA (jr.Manager, Marketing Department)
For providing me an opportunity to make a project in such a reputed organization.
Its my Prime responsibility to thank my parents & close friends for having put up with the
inconveniences caused during the preparation of this project.
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CERTIFICATE
This is to certify that the project work entitled Marketing of secondary &
By-products of Bokaro Steel Plant has been carried out and submitted
by MANOJ KUMAR bearing the Trainees Number: 5902363 under my
supervision and guidance in partial fulfillment of his Master of Business
Administration at INDIRA SCHOOL OF BUSINESS STUDIES, PUNE during the
period of 14MAY 30JULY 2012
Date:
Project Guide
MR A. D. EKKA
Junior Manager- (MARKETING)
BSL (SAIL).
BOKARO
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DECLARATION
This is to declare that the Report entitled Marketing of secondary & By-
products of Bokaro Steel Plant has been made for the partial fulfillment of
the Course: Summer Internship Programme (SIP) at the end of Semester II (Batch:
2011-13) by me at Bokaro Steel Plant(SAIL) under the guidance of MR.A. D. EKKA
I confirm that this Report truly represents my work undertaken as a part of my
Summer Internship Programme (SIP). This work is not a replica of work done
previously by any other person. I also confirm that the contents of the report and
the views contained therein have been discussed and deliberated with the Faculty
Guide.
Signature of the Student :
Name of the Student (in Capital Letter) : MANOJ KUMAR
Trainess no. : 5902363
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INDEX
S.NO CHAPTER PAGE NO.
1. EXECUTIVE SUMMARY
2. COMPANY PROFILE
3. MARKETING OF SECONDARY AND BY-PRODUCTS
4. OBJECTIVES OF THE STUDY
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS
7. FINDINGS
8. SUGGESTION & CONCLUSION
9. LIMITATIONS
10. BIBLIOGRAPHY
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EXECUTIVE SUMMARY
Steel authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully
integrated iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and defence industries and for sale in
export markets.
Ranked amongst the top ten public sector companies in India in terms of turnover (Rs.
40551cr.in financial year 09-10). It is one of the Maharatna PSUs with 85.82% owned by
Government of India. 21st largest steel producer in the world, largest in India with over one fifth
share of domestic finished steel production. SAILs overall ranking was second in the list of
world class steelmaker rankings by world steel dynamics, a leading steel information services
provider. There are five integrated Steel Plants (ISPs) under SAIL.
Integrated Steel Plants
Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal
http://sail.co.in/pnu.php?tag=bhilaihttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=iiscohttp://sail.co.in/pnu.php?tag=iiscohttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=bhilai -
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BOKARO STEEL PLANT
Bokaro Steel Plant is one of the subsidiaries of SAIL and fourth integrated plant in the
Public Sector. The Plant is hailed as the countrys first Swadeshi steel plant, built with
maximum indigenous content in terms of equipment, material and know-how. It mainly produces
flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets etc. Some secondary
and by products are also produced with main products in Bokaro Steel Plant.
As the plant is very big secondary and by products are produced in huge amount with the
main steel products and after the modernization of the Plant it is being expected that these
products i.e. secondary and by products will come out in much more quantity than the present
level. Therefore a proper attention is needed for these secondary and by products.
Though some of these products are used within the Plant for various purpose, rest of the
products are sold out in the market. Hence these products earn revenue for BSL. Marketing
department of BSL is concerned with the selling of these products they have their own strategy
and policy.
Therefore the purpose of the research study titled Marketing of Secondary & By-
products of Bokaro Steel Plant is to find out more and more information about the secondary
and by products of Bokaro Steel Plant like production of these products, buyers and customers of
these products, competitors etc. The topic for the project report was selected by me and the
research area was limited within the Bokaro district. The duration for the project was from 07st
June to 31th
July 2010.
The main objective of the research study was to find out the deficiencies if there any in
the present marketing strategy and provide necessary information so that a good marketing
strategy can be adopted and hence revenue earned from these products can be increased.
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Marketing Organization (CMO) that transacts business through its network of 37 Branch Sales
Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment
Agents and 27 Customer Contact Offices. CMOs domestic marketing effort is supplemented
by its ever widening network of rural dealers who meet the demands of the smallest customers
in the remotest corners of the country. With the total number of dealers over 2000 , SAIL's
wide marketing spread ensures availability of quality steel in virtually all the districts of the
country.
SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit
of CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated
steel plants.
With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steel
industry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET),
Management Training Institute (MTI) and Safety Organization at Ranchi. The captive mines
are under the control of the Raw Materials Division in Kolkata. The Environment Management
Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all
the plants and major units are ISO Certified.
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Integrated Steel Plants
Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal
Special steel plants
Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu Visvesvaraya Iron and Steel Plant (VISL) in Karnataka
Subsidiary
Maharashtra Elektrosmelt Limited (MEL) in Maharashtra
http://sail.co.in/pnu.php?tag=bhilaihttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=iiscohttp://www.sail.co.in/pnu.php?tag=specialhttp://www.sail.co.in/pnu.php?tag=special_salemhttp://www.sail.co.in/pnu.php?tag=special_visvesvarayahttp://www.sail.co.in/pnu.php?tag=subsidiarieshttp://www.sail.co.in/pnu.php?tag=subsidiarieshttp://www.sail.co.in/pnu.php?tag=special_visvesvarayahttp://www.sail.co.in/pnu.php?tag=special_salemhttp://www.sail.co.in/pnu.php?tag=specialhttp://sail.co.in/pnu.php?tag=iiscohttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=bhilai -
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[2.2] VISION ANDCREDO OF SAIL
VISION
To be a respected world class Corporation and the leader in Indian steel business in quality,
productivity, profitability and customer satisfaction.
CREDO
We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business. We create and nurture a culture that supports flexibility, learning and is proactive to change. We chart a challenging career for employees with opportunities for advancement and
rewards.
We value the opportunity and responsibility to make a meaningful difference in people'slives.
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[2.3] COMPANY PROFILE
COMPANY : SAIL
TYPE : Public Sector
FOUNDED : January 24, 1973
CORPORATE OFFICE : New Delhi
AREA SERVED : Around 20 countries including EU,
Middle East, SE Asian &
Neighboring Countries.
INDUSTRY : Steel making industry
ANNUAL TURNOVER : Rs. 40551cr. (financial year 09-10)
AUTHORISED CAP. : Rs. 5000 crore (US$ 1.08 billion)
REVENUE : Rs. 133383.5 million (march 2010)
OPERATING INCOME : Rs.122297.6 million (march 2010)
NET INCOME : Rs. 30668.4 million (march 2010)
EMPLOYEES : 117 thousands
WEBSITE : www.sail.com
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Fig. no. 2.1
BOKARO STEEL PLANT AT A GLANCE
As the fourth integrated steel plant in the Public Sector conceived in 1959, Bokaro Steel
Plant actually started taking shape in 1965 in collaboration with the Soviet Union. The
collaboration agreement was signed on 25th January 1965.The design of the plant was envisaged
with a capacity of 1.7 million tonnes (MT) per annum in stage-I and 4 MT per annum in stage-II,
with provision for further expansion. The construction work started on 6th April 1968.
Bokaro Steel Plant was originally incorporated as a limited company on 29th
January
1964.With the formation of the Steel Authority of India Limited (SAIL) on 24 January 1973, it
became a wholly owned subsidiary of SAIL and on 1st May 1978 it was eventually merged with
SAIL through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous
Provisions) Act 1978.
85.82%
11.96%
1.75%0.47%
SHARE HOLDING PATTERN IN SAIL
GOI
Fis/Banks/MFs/FIIs/GDR
Individuals
Companies/Trusts
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[2.4] BOKARO STEEL PLANT (Major Departments)
Table no. 2.1
Commissioning dates and Capacity of Major Units
Unit Date ofCommissioning
Number Capacity(MT)
Product
Agreementwith USSR
25 Jan, 1965
Coke Ovens Sep'72Feb' 85 8 Batteries of 69 Ovens 3.48 BF Coke
Sinter Plant Sep'72June'82 3 Machines of 252 m2 area 6.20 Skip sinter
BlastFurnaces
Oct'72 - Jun'85 5 furnaces of 2000 m3volume
4.585 Hot Metal
Steel MeltingShop I
Jan'74Dec'78 5 LD converters of 130 T 2.20 Ingot Steel
Steel MeltingShop II
Jun'83 - Jan'85 2 LD Converters of 300 T 2.25 Liquid Steel
ContinuousCasting
Sep'97 - Mar'98 2 Double Strand castingm/c
2.16 Cast Slab
SMS+CCS4.36 Crude Steel
Slabbing Mill Dec'74 8X4 Soaking pits of 160 T& one1250 mm universalSlabbing Mill
1.90 Rolled slab
Hot Strip Mill Dec'75 4 reheating Furnaces, 5roughing & 7 finishingstands
3.955 HR Coil
Hot RolledCoilFinishing
Jan'76 2 Shearing line & 1 SlittingLine
1.2 to0.92
HRPlate/SheetHR Slit Coil
Cold RollingMill 1
Jun'77 Pickling Lines, TandemMills Annealing Furnaces,Skin PassMills-2, Temper/DCRMill-1,Shearing lines-5, Slittinglines-3
1.66 Saleable CRProducts CRcoils/Slitcoil/ CRSheet, BlackPlate, GPCoil/GP&G
Cold RollingMill 2
Sep'91
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& Hot Dip GalvanisingComplex-1
CSheet
Raw Materials & Material Handling Plant
The Raw Materials and Material Handling Plant of Bokaro is responsible for receipt,
blending, storage, screening and supply of raw materials to Blast Furnaces, Sinter Plant and
Lime Dolomite Shop as per their requirements. The shop also maintains a buffer stock of raw
materials to take care of any interruption in supplies. Raw materials are handled by four wagon
tipplers, stackers and reclaimers, and transported through a network of conveyor belts.
Basic functions:
Receive different raw materials from various mines through wagons and their unloading& stacking with the help of tipplers & stackers
Blend raw material by making layers in beds & cross section-wise cutting beds byreclaimer
Keep buffer stock to take care of irregularities and supply raw materials to differentUnits as per their requirements
Basic facilities:
4 Rotary Wagon Tipplers - 20 Wagons/Hr each 7 Twin boom Stackers - 1200 T/Hr each 5 Barrel Type Reclaimers - 1000 T/Hr each 1 Bucket Wheel Type Reclaimer - 500 T/Hr 2 Transfer Cars, 10 Shuttle Conveyors, 11 Cranes, 8 Telphers
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SOURCES OF RAW MATERIAL
Table no. 2.2
Material
No. of
Beds
(240 M)
Stock
(N0, of Days)Source
Iron Ore Lump 4 24 Kiriburu, Meghataburu, Bolani, Gua
Iron Ore Fines 6 16 Kiriburu, Meghataburu, Bolani, Gua
Lime Stone BF
Grade
4 13 Bhawanathpur, Khanabanjari
Lime Stone SMS
Grade
2 21 Kuteshwar, Jaisalmer, Imported
Dolomite Lump 1 16 Bhawanathpur, Birmitrapur,
Tulsidamar,
Sonakhand, Ragangpur, Mehgaon
Dolomite Chips 50 Bhutan, Salwari
Manganese Ore Barbil, Banspani
Imported Coal
Australia, New Zealand, USAPrime Coking
Coal
46 Dugda, Munidih, Jamadoba, Belatand
Medium Coking
Coal
Silos Kathara, Kedla, Rajrappa, Mahuda,
Swang
Coal Middling
for Power
Plant
Kathara, Rajrappa, Kedla, Swang,
Giddi, West Bokaro, Kargali,
Mahuda, Dugda, Katrasgarh etc.
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Coke Ovens & By-product Plant
The Coke Oven Complex at Bokaro supplies high quality coke to the Blast Furnaces. The
process of coke making consists of the destructive distillation of coal in the absence of air. The
coal is heated in a closed chamber there by driving out the volatile components present in coal
and leave behind the residue called coke. This phenomenon is called as the carbonization of coal
can be carried out at different temperature depending upon the type of coke we need.
By-Product Plant
It Consists of:
Gas Condensate Section Ammonium Sulphate Plant Benzol Recovery Plant Tar Distillation Plant Sulphuric Acid Plant
Products produced from by-product plant.
Nitration-grade Benzol Nitration-grade Toluene Xylene Light Solvent Naphtha Still Bottom Oil Pitch Creosote Mixture Road Tar Coal tar wash oil
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Blast Furnaces
Bokaro has five 2000-cubic meter Blast Furnaces that produce molten iron - Hot Metal - for steel
making. Bell-less Top Charging, modernized double Cast Houses, Coal Dust Injection and Cast
House Slag Granulation technologies have been deployed in the furnaces. The process of iron-
making is automated, using PLC Charging System and Computer Controlled Supervision
System. The wastes products like Blast Furnace slag and gas are either used directly within plant
or processed for recycling / re-use.
Steel Melting Shops
Hot Metal from the Blast Furnaces is converted into steel by blowing 99.5% pure Oxygen
through it in the LD converter. Suitable alloying elements are added to produce different grades
of steel.
Bokaro has two Steel Melting Shops - SMS-I and SMS-II. SMS-I has 5 LD converters of 130T
capacity each. It is capable of producing Rimming steel through the ingot route. SMS-II has 2
LD converters, each of 300 T capacity, with suppressed combustion system and Continuous
Casting facility. It produces various Killed and Semi-Killed steels.
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Cold Rolling Mill
The Cold Rolling Mill at Bokaro uses state-of-the-art technology to produce high quality sheet
gauge material, Tin Mill Black Plate and Galvanized Products. Cold rolling is done to produce
thinner gauge strips of very smooth and dense finish, with better mechanical properties than hot
rolling strips. Rolling is done well below re-crystallization temperature without any prior heating
of the material. The products of CRM are used for deep drawing purposes, automobile bodies,
steel furniture, drums and barrels, railway coaches, other bending and shaping jobs and coated
steels. The CRM complex comprises of two Pickling Lines (including a high speed Hydrochloric
Acid Pickling Line with re-generation facilities), two Tandem Mills, an Electrolytic Cleaning
Line, a Continuous Annealing Line, Bell Annealing Furnaces, two Skin-Pass Mills, a Double
Cold Reduction Mill (DCR), and Shearing Lines, Slitting Lines and a packaging and dispatch
section. The 5-stand Tandem Mill is capable of rolling sheet gauges up to 0.15 mm thickness. It
has sophisticated Hydraulic Automatic Gauge Control, computerized mill regulation and
optimization control.
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[2.5] SECONDARY AND BY-PRODUCTS OF BSL
Apart from the primary and main steel products there are some other products which are
obtained during the steel making process. These products are termed as secondary and by
products. Some of the products are used within the Plant while rests are sold in the market.
SECONDARY PRODUCTS
Secondary products are the defective and rejected steel products. During the
manufacturing process due to improper mixing of material or some other manufacturing defect
some of the products are not produced according to the desired quality and do not match with the
customers demand. Hence these are rejected and termed as Secondary products. Some of these
products are used within the Plant for re-melting purpose and rests are sold to the secondary
buyers. Scraps generated inside the Plant are also termed as Secondary products. A list of
Secondary products is as follows:
LIST OF SECONDARY PRODUCTS
Table no. 2.3
PRODUCT PRODUCT
A. IRON MELTING SCRAP
CI Block/SHM/CIBoulder(Unbroken)/RBIM PCM Shot Plate Scrap/CI
Skull Mixed CI Scrap/CI Fdry.
Rejects Fine Iron Chips/CI Boring
B. INDUSTRIAL SCRAPS
HR Coils DDHR Pickled Coils CRUAC/Def CR Coil/CRCE Defective CR Sheet/CR Sheet
ctg. AMG HR Plate/Sheet/Ctg Def.GP/GC Coil/Sheet MCRC/Maint. scrap-ASP MS Turning & Boring
C. PIG IRON D. BFG SLAG
BF Granulated SlagE. REROLLABLE STEEL
SCRAP Defective Slabs Slab End Cutting MS Thick Plate Cuttings
F. IDLE ASSETS Used rejected rolls Used rejected stores items Capital Idle Assets
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Cobble PlateG. STEEL MELTING
SCRAP
H. NON FERROUS (Zinc
Dross)
I. WASTE PRODUCTS
BY-PRODUCTS
By-Products are mainly coal chemicals which come out during the coke making process. Coke
making process consists of the destructive distillation of coal in absence of air. A list of By
Products which are sold by BSL is as follows:
Table no.2.4
PRODUCTMODE OF
DELIVERYUSES
A. Benzyl
Products
(Benzene)
Railway tank wagons,road tankers in loosecondition
It is used as an important raw material for variousdrugs and dyes. Benzene hexa chloride is used as apesticide. It is also used in the manufacturing ofphenol, DDT, nylon etc.
B. Toluene(Nitration
grade)
Railway tank wagons It is used as a solvent in chemical reactions, Paintindustries, rubber industries, making of adhesives,making of printing ink etc.
C. Xylene Railway tank wagons It is used in making of Paints, thinners & varnish,printing ink and in rubber industry.
D. Light Solvent
Naptha
Railway tank wagons It is used as solvent, making of dyes and printing ink
E. Still Bottom
Oil
Railway tank wagonsand road tankers
It is mixed with other materials and used for variouspurposes like water- proofing, making of roofs ofbuilding. It is also used as industrial oil and inmaking of rubber paints for vehicles.
F. Extra HardPitch
Gunny bags in loosecondition
In aluminum industries as a binding material foranode.
G. Soft Pitch Gunny bags in loosecondition
It is used in the production of pitch fiber pipes, roofbinders, in preparation of road tar, buildingmaterials, sheeting, tilling etc. It is also used asrefractory bricks.
H.Hot PressedNaphthalene
Gunny bags in loosecondition
It is used as Dye intermediate, as an insecticide,dispersing agent etc.
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Idle asset
[2.6] MARKETING DEPARTMENT OF BSL
Marketing Department is one of the Departments under Materials Management Division
of Bokaro Steel Plant. Marketing Department is entrusted with the responsibilities to sell BSLsSecondary Products, By-Products/Waste Products, and Idle Assets etc.
The Marketing Departments sales procedures are covered by the guidelines given by
SAIL Corporate office DELHI, and is given by CMMG (CORPORATE MATERIAL
MANAGEMENT GROUP), the objective of which is To sell the materials in a fair and
transparent manner to achieve maximum possible revenue to the company
(a)Marketing of prime products of SAILs plant including BSL is done by CMO (Central
Marketing Organization) which is a unit of SAIL.
(b) Marketing of secondary products and coal chemicals are done directly by Marketing
Department of BSL. As a matter of fact, the Secondary & By-Products are marketed by the
individual Plants only.
Marketing of Secondary and By Products are conducted by various sections by marketing
department of Bokaro Steel plants. Different sections of the marketing department can be shown
with the help of the following diagram:
Fig. no. 2.2
Marketing Department
Secondary Steel BF slag & waste
products
Chemical &
By-product
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Organization Chart of Marketing Department
Fig. no. 2.3
GM (MM-Mktg)
(Head of Marketing)
DGM (MM- Mktg)
AGM (Mktg)
[Sale of Sec. Steel & Contract Cell (MM)]
(Administration & Establishment; Audit,Vigilance, RTI replies, QC, ISO, DCA)
Sr. Mgr (Mktg)
Idle Assets, Surplus,U&S items & Hindi
Officer
Jr. Mgr (Mktg)
Price trends, Pricinge-auction co-
ordination
Jr. Mgr (Mktg)
MIS, Pricing, QCDeptl. Safety
Officer
Jr. Mgr (Mktg)
Sec. Steel, Slag,Waste Product
Iron & Iron scrap
Sr. Mgr.
Posted at ERP
Mgr (Mktg)
BPP Chemicals & Reports
AssistantIdle Asset, TS
Items
AssistantSlag, Waste
Products
Assistant
Sec Steel
Jr. Officer (Mktg)
BPP Chemicals
Jr. Officer (Mktg)
Administration,Co-ordination
ISO, Record officer
Sr. Office
Secretary
Chemicals
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OBJECTIVES OF MARKETING DEPARTMENT
To maximize the revenue from the sale of Secondary and By Products, ideal or used
material and other waste products and to keep the customers satisfied.
FUNCTIONS OF MARKETING DEPARTMENT
To sell Secondary steel products and By Products directly. To review and set price for the products. To settle refund claims. On day to day basis it takes care of the dispatches i.e. daily dispatch are checked. To maintain the present customers pool and add new customers.
MARKETING STRATEGIES
The marketing strategy of the department is mainly based on customer orientation and
customer satisfaction and for this purpose the department adopts following practices:
To monitor current customers and anticipate for future customers. To access current as well as future expectation of the customers. To conduct market research which includes visiting customers premises, collecting
customers feedback and accepting their complaints.
To understand customers need. For this purpose seminar and workshop are organized byBSL.
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CHAPTER 2: MARKETING OF SECONDARY AND BY-
PRODUCTS:-
In the starting when the plant had approx. one million-tones capacity, arising ofsecondary products was limited and such arising was recycled for re-melting. Therefore there
was no scope for marketing of these products. But now the plant capacity has been increased up
to 4 million tones. New technology adopted for increasing the capacity of the plant while the use
of arising for re-melting has been drastically reduced. Due to this these products remained as
surplus.
In the nineties, lot of changes in the economic scenario of the country took place. The
concept of more employment in Public Sector Enterprises changed into more profits. There by
the plant i.e. BSL also changed its policy and made a marketing strategy for the Secondary and
By-Products remained as surplus and started selling of these arising in the open market directly.
In the recent years a number of foundries, re-rolling Mills and chemical firms have come
into existence throughout the country. These small scales industries need Secondary and By-
products as raw material for their products. Therefore demand has also been increased. Thus the
company requires proper marketing of the products. The company therefore has engaged itself in
educating these small-scale units about the use of secondary & By-products in the production of
various end products for general public consumption.
The marketing policy includes following things:
Committed delivery. Competitive price Quick complaint settlement. Culture of customer service.
It is necessary to mention here that the companies' profit consists of 10% turnover of
secondary products for the Last two years
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[2.7] Pricing policy and Selling Procedure:
Pricing of Secondary and By-Products:
Setting price for a product is an important function in the whole marketing process and itshould be done after taking various factors in mind. If the price is too low the company will lose
revenue and if the price is too high it will lose customers.
The marketing department of BSL has its own standing pricing committee that decides
and sets the price of Secondary and By-Products.
Standing Pricing Committee:
The committee reviews the price of various products and takes decision in favor of
maximizing the profit. It holds meeting at least once in a month. But the volatility of the market
and pool of different products lead to a number of meeting of the committee in quick succession.
The committee consists of:
GM (Chairman, Pricing committee) GM (Marketing Co-ordinator) DGM (Finance), member DGM (Sales Coordination), member DGM (Stores), member DGM (BPP), member
For Scrap goods the DGM (SSD) replaces the DGM (BPP). Rests of all the members are
always present in all the meetings.
Most of the Secondary and By-Products (approx. 90-95%) are sold through e-auction
process where a reserve price is set for the products by the committee. But the price at which the
products are sold should not be less than 10% of the reserve price of Secondary products and
2.5% of the By-Products. Reserve price is set one day before the auction and it is not disclosed to
the buyers.
The policy adopted by the marketing department for pricing of materials is largely guided
by the price offered by the bidders during the auction. The various factors taken into
consideration while pricing the re-roll able items can be enumerated as follows: -
Prices offered in the auction sales. Quantity of material to be lifted. Managing director's approval.
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The average of the prices offered by the bidder during auction is taken as the basis to fix
the prices of materials to be sold through marketing department. Further the techniques of break-
up-pricing are adopted i.e. the larger the quantity purchased lower will be the prices. This
technique encourages the buyers to purchase larger quantity. Finally the managing director
approves the prices set by the pricing committee. On this basis, a price list is prepared for all the
potential buyers. Price list also indicates the sales tax and Excise duty to be levied. Thus the
interested parties place their orders with the marketing department on the basis of price list
reviewed every month. Every customer is required to have a security deposit amount of Rs.1
lakh. The payment for the material required is to be in advance. The material is supposed to be
lifted on the specified date on account of delay the party has to pay the difference in the prices, if
there is any increase in subsequent month.
Selling Procedure of Secondary & By-Product:
Though maximum secondary and By-Products are through e-auction process but there are
some other selling techniques which have been adopted by the marketing department for the
products.
Different modes of selling adopted by the marketing department are as follows:
MODE OF SALE
E-AUCTION SALE FIXED PRICE SALE INTER PLANT TRANSFER
MOU
E-AUCTION SALEE-auction is the main selling procedure used by the marketing department. It is an on-line
auction which is held on the website- www.metaljuction.com. In this method the defective
materials from all the mills is arranged in heaps of 100-150 tones to be sold by auction.
Generally auction sale takes place every Wednesday of a month. There is a reserve price for the
products to be sold through e-auction and it is mandatory that the final quoted price in the
auction should not be less than 10% of the reserve price of the Secondary products and 2.5% of
the By-products. Only those bidders who are approved by the Client and hand over stampedand manually signed General Rules and Regulations governing conduct of online auction along
with Letter of Interest, required EMD amount and other necessary documents to the Service
Provider at least 3 days prior to the start of online auction are given Login ID and
PASSWORD to enable them view and participate in online auction.
http://www.metaljuction.com/http://www.metaljuction.com/http://www.metaljuction.com/ -
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FLOW CHART OF E-AUCTION
Fig .no. 2.4
Advertisement of dates/type ofmaterials on SAIL
website/Newspaper
Posting of lot details to beauctioned on SAIL / Metal
Junction website
Inspection of lots by
customers
Auction conducted on metal
junction website
Report of Auction by metal
junction
Reserve Price Opening
Committee meeting
Recommendations Approval
for SaleIssue of Offer Letter
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FIXED PRICE SALE
In this mode of selling products are sold on a fixed price basis. The company gives
priority to the different category of buyers for the allocation of material.
PROCEDURE OF FIXED PRICE SALE
1. General Sale notice for different items to be sold is posted on SAIL website andadvertisement is given in various newspapers (Local and National) between 15
thto 20
thof
every month for the next month.
2. For requisition of materials, applications are invited from customers between 25 th -30
th/31
stof every month.
3. Allocation of material to various customers is done as per approved procedure of priorityallocation.
4. Offer letters are issued to the customers.
MAJOR COMPETITORS
TATA STEEL RINL ISPAT ESSAR STEEL JINDAL STEEL
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CHAPTER 3: OBJECTIVES OF THE STUDY:-
The objective of the research study is to know about the organization and collect maximum
information about the organization. The study includes the information about Bokaro Steel Plant
like Secondary & By-Products of Bokaro Steel Plant, production of the products and marketing
strategy regarding the products.
The research study mainly revolves around the Secondary and By-Products of Bokaro
Steel Plant. So the main objective of the study is to analyze various aspect of marketing policy of
BSL and provide important feedback to the management.
Some of the objectives can be pointed out as:
To know about SAIL and BSL. To know about the products of BSL. To collect information about the production of Secondary and By-Products of
Bokaro Steel Plant and revenue from these products.
To examine customers of BSL for Secondary & By-Products and their satisfactionlevel.
The main objective is to know about the marketing strategy of Secondary and ByProducts of BSL and provide necessary information to the management so that the
strategy can be improved.
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employees, management or competitors, and more formal approaches through in-depth
interviews, focus groups, projective methods, case studies or pilot studies. Exploratory research
is not typically generalizable to thepopulationat large.
Data source: -
The various source of information broadly divided in 2 categories.
(a) Primary source: - Source from where first hand information are gathered directly are called
primary source and information thus collected is called primary data. In this study the primary
data was collected from the management and the buyers.
(b) Secondary source: - The data that are collected for other purposes already exist somewhere
is called secondary data. With regard to my study the secondary sources were records of the
company, Magazines, websites, previous research on relevant topic and newspapers.
Data collection technique
Primary Data: - Questionnaire Method and interviews. Secondary Data: - Website, Books, company publications &
previous years project report.
Sample Description
Sampling technique: - Non-probability sampling (ConvenienceSampling)
Sample size: - 20 buyers of BSL in Bokaro district.Sample analysis was done by means of statistical tools.
http://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistical_population -
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CHAPTER 5: DATA ANALYSIS:-
In this chapter mainly primary data which were collected from the officials of the marketing
department with the help of interviews and from the 20 buyers of the BSL in Bokaro district area
with the help of questionnaire have been presented, analyzed and interpreted.
TYPES OF BUYERSTable no.5.1
Buyer Percentage
Trader 30%
Business organization 70%
Total 100%
Fig. no. 5.1
Interpretation: It was found from the survey that 70% of the buyers are Business Organization
and 30% of the buyers are Trader.
30%
70%
types of buyer
Trader
Business organization
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Most used selling technique for secondary & by-productsTable no.5.2
Fig. no. 5.2
Interpretation: It is clear from the above chart that e-auction selling technique is 90% and fixed
price, Inter-plant transfer & MOU selling technique is 10%.
e-auction Fixed price, Inter-plant
transfer & MOU
90%
10%
Most used selling technique
% use
Selling technique % usede-auction 90%
Fixed price, Inter-plant transfer & MOU 10%
Total 100%
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VALUE OF SECONDARY & BY-PRODUCTS PRODUCED DURINGTHE YEAR 2009-10 AND CASH COLLECTED AFTER SELLING
THEM
Table no.5.3
Quarter value (Rs.
Lakh)
cash collected (Rs. Lakh)
1st Quarter (April'09-june'09) 13875 10557
2nd Quarter (July'09-sep.09) 13004 10153
3rd Quarter (Oct.'09-dec.09) 14503 8916
4th Quarter (Jan.'10-mar.'10) 19795 14563
Total 61177 44189
Fig. no. 5.3
Interpretation: From the above chart we find that the cash collected after selling produced
secondary & by-products in different quarters of the year 2009-10 have always been less than the
actual value of the products.
13875
13004
14503
19795
61177
10557
10153
8916
14563
44189
VALUE OF SECONDARY & BY-PRODUCTS
PRODUCED DURING THE YEAR 2009-10 AND CASH
COLLECTED AFTER SELLING THEM
value (Rs. Lakh) cash collected (Rs. Lakh)
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Contribution of products in the total quantity produced and in the totalrevenue
Table no.5.4
Product % in total production % in total revenue
Secondary steel product 14% 66%
Chemical by-product 3% 7%
Slag 67% 8%
Pig iron 2% 8%
others 14% 11%
Total 100% 100%
Fig. no. 5.4
Interpretation: From the above chart it shows that Slage produces is 67% and the revenue
generated from Secondary steel product is 66% among the various Secondary & By-products.
14%
3%
67%
2%
14%
66%
7% 8% 8% 11%
conrtibution of different products in total production & in
total revenue
% in total production % in total revenue
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ANALYSIS OF PRIMARY DATA COLLECTED FROM THE
CUSTOMER OF BSL THROUGH QUESTIONNAIRE
1. Reason for purchase from BSLTable no.5.5
Reason for purchase No. of respondent % of respondent
Quality 5 25%
Cheap transportation 2 10%
Local market 10 50%
price 3 15%
Total 20 100%
Fig. no. 5.5
Interpretation: It was found from the survey that 50% of the customers purchase from BSL
because of Local market and 25% of the customers purchase because of quality.
Quality
25%
Cheap
transportation
10%
Local market
50%
price
15%
Reason for purchase from BSL
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2. Satisfaction with respect to quality
Table no.5.6
Satisfaction No. of respondents % of respondents
Satisfied 4 20%
Neither satisfied nordissatisfied
9 45%
Dissatisfied 7 35%
Total 20 100%
Fig. no. 5.6
Interpretation: Above chart shows that 45% of the customers are neither satisfied nor
dissatisfied and 35% of the customers are dissatisfied.
Satisfied
20%
Neither
satisfied nor
dissatisfied
45%
Dissatisfied
35%
Satisfaction with respect to quality
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3. Lead time for the supply of the productsTable no.5.7
Lead time No. of respondents % of respondents
0-2 days 2 10%
2-4 days 7 35%
4-8 days 6 30%
8-10 days 5 25%
Total 20 100%
Fig. no. 5.7
Interpretation: It was found that 35% of the buyers get the product at the lead time of (2-4
days), 30% of the buyers (4-8 days) and 25% of the buyers (8-10 days) after issue of offer letter.
0-2 days10%
2-4 days35%
4-8 days30%
8-10 days25%
Lead time for the supply of the products
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4. Time taking to replace the material of inappropriate quality and/or qualityTable no.5.8
Time duration No. of respondents % of respondents
0-15 days 1 5%
One month 3 15%
One month &above 15 75%
Two month & above 1 5%
Total 20 100%
Fig. no. 5.8
Interpretation: From the collected data we find that 75% of the customer get there goods
replaced at the time duration one month and above and 15% of the customer get there goods
replaced at time duration one month.
0-15 days
5%One month
15%
One month&above
75%
Two month &
above
5%
Time taking to replace the material
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5. Inquiry & information given on order statusTable no.5.9
Opinion No. of respondents % of respondents
Excellent 0 0%
Good 9 45%
Average 5 25%
Poor 6 30%
Total 20 100%
Fig. no. 5.9
Interpretation: Above chart shows that the opinion of 45% of the customers was good and 30%
of the customers were poor on the information given on the order status.
Excellent
0%
Good
45%
Average
25%
Poor
30%
information given on order status
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6. Difficulty faced by buyers dealing with BSLTable no.5.10
Difficulty faced No. of respondents % of respondents
Always 7 35%Sometimes 8 40%
Rarely 4 20%
Never 1 5%
Total 20 100%
Fig. no. 5.10
Interpretation: It is found that 40% of the customers sometimes faced difficulty and 35% of the
customers always faced difficulty while dealing with BSL.
Always
35%
Sometimes
40%
Rarely
20%
Never
5%
Difficulty faced by buyers
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7. Preference of mode of buying by the buyersTable no.5.11
Mode of buying No. of respondents % of respondents
e-auction 10 50%Fixed price sale 8 40%
MOU 2 10%
Total 20 100%
Fig. no. 5.11
Interpretation: From the data we can interpret that 50% of the buyers prefer e-auction and 40%
of the buyers prefer fixed price sale of mode of buying.
e-auction
50%Fixed price
sale
40%
MOU
10%
Preference of mode of sale
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8. Satisfaction of buyers with regard to e-auction selling methodTable no.5.12
Option No. of respondents % of respondents
Satisfied 9 45%
Neutral 7 35%
Dissatisfied 4 20%
Total 20 100%
Fig. no. 5.12
Interpretation: Above chart expresses that 45% buyers are satisfied and 35% of the buyers are
neutral with regard to e-auction selling method.
Satisfied
45%
Neutral35%
Dissatisfied
20%
Satisfaction of buyers with regard to e-auction selling
method
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9. Buyers dealing with companies other than BSLTable no.5.13
Option No. of respondents % of respondents
Yes 14 70%
No 6 30%
Total 20 100%
Fig. no. 5.13
Interpretation: survey reveals that 70% of the buyers are deal and 30% do not deals with
companies other than BSL.
Yes
70%
No30%
Buyers dealing with companies other than BSL
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10.Satisfaction of buyers with regards to refund claim process ofBSL
Table no.5.14
Option No. of respondents % of respondentsSatisfied 1 5%
Neutral 4 20%
Dissatisfied 15 75%
Total 20 100%
Fig. no. 5.14
Interpretation: It was found that 75% of the buyers are dissatisfied and 20% of the buyers are
neutral with regards to refund claim process of BSL.
Satisfied
5%
Neutral
20%
Dissatisfied
75%
Satisfaction of buyers with regards to refund claim process
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11.Overall quality of the product in relation to its priceTable no.5.15
Option No. of respondents % of respondentsVery good 2 10%
Good 7 35%
Satisfactory 8 40%
Bad 3 15%
Very bad 0 0%
Total 20 100%
Fig. no. 5.15
Interpretation: After comparing quality of the product with its price, 40% buyers found it
satisfactory while 35% found it goodand15% buyers found it bad.
Very good
10%
Good
35%Satisfactory
40%
Bad
15%
Very bad
0%
Overall quality of the product in relation to its price
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12.Overall Experience dealing with BSLTable no.5.16
OPTION
NO. OF
RESPONDENTS % OF RESONDENTSVERY GOOD 1 5%
GOOD 5 25%
NEUTRAL 7 35%
BAD 4 20%
VERY BAD 3 15%
Total 20 100%
Fig. no. 5.16
Interpretation: Above data represents that 35% of the buyers responded neither satisfied nor
dissatisfied while 25% of the buyers responded neutral on overall experience with BSL.
VERYGOOD
5%
GOOD
25%
NEUTRAL
35%
BAD
20%
VERY BAD
15%
Overall Experience with BSL
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CHAPTER 6: FINDINGS:-
From the information provided by the officials of the marketing department I found that
there were mostly industrial buyers and 70% of them were business organizations.(
Reference Table no.5.1 & Page no. )
Though slag produce maximum in quantity but secondary steel products are the major sourceof revenue. (Reference Table no. 5.4 & Page no. )
On the basis of the collected data I found that customers purchase products of BSL mainlybecause of the nearness of the products and quality. (Reference Table no. 5.5 & Page no. )
After the completion of auction process generally it takes 4-8 days to issue of offer letter andmaterial. (Reference Table no. 5.7 & Page no. )
For the replacement of material it takes one month & above time if the material is found ofinappropriate quantity and/or quality. (Reference Table no.5.8 & Page no. )
It was found that the information given on inquiry for the order status to the customer wassatisfactory. (Reference Table no. 5.9 & Page no. )
Dealing with BSL is not smooth, due to too much official formalities customer findsdifficulty. (Reference Table no. 5.10 & Page no. )
Though majority of the buyers like e-auction mode of selling among the existing sellingtechnique of BSL but maximum buyers are either dissatisfied or showed their indifference
with regard to satisfaction for this selling technique. (Reference Table no. 5.12 & Page no. )
It was found that the buyers were dealing with other companies than BSL mainly with TataSteel and buyers liked to buy from them because of their high quality, better service & better
selling methods. (Reference Table no. 5.13 & Page no. )
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Buyers are not satisfied with the refund claim process of BSL. (Reference Table no.5.14 &Page no. )
Overall quality of the products in comparison to its price is quite satisfactory. (ReferenceTable no.5.15 & Page no. )
It was found from the survey that current sources of information about the products were notenough. Some more advertisement techniques need to be adopted. (Reference Table no.5.16
& Page no.
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CHAPTER 7: SUGGESTION & CONCLUSION:-
SUGGESTIONS:
It seemed to me that the procedure starting from the auction selling to the actual dispatch ofthe products to the buyers is somewhat sluggish. Therefore I would suggest to the company
to make the procedure smooth and faster as much as possible.
There is need to assess the existing selling techniques and make necessary changes. The marketing department should do proper advertisement of the products. In addition to the
current mode of advertisement they may use hording, or they can provide proper information
about the product and its use with the help of CDs to the buyers.
Proper attention should be given to the costumers grievance. Department should conduct market survey at regular intervals to know about the current
market condition.
CONCLUSION:
Being a public sector company and a large organizational structure it involves numerousofficial formalities and policies which result in slow decision making in a department.
All the four Ps of marketing mix is not given equal attention. Complex pre-sale and post sale activities makes the whole procedure sluggish and which
hinders potential customers and new customers as well.
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CHAPTER 8: LIMITATIONS:-
There are some limitations of the research study which can be shown as follows:
The research study is limited with only one integrated iron and steel plant of SAIL i.e.Bokaro Steel Plant.
Research study includes only Secondary and By Products of BSL. Though primary steelproducts are produced in Bokaro Steel Plant but marketing department of BSL deals with the
secondary and by products only while marketing of primary steel products are done by CMO.
Research area was limited within Bokaro district. Only industrial buyers are the customers of BSL and they are fewer in number within the
research area. Most of the customers were in the outskirts of Bokaro district therefore it was
very difficult to do market survey.
The time allowed for the project was eight weeks and it was impossible to study deeply inthat short period.
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CHAPTER 9: BIBLIOGRAPHY:-
REFRENCE BOOKS
.
Ramaswamy & Namakumari, Marketing Management, 3rd edition, Mc Millan India Ltd. Philip Kotler, Marketing Management, 11th edition, prentice hall of India. C.R. Kothari, Research Methodology
WEBSITES
www.sail.co.in
www.google.com
www.metaljunction.com
www.bokaro.nic.in
www.steel.gov.in
http://www.sail.co.in/http://www.metaljunction.com/http://www.bokaro.nic.in/http://www.steel.gov.in/http://www.steel.gov.in/http://www.bokaro.nic.in/http://www.metaljunction.com/http://www.sail.co.in/