Jitendra Kumar MBA

8/11/2019 Jitendra Kumar MBA

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MARKETING OF SECONDARY & BY- PRODUCT OF BOKARO STEEL

PLANT

AN INTERNSHIP

TRAINING AT BOKARO STEEL PLANT,

A UNIT OF STEEL AUTHORITY OF INDIA LTD.

Under guidance of

MR. A. D EKKA

In partial fulfillment of the requirement for the award of the degree of

(MASTERS OF BUSINESS ADMINISTRATION)

REVA INSTITUTE OF SCIENECE AND MANAGEMENT

YELHANKA, BANGALORE (KARNATAKA)

SUBMITTED TO- SUBMITTED BY-

H.R.D (BOKARO STEEL PLANT) JITENDRA KUMAR

TRAINEES NO. 5915139


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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. R.R Kumar (RM &MHP) , Mr. RAP Singh (AGM, BF)

Mr. K. K. Sanyal (AGM, CO&BPP), Mr. S.K Singh (SMS-I,SMS-II & CCS)

Mr. I Prasad (Jr. Manager, Sl. Mill), Mr. D. Prasad (Sr. Manager, HSM)

Mr. L. Jha (Sr. Manager, CRM) , Mr. D. Dutta (Sr.Manager, Stores)

Mr. B. Dubey (Sr.Manager Secondary stores) , Mr. A. K. Mishra (AGM Sales & PPC)

Mrs. Meena Kamal (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 JITENDRA KUMAR bearing the Trainees Number:5915139 under my

supervision and guidance in partial fulfillment of his Master of Business

Administration at RISM, BANGALORE under BANGALORE UNIVERSITY

during the period of 11 AUGUST06 SEPTEMBER 2014

Date:

Project Guide

MR A. D. EKKA

JR Manager- (MARKETING)

BOKARO STEEL PLANT (SAIL).

BOKARO STEEL CITY


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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:

2013-15) 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) : JITENDRA KUMAR

Department : MBA

Registration No. : 13NPCMA049

Trainees no. : 5915139


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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. 21stlargest 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 Plantis 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 07th

August to 30 September 2014.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.


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CHAPTER 2 COMPANY PROFILE:-

[2.1] STEEL AUTHORITY OF INDIA LIMITED (SAIL)

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, SAIL

manufactures and sells a broad range of steel

products, including hot and cold rolled sheets and

coils, galvanized sheets, electrical sheets,

structurals, railway products, plates, bars and

rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated

plants and three special steel plants, located principally in the eastern and central regions of

India and situated close to domestic sources of raw materials, including the Company's iron

ore, limestone and dolomite mines. The company has the distinction of being Indias second

largest producer of iron ore and of having the countrys second largest mines network. This

gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and

dolomite which are inputs for steel making.

SAIL's wide ranges of long and flat steel products are much in demand in the domestic as well

as the international market. This vital responsibility is carried out by SAIL's own Central


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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's

lives.


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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. 51866cr. (financial year 13-14)

AUTHORISED CAP. : Rs. 5000 crore (US$ 1.08 billion)

REVENUE : Rs. 133383.5 million (march 2014)

OPERATING INCOME : Rs.122297.6 million (march 2014)

NET INCOME : Rs. 30668.4 million (march 2014)

EMPLOYEES : 117 thousands

WEBSITE : www.sail.com
http://www.sail.com/http://www.sail.com/


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2.4 Nature of the business carried

Company Name Bokaro Steel Limited

Parent Company Steel Authority of India Limited (Govt of India Undertaking )

Category Iron and steel

Sector Industrial products

Slogan Theres a little bit of SAIL in everybodys life

USP

Leading steel making company in India producing basic &

special steels

Segment Iron & steel market

Target Group

Construction, engineering, power, railway, automotive &

defense industries

Positioning

Respected world class corporation & the leader in Indian steel

business in quality, productivity, profitability & customer

satisfaction

Table 2.2 Nature of business carried


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2.5 Organization Structure

Chart 2.1 Organisation structure of Bokaro Steel Plant


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Key Personals

S.No Designation Name

1. Chief Executive Officer AnutoshMaitra

2. Exe Director (Projects) Umesh Kumar

3. Exe Director(P&A) Dr N Mohapatra

4. Exe Director(MM) H Bhattacharya

5. Exe Director (Works) RK Rathi

6. Exe Director(F&A) RK Sarda

7. GM(PROJECTS) BK Ghosh

8. GM (MM-MARKETING) KJ Rao

9. GM(P&A) KK Jain

10. GM(Works) D Panigrahi

11. GM(F&A) Sanjay Tewary

Table 2.3 Designation in Bokaro Steel Plant & their name

CEO- Chief Executive Officer

ED-Executive Director

F&A-Finance & Account

IT-Information Technology

MM-marketing Management P&A-PERSONNEL & Administration


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2.6 Area of OperationGlobal/National/Regional

Headquarters Ispat Bhavan

40, Jawaharlal Nehru Road, Kolkata - 700 071.

International Division Scope Minar(Core-2) ,North Tower,

Distt. Centre LaxmiNagar ,Delhi-110 092..

Regional Offices

Northern Region Scope Minar ,North Tower,

Distt. Centre LaxmiNagar ,Delhi-110 092.

Eastern Region IISCO House

50, Jawaharlal Nehru Road ,Kolkata - 700 071.

Western Region The Metropolitan

21,Bandra-Kurla Complex,Bandra, Mumbai- 400 051.

Southern Region IspatBhavan

5 Kodambakkam Hi h Road Chennai - 600 034.Table 2.4 Global area of operation of BSL

Table 2.5 Area of operation state wise

Statewise Plant Location

Jharkhand Bokaro Steel Plant

Chattisgarh Bhilai Steel Plant

Orissa Rourkela Steel Plant

Bayaraldeela Steel Plant

west Bengal Durgapur Steel Plant

Haldia Steel Plant

Tamil Nadu Salem Steel Plant

Karnataka Visvesvaraya iron and steel plant ,Bhadravati

Andhra Pradesh Vizag Steel Plant


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2.7 Ownership Pattern

CategoryEquity Share

holdersNo of Holders

Amount in

Rs./Cr% of Equity

GOI 3304293713 1 3304.29 80.00

Financial Institutions 155824968 83 155.82 3.77

Banks 295421539 14 295.42 7.15

Mutual Funds 38495536 47 38.50 0.93

FIIs 198958465 176 198.96 4.82

GDRs 454185 2 0.45 0.01

Cos. (inclSoc&Tr) 30419239 3190 30.42 0.74

Individuals (incl employees) 106657644 398576 106.66 2.58

Total 4130525289 402089 4130.53 100.00

Table 2.6 Ownership pattern in Bokaro Steel Plant

Figure 2.1 Ownership pattern in Bokaro Steel Plant

Shareholding pattern as on 31.03.2013,the Government of India owns about 80% of SAIL's

equity and retains voting control of the Company. However, SAIL, by virtue of its Maharatna

status, enjoys significant operational and financial autonomy.

GOI80%

FinancialInstitutions

4%

Banks

7%

Mutual Funds1%

FIIs5%

GDRs0%

Cos.1%

Individuals(incl

employees)2%


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Customer of Bokaro Steel Limited

Ma DurgaIspat Udyog, Bokaro

Bokaro Development Area

Apex Met Chemicals Pvt. Ltd, Bokaro

Shiva Chemicals , New Delhi

A.L.P. Colour and Chemicals Industries, Jamshedpur

Shree Ram Industries, Bokaro

Shree BholeyUdyog, Dhanbad

Jharkhand Tar Products, Bokaro

ShriAmbika Sales Corporations, Patna

Amit Steel Corporation, Howrah

Diwan Steel, New Delhi

Nenu Mal & Sons, Kanpur

Bhawani Metals, B.S.City

Birma Industrial & Business Enterprises Pvt. Ltd, Ranu

Pandey Brothers, Chas

Chinar Steel Segments, B.S.City

Mangal Pvt. Ltd., Bokaro

United Iron Coporation, Dhanbad

Bharat Supply Company, Kolkatta

Anup Steels, Delhi

Hanuman & rise Pvt. Ltd, BIADA

Steel India, Dhanbad


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2.8 Competitors Information.

Electrosteel Steels

Ensa Steel Industries Ltd.

Eastcoast Steel Ltd. GallanttIspat Ltd.

Steel Exchange India Ltd. Tata Steel, Essar Steel

Facor Steels Ltd.

Visaka Steel Ltd.

Tata Steel Ltd.

JSW Steel Ltd.

Bhumika Steel Ltd.

Essar Steel

Taylor-Winfield Company, U.S.A

Miebach, Germany and Verson International, U.K


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2.9 Infrastructural facilities

Unit NumberCapacity

(MT)Product

Coke Ovens 8 Batteries of 69 Ovens 3.48 BF Coke

Sinter Plant 3 Machines of 252 m2area

6.20 Skip sinter

Blast Furnaces 5 furnaces of 2000 m3volume

4.585 Hot Metal

Steel Melting ShopI

5 LD converters of 130T

2.20 Ingot Steel

Steel Melting ShopII 2 LD Converters of 300T 2.25 Liquid Steel

Continuous Casting 2 Double Strand castingm/c

2.16 Cast Slab

Slabbing Mill 8X4 Soaking pits of 160T & one1250 mmuniversal Slabbing Mill

1.90 Rolled slab

Hot Strip Mill 4 reheating Furnaces, 5roughing & 7 finishing

stands

3.955 HR Coil

Hot Rolled CoilFinishing

2 Shearing line & 1Slitting Line

1.2 to 0.92 HR Plate/SheetHR Slit Coil

Cold Rolling Mill 1 Pickling Lines, TandemMills AnnealingFurnaces, Skin PassMills-2, Temper/DCRMill-1,Shearing lines-5,Slitting lines-3& Hot

Dip GalvanisingComplex-1

1.66 Saleable CR ProductsCRcoils/Slit coil/ CRSheet, BlackPlate, GPCoil/GP&GC-Sheet

Cold Rolling Mill 2

Table 2.7 Infrastructure facility in Bokaro Steel Plant


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2.10 Achievement and Awards

Steel Ministers trophy and SAIL chairmans trophy for best safety performance in 1997.

CII (Southern Region) National Energy Award as Energy efficient unit in 2003

CII (Eastern Region) best award for Efficient energy conservation and management in

energy contest for 2004.

ISO 9001.2000 Quality Management System certification for the whole of Bokaro Steel plant

in 2005.

CII productivity award in 2006-07.

Rajiv Gandhi National Quality Award 2007

Distinguished awards received by 5 QC teams of BSL in NCQC held at Ernakulam in 2010-

11.

Golden Peacock Award for Combating Climate Change 2008 for BSP, Occupational

Health and Safety- 2008 for BSL


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3. PRODUCT PROFILE

PRIMARY PRODUCTS

Special Steel Grades Application

SAE 1541 Automobile Industry

MC 11 Cycle Industry

SPC 370/390 Cycle Industry

C 15 Cycle Industry

SAILAPI X-42, X-46, X-52, X-56, X-60 Pipe Line

SAILCOR (corrosion resistant) Railways

SAILMEDSi (Medium Silicon Steel) Heavy Electrical Winding

SAILPROP Propeller Shaft

Strapping Steel (for internal use only) Strapping Finished Products

Full-hard Galvanised Coil Extra hard roof of houses

Cold Rolled Medium Electrical Steel Transformer core

Extra-low Carbon Extra Deep Drawing (HR & CR) White goods

DMR 249A Grade Steel Defence Research Development Organisation(DRDO) for fabrication of Submarine parts

E460/E500/E550 Floating bridges for Defence Sector

IS8500 Fe 540B high strength low alloy steel withUTS value in excess of 540 Mpa

Kolkata fly-over

Source: www.sail.co.in/bokaro_product

Table 3.1 Primary product in Bokaro Steel Plant


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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 29 th 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 1stMay 1978 it was eventually merged with

SAIL through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous

Provisions) Act 1978.

The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum

indigenous content in terms of equipment, material and know-how. Its first phase of 1.7 MT

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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ingots steel commenced on 2nd October 1972 with the commissioning of the first Blast Furnace

and completed on 26th February 1978 with the commissioning of the third Blast Furnace.

All the envisaged units of 4 MT stage have already been commissioned. The Plant is

designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets,

Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanized Plain and

Corrugated (GP/GC) Sheets.

Bokaro has provided a strong raw material base for a variety of modern Engineering

industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing

industries. To keep pace with the latest trends in steel making, the first phase of modernization

was sanctioned on 23rd July 1993.As the benefits of the modernization have been reaped.

Bokaro Steel is continuously upgrading its various production facilities to bring improvements in

productivity and quality.


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[2.11] BOKARO STEEL PLANT (Major Departments)

Table no. 2.1

Commissioni ng 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& one

1250 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& Hot Dip GalvanisingComplex-1

1.66 Saleable CRProducts CR

coils/Slitcoil/ CRSheet, BlackPlate, GPCoil/GP&GCSheet

Cold RollingMill 2

Sep'91


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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 by

reclaimer

Keep buffer stock to take care of irregularities and supply raw materials to different

Units 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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Extra hard pitch

Hard medium pitch

Hot Pressed naphthalene

SCRAP AND SALVAGE DEPARTMENT:

As the name signifies, the department works with ferrous (Iron & Steel) scrap to salvage it &

make it useful by adding value to it SSD has a dual role to play in overall scheme of things in the

works division. Primarily it has to supply Iron and Steel scrap to Steel Melting process.

Secondly, the role of SSD is to collect all the Ferrous Scrap (waste for the place of origin) and

bring it to the department to transform it into a useful product. Every department of the Plant

from Coke Oven to Cold Rolling Mill Produce metal waste termed scrap. This may be in the

form of maintenance waste e.g. broken or worn out parts, damaged structure or equipment or

may be process arising. The prime products continue on their production flow towards the final

defined output, while the arising has to drop out as they are not suitable chemically,

mechanically or by size and shape. In the shape of fish tails or irregular edge trimming or

produce which are below the planned size. In a nut shell SSDs role is to ensure that all Iron and

Steel Scrap (unwanted at place production) are transported to site processed and transported

SMS Magnetic Scrap yards for using as coolant in the converter bath. Surplus scrap after

supplying the requirement of scrap is offered for external sale to generate cash resources for the

company.


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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.

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


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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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[2.12] 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/CISkull

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 Slag

E. 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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Idle asset

[4] 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-

Jr. Mgr (Mktg)MIS, Pricing, QC

Deptl. 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 by

BSL.


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MARKETING OF SECONDARY AND BY-PRODUCTS

In the starting when the plant had approx. one million-tones capacity, arising of

secondary 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 comeinto 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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[2.13] 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 of

materials on SAIL

website/Newspaper

Posting of lot details to be

auctioned 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 and

advertisement is given in various newspapers (Local and National) between 15thto 20thof

every month for the next month.

2. For requisition of materials, applications are invited from customers between 25 th -

30th/31stof every month.

3. Allocation of material to various customers is done as per approved procedure of priority

allocation.

4. Offer letters are issued to the customers.

Process Chart of Fixed Price Sale

Chart 4.7 Process of fixed price sale

Advertisement oftype of materials on

SAILwebsite/Newspaper

Application fromcustomers

Allocation of

materialIssue of offer letter


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Priority in Booking Of Materials By Marketing Department

Category Priority Buyer Quantity to be allotted

A. 1st Govt. Units/PSUs & its subsidiaries &

joint ventures of govt. units having

more than 50% govt. share

Any quantity required

by them

B. 2nd Dependent BIADA units with

MD/BIADAS recommendations &

MD/BSLs approval.

Maximum 70% of the

balance available

quantity after meeting

C. 3rd Consumers/Processes of Jharkhand

state

30% of balance

D. 4th To all other customers Out of the balance

quantity of material left

if any

Table 4.7 Priority in booking of material by marketing department

Refund Claim

When lifting of material for a particular sale order is over, customers may

claim for the balance of:

Price of material

Security deposit

Earnest money deposit (in case of sale trough Tender and e-auction.

Turn over tax(if applicable)

Duly filled claim form (issued by sales and excise department) can be submitted by customers to

the Marketing department.


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MAJOR COMPETITORS

TATA STEEL

RINL

ISPAT

ESSAR STEEL

JINDAL STEEL

CUSTOMER LIST

1. Ma Durga Ispat Udyog, Bokaro

2. Bokaro Development Area

3. Apex Met Chemicals Pvt. Ltd, Bokaro

4. Shiva Chemicals , Chas

5. A.L.P. Colour and Chemicals Industries, Jamshedpur

6. Shree Ram Industries, Bokaro

7. Shree Bholey Udyog, Dhanbad

8. Jharkhand Tar Products, Bokaro

9. Shri Ambika Sales Corporations, Patna

10. Amit Steel Corporation, Howrah

11. Diwan Steel, New Delhi

12. Nenu Mal & Sons, Kanpur

13. Bhawani Metals, B.S.City

14. Birma Industrial & Business Enterprises Pvt. Ltd, Ranu

15. Pandey Brothers, Chas

16. Chinar Steel Segments, B.S.City


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17. Mangal Pvt. Ltd., Bokaro

18. United Iron Coporation, Dhanbad

19. Bharat Supply Company, Kolkatta

20. Anup Steels, Delhi

21. Hanuman & rise Pvt. Ltd, Biada

22. Amit Metcum Pvt. Ltd.

23. Steel India, Dhanbad

24. Kunal Steel Coperation, Ludhiana

25. GD Goel & Company, Kokatta

26. Modern Indua concast Ltd, Kolkatta

27. Agarwal Steel Centre, New Delhi

28. SSE, Sindri


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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 satisfaction

level.

The main objective is to know about the marketing strategy of Secondary and By

Products of BSL and provide necessary information to the management so that the

strategy can be improved.


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CHAPTER 4 RESEARCH METHODOLOGY:-

INTRODUCTION

Marketing research is the systematic gathering, recording, and analysis of data about

issues relating to marketingproducts and services. In this research study exploratory research

design has been used. The reason for choosing such research design is that the problem before

the research was not clearly defined and it was not generalizable to the population at large

because the products i.e. Secondary & By-products of BSL is mainly concerned with the

industrial buyers which are fewer in number than others.

The research design is based on questioning and observations as well. Due to the small

number of respondents mainly qualitative approaches have been applied such as formal/ informal

discussions with the management and the customers, in-depth interviews etc. In addition to this

feedbacks of the respondents have been taken with the help of questionnaire.

Research Type:-

Exploratory research

Exploratory research is a type of research conducted because a problem has not been

clearly defined. Exploratory research is used when problems are in a preliminary stage and

when the topic or issue is new and when data is difficult to collect. Itis flexible and can address

research questions of all types (what, why, how). Exploratory researchis often used to generate

formal hypotheses.

Exploratory research often relies on secondary research such as reviewing available

literature and/or data, or qualitative approaches such as informal discussions with consumers,
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Secondary_researchhttp://en.wikipedia.org/wiki/Secondary_researchhttp://en.wikipedia.org/wiki/Secondary_researchhttp://en.wikipedia.org/wiki/Marketing


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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 (Convenience

Sampling)

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 BUYERS

Table 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-products

Table 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 2013-14 AND CASH COLLECTED AFTER SELLING

THEM

Table no.5.3

Quarter value (Rs.

Lakh)

cash collected (Rs. Lakh)

1st Quarter (April'13-june'13) 13875 10557

2nd Quarter (July'13-sep.13) 13004 10153

3rd Quarter (Oct.'13-dec.13) 14503 8916

4th Quarter (Jan.'14-mar.'14) 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 2013-14 have always been less than the

actual value of the products.

0

10000

20000

30000

40000

50000

60000

70000

3rd Quarter (Oct.'13-

Dec.'13

4th Quarter (Jan.'14-

Mar.'14)

Total

Chart Title

Value (Rs. Lakh) Cash Collected (Rs. Lakh) Column1


50/68


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ANALYSIS OF PRIMARY DATA COLLECTED FROM THE

CUSTOMER OF BSL THROUGH QUESTIONNAIRE

1.

Reason for purchase from BSL

Table 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 products

Table 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 quality

Table 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 status

Table 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 BSL

Table 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 buyers

Table 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 method

Table 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 BSL

Table no.5.13


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 of

BSL

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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Overall quality of the product in relation to its price

Table no.5.15


Very 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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11.Overall Experience dealing with BSL

Table 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 source

of revenue. (Reference Table no. 5.4 & Page no. )

On the basis of the collected data I found that customers purchase products of BSL mainly

because 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 and

material. (Reference Table no. 5.7 & Page no. )

For the replacement of material it takes one month & above time if the material is found of

inappropriate 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 was

satisfactory. (Reference Table no. 5.9 & Page no. )

Dealing with BSL is not smooth, due to too much official formalities customer finds

difficulty. (Reference Table no. 5.10 & Page no. )

Though majority of the buyers like e-auction mode of selling among the existing selling

technique 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 Tata

Steel 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. (Reference

Table no.5.15 & Page no. )

It was found from the survey that current sources of information about the products were not

enough. 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 of

the 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.

Focus should be given on quality of chemical By-products and improved packaging

techniques should be adopted.

Secondary steel products should be stored properly to maintain its quality.


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CONCLUSION

In the past six weeks during my training. I visited the site of Bokaro Steel Plant and during the

period of my study. I passed through various stages of problem and difficulties to accomplish the

task of project work but it was a privilege for me to take this opportunity a challenging work to

study and observe marketing of Secondary products & By products in B. S. L , which is a unit

of SAIL. BOKARO Steel Plant recognizes that leadership is essential for survival in

competition environment. Customers satisfaction like quality is a journey and not a destination.

It is essential that everyone in the company have a clear understanding of what customer

satisfaction means if the plant aims to achieve leadership in customer satisfaction. While

improved customer satisfaction is necessary for ensuring prosperity of the company must also be

recognized that ability of the company to satisfy its customer would depend on its ability to

continuously improve its quality and performance. The basic objective behind the study carried

out by me is to study the major contribution of Secondary product to total sale , which pre-

determining for the success of the company. By selling the Secondary product in local market

company is earning profit. It is also creating employment in small scale industries and

developing the economy.

Customers satisfaction would happen when the management fulfils the following:

1. Delivery in time

2. Product mix according to customer requirement

3. Flexible pricing policies

4. Complaint settlement

5. Culture of customer service.


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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 steel

products 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 in

that 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/

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Jitendra Kumar MBA