Summer Internship Project-BEC

ASSESSING MARKET POTENTIAL OF PRODUCTS OF BHILAI ENGINEERING CORPORATION

&SWOT ANALYSIS

A Project report submitted in the partial fulfillment for the award of

MASTERS IN MARKETING MANAGEMENT

By

SWETHA RAJENDRAN

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH

CHINCHWAD, PUNE

1 INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

May- July 2010

DECLARATION

I hereby declare that the project entitled “Assessing Market Potential of

Products of Bhilai Engineering Corporation Limited & SWOT

Analysis” conducted for BHILAI ENGINEERING COPORATION is

submitted for partial fulfillment of MMM degree, 2009-2011.

This is an original work under the guidance of Mr. Amit Basu Mojumdar

(Sr. Vice President) and Mr. Sandeep Sharma (D.G.M. Marketing) BHILAI

ENGINEERING COPORATION LTD. The content of this report is based

on the information collected by me during my training period, from

14.05.2010 to 14.07.2010 at Bhilai. To the best of my knowledge this

project has not been sent for a publication in whole or part elsewhere.

SWETHA RAJENDRAN Date- (..................)Institute of Business Management and Research,Chinchwad, Pune Place-(…………..)


ACKNOWLEDGEMENT

Success never eludes those who give due credit to the ones who have led

them to the path of success.

At the onset, I would like to thank Mr. Amit Basu Mojumdar (Sr. Vice

President) for providing me the opportunity to do the project in the

organization ‘BHILAI ENGINEERING COPORATION LTD’. I am

grateful to my organization guides, Mr. M.S. Dattaray (Vice President,

Marketing) and Mr. Sandeep Sharma (D.G.M. Marketing) and, who gave me

an opportunity to get exposure to the working of the organization, for his

valuable guidance at each stage of the project, thus paving a way for a great

learning experience.

Last but not the least, I express my appreciation and thanks to all the

employees of Bhilai Engineering Corporation for their patience, helpful

nature and who have contributed to my learning which I will cherish forever.

I express my profound gratitude to my faculty guide, Prof. Yogesh Raut who

helped me with their guidance during the project.

SWETHA RAJENDRANInstitute of Business Management and Research,


Chinchwad, Pune

CONTENTTitle Chapter 1: Introduction of work

Chapter 2: Company Profile

Chapter 3: Industry Profile

Chapter 4: Scope of Study

Chapter 5: Objectives

Chapter 6: Research Methodology

Definition of the ProblemDetermination of research DesignIdentification of data types & sources Methods for primary data collection Designing of questionnaire

Chapter 7: Data Analysis and Interpretation

Data analysis BEC Projects & Tenders SWOT analysis

Chapter 8: Observations & Findings

Chapter 9: Limitations

Chapter 10: Suggestions & Recommendation

Chapter 11: Conclusion

Chapter 12: Bibliography

Chapter 13: ReferencesAnnexure>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>


Questionnaire

EXECUTIVE SUMMARY

This study is conducted as a part of course curriculum of Master in Marketing

Management, offered by University of Pune (2009-2011).

Training is considered to be essential as it interacts with the happening in the market. It is

a matter of pride in having training Bhilai Engineering Corporation Limited (BEC),

Bhilai. This project covers the topic “Assessing Market potential of products of Bhilai

Engineering Corporation Ltd and SWOT Analysis”.

The project work was basically carried with a view to evaluate the market potential and

to study the sales record of various products of Bhilai Engineering Corporation Ltd and

consequently enlists some recommendations to improve the same on the company’s part.

The research methodology adopted for the study is mentioned in a nutshell. For the

purpose of data collection a questionnaire was prepared targeting the competitors of

BEC. Interview method was also used at the place where required.

After collecting of data, it was analyzed in depth by using appropriate research tools.

Analysis part is followed by some findings about the research. The conclusion is made on

the basis of the study and also the limitations and measures that should be adopted are

mentioned.

Responses from five competitors were taken which were studied and interpreted. The

process of analysis was done through excel work sheet, frequency table, percentage

analysis.


Chapter - 1

INTRODUCTION

OF

THE TOPIC


1. INTRODUCTION

This project was prepared during work of two months as Summer Internship at “Bhilai

Engineering Corporation Ltd (BEC)”.

This project entails a study regarding “Assessing Market potential of products of

Bhilai Engineering Corporation Ltd and SWOT Analysis”.

Bhilai Engineering Corporation Ltd (BEC) is a diversified industrial group engaged in

Engineering, Fertilizer, Food Processing, Plant Growth Regulators, Construction and

Exports. After getting the thorough knowledge of the manufacturing industry and the

BEC itself, research was done on the Engineering division work.

The project work was basically carried with a view to evaluate the market potential and

to study the sales of various products of Bhilai Engineering Corporation Ltd and

consequently enlists some recommendations to improve the same on the company’s part.

For the purpose of data collection a questionnaire was prepared targeting the competitors

of BEC. Interview method was also used at the time when required.

This project was conducted in Chhattisgarh, and hence throws light on the various

industries of this area.

Being a prospective manager and a student of marketing, it was my personal interest to

make study on Machine tool industries, as this sector is growing at the rate of 10% to

15% every year and provides employment to 23% of population in India. Through this

study I came to know about various factors ruling the market and what makes the product

success and failure.

During my summer project, I got chance to apply my marketing skills and theoretical

knowledge which I had learnt in my first year along with information and suggestions

provided by the company guide, which was a great learning experience for me. I realized

how team-work, goal orientation and managing inter personal relationship are integrated

part of personal life.


Chapter – 2

COMPANY

PROFILE


2. COMPANY PROFILE

2.1 Introduction

Bhilai Engineering Corporation Limited (BEC) is a diversified industrial group engaged

in Engineering, Fertilizer, Food Processing, Plant Growth Regulators, Construction and

Exports. About 2000 people are working at various places. BEC group is run by

experienced professionals and has its existence since 1960. Its Annual Turnover is more

than 2.5 Billion (INR). It has a certified EXPORT HOUSE.

BEC Works at Bhilai

BEC has three main divisions:

Engineering & Projects Division

Fertilizer and Agro Chemicals Division

Food Processing Plant

2.2 Infrastructure


http://www.bec-group.com/engineering.htm

http://www.bec-group.com/foods.htm

http://www.bec-group.com/fertilizer.htm

Today, the BEC Group has five major units located in Bhilai and Raipur with an

aggregate capacity of 25,000 tpa for fabrication and assembly. This complex, sprawled

over an area of 36acres, with a total covered area 130,000 sqm, has extensive facilities:

Steel Foundry:

It has capacity of 10,000 tons per year with Arc Furnace and Induction Furnace .

Grey Iron Foundry:

Installed capacity is 20,000 T per year. Maximum weight of casting is 35T single piece.

Engineering Shops:

Consisting of fabrication, assembly and machine shops, the Engineering Shops of the

Bhilai Works have a capacity of 12000T per year.

2.3 Departments

Manufacturing

Marketing

Finance and accounts

Human Resource

Production, Planning and Control

Quality Control

Dispatch, Billing & Realization

Maintenance

Designing

Stores & Purchase

2.4 Recognitions

Exports


Certificate of Export Excellence and One Star Export House certified by

Ministry of Commerce & Industry, India.

Manufacturing

Railway Vehicle Product Qualification Certification from Die Bahn, Germany.

Foundry

Class A Foundry Certification by Research, Designs and Standards Organization,

Ministry of Railways, India.

Quality

ISO 9001: 2000 Foundry Certified from Lloyd’s Register Quality Assurance.

2.5 Valued Customers

Some of the major turnkey projects executed in the recent past by BEC for their valued

customers are:

ROURKELA STEEL PLANT

BOKARO STEEL PLANT

BHILAI STEEL PLANT

VIZAG STEEL PLANT

DURGAPUR STEEL PLANT

MITTAL STEEL , NEWCASTLE STEEL , SOUTH AFRICA

2.6 Group Companies

Vishva Vishal Engineering Limited (VVEL)

BEC Strips Limited

Nagpur Fabriforge (P) Limited


http://www.bec-group.com/nagpurfabriforge.htm

http://www.bec-group.com/becstrips.htm

http://www.bec-group.com/vvel.htm

Bharat Industrial Works

2.7 Hierarchy

The Hierarchy of Bhilai Engineering Corporation Limited mainly consists of three levels,

which are:

Managerial Level Hierarchy

Executive Level Hierarchy

Managerial Level Hierarch


Managing DirectorManaging Director

Executive DirectorExecutive Director

General ManagerGeneral Manager

Dy. Gen. Manager Manager

Dy. Gen. Manager Manager

Asst. Gen. ManagerAsst. Gen. Manager

ManagerManager

Asst. ManagerAsst. Manager

http://www.bec-group.com/bharatindustrialworks.htm

Executive Level Hierarchy

2.8 Landmarks

Fabrication and erection of 4000MT of Umblical Tower, Horizontal Sliding Door

and Vehicle assembly Building for 2nd Launch Pad at ISRO, Sriharikota, Andhra

Pradesh, India.

BEC is one of the handful of specialist with the technological capacity of

manufacturing sophisticated Coke Oven Servicing Machinery and Rebuilding of

Coke Ovens.

Fabrication, supply of Blast Furnace and Sinter Plant Equipments to the tune of

22,000 MT for Durgapur Steel Plant

Site, Fabrication, erection and commissioning of 6000MT 3 nos. Walking

Dragline for Northern Coal Fields Limited, Singrauli, Uttar Pradesh, India.


Sr. ExecutiveSr. Executive

ExecutiveExecutive

Jr. ExecutiveJr. Executive

Non ExecutiveNon Executive

2.9 Engineering & Projects

Bhilai Engineering Corporation Limited, the flagship company of the BEC Group, has

evolved over four decades into a company, manufacturing core sector industries - Steel,

Mining, Railways, Cement, Process Industries, and Defense & Port Equipment.

Product Range

BEC produces products for various sectors such as:

Steel Industry Railways Power Plants

Mining Industry Cement Industry Process Industry

Port Equipments Defence

i. Products for Steel Industry

Coke Oven Machines

Coal Charging Car

Coke Guide Car

Coke Quenching Car

Coke Pusher Car

Coke Spillage Conveyor


http://www.bec-group.com/steel.htm

http://www.bec-group.com/railway.htm

http://www.bec-group.com/power.htm

http://www.bec-group.com/mines.htm

http://www.bec-group.com/cement.htm

http://www.bec-group.com/process.htm

http://www.bec-group.com/portequipment.htm

ii. Products for Railways

Casnub Bogie Assemblies

Centre Buffer Couplers

Points & Crossings for Track Lines

iii. Products for Power Plant

Grinding Element

Thrust Ring

Water Box for Turbo generators

Components for Bowl Mills

iv. Products for Mining Industry


Cast High Manganese Steel Crossing

Water Box for Turbo generators

v. Products for Cement Industry

High Chrome Liners

Kiln Shells and Supporting Rollers for Kilns

Grab Buckets

Ball Mills

vi. Products for Process Industry

Distillation Columns

Pressure Vessels

Heat Exchangers

Accumulation Tank

vii. Products for Port Equipments


Vibrating Feeders

Conveyor Systems

Crushers

Shovel Buckets, Dragline Buckets & Components 4.6 Cum Shovel Bucket

Supporting Roller with Shaft Assembly

Accumulation Tank

Portal Cranes

Floating Crane

Container Cranes

Rubber Tyred Gantry Cranes

viii. Products for Defence

Cast Steel Anchors for Naval Ships

Cast Steel Deck Castings

Saddle Base for Gun Carriage

Ingot Moulds for Field Gun Factory

2.10 Collaborations

BEC - Hartung Kuhn

BEC - Brieden

BEC - Chongquing

BEC - Felguera - I. H. I., Spain


Ship Anchor

Portal Crane

Chapter – 3

INDUSTRY

PROFILE

3. INDUSTRY PROFILE

3.1 Indian Manufacturing Industry Profile

The Indian economy is firmly on the path of steady growth. Even during the last decade

when other countries were in the grip of a massive slowdown, India continued to enjoy a

comfortable economic position. This recent spurt in growth is propelled by radical


reforms such as the removal of restrictions on foreign investment and industrial de-

licensing. Tailoring the EXIM policy to promote exports and aligning the import duties to

meet WTO commitments further contributed to this development.

The liberalization of the economy has opened new windows of opportunity for

manufacturing sector. Increasingly the success of manufacturing industries is dependent

on innovations, research and development. It is critical not only to remain competitive

but also, significant advantages can be gained by developing and commercializing new

technologies

Indian engineering manufacturing sector employs over 4 million skilled and semi-skilled

workers. The engineering manufacturing sector comprises of heavy engineering (70%)

and light engineering (30%). With a size of US $ 22 billion, the engineering sector

exports stood at US $ 6.6 billion and imports at US $ 4.9 billion in this decade.

Key manufacturing sub-sectors

Automotive

Steel

Light Engineering

Heavy Engineering / Machine Tools

Computer hardware

Pharmaceuticals

Textile

3.2 Heavy Engineering / Machine Tools Industry

Introduction

An industry, which has undergone a radical shift in its paradigm thinking, the Indian

machine tool industry is now recognized as a provider of low-cost high quality lean

manufacturing solutions.


The Indian machine tool industry is approximately a US$ 500 million industry. There are

138 major companies manufacturing metal cutting, metal forming, conventional and

automated machine tools.

This sector grows by 10 percent every year. Approximately 6 per cent of the production

is exported. Exports include CNC lathes, vertical machining centers, grinding machines,

etc. Major export destinations include USA, Germany, China, Italy, Mexico, Canada, UK

and Brazil. Most manufacturers have their own in-house R&D and there exists

tremendous scope for institutional collaboration for development of new technology.

Overview

Machine Tool industry is the backbone of any economy. It is the mother industry of

Capital Goods Sector which in turn determines the share of manufacturing in GDP of any

country. The Indian machine tool industry’s growth is directly linked to the growth of

the manufacturing/ engineering industry.

The primary users of machine tools are in the automotive, automobile and ancillaries,

railways, defense, agriculture, steel, fertilizers, electrical, electronics,

telecommunications, textile machinery, ball and roller bearings, industrial valves, power -

driven pumps, multi-product engineering companies, earth moving machinery,

compressors and consumer products industry sectors. The Indian machine tool industry

manufactures a range of both conventional and computer numerically controlled (CNC)

products such as metal cutting and metal forming tools.

3.3 Structure of the Machine Tools sector

The companies surveyed comprised of 43 percent private limited companies, 16

percent partnership firms, 10 percent proprietary firms, and 31 percent public limited and

10 percent closely held public limited companies.


The turnover of 47 percent of the companies is below Rs.5 crores and hence we can

derive that the majority of players in this sector are in the small and medium category.

10 percent of the total companies had a turnover ranging between Rs.150 crores to

Rs 250 crores.

3.4 India’s ranking in World Machine Tool Industry.

1. JAPAN 2. SPAIN 3. GERMANY 4. FRANCE 5. ITALY

6. CANADA 7. CHINA 8. U.K. 9. USA 10.AUSTRALIA

11.TAIWAN 12.NETHERLANDS 13. KOREA 14. BRAZIL 15. INDIA

India’s Machine Tool industry is in 15th position with a growth of 10% to 15% every year.

3.5 Top 5 Machines Tool industries with their market share.

COMPANIES MARKET

SHARE


1. Kennametal Widia India 6.00%

2. HMT Machine Tools 2.11%

3. Motor Industries Co. 1.41%

4. P M T Machine tools

Automatics

1.22%

5. Kabra Extrusiontechnik 1.22%

3.6 Technology Status

The technological competitiveness of the Indian Machine Tools sector is low. The

advantage due to high availability of quality engineers and scientists is lost, partly due to

brain drain and partly due to stagnation of skill sets of scientists and engineers within

India. India has a number of high quality R&D institutions, but the industry –institute

interactions are low, thereby reducing the chances of creation of commercially viable

technologies.

Firm level innovation is very low in India. Indian machine tools firms source technology,

but very few of them improve upon it.

The research spending as a percentage of sales amongst Indian firms are low when

compared to the R&D spends of companies in Taiwan and Korea.

The major weaknesses are limited indigenous R&D capability and design innovation, low

productivity, high capital investment requirement, process capabilities, finishing, safety

features, costs, maintenance and operation, marketing and after sales service. Like the

manufacturing sector in general, the machine tool industry also suffers from low volume

production, high cost of finance and poor quality of power supply.

3.7 Management Efficiencies

40 percent of the companies had no formal strategic planning in terms of growth

plans or were barely aware of strategic planning. Only 26 percent of the companies have


reported that they have established procedures of strategic planning and a meager 7

percent did in depth strategic planning.

3.8 Sales record of past six years of machine tools industry

3.9 Indian Shares of export in machine tools

Indian-made machine tools are currently exported to over 50 countries; the major ones

being the United States, Italy, Germany, the SAARC countries and the Middle East.


These machines from India are generally favoured in overseas markets primarily due to

their cost competitiveness, as compared to those available elsewhere.

3.10 Conclusion

The Indian machine tools industry has poor technology competence due to the inward

looking economic policies and dominance of public sector organizations. While this

helped India initially in attaining self-sustenance, it also led to adoption of obsolete

technologies in the developed countries and limited efforts to absorb and improve the

imported technology. This is in contrast to the experience of Japan and Korea which

developed significant scale and technology competence. Today India’s competence is

primarily in design and tooling industry due to availability of low-cost skilled manpower.

Significant gaps exist in CNC controls, precision bearings and sensors.


Chapter – 4

SCOPE

OF

STUDY

4. SCOPE OF STUDY


To study the major competitors of Bhilai Engineering Corporation Ltd in local

market to get a comparative picture.

To study the market potential of Bhilai Engineering Corporation Ltd and it’s

competitors.

To analyze sales of various types of equipments of Bhilai Engineering

Corporation Ltd.

The study the existing market share of BEC and growth of the same in future.

To study the impact of various strategies and product features on sales volume.

To study Strengths, Weakness, Opportunities and Threats related to Bhilai

Engineering Corporation Ltd.


Chapter - 5

OBJECTIVES

5. OBJECTIVES


The objective of the project entitled “Assessing Market potential of products of Bhilai

Engineering Corporation Ltd and SWOT Analysis”.

The objectives of the study are as follows:

To reveal the market potential of various sectors and products of Bhilai

Engineering Corporation Ltd through Competitor Analysis.

To study the sales records of previous of various sectors and major products of

Bhilai Engineering Corporation Ltd and forecast sales of next year.

To perform a SWOT analysis in respect to Bhilai Engineering Corporation Ltd.

To study and work on various turnkey projects of Bhilai Engineering Corporation

Ltd.

Hence, this project will help in assessing the market potential of the company along with

their competitors, which will ultimately help the company in understanding their

competitors and increase the sales and profit in the near future.


Chapter – 6

RESEARCH

METHODOLOGY

6. RESEARCH METHODOLOGY


Research Methodology is a systematic and objective process of generating information

for aid in making business decisions.

It may be understood as a science of studying how research is done scientifically. In this

we study the various steps that are adopted by a researcher in studying his research

problem along with the logic behind them.

When we talk of research methodology we not only talk of research methods but also

consider the logic behind the methods we used in the context of our research studies and

explain why we are not using the other methods so that research results are capable of

being evaluated either by the researcher himself or by others.

A Scientific research approach had been adopted in this project, which relies on the

application of the scientific method. This research provides scientific information for the

explanation of the nature and the properties of the problem. It makes practical

applications possible.

Marketing Research

Marketing research plays an important role in the process of marketing. It helps the firm

to acquire a better understanding of the consumer, the competition and the marketing

environment.

Definition

“Marketing Research is s systematic problem analysis, model building and fact finding

for the purpose of important decision making and control in the marketing of goods and

services”.

- Phillip Kotler

6.1 DEFINITION OF THE PROBLEM


http://en.wikipedia.org/wiki/Nature

http://en.wikipedia.org/wiki/Science

A research problem, in general, refers to some difficulty which a researchers experiences

in the context of either a theoretical or practical situations and want to obtains a solution

for the same. There are several factors which may result in making the problem

complicated. For instance, the environment may change affecting the efficiencies of the

courses of action or the values of the outcome ; the number of alternative courses of

action may be very large; person not involved in making the decision may be affected by

it and react to it favourably or unfavourably, and similar other factors. All such elements

may be thought of in context of a research problem.

At the start of my project, I also stated the reasons for the conduction of the particular

research.

The main aim of any company is to increase its revenue. But revenue cannot increase at

the pace of wink, and for this reason numerous policies has to be adopted. But some

important areas that have to be looked upon are, getting proper information about your

competitors and product’s performance. Thus if a company has thorough knowledge

about it’s market along with it’s competitors, then it would definitely helps in greater

sales of their products and hence greater revenue.

6.2 DETERMINATION OF RESEARCH DESIGN

There are three types of research design. These classifications are made according to the

objective of the research.

Exploratory research has the goal of formulating problems more precisely,

clarifying concepts, gathering explanations, gaining insight, eliminating

impractical ideas, and forming hypotheses. Exploratory research can be

performed using a literature search, surveying certain people about their

experiences, focus groups, and case studies.

Descriptive research is more rigid than exploratory research and seeks to

describe users of a product, determine the proportion of the population that uses a


product, or predict future demand for a product. As opposed to exploratory

research, descriptive research should define questions, people surveyed, and the

method of analysis prior to beginning data collection. In other words, the who,

what, where, when, why, and how aspects of there search should be defined.

There are two basic types of descriptive research: longitudinal studies and cross-

sectional studies.

Causal research seeks to find cause and effect relationships between variables. It

accomplishes this goal through laboratory and field experiments. Such studies

require procedure that will not only reduce bias and increase reliability, but will

permit drawing inferences about casuality.

In this very project, I am going to prepare a questionnaire whose main motive is

to access the potential of the company and it’s competitor. This project also

contains information related to product performance and suggestions for

increasing the sales and profit of the company. Thus this study can be put in the

descriptive research design category.

6.3 IDENTIFICATION OF DATA TYPES AND SOURCES

Primary Data:

Primary Data are those data which are gathered specially for the project at hand, directly

through questionnaire and interviews. Primary data sources include company salesman,

middle-man, consumers, buyers, trade association’s executives and other businessman

and even competitors. Thus we can say that primary data are those which are collected

afresh and for the first time.

Secondary Data:


These are generally published sources which have been collected originally for some

other purpose. Sources are internal company records, government publications, reports

and journals etc.

The research would have to decide which sort of data he would be using for his study and

accordingly he will have to select one or other methods of data collection.

Data collected for the project –

Primary sources:

Collection of information by Bhilai Engineering Corporation Ltd. employees.

Collection of information from competitor companies.

Secondary sources:

Data previously collected by Bhilai Engineering Corporation Ltd. for their use.

Internet, magazines, journals, and books.

6.4 METHODS FOR PRIMARY DATA COLLECTION

There are several methods of collecting primary data. Important ones are:

Observation method

The observation method is the most commonly used method specially in studies

relating to behavioural sciences. In a way we all observe things around us, but this

sort of observation is not scientific observation there are two types of observation

method structured observation and unstructured observation. Under the

observation method, the information is sought by way of investigator own direct

observation without asking from the respondent.

Interview method


The interview method of collecting data involves presentation of oral-verbal

stimuli and reply in terms of oral-verbal responses. This method can be used to

personal interview and if possible through telephone interview.

Personal interview method requires a person known as the interviewer asking

question generally in a face to face contact to the other person or persons.

Telephonic interview method collects information consists in contacting

respondents on telephone itself. It is not a very widely used method, but plays a

very important part in industrial surveys, particularly in developed regions.

Through questionnaire & schedule

This method of data collection is quite popular, particularly in case of big

enquiries. It is been adopted by private individual, research workers, private and

public organization and even by the government. In this method a questionnaire is

sent to the person concerned with request to answer the question and return the

questionnaire. A questionnaire consists of number of question printed or typed in

definite order on a form.

This method of data collection is very much like the

collection of data through questionnaire, little difference which lies in the fact that

schedules are being filled in by the enumerators who are specially appointed for

the purpose.

Survey method

Surveys are concerned with describing, recording, analyzing and interpretation

conditions that either exist or existed. The researcher does not manipulate the

variable or arrange for events to happen. Surveys are only concerned with

condition or relationship that exist, opinion that are held, process that are going

on, effects that are evident or trends that are developing. They are primarily

concerned with the present but at times do consider past events and influences as

they relates to current conditions. Thus, in surveys, variables that exist or have

already occurred are selected and observed. Surveys may be either census or


simple survey. They may also be classified as social surveys, economic surveys or

public opinion surveys.

Experimental method

Experimental research provides a systematic and logical method for answering the

question, “What will happen if this is done when certain variables are carefully

controlled or manipulated?” In fact, deliberated manipulation is a part of the

experimental method. In an experiment, the researcher measures the effect of an

experiment which he conducts intentionally. Experimentations, thus, is the most

sophisticated, exacting and powerful method for discovering and developing an

organized body of knowledge. The ultimate purpose of experimentation is to

generalize the variable relationships so that they may be applied outside the

laboratory to a wider population of interest

The methods employed for data collection for the project are:

Questionnaire method

Interview method

The questionnaire method was a survey that contained open ended questions.

The interview that was conducted was both structured and unstructured. It was formal

and informal both according to the requirement of the situation.

6.5 DESIGNING OF QUESTIONNAIRE

A questionnaire is designed for collection of primary data, which is to be filled by the

competitor companies of Bhilai Engineering Corporation Ltd. This questionnaire is

basically an open ended questionnaire which is given in the annexure, at the end of the

report.


Chapter – 7

DATA ANALYSIS

AND

INTERPRETATION

7. DATA ANALYSIS & INTERPRETATION


Heavy Engineering companies of Bhilai -

Bhilai Engineering Corporation Limited

Beekay Corporation Limited

Simpelx Corporation Limited

Atmastco Private Limited

Graduate Agro

Core Fab Private Limited

Jindal Steels

Pathak Machine tools

Ranjana Industries

Among the above mentioned nine companies, first six i.e. Bhilai Engineering

Corporation Limited, Beekay Corporation Limited, Simpelx Corporation Limited,

Atmastco Private Limited, Graduate Agro, Core Fab Private Limited are major

Heavy Engineering industries of Bhilai, which are considered for the study.

Data analysis consists of two parts, Part – A & Part – B.

Part – A consist of pie charts whereas Part – B consist of line graph.

PART – A

In this part we can see the market share of BEC and it’s competitors in the form of pie

chart. Different pie charts are used for showing market share in different sectors.

PART – B

In this part, we can see the line graphs showing the performance of different sectors in

last five years along with their major product.

At the last sales forecasting for the year 2010 – 2011 is also done with the help of the

method Excel Sales Forecast.

PART – A:


Market share of BEC along with it’s competitors in Steel sector.

Table – 1.

Company BEC BEEKAY ATMASTCO CORE

FAB

GRAD.

AGRO

SIMPLEX OTHERS

Mrkt. Share

(in %)

13 34 11 12 9 14 7

Chart - 1.

Interpretation

Beekay Corporation Ltd. is market leader in producing Steel products in Bhilai with a

market share of 34%.Simplex is second in position with a share of 14%.BEC is having

13% share in market. Core Fab and Atmastco is having market share of 12% and 11%

resp. Graduate Agro have minimum share of 9%.

Market share of BEC along with it’s competitors in Railway sector.


Table – 2.


FAB

GRAD.

AGRO

SIMPLEX OTHERS

Mrkt. Share

(In %)

77 2 0 4 0 11 6

Chart – 2.

Interpretation:

Bhilai Engineering Corporation Ltd. is having maximum market share of 77% in

Railways sector in Bhilai. Simplex is second in position with a share of 11%.Core Fab

and Beekay is having 4% and 2% share in market resp. Atmastco and Graduate Agro do

not produce Railways products.

Market share of BEC along with it’s competitors in Mining sector.


Table – 3.


FAB

GRAD.

AGRO

SIMPLEX OTHERS

Mrkt. Share

(In %)

40 0 0 14 11 30 5

Chart – 3.

Interpretation:

Bhilai Engineering Corporation Ltd. is having maximum market share of 40% in Mining

sector in Bhilai. Simplex is second in position with a share of 30%.Core Fab and

Graduate Agro is having 14% and 11% share in market resp. Atmastco and Beekay do

not produce Mining product.

Market share of BEC along with it’s competitors in Power Plant sector.


Table – 4.


FAB

GRAD.

AGRO

SIMPLEX OTHERS

Mrkt. Share

(In %)

3 0 76 0 12 6 3

Chart – 4.

Interpretation:

Atmastco Pvt. Ltd. is market leader in producing Power Plant products in Bhilai with a

market share of 76%. Graduate Agro is second in position with a share of 12%.Simplex

and BEC is having a market share of 6% and 3% resp. Beekay and Core Fab do not

produce Power Plant products.

Market share of BEC along with it’s competitors in Exports.


Table – 5.


FAB

GRAD.

AGRO

SIMPLEX OTHERS

Mrkt. Share

(In %)

54 20 0 0 0 26 0

Chart – 5.

Interpretation:

Bhilai Engineering Corporation Ltd. is doing maximum Exports in Bhilai and having a

market share of 54%. Simplex is second with 26%. Beekay is having market share of

20%.Atmastco, Core Fab and Graduate Agro do not Export their products.

PART – B:


Chart – 6.

Sales record (of BEC) in Steel Sector along with it’s major product.

Interpretation

Cokeoven machine is the major product produced by BEC in Steel sector, which is

shown by the green line.

The sale of Steel products in year 05-06 is 68.28 crores. But there is a sudden fall in the

year 07 – 08.Whereas form next year this sector has a stagnant growth.

In the year 09- 10 the estimated sale of this sector will be 105 crores.

Chart – 7.


Sales record (of BEC) in Railways Sector along with it’s major product.

Interpretation

CMS Crossing is the major product produced by BEC in Railway sector, which is shown

by the green line.

The sale of Railway products in year 05-06 is 17.64 crores. This sector has a continuous

growth from the year 05-06 to the year 09-10 without any downfall.

In the year 09- 10 the estimated sale of this sector will be 92.89 crores.

Chart – 8.


Sales record (of BEC) in Mining Sector along with it’s major product.

Interpretation

Front Wall is the major product produced by BEC in Mining sector, which is shown by

the green line.

The sale of Mining products in year 05-06 is 4.2 crores. This sector has a downfall in the

year 07-08 and year 08-09.But it is estimated that sales will increases in the year 09-10.

In the year 09- 10 the estimated sale of this sector will be 8.64 crores.

Chart – 9.


Sales record (of BEC) in Power Plant Sector along with it’s major product.

Interpretation

Steel Tower is the major product produced by BEC in Power Plant sector, which is

shown by the green line.

The sale of Power Plant products in year 05-06 is 13.92 crores. This sector is suffering

from a continuous downfall from the year 07-08 onwards.

In the year 09- 10 the estimated sale of this sector will be 1 crore.

.

Chart – 10.


Sales record (of BEC) in Export Division along with it’s major product.

Interpretation

PSR Crossing is the major product exported by BEC, which is shown by the green line.

There are lots of variations in Exports division from the year 05-06 to the year 09-10.

In the year 09- 10 the estimated export will be 22.09 crores.

Sales Forecasting:


In this part sales forecasting of year 2010-2011 is done with the method Excel Sales

Forecast.

This method is used by various companies and are generally prepared on excel sheets and

therefore known as excel sales forecast.

Calculation of forecasted sales:

Step – 1 Calculation of total sales

Year Steel Railways Mining Power Plant

Total Sales(in crores)

05 to 06 68.28 17.64 4.2 13.92 104.04

06 to 07 110.19 40.75 11.62 24.07 186.63

07 to 08 83.92 55.39 6.78 20.27 166.36

08 to 09 101.85 70.58 5.18 11.87 188.96

09 to 10 105 92.89 8.64 1.0 207.53

Table showing total sales (in crores)

Step – 2 Calculation of growth (year wise)

Formula -

Growth = (N – P)/P

Growth (in percentage) = ((N – P)/P) * 100

Where, N = Next year

P = Previous year

Note – If the answer is negative, then it shows declination in sale of that year.

Year Total Sales(in crores)

Growth


05 to 06 104.04

06 to 07 186.63 0.79 or 79.38%

07 to 08 166.36 -0.11 or -10.86%

08 to 09 188.96 0.13 or 13.58%

09 to 10 207.53 0.1 or 9.83%

Table showing growth

Step – 3 Calculation of Average Growth

Formula –

Average Growth = (G1 + G2 + ……….. + Gn)/ n

Where, G= Growth per year.

n= Number of years.

Thus,

Average Growth = (0.79-0.11+0.13+0.1)/4 = 0.23 or 22.75%

Step – 4 Calculation of Forecasted Sale

Formula -

Forecasted sale = (Avg. growth * Total sales of last year) + Total sales of last year

Thus,

Forecasted sale of year 2010-11= (0.23*207.53) +207.53 = 255.26 crores

Year Total Sales (in crores)

10 to 11 255.56

Chart – 11.


Forecast of the year 2010 – 2011 of BEC.

Interpretation

The above chart clearly indicates that the total sale of the company is growing at a faster rate.

The forecast of the year 2010 – 2011 of Bhilai Engineering Corporation Limited is expected to give a total sale of 255.26 crores.

SWOT ANALYSIS


Strength

Bhilai Engineering Corporation Ltd. is a company which is more than 40 years

old which means this company has unmatched experience. Having this

experience, it is advantageous for the company to gain customer confidence.

Very huge infrastructure, sprawled over an area of 36 acres, with a total covered

area 130,000 sq m.

More than 2000 employees, which consist of high profiled engineers, designers

and technicians.

Sound HR practices.

The company applies the latest technology in SYSTEMS to make the work easier

and faster (Ex - Automatic Welding Line and CNC Machines Tools).

SAP – ERP implementation since 2009 (I.F.S 7.5).

Wide range of products.

Strong customer base, which consists of Bhilai Steel Plant, Durgapur Steel Plant,

Bokaro Steel Plant, Rourkela Steel Plant, Vizag Steel Plant, Mittal Steel Ltd. etc.

Collaborations with many international companies.

Quality Assurance - The Quality Control team, working jointly with the

production units, operate through a number of ''Quality Control Cells'' that closely

monitor the various stages of manufacture in every production shop.

ISO 9001: 2000 Certified.


Weakness

Lack of Promotion/Marketing of Company & its products.

Insufficient emphasis on R&D and design engineering.

Less focus on exports as compared to national level companies.

Nationally low brand image.

Slow technological enhancement as compared to national level companies.

Less focus on competitors.

Opportunities

The Machine Tool industry is growing at an annual rate of 15%.

Liberalized economy making ‘make or buy’ decisions easier.

Large and growing domestic market in areas such as:

- Consumer durables.

- Automotive components and accessories.

- Casting/forgings.

Diversifying product range.

Present market conditions – an opportunity to change to customer needs.

Threats


Competition from national and international players manufacturing in India.

Emerging new machine tool manufacturing countries – China, the Province of

Taiwan, and the Republic of Korea.

Non tariff barriers:

- CE norms.

- Third party liabilities.

- High cost of distribution (in export markets).

Privatization of machine tools producing public sector undertakings.

‘Direct’ marketing by foreign machine tool manufacturers in India through their

own selling set ups.

Increase in raw material pricing.

Threat from cheaper and low quality tools.


Chapter – 8

OBSERVATIONS

&

FINDINGS

8. OBSERVATIONS & FINDINGS


In Chhattisgarh

Bhilai Engineering Corporation Ltd. is third in position in steel producing sector

with a total market share of 13%.


Railways sector


Mining sector

Bhilai Engineering Corporation Ltd. is having a market share of 3% and holds

fourth position in power plant sector.

Bhilai Engineering Corporation Ltd. is doing maximum exports and having a

market share of 54%

The forecast of the year 2010 – 2011 of Bhilai Engineering Corporation Limited

is expected to give a total sale of 255.26 crores.

Thus it can be said that the BEC is the pioneer in certain products and at a very good

position for the rest. All the above points clearly reveal that the products of Bhilai

Engineering Corporation Ltd. have a large market potential and are capable of capturing

the upcoming market.


Chapter – 9

LIMITAITONS

9. LIMITATIONS

The time duration for the project as against the gravity of the study was very less.


The study was conducted in the area of Chhattisgarh, which was very small as

compared to the whole country.

Project is mainly based on the replies of the respondents and observation of the

researcher.

The respondents (competitor companies) were in a hurry to respond with the

questionnaire.

At times respondents were reluctant to give actual figures.

Some respondents did not co-operate at all.

Covering each and every competitor company was very difficult, thus the

researcher has tried it best to cover maximum companies, considering time and

transport availability in short span of time.


Chapter – 10

SUGGESTIONS

AND

RECOMMENDATIONS

10. SUGGESTIONS & RECOMMENDATIONS


To give more emphasis on promotion and marketing of company & its different

products range as they have very low brand image at national level.

To providing more focus on competitors as BEC does not have much information

about their competitors and their product range.

Formation of a separate R&D department instead of combining it with the

designing department.

Major part of revenue of BEC comes from steel and railways sector only, so they

diversifying their product range to other sector such as mining sector, power plant

sector etc.

Focusing more on exports which is very less as compared to other national

brands.


Chapter – 11

BEC PROJECTS

AND

TENDERS

11.1 OVERVIEW


In BEC, projects are obtained through TENDER system. Since it is a manufacturing

company so its customers are also big corporations like Bhilai steel plant, Durgapur steel

plant, Bokaro Steel Plant, Rourkela Steel Plant etc.

They issue enquiry to which the interesting, manufacturing companies have to quote bid

through sending tenders. The company which quotes the lowest bid gets the project.

Formation of tender is not a simple work as it consists of several things such as

preparation of

BID security form

Eligibility Criteria

Technical Bid

Commercial Bid

Price Bid etc.

During the two months of internship, I have cooperated in preparing many tenders. But in

this section, as a reference I had shown operating procedure of a tender which is:

RE-BUILDING OF COKE OVEN BATTERY N0-2 SAIL,

DURGAPUR STEEL PLANT, DURGAPUR.

Tender No. DSP/PROJ-PUR/EXPN/ COB2/SE-43A/143 RT Dated 02.03.2010.

Before proceeding to the actual tender, let us first understand the Standard Operating

Procedure (SOP) of tender formation in BEC.

11.2 STANDARD OPERATING PROCEDURE (SOP) OF TENDERS

IN BEC



NOTICE INVITING TENDER / ENQUIRYNOTICE INVITING

TENDER / ENQUIRY

ESTIMATIONESTIMATION

PREPARETION OF OFFER

PART-1 BID SECURITY

PART-2 ELIGIBILITY CRITERA FULFILMENT & TECHNO – COMMERCIAL BID

PART-3 PRICE BID

PREPARETION OF OFFER

PART-1 BID SECURITY

PART-2 ELIGIBILITY CRITERA FULFILMENT & TECHNO – COMMERCIAL BID

PART-3 PRICE BID

CLARIFICATION & FOLLOW-UP

CLARIFICATION & FOLLOW-UP

PLACEMENT OF

LETTER OF ACCEPTANCE (LOA) /

LETTER OFINDENT (LOL)

PLACEMENT OF

LETTER OF ACCEPTANCE (LOA) /

LETTER OFINDENT (LOL)

CONTRACT AGREEMENT / PURCHASE ORDER

CONTRACT AGREEMENT / PURCHASE ORDER

EXECUTIONEXECUTION

PRICE BID OPENINGPRICE BID OPENING

NEGOTIATION NEGOTIATION

11.3 NOTICE INVITING TENDER


STEEL AUTHORITY OF INDIA LIMITED

DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)

Oven machinesPackage no. COB2/EXPN/SE-43A

11.3.1 INVITATION FOR BIDS (IFB):

A. TENDER NO. DSP/PROJ-PUR/ EXPN/ COB2/SE-43A/143 RT dated 02.03.2010

B. ITEM DESCRIPTION Oven machines The Scope of Work of the Bidder(s) shall cover Design, engineering, manufacture, check assembly & testing at works, painting, packing, supply, assembly & erection, testing, trial run, commissioning, demonstration of Performance guarantee and post commissioning maintenance for 12 (twelve) months of following Oven Machines. i) Coal charging car- 2 nos. ii) Door extractor & coke guide car- 2 nos. iii) Electric Loco- 2 nos. for existing Quenching cars The entire work under the scope including supplies and services shall be executed on divisible contract basis.

C. DUE DATE & TIME OF SUBMISSION

16.04.2010 by 14.00 Hrs “ Indian Standard Time (IST)”

D. PLACE OF SUB- MISSION OF BID & OPENING OF PART-I AND PART-II OF BID

Office of the : Deputy General Manager (MM), Project Purchase 2nd Floor, Ispat Bhawan, Durgapur Steel Plant, Durgapur-713203, West Bengal, India

E. DATE & TIME OF OPENING OF PART-I & PART-II OF BID

16.04.2010 at 15.00 Hrs “ Indian Standard Time (IST)”

F. EARNEST MONEYDEPOSIT (EMD) /BID SECURITY

Rs. 5,00,000/- (Indian Rupees Five Lakhs only) or Equivalent freely convertible foreign currency.

G. TIME FOR COMPLETION

18 (Eighteen) months from effective date of contract.


H. VALIDITY OF BID Bid should be valid for ninety (90) days from the date of opening of Part-I and Part-II of the bid.

I. COST OF BIDDINGDOCUMENT (Non Refundableand Not Exempted)

Rs 5,000/- (Indian Rupees Five Thousand only) or Equivalent freely convertible currency.

J. SALE OF TENDER DOCUMENTS

Start : 04.03.2010 Close : 14.04.2010 at 18.00 Hrs “ Indian Standard Time (IST)”. Download : up to 18:00 hrs of 15.04.2010

K. TENDER DOCUMENT COMPRISES OF

i) Section – I (Invitation for Bid (IFB) , Bid Data Sheet(BDS) & Special conditions of contract (SCC)

ii) Technical Specification No.MEC/S/9172/A/10/24/0962/R1.

iii) Section – II : Standard Bidding Document (TurnkeyBasis), May 2009 [Instruction to Bidders (ITB), Formof Contract Agreement (FCA), General Conditions ofContract (GCC), Safety code for contractors]

iv) General Technical Specification (GTS)

SAIL/ DSP hereinafter referred to as “Employer” invites tenders from reputed and experienced bidders for Oven machines as per the tender document.

Bidder may also download the bidding document from website at www.sailtenders.co.in and submit the bid along with cost of tender document (refer para ‘I’ of page 1 of IFB) to be remitted in the form of demand draft in favour of SAIL, Durgapur Steel Plant payable at Durgapur towards cost of biding documents.





11.3.2 BID DATA SHEET

A. Name of Facilities Oven machines required for Durgapur Steel Plant. The entire work under the scope including supplies and services shall be executed on Divisible Turnkey Contract basis.

B. Contract Name Oven Machines for Rebuilding of Coke oven Battery No. 2

C. Name of Employer Durgapur Steel Plant

D. Employer details Deputy General Manager (MM), Project Purchase 2ND Floor, Ispat Bhawan, Durgapur Steel Plant, Durgapur-713203, West Bengal, India Tel : +91-343-2575496/9932002322 Fax : +91-343-2574303/ 2575496

E. Name of Consultant

MECON Limited

F. Language of bid English

G. Spares List of O&M Spares required for operation of 2 years following completion of the Facilities as per TS.

H. Bid Currencies In addition to Indian Rupees, the Bidders may use any freely convertible foreign currency.

I. Bid Validity Period Bid shall be valid for 90 (Ninety) days from Deadline for submission of Bid.

J. Bid Submission Address of Employer for bid submission Office of the Deputy General Manager (MM), Project Purchase Section 2nd Floor, Ispat Bhawan, Durgapur Steel Plant,


Durgapur-713203, West Bengal, India Deadline for bid submission 16.04.2010 by 14.00 Hrs IST

K. Bid Opening Bids shall be opened at 15.00 Hrs IST on 16.04.2010 in the office of the Employer Office of the Deputy General Manager (MM), Project Purchase Section 2nd Floor, Ispat Bhawan, Durgapur Steel Plant, Durgapur-713203, West Bengal, India

L. Time Schedule Completion Time shall be within 78 (Seventy eight) weeks from effective date of contract

M. Conversion to single currency

Currency chosen for the purpose of converting to a common currency shall be local currency, i.e. Rupees (INR). Source of exchange rate: [As the common currency shall be the local currency, exchange TT Selling rates observed by the Reserve Bank of India (RBI) and notified by the State Bank of India (SBI), will be used for converting prices quoted in foreign currencies.] Date of exchange rate: The closing TT Selling rate of exchange on the previous working day of the date of opening of Price bid shall be considered.

N. Performance Guarantees

The Bidder shall quote his price conforming to the Performance Guarantee parameters and the acceptable limits as specified in the Technical Specifications.

O. Amount ofPerformance Security

Performance Security amount shall be five percent (5%) of the Total Contract price in Rupees or any other freely convertible foreign currency.

11.3.3 SPECIAL CONDITIONS OF CONTRACT

Special Conditions of Contract given in Standard Bidding Document (SBD) is only for the purpose of reference. The Special Conditions of Contract (SCC) given herein below supersedes SCC given in enclosed Standard Bidding Document (SBD).

The following Special Conditions of Contract [SCC] shall supplement the General Conditions of Contract [GCC]. Whenever there is a conflict, the provisions herein shall


prevail over those in the GCC. The corresponding clause number of the GCC is indicated in parentheses

1. Definitions [GCC Clause 1]

1.1 Employer

Steel Authority of India Limited,

Durgapur Steel Plant,

Durgapur - 713203,

West Bengal, India

1.2 Engineer

The following shall be furnished at the time of placement of order/ signing of contract.



Durgapur - 713203,

West Bengal, India

2. Notices [GCC Clause 4]

The details at 2.1 and 2.2 given herein below shall be furnished at the time of placement of order/ signing of contract.

2.1 Employer’s Address for Notice purposes [Reference GCC Clause 4.1]



Durgapur - 713203,

West Bengal, India

2.2 Contractor’s Address for Notice purposes [Reference GCC Clause 4.1]


M/s. ____________________

________________________

[Name and address]

Telephone No. ____________

Facsimile No. _____________

E-mail:___________________

3.1 Transportation by Wagons [Reference GCC Clause 21.4.3]

The consignee for rail dispatches shall be clearly marked as below:



Durgapur - 713203,

West Bengal,

India

Name of Railway Station, where site is situated: DURGAPUR

3.2 Transportation by Roads [Reference GCC Clause 21.4.4.3]

The consignee for road dispatches shall be clearly marked as below:


Durgapur Steel Plant, Durgapur - 713203, West Bengal, India

11.4 PREPARATION OF OFFER





11.4.1 ELIGIBILITY CRITERIA

BIDDER’S ELIGIBILITY AND QUALIFICATIONS

Bhilai Engineering Corporation Limited (BEC) offering Coke Oven Machines as detailed in the technical offer.

SL. NO.

PROPOSED BY THE EMPLOYER CONTRACTOR’S

COMMENTS

EVIDENCE OF

ELIGIBILITY

1 Technical Criteria

1.1 A. Charging car

The Bidder quoting for charging cars must have successfully designed, engineered, manufactured, supplied, installed and commissioned at least 2 Nos. of charging car with screw feeders incorporating emission control facilities for a coke oven battery in the last 7 years, out of which one such machine must be in continuous successful operation for a minimum period of one (1) year preceding 02.03.2010, with proof of having met all charging emission norms successfully.

B. Guide car

The Bidder quoting for guide cars must have successfully designed, engineered, manufactured, supplied, installed and commissioned at least 2 nos. of multi spot guide car with successful door & door frame cleaners with pollution control measures for a coke oven battery in the last 7 years, out of

We have successfully designed, engineered manufactured and installed Charging Cars and Electric Loco in various steel plants and the same are in successful operation.

List and certificates for Charging Car and Electric Loco is enclosed.

Reference List, Contract copies and performance certificate is enclosed for Charging Car, & Loco


which one such machine must be in continuous successful operation for a minimum period of one (1) year preceding 02.03.2010, with proof of successful operation of cleaners.

C. Electric Loco

Bidder should possess design and engineering capability and should have successfully carried out manufacturing, supply, erection and commissioning of at least 2 nos. of electric loco for a coke oven battery in the last 7 years. One such Loco shall be in continuous successful operation for a minimum period of one (1) year

2. Financial Criteria

2.1 Average annual turnover of the Bidder shall not be less than Rs. 8,00,00,000/- (Indian Rupees eight crore) during last 3 (three) consecutive financial year ending 31.03.2009.

In case of Loco, average annual turnover of the Bidder shall not be less than Rs. 3,00,00,000/- (Indian Rupees Three Crore) during last 3 (three) years ending 31.03.2009

Yes Balance sheet enclosed.

Bidder shall submit Audited Annual financial reports for last 3 (three) consecutive financial years in support of their meeting above stipulated financial requirements. The bidder shall submit a certificate from Chartered Accountant showing turnover for the last 3 (three) consecutive financial years duly notarized in support of their financial requirements.

Yes Balance Sheet and Turnover certificate enclosed.





11.4.2 COMMERCIAL BID

1.0 COMMERCIAL CONDITIONS

1.1 Scope of Supply

The scope will comprise Design, Engineering, Manufacture, Check assembly & testing at works, painting, packing, supply, assembly & erection, testing, trial run, commissioning, demonstration of Performance Guarantee and post commissioning maintenance for 12 months of 2 Nos. Charging Cars and 2 Nos. Electric Loco for Quenching Cars for Coke Oven Battery No. 2 of Durgapur Steel Plant as detailed in our technical offer.

1.2 Terms of Delivery for SuppliesThe specified prices for engineering, equipment and document by the contractor for supply part are based on terms of supply F.O.R. DSP, DURGAPUR site including comprehensive insurance, covering marine, transit, storage and erection, excise duty, sales tax and all other taxes, duties, levies etc. and charges for packing, forwarding and freight upto the site.

1.3 TIME OF DELIVERY

1.3.1 For Supplies, Erection, Testing and Commissioning

Total job as mentioned in detailed scope of supply will be completed within 78 weeks from the date of signing of the contract.

1.3.2 For spares

Two years spares will be supplied before commissioning provided the order for spares is released within 3 months from the date of issue of LOI for the main equipment.


1.4 TERMS OF PAYMENTWe accept payment terms as per Appendix – 3 of Standard Bidding documents.

1.5 TAXES AND DUTIES

1.5.1 For Indian supplies taxes, duties and other Govt. levies have been included in our price at the prevailing rates.

Any statutory variation of taxes and duties will be to Purchaser’s account.

1.6 INSURANCE

1.6.1 The contractor shall arrange transit insurance for supplies upto the Employer’s plant (F.O.R. DURGAPUR Site)

1.6.2 The contractor shall provide insurance for his personnel working at Employer’s premises. Such insurance shall cover accident, illness, disability and death.

1.6.3 The contractor shall provide for his personnel working at Employer’s premises Civil Responsibility Insurance (Third Party Risk).

1.7 LIQUIDATED DAMAGES

Agreed as per SBD

1.8 PRICE VARIATION

As per Appendix – 4 of SBD

1.9 EFFECTIVE DATE OF THE CONTRACT

Effective date of the contract shall be the date of signing the contract.

1.10 OTHER CONDITIONS

Other terms and conditions if any shall be discussed and agreed in the forthcoming negotiations.

1.11 VALIDITY

Our offer shall remain valid for a period of 90 days from the due date of opening and thereafter subject to our written confirmation.





11.4.3 TECHNICAL BID

TECHNICAL DESCRIPTION OF THE OFFER

1.1 COAL CHARGING CAR 1.1.1 General:

The Coal charging Car will be of single spot operation of Lid Handling (Lifting/replacing), Telescope, Screw Feeder Charging and A.P.Cleaning. Hopper weighing by load cells, gooseneck cleaner & lid lutting.

The car will be portal type with an elevated main frame structure allowing a clear passage underneath the structure for persons working on the oven top. The operator’s cabin will be under hung.

It consists of a robust steel frame equipped for mounting of the charging hoppers, screw feeders, coal charging telescopes, charging hole lid removers and all necessary housing and cabins. Access to all equipment and maintenance / operating points is assured by means of stairways, platforms and walkways.

The machine is designed is such a way that a fairly comprehensive trial assembly can be carried out. This makes final assembly, after completion of function check, dismantling and transport to site much easier.

1.1.2 Battery Limits, cc track rails, power collectors on trolley wires Clearance: (As per battery cross section Drg. No. MEC/W/9172/A/10/C1/00001

1.1.3 Basis of Design data:

Operating System : 5 –2 series

Moisture content of coal : 10 % (Max)

Bulk density of coal blend : 0.78 t/cu.m

Gauge of charging car track : 6502mm

Type of rail : 52 kg/m


Max. allowable load on one traveling wheel. : 15 t

1.1.4 Car Parameters:

Bogies centres - 6050 mm ( Approx.)

Overall dimension - 10058 x 10500 mm (Approx.)

No. of charging hoppers - 4

Total capacity of hoppers : 28.5 m3

Max. wheel load : 15t (appox.)

Coal discharge - By Screw Feeder

Actuation of lid lifting units - By hydraulic cylinders

Actuation of lids - Magnetic with reciprocation.

Actuation of telescopes - Operated by hydraulic cylinders.

Diameter of travel wheels - 630 mm

Travel bogies - 4-2 wheel bogies each with one wheel motor driven.

Travel drive motors - 4 nos.

Travel speed - 80 m/min.

Hydraulic Power :

Hydraulic Fluid - Water glycol fire resistant fluid.

Operating pressure - 100 bar

Test Pressure - 150 bar


11.5 PRICE BID




PACKAGE OVEN MACHINE (PKG.NO. COB2/EXP/SE-43 RT) - CHARGING CAR

SUMMARY PRICE SCHEDULE

Sl. No Description Amount in Rs Lakhs

1. Design and Engineering (Table 2B) Included in Table 3B

2. FOR / FOT project site price of plant & equipment (indigenous supplies),excluding spares, incl. all duties, taxes & levies etc. (Table - 3B)

xx

3. Erection & commissioning charges (Table - 4B) xx

4. Total price for the package excl. two years' spares (1 to 3).

xx

5. CENVAT Credit Available xx

6. VAT Credit Available xx

7. Total Price for the package Net of CENVAT & VAT credit (4-5-6)

xx

8. Two Years operational spares (Table 5B) xx

11.6 CONTRACT AGREEMENT


THIS CONTRACT NO. DGM/PCC/TK/2008/……………made this ______________ Day of April Two Thousand Eight (2008) at Bhilai Steel Plant, Bhilai (CG).

BETWEEN

STEEL AUTHORITY OF INDIA LIMITED, a Company incorporated under the Companies Act, 1956 and having its registered office at Ispat Bhavan, Lodi Road, New Delhi 110 003, India, having one of its plants Bhilai Steel Plant at Bhilai, Distt. Durg, Chhattishgarh (hereinafter referred to as the "Employer") which term or expression unless excluded by or repugnant to the context or the meaning thereof, shall be deemed to include its successors and permitted assigns, OF THE ONE PART,

AND

Consortium Comprising of

M/s Bhilai Engineering Corporation Limited, a Company incorporated under the Companies Act 1956 and having its Registered Office at Post Box No.31, Industrial Area, Hathkhoj. Bhilai-490001 (hereinafter referred to as “BEC - Consortium Leader and Contractor / Supplier"), which term or expression unless excluded by or repugnant to the context or meaning thereof, shall be deemed to include its successors and permitted assigns, and

M/s Design Bureau of Coke Chemical Machine Building OJSC “KB Kokosokhimmash” Company organised and existing under the laws of Ukraine and having its Registered Office at 10, Blvd., Pushkin, Slavyansk, Donetsk region, 84112 Ukraine (hereinafter referred to as “KBK - Consortium Member and Contractor” / Supplier"), which term or expression unless excluded by or repugnant to the context or meaning thereof, shall be deemed to include its successors and permitted assigns, OF

THE SECOND PART

AND WHEREAS


a) The Employer has decided to set-up Installation of OVEN MACHINES & LAND

BASED PUSHING EMISSION CONTROL SYSTEM FOR COKE OVEN BATTERY

NO. 11 .at Bhilai Steel Plant, Bhilai (hereinafter referred to as the "Facilities "), and

b) The Contractor has declared that the Contractor has valuable and specialized

knowledge and expertise for design & engineering, civil engineering work,

dismantling of buildings, structures & equipment, fabrication & supply of steel

structures, manufacture & supply of plant and equipment, manufacture & supply of

refractories, intermediate storage, insurance & handling, erection work, testing, pre-

commissioning.

c) The Contractor has declared that the Contractor is in a position to disclose, impart,

deliver and transfer the requisite engineering data, drawings and documents of

those items which are in the scope of the Contractor in this Contract, to the

Employer for the engineering of the Facilities and for erection, start-up and

commissioning of the Facilities with the aim to manufacture product as specified in

the Contract, and

d) The Contractor has obtained clarifications on technical and commercial aspects,

inspected the site and surroundings of Facilities and has examined and considered

all other matters, conditions and things, probable contingencies including delays,

hindrances and interferences and generally all matters incidental thereto and

ancillary thereof, affecting the execution and completion of the Facilities, and

e) The Contractor has agreed to undertake design & engineering, civil engineering

work, dismantling of buildings, structures & equipment, fabrication & supply of

steel structures, manufacture & supply of plant and equipment, manufacture &

supply of refractories, intermediate storage, insurance & handling, erection work,

testing, precommissioning, start-up & commissioning and demonstration &

establishment of performance guarantee parameters of the Facilities, and


Chapter – 12

CONCLUSION


12. CONCLUSION

BEC is the pioneer in certain products and at a very good position for the rest.

BEC is having low brand image at national level.

BEC is market leaders in Railway & Mining sector by holding a majority of

market share.

In BEC sales of individual products is increasing at a good rate, except the Power

Plant sector and Export division.

The products of Bhilai Engineering Corporation Ltd. have a large market share

and are capable of capturing the upcoming market.


Chapter – 13

BIBLIOGRAPHY


13. BIBLIOGRAPHY

Books:

C.R. Kothari, “Research Methodology”.

Phillip Kotler, ”Marketing Management”,.


Chapter – 14

REFERENCES


14. REFERENCES

Websites:

www.becltd.com

www.imtml.com

www.atmastco.com

www.corpagro.com

www.indiamart.com

www.imtna.in

www.jpmachinetools.com

www.indiandata.com

www.tools.exportersindia.com

www.industrylink.com

www.mactools.com

Articles & Magazines:

Business Line.

BEC broachers 2009-10.


http://www.mactools.com/

http://www.industrylink.com/

http://www.tools.exportersindia.com/

http://www.indiandata.com/

http://www.jpmachinetools.com/

http://www.imtna.in/

http://www.indiamart.com/

http://www.corpagro.com/

http://www.atmastco.com/

http://www.imtml.com/

http://www.becltd.com/

ANNEXURE


QUESTIONNAIRE

1. Please mention the following Personal Details (Name, Company’s Name and

Designation).

2. According to you what is the prospect of Heavy Engineering industry in future?

3. In which sectors (such as Railways, Mining industry, Power Plant, Steel industry,

Cement industry, Port equipments, Processing industry etc.) you deal in?

4. What was your total sales and export (both in terms of rupees) last year?

5. What was your sales (in terms of rupees) last year in following sectors:

- Steel Industry

- Railways

- Mining Industry

- Power Plant

6. What do you think are major contributing factors regarding increase/ decrease in

sales figure?

7. Do you know about other companies offering same products as of yours?

Elaborate.


8. What are the promotional techniques you are following to increase your sales

figure?

Advertisements Public Relation

Print Media Trade Fairs

9. On what factors you are trying to improve upon to provide better customer

satisfaction?

10. Other comments.


Documents

Summer Internship Project-BEC