Arun.r.(Mba Ib)Report of Intern Sail

8/11/2019 Arun.r.(Mba Ib)Report of Intern Sail

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STEEL AUTHORITY OF INDIA LTD. SCHOOL OF MANAGEMENT STUDIES, CUSAT

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REPORT OF THE

SUMMER INTERNSHIP PROJECT

Done atSTEEL AUTHORITY OF INDIA LTD., COCHIN: 682031

Submitted to the School of Management Studies, Cochin University ofScience and Technology, Kochi - 22

In partial fulfilment of the requirements for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

(INTERNATIONAL BUSINESS)

By

ARUN R.

Reg.: 85413009

Organisation Guide: Mr Sunil Madhavan ( Sr. Manager (Marketing),steel Authority Of India Ltd.

Faculty Guide: Dr. K. Krishnan Nampoothiri, Associate Professor,School Of Management Studies.

School of management Studies

August - 2014


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DECLARATION

I, hereby declare that this report of the Internship done at the STEELAUTHORITY OF INDIA LTD. (SAIL), my original work. I further declare thatthis report is based on the information collected by me and has not previously

been submitted to academic/ non- academic purposes .

ARUN R.

(Reg. No. 85413042) Place: Cochin MBA (International Business) III rd. Semester Date: School Of Management Studies

Cochin University of Science and TechnologyKochi 682022


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CERTIFICATE

This is to certify that the report of the internship titled Report of the internship done at

STEEL AUTHORITY OF INDIA LTD. is a bonafide record of the work done by

Arun R. during June July 2014 in partial fulfillment of the requirements for the award of

the Degree of Master of Business Administration of the Cochin University of Science and

Technology.

Dr. K. KRISHNAN NAMPOOTHIRIAssociate ProfessorSchool Of Management Studies(Faculty Guide)

DirectorSchool Of Management Studies


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Acknowledgement

It is great pleasure for me to acknowledge the kind of help and guidancereceived to me during my project work. I was fortunate enough to get support

from a large number of people to whom I shall always remain grateful.

I sincerely thank Mr SUNIL MADHAVAN( Sr. Manager (Marketing)),MrG.RAJESH(Sr. OS) and SMT.BEENA MATHEW(OS) , Persons of amiable

personality, for assigning such a challenging project work which has enrichedmy work experience and getting me acclimatized in a fit and final workingambience in the premises of Steel Authority of India Limited (SAIL).

I extend my sincere gratitude to Prof Dr M Bhasi, Director SMS, CUSAT for

giving this opportunity of organization study. I acknowledge my gratitude to Dr. K. Krishnan Nampoothiri , AssistantProfessor, for his extended guidance, encouragement, support and reviews andwithout whom this project would not have been a success.

Last but not the least I would like to extend my thanks to all the employees ofSteel Authority of India Limited (SAIL) for their cooperation, valuableinformation and feedback during my project.

ARUN.R


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Documentation 54Channel distribution 55Function of distribution channel 55Function of stockyard 56Raw material division 57Central coal supply organization 57Process flow-chart branch sales office 59Process flow-chart for delivery operation 60Conclusion 61


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CHAPTER -1

INTRODUCTION


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INTRODUCTION

The project on comparison of financial statement of SAIL with other steelsectors in India has been a very good experience. Every manufacturingcompany faces the problem of Financial Management in their day to day

processes. An organizations cost can be reduced and the profit can be increasedonly if it is able to manage the financial position of its firm. At the same timethe company can provide customer satisfaction and hence can improve theiroverall productivity and profitability.

This project is a sincere effort to study and analyze the Financial Management

of SAIL and its competitors. The project work was divided into two phases. Thefirst phase was focused on company profile of SAIL, Tata Steel and JSW Steelon the bases on Background, Business Description, Marketing and Distribution

Network, CSR Initiatives, etc. and the second phase was conducted aComparative analysis of SAIL with its competitors TATA Steel and JSW Steelon the bases of Production Performance, Financial Performance, Ratio Analysis,Segmental Break- up and Analysis of Cost and GSR/NSR.

The internship is a bridge between the institute and the organization. This mademe to be involved in a project that helped me to employ my theoreticalknowledge about how the Analysis of Financial Statement is done by the firm.And in the process I could contribute substantially to the organizations growth.The experience that I gathered over the past two months has certainly providedthe orientation, which I believe will help me in shouldering any responsibility infuture.


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OBJECTIVES OF THE INTERNSHIP

The present internship is carried out in STEEL AUTHORITY OF INDIA LTD.with the following specific objectives.

To study the organizational structure of STEEL AUTHORITY OF INDIA LTD. SAIL).

To familiarize the departments of STEEL AUTHORITY OF INDIA LTD. (SAIL)and its functions.


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CHAPTER - 2

INDUSTRY ANALYSIS


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STEEL INDUSTRY IN INDIA AN OVERVIEW

Steel has been the key material with which the world has reached to a developed position. All the engineering machines, mechanical tools and most importantly

building and construction structures like bars, rods, channels, wires, angles etcare made of steel for its feature being hard and adaptable. Earlier when the alloyof steel was not discovered, iron was used for the said purposes but iron isusually prone to rust and is not so strong. Steel is a highly wanted alloy over theworld. All the countries need steel for the infrastructural development andoverall growth. Steel has a variety of grades i.e. above 2000 but is mainlycategorized in divisions steel flat and steel long, depending on the shape ofsteel manufactured. Steel flat includes steel products in flat, plate, sheet or strip

shapes. The plate shaped steel products are usually 10 to 200 mm and thinrolled strip products are of 1 to 10 mm in dimension. Steel flat is mostly used inconstruction, shipbuilding, pipes and boiler applications. Steel long Categoryincludes steel products in long, bar or rod shape like reinforced rods made ofsponge iron. The steel long products are required to produce concrete, blocks,

bars, tools, gears and engineering products. After independence, successivegovernments placed great emphasis on the development of an Indian steelindustry. In Financial Year 1991, the six major plants, of which five were in the

public sector, produced 10 million tons. The rest of India steel production, 4.7million tons, came from 180 small 29 plants, almost all of which were in the

private sector. India's Steel production more than doubled during the 1980s butstill did not meet the demand in the mid-1990s, the government was seeking

private-sector investment in new steel plants. Production was projected toincrease substantially as the result of plans to set up a 1 million ton steel plantand three pig- iron plants totalling 600,000 tons capacity in West Bengal, withChinese technical assistance and financial investment. The commissioning of

Tata Iron & Steel Company's production unit at Jamshedpur, Bihar in 1911-12heralded the beginning of modern steel industry in India. At the time ofIndependence in 1947 India's steel production was only 1.25 Mt of crude steel.Following independence and the commencement of five year plans, theGovernment of India decided to set up four integrated steel plants at Rourkela,Durgapur, Bhilai and Bokaro. The Bokaro plant was commissioned in 1972.The most recent addition is a 3 Mt integrated steel plant with moderntechnology at Visakhapatnam. Steel Authority of India (SAIL) accounts for

over 40% of India's crude steel production. SAIL comprises of nine plants,including five integrated and four special steel plants. Of these one was


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nationalized and two were acquired; several were set up in collaboration withforeign companies. SAIL also owns mines and subsidiary companies.

DEMAND OF STEEL IN INDIA

Driven a booming economy and concomitant demand levels, consumptionof steel has grown by 12.5 per cent during the last three years, well above the6.9 percent envisaged in the National Steel Policy. Steel consumption amountedto 58.45 mt in 2006-07 compared to 50.27 mt in 2005-06, recording a growthrate of 16.3 per cent, which is higher than the world average. During the firsthalf of the current year, steel consumption has grown by 16 per cent. A studydone by the Credit Suisse Group says that India's steel consumption willcontinue to grow by 17 per cent annually till 2012, fuelled by demand forconstruction projects worth US$ 1 trillion. The scope for raising the totalconsumption of steel in the country is huge, as the per capita steel consumptionis only 35 kgs compared to 150 kg in the world and 250 kg in China. With thissurge in demand level, steel producers have been reporting encouraging results.For example, the top six companies, which account for 70 percent of the total

production capacity, have recorded a year-on-year growth rate of 13.4 per cent,15.7 per cent and 11.7 per cent in net sales, operating profit and net profit,respectively, during the second quarter of 2007-08 We expect strong demandgrowth in India over the next five years, driven by a boom in construction(43%-plus of steel demand in India).

SUPPLY OF STEEL IN THE INDIAN MARKET

Over the past ten years Indias crude steel output rose nearly 7%per year to55.3 million tons, while global crude steel output increased by 4% (Germanymanaged an increase of just under 1%p.a.) Although India is the worlds eighthlargest steel producer, its3%-plus share of global steel output is still very low; itis roughly the same as Ukraines share of world steel production. China, theworlds biggest steelmaker, produces nearly ten times as much as India. In 2005Indias crude steel output of 46.5 million tons was 8%higher than in 2004; onlyin China was the growth rate considerably higher at 15%. By contrast,

production volumes fell in the US and the EU-25 by nearly 5% and roughly 4%respectively. In the first five months of 2006 Indian steel production continuedto expand unabated, rising 10% yoy. We forecast a significant increase in output

by the Indian steel industry over the medium t erm. The entire industryscontribution to gross domestic product should rise in the coming years to morethan 30% compared to just fewer than 27% at present. The growth drivers are


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the expanding client industries automotive engineering (production up 16% p.a. between 2000 and 2005), mechanical engineering (up 10% p.a.) andconstruction (up 6% p.a.).


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CHAPTER - 3

ORGANISATION PROFILE


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COMPANY PROFILE

Steel has been the key material with which the world has reached to adeveloped position. All the engineering machines, mechanical tools and most

importantly building and construction structures like bars, rods, channels, wires,

angles etc. are made of steel for its feature being hard and adaptable. Earlier

when the alloy of steel was not discovered, iron was used for the said purposes

but iron is usually prone to rust and is not so strong. Steel is a highly wanted

alloy over the world. All the countries need steel for the infrastructural

development and overall growth. Steel has a variety of grades i.e. above 2000

but is mainly categorized in divisions steel flat and steel long, depending on

the shape of steel manufactured. Steel flat includes steel products in flat, plate,

sheet or strip shapes. The plate shaped steel products are usually 10 to 200 mm

and thin rolled strip products are of 1 to 10 mm in dimension. Steel flat is

mostly used in construction, shipbuilding, pipes and boiler applications. Steel

long Category includes steel products in long, bar or rod shape like reinforced

rods made of sponge iron. The steel long products are required to produce

concrete, blocks, bars, tools, gears and engineering products. After

independence, successive governments placed great emphasis on the

development of an Indian steel industry. In Financial Year 1991, the six major

plants, of which five were in the public sector, produced 10 million tons. The

rest of India steel production, 4.7 million tons, came from 180 small plants,almost all of which were in the private sector. India's Steel production more

than doubled during the 1980s but still did not meet the demand in the mid-

1990s, the government was seeking private-sector investment in new steel

plants. Production was projected to increase substantially as the result of plans

to set up a 1 million ton steel plant and three pig-iron plants totalling 600,000

tons capacity in West Bengal, with Chinese technical assistance and financialinvestment. The commissioning of Tata Iron & Steel Company's production unit


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at Jamshedpur, Bihar in 1911-12 heralded the beginning of modern steel

industry in India. At the time of Independence in 1947 India's steel production

was only 1.25 Mt of crude steel. Following independence and the

commencement of five year plans, the Government of India decided to set up

four integrated steel plants at Rourkela, Durgapur, Bhilai and Bokaro. The

Bokaro plant was commissioned in 1972. The most recent addition is a 3 Mt

integrated steel plant with modern technology at Visakhapatnam. Steel

Authority of India (SAIL) accounts for over 40% of India's crude steel

production. SAIL comprises of nine plants, including five integrated and four

special steel plants. Of these one was nationalized and two were acquired;several were set up in collaboration with foreign companies. SAIL also owns

mines and subsidiary companies.


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ABOUT THE COMPANY


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STEEL AUTHORITY OF INDIA LIMITED

Steel Authority of India Limited (SAIL) is the leading steel-making company inIndia. It is a fully integrated iron and steel maker, producing both basic andspecial steels for domestic construction, engineering, power, railway,automotive and defence industries and for sale in export markets. SAIL is alsoamong the seven Maharatnas of the country's Central Public Sector Enterprises.SAIL manufactures and sells a broad range of steel products, including hot andcold rolled sheets and coils, galvanised sheets, electrical sheets, structural,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 situatedclose to domestic sources of raw materials, including the Company's iron ore,limestone and dolomite mines. The company has the distinction of being Indiassecond largest producer of iron ore and of having the countrys second largestmines network. This gives SAIL a competitive edge in terms of captiveavailability of iron ore, limestone, and dolomite which are inputs for steelmaking.SAIL's wide range of long and flat steel products are much in demand in thedomestic as well as the international market. This vital responsibility is carriedout by SAIL's own Central Marketing Organisation (CMO) that transacts

business through its network of 37 Branch Sales Offices spread across the fourregions, 25 Departmental Warehouses, 42 Consignment Agents and 27Customer Contact Offices. CMOs domestic marketing effort is supplemented

by its ever widening network of rural dealers who meet the demands of thesmallest customers in the remotest corners of the country. With the total numberof dealers over 2000, SAIL's wide marketing spread ensures availability ofquality steel in virtually all the districts of the country.SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000accredited unit of CMO, undertakes exports of Mild Steel products and Pig Ironfrom 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 Delhioffers 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 newtechnologies for the steel industry. Besides, SAIL has its own in-house Centrefor Engineering and Technology (CET), Management Training Institute (MTI)and Safety Organisation at Ranchi. Our captive mines are under the control ofthe Raw Materials Division in Kolkata. The Environment Management Divisionand Growth Division of SAIL operate from their headquarters in Kolkata.

Almost all our plants and major units are ISO Certified.


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MAJOR UNITS

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

Ferro Alloy Plant Chandrapur Ferro Alloy Plant

Subsidiary SAIL Refractory Company Limited

JOINT VENTURES

NTPC SAIL Power Company Pvt.Limited (NSPCL): A 50:50 joint venture between Steel Authority of India Ltd (SAIL) and

National Thermal Power Corporation Ltd (NTPC Ltd); manages SAILscaptive power plants at Rourkela, Durgapur and Bhilai with a combinedcapacity of 814 megawatts (MW).

Bokaro Power Supply Company Pvt. Limited (BPSCL) : This 50:50 joint venture between SAIL and the Damodar Valley Corporation (DVC) is managing the302-MW power generating station and 660 tonnes per hour steam generationfacilities at Bokaro Steel Plant.

Mjunction Services Limited: A 50:50 joint venture between SAIL and TataSteel; promotes e-commerce activities in steel and related areas. Its newlyadded services include e-assets sales, events & conferences, coal sales &logistics, publications, etc.

SAIL-Bansal Service Centre Limited: A joint venture with BMW Industries Ltd.on 40:60 basis for a service centre at Bokaro with the objective of addingvalue to steel.

Bhilai JP Cement Limited: A joint venture company with JaiprakashAssociates Ltd on 26:74 basis to set up a 2.2 million tonne (MT) slag-basedcement plant at Bhilai.


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Bokaro JP Cement Limited: Another joint venture company with JaiprakashAssociates Ltd on 26:74 basis to set up a 2.1 MT slag-based cement plant atBokaro.

SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint venture company with

Manganese Ore (India) Ltd on 50:50 basis to produce Ferro-manganese andsilico-manganese required in production of steel. S & T Mining Company Pvt. Limited: A 50:50 joint venture company with Tata

Steel for joint acquisition & development of mineral deposits; carrying outmining of minerals including exploration, development, mining and

beneficiation of identified coking coal blocks. International Coal Ventures Private Limited : A joint venture company/SPV

promoted by five central PSUs, viz. SAIL, CIL, RINL, NMDC and NTPC(with respectively 28.7%, 28.7%, 14.3%, 14.3% and 14.3% shareholding)aiming to acquire stake in coal mines/blocks/companies overseas forsecuring coking and thermal coal supplies.

SAIL SCI Shipping Pvt. Limited : A 50:50 joint venture with ShippingCorporation of India for provision of various shipping and related servicesto SAIL for importing of coking coal and other bulk materials and othershipping-related business.

SAIL RITES Bengal Wagon Industry Pvt. Limited: A 50:50 joint venture withRITES to manufacture, sell, market, distribute and export railway wagons,including high-end specialised wagons, wagon prototypes, and fabricatedcomponents/parts of railway vehicles, rehabilitation of industriallocomotives, etc., for the domestic market.

SAIL SCL Limited: A 50:50 JV with Government of Kerala where SAIL hasmanagement control to revive the existing facilities at Steel Complex Ltd,Calicut and also to set up, develop and manage a TMT rolling mill of 65,000MT capacity along with balancing facilities and auxiliaries.


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ABOUT METAL JUNCTION

Corporations across the world have realized that in a world without boundaries,certain regions and people with distinct competencies will be more efficient

than others and therefore the visible trend in the world today is outsourcing.Companies are outsourcing manufacturing activities, customer services, backoffice operations and a host of other activities, either because there is someoneelse who can do the same thing for less, or, there is specialist who can offerservices of higher quality. Industry has recognized that whilst it has toconcentrate on growth, a prerequisite is to become globally competitive.Industry has to, on the one hand, concentrate on its core competencies of

bringing about efficiencies in manufacturing and on the other hand look at

bringing about efficiencies in their Supply Chain which is their buying andselling processes. Metal-junction operates at the extreme ends of the value chainand hence it was essential to segregate the organization into two Major BusinessUnits (Commerce-junction and Metal-junction) so as to independently focus on:

Specific requirement of clients and customer Specific procedure for both functions Knowledge and information for two systems


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1999. RINL was accorded the prestigious Mini R atna status by the Ministry of

Steel, Govt. of India in the year 2006 and the company is gearing up to

complete the ambitious expansion works to increase the capacity to 6.3 mtpa by

2009. RINL has prepared a road map to expand the plants capacity up to 1 6mtpa in phases.

(C) Metal Scrap Trade Corporation Ltd. (MSTC)

MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the

9th September, 1964 as a canalizing agency for the export of scrap from the

country. With the passage of time, the company emerged as the canalizingagency for the import of scrap into the country. Import of scrap was de-

canalized by the Government in 1991-92 and MSTC has since then moved on to

marketing ferrous and miscellaneous scrap arising out of steel plants and other

industries and importing Coal, Coke, Petroleum products, semi-finished steel

products like HR Coils and export primarily Iron ore. The Company has also

established an e-auction portal and undertakes e-auction of Coal, Diamonds andSteel Scrap and has developed an e-procurement portal in house.

(D) Ferro Scrap Nigam Ltd. (FSNL)

FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of

Rs. 200 lakh. The Company undertakes the recovery and processing of scrap

from slag and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai,

Bokaro, Visakhapatnam, Durgapur, Dolvi, Duburi&Raigarh. The scrap

recovered is returned to the steel plants for recycling/ disposal and the Company

is paid processing charges on the quantity recovered at varying rates depending

on the category of scrap. Scrap is generated during Iron & Steel making and

also in the Rolling Mills. In addition, the Company is also providing Steel Mill

Services such as Scarfing of Slabs, Handling of BOF Slag, etc.


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(E) Hindustan Steelworks Construction Ltd. (HSCL)

HSCL was incorporated in June 1964 with the primary objective of creating

in the Public Sector an organization capable of undertaking completeconstruction of modern integrated Steel Plants. HSCL had done the construction

work of Bokaro Steel Plant, Vizag Steel Plant and Salem Steel Plant from the

inception till commissioning and was associated with the expansion and

modernization of Bhilai Steel Plant, Durgapur Steel Plant, IISCO (Burnpur) and

also Bhadravati Steel Plant. With the tapering of construction activities in Steel

Plants,the company intensified its activities in other sectors like Power, Coal,Oil and Gas. Besides this, HSCL diversified in Infrastructure Sectors like

Roads/Highways, Bridges, Dams, Underground Communication and Transport

system and Industrial and Township Complexes involving high degree of

planning, co-ordination and modern sophisticated techniques. The company has

developed its expertise in the areas of Piling, Soil investigation, Massive

foundation work, High rise structures, Structural fabrication and Erection,

Refractory, Technological structures and Pipelines, Equipment erection,

Instrumentation including testing and commissioning. The company has also

specialized in carrying out Capital repairs and Rebuilding work including hot

repairs of Coke Ovens and Blast Furnaces and other allied areas of Integrated

Steel Plants .

(F) MECON LTD.

MECON is one of the leading multi-disciplinary design, engineering,

consultancy and contracting organization in the field of iron & steel, chemicals,

refineries & petrochemicals, power, roads & highways, railways, water

management, ports &harbours, gas & oil, pipelines, nonferrous, mining, general

engineering, environmental engineering and other related/ diversified areas withextensive overseas experience. MECON, an ISO: 9001- 2000 accredited

company, registered with World Bank (WB), Asian Development Bank (ADB),


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European Bank for Reconstruction and Development (EBRD), African

Development Bank (AFDB), and United Nations Industrial Development

Organization (UNIDO), has wide exposure and infrastructure for carrying out

engineering, consultancy and project management services for mega projects

encompassing architecture & town planning, civil works, structural works,

electric, air conditioning & refrigeration, instrumentation, utilities, material

handling & storage, computerization etc. MECON has collaboration agreements

with leading firms from the USA, Germany, France, Italy, Russia, etc. in

various fields. The authorized share capital of the company is Rs. 10,400 lakh

(previous year Rs. 4,100 lakh) against which the paid up capital is Rs. 10,313.84lakh (previous year Rs. 4,013.84 lakh). All the shares are held by the

Government of India.

2. Private Sector

The private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country. Private

sector steel players have contributed nearly 67% of total steel production of38.08 million tonnes to the country during the period April-December, 2007.

The private sector units consist of both major steel producers on one hand and

relatively smaller and medium units such as Sponge iron plants, Mini Blast

Furnace units, Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-

rolling Mills and Coating units on the other. They not only play an important

role in production of primary and secondary steel, but also contribute substantial

value addition in terms of quality, innovation and cost effective.

(A)TATA STEEL LTD.

Tata Steel has an integrated steel plant, with an annual crude steel making

capacity of 5 million tonnes located at Jamshedpur, Jharkhand. Tata Steel has

completed the first six months of fiscal 2007-08 with impressive increase in its

hot metal production. The hot metal production at 2.76 million tonnes is

4.6%more compared to the corresponding period of the previous year. The


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crude steel production during the period was 2.43 million tonnes which is

marginally lower than the production of 2.45 million tonnes last year. The

saleable steel production was at a lower level during the period April

September, 2007 (2.34 million tonnes) compared to the corresponding period of

last year (2.36 million tonnes). Tata Steel is continuing with its programme of

expansion of steel making capacity by 1.8 million tonnes to reach a rated

capacity of 6.8 million tonnes. The Project is reported to be moving ahead of

schedule and is likely to be commissioned by May 2008 against the original

schedule of June 2008. The Company has planned to take the capacity to 10

million tonnes by the fiscal year2010. Tata Steels Greenfield projects in Orissa and Chattisgarh are progressing

on schedule with placement of equipment order for Kalinganagar Project in

Orissa and commencement of the land acquisition process. Jharkhand Project is

awaiting announcement of Relief & Rehabilitation policy of the State

Government.

(B)ESSAR STEEL LTD. Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a

footprint covering India, Canada, USA, the Middle East and Asia. It is a fully

integrated flat carbon steel manufacturer from iron ore to ready-to-market

products. ESHL has a current global capacity of 8 million tonnes per annum

(MTPA). With its aggressive expansion plans in India and other parts of Asia

and North America, its capacity is likely to go up to 25 MTPA by2012. Its

products find wide acceptance in highly discerning consumer sectors, such as

automotive, white goods, construction, engineering and shipbuilding. Essar

Steel Ltd., the Indian Company of Essar Steel Holdings Limited, is the largest

steel producer in western India, with a current capacity of 4.6 MTPA at Hazira,

Gujarat, and plans to increase this to 8.5 MTPA. The Indian operations also

include an 8 MTPA beneficiation plant at Bailadilla,

Chattisgarh which has worlds largest slurry pipeline of 267 km to transport beneficiated Iron

Slurry to the pellet plant, and an 8 MTPA pellet complex at Visakhapatnam.


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The Essar Steel

Complex at Hazira in Gujarat, India, houses the worlds largest gas -based single

location sponge iron plant, with a capacity of 4.6 MTPA. The complex also

houses the steel plant and the 1.4 MTPA cold rolling complexes. The steel

complex has a complete infrastructure setup, including a captive port, lime plant

and oxygen plant. Essar Steel produces highly customized value-added products

catering to a variety of product segments and is Indias largest exporter of flat

products, selling close to half of its production to the highly demanding US and

European markets, and to the growing markets of South East Asia and the

Middle East. The companys products conform to quality specifications ofinternational quality certification agencies, like ABS, API, TUV Rhine Land

and Lloyds Register. Essar Steel is the first

Indian steel company to receive an ISO 9001 and ISO 14001 certification for

environment management practices. Essar Steel utilizes Hot Briquetted Iron-

Direct Reduced Iron (HBIDRI) technology supplied by Midrex Technology,

USA along with four 150 tonnes DC electric arc furnaces imported fromClecim, France. The Hazira unit of Essar Steel is equipped with 5.5 million

tonnes per annum (MTPA) hot briquetted iron plant, 4.6 MTPA electric are

furnace, 4.6 MTPA continuous caster, 3.6 MTPA hot strip mill and 1.4 MTPA

Cold Rolling Mill. During the year 2007-08, Essar was awarded costs ISO/TS

16949 and OHSAS 18000 certification.

(C) JSW STEEL LTD.

JSW Steel is a 3.8 MTPA integrated steel plant, having a process route

consisting broadly of Iron Ore Beneficiation Pelletisation Sintering Coke

making Iron making through Blast Furnace as well as Corex process Steel

making through : BOF- Continuous Casting of slabs Hot Strip Rolling Cold

Rolling Mills. JSW Steel has a distinction of being certified for ISO-9001:2000

Quality Management System, ISO-14001:2004 Environment Management

System and OHSAS 18001:1999 Occupational Health and Safety Management


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System. The capacity as on 1.11.2007 stood at 3.8 MTPA and the capacity is

likely to rise to 6.8 MTPA by 2008, and further to 9.6 MTPA by 2010.

(D) JINDAL STEEL & POWER LTD. (JSPL)

Jindal Steel & Power Limited is one of the fast growing major steel units in

the country. The Raigarh plant of JSPL has a present capacity of 1.37 million

tonne per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop

(SMS), 1.0 MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330

Mega Watt captive power plant. During the year 2006-07, the company

produced 1.19 million tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million tonnes of hot metal and 0.21 million tonnes of rolled

products. The performance of JSPL during April-October 2007-08 was 0.68

million tonnes of sponge iron, 0.72 million tonnes of steel products

(slabs/blooms/billets/rounds), 0.68 million tonnes of hot metal, 0.27 million

tonnes of rolled products and 0.11 million tonnes of plates

( E) ISPAT INDUSTRIES LTD. (IIL)

IIL has set up one of the largest integrated steel plants in the private sector in

India at Dolvi in Raigad District, Maharashtra with a capacity to manufacture 3

million tonnes per annum of hot rolled steel coils (HRC). The Dolvi complex

also boasts of an ultra modern blast furnace (setup by a group company Ispat

Metallics India Ltd.) capable of producing 2.0 million tonnes per annum of Hot

Metal/ Pig Iron, a 2.0 million tonnes capacity Sinter Plant (newly

commissioned) and a DRI plant with a capacity of 1.6 million tonnes per

annum. The complex boast of an ultra modern captive jetty which meets the

plants requirement with regard to import of various raw material. In the coming

years, after augmenting necessary infrastructure facility, it has planned to export

the goods from the captive jetty. Further, the complex envisages adding a 110

MW captive power plant (which will use the Blast Furnace gas) in near future.The integrated steel plant is using the converter-cum-electric arc furnace route

(CONARC process) for producing steel. In this project, IIL have uniquely


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combined the usage of hot metal and DRI (sponge iron) in the electric arc

furnace for production of liquid steel for the first time in India. For casting and

rolling of liquid steel, IIL has the state-of-the art technology called compact

strip production (CSP) process, which was installed for the first time in Indiaand produces high quality and specifically very thin gauges of Hot Rolled Coils.


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Market Share of Leading Players in Iron and Steel Industry

COMPANY PRODUCTION OF MARKET SHARE(IN STEEL (IN MILLION PERCENTAGE TERMS)

TONNES)

SAIL 13.5 32%

TISCO 5.2 11%

RNIL 3.5 8%

ESSAR,ISPAT,JSWL 8.4 19%

OTHERS 14.5 30%

TOTAL 45.1 100%


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PRODUCTS

SAILS MAJOR PRODUCTS

SAIL has a wide range of steel products - both Long and Flat.

Among Long products are: Structurals, Crane Rails, Bars, Roads &Rebars, and

Wire Rods; and Flat products covering the range of HR Coils, Sheets & Skelp,

Plates, CR Coils & Sheets, GC Sheets/GP Sheets and Coils, Tinplates,

Electrical Steel. SAIL also produces Tubular products and Railway productssuch as rails, wheels, axles and wheel sets.

Other products of SAIL include Pig iron and Fertilizers such as Calcium

Ammonium Nitrate ("Sona"), Ammonium Sulphate ("Raja") and Coal

Chemicals like Benzene, Toluene, Xylene etc.


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Plant Wise

BOKARO STEEL PLANT HR Coils & SheetsPlatesCR Coils & SheetsGP Sheets & Coils/ GC SheetsPig Iron, Chemicals & Fertilizers

DURGAPUR STEEL PLANT Blooms, Billets & SlabsJoists, Channels, AnglesBars, Rods &Rebars

Skelp

Product Wise

Semis Blooms, Billets & Slabs

Long Products StructuralCrane RailsBars, Rods &RebarsWire Rods

Flat Products HR Coils, Sheets & Skelp

PlatesCR Coils & SheetsGC Sheets\ GP Sheets and CoilsTin platesElectrical Steel

Tubular Products Pipes

Railway Products RailsWheels, Axles, Wheel Sets


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Wheels, Axles, Wheel Sets Pig Iron,Chemicals & Fertilizers

ROURKELA STEEL PLANT HR CoilsPlatesCR Coils & SheetsGP Sheets/ GC SheetsTinplatesElectrical SteelPipesPig Iron, Chemicals & Fertilizers

BHILAI STEEL PLANT

Blooms, Billets & Slabs BeamsChannels, AnglesCrane RailsPlatesRailsPig Iron, Chemicals & Fertilizers


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PRODUCTS

HOT ROLLED COILS, SHEETS AND SKELP

Hot rolled coils, sheets and skelp (narrow

coil), are the largest product category of the

company in terms of both sales volume and

revenue. Hot rolled coils are primarily used for

making pipes and have many direct industrial

and manufacturing applications, including the construction of tanks, railway

cars, bicycle frames, ships, engineering and military equipment and automobile

and truck wheels, frames and body parts. Hot rolled coils are also used as

feedstock for cold rolling mills where they undergo further processing. Hot

rolled coils are also delivered to the company's own cold rolling mills and

silicon sheet mill and pipe plant in a wide range of widths and thicknesses as the

feedstock for higher value-added steel products. The company is the largest

producer of hot rolled coils, sheets and skelp in India.

SEMI-FINISHED PRODUCTS

The company produces semi-finished products,

including blooms, billets and slabs, which are

converted into finished products in the

company's processing plant and, to a lesser

extent, sold to rerollers for conversion to

finished products .


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PLATES

Steel plates are used mainly for the manufacture of

bridges, steel structures, ships, large diameter pipes,storage tanks, boilers, railway wagons and pressure

vessels. The company also produces weatherproof steel

plates for the construction of railcars. The company is currently the largest

producer of steel plates in India with a domestic market share of more than 80

per cent for these products. The company is the only producer of wide and

heavy plate products in India.

COLD ROLLED PRODUCTS

Cold rolling of hot rolled products produces a superior

surface finish, improves the physical properties of the

steel, such as tensile strength, and reduces its thickness

to precise gauges. As a result, cold rolled products generally command higher prices than hot rolled products. The products of the cold rolling mill include

cold rolled sheets and coils, which are used primarily for precision tubes,

containers, bicycles, furniture and for use by the automobile industry to produce

car body panels. Cold rolled products are also used for further processing,

including for colour coating, galvanizing and tinning. The company also

produces further processed cold rolled products, including galvanized sheetsand tin plates.


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STRUCTURALS

Structural steel products are produced through a

process of hot rolling in the section or structural

mills. They are long steel products with cross

sections of various shapes. I-beams, channels

and angle steel are used in mining, the

construction of tunnels, factory structures,

transmission towers, bridges, ships railways and other infrastructure projects .

BARS AND RODS

The company produces steel bars and rods

through a process of hot rolling billets in the

finishing mills. Reinforcement steel and wire

rods are primarily used by the construction

industry. The company is one of the largest

producers of reinforcement bars in India which

are primarily sold to the construction industry.

SPECIALITY PRODUCTS

Speciality products include electrical sheets, tin plates and pipes. Electrical sheets are cold rolled

products of silicon steel for electrical machinery.

Tin plates are cold rolled steel electrolytically

coated with tin for food packaging. Pipes are

longitudinally or spirally welded from hot rolled coils for conveying such things

as water, oil and gas.


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ALLOY AND STAINLESS PRODUCTS

In addition to the steel products indicated above, SAIL produces a wide range of

alloy steel products at ASP, SSP and VISL. Elements including chromium,

nickel, vanadium and molybdenum are used in the alloy mixture to impart

special properties to steel. These alloy steels are primarily used for sophisticated

applications, including in the automobile, railway and defense industries.

A wide variety of alloy and stainless steel plates, hot rolled sheets, cold rolledsheets, bars, billets, blooms, forgings and die blocks are manufactured at ASP in

an Electric Arc Furnace. SAIL is able to produce different qualities of alloy

steels to meet the requirements of its customers. To increase steel's corrosion

resistance properties, nickel and chromium are used in the making of stainless

steel. SSP produces cold rolled stainless steel coils and sheets with thickness

ranging from 0.3 mm to 6 mm and width ranging from 500 mm to 1,250 mm.These materials can be produced in a large number of grades for different

applications. Stainless steel products are used for diverse applications including

household utensils, automobile trims, conveyor belts, elevators, chemical and

food processing equipment, building and interior decoration and pharmaceutical

equipment.


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CHAPTER -4

DEPARTMENTS


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ORGANISATION CHART

BRANCH SALES OFFICE/WARE HOUSE KOCHI

WAREHOUSESRI.H.R NARASIHHAN

AGM/WHM

MARKETINGSRI.MILTU CHAUDHARI

AGM BM

SRI.R.PREMNATH

SR.TECH

SRI.K.P.BILLU

(SR.T.PH.OPTR)SRI.SUNIL MADHAVAN

SR MGR MRKTGFINANCE

SRI.R.VENKATESWARAN

SR.MGR F

SMT.BEENAMATHEW(OS)

SRI.SARBENDER(EDP.ASST)

SRI.SUNIL. M.(JR.ASST)

SMT.SHEELA ISSAC (SR.OS)

SRI.G.RAJESH(SR.OS)


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DEPARTMENTS

CENTRAL MARKETING ORGANISATION

The ISO 9001:2000 certified Central Marketing Organization (CMO) is Indias

largest industrial marketing set up that markets carbon steel produced by thefour integrated steel plants of SAIL.

Headquartered in Kolkata, it transacts business through its network of 34 branch

sales offices spread across the four regions, 24 Warehouses equipped with

mechanized handling systems, 11 Customer Contact Offices and 15Consignment Agents. CMOs domestic marketing effort is supplemented by its

ever widening network of authorized and rural dealers who meets the demands

of the smallest customers in the remotest corners of the country. A strong IT

support system enables real time network connectivity within the entire CMO

network.

Extensive customer contact, product and segment specialization, close

monitoring of order servicing and feedback analysis through the Customer

satisfaction Index are established norms at CMO. The customer friendly

approach of CMO is backed by practical after sales service.


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Through the process of Key Account Management, CMO provides single

window service to key customers across the country for every business

transaction from enquiry to order booking, order tracking to delivery, and even

consultancy after-sales service.

Central Marketing Organization (CMO) is India's largest marketing home. It has

spread its wings far and wide from Srinagar in the North to Cochin in the South

and Dhimapur in East to Ahmedabad in the west.

All SAIL Product are marketed in India through C.M.O. to ensure quality and

prompt dispatch of product, CMO keeps in touch with producing units as well

as the transport and shipping sectors. It operates through the network of

stockyards, dockyards, Branch sales offices, consignment agents and Extension

counter.

CMO has got responsibility to sell pig iron and mild steel products manufacture

by BSL, DSP, RSP, and BSL, having its headquarters at IspatBhavan, 40

Chouringee Road, Kolkata 71. CMO Branches spread throughout the country

with stockyards for storing and selling Iron & Steel materials of the plants.

Branch manager having other colleagues including finance executive to help

Branch Manager in day-to-day operations.

The network of branches is divided into Four regions as given below: -

Regions Branches Attached


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V) After sale services to customers.

With increasing competition and business scenario, it is their endeavor to

increase the market share and customer satisfactions have appointed KAMs-

Key Account Managers at the branch level and operations at branch level have

been segmented on the type of product-Flat or long. CMO is divided on Long

and Flat basis as both types of products have to be dealt in different manner due

to nature of application and varied uses.

Similarly, for better customer satisfaction, Customer Satisfaction Index (CSI)

has to be measured for the Key Account Customers. The Key Account

Customer has been identified on branch and national level and TMI and KAM

of CMO are following these customer's orders. AT plant level, PAC and PIC are

appointed who have full knowledge of products and process. The production

and coordination meeting is held in the last week of preceding month to decide

the final product mix.

FUNCTION OF MARKETING DEPARTMENT 1. To monitor the orders issued by CMO, So that these orders can fulfilled in

time.

2. Put pressure on CMO, to get orders for an underutilized mill.

3. To sell all the secondary products directly i.e. directly by BSL and by CMO.

4. On day to day basis it takes care of the dispatches i.e. daily dispatch arechecked.

MARKETING ACTIVITIES OF SAIL

ADVERTISEMENTS

Advertising is a paid form of communication where the payment is paid to

media which carries the message to the customers. It is the most commonly


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used tool by the businesses on which company typically spends the greatest

portion of its promotional budgets. There are two distinct objectives of

advertising, short term and long term objectives .

SHORT TERM OBJECTIVES: To stimulate traffic building within days of

the appearance of an advertisements usually by means of a promotional offer.

LONG TERM OBJECTIVES: To increase the number of customers from the

identified target market who have natural tendency to think of the identified

company as the right choice for the class of the business .

CENTRAL SALES DEPARTMENT

It is one and only branch sales office of SAIL in Kerala. The products of SAIL

are stored in modern warehouse of branch sales of Tripunithura. The sales of

products and other operations are undertaken by both in sales office and

warehouse.

Branch sales office of SAIL is given greater importance to customer service.

They provide better customer service by the implantation of Quality

Management System Branch sales office of SAIL can achieve something such

as:

Can give reply to customer queries within three working days. Customer waiting time with respect to issue of delivery order has been

reduced.

Improvement in working, preservation of document and housekeeping.

ABOUT THE WAREHOUSE


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The state government of Kerala had acquired 14.93 acres of land at

Tripunithura and handed over to SAIL to develop a modern warehouse for

its branch sales office, cochin. Originally it was envisaged that warehouse

would have railway facility to material directly into it.

SAIL has invested around 7.49 crores towards the cost of land and

development charge .Out of 14.93 acres ,initially only 5.5 acres had

developed with stand for storing materials,roads,buildings etc. The entire

land is secured with boundary ,walloverlined with barbed wire fencing.

Some infrastructure facilities are available in warehouse. these are:

Warehouse office. Substation for HT power supply. 60T electronic weigh bridge. Covered go down of 720 sq.mts. 12.5MT capacity EOT cranes.

15MT capacity of mobile cranes.

ADVERTISING IN BRANCH SALES OFFICE OF SAIL,

COCHIN

Branch sales office of SAIL always tries to maintain good customer

relationship. So that SAIL given a greater importance for advertising. They give

advertising indirectly through dealers.

SAIL have one dealer in each district of Kerala. The dealers has been

undertaken the advertising activities of SAIL. The dealers makes advertisements

for SAIL and the branch sales office pay them for advertisements and SAIL also

sponsors for the events like basketball game .


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POLICIES OF MARKETING

Marketing Planning has responsible function in the working of marketing

department. All the risky developments, taking out solution to cripple

`situations, this section carries out product pricing and related activities, some

of the programmes, policies and procedures are as follows:-

I) Positioning the product a value based place in customer mind.

II) Finalize annual sales plan and quantity, monthly, weekly, and daily rolling

programme of Rolling mills in consultation with CMO and mills. This plan

is based on the sales forecast receive from JPU SPL/ Iron and steel

controller.

III) Optimizing the product-mix by proper utilization of available stocks.

IV) Receiving Enquiries and complaints, cancellation of orders etc.

V) Coordinating the works of mills and traffic department so as to maximize

dispatches.

VI) Co-ordinations with CMO from stages of enquiry, for exports,

development of new Profiles, sections, modification of product scheduling

till the orders are completed.VII) Development of new qualities of steel.

VIII) Periodical market surveys of products to analyse the market position.

IX) Implementation of suggestions received from the customers feedback.

X) Ensure customer satisfaction by meeting customers regularly; provide

redress to their problems and fulfilment of demand.


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PRICING POLICY AND SALES PROCEDURE:

PRICING:

Fixing the price of a product is the most vital function in the whole process of

the marketing and it should be done after proper market study and requires

decision making ability. If price is too low the company will lose revenue and if

the price is too high it will lose customers resulting in loss of revenue valuable

customers. Coal chemicals are the main product which is to be marketed by the

Marketing Department of Bokaro Steel Plant. Almost all the products are sold

on the fixed price basis. This is due to the fact that the company does not enjoy

monopoly in the said market and the price is totally market driven.

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: -

(a) Prices offered in the auction sales.

(b) Quantity of material to be lifted.

(c) 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 thematerial 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.

STANDING PRICING COMMITTEE:

The committee reviews the price of various products and takes decision infavour 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 (Utility), Chairman GM (Marketing), Convener 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 themembers are always present in all the meetings.


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While deciding the price following points are kept in mind:

Dispatch of the last month. Material in stock.

Forecast of next month. General market condition. Availability of transport facility.

GM (Marketing), as per the need, decides the frequency and time of meetings to

be held. Minute report of all the meetings is prepared and it contains the

existing price and the proposed price. The final price is moved to the MD

through the official channel including GM (Marketing), Executive Director

(MM), GM (Finance and Accounts), and ED (Works). After the MDs approval

the price becomes applicable and the circular indicating the revised price is

printed, issued and distribution to the customers and all the concerned

departments.

DISTRIBUTION

For the purpose of distribution of steel (as per JPC) policy in fashion, customers

are categorized into A, B, C & D. Priority sector customer e.g. Defence,

Railways etc. are under category A and about 60% of the product allotted to

them. The balance 40% is kept for the category B, C & D.


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On the other hand for sale of scraps there is no such policy adopted by Bokaro

Steel Plant. Customers are served on first come first served basis.

CHANNELS

Bokaro steel plant has zero level channels as it directly sells to the customers.

There is no intermediate among producer and consumer. Marketing Department

always remains in contact with the customers extracts information about the

current market situation on the basis of interaction between them.

SALES PROMOTION

Sales Promotion consists of a diverse collection of incentive tools designed to

stimulate quicker or greater purchase of particular product. As a part of

promotional activities, BSL is employing following activities:

a) Discount slabs is provided to boost the sales, description of which is

given below:

Up to 10,000 tones ----- No Discount 10,000 to 15,000 ----- 15% Discount Above 15,000 ----- 20% Discount

b) To find new customers and to inform customers at far distant areas

Tender Notice given in the newspaper for sale of scraps. Best among the

application is accepted with a view to get the best revenue.

c) Sometimes when new item is to be sold sales notice is given in the

newspaper. But most of the time local customers get informed from other

customers.


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MARKETING STRATEGIES

Steel being an industrial commodity it is very necessary to maintain customer

relationship for profitability and smooth running of company.

1. Customer Satisfaction

BSL adopts following practices for customer satisfaction.

a. Procedure / process adapted to access current / future expectation of

customers.

b. It induces market research visiting customer premises attending to customer

complaints.

c. CMO has Market Management Group where specialists monitor changing

demand pattern and development in each Market segment is carried on.

d. It has posted market development officers at various locations that are its

eyes and ears for monitoring current and future expectation of its customer.

e. The Business-planning department is exclusively meant to study customer's

changing demand scenario and assess current and future expectation.


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f. To understand customer needs seminars and workshops are also organized

by BSL.

BUILDING CUSTOMER RELATIONSHIP

BSL has adopted the philosophy of recognizing segment of the market and

identifying key customer in segment and giving them preferential treatment.

CMO sales executives have been trained to use direct selling as tool for building

long lasting relationship with the customers. Easy access to customers to seek

assistance makes proposals send comments and compliments.

MARKET DEVELOPMENT

BSL has valued customers group in identifying their specific needs Specific to

that group thus segmenting and developing market segment for our products.

Major product modifications are done as per their specific needs of the Market

segment thereby creating product differentiation packages.

PRODUCTION ACCORDING TO MARKET NEEDS

BSL is always in touch in market and try to produce according to market needs.

BSL tries to produce quality products / new products which fulfil the need of

market.

STOCK REDUCTION


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Giving facilities like door delivery, road dispatches, credits facility and rounds

the clock stockyard operation.

PRICE FIXATION

Pricing is done basically by the CMO. Taking into consideration cost of

production, government steps on pricing, certain percentage of profit, price of

raw material fright charges etc. i.e. pricing is COST PLUS PRICING.

DESPATCHAs the product is manufactured, this department directs the stockyards the mode

of transport to the destination with reference to dispatch program and dispatch

advice is mode.

DOCUMENTATION

With the dispatch of product the Finance department calculates the total cost of

product as per demand order. Certain receipts and bills quoting the material

code, nature, quantity, and all expenses are sent to connected stockyard. The

product will be then released to the concerned person after proper and complete

payment to the pay-in- authorities is made.

CHANNELS OF DISTRIBUTION

It refers to the set of interdependent organizations involved in the process of

marketing a product or a service available for use or consumption.

FUNCTIONS OF DISTIBUTION CHANNEL

1. It solves geographical distance.

2. Helps to move from producers to customers.


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3. Helps producers not only in the distribution of goods but also in

promoting the sales of products.

4. Assumes risk connected with carrying.

5. It communicates with consumers and producers.6. It creates various utilities.

7. It ensures success of other marketing activities.

8. It helps to stabilize price by stocking adequate goods.

9. It forecast demand.

FUNCTION OF STOCKYARDS

i) Keeping records with regards to receipt of materials with description of

size, quality and quantity etc.

ii) Issuance of loading slip on receipt of delivery order from the branch.

iii) Loading of materials in the customer truck/trailer free of cost.

iv) Issuance of delivery challans-cum-invoice for the quantity delivered.

v) Handing over Test Certificate to customer along with challans.

vi)Submission of stock statement to the branch.

RAW MATERIAL DIVISION


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RMD is planning to expand capacity in view of the enhanced production plans

of the steel plants and cope with the requirement of high quality iron ore. The

Lime stone quarries under RMD are located at Kuteshwar, Purnapani and

Bhawnathpur. Dolomite quarry is at Tulsidamar. RMD has centralized

workshop at Bolani for repair/overhauling of engines & transmission of heavy

earthmoving machinery operating at the mines.

Besides the above, RMD has three customer service office at Rourkela,

Durgapur and Bokaro for coordination with the steel plants. Two liaison offices

are also maintained at Bhubaneshwar and New Delhi for better coordination

with government agencies and other statutory authorities.

IRON ORE MINES

Mines State Annual capacity (MT)

Kiriburu Jharkhand 4.25

Meghahatuburu Jharkhand 4.30

Bolani Orissa 3.00

Barsua Orissa 2.01

Kalta Orissa 1.15


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CENTRAL COAL SUPPLY ORGANISATION

Situated at Dhanbad in Jharkhand, the Central Coal Supply Organization

(CCSO) of SAILs Operations Directorate, is entrusted with the vitalresponsibility of ensuring daily movement of around 12000 tons each of washed

coking coal and power grade coal to all sail steel plants.


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PROCESS FLOW CHART-BRANCH SALES OFFICE SAIL, KOCHI

YES

NO

ANNUAL DEMAND ASSESMENT

PLANT PRODUCTION

AVAILABILITY OF

MONTHLYDEMANDFORECAST

SALES PLAN

ORDER STOCK

CUSTOMER ENQUIRY

CUSTOMER ENQUIRYCUSTOMER CONTACT

READYSTOCK

PLANNING

ISSUE OF OL/SO

BRQ

MP AT SRM

STTR

DESPATCH FROMOTHER

WAREHOUSE

DD ORDER

MP AT SRM

DESPATCH

SETTLEMENT OF QUALITYCOMPLAINTS

ISSUE OF REFUND/CRDDIT NOTES

RECEIPT AT WAREHOUSE

DELIVERY OF MATERIAL

DESPATCH

DOCUMENT NEGOTIATION


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PROCESS FLOW CHART FOR DELIVERY OPERATIONS: WAREHOUSE/SAIL/KOCHI

MATERIAL DELIVERY

ISSUE OF LOADING SLIP

VECHICLE INSPECTION & ENTRY

GROSSWEIGHT OFVECHICLE

ISSUE OFCHELLAN/INVOICE

LOADING INVECHICLE

TYRE WEIGHT OFVECHICLE

MATERIALVERIFICATION

RELEASE OFVECHICLE


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CONCLUSION


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CONCLUSION

The main objective of the study were to understand marketing activities and

distribution channel of branch sales office of SAIL, Cochin.

From the study it is clear that the advertising, competitors, customers, product

delivery and other processes in delivering the products of SAIL to thecustomers.

As conclude, let us hope that SAIL will become the leader of steel production in

near future and may they can their position to the India s largest steel producer.

Documents

Arun.r.(Mba Ib)Report of Intern Sail