BOKARO STEEL PLANT- PROJECT.docx

7/28/2019 BOKARO STEEL PLANT- PROJECT.docx

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A Project Report

On

Marketing of secondary & By-products of Bokaro Steel Plant

At

Bokaro Steel Plant under

Steel Authority of India Limited

By

Vishnu Prasad Mahto

Under the guidance of

Prof. (Dr.) A. A. Deshmukh

Submitted to

University of Pune

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

Master of Business Administration (MBA)

2009-2010

Through

Padmabhooshan Vasantdada Patil Institute of Technology, MBA

Department

Pune


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ACKNOWLEDGEMENT

Every event comes to a successful end due to the involvement, guidance and co-

operation of all the people conserved. I take this opportunity to thank all of them who

are directly and indirectly involved with this project, without whose help this project

would never have been completed successfully.

I would like to express my heartfelt thanks to all the officers of Bokaro Steel Plant

Who really helped a lot and guided me through my training session. This project

would not have been possible in the absence of their help.

I am highly grateful to

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

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

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

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

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

PPC)

Mrs. Meena Kamal (Manager, Marketing Department)

For providing me an opportunity to make a project in such a reputed

organization.

Its my Prime responsibility to thank my parents & close friends for having put up

with the inconveniences caused during the preparation of this project.


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LIST OF TABLES

Table No. Title of the Table Page No.2.1 Commissioning dates & capacity of major units

2.2 Sources of Raw material

2.3 List of Secondary Products

2.4 List of by products which are sold by BSL

2.5 Priority in Booking of materials by marketing dept.

5.1 Types of Buyers

5.2 Most used selling technique

5.3 Value of secondary & By products produced duringthe year 09-10 and cash collected after selling them

5.4 Contribution of products in the total quality producedand in the total revenue5.5 Reason for purchase from BSL

5.6 Satisfaction with respect to quality

5.7 Lead time for the supply of the products

5.8 Time taking to replace the material

5.9 Inquiry &information given on order status

5.10 Difficulty faced by buyers

5.11 Preference of mode of sale of the buyers

5.12 Satisfaction of buyers with regard to e-auction sellingmethod


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5.13 Buyers dealing with companies other than BSL

5.14 Satisfaction of buyers with regards to refund claimprocess

5.15 Overall quality of the product in relation to its price

5.16 Consumer satisfaction about the current source ofinformation for the products

5.17 Overall experience with BSL


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LIST OF FIGURES

Figure

No.Title of the Figure Page No.

2.1 Share holding pattern in sail

2.2 Marketing Department

2.3 Organization chart of marketing Department

2.4 Flow chart of e-Auction

2.5 Process chart of fixed price sale

5.1 Types of Buyers

5.2 Most used selling technique

5.3 Value of secondary & By products produced during the year09-10 and cash collected after selling them

5.4 Contribution of products in the total quality produced and inthe total revenue

5.5 Reason for purchase from BSL

5.6 Satisfaction with respect to quality

5.7 Lead time for the supply of the products

5.8 Time taking to replace the material

5.9 Inquiry &information given on order status

5.10 Difficulty faced by buyers

5.11 Preference of mode of sale of the buyers

5.12 Satisfaction of buyers with regard to e-auction sellingmethod

5.13 Buyers dealing with companies other than BSL

5.14 Satisfaction of buyers with regards to refund claim process

5.15 Overall quality of the product in relation to its price


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5.16 Consumer satisfaction about the current source ofinformation for the products

5.17 Overall experience with BSL


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INDEX

Sr.

Number

Title of Project report Page

Number1 Executive summary

2 Company Profile

2.1 Steel Authority of India limited (SAIL)

2.2 Vision and Credo of sail

2.3 Company Profile

2.4 Major Dept. of BSL

2.5 Secondary and By-products of BSL

2.6 Marketing Dept. of BSL

2.7 Pricing policy & selling procedure

3. Objectives of the study

4. Research Methodology

5. Data Analysis

6. Findings

7. Suggestions & Conclusions

8. Limitations

9. Bibliography


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Steel authority of India Limited (SAIL) is the leading steel-making company in India.

It is a fully integrated iron and steel maker, producing both basic and special steels for

domestic construction, engineering, power, railway, automotive and defence

industries and for sale in export markets.

Ranked amongst the top ten public sector companies in India in terms of

turnover (Rs. 40551cr.in financial year 09-10). It is one of the Maharatna PSUs

with 85.82% owned by Government of India. 21st largest steel producer in the world,

largest in India with over one fifth share of domestic finished steel production. SAILs

overall ranking was second in the list of world class steelmaker rankings by world

steel dynamics, a leading steel information services provider. There are five integrated

Steel Plants (ISPs) under SAIL.

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal

BOKARO STEEL PLANT

Bokaro Steel Plant is one of the subsidiaries of SAIL and fourth integrated

plant in the Public Sector. The Plant is hailed as the countrys firstSwadeshisteel

plant, built with maximum indigenous content in terms of equipment, material and

know-how. It mainly produces flat products like Hot Rolled Coils, Hot Rolled Plates,
http://sail.co.in/pnu.php?tag=bhilaihttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=iiscohttp://sail.co.in/pnu.php?tag=iiscohttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=bhilai


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Hot Rolled Sheets etc. Some secondary and by products are also produced with main

products in Bokaro Steel Plant.

As the plant is very big secondary and by products are produced in huge

amount with the main steel products and after the modernization of the Plant it is

being expected that these products i.e. secondary and by products will come out in

much more quantity than the present level. Therefore a proper attention is needed for

these secondary and by products.

Though some of these products are used within the Plant for various purpose,

rest of the products are sold out in the market. Hence these products earn revenue for

BSL. Marketing department of BSL is concerned with the selling of these products

they have their own strategy and policy.

Therefore the purpose of the research study titledMarketing of Secondary

& By-products of Bokaro Steel Plant is to find out more and more information

about the secondary and by products of Bokaro Steel Plant like production of these

products, buyers and customers of these products, competitors etc. The topic for the

project report was selected by me and the research area was limited within the Bokaro

district. The duration for the project was from 07st June to 31th July 2010.

The main objective of the research study was to find out the deficiencies if

there any in the present marketing strategy and provide necessary information so that

a good marketing strategy can be adopted and hence revenue earned from these

products can be increased.


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[2.1] STEEL AUTHORITY OF INDIA LIMITED (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in

India. It is a fully integrated iron and steel maker, producing both basic and special

steels for domestic construction, engineering, power, railway, automotive and

defence industries and for sale in export markets.

Ranked amongst the top ten public

sector companies in India in terms of

turnover, SAIL manufactures and sells a

broad range of steel products, including

hot and cold rolled sheets and coils,

galvanized sheets, electrical sheets,

structurals, railway products, plates, bars and rods, stainless steel and other alloy

steels. SAIL produces iron and steel at five integrated plants and three special steel

plants, located principally in the eastern and central regions of India and situated

close to domestic sources of raw materials, including the Company's iron ore,

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

second largest producer of iron ore and of having the countrys second largest mines

network. This gives SAIL a competitive edge in terms of captive availability of iron

ore, limestone, and dolomite which are inputs for steel making.

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

domestic as well as the international market. This vital responsibility is carried out

by SAIL's own Central Marketing Organization (CMO) that transacts business

through its network of 37 Branch Sales Offices spread across the four regions, 25

Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact


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Offices. CMOs domestic marketing effort is supplemented by its ever widening

network of rural dealers who meet the demands of the smallest customers in the

remotest corners of the country. With the total number of dealers over 2000 , SAIL's

wide marketing spread ensures availability of quality steel in virtually all the

districts of the country.

SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000

accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron

from SAILs five integrated steel plants.

With technical and managerial expertise and know-how in steel making gained over

four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers

services and consultancy to clients world-wide.

SAIL has a well-equipped Research and Development Centre for Iron and Steel

(RDCIS) at Ranchi which helps to produce quality steel and develop new

technologies for the steel industry. Besides, SAIL has its own in-house Centre for

Engineering and Technology (CET), Management Training Institute (MTI) and

Safety Organization at Ranchi. The captive mines are under the control of the Raw

Materials Division in Kolkata. The Environment Management Division and Growth

Division of SAIL operate from their headquarters in Kolkata. Almost all the plants

and major units are ISO Certified.


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Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal

Special steel plants

Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra
http://sail.co.in/pnu.php?tag=bhilaihttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=iiscohttp://www.sail.co.in/pnu.php?tag=specialhttp://www.sail.co.in/pnu.php?tag=special_salemhttp://www.sail.co.in/pnu.php?tag=special_visvesvarayahttp://www.sail.co.in/pnu.php?tag=subsidiarieshttp://www.sail.co.in/pnu.php?tag=subsidiarieshttp://www.sail.co.in/pnu.php?tag=special_visvesvarayahttp://www.sail.co.in/pnu.php?tag=special_salemhttp://www.sail.co.in/pnu.php?tag=specialhttp://sail.co.in/pnu.php?tag=iiscohttp://sail.co.in/pnu.php?tag=bokarohttp://sail.co.in/pnu.php?tag=rourkelahttp://sail.co.in/pnu.php?tag=durgapurhttp://sail.co.in/pnu.php?tag=bhilai


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[2.2] VISION ANDCREDO OF SAIL

VISION

To be a respected world class Corporation and the leader in Indian steel business in

quality, productivity, profitability and customer satisfaction.

CREDO

We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business. We create and nurture a culture that supports flexibility, learning and is proactive

to change.

We chart a challenging career for employees with opportunities for advancementand rewards.

We value the opportunity and responsibility to make a meaningful difference inpeople's lives.


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[2.3] COMPANY PROFILE

COMPANY : SAIL

TYPE : Public Sector

FOUNDED : January 24, 1973

CORPORATE OFFICE : New Delhi

AREA SERVED : Around 20 countries including EU,

Middle East, SE Asian &

Neighboring Countries.

INDUSTRY : Steel making industry

ANNUAL TURNOVER : Rs. 40551cr. (financial year 09-10)

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

REVENUE : Rs. 133383.5 million (march 2010)

OPERATING INCOME : Rs.122297.6 million (march 2010)

NET INCOME : Rs. 30668.4 million (march 2010)

EMPLOYEES : 117 thousands

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


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Fig. no. 2.1

BOKARO STEEL PLANT AT A GLANCE

As the fourth integrated steel plant in the Public Sector conceived in 1959,

Bokaro Steel Plant actually started taking shape in 1965 in collaboration with the

Soviet Union. The collaboration agreement was signed on 25th January 1965.The

design of the plant was envisaged with a capacity of 1.7 million tonnes (MT) per

annum in stage-I and 4 MT per annum in stage-II, with provision for further

expansion. The construction work started on 6th April 1968.

Bokaro Steel Plant was originally incorporated as a limited company on 29th

January 1964.With the formation of the Steel Authority of India Limited (SAIL) on

24 January 1973, it became a wholly owned subsidiary of SAIL and on 1 st May 1978

it was eventually merged with SAIL through the Public Sector Iron & Steel

Companies (Restructuring & Miscellaneous Provisions) Act 1978.

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

maximum indigenous content in terms of equipment, material and know-how. Its first

phase of 1.7 MT ingots steel commenced on 2nd October 1972 with the

85.82%

11.96%

1.75%0.47%

SHARE HOLDING PATTERN IN SAIL

GOI

Fis/Banks/MFs/FIIs/GDR

Individuals

Companies/Trusts


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

the commissioning of the third Blast Furnace.

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

Plant is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates,

Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates

(TMBP) and Galvanized Plain and Corrugated (GP/GC) Sheets.

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

Engineering industries including automobile, pipe and tube, LPG cylinder, barrel and

drum producing industries. To keep pace with the latest trends in steel making, the

first phase of modernization was sanctioned on 23rd July 1993.As the benefits of the

modernization have been reaped. Bokaro Steel is continuously upgrading its various

production facilities to bring improvements in productivity and quality.


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[2.4] BOKARO STEEL PLANT (Major Departments)Table no. 2.1

Commissioning dates and Capacity of Major Units

Unit

Date of

Commissioning Number

Capacity

(MT) Product

Agreementwith USSR

25 Jan, 1965

Coke Ovens Sep'72Feb' 85 8 Batteries of 69 Ovens 3.48 BF Coke

Sinter Plant Sep'72June'82 3 Machines of 252 m2 area 6.20 Skip sinter

BlastFurnaces

Oct'72 - Jun'85 5 furnaces of 2000 m3volume

4.585 Hot Metal

Steel MeltingShop I

Jan'74Dec'78 5 LD converters of 130 T 2.20 Ingot Steel

Steel MeltingShop II

Jun'83 - Jan'85 2 LD Converters of 300 T 2.25 Liquid Steel

ContinuousCasting

Sep'97 - Mar'98 2 Double Strand castingm/c

2.16 Cast Slab

SMS+CCS4.36 Crude Steel

Slabbing Mill Dec'74 8X4 Soaking pits of 160 T& one1250 mm universalSlabbing Mill

1.90 Rolled slab

Hot Strip Mill Dec'75 4 reheating Furnaces, 5roughing & 7 finishingstands

3.955 HR Coil

Hot RolledCoilFinishing

Jan'76 2 Shearing line & 1 SlittingLine

1.2 to0.92

HRPlate/SheetHR Slit Coil

Cold RollingMill 1

Jun'77 Pickling Lines, TandemMills Annealing Furnaces,Skin PassMills-2, Temper/DCRMill-1,Shearing lines-5, Slittinglines-3& Hot Dip GalvanisingComplex

-1

1.66 Saleable CRProducts CRcoils/Slitcoil/ CRSheet, BlackPlate, GPCoil/GP&GCSheet

Cold RollingMill 2

Sep'91


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Raw Materials & Material Handling Plant

The Raw Materials and Material Handling Plant of Bokaro is responsible for

receipt, blending, storage, screening and supply of raw materials to Blast Furnaces,

Sinter Plant and Lime Dolomite Shop as per their requirements. The shop also

maintains a buffer stock of raw materials to take care of any interruption in supplies.

Raw materials are handled by four wagon tipplers, stackers and reclaimers, and

transported through a network of conveyor belts.

Basic functions:

Receive different raw materials from various mines through wagons and theirunloading & stacking with the help of tipplers & stackers

Blend raw material by making layers in beds & cross section-wise cuttingbeds by reclaimer

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

different Units as per their requirements

Basic facilities:

4 Rotary Wagon Tipplers - 20 Wagons/Hr each 7 Twin boom Stackers - 1200 T/Hr each 5 Barrel Type Reclaimers - 1000 T/Hr each 1 Bucket Wheel Type Reclaimer - 500 T/Hr 2 Transfer Cars, 10 Shuttle Conveyors, 11 Cranes, 8 Telphers


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SOURCES OF RAW MATERIAL

Table no. 2.2

Material

No. of

Beds

(240 M)

Stock

(N0, of Days)Source

Iron Ore Lump 4 24 Kiriburu, Meghataburu, Bolani, Gua

Iron Ore Fines 6 16 Kiriburu, Meghataburu, Bolani, Gua

Lime Stone BF

Grade

4 13 Bhawanathpur, Khanabanjari

Lime Stone SMSGrade

2 21 Kuteshwar, Jaisalmer, Imported

Dolomite Lump 1 16 Bhawanathpur, Birmitrapur,

Tulsidamar,

Sonakhand, Ragangpur, Mehgaon

Dolomite Chips 50 Bhutan, Salwari

Manganese Ore Barbil, Banspani

Imported Coal

Australia, New Zealand, USA

Prime Coking

Coal

46 Dugda, Munidih, Jamadoba, Belatand

Medium Coking

Coal

Silos Kathara, Kedla, Rajrappa, Mahuda,

Swang

Coal Middling

for Power

Plant

Kathara, Rajrappa, Kedla, Swang,

Giddi, West Bokaro, Kargali,

Mahuda, Dugda, Katrasgarh etc.


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Coke Ovens & By-product Plant

The Coke Oven Complex at Bokaro supplies high quality coke to the Blast

Furnaces. The process of coke making consists of the destructive distillation of coal in

the absence of air. The coal is heated in a closed chamber there by driving out the

volatile components present in coal and leave behind the residue called coke. This

phenomenon is called as the carbonization of coal can be carried out at different

temperature depending upon the type of coke we need.

By-Product Plant

It Consists of:

Gas Condensate Section Ammonium Sulphate Plant Benzol Recovery Plant Tar Distillation Plant Sulphuric Acid Plant

Products produced from by-product plant.

Nitration-grade Benzol

Nitration-grade Toluene

Xylene Light Solvent Naphtha Still Bottom Oil Pitch Creosote Mixture Road Tar Coal tar wash oil


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Extra hard pitch Hard medium pitch Hot Pressed naphthalene

SCRAP AND SALVAGE DEPARTMENT:

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

salvage it & make it useful by adding value to it SSD has a dual role to play in overall

scheme of things in the works division. Primarily it has to supply Iron and Steel scrap

to Steel Melting process. Secondly, the role of SSD is to collect all the Ferrous Scrap

(waste for the place of origin) and bring it to the department to transform it into a

useful product. Every department of the Plant from Coke Oven to Cold Rolling Mill

Produce metal waste termed scrap. This may be in the form of maintenance waste e.g.

broken or worn out parts, damaged structure or equipment or may be process arising.

The prime products continue on their production flow towards the final defined

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

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

trimming or produce which are below the planned size. In a nut shell SSDs role is to

ensure that all Iron and Steel Scrap (unwanted at place production) are transported to

site processed and transported SMS Magnetic Scrap yards for using as coolant in the

converter bath. Surplus scrap after supplying the requirement of scrap is offered for

external sale to generate cash resources for the company.


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Blast Furnaces

Bokaro has five 2000-cubic meter Blast Furnaces that produce molten iron - Hot

Metal - for steel making. Bell-less Top Charging, modernized double Cast Houses,

Coal Dust Injection and Cast House Slag Granulation technologies have been

deployed in the furnaces. The process of iron-making is automated, using PLC

Charging System and Computer Controlled Supervision System. The wastes products

like Blast Furnace slag and gas are either used directly within plant or processed for

recycling / re-use.

Steel Melting Shops

Hot Metal from the Blast Furnaces is converted into steel by blowing 99.5% pure

Oxygen through it in the LD converter. Suitable alloying elements are added to

produce different grades of steel.

Bokaro has two Steel Melting Shops - SMS-I and SMS-II. SMS-I has 5 LD converters

of 130T capacity each. It is capable of producing Rimming steel through the ingot

route. SMS-II has 2 LD converters, each of 300 T capacity, with suppressed

combustion system and Continuous Casting facility. It produces various Killed and

Semi-Killed steels.

Cold Rolling Mill

The Cold Rolling Mill at Bokaro uses state-of-the-art technology to produce high

quality sheet gauge material, Tin Mill Black Plate and Galvanized Products. Cold

rolling is done to produce thinner gauge strips of very smooth and dense finish, with


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better mechanical properties than hot rolling strips. Rolling is done well below re-

crystallization temperature without any prior heating of the material. The products of

CRM are used for deep drawing purposes, automobile bodies, steel furniture, drums

and barrels, railway coaches, other bending and shaping jobs and coated steels. The

CRM complex comprises of two Pickling Lines (including a high speed Hydrochloric

Acid Pickling Line with re-generation facilities), two Tandem Mills, an Electrolytic

Cleaning Line, a Continuous Annealing Line, Bell Annealing Furnaces, two Skin-

Pass Mills, a Double Cold Reduction Mill (DCR), and Shearing Lines, Slitting Lines

and a packaging and dispatch section. The 5-stand Tandem Mill is capable of rolling

sheet gauges up to 0.15 mm thickness. It has sophisticated Hydraulic Automatic

Gauge Control, computerized mill regulation and optimization control.


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[2.5] SECONDARY AND BY-PRODUCTS OF BSL

Apart from the primary and main steel products there are some other products

which are obtained during the steel making process. These products are termed as

secondary and by products. Some of the products are used within the Plant while rests

are sold in the market.

SECONDARY PRODUCTS

Secondary products are the defective and rejected steel products. During the

manufacturing process due to improper mixing of material or some other

manufacturing defect some of the products are not produced according to the desiredquality and do not match with the customers demand. Hence these are rejected and

termed as Secondary products. Some of these products are used within the Plant for

re-melting purpose and rests are sold to the secondary buyers. Scraps generated inside

the Plant are also termed as Secondary products. A list of Secondary products is as

follows:

LIST OF SECONDARY PRODUCTS

Table no. 2.3

PRODUCT PRODUCT

A. IRON MELTING SCRAP CI Block/SHM/CI

Boulder(Unbroken)/RBIM PCM Shot Plate Scrap/CI

Skull Mixed CI Scrap/CI Fdry.

Rejects Fine Iron Chips/CI Boring

B. INDUSTRIAL SCRAPS HR Coils DDHR Pickled Coils CRUAC/Def CR Coil/CRCE Defective CR Sheet/CR Sheet

ctg. AMG HR Plate/Sheet/Ctg Def.GP/GC Coil/Sheet MCRC/Maint. scrap-ASP MS Turning & Boring

C. PIG IRON D. BFG SLAG BF Granulated Slag

E. REROLLABLE STEEL

SCRAP Defective Slabs Slab End Cutting MS Thick Plate Cuttings Cobble Plate

F. IDLE ASSETS Used rejected rolls Used rejected stores items Capital Idle Assets


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G. STEEL MELTING

SCRAP

H. NON FERROUS (Zinc

Dross)

I. WASTE PRODUCTS

BY-PRODUCTS

By-Products are mainly coal chemicals which come out during the coke making

process. Coke making process consists of the destructive distillation of coal inabsence of air. A list of By Products which are sold by BSL is as follows:

Table no.2.4

PRODUCTMODE OF

DELIVERYUSES

A. Benzyl

Products

(Benzene)

Railway tankwagons, roadtankers in loosecondition

It is used as an important raw material forvarious drugs and dyes. Benzene hexachloride is used as a pesticide. It is also usedin the manufacturing of phenol, DDT, nylon

etc.B. Toluene(Nitration

grade)

Railway tankwagons

It is used as a solvent in chemical reactions,Paint industries, rubber industries, makingof adhesives, making of printing ink etc.

C. Xylene Railway tankwagons

It is used in making of Paints, thinners &varnish, printing ink and in rubber industry.

D. Light

Solvent Naptha

Railway tankwagons

It is used as solvent, making of dyes andprinting ink

E. Still Bottom

Oil

Railway tankwagons and roadtankers

It is mixed with other materials and used forvarious purposes like water- proofing,making of roofs of building. It is also used

as industrial oil and in making of rubberpaints for vehicles.

F. Extra Hard

Pitch

Gunny bags inloose condition

In aluminum industries as a binding materialfor anode.

G. Soft Pitch Gunny bags inloose condition

It is used in the production of pitch fiberpipes, roof binders, in preparation of roadtar, building materials, sheeting, tilling etc.It is also used as refractory bricks.

H.Hot PressedNaphthalene

Gunny bags inloose condition

It is used as Dye intermediate, as aninsecticide, dispersing agent etc.


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Idle asset

[2.6] MARKETING DEPARTMENT OF BSL

Marketing Department is one of the Departments under Materials

Management Division of Bokaro Steel Plant. Marketing Department is entrusted withthe responsibilities to sell BSLs Secondary Products, By-Products/Waste Products,

and Idle Assets etc.

The Marketing Departments sales procedures are covered by the guidelines

given by SAIL Corporate office DELHI, and is given by CMMG (CORPORATE

MATERIAL MANAGEMENT GROUP), the objective of which is To sell the

materials in a fair and transparent manner to achieve maximum possible revenue to

the company

(a) Marketing of prime products of SAILs plant including BSL is done by

CMO (Central Marketing Organization) which is a unit of SAIL.

(b) Marketing of secondary products and coal chemicals are done directly by

Marketing Department of BSL. As a matter of fact, the Secondary & By-Products are

marketed by the individual Plants only.

Marketing of Secondary and By Products are conducted by various sections by

marketing department of Bokaro Steel plants. Different sections of the marketing

department can be shown with the help of the following diagram:

Fig. no. 2.2

Marketing Department

Secondary Steel BF slag & waste

products

Chemical &

By-product


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Organization Chart of Marketing Department

Fig. no. 2.3

GM (MM-Mktg)

(Head of Marketing)

DGM (MM- Mktg)

AGM (Mktg)

[Sale of Sec. Steel & Contract Cell (MM)](Administration & Establishment; Audit,

Vigilance, RTI replies, QC, ISO, DCA)

Sr. Mgr (Mktg)Idle Assets, Surplus,U&S items & Hindi

Officer

Jr. Mgr (Mktg)Price trends, Pricing

e-auction co-

ordination

Jr. Mgr (Mktg)MIS, Pricing, QC

Deptl. Safety

Officer

Jr. Mgr (Mktg)Sec. Steel, Slag,Waste Product

Iron & Iron scrap

Sr. Mgr.

Posted at ERP

Mgr (Mktg)

BPP Chemicals & Reports

Assistant

Idle Asset, TS

Items

Assistant

Slag, Waste

Products

Assistant

Sec Steel

Jr. Officer (Mktg)BPP Chemicals

Jr. Officer (Mktg)Administration,Co-ordination

ISO, Record officer

Sr. Office

Secretary

Chemicals


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OBJECTIVES OF MARKETING DEPARTMENT

To maximize the revenue from the sale of Secondary and By Products, ideal or

used material and other waste products and to keep the customers satisfied.

FUNCTIONS OF MARKETING DEPARTMENT

To sell Secondary steel products and By Products directly. To review and set price for the products. To settle refund claims. On day to day basis it takes care of the dispatches i.e. daily dispatch are

checked.

To maintain the present customers pool and add new customers.

MARKETING STRATEGIES

The marketing strategy of the department is mainly based on customer orientationand customer satisfaction and for this purpose the department adopts following

practices:

To monitor current customers and anticipate for future customers. To access current as well as future expectation of the customers. To conduct market research which includes visiting customers premises,

collecting customers feedback and accepting their complaints.

To understand customers need. For this purpose seminar and workshop areorganized by BSL.


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MARKETING OF SECONDARY AND BY-PRODUCTS

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

of secondary products was limited and such arising was recycled for re-melting.Therefore there was no scope for marketing of these products. But now the plant

capacity has been increased up to 4 million tones. New technology adopted for

increasing the capacity of the plant while the use of arising for re-melting has been

drastically reduced. Due to this these products remained as surplus.

In the nineties, lot of changes in the economic scenario of the country took

place. The concept of more employment in Public Sector Enterprises changed into

more profits. There by the plant i.e. BSL also changed its policy and made a

marketing strategy for the Secondary and By-Products remained as surplus and started

selling of these arising in the open market directly.

In the recent years a number of foundries, re-rolling Mills and chemical firms

have come into existence throughout the country. These small scales industries need

Secondary and By-products as raw material for their products. Therefore demand has

also been increased. Thus the company requires proper marketing of the products. The

company therefore has engaged itself in educating these small-scale units about the

use of secondary & By-products in the production of various end products for general

public consumption.

The marketing policy includes following things:

Committed delivery. Competitive price Quick complaint settlement. Culture of customer service.

It is necessary to mention here that the companies' profit consists of 10%

turnover of secondary products for the Last two years


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[2.7] Pricing policy and Selling Procedure:

Pricing of Secondary and By-Products:

Setting price for a product is an important function in the whole marketingprocess and it should be done after taking various factors in mind. If the price is too

low the company will lose revenue and if the price is too high it will lose customers.

The marketing department of BSL has its own standing pricing committee that

decides and sets the price of Secondary and By-Products.

Standing Pricing Committee:

The committee reviews the price of various products and takes decision in

favor of maximizing the profit. It holds meeting at least once in a month. But thevolatility of the market and pool of different products lead to a number of meeting of

the committee in quick succession.

The committee consists of:

GM (Chairman, Pricing committee) GM (Marketing Co-ordinator) DGM (Finance), member DGM (Sales Coordination), member DGM (Stores), member DGM (BPP), member

For Scrap goods the DGM (SSD) replaces the DGM (BPP). Rests of all the

members are always present in all the meetings.

Most of the Secondary and By-Products (approx. 90-95%) are sold through e-

auction process where a reserve price is set for the products by the committee. But the

price at which the products are sold should not be less than 10% of the reserve price

of Secondary products and 2.5% of the By-Products. Reserve price is set one daybefore the auction and it is not disclosed to the buyers.

The policy adopted by the marketing department for pricing of materials is

largely guided by the price offered by the bidders during the auction. The various

factors taken into consideration while pricing the re-roll able items can be enumerated

as follows: -

Prices offered in the auction sales. Quantity of material to be lifted. Managing director's approval.


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The average of the prices offered by the bidder during auction is taken as the

basis to fix the prices of materials to be sold through marketing department. Further

the techniques of break-up-pricing are adopted i.e. the larger the quantity purchased

lower will be the prices. This technique encourages the buyers to purchase larger

quantity. Finally the managing director approves the prices set by the pricingcommittee. On this basis, a price list is prepared for all the potential buyers. Price list

also indicates the sales tax and Excise duty to be levied. Thus the interested parties

place their orders with the marketing department on the basis of price list reviewed

every month. Every customer is required to have a security deposit amount of Rs.1

lakh. The payment for the material required is to be in advance. The material is

supposed to be lifted on the specified date on account of delay the party has to pay the

difference in the prices, if there is any increase in subsequent month.

Selling Procedure of Secondary & By-Product:

Though maximum secondary and By-Products are through e-auction process

but there are some other selling techniques which have been adopted by the marketing

department for the products.

Different modes of selling adopted by the marketing department are as

follows:

MODE OF SALE

E-AUCTION SALE FIXED PRICE SALE INTER PLANT TRANSFER MOU

E-AUCTION SALEE-auction is the main selling procedure used by the marketing department. It is

an on-line auction which is held on the website- www.metaljuction.com. In this

method the defective materials from all the mills is arranged in heaps of 100-150

tones to be sold by auction. Generally auction sale takes place every Wednesday of amonth. There is a reserve price for the products to be sold through e-auction and it is

mandatory that the final quoted price in the auction should not be less than 10% of the

reserve price of the Secondary products and 2.5% of the By-products. Only those

bidders who are approved by the Client and hand over stamped and manually

signed General Rules and Regulations governing conduct of online auction along

with Letter of Interest, required EMD amount and other necessary documents to the

Service Provider at least 3 days prior to the start of online auction are given Login

ID and PASSWORD to enable them view and participate in online auction.
http://www.metaljuction.com/http://www.metaljuction.com/http://www.metaljuction.com/


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FLOW CHART OF E-AUCTION

Fig .no. 2.4

Advertisement of dates/type of

materials on SAIL

website/Newspaper

Posting of lot details to be

auctioned on SAIL / Metal

Junction website

Inspection of lots by

customers

Auction conducted on metal

junction website

Report of Auction by metal

junction

Reserve Price Opening

Committee meeting

Recommendations Approval

for SaleIssue of Offer Letter


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FIXED PRICE SALE

In this mode of selling products are sold on a fixed price basis. The company

gives priority to the different category of buyers for the allocation of material.

PROCEDURE OF FIXED PRICE SALE

1. General Sale notice for different items to be sold is posted on SAIL websiteand advertisement is given in various newspapers (Local and National)

between 15th

to 20th

of every month for the next month.

2. For requisition of materials, applications are invited from customers between25th -30th/31st of every month.

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

4. Offer letters are issued to the customers.

PROCESS CHART OF FIXED PRICE SALE

Fig .no. 2.5

Advertisement

of type ofmaterials on

SAILwebsite/Newsp

aper

Applicationfrom customers

Allocation ofmaterial

Issue of offerletter


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PRIORITY IN BOOKING OF MATERIALS BY MARKETING

DEPTT

Table no.2.5

Category Priority Buyer Quantity to be allotted

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

joint ventures of govt. units having

more than 50% govt. share

Any quantity required

by them

B. 2n Dependent BIADA units with

MD/BIADAS recommendations &

MD/BSLs approval.

Maximum 70% of the

balance available

quantity after meeting

the 1st priority

C. 3r Consumers/Processes of Jharkhand

state

30% of balance

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

quantity of material left

if any


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REFUND CLAIM

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

claim for the balance of:

Price of material Security deposit Earnest money deposit (in case ofsale trough Tender and e-auction. Turn over tax(if applicable)

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

customers to the Marketing department.

MAJOR COMPETITORS

TATA STEEL RINL ISPAT ESSAR STEEL JINDAL STEEL

CUSTOMER LIST

1. Ma Durga Ispat Udyog, Bokaro2. Bokaro Development Area3. Apex Met Chemicals Pvt. Ltd, Bokaro4. Shiva Chemicals , Chas5. A.L.P. Colour and Chemicals Industries, Jamshedpur6. Shree Ram Industries, Bokaro7. Shree Bholey Udyog, Dhanbad8. Jharkhand Tar Products, Bokaro9. Shri Ambika Sales Corporations, Patna10. Amit Steel Corporation, Howrah


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11. Diwan Steel, New Delhi12. Nenu Mal & Sons, Kanpur13. Bhawani Metals, B.S.City14. Birma Industrial & Business Enterprises Pvt. Ltd, Ranu15. Pandey Brothers, Chas16. Chinar Steel Segments, B.S.City17. Mangal Pvt. Ltd., Bokaro18. United Iron Coporation, Dhanbad19. Bharat Supply Company, Kolkatta20. Anup Steels, Delhi21. Hanuman & rise Pvt. Ltd, Biada22. Amit Metcum Pvt. Ltd.23. Steel India, Dhanbad24. Kunal Steel Coperation, Ludhiana25. GD Goel & Company, Kokatta26. Modern Indua concast Ltd, Kolkatta27. Agarwal Steel Centre, New Delhi28. SSE, Sindri


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The objective of the research study is to know about the organization and collect

maximum information about the organization. The study includes the information

about Bokaro Steel Plant like Secondary & By-Products of Bokaro Steel Plant,

production of the products and marketing strategy regarding the products.

The research study mainly revolves around the Secondary and By-Products of

Bokaro Steel Plant. So the main objective of the study is to analyze various aspect of

marketing policy of BSL and provide important feedback to the management.

Some of the objectives can be pointed out as:

To know about SAIL and BSL. To know about the products of BSL. To collect information about the production of Secondary and By-

Products of Bokaro Steel Plant and revenue from these products.

To examine customers of BSL for Secondary & By-Products and theirsatisfaction level.

The main objective is to know about the marketing strategy ofSecondary and By Products of BSL and provide necessary information

to the management so that the strategy can be improved.


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INTRODUCTION

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

data about issues relating to marketing products and services. In this research study

exploratory research design has been used. The reason for choosing such research

design is that the problem before the research was not clearly defined and it was not

generalizable to the population at large because the products i.e. Secondary & By-

products of BSL is mainly concerned with the industrial buyers which are fewer in

number than others.

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

the small number of respondents mainly qualitative approaches have been applied

such as formal/ informal discussions with the management and the customers, in-

depth interviews etc. In addition to this feedbacks of the respondents have been taken

with the help of questionnaire.

Research Type:-

Exploratory research

Exploratory research is a type of research conducted because a problem has

not been clearly defined. Exploratory research is used when problems are in a

preliminary stage and when the topic or issue is new and when data is difficult to

collect. It is flexible and can address research questions of all types (what, why, how).

Exploratory research is often used to generate formal hypotheses.

Exploratory research often relies on secondary research such as reviewing

available literature and/or data, or qualitative approaches such as informal discussions

with consumers, employees, management or competitors, and more formal

approaches through in-depth interviews, focus groups, projective methods, case
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Secondary_researchhttp://en.wikipedia.org/wiki/Secondary_researchhttp://en.wikipedia.org/wiki/Marketing


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studies or pilot studies. Exploratory research is not typically generalizable to the

population at large.

Data source: -

The various source of information broadly divided in 2 categories.

(a) Primary source: - Source from where first hand information are gathered

directly are called primary source and information thus collected is called primary

data. In this study the primary data was collected from the management and the

buyers.

(b) Secondary source: - The data that are collected for other purposes already exist

somewhere is called secondary data. With regard to my study the secondary sources

were records of the company, Magazines, websites, previous research on relevant

topic and newspapers.

Data collection technique

Primary Data: - Questionnaire Method and interviews. Secondary Data: - Website, Books, company publications &

previous years project report.

Sample Description

Sampling technique: - Non-probability sampling (ConvenienceSampling)

Sample size: - 20 buyers of BSL in Bokaro district.Sample analysis was done by means of statistical tools.
http://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistical_population


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In this chapter mainly primary data which were collected from the officials of the

marketing department with the help of interviews and from the 20 buyers of the BSL

in Bokaro district area with the help of questionnaire have been presented, analyzed

and interpreted.

TYPES OF BUYERSTable no.5.1

Buyer Percentage

Trader 30%

Business organization 70%

Total 100%

Fig. no. 5.1

Interpretation: It was found from the survey that 70% of the buyers are Business

Organization and 30% of the buyers are Trader.

30%

70%

types of buyer

Trader

Business organization


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Most used selling technique for secondary & by-productsTable no.5.2

Fig. no. 5.2

Interpretation: It is clear from the above chart that e-auction selling technique is

90% and fixed price, Inter-plant transfer & MOU selling technique is 10%.

e-auction Fixed price, Inter-plant

transfer & MOU

90%

10%

Most used selling technique

% use

Selling technique % used

e-auction 90%

Fixed price, Inter-plant transfer & MOU 10%

Total 100%


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VALUE OF SECONDARY & BY-PRODUCTS PRODUCEDDURING THE YEAR 2009-10 AND CASH COLLECTED

AFTER SELLING THEM

Table no.5.3

Quarter value (Rs.

Lakh)

cash collected (Rs. Lakh)

1st Quarter (April'09-june'09) 13875 10557

2nd Quarter (July'09-sep.09) 13004 10153

3rd Quarter (Oct.'09-dec.09) 14503 8916

4th Quarter (Jan.'10-mar.'10) 19795 14563

Total 61177 44189

Fig. no. 5.3

Interpretation: From the above chart we find that the cash collected after selling

produced secondary & by-products in different quarters of the year 2009-10 have

always been less than the actual value of the products.

13875

13004

14503

19795

61177

1

0557

1

0153

8

916

14563

44189

VALUE OF SECONDARY & BY-PRODUCTS

PRODUCED DURING THE YEAR 2009-10 AND CASH

COLLECTED AFTER SELLING THEM

value (Rs. Lakh) cash collected (Rs. Lakh)


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Contribution of products in the total quantity produced and inthe total revenue

Table no.5.4

Product % in total production % in total revenue

Secondary steel product 14% 66%

Chemical by-product 3% 7%

Slag 67% 8%

Pig iron 2% 8%

others 14% 11%

Total 100% 100%

Fig. no. 5.4

Interpretation: From the above chart it shows that Slage produces is 67% and the

revenue generated from Secondary steel product is 66% among the various Secondary

& By-products.

14%

3%

67%

2%

14%

66%

7% 8% 8%11%

conrtibution of different products in total production & in

total revenue

% in total production % in total revenue


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ANALYSIS OF PRIMARY DATA COLLECTED FROM THE

CUSTOMER OF BSL THROUGH QUESTIONNAIRE

1. Reason for purchase from BSLTable no.5.5

Reason for purchase No. of respondent % of respondent

Quality 5 25%

Cheap transportation 2 10%

Local market 10 50%

price 3 15%

Total 20 100%

Fig. no. 5.5

Interpretation: It was found from the survey that 50% of the customers purchase

from BSL because of Local market and 25% of the customers purchase because of

quality.

Quality

25%

Cheap

transportation

10%

Local market

50%

price

15%

Reason for purchase from BSL


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2. Satisfaction with respect to quality

Table no.5.6

Satisfaction No. of respondents % of respondents

Satisfied 4 20%

Neither satisfied nordissatisfied

9 45%

Dissatisfied 7 35%

Total 20 100%

Fig. no. 5.6

Interpretation: Above chart shows that 45% of the customers are neither satisfied

nor dissatisfied and 35% of the customers are dissatisfied.

Satisfied

20%

Neither

satisfied nor

dissatisfied

45%

Dissatisfied

35%

Satisfaction with respect to quality


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3. Lead time for the supply of the productsTable no.5.7

Lead time No. of respondents % of respondents

0-2 days 2 10%2-4 days 7 35%

4-8 days 6 30%

8-10 days 5 25%

Total 20 100%

Fig. no. 5.7

Interpretation: It was found that 35% of the buyers get the product at the lead time

of (2-4 days), 30% of the buyers (4-8 days) and 25% of the buyers (8-10 days) after

issue of offer letter.

0-2 days10%

2-4 days35%

4-8 days30%

8-10 days25%

Lead time for the supply of the products


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4. Time taking to replace the material of inappropriate qualityand/or quality

Table no.5.8

Time duration No. of respondents % of respondents

0-15 days 1 5%

One month 3 15%

One month &above 15 75%

Two month & above 1 5%

Total 20 100%

Fig. no. 5.8

Interpretation: From the collected data we find that 75% of the customer get there

goods replaced at the time duration one month and above and 15% of the customer

get there goods replaced at time duration one month.

0-15 days

5%One month

15%

One month

&above

75%

Two month &

above

5%

Time taking to replace the material


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5. Inquiry & information given on order statusTable no.5.9

Opinion No. of respondents % of respondents

Excellent 0 0%

Good 9 45%

Average 5 25%

Poor 6 30%

Total 20 100%

Fig. no. 5.9

Interpretation: Above chart shows that the opinion of 45% of the customers was

good and 30% of the customers were poor on the information given on the order

status.

Excellent

0%

Good

45%

Average

25%

Poor

30%

information given on order status


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6. Difficulty faced by buyers dealing with BSLTable no.5.10

Difficulty faced No. of respondents % of respondents

Always 7 35%

Sometimes 8 40%

Rarely 4 20%

Never 1 5%

Total 20 100%

Fig. no. 5.10

Interpretation: It is found that 40% of the customers sometimes faced difficulty and

35% of the customers always faced difficulty while dealing with BSL.

Always

35%

Sometimes

40%

Rarely

20%

Never5%

Difficulty faced by buyers


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7. Preference of mode of buying by the buyersTable no.5.11

Mode of buying No. of respondents % of respondents

e-auction 10 50%

Fixed price sale 8 40%

MOU 2 10%

Total 20 100%

Fig. no. 5.11

Interpretation: From the data we can interpret that 50% of the buyers prefer e-

auction and 40% of the buyers prefer fixed price sale of mode of buying.

e-auction

50%Fixed price

sale

40%

MOU

10%

Preference of mode of sale


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8. Satisfaction of buyers with regard to e-auction selling methodTable no.5.12

Option No. of respondents % of respondents

Satisfied 9 45%

Neutral 7 35%Dissatisfied 4 20%

Total 20 100%

Fig. no. 5.12

Interpretation: Above chart expresses that 45% buyers are satisfied and 35% of the

buyers are neutral with regard to e-auction selling method.

Satisfied

45%

Neutral

35%

Dissatisfied

20%

Satisfaction of buyers with regard to e-auction selling

method


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9. Buyers dealing with companies other than BSLTable no.5.13


Yes 14 70%

No 6 30%

Total 20 100%

Fig. no. 5.13

Interpretation: survey reveals that 70% of the buyers are deal and 30% do not deals

with companies other than BSL.

Yes

70%

No

30%

Buyers dealing with companies other than BSL


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10.Satisfaction of buyers with regards to refund claim process ofBSL

Table no.5.14


Satisfied 1 5%

Neutral 4 20%

Dissatisfied 15 75%

Total 20 100%

Fig. no. 5.14

Interpretation: It was found that 75% of the buyers are dissatisfied and 20% of the

buyers are neutral with regards to refund claim process of BSL.

Satisfied

5%

Neutral

20%

Dissatisfied

75%

Satisfaction of buyers with regards to refund claim process


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11.Overall quality of the product in relation to its priceTable no.5.15


Very good 2 10%

Good 7 35%Satisfactory 8 40%

Bad 3 15%

Very bad 0 0%

Total 20 100%

Fig. no. 5.15

Interpretation: After comparing quality of the product with its price, 40% buyers

found it satisfactory while 35% found it goodand15% buyers found it bad.

Very good

10%

Good

35%Satisfactory

40%

Bad

15%

Very bad

0%

Overall quality of the product in relation to its price


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12.Overall Experience dealing with BSLTable no.5.16

OPTIONNO. OF

RESPONDENTS % OF RESONDENTS

VERY GOOD 1 5%

GOOD 5 25%

NEUTRAL 7 35%

BAD 4 20%

VERY BAD 3 15%

Total 20 100%

Fig. no. 5.16

Interpretation: Above data represents that 35% of the buyers responded neither

satisfied nor dissatisfied while 25% of the buyers responded neutral on overall

experience with BSL.

VERY

GOOD

5%

GOOD

25%

NEUTRAL35%

BAD

20%

VERY BAD

15%

Overall Experience with BSL


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From the information provided by the officials of the marketing department Ifound that there were mostly industrial buyers and 70% of them were business

organizations.( Reference Table no.5.1 & Page no. )

Though slag produce maximum in quantity but secondary steel products are themajor source of revenue. (Reference Table no. 5.4 & Page no. )

On the basis of the collected data I found that customers purchase products ofBSL mainly because of the nearness of the products and quality. (Reference Table

no. 5.5 & Page no. )

After the completion of auction process generally it takes 4-8 days to issue ofoffer letter and material. (Reference Table no. 5.7 & Page no. )

For the replacement of material it takes one month & above time if the material isfound of inappropriate quantity and/or quality. (Reference Table no.5.8 & Page

no. )

It was found that the information given on inquiry for the order status to thecustomer was satisfactory. (Reference Table no. 5.9 & Page no. )

Dealing with BSL is not smooth, due to too much official formalities customerfinds difficulty. (Reference Table no. 5.10 & Page no. )

Though majority of the buyers like e-auction mode of selling among the existingselling technique of BSL but maximum buyers are either dissatisfied or showed

their indifference with regard to satisfaction for this selling technique. (Reference

Table no. 5.12 & Page no. )

It was found that the buyers were dealing with other companies than BSL mainlywith Tata Steel and buyers liked to buy from them because of their high quality,

better service & better selling methods. (Reference Table no. 5.13 & Page no. )


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Buyers are not satisfied with the refund claim process of BSL. (Reference Tableno.5.14 & Page no. )

Overall quality of the products in comparison to its price is quite satisfactory.(Reference Table no.5.15 & Page no. )

It was found from the survey that current sources of information about theproducts were not enough. Some more advertisement techniques need to be

adopted. (Reference Table no.5.16 & Page no. )


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SUGGESTIONS:

It seemed to me that the procedure starting from the auction selling to the actualdispatch of the products to the buyers is somewhat sluggish. Therefore I would

suggest to the company to make the procedure smooth and faster as much as

possible.

There is need to assess the existing selling techniques and make necessarychanges.

The marketing department should do proper advertisement of the products. Inaddition to the current mode of advertisement they may use hording, or they can

provide proper information about the product and its use with the help of CDs to

the buyers.

Proper attention should be given to the costumers grievance. Department should conduct market survey at regular intervals to know about the

current market condition.

Focus should be given on quality of chemical By-products and improvedpackaging techniques should be adopted.

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


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CONCLUSION:

Being a public sector company and a large organizational structure it involvesnumerous official formalities and policies which result in slow decision making in

a department.

All the four Ps of marketing mix is not given equal attention. Complex pre-sale and post sale activities makes the whole procedure sluggish and

which hinders potential customers and new customers as well.


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There are some limitations of the research study which can be shown as follows:

The research study is limited with only one integrated iron and steel plant of SAILi.e. Bokaro Steel Plant.

Research study includes only Secondary and By Products of BSL. Thoughprimary steel products are produced in Bokaro Steel Plant but marketing

department of BSL deals with the secondary and by products only while

marketing of primary steel products are done by CMO.

Research area was limited within Bokaro district.

Only industrial buyers are the customers of BSL and they are fewer in numberwithin the research area. Most of the customers were in the outskirts of Bokaro

district therefore it was very difficult to do market survey.

The time allowed for the project was eight weeks and it was impossible to studydeeply in that short period.


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REFRENCE BOOKS

.

Ramaswamy & Namakumari, Marketing Management, 3rd edition, Mc MillanIndia Ltd.

Philip Kotler, Marketing Management, 11th edition, prentice hall of India. C.R. Kothari, Research Methodology

WEBSITES

www.sail.co.in

www.google.com

www.metaljunction.com

www.bokaro.nic.in

www.steel.gov.in
http://www.sail.co.in/http://www.metaljunction.com/http://www.bokaro.nic.in/http://www.steel.gov.in/http://www.steel.gov.in/http://www.bokaro.nic.in/http://www.metaljunction.com/http://www.sail.co.in/


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APPENDIX/ANNEXURE

QUESTIONNAIRE

Q.1. Why do you prefer to purchase from BSL?

a) Quality b) Cheap transportation c) Local market d) Price

Q.2. Are you satisfied with the quality of product?

a) Satisfied b) Neither satisfied nor dissatisfied c) Dissatisfied

d) Very dissatisfied

Q.3. What is the lead time taking for the supply?

a) 0-2 days b) 2-4 days c) 4-8 days d) 8-10 days

Q.4. How much time does it take to replace the material if it is found not according to

the required quantity and/or quality?

a) 0-15 days b) one month c) one month & above d) two month &

above

Q.5 What is your opinion regarding the inquiry & information given on the

Order status?

a) Excellent b) Good c) Average d) Poor

Q.6 Have you faced any difficulty while dealing with BSL?

a) Always b) Very often c) Sometimes d) Rarely

e) Never.

Q.7 Which mode of sale you / your company prefer from BSL?

a) E-Auction b) Fixed Price Sales c) MOU

Q.8 Are you satisfied with the e-auction selling methods of BSL?

a) Satisfied b) Neutral c) Dissatisfied


72/72

Q.9 Are you dealing with any other company other than BSL?

a) Yes. (Please specify the name and give reason) b) no

i) Low price ii) High quality iii) Better service

iv) Better selling methods v) Others. (Please

specify)

Q.10. Are you satisfied with refund of claim process of BSL?

a) Satisfied b) Neutral c) Dissatisfied

Q.11. Are you satisfied with the current source of information about the selling

products or you expect more?

a) Satisfied b) Indifferent c) Expect more

Q.12. Considering the overall quality of product in relation to its prices, how would

you rate the value offered?

a) Very good b) Good c) Neutral d) Bad e) Very bad

Q.13. Considering your experience with BSL, how would you rate the overall quality

of the customer support provided by the BSL?

a) Very good b) Good c) Natural d) Bad e) Very bad

Thank you for your sincere co-operation.

NAME OF THE CUSTOMER: ..

PLACE

Documents

BOKARO STEEL PLANT- PROJECT.docx