niket__anand_finalreportmodule1_pgdm-2655

ITM BUSINESS SCHOOL,NAVI MUMBAI STEEL AUTHORITY OF INDIA LIMITED

ONLINE AUCTIONS OF BY PRODUCTS & SECONDARY PRODUCTS OF BOKARO STEEL PLANT Page 1

SIP FINAL REPORT-1

NAME-NIKET ANAND

PROGRAM-PGDM(MARKETING)

CAMPUS-ITM BUSINESS SCHOOL (KHARGHAR)

COMPANY-STEEL AUTHORITY OF INDIA LIMITED

FACULTY GUIDE-PROF HARISH SURI

COMPANY GUIDE-MR ANUP DEO EKKA



ACKNOWLEDGEMENT

It would have been a difficult task to give shape to this project

without the guidance and encouragement of certain very

important people.

I would like to express my sincere thanks to Mr. A.D.EKKA,

(ASM), Steel Authority Of India Limited, Bokaro Steel City, for

giving me an opportunity to undergo an internship program in his

organization. His continual support has resulted in the success of

the project

I would also like to express my gratitude to PROF-HARISH

SURI(Faculty Guide)ITM Navi Mumbai, for his continual support

and guidance in successful completion of this project. He has

been the driving force behind this project.

.

Finally, I thank all of my fellow co-workers. Their cooperation has

helped me immensely and made the experience of the internship

program at Steel Authority Of India Limited enriching one.



TABLE OF CONTENTS

NAME OF TOPIC PAGE NO.

CHAPTER-1 INTRODUCTION 7-12 1.1 INTRODUCTION 8-10 1.2 OBJECTIVES OF PROJECT 11 1.3 MODUS OPERANDI OF THE PROJECT 12

CHAPTER-2 DETAILS OF THE ORGANIZATION 13-39 2.1 INTRODUCTION 14-16 2.2 ORGANIZATION 17-26 2.2.1 PRODUCTS 27-34 2.2.2 COMPETITORS 35 2.3 MARKET DRIVERS 36

CHAPTER-3 ANALYSIS OF DATA OR TASKS PERFORMED 40-50 3.1 TASKS PERFOMED & OBJECTIVES ACHIEVED 41-48 3.2 GENERAL OBSERVATIONS 49-50

CHAPTER-4 CONCLUSIONS 51-53 4.1 SUMMARY 52 4.2 GAINS OF THE STUDY TO COMPANY 53

CHAPTER-5 RECOMMENDATONS 54-55 5.1 RECOMMENDATIONS 54-55

BIBLIOGRAPHY & APENDIX 56



EXECUTIVE SUMMARY The present study was undertaken to understand the details of the mode of marketing of

Secondary Products of SAIL. Marketing Department of B.S.L. (SAIL) strives to design a

systematic framework to ascertain a profitable proposition out of the selling efforts of secondary

and by products.

The survey was conducted in Marketing Department and Sales Coordination Department (up to

some extent). I had to find how auctions, fixed price, and tenders are used for marketing purpose

in B.S.L.

Various steps involved are as follows:

1) To know about the e-auctions of marketing department.

2) To know the exhaustive usage of e-auctions to affect deals.

60% marketing and selling is done through auction and rest is taken through fixed price, selling and

tenders.

Data were mainly collected from marketing department of B.S.L.

B.S.L. is the largest Steel manufacturing sector of India and is top ranked in the global fortune 500

companies.



During my training, I had to find out mode of sale of secondary products of B.S.L. Primary products are

sold by CMO, Delhi. I passed through various stages of problems and difficulties to accomplish the task

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

observe "marketing of Secondary products in B.S.L.".

Bokaro Steel Plant recognizes that leadership is essential for survival in competitive environment;

Customer's satisfaction ,like quality, is a journey and not a destination. It is essential that everyone in

the company has a clear understanding of what customer satisfaction means, if the plant aims to

achieve leadership in customer satisfaction. While improved customer satisfaction is necessary for

ensuring prosperity of the company, it must also be recognized that ability of the company to satisfy its

customers would depend on its ability to continuously improve its profit and growth.

The basic objective behind the study carried out by me is to study the major contribution of Secondary

product to total sales, which is helpful for the success of the company. By selling the secondary products

in local market company is earning profits. It is also creating employment in small scale industries and is

therefore instrumental in developing the economy.



Chapter -1

Introduction



INTRODUCTION

STEEL ATHOURITY OF INDIA LIMITED - A Maharatan

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 defense industries and for sale in export markets. SAIL is also among the five

Maharatnas of the country's Central Public Sector Enterprises. SAIL manufactures and sells a broad range of

steel products, including hot and cold rolled sheets and coils, galvanized 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 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 India’s second largest

producer of iron ore and of having the country’s 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 range of long and flat steel products is 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 Offices. CMO’s

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 SAIL’s 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 client’s 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. Our 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 our

plants and major units are ISO Certified.:-



Integrated Steel Plants

Bokaro Steel Plant (BSL) in Jharkhand

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bhilai Steel Plant (BSP) in Chhattisgarh

IISCO steel plant (IIS) in west Bengal

Special Steel Plants

Alloy Steel Plants (ASP) in West Bengal.

Salem Steel Plant (SSP) in Tamil Nadu.

Visvesvaraya Iron and Steel Plant (VISL) in Karnataka.

Subsidiaries Maharashtra Elektrosmelt Limited (MEL) in Maharashtra.

Joint venture SAIL has promoted joint venture in different areas ranging from power to

e-commerce.

NTPC SAIL Power Company Pvt. Ltd.-Set up in March 2001, this 50:50 joint venture between SAIL and the National Thermal Power Corporation (NTPC) operates and manages the Captive Power plants - II of the Durgapur and Rurakela Steel Plants which have a combined capacity of 240 MW.

Bokaro Power Supply Company Pvt. Ltd. -This 50:50 joint venture between SAIL and the Damodar Velley Corporation formed in January 2002 is managing the 302 MW power generation and 1880 tones per hour steam generation facilitates at Bokaro Steel Plant.

Bhilai Electric Supply Company Pvt. Ltd. - Another SAILNTPC joint venture of 50:50 basis formed in March 2002 manages the 74 MW power plant - II of Bhilai Steel Plant which has additional capacity of producing 150 tonnes of steam per hour.

UEC SAIL information technology Ltd. This is 40:60 joint ventures between SAIL and USX Engineers & Consultants. "A subsidiary of the US Steel Corporation, promotes information technology in the steel sector.

MetalJunction.com Private Ltd. A joint venture between SAIL and Tata Steel on 50:50 basis, this company promotes e-commerce activities in steel and related areas.

SAIL – Bansal Service Centre Pvt. Ltd. -SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service centre at Bokaro with the objective of adding value to steel.



North Bengal Dolomite Ltd. -A joint venture between SAIL and West Bengal Mineral Development Corporation Ltd. On 50:50 basis was formed for development of Jayanti Dolomite Deposit, Jalpaiguri for supply of Dolomite of DSP and other plant.

Romelt - SAIL (India) Ltd. -A joint venture between SAIL, National Mineral Development Corporation (NMDC) and Russian promotes for marketing Romelt technology developed by Russia for reducing of iron bearing materials, which is carried out with carbon in single stage reactor with the use of oxygen.



OBJECTIVES OF PROJECT

In Bokaro steel plant there is various section of marketing department. Since I have chosen

"Marketing of secondary products in B.S.L." my main objectives are:-

1. To know what is secondary product, by product and why is it necessary to sell the secondary

product.

2. To know the use of secondary product & by-product.

3. Market study of secondary product & by-product in BSL.

4. To know the pricing of secondary product & by-product.

5. Ensuring timely dispatch of material, products, scrap etc to the potential customers.

6. To know the others terms and conditions for marketing of secondary products.



MODUS OPERANDI OF THE PROJECT

In the introductory presentation we were taught about the histoy & working of the organisation.We were also be taught about the different Integrated,Special and subsideries of SAIL.

On the 2nd day we were shown the videos & demos of different safety equipments & on the 3rd day we were introduced to the real equipments.

We were divided in the group of 4 traniees and we were taught the process of manufacturing of steel with the help of a model which was same as the steel plant of Bokaro Steel Limited.Through that model we learnt the flow of the processes of manufacturing of steel.

On the 2nd 2 days we were taken to the different departments(non manufacturing) & we were taught about their functions.

I was provided with the catalouge and brochure having detais of all the primary and secondary

products of BOKARO STEEL PLANT.

I was also provided with the brochure containing rules and regulations of the M-Junction.

My guide along with the customer care officer of M-Junction explained me the entire process of

selling of secondary and byproducts through online auctions.

I was told to sit near a telecalling & customer handling experts for 2-3 days & asked to monitor

how he handles the customers on phone.

I was told to visit the local customers along with the Customer Care Officer of M-Junction.

I was provided by the list of customers & asked them to tell the timing of online auctions on

phone & through email according to their priorites.

I was told to prepare the list of refunds to be made to the customers for their excess payments

.Actually the quantity told before the auctions is approx but for the lifting of customer have to

pay the full amount.So sometimes customer pays more money then the quantity he lifted.So

organisation have to refund the the excess amount to the customer.

I was also taught to work on a CRM software.

I was also taught the entire process of refunds to be made to the customers.

I was told to visit different customers along with the CCO of Metal Junction.

I was told to prepare the lists of different customers who are going to take part in upcoming

auctions.

I was also told to provide sufficient information to different sets of customers about the

auctions on phone as well as through e-mail.

I was to told to analyze the process of refund & was asked to give solution to decrease the lead

time of refund to maintain a good relationship with small clients also.



Chapter – 2

Details of the

Organization



Steel Authority of India (SAIL) consists of several steel plants that are integrated and otherwise in

nature. It caters to the humongous need of railways, automotive, engineering, and power sectors of the

country. Moreover, it satisfies the requirements of its foreign clients also whenever they demand its

support.

During the struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister, had a very clear

vision about the role of Steel in the development of our country. Although TATA Iron & Steel Company

(TISCO) has been establishment in 1907 marking the beginning of Indian Steel Industry followed by

Indian Steel Co. (1918), they were too small to meet the development requirements of a big country like

ours. Therefore, in the 1st Industrial Policy Resolution of the Govt., soon after independence, Govt.

decided to establish Steel Plants in Public Sector. However, work could be started at fast pace only in

1954, when Hindustan Steel Ltd., was formed and three Steel Plants of 1 MT capacity each, were

established with provision of further expansion at Bokaro, Rourkela and Durgapur with assistance from

USSR, West Germany and U.K. respectively.

To improve the functioning of Steel Industry, Govt. decided to form a holding company during 1972,

which was named as Steel Authority of India Ltd., (SAIL) and the same was incorporated on January 24,

1973, with an authorized capital of Rs.2000 crores.

SAIL was formed by registration of a company under the companies Act and not by the Act of

Parliament. Govt. decided to abandon the holding company concept in 1978 and a bill was presented to

the Lok Sabha. Accordingly, SAIL was again recognized in the following manner.

Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International Ltd., Bhilai Ispat Ltd.,

Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly owned subsidiaries of SAIL merged into it and started

functioning as Units of SAIL.



MECON, HSCL and NMDC become independent Companies and started functioning under Ministry of

Steel. However, Kiriburu and Meghatuburu Iron Ore Mines were attached with BSL as their Captive

Mines.

Bharat Refectories Ltd. also became independent under the Ministry of Steel and refractory units also

came under them.

Thus, SAIL, at present, is having capacity of 12 MT of crude steel through its four integrated

Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Two special steel plants at Durgapur and Salem

produce a wide range of alloy and special steels. Marketing of the products from these plants is done

through a country wide distribution network consisting of a chain of Stock Yards and distribution

network.

SAIL today is one of the largest industrial entities in India. Its strength has been the

diversified range of quality steel products catering to the domestic as well as the foreign

markets and a large pool of technical and professional expertise.

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, structural, railway products, plates, bars and rods, stainless steel and

other alloy steels. SAIL produces iron and steel at four 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.

SAIL’s wide range 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) and the International Trade Division. CMO encompasses a wide

network of 38 branch offices and 47 stockyards located in major cities and towns throughout

India.





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. SAIL’s captive mines are under the control of the Raw Materials Division

in Calcutta. The Environment Management Division and Growth Division of SAIL operate from their

headquarters in Calcutta. Almost all SAIL’s plants and major units are ISO Certified.

OWNERSHIP AND MANAGEMENT

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company.

However, SAIL, by virtue of its "Maharatan" status, enjoys significant operational and financial

autonomy

INTEGRATED STEEL PLANTS

1. Bhilai Steel Plant (BSP) in Chhattisgarh

2. Durgapur Steel Plant (DSP) in West Bengal

3. Rourkela Steel Plant (RSP) in Orissa

4. Bokaro Steel Plant (BSL) in Jharkhand

5. IISCO Steel Plant (ISP)



SPECIAL STEEL PLANTS

1. Alloy Steel Plant (ASP) in West Bengal

2. Salem Steel Plant (SSP) in Tamil Nadu

3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka

SUBSIDIARIES

1. Indian Iron & Steel Company Limited (IISCO) in West Bengal.

2. Maharashtra Electrosmelt Limited (MEL) in Maharashtra

OTHER UNITS

Raw Material Division (RMD) at Kolkata, West Bengal

Central Marketing Organization (CMO) at Kolkata, West Bengal

SAIL Consultancy Division (SAILCON) at New Delhi

Research & Development Centre for Iron & Steel (RDCIS)

at Ranchi, Jharkhand

Centre for Engineering & Technology (CET) at Ranchi, Jharkhand

Management Training Institute (MTI) at Ranchi, Jharkhand

Central Power Training Institute (CPTI) at Rourkela, Orissa

SAIL Safety Organization (SSO) at Ranchi, Jharkhand

Environment Management Division (EMD) at Kolkata, West Bengal

Growth Division (GD) at Kolkata, West Bengal

Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand



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, back office operations and a host of other activities, either because there is

someone else who can do the same thing for less, or, there is specialist who can offer services of

higher quality. Industry has recognized that whilst it has to concentrate 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 and selling processes.

Metal-junction operates at the extreme ends of the value chain and hence it was essential to

segregate the organization into two Major Business Units (Commerce-junction and Metal-

junction) so as to independently focus on:

Specific Requirements of Clients/Customers

Specific procedures for both the functions

Knowledge and Information management for the two functions





OTHER UNITS OF SAIL

RAW MATERIAL DIVISION

The Raw Material Division (RMD) was formed in 1989 with headquarters in Kolkata for management of

all the captive mines of the SAIL steel plant in the eastern sector. This has enabled rationalization of raw

material supply to the different plants in the region and achievement of systematic reduction in

purchase of iron ore from non-captive sources. Presently, RMD manages five iron ore mines in

Jharkhand and Orissa, and four limestone and dolomite quarries in Madhya Pradesh, Jharkhand and

Orissa.

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.



CENTRAL COAL SUPPLY ORGANISATION

Situated at Dhanbad in Jharkhand, the Central Coal Supply Organization (CCSO) of SAIL’s Operations

Directorate, is entrusted with the vital responsibility of ensuring daily movement of around 12000 tons

each of washed coking coal and power –grade coal to all sail steel plants.



CENTRAL MARKETING ORGANISATION

The ISO 9001:2000 certified Central Marketing Organization (CMO) is India’s largest industrial marketing

set up that markets carbon steel produced by the four 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

15 Consignment Agents. CMO’s 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.

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 Ispat Bhavan, 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

Northern region, New Delhi Agra, Allahbad, Faridabad, Gaziabad, Kanpur,

Lucknow, Delhi, Chandigarh, Jalandher, Jammu

Ludhiana and Mandi Govindgarh.

Western Region,

Mumbai

Ahmedebad, Baroda, Pune, Mumbai,

Nagpur,Bokaro, Indore, Gwalior, Jabalpur, Jaipur &

Kota.

Eastern Region, Bhubaneshwar, Bokaro, Kolkatta, Durgapur

Guwahati, Howarh, atna, New Bongaigoan &



Kolkata Rourkela.

Southern Region,

Chennai

Bangalore, Chennai, Cochin, Coimbatore,

Hyderabad, Pondicherry, Trichy & Vijayawada

FUNCTIONS OF BRANCHES:-

I) Booking of orders from the customers on long term and short-term basis.

II) Passing on details of booking to the concerned SRM Office.

III) Receipt of materials at stockyard by wagons/trucks.

IV) Issuance of offers and delivery orders to customers against their booking.

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 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.



PRODUCTS

SAIL’S 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 products such 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.

Product Wise

Semis Blooms, Billets & Slabs

Long Products Structural

Crane Rails

Bars, Rods & Rebars

Wire Rods



Flat Products HR Coils, Sheets & Skelp

Plates

CR Coils & Sheets

GC Sheets\ GP Sheets and Coils

Tinplates

Electrical Steel

Tubular

Products

Pipes

Railway

Products

Rails

Wheels, Axles, Wheel Sets

Plant Wise

Bokaro Steel Plant HR Coils & Sheets

Plates

CR Coils & Sheets

GP Sheets & Coils/ GC Sheets

Pig Iron,

Durgapur Steel Plant Blooms, Billets & Slabs

Joists, Channels, Angles

http://www.sail.co.in/products_Electrical.asp

http://www.sail.co.in/products_Tubularproducts.asp

http://www.sail.co.in/products_Rail.asp

http://www.sail.co.in/products_Wheels.asp

http://www.sail.co.in/products_bsl_hrcoil.asp

http://www.sail.co.in/products_bsl_plates.asp

http://www.sail.co.in/products_BSL-CRCoils.asp

http://www.sail.co.in/products_bsl_gpgc.asp

http://www.sail.co.in/products_BSL-Pig.asp

http://www.sail.co.in/products_DSP-Semis.asp

http://www.sail.co.in/products_DSP-Structurals.asp



Bars, Rods & Rebars

Skelp

Wheels, Axles, Wheel Sets Pig Iron,

Chemicals & Fertilizers

Rourkela Steel Plant HR Coils

Plates

CR Coils & Sheets

GP Sheets/ GC Sheets

Tinplates

Electrical Steel

Pipes

Pig Iron, Chemicals & Fertilizers

Bhilai Steel Plant

Blooms, Billets & Slabs Beams

Channels, Angles

Crane Rails

Plates

Rails

Pig Iron, Chemicals & Fertilizers

http://www.sail.co.in/products_DSP-TMT.asp

http://www.sail.co.in/products_DSP-Skelp.asp

http://www.sail.co.in/products_DSP-W&A.asp

http://www.sail.co.in/products_DSP-Pig.asp



http://www.sail.co.in/products_RSP-HRCoils.asp

http://www.sail.co.in/products_RSP-Plates.asp

http://www.sail.co.in/products_RSP-CRCoils.asp

http://www.sail.co.in/products_RSP-GPGC.asp

http://www.sail.co.in/products_RSP-TinPlates.asp

http://www.sail.co.in/products_RSP-CRNO.asp

http://www.sail.co.in/products_RSP-Pipes.asp

http://www.sail.co.in/products_RSP-Pig.asp

http://www.sail.co.in/products_BSP-Semis.asp



http://www.sail.co.in/products_BSP-CraneRails.asp

http://www.sail.co.in/products_BSP-Plates.asp

http://www.sail.co.in/products_BSP-rails.asp

http://www.sail.co.in/products_BSP-Pig.asp



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.



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 color coating,

galvanizing and tinning. The company also produces further processed cold rolled products,

including galvanized sheets and tin plates.



Railway Products

Railway products, including rails, wheels and axles,

sleeper and fish plates (which are used to connect and

strengthen rails), are produced through a process of hot

rolling blooms in the finishing mills and forging ingots

and blooms in the forging press or hammer. Railway

products are used primarily to upgrade and expand the

existing railway network in India.



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.

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 rolled sheets, 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.



MAJOR COMPETITOR'S

TISCO Essar Steel Jindal Vijaynagar Steels ltd. Jindal strips ltd Jisco Saw pipes Uttam steels ltd Ispat Industries ltd Mukand ltd Mahindra Ugine steel company ltd Tata SSL ltd Usha Ispat ltd Kalyani Steel ltd Electro steel Casting ltd Sesa Goa ltd NMDC Lloyds Steel Industries ltd



DEMAND DRIVERS

STRONG ECONOMIC GROWTH - GDP growth April – June 2009 (Q1) was 6.1% and in July - September FY 2009-10 (Q2) estimated to have reached 7.9%, despite the world wide recession GDP growth rate is expected to remain above the 9% mark in the mid term

URBANIZATION- Housing, urban infrastructure such as over-bridges & mass transport systems

Government Efforts To Create Transport And Industrial Infrastructure - Government are expected to invest $514 billion on infrastructure by 2012.

PRIVATE SECTOR INVESTMENT- is growing at above 15% annually. FOREIGN INVESTMENT - nearly 40 billion dollar committed in steel

sector.

Indian Steel Industry is going gaga in the world steel market because of the

demand for steel generated around the world especially by the developing

countries.



SALES & MARKETING REVIEW

SAIL achieved a total sales volume of 15.9 million tonnes during FY'13-14 with sales of Long products in the home market at a record level of 4.62 million tonnes.

Exports at 0.37 million tones registered a growth of 2.3% over FY'13-15. Major categories where growth was recorded in the sales included: Wire Rods- 12.1%; TMT Bars- 3.8%; Structural- 4%; Plates >20mm- 7.1% and Railway products- 8.5%.

New records were also set in supplies of Loco wheels and Loose Axles to Indian Railways during the year. During the year 2010-11 SAIL started operations at a new Warehouse at Jagdishpur. With this, SAIL's marketing network has expanded to 37 Branch Sales Offices (BSOs), 26 Customer Contact Offices (CCOs) and 67 Warehouses.

SAIL also expanded its dealer network by 159 numbers during the year. As on 1st April, 2014, SAIL has a wide network of 2692 dealers spread over 637 districts of the country. The company strengthened its presence in neighboring and traditional markets and exported 0.33 million tonnes steel during the year. The main products exported were Billets, Plates, HR Coils, GC Sheets, CR Coils and Rails.

Exports were undertaken to Syria for the first time. System of E-bidding was also implemented in exports during the year.

SAIL re-entered the export market for its high quality rails after a gap of over 5 years and has exported rails to Sri Lanka.



BRANDING PRACTICES

SAIL build lasting relationships with customers based on trust and mutual benefit.

SAIL uphold highest ethical standards in conduct of our business

SAIL create and nurture a culture that supports flexibility, learning and is proactive to change.

SAIL chart a challenging career for employees with opportunities for advancement and rewards.

SAIL value the opportunity and responsibility to make a meaningful difference in people’s lives





Chapter - 3

Analysis of data

or tasks

performed

3.1 TASKS PERFORMED AND OBJECTIVES ACHIEVED

The objectives of my projects were following

1. To know what is secondary product, by product and why is it necessary to sell the secondary

product.

2. To know the use of secondary product & by-product.

3. Market study of secondary product & by-product in BSL.



4. To know the pricing of secondary product & by-product.

5. Ensuring timely dispatch of material, products, scrap etc to the potential customers.

6. To know the others terms and conditions for marketing of secondary products.

For achiving the following objectives I have done the study of each & every steps of the online auctions

of secondary as well as the by products of BOKARO STEEL PLANT.



NECESSITY OF SELLING THE ''SECONDARY PRODUCTS"

The net sales realization from all the Secondary products, By-Products and co-products of BSL is around

Rs.600 crores which is quite more than money the big industries. Out of this Steel Scarp arising itself

brings about Rs.15200 cores of money every year. Re-production of main products from the; secondary

products requires re-melting it again for the required composition of the materials as per the desired

specification.

By selling it to the different Mills/traders/Processors the plant earn around Rs.4000 per tones of the

direct profit than by re-producing it to the main product. The traders /processors/re-rollers, use these as

a raw materials for different finished products making huge profits, the plant is also not losing anything.

Profit is the main aim of every business, and when the realization of these products for the finished

products proves to be costlier, the management plant decided to sell it to the local market.

By selling secondary Products to the Local market new industries are developed for re-rolling the

Secondary materials to make finished products. It has also increased the small-scale industries and

employment opportunities.

Last year average price of scrap product were between Rs.12000/ton to Rs.16000/ton



Procedure of E-Auction

Advertisement/posting of dates and types of materials to be auctioned in SAIL website and various news

papers (Local & National) every 15th to 20th of the month for the next month,

1. Posting of details of lots to be auctioned one week prior to the date of auction, on the website

of SAIL and metal Junction.com

2. Inspection of lots to be auctioned by customers.

3. Auction is held on www. Metal Junction.com

4. Report of auction conducted is give by Metal Junction.com

5. Meeting of reserve price opening committee and their recommendation.

6. Approval for sale of lots recommended by RP opening committee.

7. Issue of offer to the customers, based on approval of chief Executives.

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 ones in a month. Representative from all the re-rolling

mills turn up during auction and they bid for the available material. The raw material need of this mill is

being made by the plant and the availability of the re-rollables has increased the re-rolling mill to

develop very fast. The plant extends all types of facilities and assistance to these small scale units, which



to turn give scope for more employment, and then the material is lifted on the terms and conditions as

mentioned in the tenders.



FLOW CHART OF E-AUCTION

Advertisement of

dates/type of materials on

SAIL website/Newspaper

Posting of lot details to be

auctioned on SAIL /

MetalJunction website

Auction conducted on

metaljunction.com

Inspection of lots by

customers



Report of Auction by

metaljunction.com

Reserve Price Opening

Committee meeting

Recommendations Approval

for Sale

Issue of the offer Letter



DEFINITION OF KEY TERMS

Auction

Auction refers to a forum where the requirement for one/more lots of an item is stated and the

participants (bidders) are required to bid down the price to be selected to supply the requirement.

Online Auctions

Online auctions refer to those auctions conducted through the Internet with the bidders (from one or

more locations) simultaneously bidding to be selected for supplying the item/s on auction. In other

words, the venue for the auction is on an Internet website/ platform. The "Service Provider's" website

assigned by "Service Provider" would constitute venue for the purpose of the online auction.

Award at the Auction

In a single winner format, only one bidder (normally the bidder who quotes the highest price) is

awarded all the units of the item being auctioned. The bidder quoting the highest price is normally

allotted the item.

Client

Client is the individual/business entity who has contracted "Service Provider" to conduct such auction. In

case of auction, the purpose would be the genuine intent to sell the selected items/Lot to the bidders

desiring to buy these items from the Client.

Bidder

Bidder is the individual/business entity participating in the auction, intending to buy the

items/Lots from the Client. To be become a Bidder in the auction, a business entity has to

secure client approval for participation and also provide written assent to the General Rules

and Regulations



Auction Engine

Auction Engine refers to the software that encapsulates the entire auction environment, processing

logic and information flows. "Service Provider" is the sole owner of the auction engine and retains

exclusive right over the utilization of the same.

Timings of the Online Bid

All the timings of the Online Bid shall be based on the time indicated by the Server hosting the Auction

Engine. It shall be the endeavor of "Service Provider" to ensure that the Server Time reflects as closely as

possible the Indian Standard Time (IST) i.e. GMT + 0530 hrs. However, in the event of any deviations

between the Server Time and the Indian Standard Time, the functioning of the Auction Engine

(Launch, operation, and closure) would be guided by the Server Time. Bidders are advised to refresh

both the windows of the Auction Module check the exact Server Time (displayed in both the windows).

Preview Time

Preview Time refers to the period of time that is provided prior to the commencement of bidding. This is

to facilitate approved participants to view the auction details such as item specifications, bidding details

and bidding rules. The purpose is also to familiarize participants with the functionality and screens of the

auction mechanism. It is not mandatory for "Service Provider" to provide Preview Time.

Start Time

Start time refers to the time of commencement of the conduct of the online auction. It signals the

commencement of the Price Discovery process through competitive bidding.

Duration of the Auction

It refers to the length of time the price discovery process is allowed to continue by accepting bids from

competing bidders. The duration of the auction would normally be for a pre-specified period of time.



However, the bidding rules may state the conditions when the pre-specified duration may be curtailed/

extended. The conditions include:

Shortening of auction duration in the event of no bids for a specified period of time (Inactivity Time)

Automatic extension in the event of bids being entered towards the end of the scheduled duration to

facilitate the other bidders to view and react to the bid.

3.2 GENERAL OBSERVATIONS

1.Payment is accepted from the customers even when the material is not available in stock, in

anticipation that the material will be made available shortly in the stockyard.

2.Unavailability of material in the stockyard leads to holding up of the huge investment of the customers

i.e. material cannot be purchased from the alternative source.

3.Refund of excess payment takes long time sometimes more than a year.

4. Price list made available to the re-rollers every month contains even the price of materials, which is

not available.

5. The price prevailing in the market of the finished goods manufactured by the re-rollers are

sometimes less as compared to the material purchased from BSL which results in heavy losses.

6. As the organization is concerned with a large number of productions activities and the departmental

work are done mostly manually from placement of orders to documentation, which ultimately frustrates

the employees.

7. The organization is more concerned with larger orders of steel products by ignoring the smaller

orders.

8. The local customers with business of by-products are sometimes made to wait for days to get their

papers cleared by the department.



9. Most of the existing yards suffers from improper stocking space and siding facility often they are not

well developed due to this the material stored there are rusted and other defects are caused and later

they are disposed of by offering some concession or at low rate which result in loss.

10. Due to improper packing, the materials reach the stockyard often in damaged condition, which is

attracting criticism from the customers and these damaged materials are sold with loss.



Chapter - 4

Conclusions



4.1 SUMMARY

1. BSL marketing network is spread all over India, which helps in collecting, orders of various customers

easily and it can easily interact with its customers.

2. BSL officers posted outside like Kolkata, Delhi, Chennai and Mumbai who work in close coordination with

the Marketing Department.

3. Sales of Secondary Product have reduced compared to previous year.

4. Sales of Iron & Scrap are also reduced compare to previous year.

5. Sales of Pig Iron are less in this financial year. Last year sales of Pig Iron was nil in the 3 rd and 4th qtr but in

this year it has shown good market which is good sign.

6. Market of By-Product shown good sign in this financial year and sales of By-Product has increased

compare to previous year. The price of By-Product has reduced in this financial year.

7. BSL has fail to achieve the target which they set for them and unable to meet production of Hot Metal,

Crude Steel, Saleable CR coils and Saleable Steel of the target, its result has seen on the profit of the

company which reduced by 50% compare to last financial year.

4.2 GAINS OF THE STUDY TO COMPANY

Reduction in lead time of the refunds for acquiring high level of customer satisfaction.

Better co-ordination between different departments. Better customer satisfaction.



Chapter - 5

Recommendations



1. E-payment should be implemented for complete automation of the e-auction process.

2. E-invoicing should be adopted for saving money by replacing paper based processes.

3. Concept of Key Account Manager should be adopted for better customer satisfaction of regular

customers.

4. Extensive customer contact.

5. The pricing as we well as the distribution policies should be framed by keeping in mind the

requirements of the complete range of manufactures and not only the bulk consumers. This will

encourage the new re-rolling mills to approach BSL for the material.

6. Price of the material for which 100% payment has been received as advance should not be

changed if the delay in the lifting of the material by the party is due to some fault of BSL but if is

due to deliberate delay in lifting the material by the customer than the same policy should

be applicable.

7. When the customer having rolling mill of a smaller size purchase material, which are rolled in a

bigger rolling mills than this, clearly indicates that the material is being purchase for trading. This

practice can be prevented if BSL obtains a copy of certificates issued to the owner of every mill by

the District industry center specifying the size of the mill.

8. BSL can appoint 2-3 authorized stockiest also to avoid trading practice. In this way the benefit of

break up pricing can be passed on to the one for whom these have been framed i.e. the actual re-

rollers.

9. Price list made available to the various re-rollers every month by BSL should count all the items

but it should clearly indicate the material which is not available so that the customers requiring

that particular material can approach some other source.

10. The infrastructure facilities at the disposal yard should be maintained properly and needs

improvements so that the pace of the lifting process is increased.

11. Fully equipped computers system in marketing department.

12. Proper packing is to be done to safeguard the materials from damage, which is occurring due to

multistage handling and transportation.

13. Refund of excess payment process should be improved and simplified. It. should make payment in

less time. Ensure delivery of the material for which the payment is accepted so that mills are not

closed or shut down for want of material.



14. Alternatively if the material is not available the BSL authorities should not accept the payment so

that the buyer can approach some other source for procuring the material and should not

unnecessarily wait for the material, which is not available.



BIBLIOGRAPHY

Magazine published by SAIL

Training Manual

Government Publications

Books of organization

Company’s Website

www.sail.co.in

www.metaljunction.com

www.moneycontrol.com

http://www.sail.co.in/

http://www.metaljunction.com/

Documents

niket__anand_finalreportmodule1_pgdm-2655