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SUMMER INTERNSHIP PROJECT REPORT ON A STUDY ON THE PRICING AND SALES STRATEGY OF SECONDARY AND BY-PRODUCTS AT SAIL (BOKARO)” BOKARO STEEL PLANT (A PARTNER IN NATION BUILDING) Submitted in partial fulfillment for the award of degree of Master of Business Administration (M.B.A.) Of Gandhi Institute For Technology (G.I.F.T.), BBSR Session: 2014 -2016 Under The Guidance Of : PRESENTED BY: 1

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SUMMER INTERNSHIP PROJECTREPORT

ON“A STUDY ON THE PRICING AND SALES STRATEGY

OF SECONDARY AND BY-PRODUCTS AT SAIL (BOKARO)”

BOKARO STEEL PLANT(A PARTNER IN NATION BUILDING)

Submitted in partial fulfillment for the award of degree of

Master of Business Administration (M.B.A.)

Of

Gandhi Institute For Technology (G.I.F.T.), BBSR

Session: 2014 -2016

Under The Guidance Of: PRESENTED BY:

Mr.Amit Kumar Sammi Kumar SinghA.G.M. (Marketing) MBA 3rd Semester S

Bokaro Steel Plant Regd.No.1406298028

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ACKNOWLEDGEMENT

I wish to acknowledge my indebtedness to my project guide Mr. AMIT KUMAR (A.G.M. of Marketing department of Bokaro Steel Plant ) for his valued guidance, without their sincere guidance and support this project would not have been a success. Thanking them is a small gesture for the generosity shown.

I am also indebted to all the employees of the organization for their sincere help and co-operation.

This project is a satisfactory outcome of several day's hard work. We are thankful to the respondents who have given us sample feedback and co-operation during the preparation of this report.

Finally, I take this opportunity to thank the entire senior executives’ team and every associate of this organization, who have helped me directly and indirectly during this period of project preparation.

SAMMI KUMAR SINGH

MBA 3rd SEMESTER

GIFT ,BBSR

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DECLARATION

I hereby declare that the following documented project report titled “SALES

AND PRICING STRATEGY OF SECONDARY PRODUCTS in Bokaro

Steel Plant(SAIL)" is an authentic work done by me as a part of my

industrial training in Bokaro Steel Plant, SAIL.

I also further state that the project has been prepared by my own with the

secondary data provided in the reports of the company, which were essential

for the completion of the project. The project was undertaken as a part of the

course curriculum of M.B.A. (Marketing).

Sammi Kumar Singh

(MBA 2nd YEAR)

Regd. no.-1406298028

GIFT,BBSR

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CERTIFICATE

This is to certify that the project entitled “SALES OF SECONDARY PRODUCTS

IN B.S.L. ”at SAIL- BOKARO STEEL PLANT has been carried out by SAMMI

KUMAR SINGH from 25 May 2015 to 17 July 2015, under my supervision for

partial fulfillment of his MASTER OF BUSSINESS

ADMINISTRATION(M.B.A.)in (Marketing) course at GANDHI

INSTITUTE FOR TECHNOLOGY.(G.I.F.T,BBSR).

I am satisfied with his sincere performance and study conducted by him in SAIL-

BOKARO STEEL PLANT. The project is hereby approved as a bonafied work

carried out and presented in a manner satisfactory to its acceptance area to the

Master of Business Administration(M.B.A.) for which it has been submitted.

I recommend submitting the project report. I wish him all success in life.

This is also certified that the project work is original and has not been submitted to

any other place.

Project Guide:

Mr. AMIT KUMAR

A.G.M. (Marketing)

Bokaro Steel Plant.

Date:17 July 2015 SAIL

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INDEX

Sl.No. Contents Page No.1. About Bokaro Steel Plant :

Introduction of Bokaro Steel Plant. 062. Company Profile : 07

About SAIL

Mission ,Vision and Core Values

08

09-103. SWOT Analysis 11

4. History of BSL,(product and services)

Process Flow Chart,(prodn.plan )

12-14

5. Scope of Study, Project objective Secondary product and need for

selling.

16-20

6. Marketing Dept. and B.O.D. Sales procedure, process and policies. 21-33

7. CMO,Metal Junction ,production prof. Auction Procedures

34-48

8. Data Analysis and Interpretation Awards and Recognitions

49-5455

9. Limitations and Bibliography 57-58

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10. Thanks.... 59

1.

Introduction of Bokaro Steel Plant

Bokaro Steel Plant (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.

With the turnover of Rs. 48,681 crore, the company is among the top five highest profits earning corporate of the country. SAIL has more than 131,910 employees. The company’s current Chairman is C.S.VERMA. With an annual production of 13.5 million metric tons, SAIL is the 14th largest steel producer in the world.

Bokaro Steel Plant is having a special range of steel products like Grade Steel, HRVO,WICR,DMR249A, HSCR, SAILCOR, SAILBOILER, Titanium BEARING , LPG Steel, HRNO, SAILMA, WTCR and BSK 46. The galvanized products of Bokaro Steel Plant are

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branded SAIL- JYOTI.

2. COMPANY

PROFILE

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STEEL AUTHORITY OF INDIA LIMITED (S.A.I.L.)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India. SAIL is India's largest steel producing company with a turnover of Rs. 47,042 crore, SAIL is among the five MAHARATNA of the country's Central Public Sector Enterprises. It is a fully integrated iron and steel maker. SAIL manufactures and sells a broad range of steel products that are used for different purposes like domestic construction, engineering, power, railway, automotive and defense industries and for sale

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in export markets. Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry. 

Satisfaction Customer Aspiration Unlimited Improvement Continual Leadership Market

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VISION : To prosper in business by achieving international competitiveness

through satisfaction of customer's needs by continuous improvement in

quality, cost ,and delivery of products and services.

MISSION: To safety health and environment, friendly, operations and

practices for its people as well as personal touch in all people imitativeness

and interactions to bring a sense of togetherness and pride, we believe

people create valve when they are valued.

CORE VALUES OF SAIL: (4 C's )

CORE VALUES

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BOKARO STEEL PLANT AT A GLANCE:

Bokaro Steel plant is the fourth integrated public sector plant in India in 1965 with collaboration with soviet union.

Construction work started on 06 April 1968. It is India's first swadeshi steel plant. 1st blast furnace started on 02 Oct 1972 and first phase of 1.7 MT steel was completed on 26 Feb 1978.

BSL has 5 blast furnace of capacity of 10 MT.

Coke oven of 8 batteries.

Steel Melting Shop (SMS I AND SMS II).

Continuous Casting Shop (CCS).

Slabbing mill.

PROCESS FLOW CHART OF BOKARO STEEL PLANT:

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PRODUCT AND SERVICES:

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Hot rolled coils, plates and sheets.

Cold rolled coils and sheets.

Oxygen gas.

Galvanized sheets.

Coke oven by-products.

Secondary products (slag and cements).

BOKARO STEEL PLANT - PRODUCT BASKET :

Mill Capabilities

Shop Products Facility Annual

Capacity

(,000

Tones)

Thickness

range (mm)

Width

range

(mm)

Length

(meter)

HSM HR Coils/ Sheets/  Plates Continuous Mill 3955 1.6 -16 900-1850  

HRC

F

HR Sheets/  Plates Shearing Line-I - 5-10 1800 2.5-12

  HR Sheets/  Plates Shearing Line-II   1.6-4 1500 1.5-4.5

  HR Coil Slitting Line        

CRM     1660      

  CR Coils/ Sheets CRM-I complex   0.63-2.5 700-1850  

  CR Coils/ Sheets CRM-II complex   0.63-1.6 650-1250  

  CR Coils/ Sheets, TMBP DCR Mill 100 0.22-0.8 650-1040  

  GP Coils & Sheets GC

Sheets

HDGL 170 0.3-1.6 650-1250  

Annual Production Plan of Bokaro Steel Plant:-

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2005-06 Unit: '000 Tones

Pushing BF Skip Hot Metal

SMS IMF PCM PIG IRON

CRUDE STEEL

Cast Ingot Nos./Day Coke Sinter slab

steelTOTAL

Apr'05 493 207 458 380 357 7 16 15 346 234 112May 493 214 470 390 366 8 16 15 355 242 113Jun 493 207 458 380 359 7 14 13 348 234 1141st

QTR493 628 1386 1150 1082 22 46 43 1049 710 339

Jul 493 214 410 340 320 7 13 12 311 242 69Aug 493 214 410 340 319 7 14 13 309 242 67Sep 468 196 458 380 357 7 16 15 347 234 113

2nd QTR

485 624 1278 1060 996 21 43 40 967 718 249

Oct 468 203 493 409 385 8 16 15 374 242 132

Nov 468 196 477 396 373 7 16 15 362 234 128

Dec 468 203 493 410 385 8 17 15 375 242 133

3rd QTR

468 602 1463 1215 1143 23 49 45 1111 718 393

Jan'06 492 214 512 425 402 7 16 15 390 242 148

Feb 492 191 452 375 353 7 15 14 343 220 123

Mar 492 214 512 425 402 7 16 15 390 242 148

4th QTR

492 619 1277 1225 1157 21 47 44 1123 704 419

TOTAL

2005-06 484 2473 5602 4650 4378 87 185 172 4250 2850 1400

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SCOPE OF STUDY:

To study the major 'CONTRIBUTION OF SECONDARY PRODUCTS' to total sales ,which is pre determining for the success of the company. The present study was undertaken to see mode of sale and pricing methods of secondary products of SAIL. To find how auctions, fixed price and tenders are used for marketing of BSL.

By selling secondary products in local market, company is earning profit. It is also creating an employment in small scale industries and developing economy.

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PROJECT OBJECTIVE:

In Bokaro Steel Plant there are various sections of marketing department. Since I had chosen "Marketing Of Secondary Products" at Bokaro steel plant.

My Objectives are:

To know what is secondary products and why it is necessary to sell.

To know the use of secondary products.

Marketing study of secondary products at Bokaro steel plant.

To study terms and conditions on which BSL sells its products.

To study and know how to do pricing of secondary products.

Dealing with local customers.

Customers and competitors of BSL.

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In Bokaro steel plant finished products are categorized into three categories:

PRIME PRODUCTS:

These are actual products which are originally Blooms , channels ,Rounds, angels, Tmt bars, Wire rods, Rails ,structures.

BY-PRODUCTS:

These products are not originally produced by Bokaro Steel Plant, but are the outcomes while producing the prime products.

SECONDARY PRODUCTS:

These are the defective and rejected products which due to improper mixing of chemicals components or fail to meet requirements. Scraps generated in Bokaro Steel Plant is termed as secondary products. The secondary products are ferrous materials generated from various production units which can be reused for remelting to produce iron to offered for sale if rendered surplus in the production process.

Following Items fall under the category of Secondary Products:-

(A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG

1. MS SLAB END CUTTING WITHOUT FISH TAIL

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2. MS THICLE PLATE CUTTING (25-40 MM) MIXED W.FR.

3. SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS.

4. LIQUID NITROGEN.

5. FINE IRON CHIPS FROM IMP (FE-70% APP).

6. FERROUS SULPHATE – LOOSE.

7. DEGRANULATED SLAG (BOTH BY FIXED PRICE AND TENDER).

8. LIQUID ARGON.

9. PIG IRON.

10.TURNING & BORING.

(B) OTHERS

1. CARBIDE SLUDGE.

2. U/R AMC/MCB BRICKS.

3. U/R MAJ CHROME MAJ BRICKS.

(C) COAL CHEMICALS AND BY PRODUCT

1. MG BENZENE

2. NG TOLUENE

3. LS NAPTHA

4. SB OIL

5. HP NAPHTHALENE

6. ANTHRANCENE OIL

7. EXTRA HARD PITCH

8. HARD MEDIUM PITCH – SOLID STATE

NEED FOR SELLING SECONDARY PRODUCTS:

The net sales realization from all secondary products, by products and co-

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products of Bokaro Steel Plant is around Rs.600 crores which is quite more than any of the big industries. Reproduction of main products these secondary products requires remelting it again for required composition of materials as per designed specification .

By selling it to different mills or processor the plant gets around Rs.4000 crore per tones of profits than by reproducing it to main products.By using these materials traders /processor make raw materials for different finished products.

PROCEDURES FOR SALES OF SECONDARY PRODUCTS :

By February , the availability of next financial year is estimated. A list of customers of coal chemicals are prepared and customers

intimate section about their requirements. According to request submitted ,the various customers are told the

quantities they will be provided with. To buy a product a security is deposited. The buyer arrange for transport of products.

List of the secondary products of Bokaro Steel Plant:SlagScraps of Vehicles ,Automobiles ,etc.Iron dust.Scraps rolls.

“ROLE OF MARKETING DEPARTMENT” OF BSL :

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> MARKETING DEPARTMENT OF BOKARO STEEL PLANT:

Marketing Department is one of the Departments under Materials Management

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Division of Bokaro Steel Plant. Marketing Department is entrusted with the responsibilities to sell BSL’s 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 SAIL’s 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.

The secondary section deals with the secondary Products, it includes scraps of iron and steel slag, coal and coke fractions, coal chemicals.

The Marketing development section deals with the MIS and strategic Planning activity come under this section.

The pricing and sales strategy of secondary products at Bokaro steel plant is undertaken to see the mode of secondary products of SAIL marketing department is the newest genesis from the sail and attempt to reach where no corporate has ever ventured so far.

Main point is to find how auctions, fixed price and tenders are used for marketing purpose.

90% of marketing and selling is done through auction and rest will be taken as fixed price selling and by tenders.

On the other hand primary products are sold by C.M.O. Delhi.

ORGANISTATION CHART OF MARKETING DEPARTMENT (BSL) : ( B.O.D)

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Jr. Mgr. (Co-ordn.)/Mktg.

. Training Officer

POLICIES OF MARKETING:

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GM (Marketing)

JR.MANAGER(CO-ORD./Mktg)

Cord,HK,Adm.,Training Mgr DGM (Mktg.)

Audit, Vigilance, RTI, & other queries reply, Contract Cell(MM), Sec. Sales

AGM(Mktg.)

Sec. Steel Ad & Est, QC, ISO, DCA,

Sr. Mgr.(Mktg.)

Slag, Waste, Iron, Smugl. Scheme

Sr. Mgr. (Mktg.)

Sr. Mgr. (Mktg.)

Coal& Chem., Zinc Dross, Ammonium Sulphate & Ferrous Sulphate

Manager (Mktg.)

Reports, Price Monitoring, MIS

Jr. Mgr. (Mktg.)

Secondary Steel,

Safety Officer

Jr. Mgr. (Mktg.)

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Marketing Planning has responsible function in the working of marketing department. All the risky developments, taking out solution to cripple `situations, this section carries out product pricing and related activities, some of the programmed, policies and procedures are as follows:-

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

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

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

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

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

VI) Periodical market surveys of products to analyze the market position.

VII) Implementation of suggestions received from the customers’ feedback.

VIII) Ensure customer satisfaction by meeting customers regularly; provide redress to their problems and fulfillment of demand.

Pricing policy and Sales Procedure:

> PRICING:

Fixing the price of a product is the most vital function in the whole process of the marketing and it should be done after proper market study and requires decision making ability. If price is too low the company will lose revenue and if the price is too high it will lose customers resulting in loss of revenue valuable customers. Coal chemicals are the main product which is to be marketed by the Marketing Department of Bokaro Steel Plant. Almost all the products are sold on the fixed price basis. This is due to the fact that the company does not enjoy monopoly in the said market and the price is totally market driven.

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The policy adopted by the marketing department for pricing of materials is largely guided by the price offered by the bidders during the auction. The various factors taken into consideration while pricing the re-roll able items can be enumerated as follows: -

(a) Prices offered in the auction sales.

(b) Quantity of material to be lifted.

(c) Managing director's approval.

The average of the prices offered by the bidder during auction is taken as the basis to fix the prices of materials to be sold through marketing department. Further the techniques of break-up-pricing are adopted i.e. the larger the quantity purchased lower will be the prices. This technique encourages the buyers to purchase larger quantity. Finally the managing director approves the prices set by the pricing committee. On this basis, a price list is prepared for all the potential buyers. Price list also indicates the sales tax and Excise duty to be levied. Thus the interested parties place their orders with the marketing department on the basis of price list reviewed every month. Every customer is required to have a security deposit amount of Rs.1 lakh. The payment for the material required is to be in advance. The material is supposed to be lifted on the specified date on account of delay the party has to pay the difference in the prices, if there is any increase in subsequent month.

Standing Pricing Committee:

The committee reviews the price of various products and takes decision in favor of maximizing the profit. It holds meeting at least once in a month. But the volatility of the market and pool of different products lead to a number of meeting of the committee in quick succession.

The committee consists of:

GM (Utility), Chairman.

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GM (Marketing), Convener.

DGM (Finance), member.

DGM (Sales Coordination), member.

DGM (Stores), member.

DGM (BPP), member

For Scrap goods the DGM (SSD) replaces the DGM (BPP). Rests of all the members are always present in all the meetings.

While deciding the price following points are kept in mind:

Dispatch of the last month.

Material in stock.

Forecast of next month.

General market condition.

Availability of transport facility.

GM (Marketing), as per the need, decides the frequency and time of meetings to be held. Minute report of all the meetings is prepared and it contains the existing price and the proposed price. The final price is moved to the MD through the official channel including GM (Marketing), Executive Director (MM), GM (Finance and Accounts), and ED (Works). After the MD’s approval the price becomes applicable and the circular indicating the revised price is printed, issued and distribution to the customers and all the concerned departments.

DISTRIBUTION

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On the other hand for sale of scraps there is no such policy adopted by Bokaro Steel Plant. Customers are served on first come first served basis.

CHANNELS:

Bokaro steel plant has zero level channels as it directly sells to the customers. There is no intermediate among producer and consumer. Marketing Department always remains in contact with the customers’ extracts information about the current market situation on the basis of interaction between them.

MARKETING STRATEGIES OF BSL:

Steel being an industrial commodity it is very necessary to maintain customer relationship for profitability and smooth running of company.

1. Customer Satisfaction:

- BSL adopts following practices for customer satisfaction.

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

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

c. It has posted market development officers at various locations that are its eyes and ears for monitoring current and future expectation of its customer.

d. To understand customer needs seminars and workshops are also organized by BSL.

Building Customer Relationship:

BSL has adopted the philosophy of recognizing segment of the market and identifying key customer in segment and giving them preferential treatment. CMO sales executives have been trained to use direct selling as tool for building long lasting relationship with the customers. Easy access to customers to seek assistance makes proposals send comments and compliments.

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MARKET DEVELOPMENT:

BSL has valued customers group in identifying their specific needs Specific to that group thus segmenting and developing market segment for our products. Major product modifications are done as per their specific needs of the Market segment thereby creating product differentiation packages.

2. STOCK REDUCTION :

Giving facilities like door delivery, road dispatches, credits facility and rounds the clock stockyard operation.

3 PRICE FIXATION:Pricing is done basically by the CMO. Taking into consideration cost of production, government steps on pricing, certain percentage of profit, price of raw material fright charges etc. i.e. pricing is COST PLUS PRICING.

4 DISPATCH:

As the product is manufactured, this department directs the stockyards the mode of transport to the destination with reference to dispatch program and dispatch advice is mode.

5 DOCUMENTATION:

With the dispatch of product the Finance department calculates the total cost of product as per demand order. Certain receipts and bills quoting the material code, nature, quantity, and all expenses are sent to connected stockyard. The product will be then released to the concerned person after proper and complete payment to the pay-in- authorities is made.

PLANNING FOR SALE OF SECONDARY PRODUCT:

1. Marketing Recovery Department (MRD) works out the quantum of different types of scrap available for sale on monthly basis. This is determined by ascertaining the total scrap stock at the beginning of the month. Scrap arising

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during consumption. The remaining quantity is considered for sale. A, monthly report on availability of scrap is prepared by MRD and sent to marketing department.

2. Marketing Department finalizes the plan for actual quantity of scrap to be sold in consultation with MRD. Marketing department finalizes mode of sale, terms and conditions for sale, locations and commercial aspects.

3. The pricing committee consist of Managing Directors fixes the price of each type of scrap.

4. Marketing department obtains MD's approval on price fixed by pricing committee.

PROCEDURE APPLIED FOR SALE OF SECONDARY PRODUCTS:

1. After obtaining approval of quantity and price for sale, Marketing department scrutinizes the demand from various parties, examine the Priorities and issue "offer letters" to respective parties. The terms and conditions for sale are also enclosed with the "offers Letter"

2. About one third of the quantity of material to be sold during the year is offered to the actual users, subject to registration of demand.

3. For the balance quantity to be sold at prices fixed by pricing committee, preference is given to actual users over traders. If there are no actual users, the material may be offered to traders giving preference to registered traders over others.

4. First preference is given to the actual users for allotment of scrap against particular category of users. Scrap processing units are given second preference for such allotments.

5. The amount received from the party towards advance payment and security deposit is forwarded to finance department by marketing department after recording the details in the register.

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6. Parties are allowed to visit the respective location disposals site, and inspect the scrap offered for sale.

7. Marketing department prepares sale order for the parties who have accepted the offer. Sale orders are issued party wise and category wise i.e. individual sale order covers such categories like C I scrap, steel scrap, re-roll able, slag and waste products.

8. Based on the deposit made by the party, finance department intimates to marketing department about release of requisite scrap for supply.

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THE STRUCTURE OF THE PROCESS OF SALES AND MARKETING:

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PRODUCTS

PRIMARY (SPECIFIC PARAMETER) SECONDARY/BY-PRODUCTS

CMO (KOLKATA) UNITS- BSL, BSS, RSP, DSP etc

BSL MARKETING

METHOD OF SELLING

E-AUCTION SALE TENDER FIXED PRICE SALE

BSL MARKETING (MAIN SECTION)

STEEL CHEMICAL & BYE-PRODUCTS

SLAGS & WASTE PRODUCTS

IDLE ASSETS PRICING

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Selling of Secondary & By-Product:

This involves a direct marketing process. The management of BSL in consultation with the official of the market development and customer service department work as group for the sale of these items. Different modes of selling are used for these products

MODE OF SALE:

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Fixed Price Sale

E-auction

TenderInter Plant Transfer

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SALES AND DISTRIBUTION OF SECONDARY PRODUCTS:

This involves a direct marketing process. The management of B.S.L. is consolation with the officials of the market development and customer service department works as a group for sales of these items.

By E-Auction: E-Auction is internet based selling method of selling of secondary products. In this method there is online bidding action done by company website.Applicants can offer their price money with particular quantity they want. After closing the date of auction within 5 working days, the final customer's name is declared on the website based on the price money offered by them. They are invited for the further process for purchasing materials.

MARKETING SCENARIO :

Without a perfect market ,goods can neither be sold nor purchased. Marketing is the one of the major and crucial department pillars of every organization .

Customers satisfaction and Quality assurance : These are two motives of SAIL for achieving the goal and establishing the market. SAIL has wide network across the world, consisting of CMO for marketing division. Its headquarters are situated in Kolkata.

Bokaro Steel Plant has established its position through the better service. It has several departments among which marketing division plays a key role. Every plant has its branch sales office (B.S.O.) who looks upon the orders of CMO. These orders are then send to the plant to check the availability and production for dispatch. All departments are linked through Management Information System (MIS) from CMO to each and every department of plant.

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For marketing of different types of items policy are adopted by Bokaro Steel Plant are as follows :

MOU is as agreement signed between the plant and customer for assured quality and quantity.

CENTRAL MARKETING ORGANISATION:

Central Marketing Organization ,is the one of the largest marketing network for mild steel products from the four integrated steel plants of sail. The CMO headquarters is situated at Kolkata and commercial directorate is at New Delhi. A nationwide network of regional offices, sales offices and several strategically placed warehouses is further supplemented by consignment agents and authorized dealers to meet the demands of the smallest customers in the remote corners of country. CMO maintains its aggressive marketing efforts in order to retain market leadership by meeting customers' requirements and evolving to increase sales. In order to strengthen the marketing approach and initiate the product and segment specialization.

CMO has been recognized on the basis of long and flat products. Key account management process has been implemented in CMO to provide better quality.This is being followed by Customer Satisfaction Index (CSI) to increase responsiveness to the customers need. Yet another significant development has been re-oriented of the sales branches. These wide range of network of authorized dealers also help to meet customers demand.

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Regional Offices of Central Marketing Organisation (CMO):

North Region East Region South Region West RegionAllahabad Siliguri Bangalore AhmadabadChandigarh Bokaro Chennai BhilaiFaridabad Jamshedpur Coimbatore BhopalNew Delhi Patna Hyderabad MumbaiKanpur Guwahati Cochin Nagpur

Marketing Department of Bokaro Steel Plant:

Marketing Department:

The Marketing of prime products of all the steel plants of SAIL is handled by Central Marketing Organization (CMO). The Marketing Department of Bokaro Steel Plant is entrusted with a job of co-ordination between the CMO and plant as well as marketing of secondary products and by products for easy of functioning of market is divided into following functions:

MARKETING AND STRATEGIC PLANNING:

Handling of Customers Complaints : In case of any complaints by the customers, the complaints are send to the G.M. of particular mill. The CMO has an application engineer for commercial settlement which inspects the materials and if found defective adjustments are made in payments or materials is taken back.

Customers Feedback :Customers feedback is taken by this section on a periodic basis in the form of customers satisfaction feedback reports. A four points feedback is taken for increasing the market share and for customers retention. There is a key accounts manager who handles them, to provide single window services.

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ISO Activities : The various documents pertaining to ISO activities are handled and managed here.

Training : This section also overviews the training of new trainee. Product Development : The management and research group of CMO studies the

market demand, supplies and feasibility for which is checked at plant .

Strategic Planning : This section deals with the product mix ,quantum of exports ,monthly tonnage and for other parameters according to the demand .

EXPORTS :

The International Trade Divisions of CMO is main body that handled exports of steel in SAIL. BSL has been major exporters in the past .Rails have been exported to over 50 countries . The procedures for exports are as follows :

The International buyer sends an enquiry to ITD for availability of goods.

If response is positive then a letter of credit is sent in the name of the buyer and deal is signed specifying the terms and conditions .

ITD gives a contract to BSL in the form of work orders to be processed here and sent to mill for production.

After production of goods dispatch advice is send to production department ,after which goods are verified and tested and then goods are send to vizag for export .

At the ports ,the various formalities are completed relating to : export license and GR form.

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MARKETING AND BUSSINESS PLANNING DEPARTMENT OF BOKARO STEEL PLANT :

Marketing and business planning department of Bokaro steel plant act as an interface between plant and CMO for co-coordinating with for sales of prime products. Apart from this ,it also carries out direct sales of secondary products and by products generated in plant . The activities framework is given below :

INTERNATIONAL TRADE DIVISION (ITD):

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International Trade Division (ITD) of CMO manages exports of mild steel products and maintains close liaison with buyers abroad . ITD has been successful in making SAIL steel ,a familiar name across the continent . Transport and Shipping division (T&S) of CMO performs the important functions of ensuring proper dispatch of exports materials and timely import of raw materials .

BRANCH SALES OFFICE :

This office is related to the sales of prime products of Bokaro Steel Plant, which has been acting as an interface between CMO and BSL . The different issues has been related to the products and its delivery. We can say that it coordinate about the production and dispatch in different steel plants . CMO has got SRM offices in Bokaro, Durgapur and Bhilai .

FUNCTIONS OF BRANCH SALES OFFICE (BSO) :

Booking of orders from customers on long term and short term basis .

Passing details of booking to concerned sales resident manager office .

The meeting related to the sales of product is done immediately .

The customers complaints are also handled .

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CREDO :

1. We build lasting relationships with customers based on trust and mutual relationships.

2. We uphold highest ethical standards in conduct of our business.

3. We create a culture that supports flexibility , learning and is proactive to change .

4. We chart a challenging career for employees with opportunity for advancement and rewards .

5. We value the opportunity and responsibility to make a meaningful difference in people's life .

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METAL JUNCTION (M-JUNCTION ) :

M-Junction service limited operating at the cutting edge of Information Technology and the Internet is a 50:50 venture promoted by SAIL and TATA Steel .Founded on February 2001, it is today's not only India's largest E-commerce company (having transacted worth over Rs.1,60,000 Crores ) till date and sold over 4 million Tons of steel for its client and currently selling at an average rate of 1,50,000 tones per month ,but also run as the world's largest E-Market place for Steel . The Steel and Coal supply chain in India has been transformed by m-junction which is famous for its efficiency ,transparency and convenience to purchase and sold and clients have experienced significant benefits on migrating to online selling and price realization is increased up to 23% .Similar transformational change is sought to be made in automobile industry and in the safe of brand products with the launch of auto junction and straight-line respectively .Business volume of the company in terms of transaction has scored from Rs.94.34 crores from FY 2002 to Rs.41.134 crores in FY 2014 ,registering a CAGR of 74% .M-junction's growth has not only been in terms of transactional value ,revenue and profit . In the space of just 12 years , it has established a national footprint at more than 25 locations all over the country .Starting out with a terms of less than 6 people at inception ,had reached to 500 people at a particular location . M-junction is an ISO 9001:2008 , ISO 27001 and CMMI Level 5 Certified . These business units provide stakeholders o the both sides with a level playing field with an objective of Price Discovery .M-junction sell side community today consists of over 20,000 buyers ,buying steel and coal products as well as by products .

Vision Of Metal Junction (M-Junction ) :

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Metal Junction is customer focused, technology driven and innovative as it charts is progress over the next five years .It will seek to create value for its customers consistently achieving growth of 25% .

Mission of Metal Junction ( M-Junction ) :

M-Junction makes the world a better place every day by creating robust and sustainable supply chains by bringing in more efficiency and transparency and delivering desired outcomes to stakeholders .

Values Of Metal-Junction (M-junction) :

Customer Focus : Metal-junction strive to exceed customer expectations for value and services .It build and maintains customers relationships and ensure long term satisfaction .

Excellence : Metal-junction constantly strive to achieve the highest possible standards in day to day work and in the quality of services they provide.

Innovation : They are motivated to produce creative solutions that meet our customer's specific needs and situations .

PARTNERS OF THE METAL JUNCTION (M-JUNCTION ) :

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HDFC BANK UTI

Technology Partners of Metal-Junction :

Who Sells On Metal-Junction ( M-Junction ) :

JINDAL POWER &SERVICES

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ADVANTAGES FOR SELLORS AND BUYERS FROM SECONDARY PRODUCTS :

Advantages to sellors:

1. Process efficiency through reduced time to market.

2. Reduce cost and manpower .

3.Reduced inventory due to shorter cycle time .

4. Increase revenue through wide reach.

5. Better price discovery mechanism .

Advantages to buyers :

1. Convenience2. Transparency .3. Lower cost due to disintermediation.4. Faster fulfillment through value-added-services like E-Payment.5. Dedicated support.

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PRODUCTS PROFILE OF BOKARO STEEL PLANT :

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Procedure for Online Forward Auction :

Lot Formation- Lot is formed in based of type / class / category / grade wise. Each lot shall has identification mark and a specific lot number indicating the location.

Inspection of Material ( for material available on ground ) - The materials offered for sale are on “AS IS WHERE IS” (AIWIB) and “NO COMPLAINT” basis

Earnest Money Deposit ( EMD )

Conduct of Forward Auction by M-Junction.

Award at the Auction - only H1 bidder ( normally the bidder who quotes the highest price ) is awarded the item being auctioned .

Acceptance of Offer / Sale Order / Offer Letter

Security Deposit and Payment towards material value-The successful bidder shall be required to furnish security deposit ( if applicable ) and the amount against value of materials including taxes & duties applicable as per details indicated in the Acceptance of offer / Sale order / Offer letter .

Release Order / Delivery Order.

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Lot value in Rupees EMD Lot(s) having value up to 25 Lakhs

Rupees. @ 2 % of lot value.

For lot(s) having value greater than 25 Lakhs Rupees.

Rs. 50,000 /-.

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Price Fixation:

Reserve Price Fixation Committee (RPFC) for Sale through Electronic Auction / Open Tender

A Reserve Price Fixation Committee (RPFC) constituted with the approval of the Competent Authority for deciding the Reserve Price.

The RPFC may consist of representatives from

Marketing Department / Materials Management /Department, Finance, Dealing Department /Operations & Chief Executive’s Nominee, if any.

RPFC may be headed by an executive not below the rank of E-7.

RPFC shall recommend the Reserve Price (RP) for each category of material, which shall be forwarded in a sealed cover to the head of Materials Management Department / Marketing Department and kept confidential

Disposal of Idle Assets:

• Idle assets are those, which are no longer required of intended purpose and/or retired from active use. These may be categorized as assets becoming idle

- due to normal/premature replacement.

- Being abandoned after installation & commissioning.

- Being found in-operative/uneconomical after procurement.

The major reasons for items becoming idle could be either / or a combination of the following:

1. Technological up gradations/modernization of plants/processes.

2. Inherent design defect.

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3. Non-availability of spares and/or drawings and /or inputs (Raw materials / consumables/stores etc.)

4. Change in market scenario affecting marketability of product.

5. Changes in pollution control / Safety statutory laws and requirements.

6. Where items have out lived its life.

Procedure for Disposal of Idle Assets:

• Committee for management of Idle Assets(CMIA) - Identification, declarations, processing for write- off and disposal of the Idle Assets .

• Determination of Written Down Value (WDV) - Cost of Assets capitalized in the books of Accounts less accumulated depreciation

• Write-off losses - Chief Executives and Directors are empowered to write- off losses.

• Initiate action for identifying the Prospective buyer - Auction for disposal of Idle Assets. Same procedures are followed i.e lot creation, RPFC,etc.

Sale through Fixed Price:

• Mixed Coke- Sale of Mixed Coke (3100 MT) through auction . Revenue generated Rs 2.76 Cr.

• By Road Dispatch of Mixed Coke at Fixed Price.• BFG Slag - Initiation of Sale of BFG Slag at Fixed Price

• M/s ACC Ltd is leading customer apart from other prospective customers willing to take at Fixed Price

• Revenue Generated.

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SALES OF SECONDARY PRODUCTS :

SCRAPS : Scraps are the recyclable materials leftover from product manufacturing and consumption such as parts of vehicles ,building supplies and surplus materials . Unlike waste ,scraps has monetary value ,specially recovered metals and non metals for recycling .

BENEFITS OF RECYCLING SCRAPS :

1. 90% savings in raw materials used .2. 75% saving in energy .3. 86% reduction in air pollution .4. 76% reduction in water pollution .5. 97% reduction in mining wastes .

Every ton of new steel made from scraps of steel saves :

1,115 kg of iron ore . 625 kg of coal . 53 kg of limestone

DESCRIPTION ABOUT SLAG OF B.S.L. :-

Slag is the glass like by-products left over after a desired metal has been seperated ,i.e., smelted from its raw ore. Slag is usually a mixture of metal oxide and silicon dioxide. However slag can contain metal sulfides and elemental metals. While slags are generally used to remove waste in metal smelting, such as assisting in temperature control of smelting and minimising any reoxidant of final liquid metal .

METHODOLOGY:

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Methodology is considered as the nerve of the project. Without is proper and its

well-organized plan, It is impossible to complete the project and reach to any

conclusion. The project was based on the survey plan. The main objective of

survey was to collect appropriate data which work as a base for drawing

conclusion and getting results. Therefore, methodology is the way to

systematically solve the research problem. Methodology not only talks of the

methods but also logic behind the methods used in the context of a research study

and it explains why a particular method has been in the preference of the other

methods.

RESEARCH DESIGN

Non-Probability

Exploratory & Descriptive experimental Research.

The research is primarily both exploratory as well as descriptive in nature. The

sources of information are both primary & secondary.

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Interpretation:

E- Auction Sale(Yearly Comparison)

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000 44136 4550243890

3362839220 40037

32905

38532

30825

e auction-Recommended for sale (Base Price)

Val

. in

Rs.

Lac

s

ANALYSIS:By the process of sale through E-Auction ,the highest sales was recorded in the year 2007-2008 as compared to the others years.But in the current financial year of 2014-15 there was very low sales through e-auction. In year 2007-08, the net sales was of Rs.45502. After 2007-08 the second highest sales was recorded in the year 2006-07, which was slight change in the sales of Rs.1366 lakhs. As in the year more and more people were interested in purchasing through e-auction of Rs. 38532 lakhs.

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Interpretation:

Idle Assets: e auction value( in Rs Lacs)

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

3588

48 78 56129

930

146 168224

613563

259 282

79 114 147

420

62

315

9655

0 0

2013-14 2014-15

ANALYSIS:

The value of the Idle Assets through e-auction was highest in the october of 2013-14 of Rs.930 lacks.This data shows that more and more people sold their movable vehciles during october month of 2013-14 for purchasing new assets.The lowest sale was made during april of year 2013-14 of Rs.35 lakhs only.

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Interpretation:

BFG Slag ( in Rs Lacs)

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR0

200

400

600

800

1000

1200

322250

294 298 306 301243

973

379 369 406 423340 310 297 275 251 288 313

261 246

142

0 0

2013-14 2014-15

ANALYSIS:The sales of Slag of Bokaro Steel Plant was higher in november of the FY 2013-14 of Rs.973 lakhs as compared to others years.And in same month of next year 2014-15 the sales was of Rs.261 lakhs,which was very much lower than previous year.In 2013-14, the sales of slag was of Rs. 423 lakhs.

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Interpretation:

Total Sale (Dispatch Value)

APRIL

MAY JUNE

JULY

AUG SEPT

OCT NOV DEC JAN FEB MAR0

1000

2000

3000

4000

5000

6000

7000

5821

4601

31383495 3554

50645521

6098

4734

3839

5124

6124

3197

6246

37003957

44164229 43614247 44394008

0 0

Total Sale (Despatch Value)

2013-14

Val.

in R

s. L

acs

ANALYSIS:The total sales was highest in the year 2014-15 of Rs. 6246 lakhs,which was higher than previous year of Rs. 4601 lakhs.The total sales is increasng day by day and leading to the more profit.The lowest sales was recorded in june of year2013-14 of Rs.3138 lakhs.

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Dispatch Invoice Value (2013-14 vs 2014-15)

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Interpretation:

NET SALES REVENUE (Rs./PMT)

2014-15

2013-14

2012-13

2011-12

2010-11

0

10000

20000

30000

40000

50000

60000

70000

8000031

666

3022

2

3083

4

3087

3

2773

83971

5 4884

3

4208

7

3598

5

2704

1

7194

0

7278

0

5718

3

4857

6

5226

0

Sec.SteelCrude BenzolH P NaphthaleneRs

./pm

t

ANALYSIS:

The Net Sales Revenue of H P Napthalene was higher in 2012-13 of Rs. 72780 per MT as compared to others years. On the other hand in 2014-15 it was Rs.71940 per MT. The sale of secondary steel was higher in 2014-15 of Rs. 31,666 per MT. The Net Sales Revenue of Crude Benzol was higher in 2014-15 of Rs.71940 per MT.Net Sales Revenue is increasing with upgration of technology and modernisation.

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AWARDS AND RECOGNITIONS :

EXCELLENCE AWARDS By Institute of Economic Studies.

Bhartiya Shiromoni PuraskarBy Institute of Economic Studies

Business Simulation Award By Institute of Economic Studies

Employee Volunteering Program of the Year

Apeejay India Volunteer Awards 2011

Industry Accreditations :

NASSCOM CII (Confederation of Indian Industry ) IIMM

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CONCLUSION :

Bokaro Steel Plant faced large ups and down in terms of their productivity and profitability . Its continuous improvement in terms of quality is one of the flagship for sale . Bokaro contributed in terms of materials , money and men is being commendable .

Bokaro Steel Plant has faced the problem of coal products last year but still it has maintained its productivity as per plans and scheduled .BSL had gained huge marginal profit of Rs. 2148 crore in 2009-10 . Thanks to the modernization and maintenance that had changed the fortune of BSL . With the new challenges ,changing market and environment ,BSL has sufficient capability to look further for future to gain profit . It is backed up by the chief assets and has a strong and capable team ,who can caliber to face any problem . BSL had implemented many steps to strengthening its fundamentals such as cost reduction ,technology improvement ,lowering borrowing level, persistent efforts to bring about a positive attitude toward organizational goals among employees through planned communication ,training ,optimum utilization of resources .

As the Steel horizon brighten up after a long period of Bloom ,Bokaro makes most of it and emerges as a leader . Majority of the company buy the Steel scraps from BSL and also buy iron scraps and melting scraps . Most of the surveyed companies are dealing with BSL since 40 years and most of them buy products only from BSL .

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LIMITATIONS OF THE STUDY :

1. Some of the data were confidential ,therefore they were not available .

2. Time Factor- Time factor was main limitation of the study . Limited time was given to study .

3.The research has focused his attention mainly in and around Bokaro .

4. As the major customers of BSL products are not individual persons ,it was very difficult to formal feedback from them .

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BIBLOGRAPHY:

Bokaro Steel Plant (SAIL) Journal . Bokaro Steel Plant (SAIL) Brochure . Bokaro Steel Plant (SAIL) Manuals .

Internet :

http://www.sail.co.in/plant _bokaro.asp

Company profile:http://www.sail.co.in/searchindex1.asp

Magazine published by SAIL

Training manual

Books of organization

Newspaper

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