A PROJECT REPORT ON

MARKETING & STRATEGIC PLANNING OF SECONDARY PRODUCTS

AT STEEL AUTHORITY OF INDIA LTD. BHILAI STEEL PLANT.

SUBMITTED TO UNIVERSITY OF PUNE

BY KAMAL PATIL MBA - II (2004-2006)

VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE - 411037

A PROJECT REPORT ON

MARKETING & STRATEGIC PLANNING OF SECONDARY PRODUCTS

AT

STEEL AUTHORITY OF INDIA LTD. BHILAI STEEL PLANT.

SUBMITTED TO UNIVERSITY OF PUNE

BY KAMAL PATIL MBA - II (2004-2006)

VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE - 411037

INTRODUCTION TO TOPIC
In today s competitive world where cutthroat competition exists, every one wants to know their position, their strength and weaknesses. So it is very essential to know opportunity to target the potential market, capture the market, evaluate and form the marketing strategies. Marketing strategy is an element of the overall strategy of organization. It is a way through which companies achieve their goal, or in others words, it is the complete unbeatable plan designed especially for attaining the marketing objective of the firm. The marketing objective indicates what the firm wants to achieve. The marketing strategy provides the path and design for achieving them. They are normally arranged in accordance with the guidelines provided by the company objective and company budgets.

Bhilai Steel Plant is the steel manufacturing plant. The main products of plant are Rail Tracks, Billets, Blooms, Plates, Wire Rods, and Angles. While the production of primary products there are generation of some byproducts or secondary products. These secondary products also sold in the market and make a huge amount of revenue. The quantity of these materials is very high therefore it needs totally different marketing strategy to sell in the market.

This project was basically concerned to the Marketing & Strategic Planning of Secondary Product and collecting view of customer of secondary product, like problems face by them while purchasing these product, what are there expectation from Marketing Department. Overall, this

project suggests in the improvement of the existing marketing strategy of secondary product and helps in eliminating the flaws in sale policy of Bhilai Steel Plant.

CERTIFICATE

This is to certify that this project titled Marketing & Strategic Planning of Secondary Products at Bhilai steel plant, SAIL is a bonafide work carried out by Kamal Patil of MBA-II of Vishwakarma Institute of Management for fulfillment of MBA degree of University of Pune.

He has worked under our guidance and direction. His work is found to be satisfactory and complete in all respect.

Prof. S. L. Joshi (Director)

Prof. Rajesh Vhatkar (Project Guide)

Date:

Date:

Place: VIM, Pune

Place: VIM, Pune

COMPANY PROFILE

Steel Authority of India Limited (SAIL) is the leading steelmaking 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. Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, 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. Our 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 our plants and major units are ISO Certified.

Integrated Steel Plants Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand Special Steel Plants Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu Visvesvaraya Iron and Steel Plant (VISL) in Karnataka Subsidiaries Indian Iron and Steel Company (IISCO) in West Bengal Maharashtra Elektrosmelt Limited (MEL) in Maharashtra Bhilai Oxygen Limited (BOL) in New Delhi

Joint Venture
SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce. NTPC SAIL Power Company Pvt. Ltd Setup 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 Rourkela Steel Plants which have a combined capacity of 240 MW.

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

Bhilai Electric Supply Company Pvt. Limited Another SAIL-NTPC joint venture on 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 tones of steam per hour.

UEC SAIL Information Technology Limited This 40:60 joint venture between SAIL and USX Engineers & Consultants, a subsidiary of the US Steel Corporation, promotes information technology in the steel sector.

Metaljunction.com Private Limited 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 Center 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 Limited 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 to DSP and other plants.

Romelt-SAIL (India) Ltd A joint venture between SAIL, National Mineral Development Corporation (NMDC) and Russian promoters 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. 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 "Navratna" status, enjoys significant operational and financial autonomy.

BACKGROUND & HISTORY OF SAIL

A Rich Heritage
The Precursor SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialization of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India.

Expanding Horizon (1959-1973)

Hindustan Steel Ltd. (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956 and ultimately to Ranchi in December 1959.

A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after

commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73. Holding Company

The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company.

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.

The New Millennium

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 export markets and a large pool of technical and professional expertise. Having achieved the initial goal of laying the foundation for the industrial development of the country, SAIL took up the new challenge of facing the era of liberalized economy and the emerging competitive scenario in the Steel market. On the eve of entering the new millennium, SAIL launched its Financial and Business restructuring programme. The strategy includes a divestment of non-core activities, restructuring of marketing function and a focus on pruning cost of operation. The goal for the company is to emerge as one of the lowest cost producer in the global steel market.

PLANT WISE

Bhilai Steel Plant

Blooms, Billets and Slabs beams Channels, Angles Crane Rails Plate Rails Pig Iron, Chemicals and Fertilizers

Bokaro Steel Plant

HR Coils and Sheets Plates CR Coils and Sheets GP Sheets and Coils \ GC Sheets Pig Iron, Chemicals and Fertilizers

Durgapur Steel plant

Blooms, Billets and Slabs beams Joists, Channels, Angles Bars, Rods and Rebar s Skelp Wheels, Axel, Wheel Sets Pig Iron, Chemicals and Fertilizers

Rourkela Steel Plant

HR Coils Plates CR Coils and Sheets GP Sheets\ GC Sheets Tinplates Electrical Steels Pipes Pig Iron, Chemicals and Fertilizers

PRODUCTS Product Semis Long Products type wise Blooms, Billets and Slabs Structural, Crane Rails, Bars, Rods And Rebar s, Wire Rods Flat Products HR Coils, Sheets and Scalp Plates CR Coils and Sheets GC Sheets\GP Sheets and Coils Tinplates, Electrical Steel Tabular Products Railways Products Pipes Rails Wheels, Axels, Wheel sets

THE SEVEN C S OF SAIL

Consistent Quality Committed Delivery Customized Products Competitive Prices Complaint Settlement Contemporary Products Culture of Customer Services

CONTENTS

TITLE
EXECUTIVE SUMMARY INTRODUCTION TO TOPIC COMPANY PROFILE SCOPE OF WORK OBJECTIVE OF PROJECT WORK RESEARCH METHODOLOGY INFORMATION & ANALYSIS OBSERVATION & FINDINGS LIMITATIONS CONCLUSION SUGGETION BIBLIOGRAPHY ANNEXURE

PAGE
01-02 03-03 04-21 22-22 23-23 24-24 25-34 35-53 54-54 55-56 57-58 59-59 60-67

INTRO DUC TIO N TO TO PIC

EXEC UTIV E SUM M ARY

C O M PANY PRO FILE

SC O PE O F WO RK

O BJEC TIV E O F PRO JEC T

INFO RM ATIO N & ANALYSIS

O BSERV ATIO N & FINDING S

LIM ITATIO NS

C O NC LUSIO N

RESEARC H M ETHO DO LO G Y

ANNEXURE

SUG G ETIO N

BIBLIO G RAPHY

EXECUTIVE SUMMARY
Progress is a continuous process. It is relative and absolute. We can t stop at a certain destination and declare that target has achieved and we need not go further.

The summer training programs are designed to give the manager of the future, a feel of the corporate happening and work culture. These real life situations are entirely different from the simulation exercise enacted in an artificial environment in side the classroom and it is precisely because of this reason that this summer training is a bridge between the institute and organization. Summer training program made us to understand how theoretical knowledge will be applied in practical field.

It exactly in this context that I was privileged enough to join Bhilai Steel Plant, on 30 t h of May 2005, as a summer trainee. STEEL AUTHORITY OF INDIA (SAIL) is ranked among the top ten public sector companies in India in terms of turnover. Bhilai Steel Plant is one of steel plants comes under SAIL. It is symbol of Indo Soviet Techno Economic collaboration, is one of the first three integrated steel plant set by the Government of India. It is also the known for its enlightened and progressive approach in steel making.

The experience that I have gathered over past eight weeks has certainly provided me with an orientation, which I believe, will help me, shoulder any assignment successfully in future.

In today s market where the customers are playing a major role and it s extremely necessary for an organization to see that their product provides complete satisfaction to their customer by fulfilling their needs. During this project I study the marketing strategy of secondary products of Bhilai Steel Plant. I was out for customer survey, to know the problem facing by customers in local region. Also I tried to find out some different marketing tactics and procedures, which will helpful for Management and customer, both.

All the information is not only collected by survey and work visit but also by discussing with different managers in marketing department of Bhilai Steel Plant. Also I have used all the relevant data which were available in Bhilai Steel Plant.

The rest of the report was done after a deep comprehensive and fullfledged study of the problem and is based on my original research and investigation.

INTRODUCTION OF BHILAI STEEL PLANT

INTORDUCTION The Bhilai steel plant was described by Late Mr. J L Nehru jewel in the crown of sail . For production of steel an MOU (memorandum of understanding) was signed with the Russian government for setting up of the Bhilai steel plant. The first phase of 1 MT was completed in 1959 and subsequently capacity was expanded to 2.5 MT and 4 MT. Five time winner of prime minister s trophy for best integrated steel plant in the country, Bhilai steel plant (BSP) is India s sole producer of rails and heavy steel plates and major producer of structural. With an annul production capacity of 3.153 mt of saleable steel, the plant also specialized in other products such as wire rods and merchant products. All saleable products of Bhilai steel plant are under the ISO umbrella as per BSP s accreditation with ISO 9001:2000 quality management system standard. Plant s plate mill, Dalli merchandized mines and rail mill have also received ISO: 14001 certificates for their environment management system.

PLANT LAYOUT

An the unit of the plant have been laid in sequential formation according to technological interrelationship, so as to ensure uninterrupted flow of in process material like coke, slag etc and to minimize the length of various inter plant connection utilities and services.

RAW MATERIALS

BSP is primarily an ore based plant. The requirement of principal of raw material except coal and manganese ore is met from the captive mines of the plant. The plant owns and manages the mechanized and manual iron ore mines, at Dalli rajhara situated about 100 km away from Bhilai and a lime stone mine at nandini about 25 km away from plant. The plant also owns quarries or hirri, Chhattisgarh (for dolo-mite), Over a million tones of minerals of mined annually from the captive mines.

SERVICES AND UTILITIES

BSP is an integrated steel plant which requires various forms of energy like electricity, fuel (solid, liquid and gaseous), stream, oxygen, compressed air, chilled water, air blast etc. Electricity power is supplied by BESCL (Bhilai electric supply company limited) a joint venture between National Thermal Power Corporation and SAIL from korba 250 km away from Bhilai. Water supply comes from a well constructed system of water works of the state government tandula reservoirs, water from nearby rivers are

brought to two huge water reservoirs ( maroda tank 1 & 2) through a well laid canal, 60 km long from BSP. The other utility like gaseous liquid and solid fuels, chilled water, steam, oxygen and compressed air are provided at plant by centralized utility services. There exist an extensive communication system at work at work place which include an auto telephone exchange, dispatch communication system, gas and fire alarm signal, yard communication and automatic

signaling and blocking system of plant, rail transport facility and shop floor loud speaker system.

MANAGEMENT

Initially BSP was under the administrative control of the ministry of iron and steel with powers delegated to the chief of the plant. Later Hindustan steel ltd. controlled the management which was formed in 19 t h January, 1954 to manage Rourkela steel plant. Bhilai steel plant becomes the constituent of Hindustan steel ltd. With the formation of steel authority of India limited on 24 t h January, 1973. In the organization of BSP, the managing director is the top most authority responsible for overall control. There are two executives directors one is for project and another is for works, with five general managers. They are in following manner:

General Manager General Manager General Manager General Manager General Manager

In charge of work Project In charge of work Finance Mines

They have under them Deputy General Manager, Astt. General Manager, General Manager, Sr. Manager and Manager. Executive Director has the most important function of the second rung, in the view of the fact that he is in the entire charge of the plant and is directly responsible for production. The Executive Director (project) has the responsibility for all expansion and constructive activities.

General Manager (Marketing Management) has the sole authority of all purchases, stores, inspection, disposal and connected activities. General Manager (Finance) is directly responsible for efficient management of monitory resources, accounting and internal audit.

THE QUALITY POLICY OF BSP

Adherence to a quality assurance management system.

Action of improvement of all concerned.

Adequate upgradation of knowledge and skill.

Achieving customer satisfaction if quality and schedule.

PRODUCT MIX OF BHILAI STEEL PLANT

Steel from BSP have always played a prominent role in functioning of ideal engineering industries, small scale steel maker, roller, foundries and forged shops, large scale fabrications, builders, the construction industries and Railways.

BSP is putting on the market a wide range of rolled products and in some of the products enjoys the status of monopoly. Bhilai has all along maintained its position as the most productive of India s integrated steel plants. Its different product-mix is as follows.

PRODUCT-MIX OF BSP :

Billets/Blooms (MM)

90, 100, 110, 150, 280,320

Slabs (MM)

195x1300, 195x1500 245x1500, 195x1250, 320x1500

Narrow Slabs (MM)

200x250/320/410, 205x325/405

Rails

45 Kg/m, 52 Kg/m, 60 Kg/m

Crossing Sleeper Bars

For Broad Gauge

Angles (MM)

50x50x5/6, 65x65x5/6/8/10, 75x75x5/6/8/10, 200x200x16/20/24

Channels (MM)

75x40, 100x50, 250x82,300x90, 400x100

Rounds (MM)

28, 32, 33, 36, 40, 42, 45, 47, 50, 53, 56, 60, 63, 67

Ribbed/ TOR Steel Bars

28, 32, 36, 40

Wire Rods

1. Plane coils

5.5, 6, 7, 8, 10

2. TMT coils

8, 10, 12

Flats (MM)

Width: 50 -120 Thick: 8 - 20

Plates (MM)

Width: 900-3200 Thick: 7.1 to 120

Pig Iron

Various foundry & Basic Grades.

BY PRODUCTS

Coke (MM)

0-10, 10-25, 0-25 & +25

Tar & Tar products

HP Napthalens, Pitch creosote oil, Dephenolised oil, Sodium phenolate, Anthracene oil, Drained naphthalene oil, Crude anthracene, Light oil

Processed Slag

Granulated Slag, Slag Aggregate

Benzol product

benzene, Toulene, Xylene, Solvent oil, Heavy crude benzol.

Hammer Plates

Ammonium Sulphate

MAJOR LANDMARKS :
Signing agreement for setting up the Plant Commencement of work at site Commissioning of Coke Oven battery no 1 Commissioning of Blast Furnace no 1 Commissioning of Power Plant no 1 Commissioning of Steel Melting Shop no 1 Commissioning of Blooming Mill 1150 stand Commissioning of Billet Mill Commissioning of Rail & Structural Mill Commissioning of Merchant Mill Commissioning of Sintering Plant no 1 Commissioning of Wire Rod Mill Commissioning of Plate Mill Commissioning of Converter no 1 Commissioning of continuous Casting shop 1 Commissioning of SMS First Turn Hearth Commissioning of Blast Furnace no 7 Commissioning of Coke Oven Battery no 9 Commissioning of Second Twin Hearth Commissioning of Third Rwin Hearth Feb 2, 1955 May 6, 1956 Jan 31, 1959 Feb 4, 1959 June 4, 1959 Oct 11, 1959 Nov 12, 1959 Dec 24, 1959 Oct 27, 1960 Feb 2, 1961 July 3, 1961 Sep 1, 1967 Mar 31, 1983 July 29, 1984 Mar 15, 1986 Sep 12, 1986 Aug 30, 1987 Mar 31 1988 jan1, 1990 June 29, 1992

AWARDS:
National Energy Conservation Award Power, Mr. S. Prabhu. 99 from Honorable Minister of

Best Pollution Control Implementation Gold Award Institute of Lal Bahadur Shastri Memorial National Awards for excellence industries. Best Performance Award to Dalli Mechanized Mines. PM s Shram Vir Award 2000 to Shri J. S. William, Sr. operator, CCS, by Hon ble Prime Minister on 4-02-02 at New Delhi. PM s Shram Bhushan Award Blast Furnace. 2001 to a group of 5 employees from

Vishwakarma Rastriya Purashkar Sep 2001.

99 to employees of the plant on 17 t h

Prime Minister Trophy Best Integrated Steel Plant Award 1992-93 1993-94 1995-96 1996-97 1997-98 National Level Coal India Productivity Award to Shri Hemant Kumar Desai, Additional Chief Industrial Engineer. 4 Collective & 7 Individual Awards for the year 1999 to BSP on Safety, Health and environment in Steel Industry.

SCOPE OF WORK
This project is dealing with one of the largest steel plant in India. Although it only concern with marketing department of Bhilai Steel Plant but it s itself a big opportunity for anyone to cover the every single corner of marketing department because Bhilai Steel Plant has vast number of employees, working in marketing department. The scope of this project is not only concentrated on marketing department of Bhilai Steel Plant but also deal with its existing industrial customers.

SCOPE OF WORK: MARKETING DEPARTMENT OF BHILAI STEEL PLANT

15 EXISTING INDUSTRIAL CUSTOMERS

WORK VISIT NOTES OF BHILAI STEEL PLANT

ACKNOWLEDGEMENT

I take this opportunity to thank all those individuals and groups without whose support this project could never have been completed.

I would like to thank our Honorable Director Mr. S. L. Joshi and project guide Prof. Mr. Rajesh Vhatkar who gave me this opportunity.

My special thanks to Mr. D. S. CHAWLA (Sr. Manager, Marketing & SP, BSP) and Mr. AYAN MISHARA (Manager, Secondary Product, BSP) without whom this project could never have been completed.

This acknowledgement can never be completed without thanking to the employees of Marketing & Strategic Planning department of Bhilai Steel Plant and all other people who have been associated directly or indirectly with my project and helped me in getting it in the present form.

DATE:

Mr. Kamal Patil

OBJECTIVE OF PROJECT

The objective of this project is to analyze the working condition in a government organization. Apart from this, other major objectives are

To Analyses secondary products.

To understand Marketing strategy of secondary products.

To Know the Sales planning for secondary products.

To Know the Distribution methods of secondary products.

To Collect the Customers Feed Back.

RESEARCH METHODOLOGY

BSP had a wide network within country. To analyze the report certain methodology were used to elaborate the topic in easy way. The design of a research study is based on the purpose of the study. Methodologies which were used are:

SAMPLING An integral component of a research design is the sampling plan. Sample size, which was taken for the research, is six departments in marketing branch of BSP.

STRUCTURED QUESTIONNAIRE Structured questionnaire was prepared and survey made with the customers of secondary product of BSP at local region.

FORMAL & INFORMAL INTERVIEW Formal and Informal interviews were made with the different managers of marketing department.

DATA COLLECTION Various data are collected from different sources. Sources of these data are various government publications, trade journal, official website of SAIL, and various publication of BSP.

MARKETING NETWORK

CENTRAL MARKETING ORGANISATION

Central Marketing Organization (CMO), one of the largest marketing networks in the country, markets mild steel products from the four integrated steel plant of SAIL. The CMO headquarter is at kolkata and the commercial directorate is located at New Delhi. A nation-wide 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 remotest corners of the country. CMO maintains its aggressive marketing efforts in order to retain market leadership by meeting customer s requirements and evolving strategies to increase sales. In order to strengthen the marketing approach and initiate product and segment specialization, CMO has been reorganized on the basis of long and flat products. Likewise, Key Account Management process (KAM) has been implemented in CMO to provide better service, quality and tailor made products to key Customer through a single windows. This is being followed by the Customer Satisfaction Index (CSI) to increase responsiveness to customer needs. Yet another significant development had been re-oriented of the sales braches and warehouses. This will enable the marketing team to concentrate on building customer relationship to provide them better service, along with the best quality. Dealer development, especially in rural areas, is being aggressively pursued by CMO to reach out to the farthest corners of the country. This wide network of authorized dealers also helps meet customers demand for steel in small quantities.

INTERNATIONAL TRADE DIVISION

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 continents. Sail s reputation as a producer of quality steel products has been established in as many as 70 countries around the globe. Notable among them are JAPAN, EGYPT, UK, ITALY, RUSSIA, SRI LANKA, BANGLADESH, TAIWAN, MYANMAR and NEPAL. Transport and shipping division (T&S) of CMO performs the important functions of ensuring proper dispatch of export material and timely import of raw materials to keep SAIL plants going.

BRACH SALES OFFICE / SALES RESIDENT MANAGERS

This office is related to the sales of the prime products of the Bhilai steel plant, which acts as an interfacing body between the BSP & Centralized Marketing Organization (CMO). The different issues related to the products and its delivery is dealt indirectly with BSP through this department. We can say it coordinates about production and dispatch in different Steel plants. CMO has got SRM offices at the following places i.e. Bhilai, Rourkela, Bokaro, Durgapur.

FUNCTION OF BRACH SALES OFFICE (BSO)

Booking of order from customers on long term and short term basis. Passing details of booking to concerned Sales Resident Managers office.

The movement plan of the products which consist all the detail related to the products quality, quantity and size are sent by this office to the plant. The meeting related to the sale of the product is done intermittently. The customer complaints are also handled by plant through this branch sales office with proper channel of meeting.

SALES & DISTRIBUTION OF SECONDARY PRODUCTS

SELLING OF SECONDARY PRODUCTS:

This involves a direct marketing process. The management of BSP in consultation with the officials of the market development and customer service department works as group for the sale of these items. There are 2 methods of selling these re-rollables defective materials.

BY FIXED PRICE SALE BY TENDER BY E-AUCTION

FIXED PRICE SALE

The re-rollable material is sold through marketing department. The percentage of material to be sold by E-auction or by marketing department depends upon the management decisions. There are different re-rollables materials coming from four different mills that can be sold. The pricing of these materials is carried out by the pricing committee depending on:

The price offered by the customers during auction sale. The quantity to be sold The approval of the managing director. The market price of the particular material. The price offered by the competitors.

BY TENDER
The secondary product which are generated while process of manufacturing the primary product is also sold by the tender option. In this way of selling the secondary product, the marketing department of secondary product releases the tender with number of quantity to be sold and the minimum price can be offered and according to the application which received against the tender notice, material sell to the particular customer.

BY E-AUCTION
E-AUCTION is the internet based selling method of secondary products. In this method, there is the online biding auction done over the company s website. Applicants can offer their price money with the particular quantity they want. Applicant can be anyone across the country and can participate in the auction. After closing the date of auction within 5 working days the final customer s name declared on the website based on the price money offered by them. They are invited for the further process of purchasing material.

PROCEDURE APPLIED FOR SALE OF SECONDARY PRODUCTS

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 Officer Letter .

About one third of the actual quantity of material to be sold during the year is offered to the actual users, subject to registration of demand. For the balance quantity to be sold at prices fixed by pricing committee, preference is given to actual uses over traders. If their giving preference to registered traders over others. 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 allotment. The amount received from the party towards advance payment and security deposited is forwarded for finance department by marketing department after recording the details in the register. Parties are allowed to visit the respective location/disposal sites and inspect the scrap offered for sale. 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 CL scrap, Rerollable, Sludge and waste products. The sale order is carried over to the next year. Based on the deposit made by the party, finance department intimates to marketing department release of requisite scrap for supply. Marketing department prepares release orders which are treated by MRD as delivery order. On receipt of release order, MRD plans number of trucks / trailors to be entertained each day, after ascertaining quantum of different types of scrap to be issued per day, number of trucks / trailors expected loading and weight facilities available etc. MRD in consultation with marketing intimates to the parties, likely date of collection so as to deploy their fleet on the dates.

Weight of each truck / trailors is taken before and after loading under strict supervision. Gate pass and other related documents are prepared by MRD to help facilitate.

REFUND OF SECURITY DEPOSITES

Party has to give an application for closing or canceling sales order to marketing department. After receiving the application marketing department prepares closing / cancellation order within three days of receipt of application and issue to all concerned agencies. Concerned department and Central Industrial Security Force (CISF) issue No Due Certificate (NDC) and send to marketing department. If NDC is not received in marketing department within 10 days, it will be considered that the concerned department has no claim on the party and marketing department takes further necessary steps accordingly. After receiving NDC from concerned departments, marketing department issues letter of refund of security to finance department. Finance department verify documents and ensure issue of cheques to party against refund of security within 7 working days.

DISTRIBUTION OF SECONDARY PRODUCT

The current procedure being adopted by Bhilai Steel Plant for the distribution of Re-rollables against the fixed price can be explained as:

Nearly 80% of the material available is offered to the actual customers / re-rollers and 20% to scrap processors and others. However, in the event of poor off take by re-roller / scrap processor, the surplus available is offered to the traders as well but to a very limited extent. The status of actual users/ re-rollers is decided on the basis of the necessary certificate issued by the Director of Industries of the state. Whenever there is surplus quantity available and the material is heterogeneous in nature, the same is sold through auction / tender on all India bases without making any distinction between the actual users and traders.

MARKETING SCENARIO
Without a perfect market goods can neither be purchased nor can it be sold. Marketing is one of the major and crucial department pillars of every organization and it is the case with SAIL.

Customer Satisfaction and quality assurance , these are the two motives of SAIL for achieving there goals and establishing there market. SAIL has a wide network across the country. It is having it s CMO for its marketing division. It s headquarter is situated in kolkata.

BHILAI STEEL PLANT is one of the most important integrated steel plants of SAIL, which is earning profits for last 45 years. It has established its position through a better service. BSP has several departments among which marketing division play a key role. Every plant has its own Branch Sales Officer (BSO) who looks upon the orders of CMO. These orders are then sent to the plant for checking the availability and production for dispatch. All departments are linked through Management Information System (MIS) from CMO to each and every division of plant.

The whole procedure of BSP for marketing is, customer send their enquiries including their requirement to CMO who looks the orders by order management system, which further send these requirement to the regional office. Regional office sends the orders according to different region to the BSO of each region. After checking of materials against TDC booklets by the BSO and marketing division of plant it is send to the customers according to the quantity demanded, with the same channel through wagons and trucks as the case may be. The copies of invoice are sent to the customers and regional office concerned which is ultimately deposited in the bank to get payment in case of credit sale.

FOR MARKETING OF DIFFERENT ITEMS THE THREE TYPE OF POLICY ADOPTED BY BSP ARE :
Memorandum of Understanding (MOU): it is an agreement signed between the plant and customer foe assured quality and quantity. Annual Booking Selling: it is an informal agreement where customer assures the plant for purchase of certain amount throughout year. Spot Selling: in this case BSP release the tender and asks for quotations to different customers.

DIFFERENT SECTIONS OF BSP

DESCRIPTION OF 2.5 MILLION SECTION :

This section deals with the marketing procedure and functions of non flatable products. These include Wire Rod Mill [WRM, merchant

Mill (MM)], Rail and Structure Mill (R & SM) and Billet and Blooming Mill (BBM). This section is headed by senior manager and his subordinates. This section has the job to look after all the stages of marketing products. This section has to play an important role in the overall management procedure of marketing department. It is an integrated part of the marketing department and contributes a lot to achieve the laid target effectively.

WIRE ROD MILL:

This unit of Bhilai steel plant was commissioned on 1967 with a production capacity of 10,000 To 12,000 tones p.a. as later on it had gone for expansion with most improve technology. Different measurement of rods i.e. plain rods, rods coiled and of varying thickness are produced in the Wire Rod Mill. The orders are placed in every three months, semi-annually, quarterly or as per the demand of the customers from CMO. On this basis the product are dispatched, if not fully met revalidated to a further period and if fulfilled then new orders are entertained.

MERCHANT MILL:

This unit of Bhilai Steel Plant was commissioned on 1961. By 1967 this unit was also undertaken for expansion with a target production capacity to part with 2.5 MT section. Some of the product of this unit is engaged with viz., Rounds, Channels, Angles, Ribbed Rods etc. some of the major users are Indian Railways, Local Industrial Units, Heavy Industrial Units and other concern. These products are mostly used while rectifying the wear and tear of heavy equipments or construction of structural in industries. The production quantity depends upon the orders placed by CMO through DP (Dispatch Program) which displays the allotment of different programs for each SAIL unit.

RAIL & STRUCTURAL MILL:

This giant unit of Bhilai Steel Plant was commissioned in1961 with 50,000 tones capacity. Later on the expansion of this unit gave an abundant production capacity of thousand tones of rails per month. From the past many years Bhilai Steel Plant has been the major supplier of rails, beams, channels and other heavy structural to the Indian Railways, Export Industry and other heavy industrial units. Bhilai Rails are in the great demand among south-east nations and middle-east countries. They have achieved high laurels excellence internationally. Since the ISO certification of Bhilai Plates, the future plans are to set up the rails on the tracks for ISO standards.

DESCRIPTION OF 4.0 MILLION SECTION:

This section of Marketing Department deals with the marketing procedures of flattable products. Flattable products viz., plates of varied dimensions, the major functions of this section is performed by

CMO which assign the program to his section. The programs are assigned bi-monthly, quarterly, half- yearly or annually according to the demand. This section is a division of Marketing Department of BSP, it is headed by Senior Manager and having a strength of 25-30 subordinates. Marketing functions of both production units are looked after by this section. The production units are :

STEEL MELTING SHOP - II (SMS - II)

From SMS

II the required steel either mild or special as per

specifications required is supplied to Plate Mill. Hence forth there is a close link between these two units. Any failure in the supply of steel to Plate Mill will hamper the production of plates which is the major contributor to the profits on sale.

STEEL MELTING SHOP - II (SMS - II)

This shop was commissioned on 1984 with a production capacity of 4.0 mt steel, about 3.16 mt of saleable steel is extracted from 3.25 MT of ingot steel & the remaining as core and by products out of

these 3.16 MT of saleable steel some ratio quantity will be special steel and the rest mild steel on treatment. Plates of different measurement as per demand are produced from mild steel and special steel. Special steel plates are mostly supplied to key customers and exported. Core materials and by- products which can be used to produced other products are supplied to concern production unit. Non-usable viz., Fly ash, Slag, Iron Fillings etc. are dumped out and sold in the local market.

PLATE MILL

This shop was commissioned on with a production capacity of approximately 4.0 MT plates per annum. This mill had brought high laurels for Bhilai Steel Plant. With its maximum production capacity and products of excellent quality it has earned ISO 9001-2000 certification. This unit is among of the production departments in the BSP which has fully computerized operations. Before the production of plates, it is formed out of thick slabs which are produced with crude steel. The slabs are exposed to necessary treatment of required composition, quality, and dimension. Going through all these process, finished plates are finally produced.

DESCRIPTION OF SECONDARY SALES SECTION

Secondary sales section started functioning after the commissioning of Bhilai Steel Plant. This section controls the marketing of core products and by- products. These products continuously evolve out as no separate productions are made. Some of the by-products viz. slags; fly ash, coke, iron scrap, steel scrap, iron fillings and cuttings etc. are continuously produced out. The potential market is spread out in Maharashtra, Andhra Pradesh, Madhya Pradesh and Chhattisgarh. This section also functions a responsible role in selling out these by-products in the ideal market and some far placed industries too. Some of the potential buyers of these products are Cement Industry, chemical Industry, Fertilizer Manufacturing units and some engineering and Fabrication units. Some of the products are dumped in huge amount as such this section holds auction sale for needy customers on spot prices. There is good demand for coke among the other local industries, engaged with production of industrial products including Railways.

MARKETING DEPARTMENT
The marketing of prime products of all the steel plants of SAIL is handled by the CMO (Central Marketing Organization). The marketing department of BSP is entrusted with the job of co-ordination between the CMO and the plants as well as the marketing of secondary products and by products for ease of functioning; the department is divided into various sections.

A. MARKETING AND STRATEGIC PLANNING

Handling of Customer Complaints: in case of any complaint by customer. The complaint is sent to GM and the particular mill. The CMO has an application engineer group for commercial settlement which inspects the material and if found defective; adjustments are made in the payments or the material is taken back. If the quantity of goods is large, then a plant also inspects the goods.

Customer Feedback : Customer feedback is taken by this section on a periodic basis in the form of customer satisfaction feedback reports. A four point feedback is taken for increasing market share and for customer retention. The basis pointers of the report are past performance, sector growth, financial performance and purchases from other suppliers of steel. For major customers, there is a Key Accounts Manager , who handles them. This is done to provide a single window service to these customers

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

Training: This section also overviews the training of new recruits, summer trainees in the marketing department.

MIS reports

Product Development: The Management Research Group at CMO (kolkata) studies the market demand and supplies, feasibility for which is checked at the plant and furthered for approval.

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

Audit Applies : This division also coordinates the various audits that are undertaken.

B. EXPORTS
The International Trade Division of CMO is the main body that handles exports of steel in the SAIL. BSP has been a major exporter in the past. Rails have been exported to over 50 countries. Currently, plates constitute the major exports item. Some semi finished goods, light structural and wire rods are also exported. The procedure of exports is as follows :

The International buyer sends an enquiry to the ITD for the availability of goods. This is sent to the plant for checking if the asked grades and dimensions are feasible.

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

The ITD gives a contract to BSP in the form of a work order which is processed here and sent to the mills for production.

After production of goods a DISPATCH advice is sent to the production department, after which the goods are certified and tested. The goods are usually sent to Vizag for export. The plant gets exemption from sales tax for goods meant for exports.

At the port the various formalities are completed relating to :

i. ii. iii. iv.

Export license GR form Marine insurance Bill of loading (which gives possession of goods to the shipping company).

After receipt of goods, payment is received through the bank. The SAIL overseas account is at SBI kolkata.

COAL CHEMICALS
Ammonium sulphate Benzol products Crude tar and tar products

Overall there are 18 major products of which 3 products i.e. DPO, DNP and HB are sold only to limited customers. Till 1999, the sale of coal chemicals was handled by the CMO. The production of Benzol is 1000 tones while the storage capacity is only 300 tones. Therefore for timely sale of products, sale of coal chemicals are places under the jurisdiction of the individual plants.

PROCEDURE OF SALE :
By February, the availability for the next financial year is estimates.

A list of all the customers of coal chemicals is prepared and the customers intimate the section about their requirements.

According to the requests submitted, the various customers are told the quantities which will be provided to them.

To buy a product, a security has to be deposited.

The buyers arrange transport.

In case of low sales volumes, to ensure timely sale, products are also sold through MOU. The advantages of signing MOU are that the quantity of supply is assured and at the end of the year a 1% discount is given on the total sale.

Other methods used for sale are auctions (through www.metaljunction.com) and tenders.

C. SECONDARY PRODUCTS AND BBM :

Some of the secondary products are BF slag, defective, refractory bricks, flue dust, scrap rolls etc. the sale of secondary products is done by floating tenders and forward auction. Due to surplus capacity of blooms and billets, they are sold in the market as semi finished products.

D. RSM, MM AND WRM :

All these mills are producers of prime products; therefore the sale of these products is overseen by the CMO. The procedure for booking of orders is as follows:

The customer contacts the nearest BSO office and place orders.

The order is sent to the CMO which sends it to the plant for checking availability and other parameters.

A contract is signed with the customer for the supply of goods which gives all the details of the products, dimensions, place and mode of dispatch etc.

After the goods have been produced, they are transported to the stockyard and the CMO asks the customer to collect the goods after payment of the bills.

E. SALES RESIDENT MANAGER :

There are four SRM s located at the four integrated steel plants. The SRM acts as an interface between the CMO and the steel plant. The roles of the SRM are:

To check the availability of materials in the plant and to oversee the increase in production.

To make the final rolling plan.

To dispatch materials as per orders

To prepare demand forecast every month.

SECONDARY PRODUCT

IN BHILAI STEEL PLANT, THE FINISHED PRODUCTS ARE CATEGORIZED IN TO THREE PART.

PRIME PRODUCTS: These are actual products which are originally produced for e.g. Blooms, channels, rounds, angles, TMT bars, wire rods, rails, structure etc.

BY PRODUCTS: These products are not originally produced by Bhilai Steel Plant, but are the outcomes while producing the prime products.

SECONDARY PRODUCTS
This is the defective or rejected materials due to improper mixing of chemicals components or fails to meet the optimum requirements. Scrap generated inside Bhilai Steel Plant is termed as secondary products. The secondary products use here is ferrous materials generated from various production unit which can either suitably be used for remelting to produce iron and products or offered for sale if rendered surplus in the production process, for e.g. Defective Heavy Blooms, Defective Rails, Rail cutting, Rod cutting, scrap etc.

DETAILS OF SECONDARY PRODUCTS:

Defective Heavy Blooms. Defective Billet / Billet cutting.

Defective slabs. Plate Mill side shearing. Defective Rails. Rail cutting. Rod cutting. Plate cutting. Defective plates. Rolled slab from Blooms. Slags. Coke fraction

COAL CHEMICALS.

Benzene. Naphthalene. Xylene. Solvent oil. Pitch. Sodium Phenotate. Wash oil. Drained Naphthalene oil (DNO) De penalized oil (DPS)

Heavy Benzol (HB) Toluene. Steel Bottom oil Light creosote oil Heavy creosote oil Antracence oil

DETAILS OF SCRAP AND THEIR HANDLING

PCM SCRAP: This is the scrap generated in the pig casting machine and consists of splashing PCM runner, fires and weight range of up to 1.0 tone per piece.

BF RUNNER SCRAP: Generated in blast furnace cast houses in the form of runner jams etc. The maximum weight per piece is up to 2 tones. This scrap contains certain amount of slag.

UNPROCESSED STEEL SKULL SCRAP: Generated in steel melting shops in slag cups and metal ladles. As the skulls are quite broad in dimension, some of them are required to be cut into sizes suitable for loading into trucks. These skulls are in two weight ranges: 7 to 15 tones. Above 15 tones.

SBIM SCRAP: This consists of semi broken ingot mould and bottom plate scrap and is in weight range of up to 2 tones per piece.

TURDISH SKULLS: This is generated at bottom of turdish during pouring of steel in continuous casting. The weight of skull varies 2 to 3 tones.

CAST CHILLS: At continuous casting, in case of emergency, the extra metal ladle is pour into containers and this is termed as cast chills. It is rectangular in shape. The weight of each piece range from 7 to 25 tones.

CI SKULL SCRAP: These are skulls generated in ladle repairs shop and blast furnace processing Shop. The skull contains some slag. Bigger skull require cutting for accommodating in trucks.

COBBLED SCRAP: The cobbled scrap arises from wire rod mill and includes some rejected coils and binding wires also.

REJECTED ROLLS: Cast iron, rejected steel rolls.

MILL CUTTING: Rail and structure mill cutting, Billet cutting, Bloom cutting, Merchants mill cutting, Plate and shearing, rejected slabs cutting, misrolled slabs, wire rod cutting are included in the type.

SECONDARY PRODUCTS CAN BE UTILIZED IN TWO WAYS:

By Re-rolling of secondary products. By selling of secondary products.

BY RE-ROLLING OF SECONDARY PRODUCTS.

NAME OF THE MACHINERIES: The steel Re-rolling mill requires the following machineries to produce re-rollable materials from the mild steel scrap:

Main motor connected with pulley and V- Delts. Fly- wheel as per the requirement and size of the mill. Pinion gear Box consisting of three gears. Five stands which are situated in the shed for rolling of hot scrap up to the finished product.

Furnace the size of the furnace varies from 30 ft. To 40 ft. in length, 6 ft. width and 8 ft. height with a coal chambers or oil fired chamber.

MANPOWER REQUIREMENT:

In each re-rolling mill a foreman is very necessary to maintain the machines and to produce a good quality product. To assist him there should one section man and one fitter.

Furnace requires one worker for pushing the material inside the furnace two worker for pulling out the rolls.

From stand 1 to stand 5 nine worker are required for pushing the metal in the rollers. They work for only four hours out of eight hour. So about eighteen workers are needed to work on one shift.

PROCESS OF MANUFACTURING:

The scrap for the re-rolling is generally from BSP railways. These materials are not directly re-rollable so first it is required to make a re-rollable and of proper size as per the requirement of the finished products. In the recent years a number of foundries and re-rolling mills came into existence throughout the country. These small scale sector need the Secondary product as input, raw material for their production. The company has engaged in educating them how to use secondary products for different kind of end products for consumption. This material is then continuously passed from one stand to other unit till finished product comes out. The rolls are provided with the groove as per the requirement of the finished products.

PRODUCTS FOR THE RE-ROLLING MILLS

Over the year a number of re-rolling mills\ steel processing mills and trading companies have come up in and around Bhilai. The raw material need of these mills being met by the plant and the availability of the re-rollable have increased the re-rolling mills to develop very fast. The plant extends all type of facilities and assistance to these small scale unites which in turn give scope for more employment. M.S .Squares, Angles, Channels, Flats, Rounds, Z-Sections, USections, T-Sections. Cold Twisted Deformed (C.I.D) TOR Steel.

Beams.

Strips. Hoops. Rectangular Bars. Railway Sections. Window Sections. Pipes.

NECESSITY OF SELLING THE SECONDARY PRODUCTS

The net sales realization from all the secondary products, by products and co- products of Bhilai Steel Plant is around Rs. 600 crores which Is quite more than many of the big industries. Out of which the steel scrap arising itself bring about Rs.150-200 crores of money every year. Re-production of main products these secondary products requires remelting it again for the require composition of the materials as per the desired specification. By selling it to the different mill/ traders/ processors the plant gets around Rs.4000 per tone of direct profit then by reproducing it to the main product. By using these materials traders/ processors/ re-rollers makes raw materials for different finished product, which also making huge profit and plant is not losing anything. Profit is the aim of the every business, and when the re-utilization of these products for the finished products proves to be cost lies, the management plans to sell it to the local market.

SYSTEM OF REGISTRATION OF DEMAND IN BHILAI STEEL PLANT

Marketing department of BSP sells homogeneous steel at fixed price.

The procedure of registration is as follows.

Preference for sale of secondary products is given to local parties. Secondary products are sold for trade. Sale of material made to re-rolling mills and scrap processing units. For sale of secondary products offer letter is issued to DIC

party offering quantity, formality is submission of Registration Certificate

Final allocation to the party is made on basis on their past performance.

PROCESS FLOW CHART: BHILAI STEEL PLANT

LIMITATION
There are certain limitations I had faced during my summer project, which are

IT S VERY HARD TO TAKE APPOINTMENTS OF EVERY MANAGER OF DIFFERENT DEPARTMENT DUE TO THEIR BUSY SCHEDULE.

CUSTOMERS ARE SCATTERED OVER A LARGE AREA THEREFORE HARD TO CONTACT.

CUSTOMERS ARE RELUCTANT TO PREVAIL THEIR INTERNAL INFORMATIONS.

CONCLUSION

BSP has faced large ups and downs in terms of their productivity and profitability, in these 46 years. Its continuous improvement in terms of quality is one of the flagships for the SAIL. Bhilai s contribution in terms of materials, money and men has been commendable. BSP has faced the problem of coal products in last year but still it has maintained its productivity as per the plans and schedules. Believing, the work to be completed with the help of teamwork. BSP has gained a huge net profit of Rs. 2148 crore in the year 2004 -2005. Thanks to modernization and maintenance that has changed the fortune of BSP. With the new challenges, changing market and environment BSP has sufficient capability to look further for the future to gain profits. It is backed up by the chief asset and has a strong and capable team who has a caliber to face any obstacles. BSP has implemented numerous steps for strengthening its fundamentals such as continuous cost reduction, technology improvement, lowering borrowing level, persistent efforts to bring about a positive attitude towards organizational goal among employees through planned communication, training, optimum utilization of resources. Commenting on the cost reduction strategy of the organization Managing Director Mr. Rajendra Prasad Singh says, As the steel horizon brighten up after a long period of bloom, Bhilai must make the most of it and emerge as a leader. A true leader has to be alert and proactive all the time formulating strategies to Out perform the competitors cost

reduction is one of the such strategies that can give us that competitive edge.

It is the renowned efforts of the BSP organization which has success in economizing usage, optimizing resources eliminating wastage of all kinds, concentrated on growth quality product and service which ultimately helped in cost of product to earn great amount of profit every year. Bhilai rededicates itself to the service of the nation, whose hand child it is. A new and glorious era leading to the gold has just begun and horizon is bright.

SUGGETION

As BSP itself one of the most recognized and leading steel industry in India. Its products are of high quality and it is sold not only in the domestic area of the country but its products are also exported to foreign countries. Keeping these in view it is not possible to give suggestion about BSP as it is one of the leading steel producers of country. But I would like to give suggestion to BSP only that it should increase its customer s base and market in the domestic area also. Secondly, BSP is major contribution to export is Rail Mill products, so it should also pay his attention to other products also. On the other hand, Marketing of Secondary products needs some attention from top level management. This department is producing great amount of revenue every year but again there are some problem facing by local customers. As per the survey on various consumers of secondary product at local area it shows that BSP s has some drawback in its secondary product s marketing strategy. As per feedback from various local customers of secondary product, they think that BSP is not giving the proper attention to local customers and ignores their needs. Apart from that refund policy of secondary product is also not mature; it takes very long time to refund the excess money, given by the customers. Some customers are not satisfy with the E-Auction policy, they think that the final declaration of selected customers announce in 5 days after the biding close, which is against the rule of E-Auction method. Even some customer thinks there is partiality exist in selection of customer in Tender & E-Auction method as they are not selected many times even after biding high prices.

So I would like to suggest marketing department of secondary product that they should take corrective steps against all above problem faced by local customers and gives an extra attention to local customers.

Steps to Improve the Customer Satisfaction in Local region (under 100 KM radius)

Uniform Pricing Policy

Tighten the Refund Method

Regular Feed Back System

Reducing the No. of Day of declaring Final Customer in EAuction method.

Increase the daily quota of sale. (which currently is 200 tones)

BIBLIOGRAPHY

SAIL News Journals Annual Performance Plan 2004 2005

Information collected by Marketing Department. Work visit notes of BSP Data collected by different customers. Official website of SAIL : www.sail.co.in

QUESTIONNAIRE

What the total num. Of employees working in your company? 1. Less than 50 2. 50 100

3. more than 100

What is the annual requirement of input materials (raw) in tones? 1. Less than 500 tones 2. 500 1000

3. more than 1000

From last how many years your company purchasing materials from BSP? 1. Less than 3 years. 2. 3 7 years

3. more than 7 years Categorized the input materials purchased from BSP and corresponding quantity? 1. Billets & Blooms 2. Wire rods 3. Slabs 4. Scraps 5. Coal Chemicals

Is your company purchase material from other organization if yes then type of materials and quantity? 1. Yes 2. No Whether the company is engaged in other business apart from steel, if yes then what is that? 1. Trading 2. Distribution 3. Production Whether the company prefers purchasing material through fixed price / tender or forward auction? 1. Fixed Price 2. Tender 3. Forward auction Difficulties encountered by the company in conducting business with BSP? 1. Yes 2. No Major drawback of the BSP s sale policy in sale of secondary product and suggestion for any improvement you want? 1. Partiality 2. Ignorance 3. Pricing policy

Apart from purchasing steel what are other input expenses are incurred by your company? 1. Electricity 2. Water 3. Gas 4. Chemical 5. All of above

Whether the end product is sold through retail outlets / direct sold to end customer, i.e. marketing network of the organization? 1. Retail outlet 2. Direct sold 3. Auction method Whether the company is engaged in trading also, if yes, then what percentage of steel purchased from BSP is used for production and what percentage is for trading? 1. 10 % to 25% 2. 25% to 50% 3. More than 50%

Long term plan of the company, if any (like expansion, capacity enhancement, shifting over to other input materials etc.)? 1. Yes 2. No

List of the end products manufactured and cost of production (rs/tonne) of each end product? Selling price of each end product over the past 2 years?

Company prefers purchasing material through fixed price, tender or forward auction?

EAuction

Tender

Fixed Price

Fixed Price Tender E-auction

62% 20% 18%

How many customers faced difficulty during transaction with Bhilai Steel Plant.

YES

NO

No difficulty Yes

71% 29%

Major drawback of BSP s sale policy in sale of secondary products, customers thinks.

Pricing policy

Partiality

Ignorance

Partiality Ignorance of local customers Pricing policy

57% 34% 9%

Categorized the input materials purchased from BSP and corresponding quantity?

Coal Chemicals

Billet & Blooms Slabs Wire Rods

Scraps

Coal Chemicals Billets & Blooms Slabs Wire Rods Scraps

9% 8% 15% 12% 56%

Whether the end product is sold through retail outlets / direct sold to end customer, i.e. marketing network of the organization?

Retail Outlet

Auction Method

Direct Sold

Auction Method Retail Outlet Direct Sold

2% 22% 71%

Whether the company is engaged in other business apart from steel, if yes then what is that?

Trading Distribution Production

Trading Distribution Production

11% 12% 77%

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