This 3 sentence summary provides the key details about the document:
The document discusses the Indian steel industry, describing its position as the 8th largest steel producer globally, profiling major players like SAIL, Tata Steel, and JSW Steel. It covers basic steelmaking processes, industry trends in raw materials, demand and supply dynamics, key growth drivers and the export-import scenario. The report analyzes the competitive positioning and future outlook of major companies in light of increasing investments in the domestic industry.
This 3 sentence summary provides the key details about the document:
The document discusses the Indian steel industry, describing its position as the 8th largest steel producer globally, profiling major players like SAIL, Tata Steel, and JSW Steel. It covers basic steelmaking processes, industry trends in raw materials, demand and supply dynamics, key growth drivers and the export-import scenario. The report analyzes the competitive positioning and future outlook of major companies in light of increasing investments in the domestic industry.
This 3 sentence summary provides the key details about the document:
The document discusses the Indian steel industry, describing its position as the 8th largest steel producer globally, profiling major players like SAIL, Tata Steel, and JSW Steel. It covers basic steelmaking processes, industry trends in raw materials, demand and supply dynamics, key growth drivers and the export-import scenario. The report analyzes the competitive positioning and future outlook of major companies in light of increasing investments in the domestic industry.
A STUDY ON THE PRICING AND SALES STRATEGY OF SECONDARY
AND BY-PRODUCTS AT SAIL (BOKARO)
SUMMER PROJECT REPORT Submitted to Punjab Polytechnic College In partial fulfilment of the requirement for the award of POST GRADUATE DIPOMA I! MA!AGEME!T "PGDM# $%%&'$%(( BY !ITIS) *UMAR SI!G) ROLL NO: P09128 Raa!iri Bu"ine"" #$hool Raa!iri %alle& 'o$hi( )82 0*9 Page 1 P+oject e,ecuted at SAIL "A Go-e+nment o. India Ente+/+i0e# 1o2a+o Steel Plant 1o2a+o Steel City3 Di0t' 1o2a+o "Jha+2hand# +nder the !uidan$e of M+4 Go-ind 1a+man Junio+ Manage+ "Ma+2eting# "P+oject Guide# 1o2a+o Steel Plant Jha+2hand M+4 *4 Tha+u 1enny "5aculty Guide# Rajagi+i 1u0ine00 School *ochi3 *e+ala Page 2 DECARATIO! I, -r. NI/I#0 '+-1R #IN20, the under"i!ned, here3& de$lare that the proe$t wor4 titled the Pricing and Sales strategy of Secondary and by-products at Bokaro Steel Plant i" 3onafide wor4 underta4en 3& me at #1IL 5Bo4aro6 in Partial fulfilment of the re!ulation" of Raa!iri Bu"ine"" #$hool for the award of the P27-. I further de$lare that no part of thi" report ha" 3een repli$ated from an& other Proe$t wor4, arti$le or 3oo4. Pla$e: Bo4aro "teel 8it& Page 3 7ate: 5NI/I#0 '+-1R #IN206 Ac2no6ledgement 1n endea9or i" not $omplete and "u$$e""ful till the people who ma4e it po""i3le are !i9en due $redit for ma4in! it po""i3le. I ta4e thi" opportunit& to than4 all tho"e who ha9e made the endea9or of mine "u$$e""ful for me and for all. :ir"t and foremo"t I am 9er& than4ful to all the offi$er" of Bo4aro "teel plant who reall& helped a lot and !uided me throu!hout m& trainin! "e""ion, without their help I would ha9e 3een una3le to $omplete m& proe$t. /he"e people reall& 3een 4ind enou!h in pro9idin! me all 4ind of a9aila3le data and information. I would li4e to than4 to M+4 A4J4 *AC))AP "DGM3 STORE#3 *4*4 SA!7A "AGM3 1PP#3 M+4 !4 *)AS!O1IS "S+4 Manage+3 SSD#3 M+4 A4*4 MIS)RA "AGM3 S 8 C#3 M+4 C4 SRI*A!TA "DGM3 Ma+2eting# and M+04 MEE!A *AMA "S+4 Manage+3 Ma+2eting# and I mu"t pa& "pe$ial than4" to M+4 GO9I!D 1ARMA! "J+4 Manage+3 Ma+2eting#. 1ll are from Bo4aro #teel Plant. I e;tend m& "in$ere than4" to -r. '. /haru Benn&, :a$ult& -em3er, Raa!iri Bu"ine"" #$hool, 8o$hin for ha9in! "pared hi" 9alua3le time with me and for all the !uidan$e !i9en in e;e$utin! the proe$t a" per requirement". #o, 3e ta4in! a !reat opportunit& to than4 tho"e entire people who help throu!hout m& proe$t. I al"o e;pre"" m& than4" to the offi$er" and "taff of the trainin! in"titute, Bo4aro #teel Plant. Page 4 !ITIS) *UMAR SI!G) CO!TE!TS PAGE Page 5 CHAPTER 1 EEC!T"#E S!$$AR% Page 6 (4 E,ecuti-e Summa+y /hi" "tud& in9e"ti!ate" <the Pricin !n" S!#e$ $tr!te% &' Sec&n"!r% !n" (%- )r&"*ct$ !t B&+!r& Stee# P#!nt, /hi" "tud& i" done for #1IL= B#L
/he pre"ent "tud& wa" underta4en to "ee the mode of "ale and pri$in! method" of Seconda+y P+oduct of #1IL. -ar4etin! 7epartment i" the newe"t !ene"i" from the #1IL and attempt" to rea$h their where no $orporate ha" e9er 9entured "o far. /he "ur9e& wa" $ondu$ted in Ma+2eting De/a+tment and Sale0 Coo+dination de/a+tment4 I wa" to find how au$tion", fi;ed pri$e and tender" are u"ed for mar4etin! purpo"e B#L. %ariou" "tep" in9ol9ed are a" follow". /o 4now a3out the e(au$tion" of mar4etin! department. 0ow the& u"e thi" te$hnique and 90> mar4etin! and "ellin! i" done throu!h au$tion and re"t will 3e ta4en throu!h fi;ed pri$e "ellin! and tender".
7ata were mainl& $olle$ted from mar4etin! department of B#L. B#L i" the lar!e"t #teel manufa$turin! "e$tor of India and i" top ran4ed in the !lo3al fortune ?00 $ompanie". 7urin! m& trainin! I had to find out mode of "ale of "e$ondar& produ$t" of B#L. Primar& produ$t" are "old 3& 8-O, 7elhi. I pa""ed throu!h 9ariou" "ta!e" of pro3lem" and diffi$ultie" to a$$ompli"h the ta"4 of proe$t wor4 3ut it wa" a pri9ile!e for me to ta4e thi" opportunit& a $hallen!in! wor4 to "tud& and Page 7 o3"er9e @pri$in! and "ale" "trate!& of "e$ondar& and 3&(produ$t" in B#L@, whi$h i" a unit of #1IL. Bo4aro #teel Plant re$o!niAe" that leader"hip i" e""ential for "ur9i9al in $ompetiti9e en9ironment= 8u"tomerB" "ati"fa$tion li4e qualit& i" a ourne& and not a de"tination. It i" e""ential that e9er&one in the $ompan& ha9e a $lear under"tandin! of what $u"tomer "ati"fa$tion mean" if the plant aim to a$hie9e leader"hip in $u"tomer "ati"fa$tion. Chile impro9ed $u"tomer "ati"fa$tion i" ne$e""ar& for en"urin! pro"perit& of the $ompan& mu"t al"o 3e re$o!niAed that a3ilit& of the $ompan& to "ati"f& it" $u"tomer" would depend on it" a3ilit& to $ontinuou"l& impro9e it" profit and !rowth. /he 3a"i$ o3e$ti9e 3ehind the "tud& $arried out 3& me i" to "tud& the maor $ontri3ution of #e$ondar& produ$t to total "ale", whi$h i" pre(determinin! for the "u$$e"" of the $ompan&. B& "ellin! the #e$ondar& produ$t in lo$al mar4et $ompan& i" earnin! profit". It i" al"o $reatin! an emplo&ment in "mall "$ale indu"trie" and de9elopin! the e$onom&. Page 8 CHAPTER 2 INDUSTRY PROFILE Page 9 India i" the ei!hth lar!e"t produ$er of $rude "teel in the world, a$$ountin! for *.*D> of the !lo3al "teel produ$tion in 200?. IndiaE" fini"hed $ar3on "teel produ$tion !rew to rea$h an e"timated F2.)*mmt in 200?(0)= primar& produ$er" alone $ontri3uted a3out *8> wherea" "e$ondar& produ$er" $ontri3uted the re"t. Cith referen$e in $han!e" in e$onom& Indian "teel indu"tr& i" poi"ed for ma""i9e e;pan"ion. 7ramati$ $on"umption !rowth o9er the la"t few &ear" ha" "timulated enormou" e;pan"ion plan", fa$ilitated 3& a relati9el& une;ploited iron ore raw material 3a"e. India i" now 3ein! hailed a" the new 8hina, where $rude "teel produ$tion "oared from le"" than 100m tonne" in 199? to o9er F00m tonne" in 200)./hi" report fo$u"e" on detailed "tud& a3out the Indian #teel Indu"tr&. #teel 3e$ame an inte!ral part of de9elopment. It di"$u""e" 3a"i$ "teel manufa$turin! pro$e""e" li4e Bla"t :urna$e and, Gle$tri$ ar$ :urna$e, indu"tr& 9alue $hain with a "pe$ial referen$e to maor raw material trend" and pri$e trend" of "teel produ$t". 7emand H"uppl& d&nami$" ha" 3een di"$u""ed alon! with 4e& !rowth dri9er" and G;port(Import "$enario. It al"o tal4" a3out I""ue" I $hallen!e" of the "teel indu"tr&, mer!er" and a$qui"ition", !o9ernment poli$ie" and re!ulation". /op 10 Leadin! Pla&er" in "teel Indu"tr& ha9e 3een profiled namel& #teel 1uthorit& of India 5#1IL6, /ata #teel, G##1R #teel and J#C #teel in thi" report and anal&Aed on the 3a"i" of finan$ial and operational performan$e and $ompare" their 8ompetiti9e Po"itionin! alon! with future outloo4 in the li!ht of in$rea"in! trend in in9e"tment" in the dome"ti$ indu"tr& .#teel Indu"tr& in India i" on an up"win! 3e$au"e of the "tron! !lo3al and dome"ti$ demand. IndiaB" rapid e$onomi$ !rowth and "oarin! demand 3& "e$tor" li4e infra"tru$ture, real e"tate and automo3ile", at home and a3road, ha" put Indian "teel indu"tr& on the !lo3al map. 1$$ordin! to the late"t report 3& International Iron and #teel In"titute 5II#I6, India i" the "e9enth lar!e"t "teel produ$er in the world. Cith referen$e to de9elopment whi$h re9i"ed Indian infra"tru$ture, the ori!in of the modern Indian "teel indu"tr& $an 3e tra$ed 3a$4 to 19?* when a $ontra$t for Page 10 the $on"tru$tion of an inte!rated "teelwor4" in Rour4ela, Ori""a wa" "i!ned 3etween the Indian !o9ernment and the 2erman $ompanie" :ried 'rupp und 7ema! 12. /he initial plan wa" an annual $apa$it& of ?00,000 tonne", 3ut thi" wa" "u3"equentl& rai"ed to 1 million tonne". /he $apa$it& of Rour4ela #teel Plant 5R#P6, whi$h 3elon!" to the #1IL 5#teel 1uthorit& of India Ltd.6 !roup, i" pre"entl& a3out 2 million tonne". 1t a 9er& earl& "ta!e the former +##R and a Briti"h $on"ortium al"o "howed an intere"t in e"ta3li"hin! a modern "teel indu"tr& in India. /hi" re"ulted in the #o9iet(aided 3uildin! of a "teel mill with a $apa$it& of 1 million tonne" in Bhilai and the Briti"h(3a$4ed $on"tru$tion in 7ur!apur of a foundr& whi$h al"o ha" a million tonne $apa$it&. /he Indian "teel indu"tr& i" or!aniAed in three $ate!orie" i.e., main produ$er", other maor produ$er" and the "e$ondar& produ$er". /he main produ$er" and other maor produ$er" ha9e inte!rated "teel ma4in! fa$ilit& with plant $apa$itie" o9er 0.? m/ and utiliAe iron ore and $oalK!a" for produ$tion of "teel. /he main produ$er" are /ata #teel, #1IL, and RINL, while the other maor produ$er" are G##1R, I#P1/ and J%#L. /he "e$ondar& "e$tor i" di"per"ed and $on"i"t" of: 516 Ba$4ward lin4a!e from a3out 120 "pon!e iron produ$er" that u"e iron ore and non($o4in! $oal, pro9idin! feed"to$4 for "teel produ$er"= 526 1ppro;imatel& )?0 mini 3la"t furna$e", ele$tri$ ar$ furna$e", indu$tion furna$e" and ener!& optimiAin! furna$e" that u"e iron ore, "pon!e iron and meltin! "$rap to produ$e "teel= and 5*6 :orward lin4a!e with a3out 1,200 re(roller" that roll out "emi" into fini"hed "teel produ$t" for $on"umer u"e. St+uctu+al :ea2ne00e0 o. Indian Steel Indu0t+y 1lthou!h India ha" moderniAed it" "teelma4in! $on"idera3l&, howe9er, nearl& )> of it" $rude "teel i" "till produ$ed u"in! the outdated open(hearth pro$e"". La3our produ$ti9it& in India i" "till 9er& low. 1$$ordin! to an e"timate $rude "teel output at the 3i!!e"t Indian "teelma4er i" rou!hl& 1FF tonne" per wor4er per &ear, wherea" in Ce"tern Gurope the fi!ure i" around )00 tonne". Page 11 India i" defi$ient in raw material" required 3& the "teel indu"tr&. Iron ore depo"it" are finite and there are pro3lem" in minin! "uffi$ient amount" of it. IndiaB" hard $oal depo"it" are of low qualit&. In"uffi$ient frei!ht $apa$it& and tran"port infra"tru$ture impediment" too hamper the !rowth of Indian "teel indu"tr&. St+ength0 o. Indian Steel Indu0t+y Low la3our wa!e rate" 13undan$e of qualit& manpower -ature produ$tion 3a"e Po"iti9e "timuli from $on"tru$tion indu"tr& Boomin! automo3ile indu"tr& Outloo2 /he outloo4 for Indian "teel indu"tr& i" 9er& 3ri!ht. IndiaB" lower wa!e" and fa9oura3le ener!& pri$e" will $ontinue to promi"e "u3"tantial $o"t ad9anta!e" $ompared to produ$tion fa$ilitie" in 5Ce"tern6 Gurope or the +#. It i" al"o e;pe$ted that "teel indu"tr& will under!o a pro$e"" of $on"olidation "in$e indu"tr& pla&er" are en!a!ed in an unfettered ru"h for "$ale. /hi" i" e9ident from the re$ent a$qui"ition of 8oru" 3& /ata. /he deplo&ment of modern produ$tion "&"tem" i" al"o ena3lin! Indian "teel $ompanie" to impro9e the qualit& of their "teel produ$t" and thu" enhan$e their e;port pro"pe$t". Page 12 2.1COMPANY PROFILE #teel 1uthorit& of India Limited 5#1IL6 i" the leadin! "teel(ma4in! $ompan& in India. It i" a full& inte!rated iron and "teel ma4er, produ$in! 3oth 3a"i$ and "pe$ial "teel" for dome"ti$ $on"tru$tion, en!ineerin!, power, railwa&, automoti9e and defen"e indu"trie" and for "ale in e;port mar4et". 7urin! "tru!!le for independen$e, Pt. Jawaharlal Nehru, our fir"t Prime -ini"ter, had a 9er& $lear 9i"ion a3out the role of #teel in the de9elopment of our $ountr&. 1lthou!h /1/1 Iron I #teel 8ompan& 5/I#8O6 ha" 3een Page 13 e"ta3li"hment in 190D mar4in! the 3e!innin! of Indian #teel Indu"tr& followed 3& Indian #teel 8o. 519186, the& were too "mall to meet the de9elopment requirement" of a 3i! $ountr& li4e our". /herefore, in the 1 "t Indu"trial Poli$& Re"olution of the 2o9t., "oon after independen$e, 2o9t. de$ided to e"ta3li"h #teel Plant" in Pu3li$ #e$tor. 0owe9er, wor4 $ould 3e "tarted at fa"t pa$e onl& in 19?F, when 0indu"tan #teel Ltd., wa" formed and three #teel Plant" of 1 -/ $apa$it& ea$h, were e"ta3li"hed with pro9i"ion of further e;pan"ion at Bo4aro, Rour4ela and 7ur!apur with a""i"tan$e from +##R, Ce"t 2erman& and +.'. re"pe$ti9el&. /o impro9e the fun$tionin! of #teel Indu"tr&, 2o9t. de$ided to form a holdin! $ompan& durin! 19D2, whi$h wa" named a" #teel 1uthorit& of India Ltd., 5#1IL6 and the "ame wa" in$orporated on Januar& 2F, 19D*, with an authoriAed $apital of R".2000 $rore". #1IL wa" formed 3& re!i"tration of a $ompan& under the $ompanie" 1$t and not 3& the 1$t of Parliament. 2o9t., de$ided to a3andon the holdin! $ompan& $on$ept in 19D8 and a 3ill wa" pre"ented to the Lo4 #a3ha. 1$$ordin!l&, #1IL wa" a!ain re$o!niAed in the followin! manner. 0indu"tan #teel Ltd., Bo4aro #teel Ltd., #alem #teel Ltd., #1IL International Ltd., Bhilai I"pat Ltd., Rour4ela I"pat Ltd., 7ur!apur I"pat Ltd., wholl& owned "u3"idiarie" of #1IL mer!ed into it and "tarted fun$tionin! a" +nit" of #1IL. -G8ON, 0#8L and N-78 3e$ome independent 8ompanie" and "tarted fun$tionin! under -ini"tr& of #teel. 0owe9er, 'iri3uru and -e!hatu3uru Iron Ore -ine" were atta$hed with B#L a" their 8apti9e -ine". Bharat Refe$torie" Ltd. al"o 3e$ame independent under the -ini"tr& of #teel and refra$tor& unit" al"o $ame under them. /hu", #1IL, at pre"ent, i" ha9in! $apa$it& of 12 -/ of $rude "teel throu!h it" four inte!rated #teel Plant", at Bo4aro, Bhilai, 7ur!apur and Rour4ela. /wo "pe$ial "teel plant" at 7ur!apur and #alem produ$e a wide ran!e of allo& and "pe$ial "teel". -ar4etin! of the produ$t" from the"e plant" i" done throu!h a Page 14 $ountr& wide di"tri3ution networ4 $on"i"tin! of a $hain of #to$4 Yard" and di"tri3ution networ4. #1IL toda& i" one of the lar!e"t indu"trial entitie" in India. It" "tren!th ha" 3een the di9er"ified ran!e of qualit& "teel produ$t" $aterin! to the dome"ti$ a" well a" the G;port mar4et" and a lar!e pool of te$hni$al and profe""ional e;perti"e. Ran4ed amon!"t the top ten pu3li$ "e$tor $ompanie" in India in term" of turno9er, #1IL manufa$ture" and "ell" a 3road ran!e of "teel produ$t", in$ludin! hot and $old rolled "heet" and $oil", !al9aniAed "heet", ele$tri$al "heet", "tru$tural, railwa& produ$t", plate", 3ar" and rod", "tainle"" "teel and other allo& "teel". #1IL produ$e" iron and "teel at four inte!rated plant" and three "pe$ial "teel plant", lo$ated prin$ipall& in the ea"tern and $entral re!ion" of India and "ituated $lo"e to dome"ti$ "our$e" of raw material", in$ludin! the 8ompan&E" iron ore, lime"tone and dolomite mine". #1ILE" wide ran!e of lon! and flat "teel produ$t" are mu$h in demand in the dome"ti$ a" well a" the international mar4et. /hi" 9ital re"pon"i3ilit& i" $arried out 3& #1ILE" own 8entral -ar4etin! Or!aniAation 58-O6 and the International /rade 7i9i"ion. 8-O en$ompa""e" a wide networ4 of *8 3ran$h offi$e" and FD "to$4&ard" lo$ated in maor $itie" and town" throu!hout India. Cith te$hni$al and mana!erial e;perti"e and 4now(how in "teel ma4in! !ained o9er four de$ade", #1ILE" 8on"ultan$& 7i9i"ion 5#1IL8ON6 at New 7elhi offer" "er9i$e" and $on"ultan$& to $lient" world(wide. #1IL ha" a well(equipped Re"ear$h and 7e9elopment 8entre for Iron and #teel 5R78I#6 at Ran$hi whi$h help" to produ$e qualit& "teel and de9elop new te$hnolo!ie" for the "teel indu"tr&. Be"ide", #1IL ha" it" own in(hou"e 8entre for Gn!ineerin! and /e$hnolo!& 58G/6, -ana!ement /rainin! In"titute 5-/I6 and #afet& Or!aniAation at Ran$hi. #1ILE" $apti9e mine" are under the $ontrol of the Raw -aterial" 7i9i"ion in 8al$utta. /he Gn9ironment -ana!ement 7i9i"ion and 2rowth 7i9i"ion of #1IL operate from their headquarter" in 8al$utta. 1lmo"t all #1ILE" plant" and maor unit" are I#O 8ertified. O:!ERS)IP A!D MA!AGEME!T /he 2o9ernment of India own" a3out 8)> of #1ILB" equit& and retain" 9otin! $ontrol of the 8ompan&. 0owe9er, #1IL, 3& 9irtue of it" @Na9ratna@ "tatu", eno&" "i!nifi$ant operational and finan$ial autonom& Page 15 I!TEGRATED STEE PA!TS 1. Bo4aro #teel Plant 5B#L6 in Jhar4hand 2. 7ur!apur #teel Plant 57#P6 in Ce"t Ben!al *. Rour4ela #teel Plant 5R#P6 in Ori""a F. Bhilai #teel Plant 5B#P6 in 8hhatti"!arh SPECIA STEE PA!TS 1. 1llo& #teel Plant 51#P6 in Ce"t Ben!al 2. #alem #teel Plant 5##P6 in /amil Nadu *. %i"9e"9ara&a Iron I #teel Plant 5%I#L6 in 'arnata4a SUBSIDIARIES 1. Indian Iron I #teel 8ompan& Limited 5II#8O6 in Ce"t Ben!al. 2. -ahara"htra Gle$tro"melt Limited 5-GL6 in -ahara"htra OTHER UNITS Raw -aterial 7i9i"ion 5R-76 at 'ol4ata, Ce"t Ben!al 8entral -ar4etin! Or!aniAation 58-O6 at 'ol4ata, Ce"t Ben!al #1IL 8on"ultan$& 7i9i"ion 5#1IL8ON6 at New 7elhi Re"ear$h I 7e9elopment 8entre for Iron I #teel 5R78I#6 at Ran$hi, Jhar4hand 8entre for Gn!ineerin! I /e$hnolo!& 58G/6 at Ran$hi, Jhar4hand -ana!ement /rainin! In"titute 5-/I6 at Ran$hi, Jhar4hand 8entral Power /rainin! In"titute 58P/I6 at Rour4ela, Ori""a #1IL #afet& Or!aniAation 5##O6 at Ran$hi, Jhar4hand Gn9ironment -ana!ement 7i9i"ion 5G-76 at 'ol4ata, Ce"t Ben!al 2rowth 7i9i"ion 5276 at 'ol4ata, Ce"t Ben!al Page 16 8entral 8oal #uppl& Or!aniAation 588#O6 at 7han3ad, Jhar4hand JOI!T 9E!TURE #1IL ha" promoted oint 9enture" in different area" ran!in! from power plant" to e($ommer$e. !TPC SAI Po6e+ Com/any P-t4 td #et up in -ar$h 2001, thi" ?0:?0 oint 9enture 3etween #1IL and the National /hermal Power 8orporation 5N/P86 operate" and mana!e" the 8apti9e Power Plant"(II of the 7ur!apur and Rour4ela #teel Plant" whi$h ha9e a $om3ined $apa$it& of 2F0 -C. Page 17 1o2a+o Po6e+ Su//ly Com/any P-t4 imited /hi" ?0:?0 oint 9enture 3etween #1IL and the 7amodar %alle& 8orporation formed in Januar& 2002 i" mana!in! the *02(-C power !eneration and 1880 ton" per hour "team !eneration fa$ilitie" at Bo4aro #teel Plant. 1o2a+o Elect+ic Su//ly Com/any P-t4 imited 1?0 1nother #1IL(N/P8 oint 9enture on ?0:?0 3a"i" formed in -ar$h 2002 mana!e" the DF -C Power Plant(II of Bo4aro #teel Plant whi$h ha" additional $apa$it& of produ$in! tone" of "team per hour. UEC SAI In.o+mation Technology imited /hi" F0:)0 oint 9enture 3etween #1IL and +#L Gn!ineer" I 8on"ultant", a "u3"idiar& of the +# #teel 8orporation, promote" information te$hnolo!& in the "teel "e$tor. Metaljunction4com P+i-ate imited 1 oint 9enture 3etween #1IL and /ata #teel on ?0:?0 3a"e", thi" $ompan& promote" e($ommer$e a$ti9itie" in "teel and related area". SAI'1an0al Se+-ice Cente+ P-t4 td4 #1IL ha" formed a oint 9enture with B-C indu"trie" Ltd. on F0:)0 3a"e" to promote a "er9i$e $entre at Bo4aro with the o3e$ti9e of addin! 9alue to "teel. !o+th 1engal Dolomite imited 1 oint 9enture 3etween #1IL and Ce"t Ben!al -ineral 7e9elopment 8orporation ltd on ?0:?0 3a"i" wa" formed for de9elopment of Ja&anti Page 18 7olomite 7epo"it, Jalpai!uri for "uppl& of 7olomite to 7#P and other plant". Romelt'SAI "India# td Romelt /e$hnolo!& de9eloped 3& Ru""ia for redu$in! of iron 3earin! material", whi$h i" $arried out with $ar3on in "in!le 1 oint 9enture 3etween #1IL, National -ineral 7e9elopment 8orporation 5N-786 and Ru""ian promoter" for mar4etin! "ta!e rea$tor with the u"e of o;&!en. 1hilai JP Cement td #1IL ha" al"o in$orporated a oint 9enture $ompan& with -K" Jaipra4a"h 1""o$iate" Ltd to "et up a 2.2 -/ $ement plant at Bhilai. Li4el& to $ommen$e operation" 3& -ar$hB2010. 1O*ARO STEE PA!T A PART!ER I! !ATIO! 1UIDI!G Page 19 I!TRODUCTIO! Bo4aro #teel Plant ( the fourth inte!rated plant in the Pu3li$ #e$tor ( "tarted ta4in! "hape in 19)? in $olla3oration with the #o9iet +nion. It wa" ori!inall& in$orporated a" a limited $ompan& on 29th Januar& 19)F, and wa" later mer!ed with #1IL, fir"t a" a "u3"idiar& and then a" a unit, throu!h the Pu3li$ #e$tor Iron I #teel 8ompanie" 5Re"tru$turin! I -i"$ellaneou" Pro9i"ion"6 1$t 19D8. /he $on"tru$tion wor4 "tarted on )th1pril 19)8. Page 20 /he Plant i" hailed a" the $ountr&E" fir"t #wade"hi "teel plant, 3uilt with ma;imum indi!enou" $ontent in term" of equipment, material and 4now(how. It" fir"t Bla"t :urna$e "tarted on 2nd O$to3er 19D2 and the fir"t pha"e of 1.D -/ in!ot" "teel wa" $ompleted on 2)th :e3ruar& 19D8 with the $ommi""ionin! of the third Bla"t :urna$e. 1ll unit" of F -/ "ta!e ha9e alread& 3een $ommi""ioned and the 90"B moderniAation ha" further up!raded thi" to F.? -/ of liquid "teel. /he new feature" added in moderniAation of #-#(II in$lude two twin("trand "la3 $a"ter" alon! with a #teel Refinin! +nit. /he #teel Refinin! +nit wa" inau!urated on 19th #eptem3er, 199D and the 8ontinuou" 8a"tin! -a$hine on 2?th 1pril, 1998. /he moderniAation of the 0ot #trip -ill "aw addition of new feature" li4e hi!h pre""ure de("$aler", wor4 roll 3endin!, h&drauli$ automati$ !au!e $ontrol, qui$4 wor4 roll $han!e, laminar $oolin! et$. New wal4in! 3eam reheatin! furna$e" are repla$in! the le"" effi$ient pu"her t&pe furna$e". 1 new h&drauli$ $oiler ha" 3een added and two of the e;i"tin! one" re9amped. Cith the $ompletion of 0ot #trip -ill moderniAation, Bo4aro i" produ$in! top qualit& hot rolled produ$t" that are well a$$epted in the !lo3al mar4et. Bo4aro i" de"i!ned to produ$e flat produ$t" li4e 0ot Rolled 8oil", 0ot Rolled Plate", 0ot Rolled #heet", 8old Rolled 8oil", 8old Rolled #heet", /in -ill Bla$4 Plate" 5/-BP6 and 2al9aniAed Plain and 8orru!ated 52PK286 #heet". Bo4aro ha" pro9ided a "tron! raw material 3a"e for a 9ariet& of modern en!ineerin! indu"trie" in$ludin! automo3ile, pipe and tu3e, LP2 $&linder, 3arrel and drum produ$in! indu"trie". Di+ection0 Page 21 Bo4aro #teel i" wor4in! toward" 3e$omin! a one("top("hop for world($la"" flat "teel in India. /he moderniAation plan" are aimed at in$rea"in! the liquid "teel produ$tion $apa$it&, $oupled with fre"h rollin! and $oatin! fa$ilitie". /he new fa$ilitie" will 3e $apa3le of produ$in! the mo"t premium !rade" required 3& the mo"t di"$ernin! $u"tomer "e!ment". Brand Bo4aro will "i!nif& a""ured qualit& and deli9er&, offerin! 9alue for mone& to the $u"tomer". 9ISIO! /o 3e a re"pe$ted worldH$la"" $orporation and the leader in Indian #teel 3u"ine"" in qualit&, produ$ti9it&, profita3ilit& and $u"tomer "ati"fa$tion. CORE 9AUES O5 SAI Page 22 Core Values Core Values )UMA! RESOURCE #1ILE" total manpower at the end of *0 1pril, 2010 "tood at around 2),288. /he $ompan&E" la3or produ$ti9it& 2FF.02 tone"KmanK&ear a" on *0.0F.10 Sc+a/ and Sal-age De/a+tment 1" the name "i!nifie", the department wor4" with :errou" MIron I "teelN "$rap to "al9a!e it I ma4e it u"eful 3& addin! 9alue to it. ##7 ha" a dual role to pla& in Page 23 Customer Satisfaction Customer Satisfaction Concern for People Concern for People Consistent Profitability Consistent Profitability Commitment of Excellence Commitment of Excellence o9erall "$heme of thin!" in the wor4" di9i"ion. Primaril& it ha" to "uppl& Iron and #teel "$rap to #teel -eltin! #hop 5#-#6 a" a te$hnolo!i$al input in the #teel -eltin! pro$e"". #e$ondl&, the role of ##7 i" to $olle$t all the :errou" #$rap 5wa"te for the pla$e of ori!in6 and 3rin! it to the department to tran"form it into a u"eful produ$t. G9er& department of the plant from 8o4e O9en to 8old Rollin! -ill produ$e mental wa"te termed "$rap. /hi" ma& 3e in the form of maintenan$e wa"te e.!. 3ro4en or worn out part", dama!ed "tru$ture or equipment or ma& 3e pro$e"" ari"in!. /he prime produ$t" $ontinue on their produ$tion flow toward" the final defined output, while the ari"in! ha" to drop out a" the& are not "uita3le $hemi$all&, me$hani$all& or 3& "iAe and "hape. In the "hape of fi"h tail" or irre!ular ed!e trimmin! or produ$e whi$h are 3elow the planned "iAe. In a nut "hell ##7E" role i" to en"ure that all Iron and #teel #$rap 5unwanted at pla$e produ$tion6 are tran"ported to "ite pro$e""ed and tran"formed to u"a3le "hape, "iAe and qualit& 5free of "la! et$.6 and tran"ported #-# -a!neti$ #$rap Yard" for u"in! a" $oolant in the $on9erter 3ath. #urplu" "$rap after "uppl&in! the requirement of "$rap i" offered for e;ternal "ale to !enerate $a"h re"our$e" for the 8ompan&. T7PES O5 PRODUCTS In Bo4aro #teel Plant, the fini"hed produ$t" are $ate!oriAed into three part": Page 24 (4 P+ime P+oduct0; ( /he"e are the a$tual produ$t", whi$h are ori!inall& produ$ed for e;ample, 3loom", 3illet", $hannel", round", an!le" et$. $4 1y'P+oduct0; ' /he"e produ$t" are not ori!inall& produ$ed 3& Bo4aro #teel Plant, 3ut are out$ome" while produ$in! the prime produ$t". <4 Seconda+y P+oduct0; ' /he"e are the defe$ti9e" or ree$ted material" due to improper mi;in! of $hemi$al $omponent" or fail to meet the optimum requirement". #$rap" !enerated in"ide plant are al"o termed a" #e$ondar& produ$t". /he "e$ondar& produ$t" u"ed here in after will mean ferrou" material" !enerated from 9ariou" produ$tion unit" whi$h $an either "uita3l& 3e u"ed for re(meltin! to produ$e iron and produ$t" or offered for "ale if rendered "urplu" in produ$tion pro$e"" for e;ample 7efe$ti9e 0ea9& 3loom", 7efe$ti9e Rail", Rail $uttin!, Rod $uttin!, #$rap et$. 5ollo6ing Item0 .all unde+ the catego+y o. Seconda+y P+oduct0;' "A# REROA1E=IRO! A!D STEE SCRAP=15G SAG 1. -# #L1B GN7 8+//IN2 CI/0O+/ :I#0 /1IL Page 25 2. -# /0I8LG PL1/G 8+//IN2 52?(F0 --6 -ILG7 C.:R. *. #PILLG7 0O/ -G/1L 510 -/ 1N7 BGLOC6 #-# 1RI#IN2#. F. LIO+I7 NI/RO2GN. ?. :ING IRON 80IP# :RO- I-P 5:G(D0> 1PP6. ). :GRRO+# #IGLP01/G H LOO#G. D. BG 2RN1+L1/G7 #L1J 5BO/0 BY :ILG7 PRI8G 1N7 /GN7GR6. 8. LIO+I7 1R2ON. 9. PI2 /RON. 10./+RNIN2 I BORIN2. "1# OT)ERS 1. 81RBI7G #L+72G. 2. +KR 1-8K-8B BRI8'#. *. +KR -1J 80RO-G -1J BRI8'#. "C# COA C)EMICAS A!D 17 PRODUCT 1. -2 BGNPGNG 2. N2 /OL+GNG *. L# N1P/01 F. #B OIL ?. 0P N1P0/01LGNG ). 1N/0R1N8GNG OIL D. GL/R1 01R7 PI/80 8. 01R7 -G7I+- PI/80 H #OLI7 #/1/G 9. 01R7 -G7I+- PI/80 H LIO+I7 #/1/G Page 26 !ECESSIT7 O5 SEI!G T)E >>SECO!DAR7 PRODUCTS? /he net "ale" realiAation from all the #e$ondar& produ$t", B&(Produ$t" and $o( produ$t" of B#L i" around R".)00 $rore" whi$h i" quite more than mone& the 3i! indu"trie". Out of thi" #teel #$arp ari"in! it"elf 3rin!" a3out R".1?200 $ore" of mone& e9er& &ear. Re(produ$tion of main produ$t" from the= "e$ondar& produ$t" require" re(meltin! it a!ain for the required $ompo"ition of the material" a" per the de"ired "pe$ifi$ation. B& "ellin! it to the different -ill"Ktrader"KPro$e""or" the plant earn around R".F000 per tone" of the dire$t profit than 3& re(produ$in! it to the main produ$t. /he trader" Kpro$e""or"Kre(roller", u"e the"e a" a raw material" for different fini"hed produ$t" ma4in! hu!e profit", the plant i" al"o not lo"in! an&thin!. Profit i" the main aim of e9er& 3u"ine"", and when the realiAation of the"e produ$t" for the fini"hed produ$t" pro9e" to 3e $o"tlier, the mana!ement plant de$ided to "ell it to the lo$al mar4et. B& "ellin! "e$ondar& Produ$t" to the Lo$al mar4et new indu"trie" are de9eloped for re(rollin! the #e$ondar& material" to ma4e fini"hed produ$t". It ha" al"o in$rea"ed the "mall("$ale indu"trie" and emplo&ment opportunitie". La"t &ear a9era!e pri$e of "$rap produ$t were 3etween R".12000Kton to R".1)000Kton Page 27 ate0t P+ice o. di..e+ent 1y'P+oduct 6hich 1S 6e+e 0old in A/+il 8 May %& 6ith /+e-iou0 yea+ /+ice Item $%%@'$%%A $%%A'$%%& $%%&'$%(% 0ard -ed Pit$h R".1))28 R".2***1 (((((( :errou" #ulphate ((((((( ((((((( R".)000 Naphthalene R".FD8)F R".F2D9* R".F2900 1nthra$ene oil R".1*80? R".18?11 R".1*200 BenAene R".*8*?F R".*09)1 R".*2900 /oluene R".*9)0* R".*9080 R".*?*00 L# Naphtha R".*2*92 R".*1029 R".*10?0 # Boil R".20?** R".19?88 R".18000 BROE O5 MAR*ETI!G DEPARTME!TC Page 28 MAR*ETI!G DEPARTME!T O51O*ARO STEE PA!T -ar4etin! 7epartment i" one of the 7epartment" under -aterial" -ana!ement 7i9i"ion of Bo4aro #teel Plant. -ar4etin! 7epartment i" entru"ted with the Page 29 re"pon"i3ilitie" to "ell B#LE" #e$ondar& Produ$t", B&(Produ$t"KCa"te Produ$t", and Idle 1""et" et$. /he -ar4etin! 7epartment" "ale" pro$edure" are $o9ered 3& the !uideline" !i9en 3& #1IL 8orporate offi$e 7GL0I, and i" !i9en 3& 8--2 58ORPOR1/G -1/GRI1L -1N12G-GN/ 2RO+P6, the o3e$ti9e of whi$h i" </o "ell the material" in a fair and tran"parent manner to a$hie9e ma;imum po""i3le re9enue to the $ompan&Q 5a6 -ar4etin! of prime produ$t" of #1ILE" plant in$ludin! B#L i" done 3& 8-O 58entral -ar4etin! Or!aniAation6 whi$h i" a unit of #1IL. 536 -ar4etin! of "e$ondar& produ$t" and $oal $hemi$al" are done dire$tl& 3& -ar4etin! 7epartment of B#L. 1" a matter of fa$t, the #e$ondar& I B&( Produ$t" are mar4eted 3& the indi9idual Plant" onl&. -ar4etin! of the"e produ$t" are $ondu$ted 3& 9ariou" "e$tion" 3& mar4etin! department of Bo4aro #teel plant". It i" en!a!ed, with mar4etin! of Primar& Produ$t" for home "ale or e;port throu!h 8-O. /he F.0 -illion tone" "e$tion 4nown a" plate mill "e$tion dealin! with plate". Now thi" "e$tion ha" !ot I#O ( 9002 $ertifi$ate. /he "e$ondar& "e$tion deal" with the "e$ondar& Produ$t", it in$lude" "$rap" of iron and "teel "la!, $oal and $o4e fra$tion", $oal $hemi$al". /he -ar4etin! de9elopment "e$tion deal" with the -I# and "trate!i$ Plannin! a$ti9it& $ome under thi" "e$tion. /he G;port "e$tion deal" with the a$ti9itie" of the e;port" in re"pe$t of Iron and #teel item" produ$ed 3& Bo4aro "teel plant. ORGA!ISTATIO! C)ART O5 MAR*ETI!G DEPARTME!T "1S# Page 30 GM (Marketin! GM (Marketin! 5U!CTIO! O5 MAR*ETI!G DEPARTME!T Page 31 "r. Mr. (C#$#r%n.!&Mkt. Cord, HK, Admn. & Es. !ra"n"ng #$%er "r. Mr. (C#$#r%n.!&Mkt. Cord, HK, Admn. & Es. !ra"n"ng #$%er DGM (Mkt.! A&d", '"g"(an%e, )!*, & o+er ,&er"es re-(., Conra% Ce((/001, 2e%. 2a(es DGM (Mkt.! A&d", '"g"(an%e, )!*, & o+er ,&er"es re-(., Conra% Ce((/001, 2e%. 2a(es AGM(Mkt.! 2e%. 2ee( Ad & Es, 3C, *2#, 4CA, Conra% Ce((/001 AGM(Mkt.! 2e%. 2ee( Ad & Es, 3C, *2#, 4CA, Conra% Ce((/001 Sr. Mr. (Mkt.! 2(ag, 5ase, *ron, 2m&g. 2%+eme
"r. Mr. (Mkt.! (4 /o monitor the order" i""ued 3& 8-O, #o that the"e order" $an fulfilled in time. $4 Put pre""ure on 8-O, to !et order" for an underutiliAed mill. <4 /o "ell all the "e$ondar& produ$t" dire$tl& i.e. dire$tl& 3& B#L and 3& 8-O. D4 On da& to da& 3a"i" it ta4e" $are of the di"pat$he" i.e. dail& di"pat$h are $he$4ed.
POICIES O5 MAR*ETI!G -ar4etin! Plannin! ha" re"pon"i3le fun$tion in the wor4in! of mar4etin! department. 1ll the ri"4& de9elopment", ta4in! out "olution to $ripple R"ituation", thi" "e$tion $arrie" out produ$t pri$in! and related a$ti9itie", "ome of the pro!ramme", poli$ie" and pro$edure" are a" follow":( I# Po"itionin! the produ$t a 9alue 3a"ed pla$e in $u"tomer mind. II# :inaliAe annual "ale" plan and quantit&, monthl&, wee4l&, and dail& rollin! pro!ramme of Rollin! mill" in $on"ultation with 8-O and mill". /hi" plan i" 3a"ed on the "ale" fore$a"t re$ei9e from JP+ #PLK Iron and "teel $ontroller. III# OptimiAin! the produ$t(mi; 3& proper utiliAation of a9aila3le "to$4". I9# Re$ei9in! Gnquirie" and $omplaint", $an$ellation of order" et$. 9# 8oordinatin! the wor4" of mill" and traffi$ department "o a" to ma;imiAe di"pat$he". 9I# 8o(ordination" with 8-O from "ta!e" of enquir&, for e;port", de9elopment of new Profile", "e$tion", modifi$ation of produ$t "$hedulin! till the order" are $ompleted. 9II# 7e9elopment of new qualitie" of "teel. 9III# Periodi$al mar4et "ur9e&" of produ$t" to anal&Ae the mar4et po"ition. Page 32 IE# Implementation of "u!!e"tion" re$ei9ed from the $u"tomer"E feed3a$4. E# Gn"ure $u"tomer "ati"fa$tion 3& meetin! $u"tomer" re!ularl&= pro9ide redre"" to their pro3lem" and fulfillment of demand. P+icing /olicy and Sale0 P+ocedu+e; PRICI!G; :i;in! the pri$e of a produ$t i" the mo"t 9ital fun$tion in the whole pro$e"" of the mar4etin! and it "hould 3e done after proper mar4et "tud& and require" de$i"ion ma4in! a3ilit&. If pri$e i" too low the $ompan& will lo"e re9enue and if the pri$e i" too hi!h it will lo"e $u"tomer" re"ultin! in lo"" of re9enue 9alua3le $u"tomer". 8oal $hemi$al" are the main produ$t whi$h i" to 3e mar4eted 3& the -ar4etin! 7epartment of Bo4aro #teel Plant. 1lmo"t all the produ$t" are "old on the fi;ed pri$e 3a"i". /hi" i" due to the fa$t that the $ompan& doe" not eno& monopol& in the "aid mar4et and the pri$e i" totall& mar4et dri9en. /he poli$& adopted 3& the mar4etin! department for pri$in! of material" i" lar!el& !uided 3& the pri$e offered 3& the 3idder" durin! the au$tion. /he 9ariou" fa$tor" ta4en into $on"ideration while pri$in! the re(rolla3le item" $an 3e enumerated a" follow": ( 5a6 Pri$e" offered in the au$tion "ale". 536 Ouantit& of material to 3e lifted. 5$6 -ana!in! dire$torB" appro9al. /he a9era!e of the pri$e" offered 3& the 3idder durin! au$tion i" ta4en a" the 3a"i" to fi; the pri$e" of material" to 3e "old throu!h mar4etin! department. :urther the te$hnique" of 3rea4(up(pri$in! are adopted i.e. the lar!er the quantit& pur$ha"ed lower will 3e the pri$e". /hi" te$hnique en$oura!e" the 3u&er" to pur$ha"e lar!er quantit&. :inall& the mana!in! dire$tor appro9e" the pri$e" "et 3& the pri$in! $ommittee. On thi" 3a"i", a pri$e li"t i" prepared for all the potential 3u&er". Pri$e li"t al"o indi$ate" the "ale" ta; and G;$i"e dut& to 3e le9ied. /hu" the intere"ted partie" pla$e their order" with the mar4etin! Page 33 department on the 3a"i" of pri$e li"t re9iewed e9er& month. G9er& $u"tomer i" required to ha9e a "e$urit& depo"it amount of R".1 la4h. /he pa&ment for the material required i" to 3e in ad9an$e. /he material i" "uppo"ed to 3e lifted on the "pe$ified date on a$$ount of dela& the part& ha" to pa& the differen$e in the pri$e", if there i" an& in$rea"e in "u3"equent month. Standing P+icing Committee; /he $ommittee re9iew" the pri$e of 9ariou" produ$t" and ta4e" de$i"ion in fa9or of ma;imiAin! the profit. It hold" meetin! at lea"t on$e in a month. But the 9olatilit& of the mar4et and pool of different produ$t" lead to a num3er of meetin! of the $ommittee in qui$4 "u$$e""ion. The committee con0i0t0 o.; 2- 5+tilit&6, 8hairman 2- 5-ar4etin!6, 8on9ener 72- 5:inan$e6, mem3er 72- 5#ale" 8oordination6, mem3er 72- 5#tore"6, mem3er 72- 5BPP6, mem3er :or #$rap !ood" the 72- 5##76 repla$e" the 72- 5BPP6. Re"t" of all the mem3er" are alwa&" pre"ent in all the meetin!". :hile deciding the /+ice .ollo6ing /oint0 a+e 2e/t in mind; 7i"pat$h of the la"t month. -aterial in "to$4. :ore$a"t of ne;t month. 2eneral mar4et $ondition. Page 34 19aila3ilit& of tran"port fa$ilit&. 2- 5-ar4etin!6, a" per the need, de$ide" the frequen$& and time of meetin!" to 3e held. -inute report of all the meetin!" i" prepared and it $ontain" the e;i"tin! pri$e and the propo"ed pri$e. /he final pri$e i" mo9ed to the -7 throu!h the offi$ial $hannel in$ludin! 2- 5-ar4etin!6, G;e$uti9e 7ire$tor 5--6, 2- 5:inan$e and 1$$ount"6, and G7 5Cor4"6. 1fter the -7E" appro9al the pri$e 3e$ome" appli$a3le and the $ir$ular indi$atin! the re9i"ed pri$e i" printed, i""ued and di"tri3ution to the $u"tomer" and all the $on$erned department". DISTRI1UTIO! :or the purpo"e of di"tri3ution of "teel 5a" per JP86 poli$& in fa"hion, $u"tomer" are $ate!oriAed into 1, B, 8 I 7. Priorit& "e$tor $u"tomer e.!. 7efen"e, Railwa&" et$. are under $ate!or& 1 and a3out )0> of the produ$t allotted to them. /he 3alan$e F0> i" 4ept for the $ate!or& B, 8 I 7. On the other hand for "ale of "$rap" there i" no "u$h poli$& adopted 3& Bo4aro #teel Plant. 8u"tomer" are "er9ed on fir"t $ome fir"t "er9ed 3a"i". C)A!!ES Bo4aro "teel plant ha" Aero le9el $hannel" a" it dire$tl& "ell" to the $u"tomer". /here i" no intermediate amon! produ$er and $on"umer. -ar4etin! 7epartment alwa&" remain" in $onta$t with the $u"tomer"E e;tra$t" information a3out the $urrent mar4et "ituation on the 3a"i" of intera$tion 3etween them. SAES PROMOTIO! #ale" Promotion $on"i"t" of a di9er"e $olle$tion of in$enti9e tool" de"i!ned to "timulate qui$4er or !reater pur$ha"e of parti$ular produ$t. 1" a part of promotional a$ti9itie", B#L i" emplo&in! followin! a$ti9itie": a# 7i"$ount "la3" i" pro9ided to 3oo"t the "ale", de"$ription of whi$h i" !i9en 3elow: Page 35 +p to 10,000 tone" ((((( No 7i"$ount 10,000 to 1?,000 ((((( 1?> 7i"$ount 13o9e 1?,000 ((((( 20> 7i"$ount b# /o find new $u"tomer" and to inform $u"tomer" at far di"tant area" /ender Noti$e !i9en in the new"paper for "ale of "$rap". Be"t amon! the appli$ation i" a$$epted with a 9iew to !et the 3e"t re9enue. c# #ometime" when new item i" to 3e "old "ale" noti$e i" !i9en in the new"paper. But mo"t of the time lo$al $u"tomer" !et informed from other $u"tomer".
MAR*ETI!G STRATEGIES O5 1S #teel 3ein! an indu"trial $ommodit& it i" 9er& ne$e""ar& to maintain $u"tomer relation"hip for profita3ilit& and "mooth runnin! of $ompan&. (4 Cu0tome+ Sati0.action B#L adopt" followin! pra$ti$e" for $u"tomer "ati"fa$tion. a4 Pro$edure K pro$e"" adapted to a$$e"" $urrent K future e;pe$tation of $u"tomer". b4 It indu$e" mar4et re"ear$h 9i"itin! $u"tomer premi"e" attendin! to $u"tomer $omplaint". c4 8-O ha" -ar4et -ana!ement 2roup where "pe$iali"t" monitor $han!in! demand pattern and de9elopment in ea$h -ar4et "e!ment i" $arried on. Page 36 d4 It ha" po"ted mar4et de9elopment offi$er" at 9ariou" lo$ation" that are it" e&e" and ear" for monitorin! $urrent and future e;pe$tation of it" $u"tomer. e4 /he Bu"ine""(plannin! department i" e;$lu"i9el& meant to "tud& $u"tomerB" $han!in! demand "$enario and a""e"" $urrent and future e;pe$tation. .4 /o under"tand $u"tomer need" "eminar" and wor4"hop" are al"o or!aniAed 3& B#L. 1uilding Cu0tome+ Relation0hi/ B#L ha" adopted the philo"oph& of re$o!niAin! "e!ment of the mar4et and identif&in! 4e& $u"tomer in "e!ment and !i9in! them preferential treatment. 8-O "ale" e;e$uti9e" ha9e 3een trained to u"e dire$t "ellin! a" tool for 3uildin! lon! la"tin! relation"hip with the $u"tomer". Ga"& a$$e"" to $u"tomer" to "ee4 a""i"tan$e ma4e" propo"al" "end $omment" and $ompliment". MAR*ET DE9EOPME!T B#L ha" 9alued $u"tomer" !roup in identif&in! their "pe$ifi$ need" #pe$ifi$ to that !roup thu" "e!mentin! and de9elopin! mar4et "e!ment for our produ$t". -aor produ$t modifi$ation" are done a" per their "pe$ifi$ need" of the -ar4et "e!ment there3& $reatin! produ$t differentiation pa$4a!e". PRODUCTIO! ACCORDI!G TO MAR*ET !EEDS B#L i" alwa&" in tou$h in mar4et and tr& to produ$e a$$ordin! to mar4et need". B#L trie" to produ$e qualit& produ$t" K new produ$t" whi$h fulfill the need of mar4et. Page 37 $4 STOC* REDUCTIO! 2i9in! fa$ilitie" li4e door deli9er&, road di"pat$he", $redit" fa$ilit& and round" the $lo$4 "to$4&ard operation. < PRICE 5IEATIO! Pri$in! i" done 3a"i$all& 3& the 8-O. /a4in! into $on"ideration $o"t of produ$tion, !o9ernment "tep" on pri$in!, $ertain per$enta!e of profit, pri$e of raw material fri!ht $har!e" et$. i.e. pri$in! i" 8O#/ PL+# PRI8IN2. D DESPATIC) 1" the produ$t i" manufa$tured, thi" department dire$t" the "to$4&ard" the mode of tran"port to the de"tination with referen$e to di"pat$h pro!ram and di"pat$h ad9i$e i" mode. F DOCUME!TATIO! Cith the di"pat$h of produ$t the :inan$e department $al$ulate" the total $o"t of produ$t a" per demand order. 8ertain re$eipt" and 3ill" quotin! the material $ode, nature, quantit&, and all e;pen"e" are "ent to $onne$ted "to$4&ard. /he produ$t will 3e then relea"ed to the $on$erned per"on after proper and $omplete pa&ment to the pa&(in( authoritie" i" made. MAR*ETI!G O5 SECO!DAR7 PRODUCTS 7urin! the "e9entie" and "i;tie" when the plant wa" one million(tone" and2.? million(tonne" $apa$it& re"pe$ti9el&, ari"in! of "e$ondar& produ$t" wa" limited and "u$h ari"in! wa" re$&$led for re(meltin!. /herefore there wa" no "$ope for mar4etin! in other word" it wa" not e$onomi$al. /he plant $apa$it& ha" 3een in$rea"ed from 2.? million ton" to F million tone" in the late "i;tie". New te$hnolo!& ha" 3een adopted while in$rea"in! the $apa$it& of the plant where 3& Page 38 the u"e of ari"in! for re(meltin! dra"ti$all& redu$ed. /hi" ha" !i9en more impa$t to the ma4in! of "e$ondar& produ$t. In the ninetie" we ha9e "een lot of $han!e" in the e$onomi$ "$enario of the $ountr&. /he $on$ept of more emplo&ment in Pu3li$ #e$tor Gnterpri"e" ha" $han!ed to more profit". /here 3& the plant al"o ha" !eared up it" "trate!& toward" thi" end. One of the "trate!ie" adopted 3& the plant for in$rea"in! the profit i" mar4etin! of "e$ondar& produ$t". In the re$ent &ear" a num3er of foundrie" and re(rollin! -ill" $ome into e;i"ten$e throu!hout the $ountr&. /he"e "mall "$ale" #e$tor need the @#e$ondar& produ$t"@ a" input raw material for their produ$tion. /he $ompan& ha" en!a!ed in edu$atin! them the u"e of "e$ondar& produ$t" for different 4ind" of end produ$t" for $on"umption of !eneral pu3li$. /he plant e;tend" all t&pe" of fa$ilitie" and a""i"tan$e to the"e "mall("$ale unit". /hi", in turn !i9e" "$ope for more emplo&ment opportunitie". /he plant for mar4etin! ha" adopted followin! "trate!&: 1. 8ommitted deli9er&. 2. 8ompetiti9e pri$e *. Oui$4 $omplaint "ettlement. F. 8ulture of $u"tomer "er9i$e. It i" ne$e""ar& to mentioned here that the $ompanie"B profit $on"i"t" of 10> turno9er of "e$ondar& produ$t" for the La"t two &ear". Page 39 PA!!I!G 5OR SAE O5 SECO!DAR7 PRODUCT 1. -ar4etin! Re$o9er& 7epartment 5-R76 wor4" out the quantum of different t&pe" of "$rap a9aila3le for "ale on monthl& 3a"i". /hi" i" determined 3& a"$ertainin! the total "$rap "to$4 at the 3e!innin! of the month. #$rap ari"in! durin! $on"umption. /he remainin! quantit& i" $on"idered for "ale. 1, monthl& report on a9aila3ilit& of "$rap i" prepared 3& -R7 and "ent to mar4etin! department. 2. -ar4etin! 7epartment finaliAe" the plan for a$tual quantit& of "$rap to 3e "old in $on"ultation with -R7. -ar4etin! department finaliAe" mode of "ale, term" and $ondition" for "ale, lo$ation" and $ommer$ial a"pe$t". *. /he pri$in! $ommittee $on"i"t of -ana!in! 7ire$tor" fi;e" the pri$e of ea$h t&pe of "$rap. F. -ar4etin! department o3tain" -7B" appro9al on pri$e fi;ed 3& pri$in! $ommittee. Page 40 PROCEDURE APPIED 5OR SAE O5 SECO!DAR7 PRODUCTS 1. 1fter o3tainin! appro9al of quantit& and pri$e for "ale, -ar4etin! department "$rutiniAe" the demand from 9ariou" partie", e;amine the Prioritie" and i""ue @offer letter"@ to re"pe$ti9e partie". /he term" and $ondition" for "ale are al"o en$lo"ed with the @offer" Letter@ 2. 13out one third of the quantit& of material to 3e "old durin! the &ear i" offered to the a$tual u"er", "u3e$t to re!i"tration of demand. *. :or the 3alan$e quantit& to 3e "old at pri$e" fi;ed 3& pri$in! $ommittee, preferen$e i" !i9en to a$tual u"er" o9er trader". If there are no a$tual u"er", the material ma& 3e offered to trader" !i9in! preferen$e to re!i"tered trader" o9er other". F. :ir"t preferen$e i" !i9en to the a$tual u"er" for allotment of "$rap a!ain"t parti$ular $ate!or& of u"er". #$rap pro$e""in! unit" are !i9en "e$ond preferen$e for "u$h allotment". ?. /he amount re$ei9ed from the part& toward" ad9an$e pa&ment and "e$urit& depo"it i" forwarded to finan$e department 3& mar4etin! department after re$ordin! the detail" in the re!i"ter. ). Partie" are allowed to 9i"it the re"pe$ti9e lo$ation di"po"al" "ite, and in"pe$t the "$rap offered for "ale. D. -ar4etin! department prepare" "ale order for the partie" who ha9e a$$epted the offer. #ale order" are i""ued part& wi"e and $ate!or& wi"e i.e. indi9idual "ale order $o9er" "u$h $ate!orie" li4e 8 I "$rap, "teel "$rap, re(rolla3le, "la! and wa"te produ$t". 8. Ba"ed on the depo"it made 3& the part&, finan$e department intimate" to mar4etin! department a3out relea"e of requi"ite "$rap for "uppl&. Page 41 T)E STRUCTURE O5 T)E PROCESS O5 SAES A!D MAR*ETI!G Page 42 PRODUCTS PRI-1RY 5#PG8I:I8 P1R1-G/GR6 #G8ON71RYKBY(PRO7+8/# 8-O 5'OL'1/16 +NI/#( B#L, B##, R#P, 7#P et$ B#L -1R'G/IN2 -G/0O7 O: #GLLIN2 G(1+8/ION #1LG /GN7GR :ILG7 PRI8G #1LG B#L -1R'G/IN2 5-1IN #G8/ION6 #/GGL 80G-I81L I BYG(PRO7+8/# #L12# I C1#/G PRO7+8/# I7LG 1##G/# PRI8IN2 DEMA!D REGISTRATIO! O5 1S -ar4etin! department of B#L "ale" homo!eneou" "teel "$rap at fi;ed pri$e. :or thi" purpo"e the pro$edure for re!i"tration of demand and offer" i" a" 3elow: 1. Preferen$e for "ale of material !i9en to lo$al partie" and tho"e, whi$h are a$tual $u"tomer. -aterial i" not "old for trade. 2. #ale of material made to re(rollin! mill" and "$rap pro$e""in! unit" and the lot" of "ale 3etween them maintained at )D:**. *. Ba"ed on the a3o9e $on"ideration <offer letterQ i""ued to the part& offerin! a quantit&, whi$h ha" 3een lifted 3& them durin! the la"t pre$edin! &ear or allo$ated 3& the "tate indu"trie", 7epartment. In the offer letter part& i" ad9i"ed to $omplete $ommer$ial formalitie" e.!. "u3mi""ion of <7ie Re!i"tration 8ertifi$ate <et$. Page 43 Page 44 Selling o. Seconda+y 8 1y'P+oduct /hi" in9ol9e" a dire$t mar4etin! pro$e"". /he mana!ement of B#L in $on"ultation with the offi$ial of the mar4et de9elopment and $u"tomer "er9i$e department wor4 a" !roup for the "ale of the"e item". 7ifferent mode" of "ellin! are u"ed for the"e produ$t" MODE O5 SAE
Page 45 Fixed Price Sale Fixed Price Sale E-auction E-auction Tender Tender Inter Plant Transfer Inter Plant Transfer CHAPTER ' PRO(LEM FORMULATION <4( 1AC*GROU!D O5 T)E STUD7 Page 46 Bo4aro #teel Plant i" the lar!e"t "teel plant in India. It i" the fourth inte!rated pu3li$ "e$tor "teel plant in India 3uilt with #o9iet help. It i" hailed a" IndiaE" fir"t "wade"hi "teel plant, 3uilt with ma;imum indi!enou" $ontent in term" of equipment, material and 4now Hhow. Brand Bo4aro "i!nif& a""ured qualit& and deli9er&, offerin! 9alue for mone& to the $u"tomer". It i" "ituated in Jhar4hand. /he $ompan& ha" to identif& what all impro9ement "hould 3e done to in$rea"e the "ale" of it" "e$ondar& and 3&(produ$t" and where the produ$t" of B#L are la$4in! a" $ompared with the $ompetitor. <4$ RESEARC) PRO1EM
/hou!h #teel 1uthorit& of India Limited 5#1IL6 i" the leadin! "teel ma4er $ompan& in India, the $u"tomer" of "e$ondar& and 3&(produ$t" prefer other "teel $ompan& for pur$ha"in! "e$ondar& and 3&(produ$t" due to the hi!her pri$e of "e$ondar& and 3&(produ$t" of Bo4aro "teel plant. <4< SIG!I5ICA!CE O5 T)E STUD7 /o 4now the $u"tomer preferen$e of different "e$ondar& and 3&( produ$t" 3rand" with their $orre"pondin! pri$e" and "ellin! pro$edure" amon! $u"tomer" 0en$e on, to pro9ide information that will help #1IL to impro9e it" "er9i$e and 3e $ompetiti9e with other 3rand" 5/ata, G""ar, I"pat6 in the mar4et. Page 47 C)APTER D RESEARCH PROCESS Page 48 D4( O1JECTI9E O5 T)E STUD7 /o find the e;tent to whi$h pri$e affe$t the "ale" of "e$ondar& and 3&(produ$t". /o find the 9iew of $u"tomer" on the pri$in! and "ellin! method" of "e$ondar& and 3&(produ$t" adopted 3& B#L. /o find the rea"on" for 3rand preferen$e. /o find the e;tent to whi$h pri$e affe$t the "ale" of "e$ondar& and 3&(produ$t". /o find the "ellin! method" preferred 3& the $u"tomer". D4$ SCOPE O5 T)E STUD7 /he "tud& wa" $ondu$ted o9er a period of one and half month" from -id 1pril to -a&, 2010. /he "tud& in$lude" the $u"tomer" of "e$ondar& and 3&(produ$t" in Bo4aro di"tri$t D4< RESEARC) MET)ODOOG7 O5 T)E STUD7
/&pe of Re"ear$h( 7e"$ripti9e Re"ear$h 7ata #our$e( Primar& 7ata: Inter9iew, Oue"tionnaire". #e$ondar& 7ata: Internet, pre9iou" and $urrent re$ord" and ma!aAine" pu3li"hed 3& B#L. #amplin! te$hnique( 8on9enien$e "amplin! 7ata $olle$tion /ool"( Oue"tionnaire method 1rea of "tud&( Bo4aro di"tri$t Population( 8u"tomer" in the town" of Bo4aro di"tri$t #ample #iAe( 2? $u"tomer" 7ata anal&"i" and interpretation" u"in! per$enta!e anal&"i" Page 49 D4D DE5I!ITIO!S 1. PRI8IN2 #/R1/G2Y: Pri$in! "trate!& i" the pri$e plannin! that ta4e" into 9iew fa$tor" "u$h a" firmE" o9erall mar4etin! o3e$ti9e", $on"umer demand, produ$t attri3ute", $ompetitorE" pri$in! and, mar4et and e$onomi$ trend" OPERATI9E DE5I!ITIO!; /he term pri$in! "trate!& here mean" the lin4 3etween B#L o3e$ti9e", finan$ial !oal", 3rand promi"e, mer$handi"in! "trate!ie" and pri$e on the "hel9e" of #e$ondar& and B&( produ$t" ta4in! into $on"ideration the "trate!& of it" $ompetitor". 2. #1LG# #/R1/G2Y: #ale" "trate!& i" the planned approa$h( mana!ement, poli$& formation, pro"pe$t identifi$ation and qualifi$ation, "ale" pre"entation and order !eneration aimed at a$hie9in! a firmE" "ale" quota" or tar!et". OPERATI9E DE5I!ITIO!; /he "ale" "trate!& in thi" re"ear$h i" referred to a" the "ale" pre"entation, pro"pe$t identifi$ation, poli$& formation, order !eneration of B#L aimed at a$hie9in! B#L "ale" tar!et". /heir aim to a$hie9e "ale" tar!et" of #e$ondar& and B&( produ$t" i" "tudied here.
Page 50 CHAPTER ) DATA ANALYSIS AND INTERPRETATION Cla00i.ication o. cu0tome+0 Page 51 /rader -anufa$turer Pro$e""or other" ) 1F * 2 Inte+/+etation /he a3o9e !raph "how" the different $ate!or& of $u"tomer" for "e$ondar& and 3&(produ$t". -anufa$turer" were found to 3e hi!he"t amon! the different t&pe" of $u"tomer". Rea0on .o+ /u+cha0e .+om 1S Page 52 Oualit& 8heap tran"portation Lo$al mar4et pri$e 11 D ? 2 Inte+/+etation It wa" found from "ur9e& that mo"t of the $u"tomer" of "e$ondar& and 3&(produ$t" prefer to pur$ha"e from B#L 3e$au"e of lo$al mar4et and qualit&. Sati0.action 6ith +e0/ect to Guality Page 53 Ye" No 2* 2 Inte+/+etation -o"t of the $u"tomer" of "e$ondar& and 3&(produ$t" of Bo4aro #teel Plant are "ati"fied with the qualit& of the produ$t. Ty/e0 o. /+oduct0 /u+cha0ed by cu0tome+0 Page 54 #e$ondar& "teel B&(produ$t" #la! Idle a""et" 10 11 * 1 Inte+/+etation -o"t of the $u"tomer" of "e$ondar& and 3&(produ$t" in Bo4aro di"tri$t deal" with the "e$ondar& "teel and 3&(produ$t". /hou!h idle a""et" and "la! al"o !enerate hu!e re9enue to Bo4aro #teel Plant 3ut there are onl& few $u"tomer" of idle a""et" and #la! are in Bo4aro di"tri$t. 1+and .amilia+ity Page 55 Ye" No 18 D Inte+/+etation /he $u"tomer" of "e$ondar& and 3&(produ$t" are dealin! mainl& with two 3rand". -o"t of the $u"tomer" are dealin! with B#L and /1/1 "teel 3oth. #ome $u"tomer" are dealin! with B#L and I#P1/ "teel and G##1R "teel. Rea0on .o+ 0electing mo+e than one com/any Page 56 Low pri$e 0i!h qualit& Better "er9i$e 3etter "ellin! method" other" F D ? 1 1 Inte+/+etation /he dia!ram indi$ate" the rea"on for "ele$tin! more than one $ompan& for pur$ha"e of "e$ondar& and 3&(produ$t". -o"t of the $u"tomer" prefer due to hi!h qualit& of "e$ondar& and 3&(produ$t" in other "teel plant while "ome prefer other "teel plant 3e$au"e of 3etter "er9i$e that the& !et in other "teel plant". Di..e+ence in /+ice bet6een 1S and othe+ 0teel /lant0 Page 57 Ye" No 20 ? Inte+/+etation /hi" $learl& indi$ate" that there i" a pri$e differen$e 3etween B#L "e$ondar& and 3&(produ$t" to other "teel plant". 0en$e, to 3e in $ompetition with other "teel plant" "e$ondar& and 3&(produ$t", B#L ha" to de$rea"e it" pri$e of produ$t". #in$e, $o"t $on"$iou" $u"tomer" alwa&" !o for a 3rand that "er9e" hi" purpo"e at a minimum $o"t. Di..icultie0 6hile dealing 6ith 1S Page 58 Ye" No 1F 11 Inte+/+etation -o"t of the $u"tomer" find diffi$ultie" while dealin! with Bo4aro #teel Plant. -o"t of them find la$4 of "in!le window "&"tem while dealin! with B#L. /hi" lead" to "low pro$e"" of tradin!. #ome $u"tomer" al"o want 3etter $u"tomer "er9i$e. Any bette+ 0elling ado/ted by othe+ 0teel /lant0H Page 59 Ye" No * 22 Inte+/+etation -o"t of the $u"tomer" 3elie9e that the $urrent "ellin! method" adopted 3& Bo4aro #teel Plant are !ood. Onl& * $u"tomer" found 3etter "ellin! method" adopted 3& other "teel plant". Com/lain +egi0te+ed Page 60 Ye" No 11 1F Inte+/+etation -o"t of the $u"tomer" do not $omplain a3out the pro3lem the& fa$ed while tradin! with B#L 3e$au"e the& donEt feel mana!ement will 3e "eriou" a3out their pro3lem". #o, $u"tomerE" $onfiden$e toward" mana!ement of B#L "hould 3e in$rea"ed. Com/laint0 e,ecuted Page 61 Ye" No D F Inte+/+etation Onl& 11 $u"tomer" "aid that the& re!i"tered their $omplaint" a3out the pro3lem the& fa$ed in tradin! with B#L. Out of whi$h D "aid that their pro3lem" are e;e$uted. #o, B#L i" friendlier toward" $u"tomer". Ty/e0 o. by'/+oduct0 /u+cha0ed Page 62 BenAene toluene #.B.oil 0ard medium pit$h L.#. Naptha 9 ? * 1 2 1nthra$ene oil 1mmonium "ulphate e;tra hard pit$h 2 9 1 Inte+/+etation /o !et the information a3out t&pe" of 3&(produ$t" pur$ha"ed 3& $u"tomer" i" al"o 9er& important. #in$e, ea$h $u"tomer 3u&" different t&pe" of 3&(produ$t". -o"t of the $u"tomer" 3u& more than one 3&(produ$t".
Page 63 !o4 O. yea+0 6hile t+ading Below 2 &ear" 2&ear"(F&ear" a3o9e F &ear" F ? 1)
Inte+/+etation Of the $u"tomer" of Bo4aro "teel plant "e$ondar& and 3&(produ$t" mo"t of them are tradin! with more than F&ear". /hi" ma& 3e the rea"on for the lar!e $u"tomer 3a"e of B#L in "e$ondar& and 3&(produ$t" mar4et. Page 64 P+icing method /+e.e++ed :i;ed pri$e e(au$tion F 21 Inte+/+etation -o"t of the $u"tomer" prefer e(au$tion 3e$au"e it i" ea"& and fa"t method for tradin! unli4e other method". 8u"tomer" !et their 9alue for the time the& "pent in tradin! in e(au$tion Page 65 Mode o. t+an0/o+tation Railwa&" roadwa&" D 18 Inte+/+etation :rom the "ur9e& it wa" found that mo"t of the $u"tomer" of B#L are u"in! roadwa&" for tran"portin! material" from Bo4aro "teel plant 3e$au"e mo"t of them are pur$ha"in! "e$ondar& "teel and that are mo"tl& tran"ported throu!h roadwa&" in lo$al mar4et. Page 66 Main bene.it0 +ecei-ed .+om 1S Oualit& Pri$e 19aila3ilit& /ran"portation di"$ount "tru$ture 1? * 9 D F Inte+/+etation /he main 3enefit" $u"tomer" re$ei9e while tradin! with Bo4aro "teel plant i" qualit& of "e$ondar& and 3&(produ$t". 19aila3ilit& of produ$t" i" 2 nd
maor 3enefit" that are re$ei9ed 3& $u"tomer". -o"t of them re$ei9e a $om3ination of 3enefit" from B#L. Page 67 Doe0 -olume limit 0ati0.y need0 o. cu0tome+0H Ye" No #omewhat D 1* ?
Inte+/+etation /he a3o9e !raph "how" the "ati"fa$tion le9el of $u"tomer" re!ardin! 9olume limit for the pur$ha"e of "e$ondar& and 3&(produ$t". -o"t of the $u"tomer" are not "ati"fied with the 9olume limit of produ$t". Page 68 E,/e+ience 6ith ma+2eting /e+0onnel 2ood Bad G;$ellent 22 2 1 Inte+/+etation /hi" indi$ated the e;perien$e of $u"tomer" with the mar4etin! per"onnel while tradin! with B#L. -o"t of the $u"tomer" are ha9in! !ood e;perien$e with the mar4etin! per"onnel. :ew $u"tomer" are ha9in! 3ad e;perien$e with mar4etin! per"onnel. Page 69 Acce00ibility o. In.o+mation about bid0 to be ta2en /lace 0i!hl& di""ati"fied di""ati"fied neutral "ati"fied hi!hl& "ati"fied 2 F ? 1* 1 Inte+.e+ence /he a$$e""i3ilit& of the information a3out the 3id" to 3e ta4en pla$e i" 9er& important 3e$au"e it in$rea"e" the num3er of $u"tomer" in the 3id" and hen$e mar4et 3e$ome" $ompetiti9e. -o"t of the $u"tomer" are "ati"fied a3out the a$$e""i3ilit& of the information. Page 70 O+de+ handling /+ocedu+e o. 1S 2ood 3ad poor e;$ellent 20 2 2 1 Inte+/+etation :rom the "ur9e& it wa" found that mo"t of the $u"tomer" of Bo4aro "teel plant are happ& with the order handlin! pro$edure" of Bo4aro "teel plant. #in$e, there i" a lot of $ompetition in mar4et for "ellin! of "e$ondar& and 3&( produ$t". #o, for 3ein! in the $ompetition with other "teel plant" B#L i" ha9in! !ood order handlin! pro$edure and that will ma4e hi" $u"tomer" happ&. Page 71 Sati0.action 6ith /+ice o. 0econda+y and by'/+oduct0 Ye" no 12 1* Inte+/+etation Pri$e i" one of the mo"t important fa$tor" whi$h $u"tomer" are ta4in! in $on"ideration while pur$ha"in! produ$t". :rom the "ur9e& it wa" found that $u"tomer" are not happ& with the pri$e of the produ$t. 0en$e, B#L "hould de$rea"e it" pri$e of the produ$t". Page 72 Sati0.action 6ith the cu++ent 0elling method0 o. 1S Ye" no 21 F
Inte+/+etation /he $u"tomer" of "e$ondar& and 3&(produ$t" in Bo4aro "teel plant are "ati"fied with the $urrent "ellin! method" of Bo4aro "teel plant. #ome of the $u"tomer" are not "ati"fied with the $urrent "ellin! method" of B#L 3ut the& are not a3le to !i9e proper rea"on for their di""ati"fa$tion. Page 73 O-e+all E,/e+ience 6hile dealing 6ith 1S 0i!hl& di""ati"fied di""ati"fied neutral "ati"fied hi!hl& "ati"fied 2 * 8 10 2 Inte+/+etation /he a3o9e !raph "how" the e;perien$e of $u"tomer" while dealin! with Bo4aro "teel plant. -o"t of the $u"tomer" "aid that the& are "ati"fied with the e;perien$e while tradin! with B#L. But, there are a lar!e num3er of $u"tomer" who al"o "aid that the& are not happ& with B#L. Page 74 CHAPTER * SUMMARY OF FINDINGS Page 75 SUMMAR7 O5 5I!DI!GS 1. -o"t of the $u"tomer" 3elon! to the $ate!or& of manufa$turer" i.e. the& are u"in! "e$ondar& and 3&(produ$t" of B#L a" a raw material. 2. -aorit& of $u"tomer" prefer to pur$ha"e "e$ondar& and 3&(produ$t" from Bo4aro "teel Plant 3e$au"e of lo$al mar4et and qualit& 3ut the& find pri$e i" hi!her $ompared to the qualit&. *. -aorit& of the $u"tomer" are "ati"fied with the qualit& of the "e$ondar& and 3&(produ$t" of B#L and that i" a 3i! ad9anta!e for B#L. F. Of the four maor t&pe" of produ$t" produ$ed 3& B#L in #e$ondar& and 3&(produ$t" di9i"ion, mo"t of the $u"tomer" are pur$ha"in! "e$ondar& "teel and 3&(produ$t" from B#L. ?. -o"t of the $u"tomer" deal with Bo4aro "teel plant and /1/1 "teel for pur$ha"e of "e$ondar& and 3&(produ$t". ). Low pri$e, 3etter "er9i$e and hi!h qualit& are the maor $on$ern" that the $u"tomer" loo4" into for preferrin! a parti$ular "teel plant for "e$ondar& and 3&(produ$t". D. -aorit& of $u"tomer" re"ponded that other "teel plant" are pro9idin! "e$ondar& and 3&(produ$t" at a lower rate. 8. -o"t of the 8u"tomer" re"ponded that the& find diffi$ultie" while dealin! with B#L. Page 76 9. G(au$tion i" the mo"t relia3le "ellin! method and maorit& of $u"tomer" are happ& with it. /he other method" of "ellin! adopted 3& B#L li4e tender, fi;ed pri$e are "ame a" the other "teel plant and $u"tomer" are "ati"fied with tho"e "ellin! method". 10.-o"t of the $u"tomer" donEt re!i"ter $omplain a3out the pro3lem the& fa$ed durin! pur$ha"e 3ut maorit& of $u"tomer" who re!i"tered their $omplain !et "olution for that. #o, B#L ha" to in$rea"e the $onfiden$e of $u"tomer" on them. 11. 1mon! 3&(produ$t" $ate!or& of produ$t" BenAene, /oluene and 1mmonium "ulphate are ha9in! hi!he"t num3er of $u"tomer". 12.-o"t of the $u"tomer" are lo&al to B#L 3e$au"e mo"t of the $u"tomer" are dealin! with Bo4aro "teel plant for more than F &ear". 1*.Roadwa&" are the mo"t $ommon mode of tran"portation u"ed 3& $u"tomer" 3e$au"e all 3elon!" to lo$al mar4et. #ome of the $u"tomer" are u"in! Railwa&" for the tran"portation 3e$au"e 3&(produ$t" are mainl& tran"ported throu!h railwa&". 1F.Oualit&, a9aila3ilit& and tran"portation are main 3enefit" that the $u"tomer" of "e$ondar& and 3&(produ$t" of B#L re$ei9e from Bo4aro "teel plant. Onl& few $u"tomer" re"ponded that pri$e and di"$ount are the 3enefit" the& re$ei9e from B#L. 1?.-o"t of the $u"tomer" are not happ& with the 9olume limit that the& re$ei9e from B#L. Page 77 1).-o"t of the $u"tomer" re"ponded that the& are "ati"fied with the information pro9ided 3& B#L a3out the 3id" to 3e ta4en pla$e 3ut few $u"tomer" are al"o not happ& with the information pro9ided 3& B#L. 1D.-aorit& of the $u"tomer" re"ponded that the& are happ& with the order handlin! pro$edure" of B#L. 18.-aorit& of the $u"tomer" re"ponded that that the& are "ati"fied with the o9erall e;perien$e while dealin! with Bo4aro #teel Plant. Page 78 CHAPTER + CONCLUSIONS AND RECOMMENDATION I4 CO!CUSIO!S A!D RECOMME!DATIO! /he main i""ue atta$hed with Bo4aro #teel Plant "e$ondar& and 3&(produ$t" i" that mo"t of the $u"tomer" find" it" pri$e hi!her than the other 3rand" of Page 79 "e$ondar& and 3&(produ$t" a9aila3le in the mar4et. #in$e, $u"tomer" are now $on"$iou" a3out $o"t $uttin! mea"ure" "o the& other 3rand" o9er B#L. Lo$al mar4et i" one of the mo"t important ad9anta!e" than B#L i" eno&in! o9er a period of time 3ut, due to "et up of new "teel plant" in near3& pla$e" few &ear" from now it will no lon!er 3e an ad9anta!e for B#L. #o, B#L "hould ha9e to wor4 on de$rea"in! the pri$e of it" "e$ondar& and 3&(produ$t" and al"o in$rea"e it" qualit&. #in$e, from the "ur9e& it wa" found that mo"t of the $u"tomer" are pur$ha"in! "e$ondar& "teel and 3&(produ$t" from B#L. #o, B#L "hould ha9e to wor4 on the in$rea"e of produ$tion of the"e produ$t" and al"o de$rea"e the pri$e of tho"e produ$t" to 3e $ompetiti9e in the mar4et. -o"t of the $u"tomer" are al"o pur$ha"in! "e$ondar& and 3&(produ$t" from /1/1 "teel 3e$au"e of the lower pri$e and ea"& method of pur$ha"e althou!h /1/1 "teel i" far from Bo4aro di"tri$t 3e$au"e of 3etter "er9i$e. #o, Bo4aro "teel plant "hould ha9e to wor4 on to pro9ide 3etter "er9i$e for $u"tomer". #in$e, maorit& of $u"tomer" donEt re!i"ter $omplain a3out the pro3lem the& fa$ed durin! tradin! althou!h mo"t of the pro3lem that are re!i"tered !ot e;e$uted. 0en$e, B#L "hould ha9e to wor4 on to impro9e $onfiden$e of $u"tomer" on them. BenAene, /oluene and 1mmonium "ulphate are ha9in! hi!he"t $on"umption amon! 3&(produ$t". #o, produ$t" of mainl& the"e 3&(produ$t" ha9e to 3e in$rea"ed. /he B#L "e$ondar& and 3&(produ$t" $u"tomer" are ha9in! faith in the qualit& of the"e produ$t". #o, thi" "hould 3e maintained at an& $o"t and B#L "hould ha9e to de$rea"e the pri$e of it" "e$ondar& and 3&(produ$t" to maintain it" $u"tomer 3a"e. Page 80 CHAPTER , (I(LIOGRAPHY 1I1IOGRAP)7 1oo20 +e.e++ed Page 81 'otler Philip, 'eller 'el9in, 'o"h& 13raham, Jha -ithile"hwar= -ar4etin! -ana!ement= New 7elhi, Pu3li"hed 3& 7orlin! 'inder"le& 5India6 P9t. Ltd.
-alhotra N.'.,-ar4etin! Re"ear$h( 1n applied orientation, New 7elhi, Prenti$e 0all of India Pri9ate Ltd. -a!aAine pu3li"hed 3& #1IL /rainin! manual Boo4" of or!aniAation :eb0ite0 +e.e++ed :::.sa"(.%o."n :::.mea(;&n%"on.%om Page 82 CHAPTER - ANNE.URE JUESTIO!!AIRE 1. In whi$h $ate!or& of $u"tomer do &ou 3elon!S a6 /rader 36 -anufa$turer $6 Pro$e""or d6 Other" 2. Ch& do &ou prefer to pur$ha"e from B#LS Page 83 a6 Oualit& 36 8heap tran"portation $6 Lo$al mar4et d6 pri$e *. 1re &ou "ati"fied with the qualit& of the produ$tS a6 &e" 36 no F. If TNoE then what would 3e the rea"on for "u$h a de$i"ionS a6 0i!h $o"t 36 Low qualit& $6 Poor di"tri3ution d6 Other"UUUUUUUUUUU5plea"e "pe$if&6 ?. Chat t&pe of produ$t" do &ou pur$ha"e from B#LS a6 #e$ondar& "teel 36 B&(produ$t" $6 #la! d6 Idle a""et" ). 1re &ou dealin! with an& other $ompan& other than B#LS a6 Ye"UUUUUUUUUUUU. 5plea"e "pe$if& the name6 36 No D. If TYe"E then what would 3e the rea"on for "ele$tin! other $ompan&S a6 Low pri$e Page 84 36 0i!h qualit& $6 Better "er9i$e d6 Better "ellin! method" e6 Other"UUUUUUUUUUUUUUU. 5plea"e "pe$if&6 8. 7o &ou find an& differen$e in pri$e of "e$ondar& and 3&(produ$t" of B#L with other plant" that &ou are dealin! withS a6 Ye" 36 No 9. 0a9e &ou fa$ed an& diffi$ultie" while dealin! with the B#LS a6 Ye"UUUUUUUUUUUUUU 5Plea"e "pe$if& the rea"on6 36 No 10.7o &ou find 3etter "ellin! method" adopted 3& other plant" for "ellin! of "e$ondar& and 3&(produ$t"S a6 Ye"UUUUUUUUUUUUUU.. 5plea"e name that method6 36 no 11. 7id &ou $omplain a3out the pro3lem fa$edS a6 Ye" 36 No 12.7id $omplain" !et e;e$utedS a6 Ye" 36 No 1*.Chi$h t&pe" of 3&(produ$t" do &ou deal withS a6 BenAene 36 /oluene Page 85 $6 #.B. Oil d6 0ard medium pit$h e6 G;tra hard pit$h f6 L.#. Naphtha !6 1nthra$ene oil h6 1mmonium "ulphate 1F. #in$e when &ou are dealin! with B#LS a6 Below 2 &ear" 36 2&ear"(F &ear" $6 13o9e F &ear" 1?.Chat t&pe of pri$in! method preferred 3& &ou while &ou are dealin! with the B#LS a6 :i;ed pri$e 36 G( au$tion 1).Chat mode of tran"portation are &ou u"in!S a6 Railwa&" 36 Roadwa&" 1D.Chat are the main 3enefit" whi$h &ou re$ei9e from B#LS a6 Oualit& 36 Pri$e $6 19aila3ilit& d6 /ran"portation e6 7i"$ount "tru$ture Page 86 18.7oe" the 9olume limit of "e$ondar& produ$t", for 3iddin!, help "ati"f& &our need"S Ye" No #omewhat 19.Chat i" &our e;perien$e with the mar4etin! per"onnelS 2ood Bad G;$ellent 20.O9erall how will &ou rate the a$$e""i3ilit& a3out 3id" to 3e ta4en pla$eS 5Ran4 on "$ale on 1(? in whi$h 1 mean" hi!hl& di""ati"fied and ? repre"ent" hi!hl& "ati"fied6 1 2 * F ? 21.0ow do &ou rate the order handlin! pro$edure of the B#LS 2ood Bad Poor G;$ellent 22.1re &ou "ati"fied with the pri$e of the "e$ondar& and 3&(produ$t"S a6 Ye" 36 No 2*.1re &ou "ati"fied with the $urrent "ellin! method" of B#LS a6 Ye" 36 NoUUUUUUUUUUUUUU5plea"e "pe$if& the rea"on6 2F.O9erall how will &ou rate &our e;perien$e while dealin! with the B#LS 5Ran4 on "$ale on 1(? in whi$h 1 mean" hi!hl& di""ati"fied and ? repre"ent" hi!hl& "ati"fied6 1 2 * F ? Page 87 1n& "u!!e"tion" for further impro9ement: /han4 &ou for &our "in$ere $o(operation. N1-G O: /0G 8+#/O-GR( UUUUUUUUUUUUUUUUUUU PL18G( UUUUUUUUUUUUUUUUUUUUUUUUUUUU. 71/G( UUUUUUUUUUUUUUUUUU.... 8ON/18/ NO. ( UUUUUUUUUUUUUUU
ABBREVIATION 1. #1IL ( #teel 1uthorit& of India Limited. 2. /I#8O ( /1/1 Iron and #teel 8ompan&. *. -G8ON ( -etrolo!i$al I Gn!ineerin! $on"ultant"E ltd. F. 0#8L ( 0indu"tan "teel wor4" $on"ultant" Ltd. ?. N-78 ( National -inin! 7e9elopment 8orporation ltd. Page 88 ). R78I# ( Re"ear$h and 7e9elopment 8entre for Iron and #teel. D. 8G/ ( 8entre of Gn!ineerin! and /e$hnolo!&. 8. 8P/I ( 8entral Power /rainin! In"titute. 9. -R7 ( -ar4etin! Re$o9er& 7epartment. 10. B:2# ( Bla"t :urna$e 2ranulated #la!. Page 89