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Project Report
(Production process and Marketing Strategies)

(Balbir Syal)

BATCH (MBA) 2014 - 2016

I, Balbir Syal hereby declare that this project is the record of authentic
Work carried out by me during the period from 15th Dec 2014 to 15th Jan 2015 and
Has not been submitted earlier to any university or institute for the award of any
Degree /diploma etc.

Name - Balbir Syal

Date -

This is to certify that Mr. Balbir Syal has completed WIP under my guidance.

Date of submission: ______________________.

(Internal Guide)

This project has been an honest and dedicated attempt to make the analysis on
Marketing material as authentic as it could. And I earnestly hope that it provides
Useful and workable information and knowledge to any person reading it.
During this period, I had the pleasure of working closely with accomplished
Organization people who shared with me their experience and helped me in
Completion of my research.
I express my sincere thanks to my project guides and my institute faculty for guiding
Lastly I am grateful to my parents who have been my mentors and motivators. I
Am so thankful to all my batch mates who have been directly or indirectly involved
In successful completion of this project.

Introduction of Steel

Steel is an alloy of iron and carbon that is widely used in construction and other
applications because of its high tensile strength and low cost.

Further refinements in the process, such as basic oxygen steel making (BOS), largely
replaced earlier methods by further lowering the cost of production and increasing the
quality of the metal. Today, steel is one of the most common materials in the world, with
more than 1.3 billion tons produced annually. It is a major component in buildings,
infrastructure, tools, ships, automobiles, machines, appliances, and weapons. Modern
steel is generally identified by various grades defined by assorted standards

Related Materials

The carbon content of steel is between 0.002% and 2.1% by weight for plain iron-carbon
alloys. These values vary depending on alloying elements such as manganese,
chromium, nickel, and so on. Too little carbon content leaves (pure) iron quite soft,
ductile, and weak. Carbon contents higher than those of steel make an alloy commonly
called pig iron that is brittle and not malleable. Alloy steel is steel to which additional
alloying elements have been intentionally added to modify the characteristics of steel.

Common alloying elements include:

manganese, nickel,chromium, molybdenum, boron, titanium, vanadium, and niobium.
Additional elements may be present in steel: manganese, phosphorus, sulfur, silicon, and
traces of oxygen, nitrogen, and aluminum.

Steel Production

When iron is smelted from its ore, it contains more carbon than is desirable. To become
steel, it must be reprocessed to reduce the carbon to the correct amount, at which point
other elements can be added. In modern facilities, this liquid is then continuously cast
into long slabs or cast into ingots. Approximately 96% of steel is continuously cast, while
only 4% is produced as ingots.
The ingots are then heated in a soaking pit and hot rolled into slabs, blooms, or billets.
Slabs are hot or cold rolled into sheet metal or plates. Billets are hot or cold rolled into
bars, rods, and wire. Blooms are hot or cold rolled into structural steel, such as Ibeams and rails. In modern steel mills these processes often occur in one assembly line,
with ore coming in and finished steel coming out. Sometimes after steels final rolling it is
heat treated for strength, however this is relatively rare.

Steel industry

It is common today to talk about "the iron and steel industry" as if it was a single entity,
but historically they were separate products. The steel industry is often considered an
indicator of economic progress, because of the critical role played by steel in
infrastructural and overall economic development.
In 1980, there were more than 500,000 U.S. steelworkers. By 2000, the number of
steelworkers fell to 224,000.
The economic boom in China and India has caused a massive increase in the demand for
steel in recent years. Between 2000 and 2005, world steel demand increased by 6%.
Since 2000, several Indian and Chinese steel firms have risen to prominence like Tata
Steel (which bought Corus Group in 2007), Shanghai Baosteel Group Corporation
and Shagang Group. Arcelor Mittal is however the world's largest steel producer.
In 2005, the British Geological Survey stated China was the top steel producer with about
one-third of the world share; Japan, Russia, and the US followed respectively.
In 2008, steel began trading as a commodity on the London Metal Exchange. At the end
of 2008, the steel industry faced a sharp downturn that led to many cut-backs.

The world steel industry peaked in 2007. That year, ThyssenKrupp spent $12 billion to
build the two most modern mills in the world, in Calvert, Alabama and Sepetiba, Rio de
Janeiro, Brazil. The worldwide Great Recession starting in 2008, however, sharply
lowered demand and new construction, and so prices fell. ThyssenKrupp lost $11 billion
on its two new plants, which sold steel below the cost of production. Finally in 2013,
ThyssenKrupp offered the plants for sale at under $4 billion.


Steel is one of the world's most-recycled materials, with a recycling rate of over 60%
globally; in the United States alone, over 82,000,000 metric tons (81,000,000 long tons)
was recycled in the year 2008, for an overall recycling rate of 83%.

Global Scenario

In 2013 the world crude steel production reached 1606 million tons (mt) and
showed a growth of 3% over 2012. (Source: World Steel Association or WSA)

China remained the worlds largest crude steel producer in 2013 (779 mt)
followed by Japan (111 mt), the USA (87 mt) and India (81 mt) at the 4th position.

WSA has projected Indian steel demand to grow by 3.3% in 2014 as compared to
global steel use growth of 3% and Chinese growth of 3.1%. For 2015, further recovery
is projected for world (3.3%) and India (4.5%) and a slowing down for China (2.7%).

Per capita finished steel consumption in 2013 is estimated at 225 kg for world and
515 kg for China.

Domestic Scenario

The Indian steel industry has entered into a new development stage from 2007-08,
riding high on the resurgent economy and rising demand for steel.

Rapid rise in production has resulted in India becoming the 4th largest producer of
crude steel and the largest producer of sponge iron or DRI in the world.

At the time of its release, the National Steel Policy 2005 had envisaged steel
production to reach 110 million tons by 2019-20.

The National Steel Policy 2005 is currently being reviewed keeping in mind the
rapid developments in the domestic steel industry (both on the supply and demand
sides) as well as the stable growth of the Indian economy since the release of the Policy
in 2005.


Steel industry was delicensed and decontrolled in 1991 & 1992 respectively.

Today, India is the 4th largest crude steel producer of steel in the world.

In 2013-14, production for sale of total finished steel (alloy + non alloy) was
87.67 mt.
Production for sale of Pig Iron in 2013-14 was 7.95 mt.

India is the largest producer of sponge iron in the world with the coal based route
accounting for 88% of total sponge iron production in the country.

Last five year's production for sale of pig iron, sponge iron and total finished steel
(alloy + non-alloy) are given below:

Indian steel industry : Production for Sale (in million tons)







Pig Iron






Sponge Iron






Total Finished Steel (alloy +

non alloy)






Source: Joint Plant Committee

Demand - Availability Projection

Demand Availability of iron and steel in the country is projected by Ministry of

Steel in its Five Yearly Plan documents.
Gaps in availability are met mostly through imports.
Interface with consumers by way of a Steel Consumers Council exists, which is
conducted on regular basis.
Interface helps in redressing availability problems, complaints related to quality.

Steel Prices

Price regulation of iron & steel was abolished on 16.1.1992. Since then steel
prices are determined by the interplay of market forces.

Domestic steel prices are influenced by trends in raw material prices, demand
supply conditions in the market, international price trends among others.

An Inter-Ministerial Group (IMG) is functioning in the Ministry of Steel, under

the Chairmanship of Secretary (Steel) to monitor and coordinate major steel
investments in the country.

The Government earlier took various fiscal and other measures for stabilizing
steel prices like significant reduction in import duties on steel, major raw materials,
including mineral products and ores and concentrates in last few years.

For ensuring quality of steel several items have been brought under a quality
control order issued by the Government.

Further, a Steel Price Monitoring Committee has been constituted by the

Government with the aim to monitor price rationalization, analyze price fluctuations
and advice all concerned regarding any irrational price behavior of steel commodity.

Imports & Exports


Iron & steel are freely importable as per the extant policy.

Last five years import of total finished steel (alloy + non alloy) is given below:

Indian steel industry : Imports (in million tons)


Total Finished Steel (alloy + non


Source: Joint Plant Committee












Iron & steel are freely exportable.

Last five years export of total finished steel (alloy + non alloy) is given below:-

Indian steel industry : Exports (in million tons)


Total Finished Steel (alloy + non












Source: Joint Plant Committee

Opportunities for growth of Iron and Steel in Private Sector

The New Industrial Policy Regime

The New Industrial policy opened up the Indian iron and steel industry for private
investment by
(a) Removing it from the list of industries reserved for public sector and
(b) Exempting it from compulsory licensing. Imports of foreign technology as well as
foreign direct investment are now freely permitted up to certain limits under an
automatic route.

(c)Ministry of Steel plays the role of a facilitator, providing broad directions and
assistance to new and existing steel plants, in the liberalized scenario.

The Growth Profile

(i) Steel: The liberalization of industrial policy and other initiatives taken by the
Government have given a definite impetus for entry, participation and growth of the
private sector in the steel industry. While the existing units are being
modernized/expanded, a large number of new steel plants have also come up in
different parts of the country based on modern, cost effective, state of-the-art
technologies. In the last few years, the rapid and stable growth of the demand side
has also prompted domestic entrepreneurs to set up fresh Greenfield projects in
different states of the country.
Crude steel capacity was 102 mt in 2013-14 and India, the 4th largest producer of
crude steel in the world, has to its credit, the capability to produce a variety of grades
and that too, of international quality standards. The country is expected to become
the 2nd largest producer of crude steel in the world by 2015-16, provided all
requirements for creation of fresh capacity are adequately met.
(ii) Pig Iron: India is also an important producer of pig iron. Post-liberalization, with
setting up several units in the private sector, not only imports have drastically
reduced but also India has turned out to be a net exporter of pig iron. The private
sector accounted for 93% of total production for sale of pig iron in the country in
2013-14. The production for sale of pig iron has increased from 1.6 mt in 1991-92 to
7.95 mt in 2013-14.
(iii) Sponge Iron: India is the worlds largest producer of sponge iron with a host of
coal based units, located in the mineral-rich states of the country. Over the years, the
coal based route has emerged as a key contributor and accounted for 88% of total
sponge iron production in the country. Capacity in sponge iron making too has
increased over the years and stands at around 45 mt.

Vardhman Special Steel Limited

Overview of Vardhman Company:-

The Beginning:

The story of Vardhman Special Steels Ltd. began back in the year 1973 with the
commissioning of Oswal Steels at Faridabad, with an initial capacity to produce
50,000 metric tons of special & alloy steels.

The Turning Points:

The year 1986 was a major turning point in the history of Vardhman Special
Steels Limited. The Company acquired another plant in Ludhiana, which was later
upgraded to an installed capacity of 1, 00,000 metric tons per annum.

In 1995, VSSL (then known as VSS) installed an ultra-modern Steel Melting

Shop comprising of a 30 ton UHP Electric Arc Furnace and a 9/6 meter Bloom
Caster with Electromagnetic Stirrer.

In 2000, a Vacuum Degassing (V.D) System capable of reaching a vacuum of less

than 1.0 mill bar was commissioned, further improving the already laudable
manufacturing capabilities of the company. In 2001 Addition of Bright Bar
Facility was added too.

2013 proved to be yet another dynamic year for VSSL. VSSL installed a rolling
capacity of 1, 50,000 metric tons with complete automation, 33 TPH hearth type
reheating furnace. Reversible 2 high shift able stand with bar manipulator. In the
same year VSSL installed Magnaflux leakage testing system (Dr. Foerster
Germany), and procured Ultrasonic Testing from (Olympus, Canada).

Contributor in Economic Development

The Vardhman Group, driven by faith in the economy development of the country,
specifically in core industrial sector, ventured into the steel industry back in the year
1972. Since then, the company has exponentially expanded its operations on all fronts,
attaining a capacity of 150,000 metric tons per annum producing high-grade hot rolled
bars for varied applications.
Placed among the leading producers of Special and Alloy Steels, Vardhman Special Steels
Limited caters to diverse requirements of hot rolled bars for Engineering, Automotive,
Tractor, Bearing and Allied Industries. The company, for more than 50 years, has
emphasized on total customer focus in all operational areas, monitoring and nurturing
relationships with all clients and business associates.

Vardhman Special Steels Limited incorporates some of the most advanced manufacturing
facilities with equally reliable support facilities. The plant has well-conceived layout plan
with modern material handling facilities-all designed for economic processing of
materials and human skills. Vardhman ability to adopt changes in technology is evident in
its extensive use of automation and contemporary concepts.
Leveraging state-of-the-art manufacturing facilities and vast experience in the domain,
the company has an extensive list of clientele, including various globally renowned
corporations, such as General Motors, Hyundai Motors, Caterpillar, JCB, Siemens, Ashok
Leyland, Honda, Suzuki, Yamaha, Piaggio Vehicles, and Lucas TVS, among various

Production Process of Vardhman Special Steel Limited.

Steps in Production of Steel


Raw Material

Iron ore


UHP Electric Arc Furnace (30 tons)

The Electric Arc Furnace (EAF) uses only cold scrap metal. The process was originally
used solely for making high quality steel, such as those used for machine tools and spring
steel, as it gave more precise control over the composition. Today, however, it is also
employed in making more widely used steels, including alloy and stainless grades as well
as some special carbon and low-alloy steels. Modern electric arc furnaces can make up to
150 tons of steel in a single melt.
The electric arc furnace consists of a circular bath with a movable roof, through which
three graphite electrodes can be raised or lowered. At the start of the process, the
electrodes are withdrawn and the roof swung clear. The steel scrap is then charged into
the furnace from a large steel basket lowered from an overhead travelling crane. When
charging is complete, the roof is swung back into position and the electrodes lowered into
the furnace. A powerful electric current is passed through the charge, an arc is created,
and the heat generated melts the scrap. Lime and fluorspar are added as fluxes and
oxygen is blown into the melt. As a result, impurities in the metal combine to form a
liquid slag.
Samples of the steel are taken and analyzed to their check composition and, when the
correct composition and temperature have been achieved, the furnace is tapped rapidly
into a ladle. Final adjustments to precise customer specification can be made by adding
alloys during tapping or, subsequently, in a secondary steel making unit.

Ladle Refining Furnace

After tapping from electrical arc furnace, the ladle furnace is put on LF refining position.
LF refining is conducted through arc heating and argon blowing. During this process, the
steel deoxidization, desulfurization, the adjustment of steel temperature and chemical
composition are completed. In primary slag, there is no vacuum function in LF, but room
of vacuum device may be obligated in LF zone for future development. The ladle
containing qualified liquid steel is hoisted to a ladle rotator of continuous casting
machine and then it taps from the base of the receiving ladle to tundish, after that, it drops
down into crystallizer to cast into bloom, which are severally straightening and cut to set
dimensions and sent to a cooling bed through a roller table. It turns into qualified bloom.

Vacuum Degassing

Depending on the steel grades to be produced, various after treatment methods and
process combinations can now-a-days be applied to modern steel making shops. For
some grades of steel vacuum treatment has to be given to the steel to achieve strict
quality parameters. Various processes have been developed using vacuum.
Vacuum degassing is practiced in the steel industry for several purposes. They are: a. to remove hydrogen
b. to improve cleanliness by removing part of the oxygen
c. To produce steel of low carbon content (< 0.03%)
d. to produce steels to close chemical composition ranges (including deoxidizers),

e. To control pouring temperatures, especially for continuous casting operations.

Bloom Caster
Also in continuous casting of billets and especially also in case of blooms the secondary
cooling system has an important role to play for the product quality and the productivity
of the machine.
It is common in most billet casting machines that full cone nozzles are installed in the
roller gaps below the foot rollers where one nozzle on each side covers the total strand
width so that only four nozzles are needed to cover the entire strand surface at one roller
gap level.
The particular nozzle flow rate depends on the location wherein the machine. Larger flow
nozzles are used in the upper zones with decreasing nozzle flows further down in the


The Marketing department looks after the following various marketing activities,
ensuring to accomplish the companys vision & mission goals.

Brand development

Feasibility studies
Market research

Latest market trends & technology for its products

Competitor market studies

Exploring new market

Planning and implementing a marketing strategy

Developing creative advertisement campaign and promotional literatures

Selecting and canalizing advertisement campaign through various
appropriate media
Public relations activities

Organizing exhibitions
Seminars, etc.

Marketing strategies
Marketing strategy is the goal of increasing sales and achieving a sustainable competitive
advantage. First of all they should to know their market competitor what they are doing n
then after know their strategy price target market product. Marketing strategy includes all
basic and long-term activities in the field of Vardhman as a Alloy steel company also use
various marketing strategies to aware its customers and market about its product. The
various marketing strategies which are using by the company are:

Exhibition & Trade faire

Direct interaction with potential customers
Hoardings on roads
News paper
Social networking

Customers of VSSL

Export of the Vardhman special steel products to the

various countries

Thailand (unity powertrain Co. Ltd.)


Domestic customers of VSSL

Highway Industries Ltd.

Sona blw precision forgings Ltd.

Shriram Pistons & Rings
Bill forges Pvt. Ltd.
Barroc Engineering Pvt. Ltd.
Amtek Auto Ltd.

Sale offices of VSSL

Uttra khand
Various Macro Factors Affecting the Steel Industry

(Case study has been done on Posco steel plant)

Modes of Payment

Advance Payment
Bill of Exchange
Letter of Credit


All India Induction Furnace Association (AIIFA)

Working: i. Represent the interest of electric induction melting furnace industry.
ii. Provides link between induction melting furnace units and government.
iii. Policy making with govt. on custom and excise.

Automotive Component Manufacturer Association Of India (ACMA)

Working: i.

Technology enhancement.
Gathering information.
Organize auto expo and events.
Frame rules and regulations.

Society Of Indian Automobile Manufacturer (SIAM)

Working: i. Representing 46 leading vehicle manufacturing companies.
ii. Provide channel of communication for automobile industry with
Government, nationally and internationally.
iii. Organize auto expo and trade fairs with ACMA
iv. Frame rules and regulations

VSSL Activities toward Corporate Social Responsibility (CSR)

As a responsible corporate citizen, VSSL is committed to providing a safe, progressive,

and sustainable work environment. Our mission is to improve the quality of life of our

people, while ensuring that our endeavors contribute towards the betterment of the
communities of the areas in which we operate.
Vardhman Special Steels Limited regularly invests a part of its earning to address various
socioeconomic apprehensions looming over the world and human race. Our CSR
initiatives focus on healthcare initiatives, social and environmental sustainability, rural
development, and inclusive growth.

Our CSR values:

Preserving Environment

VSSL firmly believes that in order to ensure a prosperous tomorrow, it is indispensable to

restore and preserve the much critical ecological balance. Aligned with this
understanding, we practice every measure that can reduce the carbon footprints of our
manufacturing facilities and offices.

Improving Communities

As a company, we believe that improving the communities of the places in which we

operate is one of our core responsibilities. That explains our active participation in
various social initiatives, including the establishment of Sri Aurobindo Socio-Economic
& Management Research Institute.

Ensuring Safety

Providing a safe work environment has always been a priority at Vardhman. We believe
in progressing with evolving technologies in order to provide our workforce with ideal
work conditions that promote efficiency and productivity, with all prescribed safety
measures in place.

Pioneering Values

Setting new benchmarks is a way of life at Vardhman. Valuing innovation and creativity,
we are always open to new suggestions and ideas that can augment our overall
contribution as a corporate citizen of the world, and help make the world a better place
for one and all.

Organizational Structure

(A M V S S S S I
R R E . S P
I )




Sources of Recruitment

The sources within the organization itself to fill a position are known as inter
sources of recruitment.

Recruitment of the candidate from other sources which are outside the
organization is known as external sources of recruitment.

Process of Recruitment

Performance Appraisal Process

A performance appraisal, or performance review, is a formal interaction between an

employee and manager. This is when the performance of the employee is assessed and
discussed in thorough detail, with the manager communicating the weaknesses and
strengths observed in the employee and also identifying opportunities for the employee to
develop professionally.
Here is the process involved in performance appraisal:

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1. Establishing Performance Standards
In this we use as the base to compare the actual performance of the employees. In this
step it requires to set the criteria to judge the performance of the employees as successful
or unsuccessful and the degrees of their contribution to the organizational goals and
objectives. The standards set should be clear, easily understandable and in measurable

terms. If employee doesn't come up to expectance, then it should be taken extra care for

2. Communicating the standards

It is the responsibility of the management to communicate the standards to all the
employees of the organization. The employees should be informed and the standards
should be clearly explained. This will help them to understand their roles and to know
what exactly is expected from them.

3. Measuring the actual Performance

The most difficult part of the performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a nonstop process which involves monitors the performance
all over the year. This stage requires the watchful selection of the suitable techniques of
measurement, taking care that individual bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees work.

4. Comparing the Actual with the Desired Performance

In this the actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the
standards set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance depicting
a negative deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees' performance.

5. Discussing Results
The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can
have an effect on the employees' future performance. The purpose of the meeting should
be to solve the problems faced and motivate the employees to perform better.

6. Decision Making

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.

Break Even Point

A company's breakeven point is the point at which its sales exactly cover its expenses.
The company sells enough units of its product to cover its expenses without making a
profit or taking a loss. If it sells more, then it makes a profit. On the other hand, if it sells
less, it takes a loss.
To compute a company's breakeven point in sales volume, you need to know the values of three
variables. Those three variables are fixed costs, variable costs, and the price of the product. Fixed
costs are those which do not change with the level of sales, such as overhead. Variable costs are
those which do change with the level of sales.

Fixed Costs/Price - Variable Costs = Breakeven Point in Units

Sale Price / Value


Less: variable cost






Less: Fixed Cost


Profit / Loss


Mission and Vision

MissionCustomer delight-By providing superior products on time every time.

Share holder delight-By providing better than market returns on investments
Employee delight-By providing opportunities to learn contribute and enjoy working in
Mahle filters.

VisionBe the leading supplier of filter system in India and a global supplier of automotive and
Industrial filter for both OE.

Suggestion and Recommendations

Vardhman special steel Ltd. is a leading firm in Aftermarket. They do B-B business with
domestic as well as international market. They have very good relations and awareness
amongst their domestic B-B customers but there is lack of awareness about their product
in foreign market. So they should focus more towards spreading awareness and doing
brand promotions at international level because as we know the govt. of india is also
supporting the exporting firm and there are so many potential customers in foreign
market so that they can generate more profit and it will help to develop our country also.

They should do advertisement for their products.

They should take part in various exhibitions and trade fairs in foreign countries.

The company is using NOW software (designed by data text) in its various departments
to work efficiently but this software is ineffective for various department because it didnt
provides the information regarding the product during the process of production and
various departments like PPC has to take manual report from marketing department so
here company should use such a software which includes all functions for the use of
various department and also gives facility to track the product.


This one month of my internship is the golden and crucial period of my life in which I
have learned practically about marketing and various strategies followed in day to day
corporate life. Earlier I had very little knowledge about the company and its functioning
but now I can say that I have fair knowledge about the company and functioning of its
several department and production. I also got fair knowledge about how to work in
corporate environment and how to absorb pressure.
The basic conclusion drawn during this project is that company is very good at their
financial strengths and the new strategies they adopt. The company should adopt
aggressive measures for their brand promotion expansion.

Annual report of company