Competitors analysis and dealers perception towards Bhushan Steel Ltd.

1. 1. 1 COMPETITORS ANALYSIS & DEALERS PERCEPTION TOWARDS BHUSHAN STEEL

LTD SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS PARTIAL
FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION (Affiliated To Ch.
Charan Singh University, Meerut) Academic Session [2012-2015] Submitted by: DARPAN
AGARWAL Roll No: - 9356572 UNDER THE GUIDANCE OF: External Supervisor - Internal
Supervisor – MR. NEERAJ AGARWAL Ms. AKANSHA TYAGI D.G.M MARKETING
ASSISTANT PROFESSOR BHUSHAN STEEL LTD. IMS GHAZIABAD IMS GHAZIABAD
(University Course Campus)
2. 2. 2 NH-24, ADHYATMIK NAGAR GHAZIABAD. PREFACE Summer Training assignment is
a part of Bachelors of Business Administration program of the Institute of Management Studies,
Ghaziabad. Summer assignment not only gives an opportunity to deal with real life situations in a
business / industrial environment but also gives a student of management of first hand opportunity
to put his theoretical inputs into practice . The project report mentions the honest efforts to
understand the marketing concepts in real life situations. This report is being prepared for the
study of competitor analysis & dealers perception toward Bhushan Steel Ltd along with the
analysis of major flat Steel producers like TATA STEEL, JINDAL STEELS and SAIL in terms of
preference, cost, quality, after sales service etc. Besides this, the report also puts on to compare
market share of Bhushan Steel Ltd and other organizations. DARPAN AGARWAL
3. 3. 3 i ACKNOWLEDGEMENT I am thankful to the “BHUSHAN STEEL LIMITED, Sahibabad
industrial area, Dist. – Ghaziabad” for allowing me to undergo my summer Training for partial
fulfilment of the requirement for the degree of Bachelors of Business Administration. The
accomplishment of the present study became possible by invaluable assistance and guidance of
our professional guides and colleagues to whom we are gratefully indebted. First of all I wish to
express my special thanks to Mr Neeraj Agarwal (DGM Marketing) of BSL. His cheerful
induction on my first visit to company’s office helped me to know about BHUSHAN STEELS as
a company and the activities I had to perform. I am thankful to Mr Manish Sharma (Marketing
Manager) for providing the necessary orientation throughout the project. I wish to thank and pay
regard to all my teachers specially Ms. Akansha Tyagi (Assistant Professor, IMS Ghaziabad)
without their guidance and blessing this project could not be completed. I am also thankful to all
the other people of marketing department, all the dealers, shopkeepers and all the people who have
already used the flat Steel products whom I met during the survey, for their cooperation
throughout the project. Last but not the least we are indebted to our parents for their moral support
during the course of study. Date: - 8/5/2015 DARPAN AGARWAL ii
4. 4. 4 DECLARATIONS I Darpan Agarwal (Roll No. – 9356572) student of “Institute of
Management Studies, Ghaziabad” hereby declare that the project entitled “COMPETITORS
ANALYSIS & DEALERS PERCEPTION TOWARDS BHUSHAN STEEL LTD” is the original
work done by me and the information provided in the study is authentic to the best of my
knowledge. This study report has not been submitted to any other institutions or university for the
award or any other degree. DARPAN AGARWAL iii
5. 5. 5 EXECUTIVE SUMMARY Through this project we came to know about the sales &
competitor analysis & consumer behavior towards Bhushan Steel Ltd. This report looks into a
steel industry, well famous for its steel products. Bhushan Steel Ltd. is one of the names in steel
industry which has high reputation and brand value in the market. So far research is concerned and
survey is done on 100 Respondents. The survey was done to create data base for the company and
also do the analysis of the project report. The result which we found out through surveys helped
the company to redesign some of its policies. The objective of the product is to do competitor
analysis in comparison to the brand preferred in the market in terms of product range, pricing,
availability, supply, quality and after sales services and also to understand the Marketing mix and
sales analysis of the flat Steel products. Bhushan Steel Ltd. serves the interest of their consumers
and also it a competitive organization. The major finding indicates that Bhushan Steel Ltd. should
take some more initiative to expand their business overseas and adopt more advertising principles
to popularize their products. iv
6. 6. 6 TABLE OF CONTENTS S.No. Topic Page no. CERTIFICATE i PREFACE ii
ACKNOWLEDGEMENTS iii EXECUTIVE SUMMARY iv 1. OVERVIEW OF INDIAN &
WORLD STEEL INDUSTRY 1-4 2. ABOUT THE COMPANY 5-19 3. 5P’s of Marketing- 3.1
 Product 3.2 Price 3.3 Place 3.4 Promotion 3.5 Packaging 20-34 20-27 28-29 29-33 34 34 4.
APPLICATIONS 35-36 5. RESEARCH METHODOLOGY 5.1 RESEARCH OBJECTIVE 5.2
SAMPLE & RESEARCH DESIGN 5.3 DATA COLLECTION 37-41 38 39-40 39 6. DATA
ANALYSIS 42-58 7. FINDINGS 59 8. SUGGESTIONS 60 9. LIMITATIONS 61 10.
BIBLIOGRAPHY 62 11. ANNEXURE 63-64
7. 7. 7 OBJECTIVES OF THE STUDY  To understand the Marketing mix of Bhushan Steel Ltd. 
Sales analysis of the flat Steel products of Bhushan Steel Ltd.  To do competitor analysis in
comparison to the brand preferred in the market in terms of product range, pricing, availability,
supply, quality and after sales services.  To know about Dealers Perception for flat steel products
of Bhushan Steel Ltd.
8. 8. 8 OVERVIEW OF THE INDIAN & WORLD STEEL INDUSTRIES
9. 9. 9 INTRODUCTION Steel is essential to the modern world, and its use is critical in enabling
man to move towards a sustainable future. Whether in lighter, more efficient vehicles or
renewable energy generation, steel is a fundamental part of a greener world. SAIL and Tata Steel
have been the major steel industries of India. Since 1990, a huge investment has been made into
the industry. Indian Steel Industry also went through a rough phase but improved after 2002. India
has now emerged as one of the largest producers of steel in the entire world. Almost all varieties
of steel are now being produced in the country. India has also emerged as a net exporter of steel
and Indian steel is being increasingly accepted in the global market. World Steel in Figures 2014:-
The World Steel Association (world steel) has published the 2014 edition of World Steel in
Figures. COUNTRY PRODUCTION (MT) CHINA 739 JAPAN 110.2 UNITED STATES 92.6
INDIA 82.3 RUSSIA 73.8
10. 10. 10 Industry trends: Indian and Global perspectives, recent happenings. Steel is the back bone
of human civilization, it is very crucial in development of a modern economy. The per capita
consumption of steel shows the living standard of people in any country. Global Perspective: The
industry directly employs about more than two million people worldwide, with a further two
million contractors and four million people in the supporting industries. Considering steel’s
position as the key product supplier to industries such as automotive, construction, transport,
power and machine goods, and using a multiplier of 25:1, the steel industry is at the source of
employment for more than 50 million people. World crude steel production has increased from
851 mega tonnes (Mt) in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900).World average steel
use per capita has steadily increased from 150 kg in 2001 to 215 kg in 2011. India, Brazil, South
Korea and Turkey have all entered the top 10 steel producers list in the last 40 years. Indian
Perspective: At the time of independence, India had a small Iron and Steel industry with
production of about a Million tonnes (mt). In due course, the government was mainly focusing on
developing basic steel industry, where crude steel constituted a major part of the total steel
production. Many public sector units were established and thus public sector had a dominant share
in the steel production till early 1990s. Mostly private players were in downstream production,
which was mainly producing finished steel using crude steel products. Capacity ceiling measures
were introduced. Basically, the steel industry was developing under the controlled regime, which
established public sector steel companies in various segments. Till the early 1990s, when
economic liberalization reforms were introduced, the steel industry continued to be under the
control of Indian regulation were constituted such as large plant capacities were reserved only for
public sector under capacity control measures; price regulation; for additional capacity creation
11. 11. 11 Producers had to take license from the government; foreign investment was restricted; and
there were restrictions on imports as well as exports. But after liberalization many reforms and
regulation were changed which brought the new era for development in steel industry. Some of the
major developments were: 1. Large plant capacities that were reserved for public sector were
removed; 2. Export restrictions were eliminated; 3. Import tariffs were reduced from 100 percent
to 5 percent; 4. Decontrol of domestic steel prices; 5. Foreign investments was encouraged, and
the steel industry was part of the high priority industry for foreign investments implying automatic
foreign equity participation up to 100 percent; and 6. System of freight ceiling was introduced in
place of freight equalization scheme. Due to this, the domestic steel industry has since then,
become market oriented and integrated with the global steel industry. This has helped private
players to expand their operations and bring in new cost effective technologies to improve
competitiveness not only in the domestic but also in the global market. The Indian steel industry
comprises of the producers of finished steel, semi-finished steel, stainless steel and pig iron.
 Indian steel industry, having participation from both public sector and private sector enterprises, is
one of the fastest growing markets for steel and is also increasingly looking towards exports as
driving the growth of the industry. Indian steel Industry Structure: Indian iron and steel industry
can be divided into two main sectors: Public sector and Private sector. Further on routes of
production it can be classified as: Integrated producer which convert iron ore into steel e.g. SAIL,
TISCO, etc and Secondary producer which make steel from sponge iron or scrap e.g. ISPAT
Industries, Essar.
12. 12. 12 ABOUT THE COMPANY
13. 13. 13 ABOUT THE COMPANY Bhushan Steel Ltd formerly known as Bhushan Steel & Strips
Ltd. is a part of the Bhushan Group and is one of the leading prominent players in Steel Industry.
 India’s 3rd largest Secondary Steel Producer with 2 million tons per annum (approx.),
production capacity.  Bhushan Steel was the brain child of Mr. B. B. Singhal, and it first marked
its presence in Sahibabad (Uttar Pradesh) in 1987.  The company has three manufacturing units
in the state of Uttar Pradesh (Sahibabad Unit), Maharashtra (Khopoli unit), and Orissa Plant
(Meramandali unit) in India and sales network is spread across the Globe. POLICIES Integrated
Quality Policy. Environment, Occupational Health Policy. Safety Management System Policy.
14. 14. 14 MISSION “Our mission is to grow our companyby providing innovative strong and high
performance products and solutions to meet our globalcustomer needs.” , Is the motto of
BhushanSteel. Bhushan Steel Ltd. commits to produce cold rolled and galvanized Steel sheets of
world class quality in a safe, healthy and clean environment by involving employees with
continual improvements in system implementation, technological advancement, operational
integration, Prevention of pollution & hazards maintaining VISION “Thevision of evolving into a
totally Integrated Steel Producer by committing to achieve the highest standardsof Quality through
Cutting-EdgeTechnologyand ensuring minimum wastage.” BSL’s vision of total integration is a
lot closer to realization today. Through seamless backward integration, BSL is consolidating its
position on the entire Steel value chain from iron ore to specialized is surging ahead
15. 15. 15 BUSINESS OVERVIEW OF Bhushan Steel Ltd Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar '
10 Sales 9,940.96 7,000.46 5,640.35 4,957.56 4,203.95 Operating profit 3,003.70 2,037.17
1,452.74 1,033.44 832.60 Interest 1,046.07 414.04 210.01 252.96 136.85 Gross profit 1,985.87
1,688.21 1,360.51 798.40 749.20 EPS (Rs) 48.24 48.65 39.83 19.44 19.36 SHAREHOLDER’S
PATTERN Shareholders Percentage Promoters 64.20% Corporate Bodies 25.10% Individuals
7.80% Institutional Investors 2.90% Total 100%
16. 16. 16 ADMINISTRATION SET UP OF BHUSHAN STEEL LTD :- MANAGING DIRECTOR
Mr. Neeraj Singhal ANGUL PLANT HEAD SAHIBABAD PLANT HEAD KHAPOLI PLANT
HEAD FINANCE DEPARTMENT HUMAN RESOURCE DEPARTMENT MARKETING
DEPARTMENT TECHNICAL DEPARTMENT ACCOUNTS DEPARTMENT CHAIRMAN
Mr. B.B. Singhal
17. 17. 17 MARKETING DIVISION OEM DOMESTIC TRADING EXPORT VICE PRESIDENT
(Mr. D.K. SHARMA ) D.G.M. (Mr. Neeraj Agarwal)
18. 18. 18 INTEGRATING VALUE Bhushan Steel's Cold Rolled Steel activity produces and markets
an extensive range of value added Products such as CRCA (cold rolled closed annealed), Galume,
Color coated sheets, High tensile Steel straps, Hardened and tempered Steel, drawn tubes etc.
CRCA, produced at Sahibabad facility caters to customers like Maruti and other OEMs. Its
galvanizing plants are located strategically close to the ports of Mumbai, helping it to cater to the
global demand at competitive prices. After having grown to a size of approximately 1 MTPA in
cold rolled and coated products, the company has embarked on its Orissa project to integrate
backward into the production of HR Coil and billets, so as to meet current and future internal
requirements. Also, it plans to develop various EDD (extra deep drawing) grades used in the
automobile's critical applications like outer body panels of cars (these are currently imported).
With a strong presence in Indian Steel market, Bhushan Steel Limited offers effective Steel
solutions to the automotive, construction and household appliance industries. A combination of
technical expertise and sales service fosters a close relationship between Bhushan Steel and its
customers. Clinching on its quest for excellence, the Group meets the automotive and white goods
industry expectations with new products that are distinctive and ahead of the competition.
19. 19. 19 TECHNOLOGY Bhushan Steel unwavering focus on acquiring and leveraging the best
available technology has engendered a period of unprecedented growth and progress. The state of
art Khopali Plant has fully commenced and is playing pivotal role in the tremendous growth of
 exports as well as in the production of a much larger variety of value added Steel like coloured
coated sheet. High tensile Steel strapping, hardened & tampered strips, spring Steel, precision
tubes and the soon to be manufactured for the first time in India Galume Value Added Steel. The
Sahibabad plant is operating at full capacity and giving a substantial volume thrust to the
organisation. The Khopoli plant which operates with the very latest technology becomes fully
operational has the production capacity of 450000 MT per annum of cold rolled Steel which
includes 250000 MT of galvanised Steel. Bhushan Steel is now India’s third largest secondary
Steel producer after SAIL and TISCO. BSSL had the distinction of being the only producer of
widest width of CR sheet. The biggest landmark on its growth path is of course the Orissa plant.
This integrated Steel and power plant will put BSSL firmly in the path of progress transforming
BSSL into a completely self-reliant organisation. BHUSHAN has set up the technology of
manufacturing a very new coated product called BHUSHAN GALUME being the brand name.
This alloy coating consists of 55% Aluminum and 43% Zinc and the balance contains Silicon
around 1.5% to affect excellent adhesion to the Steel substrate. TECHNOLOGICAL BACKUP
The coater technology is the latest from GFG, USA and thermo Radiometric – Germany and
special high jet cooling tower from UK. We have tie up with M/s Henkel Chembond Surface
Technologies Ltd for the supply of chromating chemicals and acrylic coating and 0n line
continuous monitoring for the coating control and salt spray analysis in addition to our on line
monitoring by quality control dept.
20. 20. 20 RESEARCH & DEVELOPMENT Company R&D activities consists of carrying on normal
qualities testing of its raw materials , work in progress and finished goods . It does not involve
development of new products. We have full-fledged laboratory with test equipments- Emission
spectroscope for the chemical analysis, computerized Universal testing machine with stress-strain
graph for tension tests, surface finish tester, Hardness testers using both Vickers and Rockwell
scales, LFQ testing machine, Cupping tester, on line Radiometric and off line chemical lab for
coating mass, salt spray tester for corrosion resistance, and Humidity chamber. The company has a
latest state of the art R&D Center and has many first to its credit including development of panel
grade material for Refrigerator, Visi Coolers & chest Coolers of Coca- Cola & Pepsi, ultra-thin
CR Steel for Picture tube & battery application etc.  For continuous marketing of our product
quality , we keep carrying out testing from outside laborites.  This has resulted in continuous
upgrading of the process parameters conforming to any international standards. Further we have
online backup SGS inspection for all test parameters upto the point of dispatch. NEW PRODUCT
DEVELOPMENT Bhushan Steel is pioneer in the industry to develop new products which can
substitute the imported material to reduce cost of purchase/sourcing for domestic industry. In this
direction Bhushan has developed new products, viz., Outer Skin Panels for cars, HLGP Coated
material for fuel tanks and High Tensile Strength Colled Rolled and Galvanized Steel for
Automobile Industry.
21. 21. 21 OUTER SKIN PANELS FOR CARS Bhushan Steel has emerged as leading supplier to all
passenger cars, multi utility vehicles manufacturers’ car skin panels which call for a combination
for mechanical properties shape and dent free surface of leading automobiles are made from our
product which result in lesser inventories. The basic raw material i.e. HR Coils used to produce
skin panels imported from Japan, Korea, France & UK. HIGH TENSILE STEEL FOR
AUTOMOBILE INDUSTRY Reduction in automobile weight and thereby improvised fuel
economy and passenger safety required Steel that could offer high degree of formability with
increased strength. Interstitial free high strength Steel offered by Bhushan Steel combine these
factors. Bhushan Steel offers Interstitial free-high strength Steel with tensile strength as high as
550MPa. The common grades used by Automobiles are SPRC 340, SPRC 390, SAPH 390, SAPH
410, and SAPH 450. Bhushan Steel is also in the Bake Hardening Steel and TRIPP Steel.
22. 22. 22 Manufacturing Process RAW MATERIAL Remove Surface Impurities. To get desired
Thickness H.R. COIL (HOTROLLED COIL) PICKLING H.R. COIL PICKLED COLD
ROLLING C.R. COIL COLD ROLLED COIL
23. 23. 23 Cycle-1 Cycle-2 Cycle -3 Soft Hard C.R. COIL COLD ROLLED COIL Annealing (To get
desiredphysical & chemical properties) C.R.C.A. COIL (Cold Rolled Coil Annealed Cut to length
Packaging Dispatching Galvanizing (Zn , Al Alloy ) G.P. Coil (Galvanized plane Coil)
Galvanized Corrugated Sheet Packaging Dispatching G.P.Sheet G.P.Coil Packaging Packaging
Dispatching Dispatching Cut to length C.R. SHEET ---F/H-------- Annealing (To get
 desiredphysical & chemical properties) B.P. SHEET Packaging Dispatching Cut to Length Cut to
Length Corrugate
24. 24. 24 OVERVIEW OF THE 5P’s OF MARKETING FOR BHUSHAN STEEL LTD.
25. 25. 25 A BRIEF ABOUT 5P’s OF BSL (3.1) PRODUCT:- Its Product can be classified as below:
PRODUCTS Long ProductsFlat Products Cable Tapes Precision Tubes Black Pipes G P Coil G P
Sheets Wire Rods Bar MillsSteel Coil Corrugated Sheets Cold Rolled sheets Galvanized Coil
Narrow C R Coil Galume
26. 26. 26 FLAT PRODUCTS:- 1. Cable Tapes:- These Tubes are widely used for Power and
Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway
Electrification, Furniture and General Engineering Applications etc. Precision Tubes are made at
our Chandigarh and Kolkata plants. 2. GP Coils:- These Tubes are widely used for Power and
Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway
Electrification, Furniture and General Engineering etc. 3. Steel Coils :-
27. 27. 27 These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering
Applications etc. 4. GP Coil Sheets :- Applications: Galvanised Coils and Sheets are used to make
Boxes, Containers, Ducting, Cooler Body, etc. GP Coils are manufactured at our Kolkata Plant. 5.
Corrugated Sheets:- Corrugated sheets are extensively used for Industrial sheds, housing,
temporary structures etc. Corrugated Galvanized Sheets are manufactured at Our Kolkata plant.
28. 28. 28 6. Cold Rolled Sheets :- Cold Rolled Sheets are used in the manufacture of Automobiles,
White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and general
engineering products. CR Sheets are produced at our Chandigarh, Kolkata and Orissa plants 7.
Narrow CR Coils:- Narrow Cold Rolled Coils are used in the manufacture of Automobiles,
Precision Tubes, Cable Tapes, White Goods, Electrical Panels, Furniture, Transformers, Oil
barrels and drums and general engineering products. Narrow CR Coils are produced at our
Chandigarh, Kolkata and Orissa Plants. 8. Galvanized Pipes:-
29. 29. 29 Galvanized Pipes find its uses in a number of applications including domestic, agriculture
and Industrial. Galvanized Pipes are available in the sizes ranging from 10mm NB to 100 mm NB,
Strip thickness 1.80 mm 5.40 mm We manufacture GI Pipes at our Derabassi (Punjab) Plant. 9.
Black Pipes:- Black pipe is used for transportation of air, gas, fabrication of structure,
automobiles, cycles and general furniture industries. Varnished pipes are used for general
engineering industries. Black pipe is manufactured at our Chandigarh, Derabassi and Kolkata
plants. 9. Precision Tubes :- These Tubes are widely used for Power and Industrial boilers,
Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and
General Engineering Applications etc. Precision Tubes are made at our Chandigarh and Kolkata
plants.
30. 30. 30 11. GALUME:- BHUSHAN has set up the technology of manufacturing a very new coated
product called BHUSHAN GALUME being the brand name. This alloy coating consists of 55%
Aluminum and 43% Zinc and the balance contains Silicon around 1.5% to affect excellent
adhesion to the Steel substrate. Galume Production Technology: This coating is given on the cold
rolled substrate processed from selective Hot rolled coils with selective chemistry for getting the
desired mechanical properties specified by the customers. The Galume product is made by the
continuous hot dip process. The cold rolled coils are welded end to end and passes through 3 stage
degreasing section for achieving excellent cold rolled strip surface. The coating system is 2 pot
system- premelting pot and the main coating pot. The bath chemistry is continuously controlled
and monitored at the pre melting pot which continuously feeds the main coating pot through the
refractory tunnel. Galume market We have produced about 50000 MT as on date from the
commissioning of our Galume production. Our line is fully booked and hopes to produce
continuously about 15000 MT per month. In India, we are supplying Galume and Pre-painted
Galume to reputed companies. To mention few of them, we supply to Kirby, Trigger Steels,
Lloyds Insulation, Multicolor, GSP Power, ERA Metal, Unimet Profiles, Isolloyds Engineering,
Color Roofing, Havel’s India Ltd, MG Industries, Ganga roofers, Century wells and others . Our
80 % of production is exported to various counties all over the world, USA, European Countries
and Spain, South Africa, Italy and South East Asian countries. There are no Indian
31. 31. 31 standards for this product. We have established our product in international market against
ASTM / EURO and AS standards. It is imperative to mention to you that now our product or
brand is preferred over Arcelor and Blues cope. Some of our Global direct customers are Defer
 co-USA, NOVO Steel USA, Toyota Tshuho, America Nialco SA Belgium, Savogni Italy, Gibbs
Steel, South Africa, Arcelor Barba DOS, Global Roofing-Durban and others. GALUME
Properties: Due to bright surface & fine spangles, excellent heat reflectivity up to 315 c, & due to
high Aluminum content, Galume has heat (oxidizing) resistance up to > 320 c without
discoloration and without impairment of its alloy coating. PRE-PAINTED GALUME SHEETS
Coil coating is the most advanced techniques used in the continuous application of an organic
coating on to a flat metal substrate in the coil form Bhushan Steel is the only company in India
which is producing colored sheet first time in India. Coil Coating Process: * CLEANING OF
SHEET * CHEMICAL COATING * DRYING * PRIMER APPLICATION (ON BOTH TOP &
BOTTOM) * CURING OF PRIMER * TOP COAT & BACK COAT APPLICATION * CURING
OF TOP & BACKING COAT
32. 32. 32 LONG PRODUCTS:- 1. Wire Rod and Bar Mill:- With the introduction of most
technologically advanced special and alloy steel long product rolling complex for manufacture of
value added bars and coils, a new dimension has been added in BPSL's long history in the steel
business. The Long Product Rolling Complex consists of a most modern 0.5 million tpa
multiproduct Wire Rod and Bar Mill (18 pass Horizontal & Vertical Continuous Mill) supplied by
Danieli Morgardshammar, Italy and KOCKS, Germany (4 pass mill). The state of the art Wire
Rod & Bar Mill, one of the most modern plants of this type in the world, will produce:  Straight
Bars  Bar in Coil form  Wire rods
33. 33. 33 (3.2) PRICE:- Price is one of the most crucial elements behind a successful product. It is
more pragmatic & fact oriented in industrial marketing as compared to pricing for consumer
product. Factorinfluencing pricing strategyof Bhushan SteelLtd are:- 1. Production cost:- It
includes the cost of the raw materials, cost of transportation, cost of all other things which are
involved in the production of the various products. Production cost highly influences the pricing
policy of various goods at Bhushan Steel. Bhushan Steel aims at reducing its production cost by
having its own power plant and its own raw material which helps as a major factor in reducing the
overall production cost and supplies goods at the best price in market. The production units of
BSL are situated at very good locations and near to the consumer centers of North and South so its
distribution cost is thereby reduced. 2. Market demand:- The demand of the various products in
the market also plays a key role in developing the pricing policy of bhushan steel as if market
demand is huge then there will be bulk production of goods which will reduce the overall cost and
if the market demand is less and then production cost per unit increases. 3. Competition:- Bhushan
Steel also keep in mind the competitors price of the products while formulating its pricing policy.
Bhushan steel provides goods at reasonable rates than its competitors
34. 34. 34 as it has its own material and electricity which plays a vital role of steel production process.
4. Government regulations:- Price also fluctuates by various government rules and regulations.
Government policies keep changing from time to time which affects the pricing strategy and
principles of Bhushan Steel. (3.3) PLACE:- Place represents the location where a product can be
purchased. But in industrial marketing place is often referred to as the distribution channel.
Channels of Distribution:-  Direct Marketing Channel (or Zero Level):- This type of channel has
no intermediaries. In this distribution system, the goods go from the producer directly to the
consumer, e.g., Eureka Forbes  Indirect Marketing Channel:- 1. One-level Channel: In this type
of channel there is only one intermediary between producer & consumer. 0 Level Producer
Consumer 1 Level Producer ConsumerRetailer
35. 35. 35 Distribution Channel at BSL OEM (0 Level) DOMESTIC TRADING (1 Level) EXPORT
(0 Level) Delivering of Schedule Order Payment in form of L.P. Totally based on projections. No
Payments No Order Payment as per agreement Order in form of schedule
36. 36. 36 MARKETING NETWORK
37. 37. 37 MAJOR CUSTOMER AND CLIENTELE
38. 38. 38 (3.4) PROMOTION The promotional activities at Bhushan Steel Ltd. are done basically
through advertisements, personal selling and Direct Marketing. BSL give advertisements in the
power and steel magazine of India and also in some of the newspapers.The public relation of BSL
is also high as it has build trust and goodwill over the years among their customers which leads to
good word of mouth and which also helps in promoting their products. At BSL Direct marketing
is involved in which the customers contact BSL directly and place orders of the products .This
direct marketing takes place through the image and goodwill of BSL. (3.5) PACKAGING HIGH
TENSILE STEEL STRAPPING -FOR PACKAGING The Cold Rolled High Tensile Steel
 strapping is specially heat treated to provide high strength and toughness for packaging
application. On this high speed and high precision online heat treatment line, the special strap
paints are applied for strapping and cured by wave curing system using quartz lamps. For tension
transmission high gloss wax is applied and cured by infrared wave curing system. The allied
products such as whole variety of metal seals and strapping tools are also available to our
customers, confirming to the International Standards ASTM D-3953 All variety of seals like,
Snap-on seals, Push type seals, Nestack seals are available for various applications
39. 39. 39 APPLICATIONS Flat springs for automobile clutches, Woodworking saws, Masonry &
Argo. Tools, Gang saws blades, for marble cutting, Doctor Blades, for paper industries, leather
splitting knives, Drop pins for textile industries etc. BENEFITS TO CUSTOMERS 1.
EXCELLENT SURFCE FINISH  Auto shape control on both side of the mill.  Mill clean
system with a synthetic coolant to avoid any coolant mark on the strip.  Electrolytic cleaning line
to remove ‘IRON FINES’ form strip, which helps in improving the life of salt-spray test after
painting and avoids carbon soot completely. It also increases the tool’s life in Press shop.  Latest
and sophisticated EDT machine from Waldrich Siegen, Germany, to provide controlled texture for
better paint adhesion and to achieve surface roughness in close tolerances.  On-line Tension-
Leveling equipment for better flatness and controlled elongation.  Computerized Inventory
Control Management and independent skin-pass mill to avoid any unwanted storage in between
annealing and skin-pass process.  KATHABAR STORAGE SYSTEM is commissioned to avoid
oxidation through dehumidifier to prevent rusting during storage.  Electro-static rust preventive
oil spray for controlled oil coating on CRCA surface. Oil coating can be maintained in between
0.50gms/m2 to 4.0gms/m. 2. EXCELLENT MECHANICAL PROPERTIES  Practically, no
variation in mechanical properties due to HICON 100% Hydrogen annealing furnace from
EBNER, Austria.
40. 40. 40  The raw material selection is done by dedicated software for different applications. 3.
CLOSE TOLERANCE TO THICKNESS, WIDTH & LENGTH  X-RAY thickness gauge to
measure thickness in fraction of a micron from DMC, U.S.A.  X-RAY thickness scanner across
control from DMC, U.S.A  Shim less tooling on slitting lines with computerized setting correct
width in close tolerance, form Germany.  Precision Cut-to-length lines to ensure length
tolerances better then +/-0.75mm.  Automatic Electromagnetic Stacker on shearing lines to
produce scratch free,. OTHER ADVANTAGES  Better width combination facility to customers.
 Higher yield in standard width material, i.e., up to 92.45%.  Thickness, length & width
tolerances as per customer requirements. The equipment is capable enough to maintain all these
tolerances in the lower side of International Standards like JIS, BIS, ASTM and EN.  The largest
service center in the country available with Bhushan Steel enables it to accept the orders in
different sizes and service the same in the shortest possible time.  Well located on the map of the
country for smooth supply of finished Goods.
41. 41. 41 RESEARCH METHODOLOGY
42. 42. 42 RESEARCH OBJECTIVES  To understand the Marketing mix of Bhushan Steel Ltd. 
Sales analysis of the flat Steel products of Bhushan Steel Ltd.  To do competitor analysis in
comparison to the brand preferred in the market in terms of product range, pricing, availability,
supply, quality and after sales services.  To know about Dealers Perception for flat steel
products. Why are we doing competitor’s analysis? Competitor analysis is an essential component
of corporate strategy, we are doing competitor analysis to know the market share of Bhushan Steel
Ltd among the major producer of flat Steel products in the Indian Steel industry. This competitor
analysis will show the major areas of strength and weakness of the Bhushan Steels Ltd and other
major producers. This will reveal the major opportunities in the industry that can help in the
improvement of the Bhushan Steels Ltd. Competitor analysis will also show that which company’s
flat Steel product is mostly preferred by the customer.
43. 43. 43 RESEARCH METHODOLOGY Methodology is the specifications of the method for
acquiring the information needed to structure the study. 1. Problem Formulation: - This refers to
transformation of the management problems into a research problem. 2. ResearchMethod: - It
involves choosing Experimental or Non Experimental Research. This research was non –
experimental. 3. ResearchDesign: - It is the plan structure and strategy of investigation convinced
so as to obtain answer research question. It is purely and simply the framework or plan for study
that guides the collection of analysis of data. It is a blue print that is followed on completing the
 study. Designing of a research plan calls for decision on the Data sources, Research approaches,
Research instruments, sampling plan. For this Research the Descriptive Research method was
used. This is because it is marked by the prior formulation of specific research questions. It has a
preplanned and structure design. For Descriptive Research study proposed data analysis and
project output are critical aspects. SAMPLE DESIGN Sampling Method:- The Basic idea of
sampling is that by selecting some of the element in a population in order to get first hand
information of study. There are 2 types of sampling, probability sampling & non-probability
sampling and in this research, Researcher has taken probability sampling.
44. 44. 44 Simple Random Probability Sampling Method- Probability sampling is the most commonly
associated with survey based research where you need to make inferences from your sample about
a population to answer your research question or to meet your objectives. The process of
probability sampling can be divided into 4 stages :- 1. Identifying a suitable frame based on your
research questions or objectives. 2. Decide on a suitable sample size. 3. Select the most
appropriate sampling technique and select the sample. 4. Check that the sample is representative
of the population. The objective of probability sampling depends on the research questions & on
the objectives Sampling Location:-  Our Target population was the steel distributors and the
companies where steel is used as a raw material  We collected the information from the dealers
located mainly in the Delhi/NCR region namely Ghaziabad, Faridabad and Naraina. Sampling
Size :-  The data for the sampling was collected from 100 people- 60 Customers & 40 Dealers
Sampling Unit :- Dealers and customers which use and sell flat steel products.
45. 45. 45 METHODS OF COLLECTION OF DATA Data collection is a key activity of Research.
Data collection method is the backbone of research design. Collection of Primary Data :-  Data
was collected from the dealers and customers.  Data was collected through questionnaires,
Observations and Interviews.  Questionnaire was made according to our requirements i.e. type of
data required in our research. Analysis and Interpretation of Data Data which has been obtained
are seldom useful to anyone, if it is not analyzed and interpreted in order, the breaking down of
constituent parts are the manipulating of the data and to obtain answer to the research questions.
Interpretations involves taking the result of analysis, making inferences relevant to the research
relationship studied and drawing conclusions about these relationships. Technique used for
analysis & Interpretation of data :-  Pie - Charts  Percentage analysis Research Report The
culmination of the research process is research report. Methodology, report and recommendation
for course of action are presented. The 2 critical attributes of reports are completeness and
conciseness.
46. 46. 46 DATA ANALYSIS AND FINDINGS
47. 47. 47 DATA ANALYSIS 1. Interested in which Flat Steel products? a). CR COILS b). CR
SHEETS c).GP & GC d). OTHERS PRODUCTS INTERESTED IN (Fig. no. 1) Interpretation It
is found that 68% of people are interested in GP & GC products .These products are the most
preferred and highly demanded products in the market. Then comes 22% of people are interested
in CR SHEETS , 8% in CR COILS and 2% Others. 68% 22% 8% 2% PRODUCTS GP AND GC
CR SHEETS CR COILS OTHERS
48. 48. 48 2. Which aspect of product do you give most priority? a). PRICE b).PRODUCT RANGE
c). QUALITY d).SUPPLY ON WHAT BASIS BRAND IS SELECTED (Fig. no. 2) Interpretation
It is found that 29% of people select the brand on the basis of Price, 26% on basis of supply, 24%
on basis of Quality and 21% on basis of Product range. Most of the people select the brand on
basis of the price. 29% 26% 21% 24% BASIS OF SELECTION OF BRAND PRICE SUPPLY
QUALITY PRODUCT RANGE
49. 49. 49 3. Which company’s flat Steel products you sell maximum annually? a).TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL SALE PERCENTAGE OF MAJOR
PRODUCERS (Fig. no. 3) Interpretation It is found that dealers sell maximum Flat steel products
of SAIL i.e. 38% which is the highest sales share. Then comes Bhushan Steel with 29% sales
share, then TATA Steel with 20% sales share and last Jindal steel with 13% sales share. 20% 29%
13% 38% SALES SAIL JINDAL STEEL TATA STEEL BHUSHAN STEEL
50. 50. 50 4. Rank 1-4 the following brands in terms of product range (1 max variety and 4 min
variety) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN
TERMS OF PRODUCT RANGE (Fig. no. 4) Interpretation It is found 48% of people prefer
Bhushan Steel in terms of product range. It has the largest product range available in the market.
Then comes TATA Steel on 2nd rank with 22% , then SAIL on 3rd rank with 18% and the 4th
 rank is of Jindal steel with only 12% of product range available in market. 22% 2nd Rank 48% 1st
Rank 12% 4th Rank 18% 3rd Rank PRODUCT RANGE BHUSHAN STEEL JINDAL STEEL
SAIL TATA STEEL
51. 51. 51 5. Selectthe brands in terms of best price offered. a).TATA b).BHUSHAN STEEL c).
JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF BEST PRICE OFFERED (Fig.
no. 5) Interpretation It is found that SAIL offers the best price to its customers and the brand
preferred in terms of price is 39% which signifies that it is the most preferred brand in terms of
price, then comes 29% for TATA steel, then 20% for Bhushan steel and lastly 12% for JINDAL
steel. 29% 20% 12% 39% BEST PRICE JINDAL STEEL BHUSHAN STEEL TATA STEEL
SAIL
52. 52. 52 6. Select the brands in terms of better Supply. a).TATA b).BHUSHAN STEEL c).JINDAL
STEEL d).SAIL BRAND PREFERRED IN TERMS OF SUPPLY (Fig. no. 6) Interpretation It is
found that Bhushan Steel is the most preferred brand in terms of better supply with percentage
share of 47%, then comes SAIL with 34% share, then TATA steel with 11%, then JINDAL steel
with 8%. 11% 47% 8% 34% SUPPLY BHUSHAN STEEL SAIL TATA STEEL JINDAL STEEL
53. 53. 53 7. Select the brands in terms of quality of flat Steel products. a).TATA b).BHUSHAN
STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF QUALITY (Fig. no.
7) Interpretation It is found that Bhushan Steel and TATA steel are the most preferred brand in
terms of Quality of Product with 30% of market share on basis of quality, then comes SAIL with
26%, then JINDAL steel with 14%. 30% 30% 14% 26% QUALITY JINDAL STEEL SAIL
TATA STEEL BHUSHAN STEEL
54. 54. 54 8. Rank 1-4 in terms of the after sale services and complaint handling. a).TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF
AFTER SALE SERVICES (Fig. no. 8) Interpretation It is found that SAIL is the most preferred
brand in terms of after sales service followed by Bhushan steel, followed by TATA steel and
JINDAL steel at the last rank in terms of after sales service. 21% 3rd Rank 30% 2nd Rank17% 4th
Rank 32% 1st Rank AFTER SALE SERVICE SAIL BHUSHAN STEEL TATA STEEL JINDAL
STEEL
55. 55. 55 9. Select the brands in terms of overall satisfaction level. a).TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF OVERALL
SATISFACTION (Fig. no. 9) Interpretation It is found that Bhushan steel is the most preferred
brand in terms of overall satisfaction to its consumers with 51%, then comes SAIL with 29%, then
TATA Steel with 12%, then JINDAL steel with 8%. 12% 51%8% 29% OVERALL
SATISFACTION JINDAL STEEL BHUSHAN STEEL SAIL TATA STEEL
56. 56. 56 10. Rank 1-4 the following brand in terms of the product availability. (1 most preferred and
4 least preferred) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND
PREFERRED IN TERMS OF PRODUCT AVAILABLITY Interpretation It is found that
Bhushan steel is the most preferred brand in terms of Product availability to its consumers with
36%, then comes SAIL with 30%, then TATA Steel with 21%, then JINDAL steel with 17%. 21%
3rd Rank 36% 1st Rank 17% 4th Rank 30% 2nd Rank PRODUCT AVAILABILITY JINDAL
STEEL BHUSHAN STEEL SAIL TATA STEEL
57. 57. 57 11. Select the brands with whom you are dealing the most. a).TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL Interpretation It was found that Bhushan steel was the most preferred
brand for the dealers whom they was dealing with due to its wide range of products at cheaper
rates, then comes SAIL, then TATA steel followed by JINDAL steel. 20% 35% 15% 30%
JINDAL STEEL BHUSHAN STEEL SAIL TATA STEEL
58. 58. 58 SALES AND PRODUCTION ANALYSIS  PRODUCTION STATSOF FLAT
STEELPRODUCTS IN ‘000 TONNES IN INDIA *ESTIMATED FIGURE (Table no.1) YRS
COMPANY 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TATA STEEL
3193 3231 3192 3586 3671 3798* SAIL LTD 9849 10288 9846 9736 9931 10403* JINDAL
STEEL 2246 2361 2178 2321 2540 2610* BHUSHAN STEEL 2416 2498 2331 2357 2554 2663*
OTHERS 7193 7765 7278 10504 10253 9154*
59. 59. 59 SALES STATS OF FLAT STEELPRODUCTS IN ‘000 TONNES IN INDIA
*ESTIMATED FIGURE (Table no.2) YRS COMPANY 2007-2008 2008-2009 2009-2010 2010-
2011 2011-2012 2012-2013 TATA STEEL 1671 1746 1684 1978 2080 2177* SAIL LTD 5436
5748 5110 4983 5518 5734* JINDAL STEEL 1648 1713 1332 1849 2278 2304* BHUSHAN
STEEL 1614 2178 2083 2106 2267 2310* OTHERS 6034 6802 6111 8215 8006 6975*
60. 60. 60  PRODUCTION AND SALES CHART OF THE YEAR 2007-2008 (Fig. no. 1) 
PRODUCTION AND SALES CHART OF THE YEAR 2008-2009 (Fig. no. 2) 0 2000 4000 6000
8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS
PRODUCTION SALES EXPORT 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL
LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT
61. 61. 61  PRODUCTION AND SALES CHART OF THE YEAR 2009-2010 (Fig. no. 3) 
PRODUCTION AND SALES CHART OF THE YEAR 2009-2010 (Fig. no. 4) 0 2000 4000 6000
8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS
PRODUCTION SALES EXPORT 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL
LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT
62. 62. 62  PRODUCTION AND SALES CHART OF THE YEAR 2011-2012 (Fig. no. 5) 
PRODUCTION AND SALES CHART OF THE YEAR 2012-2013 (Fig. no. 6) 0 2000 4000 6000
8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS
PRODUCTION SALES EXPORT 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL
LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION* SALES* EXPORT
63. 63. 63 FINDINGS  BSL is the most efficient Flat steel producer from 2010-2013.  In 2008-
2009, Steel industry faced a downfall in their production and sales due to the great recession of
2011-2013.  Bhushan Steel performed well in domestic sales during recession.  Industry has
minimized the gap between production and sales and thus reducing the wastage and inventory
level thus improving the efficiency of the Steel industry.  It was found that BSL makes a large
variety of products with better technology and advancements strategies.  BSL plants are situated
near to the consuming centers which help in BSL in easy and fast delivery of products.  The tie-
ups that BSL has with the foreign companies for research and development is very beneficial for
the BSL.  BSL is also improving its image in terms of quality, supply, and price and after sales
service.  BSL wide range of products is a major advantage which helps them to be a market
leader.  GP & GC are the products which are most demanded in the market.  SAIL is the
largest producer of steel from 2008-2013.
64. 64. 64 SUGGESTIONS The recommendations which are to be suggested is as follows:- 
Overseas expansion of their business  Focus on New Research and Development  Increase the
Sales network and sales promotional activities in India and outside India.  Improve its
transportation facilities and after sales service  BSL should focus on generating more power 
Retail outlets in India and abroad  BSL should improve its quality and pricing strategy to be a
sole leader in market  Offer replacement of defected products instead of settlement.  Increase s
production of GP and GC  Company should focus on making new dealers. And giving them
more advantage  Time-to-Time survey to be conducted
65. 65. 65 Limitations Every study has its own limitations in terms of methodology and the resources
available for its conduct. This study has no expectations to it and has been carried under following
limitations:-  There arose difficulty in collecting data as people were not there at their respective
places, so we had to meet them even twice or thrice the same place.  There were some
companies who denied filling the questionnaires  A number of dealers were biased towards a
particular brand which was giving them better returns.  Respondent’s lack of time to give
information and their casual attitude was a big hindrance in the study.  As 100% accurate data is
not possible, and we have to rely on the information received through questionnaire, than 0.2-
0.4% of error was allowed.
66. 66. 66 SWOT ANALYSIS WITH REGARDS TO BHUSHAN STEEL LTD. STRENGHTS 
Adopting latest world class technologies.  Technical tie-up with Sumitomo Metals, Japan. 
Location Advantage.  Availability of its own iron ore and coal.  Abundance of quality
manpower at low cost. WEAKNESSES  BSL lacks aggressive sales promotion activities. 
Lack of export market activities.  Unscientific mining.  Low productivity.  Inadequate
infrastructure.  Low R&D investments.  Power shortage is there at BSL. OPPORTUNITIES 
Since BSL is a major consumer of electricity which is almost 30 % of total product costing, it
should have power plants which can produce a large amount of electricity for its own
consumptions.  Export Market Penetration  Consolidation
67. 67. 67 THREATS  Government policies, this results in up and down in Steel prices. 
Technological change.  Price sensitivity & Demand volatility.  Slow Industry Growth.
68. 68. 68 BIBLIOGRAPHY BOOK REFERENCE 1. Aaker,D.A. “Marketing Research” Johnwiley
Publications, 7th Edition. 2. Philip Kotler “Marketing Management” Pearson Publications, 12th
Edition. 3. Bery G.C “Marketing Research” Tata Macgraw hill Publications 3rd Edition WEB
SITES 1. http://en.wikipedia.org/wiki/Bhushan_Steel 2. http://www.bhushan-group.org/ 3.
http://www.bpsl.net/ 4. http://economictimes.indiatimes.com/bhushan-steel-ltd/stocks/companyid-
10434.cms
69. 69. 69 ANNEXTURE QUESTIONNAIRES Dear respondent, I am a student and conducting a
survey for consumers preference and competitors analysis for Steel products of major Steel
producing companies in Delhi and NCR regions. We request you to answer the following
questions. The information provided will be used for academic purpose only . Thank you 1.
Interested in which Flat Steel products? a). CR COILS b).CR SHEETS c).GP & GC d). OTHERS
2. Which aspect of product do you give most priority? a). PRICE b).PRODUCT RANGE
c).QUALITY d).SUPPLY 3. Which company’s flat Steel products you sell maximum annually?
a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 4. Rank 1-4 the following brands in
terms of product range (1 max variety and 4 min variety) a). TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL 5. Select the brands in terms of best price offered. a).TATA
b).BHUSHAN STEEL c). JINDAL STEEL d).SAIL DATE -
……………………………………………………………….. NAME -
……………………………………………………………….. ADDRESS -
………………………………………………………………..
………………………………………………………………… ……
70. 70. 70 6. Select the brands in terms of better Supply. a).TATA b).BHUSHAN STEEL c).JINDAL
STEEL d).SAIL 7. Select the brands in terms of quality of flat Steel products. a).TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 8. Rank 1-4 in terms of the after sale services
and complaint handling. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 9. Select
the brands in terms of overall satisfaction level. a).TATA b).BHUSHAN STEEL c).JINDAL
STEEL d).SAIL 10. Rank 1-4 the following brand in terms of the product availability. (a most
preferred and 4 least preferred) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 11.
Select the brands with whom you are dealing the most. a).TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL
71. 71. 71