Professional Documents
Culture Documents
ON
SUBMITTED BY
RADHAKRUSNA NAYAK
Regd. No: 0906287013
I thereby declare that I have fulfilled all the provisions of industry training
in Rourkela Steel Plant (RSP) and based on the training I had acquainted my self
to the best in the knowledge of marketing of the secondary steel products of
RSP. This project report has not been submitted to any other Institute/ University
for the award of any degree or diploma.
RADHAKRUSNA NAYAK
MBA (4thTrimester)
GITA,BBSR
ACKNOWLEDGEMENT
The main purpose of this project is to sale the secondary steel products
of Rourkela Steel Plant through online auction and how this process is very
helpful as compared to the previous system that is “Order Booking System”.
This project makes a deep study on the system followed for marketing
in Rourkela Steel Plant so as to make the company as well as the customers
(small scale Industries) beneficiary.
CERTIFICATE
7
SCOPE OF WORK
This project is dealing with one of the largest steel plant in India.
Although it only concern with marketing department of Rourkela Steel Plant
but it s itself a big opportunity for anyone to cover the every single
corner of marketing department because Rourkela Steel Plant has vast
number of employees, working in marketing department. The scope of this
project is not only concentrated on marketing department of Rourkela Steel
Plant but also deal with its existing industrial customers
OBJECTIVE OF PROJECT
The objective of this project is to analyze the working condition in
a government organization. Apart from this, other major objectives are
To Analyse secondary products.
To understand Marketing strategy of secondary products.
To Know the Sales planning for secondary products.
To Know the Distribution methods of secondary products.
To Collect the Customers Feed Back
Limitation
Due to limited time ,I cannot able to collect more data.
The employees couldn’t provide sufficient information because of their busy
office schedule.
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An Introduction to Rourkela Steel Plant
Rourkela steel plant was the torchbearer for Public Sector Steel Industry in India
andcarried the banner of the industrial revolution for the nascent Republic of
India. TheSteel Plant, now a unit of the Steel Authority of India Limited (SAIL),
was a startedduring the mid-fifties of the 20th century in collaboration with the
leading steelmakers from the Federal Republic of Germany.
The units at 1.0 MT stage were commissioned between December 1958
andearlypart of 1962. With a view to meet the additional demand for flat products
in thecountry, it was decided to increase the capacity of the Blooming& Slabbing
Mill, HotStrip Mill and Plate Mill RSP. Accordingly, capacity of ingot steel was
increased to1.0 MT to 1.8 MT between the years 1965 to 1969. Besides expansion
of the units, thescheme also envisaged additional unit of new units like Electrical
Steel Mill (fordynamo and transformer grade steel) and galvanized lines (for
corrugated and plaingalvanized sheets). Subsequently to the expansion of the steel
plant a number of unitswere added to enhance the product quality, production,
productivity and to meet themarket needs. These units included Blast Furnaces,
Spiral Weld Pipe Plant, Silicon
Steel Mill, Captive Power Plant-II, Mechanical Shop, Structural & Fabrication
Shop,Heavy Loco Repair Shop, Slag Granulation Plant and Coke Oven Battery
number 5.
In order to overcome technological obsolescence and to remain competitive in
themarket place, even internationally, RSP went in for modernization, which
wasconceived in the year 1988. Phase-I of modernization, which emphasized on
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improving the quality of raw materials, consisted of new Oxygen Plant at Blast
Furnace-4, Raw Material Handling System, Coal Handling Plant (in Coke Ovens)
andpower Distribution system, was completed in the year 1994. Phase-II consisted
o f anew Sinter Plant, basic Oxygen Furnace and Slab Casting Shop-II,
modificationof
Plate Mill and Hot Strip Mill and installation of Slab Casting Shop in SMS-I,
exceptfor Hot Strip Mill, which was completed in the year 1999, all the other areas
werecompleted in the year 1997.
Rourkela Steel Plant is one of the unique steel plants under the SAIL
umbrellawith a wide variety of special purpose steels. The use of its plates in Ship
building andhigh pressure vessels, Silicon Steel in electrical industries, Corrugated
galvanizedsheets for roofing including industrial roofing, Pipes in the oil & gas
sectors, TinPlates in packaging industries and Special Plates in the defense of the
nation is wellknown.Most of the Production and Services units of Rourkela Steel
Plant have beencertified by M/s RWTUV, Germany to ISO 9001:2000 Quality
Management System.American Petroleum Institute (API) also certifies the Pipe
Plants of RSP to API Q1Quality Assurance System Sixth Version in August 2000.
The units certified under ISO 9001:2000 QMS are as follows:
10
STEEL AUTHORITY OF INDIA LIMITED
Ranked amongst the top ten public sector companies in India in terms of
turnover, SAIL manufactures and sells a broad range of steel products,
including hot and cold rolled sheets and coils, galvanized sheets, electrical
sheets, structural, railway products, plates, bars and rods, stainless steel and
other alloy steels. SAIL produces iron and steel at five integrated plants and
three special steel plants, located principally in the eastern and central regions
of India and situated close to domestic sources of raw materials, including the
Company's iron ore, limestone and dolomite mines.
SAIL has a well equipped Research and Development Center for Iron and
Steel (RDCIS) at Ranchi, which helps to produce quality steel and develop
new technologies for the steel industry. Besides, SAIL has its own in-house
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Center for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organization at Ranchi. Our captive mines are
under the control of the Raw Materials Division in Calcutta. The
Environment Management Division and Growth Division of SAIL operate
from their headquarters in Calcutta. Almost all our plants and major units are
ISO Certified.
With the capacity of 12 million tones (MT) of crude steel, the Steel
Authority of India Limited (SAIL) is India’s largest and among the leading
steel producers in the world with a turnover of over Rs 32,280 Crores.
Going beyond steel production, SAIL has formed several joint ventures in
different areas ranging from power plants to e-commerce. Three are with
NTPC and DVC for taking care of steel plants captive power requirements,
one with USX engineers and consultants, a subsidiary of US steel
corporation, for prompting IT in steel sector, and one with Bansal
mechanicals works for a service center at Bokaro. SAIL and TATA steel
have also jointly set up metaljunction.com Pvt. Ltd, company managing e-
commerce activities in steel and related areas.
The SAIL corporate office in New Delhi manages and overseas these vast business.
BUSINESS DEVELOPMENT
Apart from providing primary medical, health and educational facilities to the
people living in and around its townships, SAIL has been undertaking several
initiatives to promote art and culture of the country ,With four spots
academies under its fold, SAIL continues to promote spots as an integral part
of the company’s corporate philosophy.
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Corporate Plan, 2012 (CP12) was formulated in 2004 for 4 integrated steel
plants for increase in Hot Metal production to 20 Mt by 2012. After
merger of in IISCO Feb ’06, the Hot Metal production Plan was revised to
22.5 Mt by 2012. Expansion of Special Steel Plants was also included.
Besides capacity enhancement, the plan also addresses the need of SAIL
Plants towards eliminating technological obsolescence, energy savings,
enriching product mix, pollution control, developing mines & collieries to
meet higher requirement of key raw materials, introduce customer centric
processes and have matching infrastructure facilities in the Plant to
support higher production volumes. Investment to the tune of Rs 34,982
crore was envisaged under the Corporate Plan. It was envisaged to take up
the Projects in segregated manner based on the Techno-economic viability
of each project.
Objectives of CP12
100% production of steel through Basic Oxygen Furnace (BOF)
route .
100% processing of steel through continuous casting.
Value addition by reduction of semi finished steel.
Auxiliary fuel injection system in all the Blast Furnaces.
State-of-art process control computerization/ automation.
State-of-art online testing and quality control.
Energy saving schemes.
Secondary refining.
Adherence to environment norms.
The Corporate Plan, 2012 was reviewed by Hon’ble Minister of Steel in
Jul’06, wherein it was decided to take up the Expansion of Integrated
Steel Plants and Special Steel Plant in one go based on Composite Project
Feasibility Report (CPFR). By that time Expansion of IISCO Steel Plant
and Salem Steel Plant was already approved “in-principle” based on the
Techno-Economic Feasibility Report (TEFR) of MECON. For the
Expansion of other four integrated Steel Plants, MECON was assigned the
job of Preparation of CPFR in Aug’06. The CPFR for the four integrated
steel plants was prepared by MECON. ‘In principle’ approval has been
accorded by SAIL Board for the expansion plans of IISCO Steel Plant
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(Jul’06), Salem Steel Plant (Jun’06), Bokaro Steel Plant (Dec’06), Bhilai
Steel Plant (Apr’07), Rourkela Steel Plant (May’07) and Durgapur Steel
Plant (Jul’07).
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BUSINESS PLANNING
Planning set up in August 1979, was renamed as Business Planning in the
perspectiveyear 1989. The purpose of the department is to formulate long term
divisional
plaforour Item 2006-07 Capacity as
plant (Actual) per Expansion
covering the
Plans 2010
areas of Hot 14.61 26.18
production, Metal
purchase, Crude 13.51 24.59
finance and Steel
sales. It Saleabl 12.58 23.13
e Steel
concernswith the planning of the total resources of the Organisation for the
achievement ofquantified objectives within specified time.
The main objectives of the department are:
To identify the mission of RSP.
To define its objectives and adopt suitable policy.
To prepare long term and short term business plan.
To identify the gaps between the standards and actual performance in critical
areas.
To anticipate changes that affect production and external environment.
This has brought a better understanding of the inter-relationship between the
variousinput resources required for the conversion of these inputs into profitable
products tomeet the needs of our customers
15
VISION OF ROURKELA STEEL PLANT
To be a respected world-class corporation and the leader in Indian Steel business in
quality, productivity, profitability and customer satisfaction.
Customer’s satisfaction
Quality control
Less Scrap
Better facility & Adaptability
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TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) Department started functioning
independentlysince January 1992 with an objective to establish company wide
Total QualityMovement in RSP. TQM has been adopted in RSP on the “business
philosophy” andtoday forms the core of all our business strategy. No other
strategy can be predictiveof success in today’s competitive environment. We have
been able to realize the“customer first” approach and percolate down upto the
workmen level with associatedchange in our attitude towards quality of our work
in general and quality of product inparticular. Our first endeavour was to
implement ISO 9002 QAS in both the PipePlants. Accordingly M/s TUV INDIA
(PVT) LTD., New Delhi, the Indian counterpart of M/s RWTUV, Germany, has
been appointed as certifying body. Pipe Plantswere certified to ISO 9002 QAS
(International Organisation for Standardisation 9002Quality Assurance System)
in December 1993. Subsequently Plate Mill was certifiedto ISO 9002 QAS in
December 1994. ERW & SWPP have been certified to API Q1(American Petroleum
Institute Q1) since inception.So far 24 units/departments have been certified to
latest version of ISO 9001:2000Quality Management System (QMS). In line with
the policy of our Corporate office,Silicon Steel Mill and Environment Engineering
Department were certified to ISO14001 Environment Management System (EMS)
by M/s Bureau of Indian Standards(BIS) in the year 2000. Subsequently SP-II,
HSM, PM have been certified to latestversion of ISO 14001:2004 EMS. Quality
17
Policy, Environment Policy of RSP have
been developed with approval of MD, RSP and it is being reviewed from time to
timeby Steering Committee. To implement, document and maintain QMS in RSP
theThree Tire Management Review is held regularly by HODs, GMs and
ED(Works).To continually improve the TQM culture, Quality Improvement Teams
(QITs) havebeen formed in major departments including Medical with HODs as
chairman .
Different sectional heads of departments have taken up Quality Improvement
Projects (QIPs) for overall improvement of the process and that have also yielded
good results. To inculcate TQM culture among the employees of RSP, Quality
MonthCelebration are held regularly. Quality Essay, Quality Debate & Quality
QuizCompetitions are held every year among employees to bring Quality
Awareness andmotivation.
RSP participated in Quality Awards in 1991-92, organised by CII, Eastern Region,
where certificate of appreciation have been awarded for making a meritorious
beginning in the introduction of TQM.
Marketing Strategy
Definition
Written plan (usually a part of the overall corporate plan) which combines product development,
promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how
18
they will be achieved within a stated timeframe. Marketing strategy determines the choice of target
market segment, positioning, marketing mix, and allocation of resources. See also strategic plan
JOINT VENTURES
SAIL has promoted joint ventures in different areas ranging from power
plants to e-commerce. The important joint ventures of the company are;
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MAJOR UNITS OF SAIL
STEEL PLANTS LOCATION
Bhilai steel Plant Bhilai, Chhattisgarh.
Bokaro Steel Plant Bokaro, Jharkhand
Durgapur Steel Plant Durgapur,West Bengal
Rourkela Steel Plant Rourkela , Orissa
IISCO Steel Plant West Bengal
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CENTRAL MARKETING ORGANIZATION
(CMO)
All SAIL ‘s products except alloy, special steels and stainless steels are
marketed directly by CMO through units in co-ordination with rail, roads and
shipping sector to ensure quality and promote dispatch of products. The main
functions of CMO are as follows.
21
ROURKELA STEEL PLANT
The public sector integrated steel plants, conceived by Pandit Nehru, are a
tribute to his vision. They epitomize the industrial renaissance that was
ushered in soon after independence. Rourkela steel plant (RSP), the first
‘temple of modern India’ stands proud as a symbol of the visionary zeal of
the founding fathers.
The plant, which was started in the mid- fifties in collaboration with the
leading steel makers of Federal republic of Germany, carried the banner of
industrial revolution for the nascent republic. Over the years, RSP has made
immense contribution in almost every facet of nation building
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4. It has got an electrical sheet mill capable of producing both Dynamo
and Transformer grade electrical sheet.
5. It has a special plate plant where special alloy Steel Plates are shaped
to different shapes as per requirement in the defense sector.
6. RSP has the distinction of being the unique Steel Plant in India with an
integrated Fertilizer Complex.
7. It has two captive power plants (CPP-I & CPP-II) with a generation
capacity of around 120 mw.
.
PRODUCT-MIX CAPACITY
(TONNES/ANNUM)
Plate Mill Plates 325,000
HR Plates 130,000
HR Coils 746,000
ERW Pipes 45,000
SW Pipes 55,000
CR Sheets & Coils 220,000
Galvanized Sheets (GP& GC) 1,80,000
Electrolytic Tin-Plates 60,000
Silicon Steel Sheets (CRNO) 75,500
Special Steel Plates 3,000
Total Saleable Steel 1,839,000
23
24
RSP PRODUCTS
HR COILS
Available in Indian standard or equivalent international specification for
wide range of engineering and also to suit specific requirements such as tube
making and cold rolling of low carbon DD and EDD quality, medium
carbon, high carbon hot rolled coils for strap making after cold reduction
etc.Hot rolled coils are
also used for general
purpose sheet applications
like telephone poles. Light
plates in 5 & 6 mm
thickness are available in
Indian Standard
specifications for diverse
engineering applications
including railway coaches
and auto body
components.
PLATES
25
Available in Indian standard and equivalent international specifications for
welded and riveted structural applications, fired and unfired pressure vessels
or low temperature application, high strength needs, abrasion resistant usages
, automobile chassis and almost every other general purpose requirement.
GALVANISED SHEETS
ELECTROLYTIC TIN
PLATES
TINPLATELINE
Available in equal and differential coating range from 5.6 gm/m 2 to 22.4
gm/m2 coating weight and a variety of tempers suitable for the manufacture
26
of beautifully printed and plain containers for packaging of all kinds of
products.
ERW PIPES
Available in API and other international specifications and also works tested
commercial qualities fro applications ranging from high pressure crude oil
and petroleum products transportation to water supply systems and also for
the tube wells and irrigation purposes. The ERW pipe plant has high
frequency welding system and seam normalizing facility. Available in API
and other international specifications as also in works tested commercial
quality for applications Ranging from high pressure transportation of crude
oil, natural gas, slurry transport, water supply and sewage disposal to civil
engineering pilings
ELECTRICAL STEEL
The Silicon Steel mill designed for the manufacture of Cold Rolled Non-
Oriented and Cold Rolled Grain Oriented high Silicon steel sheet is now
complete and the products are being manufactured with the know-how of
ARMCO Steel Corporation, U.S.A Electrical Steels from this new mill are
available in the form of full width coils, slit coils, and cut sheets in coated
condition (C4/C3) in case of CRNO and C5 over C2 in case of CRGO
SPECIAL STEELS
27
The broad spectrum of flat and tubular products from RSP has widened
perceptively with the addition of various special quality steels giving it the
distinction of a bulk producer of special purpose steel.
28
PRODUCTS APPLICATIONS
LPG Cylinders, automobile, railway wagon chassis and
many types of high-strength applications
HR Coil
I &S SPECIA PIG B.F COKE FER FERT COA WASTE AUCTIO IDLE TOTAL
SCRA L IRO SLA FRAC T INTE L PRODUC N ASSET
P PLATE N G T R CHE T & S
M DISPOSA
L
2001-02 185.28 27.16 _ 17.12 11.97 5.22 32.50 32.22 1.84 17.60 8.76 339.67
2002-03 240.01 21.30 _ 18.37 20.19 5.74 20.85 37.35 2.29 28.73 20.31 415.14
2003-04 244.56 14.50 _ 18.71 22.00 4.84 _ 39.11 3.14 26.60 6.66 379.12
2004-05 198.93 23.23 _ 19.24 20.17 6.57 _ 39.17 2.51 17.21 2.85 330.42
S2005-06 179.31 37.59 _ 23.32 12.18 6.38 _ 40.03 4.96 24.31 3.64 334.70
2006-07 311.73 101.52 _ 24.00 7.23 7.64 _ 74.59 5.04 25.06 9.99 567.60
2007-08 277.50 106.97 50.89 15.91 2.54 9.12 _ 79.73 3.18 21.70 0.70
568.24
.
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two major departments under RSP as the Secondary Steel Stockyard and
central disposal yard.
.
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ORGANIZATIONAL STRUCTURE OF MARKETING (RSP)
Mr. B.N Singh
Managing Director (RSP)
Mr. D. Saha.
DGM, I/C (Marketing)
Central Disposal
Ideal Assets
Mr. S.K. Behera yard
Manager
Mr. J. Nayak Mr. I.M. Panda
Mr. R. Panda. Manager Manager
Jr. Manager (Marketing) (Marketing)
32
MARKETING SECTIONS
Marketing section of RSP has four major sections they are as follows.
• Secondary Steel Stock yard
• Central Disposal Yard.
Everyday SSSY sends the lists of plots/lots available for allotment .The
plots/lots are fed to the computer. All the items and valid sale orders of those
products are separately randomized through computer on that day and lists
are generated. Based on random list the senior plot/lot of the senior. Item is
allotted to the senior valid sale order. There are certain things, which are
taken into account. After all the customers have been considered the next
round for allotting materials is started.
The following aspects are checked through computer:
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A private contractor is appointed for loading and unloading the
material at SSSY.
After the payments have been made the release order is issued, which
is a financial document of sale. This contains party name , award
price , details, and last date of lifting .
Materials going out of SSSY, an invoice will be made-then dispatch
advice will be given on which one can take out the material.
On the last day lifting the material DCR (delivery completion report) is
issued for each lot, which come to the finance department.
This DCR is required for refunding EMD money to the customer.
2Central disposal yard indicates the area where the materials of different
shape and size declared as scrap of unserviceable or absolute are stored. The
materials are collected from different units of plants as per Executive
Director (Works) procedure order; these are collected daily basis and
recorded in a registered called “DAY BOOK”. The scope of this procedure
order is restricted to all arising of RSP except for those which are sold by
marketing department to ancillary industries and unused arising of RSP’s
own products.
SECONDARY PRODUCTS
.
• IRON STEEL SCARPS
CR Steel Items
HR Steel Items
Scarp of pipes
Semi Rolled Plates
Short plates
Coil End cutting
Def. HR Coils
Def. CR Coils
Def. GP Sheets
Def. Plates/HR Plates
Def. CRNO Sheets
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Def. chequered Plates
Pig Iron
• SPECIAL PLATES
Misc Iron and Steel Items
BF Granulated Slag
• COAL CHEMICALS
HP Napthalene
Anthracene Oil
LCO GR-II
Carsolic OilR
• FERTILIZER
AMM. Sulphate
• WASTE PRODUCTS
Ferrous Sulphate
U/R FCLY Bricks
Cal. Lime-10mm
Cal. Dolofine
Mag Carbon Bricks
LD Slag
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Purpose of Online Marketing
When marketing online, the general four step process of marketing is still the
guiding idea, in the online world the character of marketing becomes more
deeply a conversation between a marketer and a market-of-one a concept that
is central to The cluetrain manifesto. In such a role as a communicator, the
online marketer is in a position to build awareness of her/his company or
business in more personal terms than otherwise, and in so doing enables a
more human conversation. Such conversations tend to be more warts and all
and should establish confidence of the potential purchaser in the potential
vendor Smith and Chaffey (2001) claim that Internet technology can be used
to focus marketing on the customer, while at the same time linking to other
business operations so as to achieve profitability. This can be done by
Identifying
The Internet can be used for marketing research to find out customer’s needs
and wants.
Anticipating
The Internet provides an additional channel by which customers can access
information and make purchases - understanding this demand is key
to governing resource allocation to e-marketing.
Satisfying
A key success factor in e-marketing is achieving customer satisfaction
through the electronic channel, this raises issues such as is the site
easy to use, does it perform adequately, what is the standard of
associated customer service and how are physical products
dispatched?
36
Detractors of this concept of human-to-human contact through online
conversations suggest that companies are going to be careful about marketing
in this manner and perhaps will never really have honest and open
conversations as the interests of companies and businesses are not the
interests of potential purchasers. The cluetrain manifesto allows for this type
of thinking suggesting that businesses when marketing in this manner need to
be thinking about more than just making money; if a business is thinking only
about making money, it will become apparent in close online conversations
and the market will treat that business in whatever manner it may as markets
can now talk to each other through the same means marketers talk to potential
customers.
37
TERMS AND CONDITIONS OF ORDER BOOKING SYSTEM
But now the system has changed completely. As it has mentioned that they
are followed online auction to their secondary products. For this system
Rourkela Steel Plant has to pay 1% as a commission to it. The system
provided by metaljunction.com generates maximum revenue for Rourkela
Steel Plant with least outlay of the materials. This system has been effect of
use to RSP from the year 2003 – 04 . We can compare the revenue generation
and sales of material by the old system with out metaljunction.com and the
system of metaljunction.com (new system).
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PRICING
The various categories of secondary products, which are homogenous in
nature, are sold on a “Fixed price basic”. A high-powered standing pricing
committee fixed the prices. MD constituted this committee; this committee
plays a vital role because the customers are very much depend upon their
decisions.
While fixing the price of such scraps, a number of factors are taken into
account by the pricing committee.
a) Marketed feedback from 5 RSP’s zonal officers located in New Delhi,
Mumbai, Chennai, Kolkata and Bangalore.
b) Order position of individual items.
c) Stock position of all the items in SSSY as well as in mills.
d) Pricing of comparable items of sister steel plants.
e) General feed back from market, including representation, if any
receive from recognized bodies like Rourkela Chamber of commerce
and industries, Rourkela.
f) Bids received against plots/lots offered for sale through best offer.
The prices are revised periodically that is usually once every month taking
into consideration the prevailing conditions, feed back from zonal Offices
and feed back from the local market.
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METAL JUNCTION SERVICES LIMITED
www.metaljunction.com
• Provides e-selling services for the following materials:
• Steel
• Ferro alloys, minerals and metallic
• Non-ferrous metals
• Obsolete capital goods (idle assets)
• Also provides e-selling services on a BPO mode.
• Has sold 3 million tonnes for its clients, since inception up to
September 30, 2005.
• Provides finance to distribution channels / direct end users in
association with leading banks. Has arranged finance of Rs 28.7 billion
till September 30, 2005
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In online auction every one can take participate in India, so there is a big
chance of false registration, for that there are some conditions.
Before take participate in the auction the vender should deposit Rs 1,
00,000 as security deposit that is called earnest money deposit (EMD).
After receiving the security the vender is eligible to get the ‘password’.
All quotations submitted by the Supplier/his authorized
agent/representative by logging on to the above web site for Enterprise
Procurement System using the User Identification provided by the
Service Provider and password by which the person logging into the
Enterprise Procurement System is authenticated and filling up the
structured on-line forms available against each Invitation to Tender,
shall be considered as legal and binding documents having in all
opinions the same legal validity as a physically signed quotation by the
Tenderer/His authorized agent/representative.
In the event of the Tenderer having submitted more than one quotation
against an Invitation to Tender, only the latest quotation submitted by
him shall be considered as the valid quotation for consideration of
opening of the quotation and issuance of Acceptance of Tender by the
company. All earlier quotations submitted in the Enterprise Procurement
System shall be deemed to be superceded and invalid and will remain
un-opened in the System and also not available for viewing the details
by the Tenderer or the company or the Service Provider once the valid
quotations against the said Invitation to Tender are opened on the
scheduled date and time by the company’s authorized representative.
Once the quotations against an Invitation to Tender submitted in the
Enterprise Procurement System are opened, the Tenderer/s shall be
legally bound to honour the contract, which may arise out of the
acceptance of the said quotation. In the event of non-acceptance of the
contract so awarded and arising out of such quotations (including any
subsequent confirmations on price, technical and commercial grounds
from the Tenderer) the company shall have access to all and same legal
remedies available for enforcement of the contract as available had the
quotations been submitted by the Tenderer on paper attested with a
signature of an individual so authorized.
Once the quotations are
opened, the Tenderer shall have no claim to withdraw the quotations on
the grounds that he had not understood any part/total of the web posted
Invitation to the Tender and/or that he had not submitted the quotations
and/or that his user-id and password had been wrongly used by someone
else not authorized by him and/or that the authority of the personnel who
41
had been entrusted with the user-id and password had since ceased
and/or that the prices, technical parameters and terms and conditions
which are available on-line in the Enterprise Procurement System are not
the ones that the Tenderer had submitted originally. The maintenance
and security of the user-id
Legal Jurisdiction: Any Contract with the Company, arising out of the
Enterprise Procurement System shall be deemed to have been formed
entirely at Rourkela, notwithstanding the place from which tender has
been submitted. Subject to clause 7 above, legal proceeding shall be
trialed by the Civil Courts having territorial jurisdiction over Rourkela.
42
Provider for obtaining the required User Identification and passwords for
authentication for the Enterprise Procurement System, which thereafter
will be maintained by the Tenderer’s authorized personnel.
That the Tenderer can thereafter, subject to their agreement to the terms
and conditions stipulated for each of the Invitation to Tenders posted by
the company, submit their quotations in the Structured Formats available
for the purpose in the Enterprise Procurement System web site indicating
the Prices, Taxes and Duties, Freight and all relevant Technical and
Commercial contractual information as applicable and desired by them.
That once the Tenderer fills up the on-line forms for submission of
quotations, the data contained in these forms will be stored in the
Service Provider’s Servers in a secure encrypted form neither available
or visible to any agency including the Service Provider or the company
till the time and date of opening of the Invitation to the Tenders against
which such quotations are submitted, or till such extended time and date
of submission as may be indicated against the tender, subsequent
communications at the discretion of the Company.
That the Tenderer can during the time and date for which the Invitation
to Tender is valid for submission of Quotations, submit fresh quotations
in super cession of his earlier quotations, in which event the latest
quotation submitted by the Tenderer only will be considered as Valid.
43
After receiving the above documents and terms signed by the vender, RSP
give them the password; so that they can access and take participate in
that auction.
44
AUCTION OF THE MATERIALS
Earlier, there was the process of “Order Booking System”, in this process
50% of the secondary product material is placed for auction to small scale
Industries (SSI) of ORISSA, while the remaining 25% for open sale and 25%
for registered traders. In this system the venders were not in a position to
accept the material at any cost and RSP was forced to sale the less defective
secondary product at a cheaper rate. Due to limited capacity of stock, RSP
sold the chemicals at a very cheap rate to the local venders. RSP still follows
the open sale auctioning in some cases. If the secondary items fail to make
any rising demand, then those materials are sold through open auctions.
PAYMENT PROCEDURE
After receive the sale order, which contains the detail information about the
materials, vender name, and dispatch date, payment conditions. The venders
get some stipulated period for lifting the materials as followed.
The EMD has to pay by the customer to take part in the auction. Those who
do not get any allotment for the material their EMD has refunded by RSP, but
for those who got allotted of material but failed to make payment for them
some penalties are there. The penalty will be charged to the total amount of
material left in the stockyard. If the party fails to make payment in respect to
the total amount of material, then the party will be banned for a period of 3
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months to take any part in the online auction plus from the financial aspects
5% will be charged on the total lot value subject to Rs 1, 00,000 and the rest
amount will be refunded to the vender after deduct the 5% penalty.
More customers are created through this online auction. Since they can
participate any where across India.
Through this online auction Rourkela Steel Plant getting good price for
their secondary products and it helps to create a good and healthy
competition.
Better consumer satisfaction because all the activities done under one
roof that is called “Single Window System”.
Through this they are able to generate very high revenue.
This process is very useful as compared to order booking system.
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SWOT ANALYSIS ON ROURKELA STEEL
PLANT
STRENGTHS
RSP has a dedicated and hardworking team on the marketing.
RSP marketing strategy is very much efficient in marketing the
secondary products.
RSP has a very large secondary steel stockyard of 80,000 sq.mts,
which has all the facilities that helps the stocking, and delivering of
secondary products made easy.
The computer networking system use by the RSP is one of the best
system in the industry, it make-work easy.
Metaljunction.com/ on line marketing system adopted by RSP is one of
the biggest strength of RSP marketing
RSP’s most production units are ISO-9001 certified which helps
increasing customer confidence, and improve efficiency effectiveness.
Single window concept adopted by SSSY
WEAKNESSES
Lack of internal customers’ orientation inhabits implementation of plans
to a substantial extent.
Near to RSP there are less number of cement industries. So RSP can not
sell their BF granulated slag.
RSP does not compromise much on the reserved price fixed for the
secondary products due to which many material remain blocked and day
by day their value depreciates.
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OPPORTUNITIES
In the globalized world there is huge demand of steel for the
nation’s infrastructure development.
Increasing demand of steel at the international level has raised
hopes for the export of steel from India.
Due to economic boom many small-scale industries have come up,
so for that reason small industries demand more steel from SAIL.
THREATS
Due to open economy public sectors are facing more
competitors in their marketing fields. Likewise TATA, JINDAL,
ESSAR, MUKUND, NIPPON ,ELIGEN STEEL, Etc, provide
goods at lower cost.
Good qualities of coals are not available in
India. for that SAIL depends upon other country’s.
The use of plastic and aluminum as a
substitute for steel is posing a major threat to steel industry.
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FINDINGS
RSP has taken lots of steps in marketing quality steel. New players have
entered into the steel market. Each player would like to gain in terms of
market share. As a forward step, lots of innovations of products have been
made to occupy an important market share. RSP gives priorities to various
customers problem, its pricing and distribution policy. RSP’S now emphasis
is making oriented strategies.
The marketing division of RSP is doing lot of credit worthy job in handling
various customers oriented and market oriented problems. They have
acquired a lot of talents and those are able to deal with various customers
diplomatically. The various works are systematically executed and also
documented by the marketing division. Greater market orientation has
percolated across the organization. The marketing set up itself has undergone
change with re-organization along product lines, bifurcation of sales and
warehousing functions, use of dealer channel and improving its effectiveness.
Many new technologies have been introduced like- online auctioning,
through which it can market its products throughout the country through
Internet marketing .
SUGGESTIONS
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Considering all the facts I think there should be some changes in the
marketing policies of RSP. Some of the suggestions are given below:
to give RSP the strength to grow under the competitive scenario. The
dispatch to the destination with the railway in this regard should be given
priority.
Customer database should be maintained for incorporating product wise /
zone wise requirements.
RSP should develop its sales promotion strategy to attract more
customers.
It should look after the growth of small-scale industries, which depends on
the secondary products from RSP.
RSP should develop its production units so that it will help to reduce
productions of secondary products and produce more primary products.
RSP should concentrate on minimization of the inventories and need
proper planning and scheduling.
Continuous efforts should be made to develop the marketing system and
policies in order to satisfy the customers and maintaining their reliability.
An ERP system should be installed for better result and smooth
functioning of each activity in the plant.
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CONCLUSION
Rourkela Steel Plant has completed six decades of existence and during this period there
has been complete shift, moving from a monopolistic state to a totally competitive market
environment. Over the years many changes were initiated. It being the pioneer in
production of wide varieties of iron & steel and also produces diversified varieties of
secondary products during the production process. RSP caters to a varied and wide
spectrum of consumers. There is hardly any industry, which does not utilize its products
either directly or indirectly. Customers are the beginning and end all business pursuits.
Total satisfaction of customer’s requirement in all aspects is therefore the key to success
of any business organization. Hence RSP now aims at devoting it energies towards
producing quality and creating value for customers. Every operation, however small or
big is carried out for keeping the customers and his expectation in mind.
RSP is taking a lot of steps in marketing of steel. New payers were entered into
the steel market. Each player would want to gain in terms of market share. As a forward
step, a lot of innovations of products have been made to occupy an important market
share. RSP gives priorities to various customers problems, its pricing and distribution
policy. RSP now gives emphasis on making market oriented and customer oriented
strategies.
The marketing division of RSP is doing a lot of credit worthiness job in handling
various customer oriented problems. Marketing division has acquired a lot of talents and
these talents are able to deal with various customers’ needs. These various needs are
collected by the talents of marketing department and take proper steps to meet the
requirement of costumer’s demand as well as face the current challenges of the market.
Greater marketing orientation has percolated across the organization. The marketing set
up itself has undergone change with re-organization along with product lines, bifurcation
of sales & ware housing functions, use of dealer channel and improving its effectiveness.
So, from the above discussions, RSP has a hope of bright and prosperous future from its
marketing division.
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BIBLIOGRAPHY
www.sail.co.in
www.metaljunction.com
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