SUMMER INTERNSHIP ON THE

PROJECT
“MARKETING OF SECONDARY AND BY-PRODUCTS”
AT
BOKARO STEEL PLANT (SAIL), BOKARO

GUIDED BY: SUBMITTED BY:

MR. RITURAJ ABHISHEK

MANAGER ( MARKETING) BSL URN: 5908390

Bokaro Steel Plant {SAIL}

 ACKNOWLEDGEMENT
An endeavor is not accomplished and successful till the people who have made it
possible are given due credit for making it possible. I take this opportunity to thank
all those who have made the endeavor of mine successful.

With, All thankfulness to the undersigned personalities, I hereby extend all my

gratitude and respect for the fruitful guidance provided by them, which has made
possible the completion of the project on “MARKETING OF SECONDARY AND
BY-PRODUCTS OF BSL”. The success of this endeavor is directly attributed to
my respected faculty member for this generous support and enthusiasm.

First of all, with the deep sense of gratitude I would like to acknowledge and thank,
Mr. HARI MOHAN JHA,(DGM T&D) and training coordinator for accepting me
as an intern for successful completion of this dissertation.
I would like to special thanks to Mr. RITURAJ (Manager Marketing), Mr. B. K.
SINGH (Asst. Marketing Manager) and all the officers of marketing department,
Mr. VIKRAM SINGH (Manager mjunction) for their continuous encouragement
and furnishing me all the necessary information and material.

They all guided me with their seasoned approach towards my training.

ABHISHEK

2
 CERTIFICATE

STEEL AUTHORITY OF INDIA

Bokaro Steel Plant

This is to certify that the project work entitled “MARKETING OF

SECONDARY AND BY PRODUCTS IN BSL” has been carried out and
submitted by ‘ABHISHEK’ bearing the Trainees Number: 5908390 under my
supervision and guidance in partial fulfillment of his course “INTEGRATED
MBA” from “CENTRAL UNIVERSITY OF JHARKHAND”, during the
period of 27 May - 20 June, 2019.

Date - Signature -

Seal & Stamp of the organization.

MR. RITURAJ
MANAGER (Marketing)
BSL {SAIL} BOKARO

3
 INDEX

Sl.No. TOPICS Page No.

1. Executive summary 05

2. Introduction of Study 06-07

3. Objective of Study 08

4. Introduction of Subject 09-19

5. Analysis of 4 P’s 20-21

6. Mode of Sale 22

7. E-Auction 23-28

8. SWOT Analysis 30-32

9. Findings 33-34

10. Suggestions & Recommendations 35-36

11. Conclusion 37-38

12. Abbreviation & Bibliography 39-40

PROJECT AT A GLANCE
4
Marketing of secondary and By-product of Bokaro steel plant is a pioneer
attempt, based on authentic information, at chronicling the background, origin,
growth, development, performance and prospect of India’s largest steel complex.

The study was mainly conducted in Marketing Department, metaljunction and

others. I found how auctions, fixed price and tenders are used for marketing
purpose for secondary and By-products in BSL.

Mode of sale, elaborate the mammoth activity of marketing activity of Marketing

Department for selling the secondary and By-product and also describe the rule
and regulation followed by the BSL and customer during the online auction. In E-
auction, 90% of secondary products were sold and rest through fixed price,
MOUs, tenders etc. Data were mainly collected by Marketing Department of BSL
through observation of secondary data.

SAIL is a Maharatna company and one of the largest steel manufacturing entity of
India.

During my training, I had to find out mode of sale of secondary product of BSL. As
primary products are sold by CMO, Kolkata. Bokaro steel plant recognizes that
leadership is essential for survival in competitive environment. Customer’s
satisfaction like quality is a journey and not a destination to lead the steel sector.
It is essential that everyone in the company have a clear understanding of what
customer satisfaction means if the plant aims to achieve leadership in customer
satisfaction.

The selected Bibliography indicates the range and depth of the search for
authentic source of information.

INTRODUCTION OF THE SUBJECT

5
Reason to choose the subject “Marketing of secondary and By-product of BSL”
because SAIL is the largest steel manufacturing undertaking of India and has a big
contribution of secondary and By-product to total sale, which is pre-determined
for success of the company. By selling the secondary and By-product in local
market, company is earning much revenue. It is also creating an employment in
small scale industries and developing the economy.

During my training I had to find out mode of sale of secondary and By-products of
BSL. Primary products are sold by Central Marketing Organization (CMO), Kolkata.
It was privilege for me to take this opportunity a challenging work to study and
observe “Marketing of secondary and By-products in BSL”, an organization which
is a unit of Steel Authority of India Limited (SAIL) and Central Marketing
Organization (CMO) is having the Head Quarters at Kolkata.

In the recent years a number of foundries and re-rolling Mills come into existence
throughout the country. These small-scale sectors need the “secondary products”
as input raw materials for their production. The company has used these products
for manufacturing different kinds of end products for consumption of general
public. The plant extends all types of facilities and assistance to these small-scale
units. This, in turn gives scope for more employment opportunities.

We have chosen SAIL for knowing the marketing policies and procedures being
followed in BSL, Marketing Department for sale of secondary products and By-
products. This study will help to make the industry flexible and also there will be
good environment in the industry through reducing the disposal and waste
materials in the industry.

OBJECTIVE OF THE STUDY

6
Main objectives are: -

 To know what is secondary and By-products and why it is necessary to sell

these products.

 To know the use of the secondary and by-products.

 Market study of secondary products in BSL.

 To know the pricing strategy of secondary products in BSL.

 To know the requirement and specification to be followed by the

customers to buy the secondary products.

 To know the other terms and conditions for marketing of secondary

products in BSL.

INTRODUCTION
7
 STEEL AUTHORITY OF INDIA LIMITED

FORMATION OF SAIL
Steel Authority of India Limited (SAIL) is the largest steel-making company in India
and one of the seven Maharatna’s of the country’s Central Public Sector
Enterprises. It is fully integrated Iron and steel maker, producing both basic and
special steels for domestic construction, engineering, power, railways, automotive
and defense industries and also for sale in foreign markets.

During struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister,
had a very clear vision about the role of steel in the development of our country.
Although TATA Iron & Steel Company (TISCO) has been established in 1907
marking the beginning of Indian steel industry followed by Indian steel co. (1918),
they were too small to meet the development requirement of such a big country
like India. Therefore, In the 1 st industrial policy resolution of the Indian Govt. soon
after the independence, Indian Govt. decided to establish steel plants in Public
Sector. However, work could be started at fast pace only in 1954, when Hindustan
steel ltd., was formed and three steel plants of 1 MT capacity each were
established with provision of further expansion at Bokaro, Rourkela and
Durgapur with assistance from USSR, west Germany and U.K. respectively.

Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was
coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work
was done by the Iron and Steel Ministry. From April 1957, the supervision and
control of these two steel plants were also transferred to Hindustan Steel. The
registered office was originally in New Delhi. It moved to Calcutta in July 1956,
and ultimately to Ranchi in December 1959.
The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of
December 1961. The 1 MT phase of Durgapur Steel Plant was completed in

8
January 1962 after commissioning of the Wheel and Axle plant. The crude steel
production of HSL went up from .158 MT (1959-60) to 1.6 MT. A new steel
company, Bokaro Steel Limited, was incorporated in January 1964 to construct
and operate the steel plant at Bokaro. The second phase of Bhilai Steel Plant was
completed in September 1967 after commissioning of the Wire Rod Mill. The last
unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in
February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in
August 1969 after commissioning of the Furnace in SMS. Thus, with the
completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at
Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in
1968-69 and subsequently to 4MT in 1972-73.

To improve the functioning of steel industry, Govt. decided to form a holding

company during 1972, which was named as Steel Authority of India Ltd. (SAIL) and
the same was incorporated on January 24, 1973 with an authorized capital of
2000 crores.

SAIL was formed by registration of a company under the companies Act and not
by the Act of parliament. Govt., decided to abandon the holding company concept
in 1978 and a bill was presented to the lok sabha. Accordingly, SAIL was again
recognized in the following manner.

Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International Ltd.,
Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly owned subsidiaries of SAIL merged
into it and started functioning as Units of SAIL.

9
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. SAIL manufactures and sells a broad
range of steel products.

The Government of India owns about 75% of SAIL's equity and retains voting
control of the Company. However, SAIL, by virtue of its ‘Maharatna’ status, enjoys
significant operational and financial autonomy
Since its inception, SAIL has been instrumental in laying a sound infrastructure for
the industrial development of the country. Besides, it has immensely contributed
to the development of technical and managerial expertise. It has triggered the
secondary and tertiary waves of economic growth by continuously providing the
inputs for the consuming industry.

10
 SUBSIDIARIES OF SAIL

Integrated Steel Plants

Steel Plant Location Products
Rails (13/26m), Long Rails, (65-260m), Blooms,
Billets, Slabs, Channels, Joists, Angles, TMT Rebars,
Bhilai Steel Plant Chattisgarh Wire Rods, Crane Rails, Plates, Pig iron & Coal
Chemicals

Blooms, Billets, Joists, Narrow Slabs, Channels,

Durgapur Steel Angles, TMT Rebars, Wheels & Axles, Pig iron &
West Bengal
Plant Coal Chemicals

Plate Mill Plates, HR Plates, HR Coils, Slabs, CR

Sheet/ Coil, Galvanised Sheets (plain & Corrugated),
Rourkela Steel
Odisha ERW Pipes, Spiral Weld pipes, CRNO, Pig iron &
Plant
Coal Chemicals

Hr Coils, Slabs, HR Sheets. Plates, CR Coils. Sheets,

Bokaro Steel GP Sheets. coils, GC Sheets, Galvanealed Steel,
Jharkhand
Plant HRPO, Pig iron & Coal Chemicals

Wire rods, Bars & Rebars, Joists, Channels, Angles,

Blooms, Billets, Universal & Special section (Z-bar,
MS Arch), Pig iron & Coal Chemicals
IISCO Steel Plant West Bengal

Special Steel Plants

Steel Plant Location Products
Cold Rolled Stainless Steel, Hot Rolled Carbon &
Salem Steel Plant Tamil Nadu
Stainless Steel Products, Micro-Alloyed Carbon

11
 Steel

Alloy Steel Squares & Rounds, Wear Resistant

Plates, Forgings, Carne Wheels, Forged Rolls/
Plaets, Special Quality Slabs & Stainless Setel Slabs
Alloy Steel Plant West Bengal
(low Ni, 300 & 400 series)

High Quality Rolled & Forged Alloy & Special Steel

Visveswaraya Products
Karnataka
Iron & Steel Plant

Ferro Alloy Plant

Steel Plant Location Products
High/ Medium/ Low carbon Ferro-Manganese,
Chandrapur Ferro Maharashtr Silico-Manganese
Alloy Plant a

12
 CAPTIVE MINES UNDER THE UMBERALLA OF SAIL

The company has the distinction of being India’s second largest producer of iron
ore and of having the country’s second largest mines network.
Its captive iron ore & flux mines at Jharkhand, Odisha & Madhya Pradesh are
under the control of the Raw Materials Division Kolkata, coal mines at Jharkhand
& West Bengal are under the control of Collieries Division Kolkata, iron ore & flux
mines at Chhattisgarh are under the control of Bhilai Steel Plant (BSP), Bhilai and
flux mines at Karnataka are under the control of Visvesvaraya Iron and Steel Plant
(VISL), Bhadravati.

Mineral Name of Mine State

Kiriburu Iron Ore Mines Jharkhand
Meghahatuburu Iron Ore Mines Jharkhand
Manoharpur (Chiria) Iron Ore Mines Jharkhand
Gua Iron Ore Mines Jharkhand
Iron Ore Bolani Iron Ore Mines Odisha
Barsua Iron Ore Mines Odisha
Kalta Iron Ore Mines Odisha
Dalli-Rajhara Group of Iron Ore Mines Chhattisgarh
Rowghat Iron Ore Mine (New Project) Chhattisgarh
Flux Nandini Limestone Mines Chhattisgarh

13
 Hirri Dolomite Mines Chhattisgarh
Kuteshawar Limestone Mines Madhya Pradesh
Bhawanathpur Limestone Mines Jharkhand
Tulsidamar Dolomite Mines Jharkhand
Bhadigunda Limestone Mine Karnataka
Kenchapuda Dunite Mine Karnataka
Chasnalla Colliery Jharkhand
Jitpur Colliery Jharkhand
Parbatpur Colliery (New Project) Jharkhand
Coal
Tasra Coking Coal Mine (New Project) Jharkhand
Sitanala (New Project) Jharkhand
Ramnagore Colliery West Bengal

OTHER DEPARTMENTS OF SAIL

 
 

14
 BOKARO STEEL LIMITED

Bokaro Steel Ltd. Was originally incorporated as a limited company on 29th

January 1964, with the formation of the steel authority of India ltd (SAIL) on 24
January 1973, it became a wholly owned subsidiary of SAIL and on 1 st May 1978 it
was eventually merged with SAIL through the Public Sector Iron & Steel
companies Act 1978. After becoming a unit of SAIL, the plant is known as Bokaro
Steel plant (BSL).

15
The plant is hailed as the country’s first Swadeshi steel plant, built with maximum
indigenous content in terms of equipment, material and knowhow. Its first phase
of 1.7 MT ingots steel commenced on 2nd October 1972 with the commissioning of
the first Blast Furnance and completed on 26th February 1978, with the
commissioning of the third Blast Furnance, all units of 4 MT stage have already
been commissioned. The plant is designed to produce flat products like Hot rolled
coils, Slabs, HR Sheets. Plates, CR Coils. Sheets, GP Sheets. Coils, GC Sheets,
Galvanealed Steel, HRPO, Pig iron & Coal Chemicals.
Bokaro has provided a strong raw material base for variety of modern engineering
industries including automobile, pipe and tube, LPG cylinder.

To keep up pace with the latest trends in steel making, the first phase of
modernization was sanctioned on 23rd July 1993. The new features in SMS-ll
include continuous casting Machines and steel refining unit. The steel refining unit
was inaugurated on 19th September 1997 and the continuous casting machine on
25th April 1998.

The modernization of the Hot strip mill saw addition of new features like high
Pressure de-scalars, work roll bending, hydraulic automatic gauge control, quick
work roll change, laminar cooling etc. new walking beam reheating Furnance are
replacing the less efficient pusher type Furnances. A new hydraulic coiler has
been added and two of the existing ones revamped. With the completion of hot
strip mill modernization, Bokaro is producing top quality hot rolled products that
are well accepted in the global market. The capacity of the plant has gone up to
4.5 MT of liquid steel.

It is located in idyllic surroundings on the southern bank of river Damodar with

Garga, one of its tributaries, meandering along the southern and eastern
outskirts. This is also known as Bokaro Steel City. On the north, the city is flanked

16
by the high range of the parasnath hills and on the south just beyond the river
Garga, it is enveloped by the satanpur hillocks. The vast rolling topography of the
city is interspersed by graded valleys and winding rivulets typical of the
chhotanagpur plateau. The city has blossomed into a regional urban centre of
over 8 lakh people from different parts of the country, making the city mini
Bharat. Bokaro is located on the Gomoh-Chandrapura-Muri railway line. Direct
train services to all the four metros are available from Bokaro. It is located
centrally between the triangle of the other three major cities of Jharkhand –
Ranchi, Jamshedpur and Dhanbad – all of which are well connected by road and
railways. Its Western boundaries run parallel to the south are it planned by the
Dhanbad Ramgarh National Highway no. 2.

SECONDARY AND BY-PRODUCTS IN BSL

WHAT ARE SECONDARY PRODUCTS:-

In the case of manufacturing process, in every stage of production there will be

certain percentage of products, which do not confirm to the standard quality,

17
size, and specification. Such products are termed as “Secondary Products”.

Moreover, while shaping the prime products, both ends and sides are cut. These

cutting are also categorized as “Secondary Products” in Bokaro Steel Plant, as they

are also re-rollables.

WHAT ARE BY-PRODUCTS:-

These are the products which are not originally produced by manufacturer but

are outcomes while producing the prime products.

NECESSITY OF SELLING THE SECONDARY AND BY-PRODUCTS-

The net sales realization from all the secondary products and By-products of BSL

is around 996 crores which is quite more than money the big industry’s annual

turnover.

Re-production of main products from the secondary products requires re-melting

it again for the required composition of the materials as per the desired

18
specification. The Traders/Processors/Re-rollers, use these as raw materials for

different finished products making huge profits, the plant is also not losing

anything.

Profit is the main aim of every business, and when the realization of these

products for finished products proves to be costlier, the plant management

decided to sell it to the local market.

By selling secondary products to the local market new industries are developed

for Re-rolling the secondary materials to make finished products. It has also

increased the small scale industries and employment opportunities.

19
MARKETING DEPARTMENT HEIRARCHY

GM(Marketing)

DGM(Marketing)

Manager
Manager

Asstt. Manager

20
 ANALYSING 4 P’s OF MARKETING

 Product - Bokaro Steel Plant produces various iron and steel products
like HR coils and HR sheets and also CR coils and sheets. These are the
primary products of the plant and in the process of manufacturing these
products, many secondary and by-products are also obtained. This project
primarily deals with the secondary and by-products only.
The following table shows the different secondary and by-products of BSL: -

PRODUCTS USES

Crude Benzol Further processing can lead to Benzene,

Xylene, Toluene, Light Solvent Naphtha,
Anthracene Oil which has wider
applications as Thinner, paints,
adhesive, Chemical and paint.

Crude Coal Tar Surfacing of road

Hot Pressed Naphthalene Colouring of clothes, Naphthalene Balls

BF Granulated Slag Cement industry

Hard-medium Pitch Carbon rod, tar battery plate, cells and

battery compound.

Ammonium Sulphate Fertilizers

Liquid Nitrogen, Liquid Argon Coolant for superconductors.

21
 Sale of various secondary and by-products are as follows: -

SALES OF SECONDARY STEEL (Qnty in MT)

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

2018-19 2017-18

SALES BFG SLAG (Qnty in MT)

350000

300000

250000

200000

150000

100000

50000

0
1st 2nd 3rd 4th

2018-19 2017-18

22
  Price – Prices of these products (Secondary and By-products) are decided
by a committee headed by senior GM’s of plant.

The following are the steps followed while fixing the price: -

There is a pricing committee which is formed before the sale/auction of the

secondary and by-products. This committee is headed by the senior GMs of the
plant and also comprises DGM’s/AGM’s from Finance and Accounts department,
department whose lots are to be auctioned, members of marketing department
and senior representatives of CMO specially in case of Iron and Steel products.
This committee usually fixes the price 1 day before the conduct of auction. The
prices are kept confidential and kept in seal and are the reserve price.

After the conduct of auction, the reserve price is opened by another committee,
comprising of DGM (Marketing) and DGM (Finance) and is called reserve price
opening committee.

Metaljunction, the online platform were the auction of secondary and by-
products of SAIL, sends the bid report through FTP(File Transfer protocol) via SAP
as well as signed hand copy of H1 bid ( highest bidder) report along with detailed
bids to head of Marketing, dually signed by their in charge and also fits the
Reserve price in the system.

 Promotion: - The promotion of sale/auction of secondary and by-

products of BSL is done by metaljunction abbreviated as mjunction. It is a
joint venture of SAIL and TATA. Metal junction provides an online platform
in which the secondary and by-products of BSL is auctioned and the
interested parties (customers) place their bid for the different lots of
products that will be available for auction. The list of lots that will be up for
auction is uploaded on the site of Metal junction 04-05 days prior to the
actual date of auction.
Apart from this, the customer relationship manager of metal junction
intimates prospect customers/bidders about the lots of products that will
be auctioned.

23
 Place: - The products that are auctioned are kept at the site from where
that originates/forms. After the lifting order is given to the highest bidder,
then the customer is given a period of 7 to 15 days to lift the products from
the site depending upon the lot size and item.

MODE OF SALE

24
Marketing department applies the following method for selling these secondary
and by-products: -

1. E-Auction – More than 90% of the sale of secondary products takes

place through this medium.

2.Inter plant transfer (IPT) – In this type, the products (primary or

secondary) is provided by BSL to other units under SAIL. In this, BSL takes other
materials from those SAIL units in exchange and thus the balance of payments
is done.

3. Long term agreement – This is commonly called as MOU

(Memorandum of Understanding). PSUs and government agencies have signed
MOU with BSL for purchasing their products. Presently BF Granulated slag is
sold through LTA to M/s Dalmia Cement East Ltd. apart from e-auction. Total
quantity of LTA is 01 Million Ton per annum.

E AUCTION PROCESS FLOW CHART

25
 Advertisement of dates/type of materials on
mjunction website.

Inspection of lots by customers.

Auction conducted on mjunction.com

Reserve Price Opening Committee

meeting.

Recommendations Approval for Sale.

Issue of offer Letter.

E-AUCTION SALE

Auction: -

26
Auction refers to a forum where the requirement for one/more lots of an item is
stated and the participants (bidders) are required to bid down the price to be
selected to supply the requirement.

Online Auctions: -
Online auctions refer to those auctions conducted through the Internet with the
bidders simultaneously bidding to be selected for supplying the items on auction.
In other words, the venue for the auction is on an Internet website/platform.
The “Service Provider’s” website assigned by “Service Provider” would constitute
venue for the purpose of the online auction.

Award at the auction: -

In a single winner format, only 1 bidder (bidder who quotes the highest price) is
awarded all the units of the item being auctioned. The bidder quoting the highest
price, called as H1 bidder is allotted the item.

Client: -
Client is the individual/ business entity who has contracted “Service provider” to
conduct auction. Hence, we could infer that BSL is the client in this case.

Bidder: -
Bidder is the individual/business entity participating in the auction, intending to
buy the items/lots from the client. To become a bidder in the auction, a business
27
entity has to secure client approval for participation and also provide written
assent to the General rules and regulations.

In order to take part in an auction of SAIL, a bidder is supposed to deposit EMD

(Earnest Money Deposit). A bidder who wants to bid for 1 time has to give
Rs.50,000 and the one who wants to be a permanent bidder has to give Rs.
1,00,000 as EMD before commencement of auction.

28
Timing of the online bid: -
All the timing of the Online bid shall be based on the time indicated by the Sever
hosting the Auction engine. The bid for the SAIL lots takes place every Wednesday
starting from 11 am till 5 pm.

Duration of the auction: -

It refers to the length of time the price discovery process is allowed to continue
by accepting bids from bidders. However, the bidding rules may state conditions
when the pre-specified duration may be curtailed/extended.

 Curtailment of auction duration in the event of no bids for a specified

period of time. This is called Inactivity time.

 Automatic extension in the event of bids being entered towards the end of
the scheduled duration to facilitate the other bidders to view and react to
the bid. In case of auctions conducted by metaljunction, the auto extension
is of 3 minutes.

29
 Procedure of E-Auction
 Advertisement/posting of dates and types of materials to be auctioned in
SAIL website and various newspapers.
 Posting of details of lots to be auctioned 4-5 days prior to the date of
auction, on the website of SAIL and metaljunction.com
 Inspection of lots to be auctioned by customers.
 Auction is held on www.Metaljunction.com.
 Report of auction conducted is given by metaljunction after the auction. In
the report, the highest bid is conveyed to the SAIL authorities.
 Meeting of reserve price opening committee and their recommendation. If
the highest bid is somewhere near the price decided by the RPC (Reserve
Price Committee) then the further process is initiated otherwise that lot will
be re-auctioned.
 Issue of offer to the customers, based on approval of chief Executives.

30
 GENERAL RULES AND REGULATIONS DURING E-AUCTION
The online auction is conducted for Bokaro steel plant, referred as client on the
auction platform of metaljunction.com, referred as Service provider.

The general rules and regulations provided governs the conduct of online forward
auctions arranged by “Service provider” i.e. on its auction platform. These rules
outlay the roles and responsibilities of the parties in the auction.

ROLE OF “SERVICE PROVIDER”

 Service provider is the agency (operator) primarily providing the service of

the Forward auction to the “client”. Finalization of the auction items in
consultation of client i.e. BSL.
 Collection of EMD (earnest money deposit), Letter of Interest from the
willing bidders and forwarding the same to the BSL.
 Defining of bidding rules for each auction in consultation with the client.
 Input of the auction items and defining the bidding rules.
 Providing access to the approved bidders to participate in the auction.
 Summarizing the auction proceedings and communicate the outcome to
the client.

31
 INTRODUCTION OF SERVICE PROVIDER

Here is a brief introduction of the Service provider i.e. METAL JUNCTION, a joint
venture between SAIL and TATA STEEL (both having 50 % stake in the company).

About Metaljunction:-

mjunction services limited, operating in the glorious age of Information

Technology and the Internet, is a 50:50 joint venture promoted by SAIL and Tata
Steel. Founded in February 2001, it is today not only India’s largest ecommerce
company (having eTransaction worth over Rs 8,06,402 crores till FY19), but also
runs the world’s largest eMarketplace for steel. mjunction has radically
transformed the steel and coal supply chain in India by ushering in efficiency,
transparency, and convenience to the way steel and coal are bought and sold.
Business volume of the company in terms of transaction value has soared from Rs
94.35 crores in FY02 to Rs 1,48,294 crore in FY19.

mjunction’s growth has not only been in terms of transactional value, revenue
and profits. In a span of 17 years, it has established a national footprint with
presence in more than 25 locations all over the country. Starting out with a team
of less than six people at inception, today more than 800 people from different
professional and academic backgrounds are working on growing the company at a
scorching pace.

Today, mjunction offers a wide range of eSelling, eSourcing, eFinance and

Knowledge services across diverse industry verticals that empower businesses
with greater process efficiencies. mjunction has service offerings spanning the
entire eCommerce spectrum, but in SAIL it provides only a common platform for
buyers to come together and bid for the secondary and by- products of its
different subsidiaries.
32
 ROLE OF BIDDER
The role of bidder are as follows: -
 The bidder would participate in the auction with the aim of bidding to
secure the auctioned item in the auction.
 The bidder would be provided access to the Auction through a “User Id”
protected by a “Password”. Bidders are requested to change the password
allocated to them by the “Service Provider” to keep their confidentiality.
 Payment of Earnest Money Deposit should be done 3 days prior to the date
of the forward auction. After this only, the bidder will be provided with
User Id and Password, through which one can bid in the auction.

Bidders hereby confirm that they shall commit to lift the items (being bid for) at
the price entered by them in the auction and at the same terms and conditions
specified by the client. All prices entered shall be legally binding on the bidders.
Failure to honor the bids placed during online bidding shall render the bidder
liable for penal action i.e. forfeiture of the EMD and debarring them for future
participation for 6 months.

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 SWOT ANALYSIS (BSL)

STRENGTH-:

1. Bokaro Steel Plant has a huge pool of skilled and experienced personals.
2. Principle of hierarchy (Who will report whom) is given due respect in BSL
enabling management to ensure proper planning and its implementation.
3. Flawless corporate image of SAIL enhances the confidence of managers
and customers alike.
4. Record of harmonious customer relation boosts the revenue graph
towards north.
5. Huge infrastructure provides a strong base for better production and
marketing, since it has countrywide network of stockyards, dockyard and
sales branch offices.
6. Bokaro Steel Plant has TQP i.e. Total Quality People which mean a
dedicated work force towards serving the company’s customers.
7. Ability to cater to the steel requirement of any customer
8. Nationwide distribution network with a presence in every district in India
9. Large skilled manpower base- Labour productivity of 358 tonnes of crude
steel per man per year during 2017-18.
10. Captive power plants take care of about 70% of total power requirements
11. Biggest in-house research and development centre in Asia.
12. Low overall borrowing

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WEAKNESS:-

1. Lack of Buyer’s base in some of the items which are slow moving as Waste
& Scrapped Rolls, Idle Assets etc.
2. Due to its large organizational structure involving numerous policies and
officials, rules and regulations prompt decision making is a real problem.

OPPORTUNITY:-

1. There is growing demand for secondary and by-products in both domestic

and international market.
2. State government is planning to establish small industries in and around
Bokaro which will increase the list of probable customers.
3. There is a great opportunity in the field of research to improve the quality
of the coal-based products which would strengthen its well-established base
among customers.
4. Investment in the infrastructure across the country to push the demand of
steel
5. Meeting requirements of wide range of customers at their doorstep in time
with marketing network spread across the country
6. Forging strategic alliances with renowned international technology
providers
7. Securing of overseas raw material
8. Adoption of alternate technologies in Iron & Steel making

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THREAT:

The biggest threat for any company is competition, SAIL (BSL) is also no
exceptional. So due to globalization the company is facing huge competition from
global companies in all product segments as well as facing competition from
domestic players.

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 FINDINGS

 All marketing procedure of prime products are decided by SAIL and carried
out by the Central Marketing Organization (CMO).
 Marketing department of BSL is solely concerned with sale of secondary
and by-products of BSL.
 Formation of mjunction has made it possible and transparent the sale of
secondary and by-products of SAIL in a more accountable and planed
manner.
 The local customers with business of by-products are sometimes made to
wait for days to get their papers cleared by the department.
 Payment is accepted from the customers even when the material is not
available in stock, in anticipation that the material will be made available
shortly in the stockyard.
 Unavailability of material in the stockyard leads to holding up of the huge
investment of the customers i.e. material cannot be purchased from the
alternative source.
 Refund of excess payment takes long time sometimes more than a year.

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 SUGGESTIONS and RECOMMENDATIOINS

 Better coordination between employees of BSL and mjunction should be

ensure for the proper sale of secondary and by-products.
 Reserve price should be fixed according to current market price.
 Removing the red tapism from the decision making processes in order to
make quick decisions.
 Timely uploading the lot information on the mjunction site so that prospect
bidders get ample time for reviewing of the lots.
 Having two bidding days in a week should be considered.
 Time duration between the allocation of a bid and the lifting of the material
should be curtailed in order to prevents the materials from becoming
obsolete.
 There should be flexibilities with respect to lot size.
 Customer feedback should be collected and should be taken into
consideration for the further processes.

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 ABBREVIATIONS

1. SAIL - Steel Authority of India Limited.

2. TISCO - TATA Iron and Steel Company

3. MECON - Metrological & Engineering consultants’ ltd.

4. HSCL - Hindustan steel works consultants Ltd.

5. NMDC - National Mining Development Corporation ltd.

6. RDCIS - Research and Development Centre for Iron and Steel.

7. CPTI - Central Power Training Institute.

8. MRD - Marketing Recovery Department.

9. mjunction- Metaljunction.

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 BIBLIOGRAPHY
REFRENCE BOOK

 Philip Kotler, Marketing Management, 15th edition, prentice hall of India.

WEBSITES

 www.sail.co.in
 www.steel.gov.in
 www.metaljunction.com
 www.bokaro.nic.in

JOURNALS

 SAIL NEWS Journal

 Training Manual
 Government Publications

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THANK YOU

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