Sail

STEEL AUTHORITY OF INDIA LIMTED BOKARO STEEL PLANT ISPAT BHAWAN BOKARO STEEL CITY Date:CERTIFICATE This is to certify that the project report on topic Market Research to study customer satisfaction for buying Secondary and By-Products of SAIL at Bokaro Steel Plant has been prepared by AJIT KUMAR, student of MMM of Sinhgad Institute of Management, Pune during academic year 2010-2012, under the supervision and guidance of undersign. He has successfully done his summer internship project at Bokaro Steel Plant from 17th May to 11th July 2011 (Eight Weeks). I wish him all the best in his future endeavor.

Mr. GOBIND BARMAN Jr. Manager (Marketing) Bokaro Steel Plant

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PREFACEDoing training was really an opportunity for me and where I could understand how theoretical knowledge is used in practical and real world. Fortunately, the company I got is a true follower of management concept and is the largest company in its segment of the industry in India. The working environment provided to me was extraordinary and helped me a lot in completion of this project. I did my summer training in the Marketing Department of BSL, where I found that all the professionals are very much committed to their work. This helped me a lot in getting a good deal of exposure. As I had to consult the DGM, AGM, Managers and Supervisors, I felt a bit of problem, during the starting of project. But the conduct and cooperation of my superiors at the work induced confidence in me to deal with problems whenever they came. After few days, I was confident enough to go in the customer survey and do the given work with proficiency and acumen. Since I had to complete my project within a limited time frame, this made me experience the actual stress of the workplace. This I think will work as real booster when I will be working after the completion of the course. Working with the colleagues was a great experience as I came to know that how a person can work as a team in a multifarious industry to achieve the organizational goal. Indeed, I always tried to do justice with my duties. But this could be a success, as I got continuous support from my guide as well as other officers & colleagues. So, at last I would like to thank my institution for providing me with the opportunity to do summer training, I am also grateful to the BSL (SAIL) for providing me all the assistance in completing my project.

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DECLARATION BY CANDIDATEI, Ajit Kumar a student of MMM of Sinhgad Institute of Management, Pune hereby declare that the project entitle Market Research to study customer satisfaction for buying Secondary and By-Product of SAIL at Bokaro steel plant is the original work done by me under the supervision of Industrial guide Mr. C.Srikanta and Mr. Gobind Barman and internal guide Mrs. Vedha Balaji during the academic year 2010-2012.

Date: -

Signature:-

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ACKNOWLEDGEMENTI take this opportunity in expressing my gratitude and sincerity to all who have directly or indirectly helped me in completing this project. Without their help this project would never have been completed successfully. I am highly grateful to following person: Mr. P.K Mishra (Training coordinator) Mr. M.M Yadav (DGM, T&D) Mr. B.D Das (DGM, CO&BPP) Mr. K.K Sanyal (AGM, CO&BPP) Mr. N.K Khashnobis (AGM, SSD) Mr. A.J Kachhap (DGM, Stores) Mr. R.P.Sinha (AGM, Sales &Coordination) Mr. C.Srikanta (DGM, Marketing department) Mr. Gobind Barman (Jr.Mgr, Marketing department) Mr. Ritu Raj (Jr.Mgr, Marketing department) For encouraging and providing me the necessary information and materials for the project.

AJIT KUMAR MMM SIOM, Pune

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EXECUTIVE SUMMARYAs the title suggests, this is a project report about Market Research to study customer satisfaction for buying Secondary and By-Products of SAIL at Bokaro Steel Plant. Attention has been given on the policies procedures, needs and recommendations on the marketing at Bokaro Steel Plant with respect to secondary and by- product. Marketing of secondary products is a necessity at Bokaro Steel Plant. It finances part of purchasing power of raw material and spares, creates demand for steel and its by product and also used to fund the modernization at BSL. Minimization of cost and maximization of profitability with customer satisfaction is its main objective. The Marketing of secondary product and By-product of Bokaro steel plant is a pioneer attempt, based on authentic information, at chronicling the background, origin, growth, development, performance and prospects of Indias largest steel complex. The study was conducted in Marketing Department, SSD, Store, BPP and Sales Coordination department. I had to find how auctions, fixed price and tenders are used for marketing purpose in BSL. A customer survey was also undertaken to know various aspect related to secondary and Byproduct marketing in local market. Mode of sale, elaborate the mammoth activity of marketing activity of marketing department for selling the secondary and By-products and also describe the rule and regulation followed by the BSL and customer during online auction. In e-auction 95% of secondary product were sold and rest through fixed price and tenders. During my training I came to know the mode of sale of secondary product of BSL. Primary products are sold by CMO, Kolkata. We passed through various stages of problem to accomplish the task of project work which were very challenging opportunities for me. Bokaro Steel Plant recognizes that leadership is essential for survival in competitive environment. Customer satisfaction like quality is a journey and not a destination. The basic objective of the study was to know the contribution of secondary products and by products to total sales, which is pre determining for the success of the company. By selling the secondary products in the local market company is earning profit and also creating an employment in small scale industries and developing the economy.SIOM, Page 5 PUNE

INTRODUCTION OF THE SUBJECTReason I choose this subject Market Research to study customer satisfaction for buying Secondary and By-Products of SAIL at Bokaro Steel Plant is because BSL is the largest Steel plant in India and SAIL is among in the GLOBAL FORTUNE 500 companies. 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-product of BSL. Primary products are sold by Central Marketing Organization (CMO), Kolkata. It was a privilege for me to take this opportunity a challenging work to study and observe Marketing of Secondary and Byproducts 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 scales sector need the Secondary Products as input raw material for their production. These companies use these secondary 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.

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OBJECTIVE OF THE STUDYThe basic objective behind the study carried out by me is to study the major contribution of secondary product to total sale, which is pre-determining for the success of the company. By selling the Secondary product in local market company is earning profits. It is also creating employment in small scale industries and developing the economy. In Bokaro Steel Plant there is various section of the marketing department. I have chosen Market Research to Study customer satisfaction for buying Secondary and By-Products of SAIL at Bokaro Steel Plant. Main objective are:1. To understand customer satisfaction towards BSL by products and related activities to them.2.

To

identify

prominent

complaints

of

buyers

of

BSL

by

products. 3. To study various types of secondary and by-products of BSL.

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SCOPE OF STUDYScopes of study are following: The present study can be extended to assess the present marketing strategy and condition of

different steel plant. The study can be used to design a proper product, price, place & promotional strategy for the By-Product of different steel plants. From the preset study we can know the market share of different By-Product and accordingly formulate strategy to enhance it. This study can be applied to find out an effective distribution channel to enhance the sale of ByProduct & Secondary product of Bokaro Steel Plant.

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RESEARCH METHODOLOGYMethodology refers to the process of doing a work in a well defined and systematic manner. The present report uses certain procedures to find out correct result which can be used to make effective decisions. RESEARCH DESIGN Research design can be defined as the arrangement of condition for the collection of data in manner that provides relevance in research and economy in procedures .In this study descriptive research design was used .It is generally concerned with narration of facts and character and concerning group of situation .It also describes the existing state of affairs. Researcher can only report as to what has happened or what is happening and has no control over variables. The research methodology has following parts: Data Collection: Primary data has been collected by interviewing DGM, AGM, Senior Managers and Managers employed in the plant at various units and meeting with the customers of the company. A questionnaire has also been distributed among customer to gain insight of reality. Secondary data has been collected by the previous and current records magazines, website marketing department records and company annual report. Data Tabulation: Collected data has been tabulated in a manner easy to grasp and is in quantified whenever possible. Data Analysis: Different statistical and non statistical techniques like histograms and pie charts are employed to analyze the collected data. Findings and Suggestions: Analysis of the data leads to the results and based on that result I have provide important suggestions to company. Limitations: As with all research works, this study is also having inherent limitations. The important ones are:SIOM, Page 9 PUNE

1. Time was a constraint for the study. 2. Unfriendly attitude of certain respondents was also major constraint. 3. The research and its findings hold good only for the relevant industry under consideration. 4. Respondents hiding attitude also created problems with data collection.5. The area of study is limited to Bokaro Steel City.

INTRODUCTION TO SAILSteel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defense industries and for sale in export markets. Ranked amongst the top five 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, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL, at present, is having capacity of 14.6 MT of crude steel through its five integrated plants and three special steel plants. SAIL plants are 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. The company has the distinction of being Indias largest producer of iron ore and of having the countrys second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making. SAIL's wide ranges of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organization (CMO) and the International Trade Division. CMO encompasses a wide network of 42 branch offices and 54 stockyards located in major cities and towns throughout India. With technical and managerial expertise and know-how in steel making gained over four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients worldwide. SAIL has a well-equipped Research and Development Centre 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 Centre for Engineering and Technology (CET), ManagementSIOM, Page 10 PUNE

Training Institute (MTI) and Safety Organization at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

MAJOR UNITS OF SAILIntegrated Steel Plants: Subsidiary: Other Units:

Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu Visvesvaraya Iron and Steel Plant (VISL) in Karnataka Maharashtra Elektrosmelt Limited (MEL) in Maharashtra SAIL-Raw Material Division (RMD) at Kolkata, West Bengal. SAIL- Central Coal Supply Organization (CCSO)- Dhanbad, Jharkhand SAIL-Central Marketing Organization (CMO) at Kolkata, West Bengal. CMO's International Trade Division (ITD) New Delhi SAIL-Management Training Institute (MTI), Ranchi, Jharkhand SAIL-Centre for Engineering & Technology(CET) at Ranchi, Jharkhand SAIL-Consultancy Division (SAILCON) at New Delhi SAIL-Research & Development Centre for IRON & STEEL(RDCIS) at Ranchi Jharkhand SAIL-Management Training Institute (MTI) at Ranchi, Jharkhand SAIL-Safety Organization (SSO) at Ranchi, Jharkhand SAIL-Environmental Management Division(EMD) at Kolkata, West BengalPUNE

Special Steel Plants:

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About Metal Junction: Metal junction was established in 2003 as a joint venture between SAIL and Tata Steel on 50:50 basis, this company promotes e-commerce activities in steel and related areas. Newly added services include E-Assets sales, Coal Sales & Logistics, and Publications etc.

VISION AND CREDO OF SAILVision To be a respected world Class Corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction Credo We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business. We create and nurture a culture that supports flexibility, learning and is proactive to change We chart a challenging career for employees with opportunities for advancement and rewards We value the opportunity and responsibility to make a meaningful difference in peoples lives CORE VALUES OF SAIL Customer Satisfaction Concern for People Consistent Profitability Commitment of Excellence THE SEVEN Cs OF SAIL Consistent Quality Committed Delivery Customized Product Mix Contemporary Products Competitive Price Complaint Settlement Culture of Customer ServiceSIOM, Page 12 PUNE

Growth of Steel Industry in India: Formation of TISCO Formation of IISCO Steel Plant (ISP) in West Bengal Formation of Hindustan Steel Ltd. Formation of Rourkela Steel Plant (RSP) in Orissa Formation of Bhilai Steel Plant (BSP) in Chhattisgarh Formation of Durgapur Steel Plant (DSP) in West Bengal Formation of Bokaro Steel Plant (BSL) in Jharkhand Formation of SAIL Formation of Salem Steel Plant SAIL EXPANSION PROCESS: The company is working to increase its crude steel capacity from 14.6MT to 26.2 MT by 2020 with a capital outlay of Rs. 54,000 Crore. Orders for Rs.36,000 crore approximately have already been placed for various Modernization / Expansion Projects. Capex Plan for 2009-10 is Rs.10000 crore approximately SAIL-POSCO JV Steel Plant - A new steel plant for Bokaro as part of a joint venture with POSCO and SAIL by using FINEX technologies for high quality steel. The Capacity of Steel plant will be 1.5 mt, establish in BSP periphery of 500 acres. 1907 1918 Jan, 1954 Dec 1958 Feb 1959 Dec 1959 Jan 1964 Jan 1973 March 1982

Particulars

Million Tonne 2008-09 (Actual) 2020 (Plan) 26.2 24.5 23

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Hot metal Crude Steel Saleable Steel

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CENTRAL MARKETING ORGANISATIONThe ISO 9001:2000 certified Central Marketing Organization (CMO) is Indias largest industrial marketing set up that markets carbon steel produced by the five integrated steel plants of SAIL. Head quartered in Kolkata, it transacts business through its network of 42 branch sales offices spread across the four regions, and 25 Warehouses equipped with mechanized handling systems, 11 Customer Contact Offices (CCO) and 16 Consignment Agents. CMOs domestic marketing effort is supplemented by its ever widening network of authorized and rural dealers who meets the demands of the smallest customers in the remotest corners of the country. A strong IT support system enables real time network connectivity within the entire CMO network. Extensive customer contact, product and segment specialization, close monitoring of order servicing and feedback analysis through the Customer satisfaction Index are established norms at CMO. The customer friendly approach of CMO is backed by practical after sales service. Through the process of Key Account Management, CMO provides single window service to key customers across the country for every business transaction from enquiry to order booking, order tracking to delivery, and even consultancy after-sales service. All SAIL Product are marketed in India through CMO to ensure quality and prompt dispatch of product, CMO keeps in touch with producing units as well as the transport and shipping sectors. It operates through the network of stockyards, dockyards, Branch sales offices, consignment agents and Extension counter. CMO's International Trade Division (ITD)- International Trade Division (ITD) of SAIL at New Delhi an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated steel plants. Ever ready to meet the exacting demands of its global customers, ITD maintains a close liaison with customers and the production units to cater to the customized requirements of its customers both in terms of quality and sizes. ITD has successfully established SAILs brand name globally. Among the notable destinations for SAIL products are Japan, China, Korea, Taiwan, Vietnam, Philippines, Singapore, Malaysia, Thailand, Indonesia, Australia, Mexico, Europe (UK, Germany, France, Belgium, Italy, Spain,SIOM, Page 14 PUNE

Netherlands, Portugal), Sudan, Oman, UAE ,Myanmar, Bangladesh, Sri Lanka and Nepal.

BOKARO STEEL PLANT Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited company on 29th January 1964, and was later merged with SAIL. The construction work started on 6 th April 1968. The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage have already been commissioned and the 90s' modernization has further upgraded this to 4.5 MT of liquid steel. At present it houses five blast furnaces with total capacity to produce 4.5 MT of liquid steel. The plant is undergoing a mass modernization drive after which its output capacity is expected to cross 10 MT. The first shop of Bokaro Steel Plant got the ISO 9001 certification way back in 1994, and its SAIL JYOTI branded products enjoy a loyal market. Plant's yearly profit stood at 1,120 crores Indian Rupee (INR) for the financial year 2003-04 and has increased every year since then reaching to 8,426 crores INR in the financial year 2007-08. The new features added in modernization of SMS-II include two twin-strand slab casters along with a 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-scalers, work roll bending, hydraulic automatic gauge control, quick work roll change, laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient pusher type furnaces. 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. Indias premier flat products plant produces 4.5 million tonnes of saleable steel annually. Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanized Plain and Corrugated (GP/GC) Sheets which are highly acclaimed for their quality. Bokaro hasSIOM, Page 15 PUNE

provided a strong raw material base for a variety of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing industries.

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BOKARO STEEL PLANT MAJOR UNIT Brief Description:SIOM, Page 17 PUNE

COKE OVEN AND BY PRODUCT PLANT:

Only shop in the country to have silos for source wise storage. The carbonization temperature is 10000c. Coke oven has 8 batteries with 69 ovens each. By-products plant produces valuable by-products like, Anthroacene oil, Benzene, Toluene, Xylene, Light Solvent Naptha and Ammonium sulphate, extra hard pitch.

Coke Sources:

Prime coking coal: Dugda, Moonidih, Belatand Medium coking coal: Mahuda, Rajrappa, Kedla, Kathara Middling for Power Plant: Dugda, Swang, Mahuda, kedla, ECL Responsible for receipt, blending, storage, screening and supply of raw material to blast furnace, sinter plant and lime dolomite shop. Shop also maintains buffer stock to take care of any interruption in supply from mines Around 9MT of different raw materials are handled by four Wagon tipplers, stackers and reclaimers. Only plant in India to have source-wise blending facilities at RMCH.A Iron Ore: Kiriburu, Meghataburu, Gua, Noamundi. Limestone: Bhawanathapur, Puranapani, Kahanabanjari, Kuteswar,Jaisalmer. Dolomite Limestone: Nanwara, Ametha. Manganese Ore: Barbil. Banspani Bauxite: Lohardaga. Five 2000 cubic meter blast furnace. Furnaces are equipped with beltless top charging, double cast houses, coal dust tar injection, cost house slag granulation, under-burden probes.

RAW MATERIAL AND MATERIAL HANDLING PLANTS:

RAW MATERIAL SOURCES:

BLAST FURNACE:

STEEL MELTING SHOPS: SMS-1: 5 LD converter of 120T capacity each. SMS-2: 2LD converters each of 300T capacity (Largest in India). SMS-1 produces Rimming Steel also.

CONTINUOUS CASTING SHOP:SIOM, Page 18 PUNE

Integrated to SMS-2. Produces mild steel of drawing, deep drawing, extra deep drawing, boiler and tin plate quality. Also produces low alloy steels like LPG, WTRC, SAILCOR and API Grade.

SLABBING MILL: COUNTRYS ONLY Universal mill, Hot and Cold Scraping Machine. 2800T Shearing Machine. Controlled heating in Soaking Pits.

HOT STRIP MILE (HSM):

Only continuous Hot Strip Mill in India, fully automatic. Walking beam Reheating Furnaces, High Pressure De-scaling System, Roughing Group: Roughing Train of vertical scale beaker, one 2-high roughing stand, for high universal roughing stand and edge. Finishing Group: Flying shear, Finishing Scale Beaker, Seven 4- High finishing stands .

HOT ROLLED COIL FINISHING:

Hot rolled coil from HMS received here for further distribution. Coiled sheared and finished to customer required size and dispatch to customer .

COLD ROLLING MILL:

Produces high quality sheet gauge materials, tin mill black plate and galvanized product. Capable of rolling out the widest sheet in India. Products used for deep drawing purpose, automobile bodies, furniture, drums, barrels, railway coaches, other blending and shaping jobs and coating.

SCRAP AND SALVAGE DEPARTMENT (SSD) AT BSL

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As the name indicates, the department works with ferrous (steel and Iron) scraps to salvage it & make it useful by adding value to it. Scrap can be defined as something which has been rejected for one or more purpose but otherwise usable for another purpose. Every department of the plat, from coke Oven to Cold rolling Mill (CRM) produce metal waste termed scrap. Role of SSD Supply Iron and Steel scrap to Steel Melting Shop (SMS) as a technological input in the steel making process. To collect all the ferrous scrap (waste for the place of origin) and bring it to department to transform it to the useful products. SALE OF SCRAP One very important function of SSD is to sale scraps to outside agencies. The following item are sold.S.NO. DESTINATION 1. 2. 3. Mixed cast Iron SMS Splashing Spilled Hot Metal (SMS) Blast furnace, PCM SMS Mixer SMS PIT side. Below Converter 4. 5. 6. 7. 8. 9. Iron Boulder Fine Iron Chips Steel Boulder Tundish Skull Re Ingot, Bitts Broken mould & Bottom Plate 10. 11. 12. 13. SIOM, Page 20 Slag End Cutting Thick Plate Cutting Side Trimming HR Plate Cutting (CRM) Slabbing mill Slabbing mill HRCF & CRM Cold Rolling Mill SMS, Sales Sales SMS, Sales Sales PUNE Blast furnace Ingot Mould Foundry SMS Slag yard, pit side Continuous Casting Shop SMS Ingot Route SMS Mould Yard SMS Sales SMS SMS SMS, Sales SMS SMS, Sales Sales Sales CATEGORIES SOURCE

14.

Maintenance Scrap

All Shops

SMS

COMPETITORS OF BOKARO STEEL PLANT TATA STEEL RINL ISPAT ESSAR STEEL JINDAL STEEL

CUSTOMER LIST OF SECONDARY PRODUCTS OF BSL1. M/S CHOWDHARY ENTERPRISES 2. UNITED INDIA CORPORATION. 3. BIRMA INDUSTRIAL AND BUSINESS ENTERPRISES. 4. SHREE NATH TRADERS

5. BHAVANI METALS6. TRIBHOLE UDYOG 7. ROBIN STEEL TRADERS

8. STEEL INDIA9. MODERN INDUSACONTRAST LTD

10. GD GOEL AND COMPANY 11. BASUKI STEEL PRIVATE LIMITED 12. PANDE BROTHERS13. DAYS METALS PVT.LTD.

14. GOMTI STEEL15. HANUMAN & RISE PVT. LTD

16. BHARAT SUPPLY COMPANY17. UNITED IRON CORPORATION

18. MANGAL PVT.LTD.19. PANDAY BROTHERS

20. AGARWAL STEEL CENTERSIOM, Page 21 PUNE

CUSTOMER LIST FOR BY-PRODUCTS1. SHREE BHOLEY UDYOG

2. SHIVA CHEMICALS 3. JHARKHAND TAR PRODUCTS4. SHREE RAM INDUSTRIES 5. M.K CHEMICAL & FERTILIZERS

6. SRI AMBIKA SALES CORPORATION 7. BAGMATI TRADERS 8. BHAWANI KENDRA9. SEEMA ENTERPRISES

10. OM FERTILIZERS 11. BEE KAY MINERALS 12. RAM ENTERPRISES 13. RPS VINIMAY PVT.LTD 14. JYOTI TRADING15. PRAGATI LUSES PVT.LTD 16. MAHAMAYA ENTERPRISES

17. SAMRITI CHEMICALS LTD18. KEDIA CARBON PVT. LTD 19. SHRI OM TRADERS & DISTRIBUTORS 20. ABHIJEET ENTERPRISES & DISTRIBUTORS

21. JALAN CARBON & CHEMICALS 22. NANGALIA HYDROCARBON LTD 23. OMEGA HYDROCARBON LTD 24. SHYAM TAR PRODUCTS 25. EASTERN TAR PVT LTD 26. LAXMI DYE CHEMICALS 27. CARBON RESOURCE PVT LTD28. JAI OM FERTILIZERS AND DISTRIBUTORS

29. RELIABLE INDUSTRIES 30. TARAL UDYOGSIOM, Page 22 PUNE

SECONDARY PRODUCT AND BY-PRODUCTSecondary Products:These are the defectives or rejected materials due to improper mixing of chemical components are fail to meet the optimum requirements. Scraps generated inside plant are also termed as Secondary Products. The secondary products used here in after will mean ferrous materials generated from various production units which can either suitably be used for re-melting to produce iron and products or offered for sale if rendered surplus in production process for example Defective Heavy Blooms, Defective Rils, Rail cutting Rod cutting ,Scrap etc.

Following Items fall under the category of Secondary Products: Rerollable /iron and steel scrap MS SLAB END CUTTING WITHOUT FISH TAIL MS THICLE PLATE CUTTING (25-40) MM MIXED W.FR. SPILLED HOT METAL (10MT AND BELOW) SMS ARISINGS. LIQUID NITROGEN FINE IRON CHIPS FROM IMP(FE-70% APP) FERROUS SULPHATE-LOOSE BE GRNAULATED SLAJ(BOTH FIXED PRICE AND TENDER) LIQUID ARGON PIG TRON TURNING AND BORING

DETAILS OF SCRAPThere are various types of scrap, which is generated from the Particular prime products. Some brief summaries are given below.

PCM SCRAP This is a scrap generated in the pig-casting machine and consists of Splashing, PCM runners and fires are in affix range up to 1.0 tonnes per piece. BF RUNNER SCRAP Generated in the blast furnace cast houses in the form of runner Jams etc the maximum fix per piece is up to 2 tonnes. This scrap contain amount of slag. UNPROCESSED STEEL Generated in the steel melting shops in alg and metal ladles.SIOM, Page 23 PUNE

SBIM SCRAP This consists of semi broken ingot mould and bottom part as scrap and is in fix range up to 2 tones per piece. COBBLED SCRAP The cobbled scrap arises from wire rod mill and includes some rejected coils and binding wires. REJECTED ROLLS Cast iron rolls rejected sheet rolls. MILL CUTTINGS Rail and structural mill cuttings, merchant mill cuttings, rail cuttings, plate end sharing rejected slabs, Slabs cuttings, miss rolled slabs and wire rod cuttings are included in this type of scrap COLLECTION OF SCRAP All scraps identify the metallic scrap generated in the production Process and lying in the shop. The shops collected the scrap with the help of overhead cranes and stock them for loading into wagons. Rejected rails and sleepers lying near the railways track inside the plant are collected at such points from where loading and collection by truck is possible. Crane facility is provided for loading the scrap into the truck whenever cutting or processing not possible on the spot. Scrap and Salvage department(SSD) is responsible for overall coordination of scrap collection from entire plant. For this each shop nominate one executive for ensuring the clearance of scrap from the shop. Head of marketing and customer service department requires the progress on scrap collection on weekly basis. Scrap and salvage department makes suitable schedule for collection of scraps and intimates the data collection to respective shops.

BY-PRODUCT OR CHEMICAL PRODUCTThese type of product are produced under the By-product plant. The primary product of coke oven is to prepare coke form coal for Blast furnace. In meanwhile various other By-products are obtained in the formation of coke which are processed in BBP and is converted to useful form for sale and to earn more revenue. Form batteries crude tar is obtained which is sent to TAR DISTILLATION PLANT, where a number of products are obtained like: SIOM, Page 24 Hot pressed naphthalene Hard, Medium Pitch Extra Hard Pitch Coal Tar Wash Oil PUNE

P.C.M. Road Tar

Also gas like coke oven gas is obtained from batteries which are sent to BPP from which a number of products are obtained like: Ammonium Sulphate which is used in fertilizer making. N.G.Benzol N.G.Toluene Xylene L.S.Naphatha S.B.Oil

Benzyl products(Benzene) Place of production Bokaro Steel Plant. Mode of delivery-railway tank wagons, road tankers in loose condition. Uses-it is used as an important raw material for various drugs and dyes. Benzene hexa chloride is used as a pesticide. It is also used in the manufacturing of phenol, DDT, nylon-6 etc. Toluene (Nitration grade) Xylene Place of production-Bokaro Steel Plant Mode of delivery- railway tank wagons. Uses-Paints, thinners and varnish, rubber industry and printing Ink. Place of production-Bokaro Steel Plant Mode of delivery-railway tank wagons. Uses-as a solvent, starting material for dyes and printing ink. Place of production-Bokaro Steel Plant Mode of delivery-railway wagons/road tankers Place of production Bokaro Steel Plant Mode of delivery-railway tank wagons. Uses-It is used as a solvent in many chemical reactions, artificial sweltering, paint manufacturing, rubber industries Adhesives, Making of printing ink.

Light solvent naptha

Still bottom oil

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Uses-mixed with other materials and is used for various purposes like roof tar filling to make roof of buildings water-leak proof, rubber paint for vehicles, industrial oil etc.

Extra hard pitch Place of production Bokaro Steel Plant Mode of delivery-in gunny bags in loose condition. Uses-in aluminum industries as a binding material for anode. Place of production-Bokaro Steel Plant Mode of delivery-in gunny bags in loose condition. Uses-It is used in production of pitch fiber pipes-roof binders, in preparation of road tar, building materials, sheeting, tilling etc. It is also used as a refractory brick.

Soft pitch

Hot pressed naphthalene Place of production-Bokaro Steel Plant Mode of delivery-in gunny bags in loose condition. Uses-Dye intermediate, as an insecticide, dispersing agent.

NECESSITY OF SELLING OF SECONDARY PRODUCTS AND BY-PRODUCTS The net sales realization from all the secondary products, by- products and co-products of BSL is around Rs.600 crores which is a large amount of money. 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 specification which is a cost and labor intensive process. By selling it to the different Mills/traders/Processors the plant earn around Rs. 4000 per tones of the direct profit than by re-producing it to the main product. The traders/processors-rollers, use these as a raw materials for different finished products making huge profits, the plant is also earning considerable amount of profit by selling these product. Profit is the main aim of every business, and when the realization of these products for the 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 developing for re-rolling the secondary materials to make finished products. It has also increased the small scale industries and employment opportunities in local market.

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MARKETING DEPARTMENT

Marketing Department of Bokaro steel Plants one of the Departments under material Management Division, others being Purchase, Stores, Inspection & Progress Departments. All outstation offices of BSL at Kolkata, Mumbai, Delhi and Chennai are also under the administrative control of M.M. Division. Marketing Department deals with the activities of selling and disposal of Secondary products, By-products, Waste products, Idle assets etc (In order to condense the project, the study has been limited to the marketing of Secondary Products and By-products only.) The marketing is done in two ways: 1. Marketing of prime products done by Central Marketing Organization (CMO), of SAIL which is a unit of SAIL and having its head Quarters at Kolkata.

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2. Marketing of secondary products and By-products are done by BSL. Marketing. Marketing Department is having differe3nt section such as Steel section, By-product section, MIS& Pricing etc. The Secondary section deals with the secondary Products, it includes scraps of iron and steel slag, coal and coke fractions, coal chemicals. The marketing development section deals with the MIS and strategic planning activity come under this section. In addition to the above outstation market development groups are functioning at Kolkata, Mumbai and New Delhi. The Export section deals with the activities of the exports in respect of iron and steel items produced by Bokaro Steel Plant. OBJECTIVE OF MARKETING DEPARTMENT Marketing has been defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, good and services, to create exchanges that satisfy individual and organization objectives. The Marketing Department decides as to how secondary & by-product are disposed through sale. The process requires an understanding of buyer and seller behavior within the context of the overall market environment. Added emphasis is given to the important area of global markets with their own special challenge and opportunities. The activities of marketing department at BSL include accounting, finance, information systems, economics and mathematics for the selling of secondary &by-product. At the upper division level, managers take decisions in marketing as well as finance, management, and statistics. The curriculum provides Training in development decision models to aid in solving marketing problems. Planning and analysis of strategies for Product and services are also emphasized, as is the use of computers for data analysis of strategies for product and services are also emphasized, as is the use of computers for data analysis. FUNCTIONS OF MARKETYING DEPARTMENT

Developing marketing strategies. Capturing marketing insight. Connecting with customer. Building strong brand. Shaping market offering. Delivering value. Communicating value. Creating long term growth. To take stock of item on a regular basis.PUNE

SIOM, Page 28

To take disposal as per procedure. To review and fix the price. To ensure smooth execution of order. To settle refund claims. To create awareness in the market about various products. Put pressure on CMO, to get order for an underutilized mill.

MARKETING PRACTICES OF BSL Steel being an industrial commodity it is very necessary to maintain customer relationship for profitability and smooth running of company.

BSL adopts following practices for customer satisfaction:1. Procedures adapted to access current, future expectation of customers. 2. It induces market research visiting customer premises attending to customer complaints.3. CMO has Market Management Group where specialists monitor changing demand pattern and

development in each Market segment is carried on.4. It has posted market development officers at various locations that are its eyes and ears for

monitoring current and future expectation of its customer. 5. The Business-planning department is exclusively meant to study customers changing demand scenario and assess current and future expectation.6. To understand customer needs seminars and workshops are also organized by BSL.

MARKET DEVELOPMENT BSL has valued customers group which identifying their specific needs that segmenting and developing market segment for our products. Major product modifications are done as per their specific needs of the Market segment there by creating product differentiation packages. PRODUCTION ACCORDING TO MARKET NEEDS BSL is always in touch in market and try to produce according to market needs. BSL tries to produce quality products which full fill the need of market. STOCK REDUCTION Giving facilities like door delivery, road dispatches, credits facility and rounds the clock stockyard operation. PRICE FIXATION Pricing is done basically by the CMO. Taking into consideration cost of production, government steps on pricing, certain percentage of profit, price of raw material fright charges etc.SIOM, Page 29 PUNE

DESPATCH As the product is manufactured, this department directs the stockyards the mode of the destination with reference to dispatch program and dispatch advice is mode. DOCUMENTATION With the dispatch of product the Finance department calculates the total cost of product as per demand order. Certain receipts and bills quoting the material code, nature, quantity, and all expenses are sent to connected stockyard. The product will be then released to the condensed person after proper and complete payment to the pay-in-authorities is made.

MARKETING OF SECONDARY PRODUCTSDuring the seventies and eighty when the plant was one million-tonnes and 2.5 million-tonnes capacity respectively, arising of secondary products was limited and such arising was recycled for remelting. Therefore there was no scope for marketing in other words it was not economical. The plant capacity has been increased from 2.5 million tonnes to 4 million tonnes in the late nineties. New technology has been adopted while increasing the capacity of the plant where by the use of arising for re-melting drastically reduced. This has given more impact to the making of secondary product. In the nineties we have seen lot of changes in the economic scenario of the country. The concept of more employment in Public Sector Enterprises has changed to more profits. One of the strategies adopted by the plant for increasing the profit is marketing of secondary products. In the recent years a number of foundries and re-rolling Mills come into existence throughout the country. These small scales Sector need the Secondary Products as input raw material for their production. The plant extends all types of facilities and assistance to these small-scale units. This, in turn gives scope for more employment opportunities. The plant for marketing has adopted following strategy: Committed delivery. Competitive price. Quick complaint settlement. Culture of customer service.

MARKETING POLICIES OF SECONDARY & BY PRODUCTThe marketing policies of any organization mainly depend upon the marketing policies of the Competitor, market trend, position in the market and other factors.

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Bokaro Steel Plant made its own marketing policies based on the market terms, quality of the products, quantity demanded, and price of their competitors products. At present, plant is following the basis of marketing as under: Product knowledge Market demand awareness and sensitivity Quick demand to market situation Direct contact with customers Innovative strategy Attractive and competitive pricing Resource utilization Customer satisfaction Assumed delivery Prompt after sales service, complaint, settlement

Besides these other steps are being also taken such as all destinations are remained among customers, the emphasis is laid to cultivation log term relationships with dedicated customer, the structure of marketing org. is also modified to make it more extensive and customer oriented.

ORGANISATION CHART OF MARKETING DEPT (BSL)DGM(MARKETTIN

Jr.Manager ordination)

(co-

AG M

Sr.Manager Price Monitoring, erd, mis etc

Sr.Manager SIOM, Idle Assets, u&s Page 31 items, surplus item Asst.Manager Pig Iron BFG, Slag, Waste

Dy.manager Reports, Price, Monitoring

PUNE

Sr.Manager sec.steel & Est. Quality circle ISO, Suggestion

Manager Coal, chemical,ISO, Zinc production, Ammonium &Ferrous sulphte.

Jr.Manager

Jr.Manager

ADVERTISING POLICY:Companies in present scenario of globalization and liberalization need to do more than making good product or competitively pricing its product, they need to inform consumer about and carefully product in consumers mind. Advertising is the best form of non-personal communication it is good way to inform and persuade. Advertising serves the dual purpose of informing the product benefit and positioning the product in consumers mind. Bokaro Steel Ltd. Produces mainly of industrial use. Its product is the raw material for most of its consumers. The consumers base of BSL is knowledgeable and knows about the products and its benefits so on special efforts is needed to inform them about product. In BSL, the main form of advertising is Tender Notice and Notice other form of advertising is also used but rarely. Information is provided to various persons through advertising, which are directly or indirectly related with company. These are: Customers Users General Public or neutral persons Persons who are related with the economic progress of the company.

Public relation Department of Bokaro Steel Ltd. looks after the advertising policy. All decisions related with advertising are taken by both Marketing and public relation Department jointly supported by sales co-orination. All advertisement of SAIL mainly contains factual date related to the products and its comparative advantage over other similar products sometimes it also contains information related to sales of aSIOM, Page 32 PUNE

particular kind of product. Main Media used for advertising these products are newspaper and business magazines. Newspaper and business magazines are selected based on the following criterions:

Kind of product to be advertised and its used. Where the product is in demand. Circulation of a particular newspaper and business magazines in the area. Cost of advertising.

PRICING POLICY OF SECONDAY PRODUCTPrice is one of the elements of marketing mix that generate revenue. The basic thing to be kept in mind while deciding the price is the product for which the price is to be fixed. As coal chemical and secondary product are not core product of BSL and hence the pricing strategies of secondary and By-Product are very difficult part. Following things are taken into consideration during pricing of secondary and By-Product at BSL marketing department: The cost earned by the company during production process Demand of particular product Dispatches of last three months Order balance Stock in hand

STANDING PRICING COMMITTEE: The committee revues the price of various products and takes decision in favor of maximizing the profit. It holds meeting at least once a month. Number of meeting can increase depending on market condition. Pricing committee consists of: GM (Utility)- Chairman GM (Marketing)-Convener DGM (Finance)-MemberSIOM, Page 33 PUNE

DGM (Sales Coordination)-Member DGM (Stores)-Member DGM (BPP)-Member For pricing of scrap goods DGM (SSD) replaces the DGM (BPP).Rest all member remain same. Method of Pricing the Products: Fixed Price Method Reserve Price Method- Product sold by E-Auction

MODE OF SALESMarketing department applied the following method for selling the secondary and by-products: E-Auction Sales. Fixed Price Sales. Open tender

E-AUCTION SALE: Key terms applied in e-auction:Auction 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 (from one or more locations) simultaneously bidding to be selected for supplying the item/s on auction. In other words, the venue for the auction is on an internet website/Platform. The service Providers 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 one bidder (normally the bidder who quotes the highest price) is awarde all the units of the item being auctioned. The bidder quoting the highest price is normally allotted the item.SIOM, Page 34 PUNE

Client. Client is the individual/business entity who has contracted service Provider to conduct such auction. In case of auction, the purpose would be the genuine intent to sell the selected items/Lot to the bidders desiring to buy these items from the Client. Bidder. Bidder is the individual/business entity participating in the auction, intending to buy the items/lots from the client. To be become a Bidder in the auction, a business entity has to secure client approval for participation and also provide written assent to the General Rules and Regulations. Auction Engine. Auction Engine refers to the software that encapsulates the entire auction environment, processing logic and information flows service Provider is the sole owner of the auction engine and retains exclusive right over the utilization of the same.

Timings of the online Bid. All the timings of the online Bid shall be based on the time indicated by the Server hosting the Auction Engine. It shall be the endeavor of service Provider to ensure that the Server Time reflects as closely as possible the Indian Standard Time (IST) i.e. GMT +05:30hrs. However, in the event of any deviations between the Server Time and the Indian Standard Time, the functioning of the Auction Engine (Launch, operation, and closure) would be guided by the server Time. Bidders are advised to refresh both the windows of the Auction Module check the exact Server Time (displayed in both the windows). Preview Time Preview Time refers to the period of time that is provided prior to the commencement of bidding. This is to facilitate approved participants to view the auction details such as item specifications, bidding details and bidding rules. The purpose is also to familiarize participants with the functionality and screens of the auction mechanism. It is not mandatory for Service provider to provide Preview Time. Start time Start time refers to the time of commencement of the conduct of the online auction. It signals the commencement of the Price Discovery Process through competitive bidding. Duration of the Auction. It refers to the length of time the price discovery process is allowed to continue by accepting bids from competing bidders. The duration of the auction would normally be for pre-specified period of time.

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However, the bidding rules may state the conditions when the pre-specified duration may be curtailed / extended. The conditions include: Curtailment of auction duration in the event of no bids for a specified period of time (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 ready to the bid. Auto Extension of the Auction Timings. In the event of bids in the last few minutes of the scheduled bid time, the Bid timings are automatically extended for a specified period from each such bid. Such Auto Extension shall continue until no bids are placed for the specified period (Engine remains inactive for the specified period). The Inactivity Time for Auto Extension purpose is normally X minutes. Service Provider however retains the right to change the same. The Inactivity Time applicable for the particular online Bid shall be visible to the bidders under the Bidding Rules module on the engine. End of The Auction. End of the Auction refers to the termination of the auction proceedings signaling an end to the price discovery process. PROCEDURE OF E-AUCTION1. Advertisement/Posting of dates and types of materials to be auctioned in SAIL website and various

news papers (Local &National) every 15th to 20 of the month for the next month, 2. Posting of details of lots to be auctioned one week prior to the date of auction, on the website of SAIL and metal junction.com 3. Inspection of lots to be auctioned by customers. 4. Auction is held on www. Metal junction.com 5. Report of auction conducted is give by Metal junction.com 6. Meeting of reserve price opening committee and their recommendation. 7. Approval for sale of lots recommended by RP opening committee. 8. Issue of offer to the customers, based on approval of chief Executives.

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FLOW CHART OF E-AUCTION

Advertisement of dates/type of materials on SAIL website/Newspaper

Posting of lot details to be auctioned on SAIL/Metal junction Website

Inspection of lots by customers

Report of Auction by metaljunction.com

Auction Conducted on metaljunction.comSIOM, Page 37 PUNE

Reserve price Opening Committee meeting

Recommendations Approval for Sale

Issue of offer Letter

FIXED PRICE SALE The re-rollable material is also sold through marketing department. The percentage of material to be sold by auction or by marketing depends upon the management decision. The pricing committee depending upon carries out the pricing of these materials: The price offered by the customers during auction sale. The quantity to be sold. The approvals of the managing director.

The customer approaches the department makes the payment in advance and lifts the material as and when it is made available to them. Sale of material is done on first come first serve basis. PROCEDURE OF SALE THROUGH FIXED PRICE

Advertises in various newspapers (Local and National) between every 15th to 20th of the month for the next month. For requisition of materials, applications are invited from customers between 25th-30th/31th of every month. Allocation of material to various customers is done as per approved procedure of priority allocation. Offer letters are issued to the customers. Price applicable will be the price rising at the time of dispatch.

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FLOW CHART OF FIXED PRICEAdvertisement website/Newspaper of type of materials on SAIL

Application from customers

Allocation of material

Issue of offer letterSIOM, Page 39 PUNE

PRIORITY IN BOOKING OF MATERIALS BY MARKETING DEPTT.

Category A

Priority 1st

Buyer Govt. Units/PSUs &

Quantity to be allotted

its Any quantity required by subsidiaries & joint ventures of them govt. units having more than 50% govt. share

B

2nd

Dependent BIADA units with Maximum 70% of the MD/BIADAS balance available quantity Recommendation & after meeting the 1at priority MD/BSLs approval. Consumers/Processes Jharkhand State To all other customers of 30% of balance

C

3rd

D

4th

Out of the balance quantity of material left if any

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OPEN TENDER DOCUMENT TERMS & CONDITIONS 1. The parties desirous of purchasing the material have to quote for entire quantity of the material. 2. The tenders are advised to inspect the material at B.F. Slag Dump, if so desired, before submitting the quotations. 3. Terms of sale: On As is where is basis, No complaint basis and Ex-works basis No PICK and CHOOSE shall be allowed other than sorting out Iron/Steel pieces found, if any. 4. The conditional quotations are liable to be rejected.5. Earnest Money: EMD (Earnest Money Deposit) Rs 100000/- for the item to be deposited in the form

of DD/BC/PAY ORDER in favors of SAIL/Bokaro steel Plant payable at Bokaro from any Nationalized/ Scheduled banks along with the quotations. Any variation/demand in such taxes, duties, levies and charges shall also be to the account of the bidder to whom the tender is awarded. The tenders should quote their rate in per cubic meter against the total quantity as asked for in the tender document both in words and figures. The tender should be submitted in the TENDER BOX placed inside the Conference Hall Of Marketing And Strategic Planning Department on the 5th floor of ISPAT BHAWAN. The general terms and conditions of lifting by road and safety stipulations in force shall be applicable.6. Payment Terms: The successful bidder has to make payment for the quoted quantity in 12 (twelve)

equal installments of 1000 Cu.m each. 1st installment is to be deposited within 10(Ten) days from date of issue of sale order inclusive of the date of issue of sale order. Subsequent installments are toSIOM, Page 41 PUNE

be deposited within 30 (Thirty), 50 (Fifty), 70 (Seventy), 90 (Ninety), 110 (One hundred ten), 130 (One hundred thirty), 150 (One hundred fifty), 170 (One Hundred seventy), 190 (One hundred ninety), 210(Two hundred ten)& 230 (Two hundred thirty) days from the date of issue of sale order (inclusive of the date of issue of sale order). However, lifting of entire quantity of material has to be completed within the validity period of 300 (Three Hundred) days from the date of issue of sale order (inclusive of the date of issue of sale order). Payments shall be in the form of DD/BC/Pay order or acknowledgement note from SBI, IFB commercial, Branch of Raipur / Bokaro payable at Bokaro form any of the Nationalized /Scheduled bands in favor of SAIL / Bokaro Steel Plant. In case of failure of payment as mentioned above and or failure in lifting of material within the validity period of lifting, the Management reserves the right to cancel the sale Order and forfeit the security deposit. 7. Loading And Transportation Loading and transportation of the material in the tended vehicle has also to be done by the tender at their own cost and arrangements. Successful customer will be allowed to the lift the material only 4 days in a week. 8. Bokaro steel plant reserves the right to accept or reject any of the tenders or all the tenders or award contract to any other customer fully or partially without assigning any reason. 9. The management reserves the rights to divide the quantity offered for sale and allot the material to more than one tender.10. Validity of Lifting: The successful tenders have to be complete the lifting of the allocated quantity

of material within 300 (Three hundred) days from the date of issue of sale order. 11. The offer of the customer would remain valid for a period of 90 (Ninety) days from the date of opening. 12. Loading will be done under the supervision of MRD, the operating agency of the contract.

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REFUND CLAIMProcedure for Refund of Claim Amount of the Customers. Claim Form When lifting of material for a particular sale order is over customers claim for the balance of: Price of material Security deposit Earnest money deposit (in case of sale trough Tender and e-auction. Interest Turn over tax(if applicable)

Duly filled claim form (issued by sales and excise department) is submitted by customers to the Marketing Bank draft numbers .Bank account details invoice details and other relevant information should be filled in the form. Registration On line, registration of claim form is done at marketing department Registration no. and date is allocated to each claim .After registration claim forms are submitted to the concerned officer. Ground Clearance Report Ground clearance committee submits report clearance (when party gives petition after lifting of material) of CMM (marketing). After completation of lifting of material under a particular sale order, the cases where ground clearance report is not submitted earlier it is obtained from the committee by marketing department. Reconciliation of Records Detail of claim is reconciled with that of records at marketing department In case of any discrepancies in the claim from submitted, it would be returned to the party for correction. Cancellation of Sale Order When all details are in order, for security deposited and balance amount of price of material, cancellation PIM of the sale order is prepared in the computer system. Hard copy of this cancelled PIM

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is duly signed by dealing assistant and controlling officer. In case of EMD and TOT, IOC is sending for refund of amount. Online Forwarding of Cancellation Cancelled PIM Re-Forwarded to Sale and Excise department trough computer network. A forwarding letter along with date no and date is generated in the computer system for the particular cancellation PIM , which is electronically transferred to S&E dept. hard copy of this is sent S&E along with prepared cancelled PIM for final settlement of the amount due to the customers. Settlement by Sales Account Department Account department reconciles the details to the claim form and cancellation PIM with their records then processes the claim for refund .In case of any discrepancy, S&E department sends it back to marketing department for clarification. After correction claim form and cancellation PIM are again sent to S&E department for processing. Voucher for Payment S&E department prepares voucher for payment of claim, amount and forwards it to case section of account department. Payment of Claim Cashsection issues cheque of claim for the party, which is deposited in their Bank Account mentioned by them in the claim from. Intimation Of Cheques Issued Cheques department sends information about issue of cheque for final settlement to the party of cheques issued.

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FLOW CHART OF REFUND OF CLAIMSUBMISSION OF CLAIM PARTY IN MARKETING

REGISTER THE CLAIM

MKTG. DEPT .FORWARD IT TO ACCOUNT (SALE &EXCISE) WITH CANCELATION OF SALE ORDER

ACCOUNT DEPARTMENT VERIFIES

MARKETING FOR CORRECTION (If required)

ACCOUNT SECTION

CASH SECTION

CHEQUE (PAYMENT TO PARTY)

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DATA ANALYSISSECONDARY DATA ANALYSIS PRODUCTION FIGURE OF BY-PRODUCTS (UNIT - METRIC Tonnes)PRODUCTS NG BENZENE NG TOLUENE LS NAPTHA STILL BOTTOM OIL EXTRA HARD PITCH HP NAPTHALEN E THARACENE OIL HARD MEDIUM PITCH AMMONIUM SULPHATE 2005-06 4873 1123 374 1035 1705 2710 200607 2653 526 202 608 2505 3213 200708 4222 892 327 727 1327 3312 200809 6329 1270 503 702 1625 3235

2525 2910

2945 1840

2785 3350

1780 3545

32858

31530

32984

28370

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Sale of By-Product (Values In Lakhs) 2007- 081st quarter 2nd quarter 3rd quarter 4th quarter Total 1759 2047 2104 1918 7828

2008-092906 2797 2040 1701 9445

2009-101169 987 801 1487 4444

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Sales through E-Auction

1st quarter 2nd quarter 3rd quarter 4th quarter Total

2007-08 2008-09 2009-10 8144 13409 7603 12100 10801 8458 9146 11223 7510 12619 6553 8188 42009 41986 31759

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Sale of secondary steel (value in lakhs) 1st quarter 2nd quarter 3rd quarter 4th quarter Total 2007-08 11464 13179 13425 15194 53262 2008-09 13022 16565 11602 9159 50348 2009-10 9500 9188 6485 12379 37552

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Sales of Iron & Scrap (value in lakhs) 2007-08 958 1115 1014 1472 4459 2008-09 1326 1039 1103 915 4384 2009-10 712 634 623 1158 3127

1st quarter 2nd quarter 3rd quarter 4th quarter Total

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Sale of secondary steel (value in lakhs) 1st quarter 2nd quarter 3rd quarter 4th quarter Total 2007-08 11464 13179 13425 15194 53262 2008-09 13022 16565 11602 9159 50348 2009-10 9500 9188 6485 12379 37552

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Sail of BFG Slag (value in lakhs)200708 1st quarter 2nd quarter 3rd quarter 4th quarter Total 797 933 953 940 3623 200809 841 914 882 999 3635 200910 1088 1083 994 1697 4861

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Sales miscs others (value in lakhs)200708 1st quarter 2nd quarter 3rd quarter 4th quarter Total 961 848 987 1182 3978 200809 1457 1516 1065 463 4501 200910 843 689 3616 1386 6534

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ANALYSIS OF PRIMARY DATA COLLECTED CUSTOMERS OF BSL THROUGH QUESTIONNAIRE:1.

FROM

THE

Which of the following category you belongs to?

a) Trader b) Manufacturer c) Processor d) Others

2. For how many years you have been dealing with BSL? a) For less than 5 yearsSIOM, Page 54 PUNE

b) 5-10 years c) 10-15 years d) More than 15years

3. Why do you prefer to purchase product from BSL? a) Quality b) Low cost of product c) Larger amount of product d) Local market e) Different types of product

4. Are you satisfied with the quality of product? a) Very satisfiedSIOM, Page 55 PUNE

b) Satisfied c) Neither satisfied nor dissatisfied d) Dissatisfied e) Very dissatisfied

5. Which mode of transport are you using? a) Railways b) Roadways

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6. What type of Product do you purchase from BSL? a) Secondary b) Scrap c) Byproduct

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7. Your Company deals with which of the following? a) Customer b) Other company c) Wholesaler d) All of the above

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8. Are you dealing with any other Steel Company? a) Tata Steel b) RINL c) Essar Steel d) Jindal Steel e) Other (Please specify)

9. Which mode of sale you / your company prefer from BSL? a) E-Auction b) Fixed Price Sales c) Open tenderSIOM, Page 59 PUNE

10. When you bid for product in E-Auction, do you have any idea about Reserve Price? a) Yes b) No

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11. How you / your company come to know that BSL is going to come up with EAuction of Product? a) Online from website b) From Newspaper c) From Marketing department of BSL

12. Do you inspect the product that is sold through E-Auction before biding? a) Yes b) No

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13. Have you faced any difficulty while dealing with BSL? a) Always b) Very often c) Sometimes d) Rarely e) Never.

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14. Did you complain about the problem faced? a) Yes b) No

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15. Did your complaints was solved? a) Always b) Very often c) Sometime d) Rarely e) Never

16. Are you satisfied with refund of claim process of BSL? a) Very satisfied b) Satisfied c) Neutral d) Dissatisfied e) Very dissatisfied

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17. Do you think there is a need to improve the refund of claim process of BSL? a) Yes b) No

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18. How important is your association with BSL with respect to your business? a) Very important b) Important c) Neutral d) Not very important

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19. Are you satisfied with your association with BSL? a) Very satisfied b) Satisfied c) Neutral d) Dissatisfied e) Very dissatisfied

20. How often you purchase from BSL? a) Very often b) Often c) SometimesSIOM, Page 67 PUNE

d) Rarely

21. Considering your experience with BSL, how would you rate the overall quality of the customer support provided by the BSL? a) Excellent b) Very good c) Good d) Fair e) Poor

22. Considering the overall quality of product in relation to its prices, how would you rate the value offered? a) Very good b) Good c) Neutral d) BadSIOM, Page 68 PUNE

e) Very bad

23. Would you like to continue purchasing from BSL in future? a) Extremely likely b) Very likely c) Somewhat likely d) Not very likely

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24. All other factors remaining same, how likely are you to increase your current purchase of the product from BSL? a) Extremely likely b) Very likely c) Somewhat likely d) Not very likely

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25. Would you be recommending BSL product to others? a) Definitely recommending b) Would recommend c) Neutral d) Probably not

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SWOT Analysis of BSLSTRENGHTS: SAIL has a customer friendly approach and improved customer orientation. SAIL is in market from long tome having long time having long term relation from the customers. SAIL, BSL never comprises regarding QUALITY so it has superior quality. There is a well balanced co-ordination and interaction among various marketing department. An advanced technological support is provided to marketing department. The brand name SAIL has goodwill in national and international market, for both primary and secondary products. Its widespread marketing centres all over the world have placed the marketing department of BSL in for-front.

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Customer perception of SAIL in fair and for reliable supplier > SAIL, product has International standard. It has countrywide network of stockyard and dockyards / branches /customer can take material from any location. Principal of hierarchy is given due to respect in BSP enabling . Management to ensure proper planning and its implementation. WEAKNESS:

Due to its large organizational structure, which involves numerous policies and officials it becomes difficult to take decision quickly and as a result final decision making becomes very slow. The working marketing officials are not given due recognition .An appropriate reward that hurts their motivation and interest. Due to its large organizational structure involving numerous policies and officials, prompt decision making is a real problem. Complex pre and post sale activities repel probable customers. Quality of product which is slightly inferior as compared to competitors who are having latest technology. Sometimes products are not supplied as per require meant of customer. OPPORTUNITIES:

There is growing demand for secondary and by-product in both domestic and international market. With the progress of research in the field of secondary product the utility of these products has increased. All departments must go in for well-planned modernization. With the opening up of new market can be discovered. THREATS:

Competition has grown very tough with MNC entering into the domestics market. There is tough competition with national and international petro based companies. Excessive delay in execution of order and dispatch has lead to shift of regular customers.PUNE

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Main thrust of SAIL is on marketing of its primary product: so secondary product marketing is not taken seriously. Sales of secondary product are just considered as an additional income. Secondary products are available at cheaper rate in international market, with the opening up of the economy customers have the freedom of choice and thus due to price factor they go for international market.

FINDINGS RELATED TO MARKETING DEPARTMENT Policies and strategies to create awareness among the customers about the product are not effective. All marketing procedure of prime products are decided by SAIL and carried out by the central marketing organization (CMO). As the organization is concerned with the large number of production activities and the departmental work are done mostly manually from placement of orders to documentation, which ultimately frustrates the employees.

The organization is more concerned with large orders of steel products by ignoring the smaller ones. The local customers with business of by-products are sometimes. Due to improper packing the materials reach the stockyard often in damaged condition which is attracting criticism from the customers and then sold with loss. Export considered secondary to domestic selling as BSL is a govt. undertaking and its First priority is given to domestic marketing. The executive of marketing department are not doing their work with responsibilityPUNE

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RELATED TO SECONDARY SECTION

Payment is accepted from the customers even when the material is not available in stock, in anticipation that it 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. Refund of excess payment takes sometimes more than a year. Price list made available to the re-rollers every month contains even the price of materials which is not available. The price prevailing in the market of the finished goods manufactured by the re-rollers are sometimes less as compared to the material purchased from BSL which results in losses. The traders are secondary products are not satisfied with the marketing department due to delay in their re-fund payment.

CONCLUSIONIn the past weeks during my training, I have visited the site of Bokaro Steel Plant. It was the privilege for me to take this opportunity a challenging work to study and observe Market Research to study customer satisfaction for buying Secondary & By-Products of SAIL at Bokaro Steel Plant. Bokaro Steel Plant recognizes that leadership is essential for survival in competition environment. Customers satisfaction like the quality is a journey and not my destination. It is essential for everyone in the company have a clear understanding of what customer satisfaction means if the plant aim to achieve leadership in customer satisfaction. The basic objective behind the study carried out by me is to study the major contribution of secondary & by-products to total sale, which is predetermining for the success of the company of the company. By selling the secondary & by-products in the local market is earning revenue. It is also creating an employment in small scale industries and developing the economy. Customers satisfaction would happen when the management fulfils the following dimensions: Delivery in time Product mix according to customer requirement Flexible pricing policies Complaint settlementSIOM, Page 75 PUNE

Culture of customer service

Suggestions1. The pricing as well as the distribution policies should be framed by keeping in mind the

requirements of the complete range of manufacturers and not only the bulk consumers. This will encourage the new re-rolling mills to approach BSL for the material.2. Alternatively if the material is not available the BSL authorities should not accept the payment so

that the buyer can approach some other sources for procuring the material. 3. Representatives from the member of the rolling mills association can be introduced in the committee formed for pricing the various secondary products .That representative holds the complete picture of the products as placed in the market and the prices fixed with his consent will be on rational grounds and acceptable to all. 4. Price of the material for which 100% payment has been received as advance should not be changed if the delay in the lifting of the material by the party is due to some fault of BSL, but if is due to deliberate delay in lifting the material by the customer than the same policy should be applicable. 5. BSL can appoint 2-3 authorized stockiest trading practice. In this way the benefit to break up pricing can be passed on to the one whom these have been framed.SIOM, Page 76 PUNE

6. Price list made available to the various re-rollers every month by BSL should count all the items but it should clearly indicate the material which is not available so that the customers requiring that particular material can approach some other source. 7. Creating product awareness through print media, hoarding, industrial magazines etc. 8. Refund of excess payment process should be improved and simplified. 9. Induction of computers in marketing department. 10. Proper packing is to be done to safeguard the materials from damage, which is occurring due to multistage handling and transportation. 11. The infrastructure facilities at the disposal yard should be maintained properly and needs improvements so that the pace of the lifting process is increased.

ABBREVIATIONSAIL TISCO HSC - Steel Authority of India Limited. - TATA Iron and Steel Company. - Hindustan steel works consultants Ltd.

MECON - Methological & Engineering consultants ltd. NMDC - National Mining Development Corporation ltd. RDCIS - Research and Development Centre for Iron and Steel. CET CPTI MRD BFGS - Centre of Engineering and Technology. - Central Power Training Institute. - Marketing Recovery Department. - Blast Furnace Granulated Slag.

LOC- Leeter Of Cridit MM- Material Management RR Railway Receipt PCPrice Circular SC- Sale CoordinationSIOM, Page 77 PUNE

BIBLIOGRAPHYREFRENCES:MARKETING MANAGEMENT-PHILIP KOTLER MARKETING MANGEMENT REPORT STEEL SCENARIO JOURNAL SAIL NEWS MAGAZINES SAIL JOURNAL MARKETING PERFORMANCE REPORT.

WEBSITES:www.sail.co.in www.metaljunction.com www.steelrx.com www.bokaro.nic.inSIOM, Page 78 PUNE

www.steel.gov.in www.tisco.com www.worldsteel.com www.economictimes.com

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