ASSESSING MARKET POTENTIAL OF PRODUCTS OF BHILAI ENGINEERING CORPORATION & SWOT ANALYSIS A Project report submitted in the partial fulfillment for the award of MASTERS IN MARKETING MANAGEMENT By SWETHA RAJENDRAN INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH 1 INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH
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ASSESSING MARKET POTENTIAL OF PRODUCTS OF BHILAI ENGINEERING CORPORATION
&SWOT ANALYSIS
A Project report submitted in the partial fulfillment for the award of
MASTERS IN MARKETING MANAGEMENT
By
SWETHA RAJENDRAN
INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH
CHINCHWAD, PUNE
1 INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH
May- July 2010
DECLARATION
I hereby declare that the project entitled “Assessing Market Potential of
Products of Bhilai Engineering Corporation Limited & SWOT
Analysis” conducted for BHILAI ENGINEERING COPORATION is
submitted for partial fulfillment of MMM degree, 2009-2011.
This is an original work under the guidance of Mr. Amit Basu Mojumdar
(Sr. Vice President) and Mr. Sandeep Sharma (D.G.M. Marketing) BHILAI
ENGINEERING COPORATION LTD. The content of this report is based
on the information collected by me during my training period, from
14.05.2010 to 14.07.2010 at Bhilai. To the best of my knowledge this
project has not been sent for a publication in whole or part elsewhere.
SWETHA RAJENDRAN Date- (..................)Institute of Business Management and Research,Chinchwad, Pune Place-(…………..)
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ACKNOWLEDGEMENT
Success never eludes those who give due credit to the ones who have led
them to the path of success.
At the onset, I would like to thank Mr. Amit Basu Mojumdar (Sr. Vice
President) for providing me the opportunity to do the project in the
organization ‘BHILAI ENGINEERING COPORATION LTD’. I am
grateful to my organization guides, Mr. M.S. Dattaray (Vice President,
Marketing) and Mr. Sandeep Sharma (D.G.M. Marketing) and, who gave me
an opportunity to get exposure to the working of the organization, for his
valuable guidance at each stage of the project, thus paving a way for a great
learning experience.
Last but not the least, I express my appreciation and thanks to all the
employees of Bhilai Engineering Corporation for their patience, helpful
nature and who have contributed to my learning which I will cherish forever.
I express my profound gratitude to my faculty guide, Prof. Yogesh Raut who
helped me with their guidance during the project.
SWETHA RAJENDRANInstitute of Business Management and Research,
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Chinchwad, Pune
CONTENTTitle Chapter 1: Introduction of work
Chapter 2: Company Profile
Chapter 3: Industry Profile
Chapter 4: Scope of Study
Chapter 5: Objectives
Chapter 6: Research Methodology
Definition of the ProblemDetermination of research DesignIdentification of data types & sources Methods for primary data collection Designing of questionnaire
Chapter 7: Data Analysis and Interpretation
Data analysis BEC Projects & Tenders SWOT analysis
DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)
Oven machinesPackage no. COB2/EXPN/SE-43A
11.3.1 INVITATION FOR BIDS (IFB):
A. TENDER NO. DSP/PROJ-PUR/ EXPN/ COB2/SE-43A/143 RT dated 02.03.2010
B. ITEM DESCRIPTION Oven machines The Scope of Work of the Bidder(s) shall cover Design, engineering, manufacture, check assembly & testing at works, painting, packing, supply, assembly & erection, testing, trial run, commissioning, demonstration of Performance guarantee and post commissioning maintenance for 12 (twelve) months of following Oven Machines. i) Coal charging car- 2 nos. ii) Door extractor & coke guide car- 2 nos. iii) Electric Loco- 2 nos. for existing Quenching cars The entire work under the scope including supplies and services shall be executed on divisible contract basis.
C. DUE DATE & TIME OF SUBMISSION
16.04.2010 by 14.00 Hrs “ Indian Standard Time (IST)”
D. PLACE OF SUB- MISSION OF BID & OPENING OF PART-I AND PART-II OF BID
Office of the : Deputy General Manager (MM), Project Purchase 2nd Floor, Ispat Bhawan, Durgapur Steel Plant, Durgapur-713203, West Bengal, India
E. DATE & TIME OF OPENING OF PART-I & PART-II OF BID
16.04.2010 at 15.00 Hrs “ Indian Standard Time (IST)”
F. EARNEST MONEYDEPOSIT (EMD) /BID SECURITY
Rs. 5,00,000/- (Indian Rupees Five Lakhs only) or Equivalent freely convertible foreign currency.
G. TIME FOR COMPLETION
18 (Eighteen) months from effective date of contract.
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H. VALIDITY OF BID Bid should be valid for ninety (90) days from the date of opening of Part-I and Part-II of the bid.
I. COST OF BIDDINGDOCUMENT (Non Refundableand Not Exempted)
Rs 5,000/- (Indian Rupees Five Thousand only) or Equivalent freely convertible currency.
J. SALE OF TENDER DOCUMENTS
Start : 04.03.2010 Close : 14.04.2010 at 18.00 Hrs “ Indian Standard Time (IST)”. Download : up to 18:00 hrs of 15.04.2010
K. TENDER DOCUMENT COMPRISES OF
i) Section – I (Invitation for Bid (IFB) , Bid Data Sheet(BDS) & Special conditions of contract (SCC)
iii) Section – II : Standard Bidding Document (TurnkeyBasis), May 2009 [Instruction to Bidders (ITB), Formof Contract Agreement (FCA), General Conditions ofContract (GCC), Safety code for contractors]
iv) General Technical Specification (GTS)
SAIL/ DSP hereinafter referred to as “Employer” invites tenders from reputed and experienced bidders for Oven machines as per the tender document.
Bidder may also download the bidding document from website at www.sailtenders.co.in and submit the bid along with cost of tender document (refer para ‘I’ of page 1 of IFB) to be remitted in the form of demand draft in favour of SAIL, Durgapur Steel Plant payable at Durgapur towards cost of biding documents.
STEEL AUTHORITY OF INDIA LIMITED
DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)
Oven machinesPackage no. COB2/EXPN/SE-43A
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11.3.2 BID DATA SHEET
A. Name of Facilities Oven machines required for Durgapur Steel Plant. The entire work under the scope including supplies and services shall be executed on Divisible Turnkey Contract basis.
B. Contract Name Oven Machines for Rebuilding of Coke oven Battery No. 2
C. Name of Employer Durgapur Steel Plant
D. Employer details Deputy General Manager (MM), Project Purchase 2ND Floor, Ispat Bhawan, Durgapur Steel Plant, Durgapur-713203, West Bengal, India Tel : +91-343-2575496/9932002322 Fax : +91-343-2574303/ 2575496
E. Name of Consultant
MECON Limited
F. Language of bid English
G. Spares List of O&M Spares required for operation of 2 years following completion of the Facilities as per TS.
H. Bid Currencies In addition to Indian Rupees, the Bidders may use any freely convertible foreign currency.
I. Bid Validity Period Bid shall be valid for 90 (Ninety) days from Deadline for submission of Bid.
J. Bid Submission Address of Employer for bid submission Office of the Deputy General Manager (MM), Project Purchase Section 2nd Floor, Ispat Bhawan, Durgapur Steel Plant,
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Durgapur-713203, West Bengal, India Deadline for bid submission 16.04.2010 by 14.00 Hrs IST
K. Bid Opening Bids shall be opened at 15.00 Hrs IST on 16.04.2010 in the office of the Employer Office of the Deputy General Manager (MM), Project Purchase Section 2nd Floor, Ispat Bhawan, Durgapur Steel Plant, Durgapur-713203, West Bengal, India
L. Time Schedule Completion Time shall be within 78 (Seventy eight) weeks from effective date of contract
M. Conversion to single currency
Currency chosen for the purpose of converting to a common currency shall be local currency, i.e. Rupees (INR). Source of exchange rate: [As the common currency shall be the local currency, exchange TT Selling rates observed by the Reserve Bank of India (RBI) and notified by the State Bank of India (SBI), will be used for converting prices quoted in foreign currencies.] Date of exchange rate: The closing TT Selling rate of exchange on the previous working day of the date of opening of Price bid shall be considered.
N. Performance Guarantees
The Bidder shall quote his price conforming to the Performance Guarantee parameters and the acceptable limits as specified in the Technical Specifications.
O. Amount ofPerformance Security
Performance Security amount shall be five percent (5%) of the Total Contract price in Rupees or any other freely convertible foreign currency.
11.3.3 SPECIAL CONDITIONS OF CONTRACT
Special Conditions of Contract given in Standard Bidding Document (SBD) is only for the purpose of reference. The Special Conditions of Contract (SCC) given herein below supersedes SCC given in enclosed Standard Bidding Document (SBD).
The following Special Conditions of Contract [SCC] shall supplement the General Conditions of Contract [GCC]. Whenever there is a conflict, the provisions herein shall
67 INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH
prevail over those in the GCC. The corresponding clause number of the GCC is indicated in parentheses
1. Definitions [GCC Clause 1]
1.1 Employer
Steel Authority of India Limited,
Durgapur Steel Plant,
Durgapur - 713203,
West Bengal, India
1.2 Engineer
The following shall be furnished at the time of placement of order/ signing of contract.
Steel Authority of India Limited,
Durgapur Steel Plant,
Durgapur - 713203,
West Bengal, India
2. Notices [GCC Clause 4]
The details at 2.1 and 2.2 given herein below shall be furnished at the time of placement of order/ signing of contract.
2.1 Employer’s Address for Notice purposes [Reference GCC Clause 4.1]
Steel Authority of India Limited,
Durgapur Steel Plant,
Durgapur - 713203,
West Bengal, India
2.2 Contractor’s Address for Notice purposes [Reference GCC Clause 4.1]
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M/s. ____________________
________________________
[Name and address]
Telephone No. ____________
Facsimile No. _____________
E-mail:___________________
3.1 Transportation by Wagons [Reference GCC Clause 21.4.3]
The consignee for rail dispatches shall be clearly marked as below:
Steel Authority of India Limited,
Durgapur Steel Plant,
Durgapur - 713203,
West Bengal,
India
Name of Railway Station, where site is situated: DURGAPUR
3.2 Transportation by Roads [Reference GCC Clause 21.4.4.3]
The consignee for road dispatches shall be clearly marked as below:
Steel Authority of India Limited,
Durgapur Steel Plant, Durgapur - 713203, West Bengal, India
11.4 PREPARATION OF OFFER
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STEEL AUTHORITY OF INDIA LIMITED
DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)
Oven machinesPackage no. COB2/EXPN/SE-43A
11.4.1 ELIGIBILITY CRITERIA
BIDDER’S ELIGIBILITY AND QUALIFICATIONS
Bhilai Engineering Corporation Limited (BEC) offering Coke Oven Machines as detailed in the technical offer.
SL. NO.
PROPOSED BY THE EMPLOYER CONTRACTOR’S
COMMENTS
EVIDENCE OF
ELIGIBILITY
1 Technical Criteria
1.1 A. Charging car
The Bidder quoting for charging cars must have successfully designed, engineered, manufactured, supplied, installed and commissioned at least 2 Nos. of charging car with screw feeders incorporating emission control facilities for a coke oven battery in the last 7 years, out of which one such machine must be in continuous successful operation for a minimum period of one (1) year preceding 02.03.2010, with proof of having met all charging emission norms successfully.
B. Guide car
The Bidder quoting for guide cars must have successfully designed, engineered, manufactured, supplied, installed and commissioned at least 2 nos. of multi spot guide car with successful door & door frame cleaners with pollution control measures for a coke oven battery in the last 7 years, out of
We have successfully designed, engineered manufactured and installed Charging Cars and Electric Loco in various steel plants and the same are in successful operation.
List and certificates for Charging Car and Electric Loco is enclosed.
Reference List, Contract copies and performance certificate is enclosed for Charging Car, & Loco
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which one such machine must be in continuous successful operation for a minimum period of one (1) year preceding 02.03.2010, with proof of successful operation of cleaners.
C. Electric Loco
Bidder should possess design and engineering capability and should have successfully carried out manufacturing, supply, erection and commissioning of at least 2 nos. of electric loco for a coke oven battery in the last 7 years. One such Loco shall be in continuous successful operation for a minimum period of one (1) year
2. Financial Criteria
2.1 Average annual turnover of the Bidder shall not be less than Rs. 8,00,00,000/- (Indian Rupees eight crore) during last 3 (three) consecutive financial year ending 31.03.2009.
In case of Loco, average annual turnover of the Bidder shall not be less than Rs. 3,00,00,000/- (Indian Rupees Three Crore) during last 3 (three) years ending 31.03.2009
Yes Balance sheet enclosed.
Bidder shall submit Audited Annual financial reports for last 3 (three) consecutive financial years in support of their meeting above stipulated financial requirements. The bidder shall submit a certificate from Chartered Accountant showing turnover for the last 3 (three) consecutive financial years duly notarized in support of their financial requirements.
Yes Balance Sheet and Turnover certificate enclosed.
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STEEL AUTHORITY OF INDIA LIMITED
DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)
Oven machinesPackage no. COB2/EXPN/SE-43A
11.4.2 COMMERCIAL BID
1.0 COMMERCIAL CONDITIONS
1.1 Scope of Supply
The scope will comprise Design, Engineering, Manufacture, Check assembly & testing at works, painting, packing, supply, assembly & erection, testing, trial run, commissioning, demonstration of Performance Guarantee and post commissioning maintenance for 12 months of 2 Nos. Charging Cars and 2 Nos. Electric Loco for Quenching Cars for Coke Oven Battery No. 2 of Durgapur Steel Plant as detailed in our technical offer.
1.2 Terms of Delivery for SuppliesThe specified prices for engineering, equipment and document by the contractor for supply part are based on terms of supply F.O.R. DSP, DURGAPUR site including comprehensive insurance, covering marine, transit, storage and erection, excise duty, sales tax and all other taxes, duties, levies etc. and charges for packing, forwarding and freight upto the site.
1.3 TIME OF DELIVERY
1.3.1 For Supplies, Erection, Testing and Commissioning
Total job as mentioned in detailed scope of supply will be completed within 78 weeks from the date of signing of the contract.
1.3.2 For spares
Two years spares will be supplied before commissioning provided the order for spares is released within 3 months from the date of issue of LOI for the main equipment.
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1.4 TERMS OF PAYMENTWe accept payment terms as per Appendix – 3 of Standard Bidding documents.
1.5 TAXES AND DUTIES
1.5.1 For Indian supplies taxes, duties and other Govt. levies have been included in our price at the prevailing rates.
Any statutory variation of taxes and duties will be to Purchaser’s account.
1.6 INSURANCE
1.6.1 The contractor shall arrange transit insurance for supplies upto the Employer’s plant (F.O.R. DURGAPUR Site)
1.6.2 The contractor shall provide insurance for his personnel working at Employer’s premises. Such insurance shall cover accident, illness, disability and death.
1.6.3 The contractor shall provide for his personnel working at Employer’s premises Civil Responsibility Insurance (Third Party Risk).
1.7 LIQUIDATED DAMAGES
Agreed as per SBD
1.8 PRICE VARIATION
As per Appendix – 4 of SBD
1.9 EFFECTIVE DATE OF THE CONTRACT
Effective date of the contract shall be the date of signing the contract.
1.10 OTHER CONDITIONS
Other terms and conditions if any shall be discussed and agreed in the forthcoming negotiations.
1.11 VALIDITY
Our offer shall remain valid for a period of 90 days from the due date of opening and thereafter subject to our written confirmation.
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STEEL AUTHORITY OF INDIA LIMITED
DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)
Oven machinesPackage no. COB2/EXPN/SE-43A
11.4.3 TECHNICAL BID
TECHNICAL DESCRIPTION OF THE OFFER
1.1 COAL CHARGING CAR 1.1.1 General:
The Coal charging Car will be of single spot operation of Lid Handling (Lifting/replacing), Telescope, Screw Feeder Charging and A.P.Cleaning. Hopper weighing by load cells, gooseneck cleaner & lid lutting.
The car will be portal type with an elevated main frame structure allowing a clear passage underneath the structure for persons working on the oven top. The operator’s cabin will be under hung.
It consists of a robust steel frame equipped for mounting of the charging hoppers, screw feeders, coal charging telescopes, charging hole lid removers and all necessary housing and cabins. Access to all equipment and maintenance / operating points is assured by means of stairways, platforms and walkways.
The machine is designed is such a way that a fairly comprehensive trial assembly can be carried out. This makes final assembly, after completion of function check, dismantling and transport to site much easier.
1.1.2 Battery Limits, cc track rails, power collectors on trolley wires Clearance: (As per battery cross section Drg. No. MEC/W/9172/A/10/C1/00001
1.1.3 Basis of Design data:
Operating System : 5 –2 series
Moisture content of coal : 10 % (Max)
Bulk density of coal blend : 0.78 t/cu.m
Gauge of charging car track : 6502mm
Type of rail : 52 kg/m
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Max. allowable load on one traveling wheel. : 15 t
1.1.4 Car Parameters:
Bogies centres - 6050 mm ( Approx.)
Overall dimension - 10058 x 10500 mm (Approx.)
No. of charging hoppers - 4
Total capacity of hoppers : 28.5 m3
Max. wheel load : 15t (appox.)
Coal discharge - By Screw Feeder
Actuation of lid lifting units - By hydraulic cylinders
Actuation of lids - Magnetic with reciprocation.
Actuation of telescopes - Operated by hydraulic cylinders.
Diameter of travel wheels - 630 mm
Travel bogies - 4-2 wheel bogies each with one wheel motor driven.
Travel drive motors - 4 nos.
Travel speed - 80 m/min.
Hydraulic Power :
Hydraulic Fluid - Water glycol fire resistant fluid.
Operating pressure - 100 bar
Test Pressure - 150 bar
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11.5 PRICE BID
STEEL AUTHORITY OF INDIA LIMITED
DURGAPUR STEEL PLANT (DSP)SPECIAL CONDITIONS OF CONTRACT(SCC)
Oven machinesPackage no. COB2/EXPN/SE-43A
PACKAGE OVEN MACHINE (PKG.NO. COB2/EXP/SE-43 RT) - CHARGING CAR
SUMMARY PRICE SCHEDULE
Sl. No Description Amount in Rs Lakhs
1. Design and Engineering (Table 2B) Included in Table 3B
2. FOR / FOT project site price of plant & equipment (indigenous supplies),excluding spares, incl. all duties, taxes & levies etc. (Table - 3B)
xx
3. Erection & commissioning charges (Table - 4B) xx
4. Total price for the package excl. two years' spares (1 to 3).
xx
5. CENVAT Credit Available xx
6. VAT Credit Available xx
7. Total Price for the package Net of CENVAT & VAT credit (4-5-6)
xx
8. Two Years operational spares (Table 5B) xx
11.6 CONTRACT AGREEMENT
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THIS CONTRACT NO. DGM/PCC/TK/2008/……………made this ______________ Day of April Two Thousand Eight (2008) at Bhilai Steel Plant, Bhilai (CG).
BETWEEN
STEEL AUTHORITY OF INDIA LIMITED, a Company incorporated under the Companies Act, 1956 and having its registered office at Ispat Bhavan, Lodi Road, New Delhi 110 003, India, having one of its plants Bhilai Steel Plant at Bhilai, Distt. Durg, Chhattishgarh (hereinafter referred to as the "Employer") which term or expression unless excluded by or repugnant to the context or the meaning thereof, shall be deemed to include its successors and permitted assigns, OF THE ONE PART,
AND
Consortium Comprising of
M/s Bhilai Engineering Corporation Limited, a Company incorporated under the Companies Act 1956 and having its Registered Office at Post Box No.31, Industrial Area, Hathkhoj. Bhilai-490001 (hereinafter referred to as “BEC - Consortium Leader and Contractor / Supplier"), which term or expression unless excluded by or repugnant to the context or meaning thereof, shall be deemed to include its successors and permitted assigns, and
M/s Design Bureau of Coke Chemical Machine Building OJSC “KB Kokosokhimmash” Company organised and existing under the laws of Ukraine and having its Registered Office at 10, Blvd., Pushkin, Slavyansk, Donetsk region, 84112 Ukraine (hereinafter referred to as “KBK - Consortium Member and Contractor” / Supplier"), which term or expression unless excluded by or repugnant to the context or meaning thereof, shall be deemed to include its successors and permitted assigns, OF
THE SECOND PART
AND WHEREAS
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a) The Employer has decided to set-up Installation of OVEN MACHINES & LAND
BASED PUSHING EMISSION CONTROL SYSTEM FOR COKE OVEN BATTERY
NO. 11 .at Bhilai Steel Plant, Bhilai (hereinafter referred to as the "Facilities "), and
b) The Contractor has declared that the Contractor has valuable and specialized
knowledge and expertise for design & engineering, civil engineering work,
dismantling of buildings, structures & equipment, fabrication & supply of steel
structures, manufacture & supply of plant and equipment, manufacture & supply of