SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN MANAGEMENT

MARKETING STRATEGY OF SECONDARY PRODUCTS AND BY-PRODUCTS

IN

BOKARO STEEL PLANT

(A unit of SAIL)

SUBMITTED BY : MUKESH KUMAR SINGH Enroll No. A30101910067 INDUSTRY GUIDE :

Mr. C.R. Ravindranathan Manager (Marketing) Bokaro Steel Plant, Bokaro

FACULTY GUIDE :
Ms. Aparajita D. Gupta Amist Sr. Lecturer & Placement Coordinator AGBS, NOIDA.

AMITY GLOBAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY UTTAR PRADESH

CERTIFICATE OF APPROVAL
This is to certify that the project report entitled Marketing Strategy of Secondary Products and By-Products is submitted to the Marketing

department, Bokaro Steel Plant, Bokaro by Mr. Mukesh Kumar Singh in the partial fulfillment of the requirement of MBA program at Amity Global Business School, Noida. This study is a bonafide research work carried out for a period of 8 weeks from 19-06-2011 to 18-08-2011. His work in the project has been satisfactory.

Mr. C.R. Ravindranathan Manager (Marketing) Bokaro Steel Plant, Bokaro

BOKARO STEEL PLANT

BOKARO STEEL CITY, JHARKHAND-827001 TEL : +91 - 06542- 240300/30 FAX : +91- 06542 - 240227

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Mukesh Kumar Singh, a student of Amity Global Business School, Noida, undertook a project on Marketing Strategy of Secondary Products and By-Products at Bokaro Steel Plant, Bokaro from 19th June, 2011 to 18th June, 2011. Mr. Mukesh Kumar Singh has successfully completed the project under the guidance of Mr. C.R. Ravindranathan. By performance we found the student to be a good learner who has shown initiative and comprehension to grasp the departmental activities. The student is blessed with a cheerful disposition and good interaction skills. We wish all success in his future endeavors.

Mr. C.R. Ravindranathan Manager (Marketing) Bokaro Steel Plant, Bokaro

CERTIFICATE OF ORIGIN
This is to certify that Mr. Mukesh Kumar Singh, a student of Post Graduate Degree in Management, Amity Global Business School, Noida has worked in the Bokaro Steel Plant, Bokaro under the able guidance and supervision of Mr. C.R. Ravindranathan, Manager(Marketing) The period for which he was on training was for eight weeks, starting from 19TH JUNE 2011 to 18TH JUNE 2011. This Summer Internship report has the requisite standard for the partial fulfillment of the Post Graduate Degree in Global Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature (Ms. Aparajita Das Gupta Amist) Faculty Guide

Signature (Mukesh Kumar Singh) Student

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. C.R. Ravindranathan, Manager (Marketing), at Bokaro Steel Plant, Bokaro, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of Bokaro Steel Plant, Bokaro for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Ms. Aparajita Das Gupta Amist of my institute, for her continued guidance and invaluable encouragement.

Signature (Mukesh Kumar Singh) Enroll # A30101910067

PREFACE

As part of course requirements of MBA programme, I was asked to undergo eight weeks Summer training for getting a practical exposure in industry. I got opportunity to undergo my Summer training in Bokaro steel plant namely Steel Authority of India Limited, Bokaro. The title of my Summer training report is Marketing Strategy of Secondary products & By-Products under the able guidance of my industry mentor Mr. C.R. Ravindranathan, Jr. Manager (Marketing) and with unconditional support of my faculty guide Ms. Aparajita Das Gupta Amist, Placement Coordinator, AGBS Noida.

TABLE OF CONTENTS
Chapter No. Ch. # 1 Ch. # 2 : Subject EXECUTIVE SUMMARY PROJECT OVERVIEW A brief outline of outline of Bokaro Steel Plant Scope of the study Objective of the study Methodology Brief Geographical information of Bokaro Steel scenario of the world Steel scenario of India Ch. # 3 : COMPANY PROFILE SAIL-An overview Ownership & Management Future plans Bokaro Steel Plant-An Introduction Integrated Steel Plants Major Units of SAIL Organizational structure of SAIL Ch. # 4 : PROJECT FRAMEWORK SSD at Glance Production Planning & Control Bokaro Steel Plant Product Basket Competitors of Bokaro Steel Plant Customers List Bankers 46 54 56 58 59 60 25 27 28 29 41 43 44 Page No. 10 11 13 15 16 17 20 21 22

Ch. # 5 :

STRATEGIC ROLE OF THE MARKETING DEPARTMENT Introduction of Marketing Department Organization Chart of Marketing Department Types of Product Marketing of Secondary Products & By-Products Pricing policy & Sales procedure 65 67 70 72 62

Ch. # 6 :

SALES & DISTRIBUTION Mode of Sale Procedure of Sale through E-Auction Flow chart of Sale through E-Auction Procedure of sale through fixed price Flow chart of sale through fixed price Distribution channels Advertising policy Procedure of Refund of Claim Flow chart of online refund of claim 88 89 81 83 85 79 80 75 78

Ch. # 7 :

DATA ANALYSIS Data Analysis Production of by-products in Bokaro Steel Plant 91 94

Ch. # 8 :

SWOT ANALYSIS SWOT Analysis of B.S.L. 98

Ch. # 9 :

FINDINGS & RECOMMENDATIONS Findings Recommendations 101 102

Ch. # 10 : Ch. # 11 :

CONCLUSION Conclusion REFERENCES & BIBLIOGRAPHY References & Webliography 107 105

CHAPTER 1

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
The present study was undertaken to analyze the Marketing Strategy of Secondary Products & By-products of Bokaro Steel Plant. Marketing department is the newest genesis from the SAIL and attempts to reach there where no corporate has ever ventured so far. The survey was conducted in Marketing Department and Sales Co-ordination department. I was to find how auctions, fixed price and tenders are used for marketing purpose of BSL. Various steps involved are as follows. To know about the E-auctions of

marketing department, how they use this technique and 60% marketing and selling is done through auction and rest will be taken through fixed price selling and tenders. Data were mainly collected by marketing department of BSL. BSL is the largest Steel manufacturing sector of India and is top ranked in the global fortune 500 companies. During my training I had to find out mode of sale of secondary products & Byproducts of BSL. Primary products are sold by CMO, Delhi. I passed through various stages of problems and difficulties to accomplish the task of project work but it was a privilege for me to take this opportunity a challenging work to study and observe "Marketing Strategy of Secondary products & By-Products in Bokaro Steel Plant, Bokaro which is a unit of SAIL.

Bokaro Steel Plant recognizes that leadership is essential for survival in competition environment. Customer's satisfaction like quality is a journey and not a destination. It is essential that everyone in the company have a clear understanding of what customer satisfaction means if the plant aim to achieve leadership in customer satisfaction. While improved customer satisfaction is necessary for ensuring prosperity of the company must also be recognized that ability of the company to satisfy its customers would depend on its ability to continuously improve its profit and growth. The basic objective behind the study carried out by me is to study the major contribution of Secondary product & By- Product to total sale, which is predetermining for the success of the company. By selling the Secondary product & By-Product in local market company is earning profit. It is also creating a employment in small scale industries and developing the economy.

CHAPTER 2

PROJECT OVERVIEW

A BRIEF OUTLINE OF BOKARO STEEL PLANT

With a capacity of 4 million tones, Bokaro is the fourth steel plant in public sector in the country. The site for the site for the steel works is surrounded by River Damodar on the north, Chas-

Ramgrh road on the south, Garga river on the east & Muri Chandrapura railway link on the west, Bokaro is coal based plant. Bokaro Steel Plant (BSL)is situated in the coal belt of Eastern India, symbolizes Indias advancement in the design engineering & consultation of steel plant. Indian Engineers and Equipment suppliers have played a major role in its construction making. It is the first indigenous public sector integrated steel plant in India.

HISTORY
During struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister, had a very clear vision about the role of Steel in the development of our country. Although TATA Iron & Steel Company (TISCO) has been establishment in 1907 marking the beginning of Indian Steel Industry followed by Indian Steel Co. (1918), they were too small to meet the development requirements of a big country like ours. Therefore, in the 1st Industrial Policy Resolution of the Govt., soon after independence, Govt. decided to establish Steel Plants in Public Sector. However, work could be started at fast pace only in 1954, when Hindustan Steel Ltd., was formed and three Steel Plants of 1 MT capacity each, were established with provision of further expansion at Bokaro, Rourkela and Durgapur with assistance from USSR, West Germany and U.K. respectively. To improve the functioning of Steel Industry, Govt. decided to form a holding company during 1972, which was named as Steel Authority of India Ltd., (SAIL) and the same was incorporated on January 24, 1973, with an authorized capital of Rs. 2000 crores. SAIL was formed by registration of a company under the companies Act and not by the Act of Parliament. Govt., decided to abandon the holding company concept in 1978 and a bill was presented to the Lok Sabha. Accordingly, SAIL was again recognized in the following manner. Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International Ltd., Bokaro Ispat Ltd., Rourkela Ispat Ltd., Durgapur Mishra Ispat Ltd., wholly owned subsidiaries of SAIL merged into it and started functioning as Units of SAIL.

MECON, HSCL and NMDC become independent Companies and started functioning under Ministry of Steel. However, Kiriburu and Meghatuburu Iron Ore Mines were attached with BSL as their Captive Mines. Bharat Refectories Ltd., also became independent under the Ministry of Steel and refractory units also came under them. Thus, SAIL, at present, is having capacity of 10.9 MT of crude steel through its four integrated Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Two special steel plants at Durgapur and Salem produce a wide range of alloy and special steels. Marketing of the products from these plants is done through a country wide distribution network consisting of a chain of Stock Yards and distributions organize.

SCOPE OF THE STUDY

The study is mainly related to the customers satisfaction towards the secondary product. The study will help making the flexibility of the industry and good environment in the Industry through reducing the disposal arising material. It also helpful to generated to selling the product and satisfies the customer wants. It also helps to reduce pollution in the industry. There are some of the following scopes of the study:I. The present study can be extended to access the present marketing condition of different steel plant. II. The study can be used to design a proper product, price, place, & promotional strategy for the by products of different steel plant. III. From the present study we can know the market share of different by products and accordingly strategy to enhance it. IV. The result of marketing success of different by product can be interpreted to assess the rate of employees satisfaction in that department (Marketing). V. This study can be applied to find out and effective distribution channel to enhance the sale of by product of BSL.

OBJECTIVE OF THE STUDY

Primary Objective :
The objective of study is to formulate a new market strategy for secondary of Bokaro Steel Plant for improvement of marketing process and hence providing maximum customer satisfaction. Marketing is the focal point of all business activities production and purchase has no meaning unless as firm is able to market the goods and services .Marketing is not restricted to selling any kind of goods and services, but marketing starts from when we think of a product. From analyzing the market to producing the product and supplying it to the customer and getting feedback. The whole process is marketing. The whole process of marketing includes product, price, place, promotion and packaging. At last marketing is a social process of satisfying human needs and wants to the maximum possible limit. In this project, and attempt has been made to present, the various aspects of marketing of SAIL. SAIL is one of the Indias largest marketing houses and largest producer of iron & steel products. Regarding Steel Authority of India Limited (SAIL), if SAIL is the biggest steel maker in the country, its central marketing organization (CMO) is Indias largest marketing house, it had spread its wings very from Srinagar in the north to Cochin in the south and Dinapur in the east to Ahmadabad in the west. Here with, a birds eye view of the organization its genesis and growth through decades. CMO briefly the Central Marketing Organization the marketing arm of SAIL, has its headquarter is Kolkata.

Specific Objective:
Every item produced by SAIL pig iron ,semi-finished steel, fertilizers and coal chemicals is distribute by CMO across the length and breath of the land through a network of branch offices, stockyards and customers contact points spread over 10 marketing zones, CMOs responsibilities are not restricted to domestic distribution alone. Exports from SAIL unit too are coordinated by CMO and displayed through dockyards under its aegis. It has 48 dockyards throughout the country. But distribution is one of the many activities of CMO. It acts as a buffer between SAILs operating units and the customers, ensuring product quality on the one hand and iron proving the vital feedback to SAIL unit on market trends, product development and demand parameters on the other. Another important aspect of the services rendered by CMO includes between transports and customer to ensure prompt dispatches of steel materials so that consignment reaches their destination in good condition. Despite the CMO, there is a marketing department in every unit which uses to market its secondary products by their own so the study emphasizes on the marketing department of BSL only.

METHODOLOGY In course of preparing this project report, I feel the need of various information regarding SAIL and in particularly about the Bokaro Steel Plant such as Total no. of employees(category wise), turnover, production, sale/dispatch process of manufacturing, suppliers customers etc. To know all these I collect various details and information from various sources internal as well as external.

SECONDARY DATA

These are that information and datas which are already available in various media. To collect the information about past sales, profit, Financial information, type of product etc. I have to go through with some in house magazines like SAIL Bulletin, Bokaro Darpan, Finance Department declaration about Financial statement, Past sales record etc, as well as some external sources like information published in the economic times, Business world and other news papers and magazines, I also got some information which is mentioned in my project are downloaded from the internet etc.

PRIMARY DATA:
These are that information which are exclusively collected & gathered by me especially for this purpose. For that I use various techniques like personal interview with the executives & employees of the concern development of the plant conduct telephonic request from some of the executives and ex-employee of the plant. To do the survey work I use both indirect and direct questions as well as open ended and close ended questions some information are also provided by the training department of the plant during the course of introduction. After collecting, gathering and analyzing all these information I present them in different manner in my project. OUR FUNCTIONS TO TAKE STOCK OF VARIOUS ITEMS ON REGULAR BASIS. TO TAKE DISPOSAL ACTION AS PER PROCEDURE. TO GATHER MARKET FEEDBACK/INFORMATION. TO REVIEW AND FIX THE PRICES. TO ENSURE SMOOTH EXECUTION OF ORDER. TO SETTLE REFUND CLAIMS. OUR OBJECTIVE

To maximize the revenue from sales of secondary products/by products/idle asset/used &scraped township stores items and other waste products with customer satisfaction. OUR AIM To clear the storage area of arising on regular basis. VISION OF SAIL To be a respected world Class Corporation and the leader in the Indian steel business in quality, productivity, profitability and customer satisfaction.

BRIEF GEOGRAPHICAL INFORMATION OF BOKARO STEEL CITY :LOCATION LATITUDE Along the south bank of Damodar river on Dhanbad-Ranchi highway at a distance of 50 km from Dhanbad and 300 km 23 29

LONGITUDE ALTITUDE RAINFALL TEMPERATURE CLIMATE WIND DIRECTION SOIL COLOUR OF SOIL HILLOCK FOREST GRASSLAND TOTAL LAND AREA (BSL) PLANT GARGA RESERVOIR RAILWAYS GREEN BELT POPULATION SOURCES

86 9 210 (meter) varying from 195m to 224m. Average 157cm Maximum : 195cm Max : 47c Min : 12c Hot & dry, i.e. Tropical South-West to North-East Loamy up to 1 to 2 meters and then sandy Red, yellow and light grey Sarsl pahar (296m high, 5.5 km south of Bokaro) Bandgora (sal forest) About 3-5% of total land 33,045.53 Acres 17,208.01 Acres 3,886.87 Acres (Storage Capacity =17.5 million m) 1,835.94 Acres 1,011.74 Hectares About 3.5 lakhs Water - Garga river & Tenu Canal

STEEL SCENARIO OF THE WORLD:

Iron & steel are being use by men for almost 6000 years, but the modern form of iron & steel industry came into being only during 19th century. This industry has grown very rapidly only after

the Second World War; World production was 2.83 MT in 1900, rose to 159.6 MT by 1943 and 782.8 MT in 1989. The total demand of steel in the world was to be 913 MT in 2007. Worlds 1st Iron works was established in 1646 in USA. In 1984 1st open Hearth Furnace was used in Europe for making steel. In 1906 1st are Furnace was used. In 1950 1st Basic Oxygen Furnace was used. In 1960 Computer was used in steel industry. In 1970 Continuous Casting Process was used for the production of steel and 6% of total steel were produced through this process. Now 66.6% of the worlds raw steel production is through this process. As a result product yield increased from 81% to 95% and reduced its energy consumption by 12.5%. Japan is producing 95.4% of its steel production through this process, the highest in the world. Japan is the largest exporter of steel in the world with 18 MT of finished products. Japan is the 2nd biggest producer of steel in the world with 119.3 MT. the 1st is USSR and 3rd is USA with 82.2 MT. After 1989 the consumption of steel has a declining trend. It was 782.8 MT in 1989, which has comes down to 725.3 MT in 1993. And in 2004 has again a upward trend and its consumption has gone up to 810 MT.

STEEL SCENARIO OF INDIA :

The history of Iron in India is around 3000 years old. 480BC 326BC Xerxes used steel tipped arrows in his army. porous presented 30 Lbs of steel to Alexander.

320AD 380AD 13th century 17th century 1830 1870 1874-75 1890 1907 1911 1912 1915 1918 1923 1924-25 1942 1948

Erection of 16 meter Iron Pillar at Dher, Indore. 8 meter high Iron Pillar near Kutub Minar, Delhi. Iron beam used in the construction of Sun Temple, Konark. Manufacture of cannons, firearms, swords & agricultural items. Suspension bridge of Iron was made on beas river at saugor. Bengal Iron Works was established at Kulti. Coke was used in place of charcoal for the 1st time there. Kulti produces 40,000 T of pig Iron. Tata Iron & Steel Company formed. 1st Blast Furnace was blown in by TISCO. 1st steel ingot was rolled out by TISCO. 1st Ferro-Manganese was produced by TISCO. Indian Iron & Steel Company formed. Mysore Iron & Steel Works started. Tinplate Company of India started production. 1st Rail Mill, Merchant Mil & sheet Mill completed at TISCO. 1st Wheel & Axle plant started operation at TISCO. Plate Sleeper Foundry was commissioned at Mysore Iron & Steel Works for making Railway Sleepers.

21.12.1954

A agreement was made to set-up 0.5MT Steel plant at Rourkela, Orissa in collaboration with Germany.

19.01.1954

Hindustan Steel Limited was formed for constructing & managing three Steel Plant of 1MT each at Rourkela, Durgapur & Bhilai.

1960 1964

Alloy Steel Plant installed at Durgapur with 100,000 T of ingot steel. IISCO Stanton pipe & foundry Ltd formed.

25.01.1965 1972

An agreement was signed with USSR to set-up 1.7 MT Steel Plant at Bokaro.

Government took over IISCO. Steel Authority of India Ltd (SAIL) was formed. IISCO become subsidiary of SAIL.

24.01.1973 31.03.1979 1979

3.0 MT Steel Plant at Visakhapatnam was approved by Government. Salem Steel Plant was inaugurated. Maharashtra Electro smelt Ltd becomes subsidiary of SAIL.

March 82 18.10.1986

Sept.87Modernization of Durgapur Steel Plant was approved. March 88 A expansion plan of Salem Steel Plant was approved.

July 88 Modernization plan of Rourkela Steel Plant was approved. 01.08.89 1991 1991 1994 VISL became subsidiary of SAIL.

Second Sendzemir Mill commissioned at Salem. Continuous Casting was commissioned at Bhilai. Basic Oxygen Furnace was commissioned at Durgapur. Hot Rolled Strip Mill was commissioned at Salem.

03.11.95 1997

1st Ingot was produced through Continuous Casting at Bokaro.

CHAPTER 3
COMPANY PROFILE

COMPANY PROFILE
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 ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structures, railway products, plates, bars and rods,

stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines. SAIL'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 38 branch offices and 47 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 world-wide. 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), Management Training Institute (MTI) and Safety Organization at Ranchi. Our captive mines are under the control of the Raw Materials Division in Calcutta. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Calcutta. Almost all our plants and major units are ISO Certified. JOINT VENTURE SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce.

NTPC SAIL Power Company Pvt. Ltd

Set up in March 2001, this 50:50 joint venture between SAIL and the National Thermal Power Corporation (NTPC) operates and manages the Captive Power Plants-II of the Durgapur and Rourkela Steel Plants which have a combined capacity of 240 MW.

Bokaro Power Supply Company Pvt. Limited This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in

January 2002 is managing the 302-MW power generation and 1880 tonnes per hour steam generation facilities at Bokaro Steel Plant.

Bokaro Electric Supply Company Pvt. Limited

Another SAIL-NTPC joint venture on 50:50 basis formed in March 2002 manages the 74 MW Power Plant-II of Bokaro Steel Plant which has additional capacity of producing 150 tonnes of steam per hour.

UEC SAIL Information Technology Limited

This 40:60 joint venture between SAIL and USX Engineers & Consultants, a subsidiary of the US Steel Corporation, promotes information technology in the steel sector.

Metaljunction.com Private Limited

A joint venture between SAIL and Tata Steel on 50:50 bases, this company promotes ecommerce activities in steel and related areas.

SAIL-Bansal Service Center Pvt. Ltd.

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service centre at Bokaro with the objective of adding value to steel.

North Bengal Dolomite Limited

A joint venture between SAIL and West Bengal Mineral Development Corporation ltd on 50:50 basis was formed for development of Jayanti Dolomite Deposit, Jalpaiguri for supply of Dolomite to DSP and other plants.

Romelt-SAIL (India) Ltd

A joint venture between SAIL, National Mineral Development Corporation (NMDC) and Russian promoters for marketing Romelt Technology developed by Russia for reducing of iron bearing materials, which is carried out with carbon in single stage reactor with the use of oxygen.

OWNERSHIP AND MANAGEMENT

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its "Navratna" status, enjoys significant operational and financial autonomy.

FUTURE PLANS
SAIL has an ambitious plan of increasing hot metal production by its integrated steel plants to around 20 MT by 2011-12. During this period the company will increase its crude steel production by approx. 7 MT, and the proportion of semis in the overall saleable mix will reduce to 4% from the current level of 16%. With an overall investment target amounting to around Rs. 25,000 crore, the company has already initiated measures to attain the milestones in a graded manner. Capital schemes valued at over Rs. 3,000 crore are under various stages of implementation, and schemes of similar amount are likely to be taken up for evaluation and approval in the current year as well. Some of the important projects under implementation include reconstruction of coke oven batteries at Bokaro, Bokaro and Rourkela Steel Plants, modernization and

technological up gradation of BF # 4 of RSP and BF # 7 of BSL, installation of bloom caster and associated facilities at Durgapur Steel Plant, etc. The company has decided to implement ERP (Enterprise Resource Planning) across the organization in a phased manner. Mr. S.K Roongta, Chairman, SAIL, gave credit for the brilliant performance of the company to the teamwork and dedicated efforts of the employees. "Proactive actions taken by the company in the past have paid rich dividends. Emerging as one of the top profit-making companies of the country.

BOKARO STEEL PLANT-AN INTRODUCTION

Bokaro Steel Plant was originally incorporated as a limited company on 29th January 1964. With the formation of the Steel Authority of India Limited (SAIL) on 24 January 1973, it became a wholly owned subsidiary of SAIL and on 1st May 1978 it was eventually merged with SAIL through the Public Sector Iron & Steel Companies (Restructuring & Miscellany provision) Act 1978. 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 phase of 1.7 MT ingot steel commenced on 2nd October 1972 with the commissioning of the first Blast Furnace and completed on 26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage have already been commissioned. The Plant 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. Bokaro has 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. To keep pace with the latest trends in steel making, the first phase of modernization was sanctioned on 23rd July 1993. The new features in SMS-II include Continuous Casting Machines and Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. The modernization of the Hot Strip Mill saw addition of new features like high pressure de-scalars, work roll bending, hydraulic automatic gauge control, quick work roll change, laminar cooling etc. New walking beam reheating 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. The capacity of the plant has gone up to 4.5 MT of liquid steel post? Modernization.

The Township Bokaro Steel City is located in idyllic surroundings on the southern bank of river Damodar with Garga, one of its tributaries, meandering along the southern and eastern outskirts of the city. On the north, the city is flanked by the high ranges of the Parasnath Hills and on the south; just beyond the river Garga, it is enveloped by the Satanpur Hillocks. The vast rolling topography of the city is interspersed by graded valleys and winding rivulets typical of the Chhotanagpur Plateau. Within two decades of Bokaro Steel coming into existence, the city has blossomed into a regional urban centre of over 8 lakh people from different parts of the country, making the city a Mini Bharat. Bokaro is located on the Gomoh-Chandrapura-Muri railway line. Direct train services to all the four metros are available from Bokaro. It is located centrally between the triangle of the other three major cities of Jharkhand - Ranchi, Jamshedpur and Dhanbad - all of which are well connected by road and railway.

Achievements and Peripheral Development Bokaro Steel is striving to reach the glow and warmth of its furnaces to people living at the periphery of this thriving steel city. All villages and residential settlements within a radius of 20 kilometers are covered under the peripheral development programmes that benefit some 3 lakh persons. In recent years, the stress has been on developing basic and infrastructure facilities like roads, bridges, schools, primary health canters, wells, pumps etc. and renovating the existing facilities. Regular health camps are organized to reach immunization and free medicines to people. Free medicines are also supplied to Asha Dan, a hospital for the lepers, and to government hospitals in the event of natural calamities. Bokaro Steel pitched in with its share in the relief of victims of natural calamities like the Orissa cyclone, Gujarat earthquake and Bihar floods.

Community Care In a uniquely sensitive gesture of social care, Bokaro Steel has adopted children belonging to the primitive Birhor tribe that has a very limited population. These children live under the love and care of Bokaro Steel, getting free board, lodging, dresses and education. They are getting developmental opportunities of the modern world, without having to shun their own cultural moorings. Encouraging-Ancillaries The ancillaries under the Bokaro Industrial Area Development Authority symbolize the spill-over of economic activities due to Bokaro Steel. The Plant aids these industrial units by providing testing facilities, technical support for modernization and up gradation, and preferential procurement orders in their areas of strength that match Bokaro Steel's requirements. To keep them abreast of the prevailing quality assurance standards, Bokaro Steel has been giving

free

consultations

to

these

units

for

developing

their

ISO

9001

QA

Systems.

Bokaro Mahila Samiti Founded in 1964, Bokaro Mahila Samiti is a leading philanthropic organization of the spouses of steel men, giving succor to needy people and creating opportunities for skill enhancement and self-employment. The Samiti runs a number of schools for poor children and for uneducated elderly and a children's library. The training centre and Udyog Kendra with wings for making spices, flour, safety gloves, soap, shawls, apparel and embroidered clothes, provide livelihood to a number of women. Free medical consultation for neonates and their mothers and mobile dispensary play a key role in providing primary healthcare to needy persons. The Samiti organizes aid drives for lepers, victims of natural calamities, children from poor families and other resource-constrained people.

BOKARO STEEL PLANT

Raw Materials & Material Handling Plant The Raw Materials and Material Handling Plant receives blends, stores and supplies different raw materials to Blast Furnace, Sinter Plant and Refractory Materials Plant as per their requirements. It also maintains a buffer stock to take care of any supply interruptions.

Some 9 MT of different raw materials viz. Iron ore fines and lumps, Limestone (BF and SMS grade), Dolomite lumps and chips, hard Coal and Manganese ore are handled here every year. Iron ore and fluxes are sourced from the captive mines of SAIL situated at Kiriburu, Meghahataburu, Bhawanathpur, Tulsidamar and Kuteshwar. Washed coal is supplied from different washeries at Dugda, Kathara, Kargali and Giddi, while raw coal is obtained from Jharia coalfields. Coke Ovens & By-product Plant The Coke Oven Complex at Bokaro converts prime coking coal from Jharia, Dugda and Moonidih and medium coking coal form Kargali, Kathara and Mahuda, blended with imported coal, into high quality coke for the Blast Furnaces, recovering valuable by-products like Anthracene Oil, Benzene, Toluene, Xylene, Light Solvent Naphtha, Ammonium Sulphate and Extra-hard Pitch in the process. Bokaro is situated in the prime coal belt of the country. The Coke Oven battery has 8 batteries with 69 ovens each, maintained meticulously in terms of fugitive emission control, use of phenolic water and other pollution control measures.

Blast Furnaces

Bokaro has five 2000-cubic meter Blast Furnaces that produce molten iron - Hot Metal - for steel making. Bell-less Top Charging, modernized double Cast Houses, Coal Dust Injection and Cast House Slag Granulation technologies have been deployed in the furnaces. The process of ironmaking is automated, using PLC Charging System and Computer Controlled Supervision System. The wastes products like Blast Furnace slag and gas are either used directly within plant or processed for recycling / re-use. Steel Melting Shops Hot Metal from the Blast Furnaces is converted into steel by blowing 99.5% pure Oxygen through it in the LD converter. Suitable alloying elements are added to produce different grades of steel. Bokaro has two Steel Melting Shops - SMS-I and SMS-II. SMS-I has 5 LD converters of 130T capacity each. It is capable of producing Rimming steel through the ingot route. SMS-II has 2 LD converters, each of 300 T capacity, with suppressed combustion system and Continuous Casting facility. It produces various Killed and Semi-Killed steels. Continuous-Casting-Shop The Continuous Casting Shop has two double-strand slab casting machines, producing high quality slabs of width ranging from 950 mm to 1850 mm. CCS has a Ladle Furnace and a Ladle Rinsing Station for secondary refining of the steel. The Ladle Furnace is used for homogenizing the chemistry and temperature. The concast machines have straight moulds, unique in the country, to produce internally clean slabs. Argon injection in the shroud and tundish nozzle prevent re-oxidation and nitrogen pick-up, maintaining steel quality. The eddy current based automatic mould level control, unique in the country, gives better surface quality. The air mist cooling and continuous straightening facilities keep the slabs free from internal defects like cracks. The casters are fully automated with dynamic cooling, on-line slab cutting, de-burring and customized marking. The shop is equipped with advanced Level-3 automation and control systems for scheduling, monitoring and process optimization.

CCS produces steel of Drawing, Deep Drawing, Extra Deep Drawing, Boiler and Tin Plate quality. It also produces low alloy steels like LPG, WTCR, SAILCOR and API Grade.

Slabbing Mill Slabbing Mill transforms ingots into slabs by rolling them in its 1250 mm Universal Four-High Mill. The rolling capacity of the Mill is 4 MT per annum. The shop has Hot and Cold Scarfing Machines and 2800 T Shearing Machine. Controlled heating in Soaking Pits, close dimensional accuracy during rolling and hot and cold scarfing help produce defect-free slabs.

Hot Strip Mill Slabs from CCS and Slabbing Mill are processed in the state-of-the-art Hot Strip Mill. The fully automatic Mill with an annual capacity of 3.363 million tonnes has a wide range of products thickness varying from 1.2 mm to 20 mm and width from 750 mm to 1850 mm. The mill is equipped with state-of-the-art automation & controls, using advanced systems for process optimization with on-line real time computer control, PLCs & technological control systems. Walking Beam Reheating Furnaces provide uniform heating with reduction in heat losses, ensuring consistency in thickness throughout the length. High-pressure De-scaling System helps eliminate rolled-in scale. Edgers in the roughing group maintain width within close tolerance. The roughing group has a roughing train of a Vertical Scale Breaker, one 2-high Roughing Stand and four 4-high Universal Roughing Stands. The finishing group consists of a Flying Shear, Finishing Scale Breaker and seven 4-high Finishing Stands. Hydraulic Automatic Gauge Control system in the finishing stands ensures close thickness tolerance. The Work Roll Bending System ensures improved strip crown and flatness. The rolling speed at the last finishing stand is between 7.5-17.5 meters per second. The Laminar Cooling System is a unique feature to control coiling temperature over a wide range within close tolerance. The Hydraulic Coilers maintain perfect coil shape with On-line Strapping system. On-line Robotic Marking on the coil helps in tracking its identity.

Hot Rolled Coil Finishing All the Hot Rolled coils from the Hot Strip Mill are received in HRCF for further distribution or dispatch. HR Coils rolled against direct shipment orders are sheared and finished to customerrequired sizes and dispatched to customers. The material is supplied as per Indian specifications and many international/ foreign specifications. The shop has two shearing lines with capacities of 6,45,000 Tonnes/ year and 4,75,000 Tonnes/ year respectively.

Cold Rolling Mill The Cold Rolling Mill at Bokaro uses state-of-the-art technology to produce high quality sheet gauge material, Tin Mill Black Plate and Galvanized Products. Cold rolling is done to produce thinner gauge strips of very smooth and dense finish, with better mechanical properties than hot rolling strips. Rolling is done well below re-crystallization temperature without any prior heating of the material. The products of CRM are used for deep drawing purposes, automobile bodies, steel furniture, drums and barrels, railway coaches, other bending and shaping jobs and coated steels. The CRM complex comprises of two Pickling Lines (including a high speed Hydrochloric Acid Pickling Line with re-generation facilities), two Tandem Mills, an Electrolytic Cleaning Line, a Continuous Annealing Line, Bell Annealing Furnaces, two Skin-Pass Mills, a Double Cold Reduction Mill (DCR), and Shearing Lines, Slitting Lines and a packaging and dispatch section. The 5-stand Tandem Mill is capable of rolling sheet gauges up to 0.15 mm thickness. It has sophisticated Hydraulic Automatic Gauge Control, computerized mill regulation and optimization control. Hot Dip Galvanizing Complex The Hot Dip Galvanizing Complex integrated with the CRM produces zinc-coated Cold Rolled strips resistant to atmospheric, liquid and soil corrosion. The Continuous Coil Corrugation Line in the HDGC produces corrugated sheets and the Galvanized Sheet Shearing Line produces galvanized plain sheets for a variety of applications. The first shop of Bokaro Steel to get the

ISO-9001 certification way back in 1994, this complex has maintained a high-standard of coating quality and its SAILJYOTI branded products enjoy a loyal market. Services - a valuable support network The service departments like Traffic, Oxygen Plant, Water Management and Energy Management provide invaluable support to this gigantic plant. BSL has a vast networked of railway tracks and over 40 diesel locos to smoothly run its operations. The Oxygen Plant provides Oxygen, Nitrogen and Argon for processes like steelmaking and annealing. Water Management looks after the huge water requirements of the plant and the township, providing different grades of water and taking care of recycling needs. Energy Management juggles the supply and demand of by-product gases and their demand as process fuel. Maintenance-Departments Bokaro has centralized maintenance departments for large-scale electrical and mechanical maintenance, in addition to shop-based maintenance wings for running repairs and maintenance. These facilities are capable of executing massive capital repairs, supported by the fabrication facilities of the auxiliary shops. Auxiliary-Shops To meet its needs for maintenance and repairs, Bokaro has a cluster of engineering shops such as Machine Shop, Forge Shop, Structural Shop, Steel Foundry, Ingot Mould Foundry, Cast Iron and Non-Ferrous Foundry, Electrical Repair Shop and Power Facilities Repair Shop in addition to shop-specific Area Repair Shops. Most of the repairs and maintenance requirements of the plant are met in-house. The auxiliary shops and maintenance wings of Bokaro Steel, aided by in-house design teams, have executed a number of highly sophisticated procurement-substitution, productivity enhancement and quality improvement jobs, saving revenues and enhancing equipment availability.

The expertise and operational scale of these departments, along with the service departments, makes Bokaro a truly integrated plant, housing many virtual enterprises within Bokaro Steel.

CORE VALUES OF SAIL

Customer Satisfaction Concern for People Consistent Profitability Commitment of Excellence Steel 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 ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, organization sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at four integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Companys iron ore, limestone and dolomite mines. SAILs wide range 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 SAILs own Central Marketing Organization (CMO) and the International Trade Division. CMO encompasses a wide network of 38 branch offices and 47 stockyards located in major cities and towns throughout India. With technical and managerial expertise and know-how in steel making gained over four decades, SAILs Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide.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), Management Training Institute (MTI) and Safety Organization at Ranchi. Our captive mines are under the control of the Raw Materials Division in Calcutta. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Calcutta. Almost all our plants and major units are ISO Certified. WHO OWNS SAIL SAIL is a public sector undertaking of the Government of India which holds 85.82% of equity. Other major shareholders are financial institutions with 7.57% stake and individuals with 3.68% stake. For complete details see Shareholding pattern.

THE NEW MILLENIUM SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic as well as the Export markets and a large pool of technical and professional expertise. Having achieved the initial goal of laying the foundation for the industrial development of the country. SAIL took up the new challenge of facing the era of liberalized economy and the emerging competitive scenario in the steel market. On the eve of entering the new millennium, SAIL launched its Financial and Business restructuring program. The strategy for the company is to emerge as the lowest cost producer in the global steel market with its continuous upgrading of a technology and skill manpower. SAIL is moving up steadily in its competitiveness in the global market. It has the potential to utilize the opportunities and meet the needs of demanding customers. UNITS: Central Marketing Organization (CMO), Kolkata.

 R&D center for Iron and Steel, Ranchi. Center for Engineering & Technology, Ranchi. Raw Material Division, Kolkata. SAIL Consultancy Division, Delhi.
Environment Management Division, Kolkata.

Central Coal Supply Organization, Dhanbad.

Central Growth Work in Kulti, West Bengal.

MARKETING STRATEGY OF SAIL : Qualitative improvements in service besides the products. Marketing channel optimization to take advantage of logistic. Demand for small lots and in remote area. THE SEVEN Cs OF SAIL: Consistent Quality. Committed Delivery. Customized Product Mix. Contemporary Products. Competitive Price. Complaint Settlement. Culture of Customer Service.

GROWTH OF STEEL INDUSTRY IN INDIA:Formation of Hindustan Steel Ltd. Formation of SAIL Production Started at BSL Production Started at RSP Production Started at DSP Production Started at BSL Production Started at Salem Steel plant 19th Jan 1954 24th Jan 1973 4th Feb 1959 3rd Dec 1958 18th Dec 1959 29th Jan1964 March 1982

SAIL TODAY SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise. The total turnover of the company was an all-time high of Rs. 39,188.66 crore during 2006-07, a growth of 21 per cent as compared to 2005-06.

INTEGRATED STEEL PLANTS BOKARO STEEL PLANT

Indias largest flat steel producer in the public sector, Bokaro Steel Plant (BSL) was designed to produce flat products like Hot Rolled Coils/Plates/Sheets, Cold Rolled Coils/Sheets, Tin Mill Black Plates and Galvanized Plain/Corrugated Sheets (GP/GC). Bokaros world class hot rolled products enjoy excellent acceptance in the international market. With a saleable steel production capacity of 4.5 millions tones, the plant has been modernized with continuous casting facilities and has been operating above rated capacity for the last two years. It is also equipped with a state of- the-art Hot strip Mill that produce quality steels of international standards. A range of special steel products like DMR 249A, E- 460/500/550, IS8500 Fe540B, SAILCOR, SAILPROP, SAILMEDSi, SAILRIM, API grade steel, HRNO, SAILMA,WTCR,BSL-46 for auto sector etc., have been introduced after modernization. The plants Steel melting shop, continious casting shop, slabbing Mill, Hot strip Mill, Hot Rolled Coil Finishing and Cold Rolling Mill complex are accredited to ISO9001:2000 QMS standards. The coke and iron zone will also be brought under the fold of the ISO system before the end of this financial year. BHILAI STEEL PLANT Five-time winner of the Prime Ministers Trophy for Best Integrated Steel Plant in the country. Bhilai Steel Plant (BSP) is a major producer of rails, heavy and wide (up to 3600 mm ) steel plates as well as structurals. With an annual production capacity of 3.153 MT of saleable steel, the plant also specializes in other items such as wire rods and merchants products, including TMT bars and rods branded SAIL-TMT. Facilities for production of long rails have been installed at the plants Rail & Structurals Mill with capabilities enhanced to produce rails in rolled lengths of 80 meter and welded panels up to 260 meters. Since BSP is accredited with ISO9001:2000 Quality Management System standards, all saleable products of the plant come under the ISO umbrella. BSLs Plate Mill, Dalli Mechanized Mines, Rail Mill, Steel Melting Shop 1, Wire Rod Mill and Merchant Mill have, in addition, received ISO14001:1996 certification for their Environment Management Systems. DURGAPUR STEEL PLANT

Durgapur steel plant (DSP) with a saleable steel capacity of 1.586 million tones produces medium structural, merchant products, skelp and continuously cast billets. Its extra high strength thermo mechanically treated Bars, branded sales TMT, have proven market acceptability, DSP is also a major producer of railway producer like forged wheels and axels. The modernized plant is equipped with state of the art of the technology for quality steel making. DSPs primary areas comprising Raw Materials Handling Plant, Sinter Plant, Coke Oven & Coal Chemicals, Blast Furnaces & Steel Melting Shop and entire mills zone consisting of Blooming and Billet Mills, Merchant Mills, Skelp Mills, Wheel & Axle Plant and various other facilities are covered under ISO9001:2000 quality assurance certification. ROURKELA STEEL PLANT Indias first integrated steel plant in the public sector, Rourkela Steel Plant (RSP) is a major producer of diversified range of sophisticated steel products, including plate mill plate, HR Plate/Coils, CR Sheets/Coils, Galvanized Plain/Corrugated Sheets/Coils, Pipes & Spiral Weld Pipes, Electrolytic Tinplates and Silicon Steel Sheets. With a saleable steel production capacity of 1.671 million tones, RSP was the first plant in India to incorporate LD technology of steel making. It is the first steel plant in the SAIL family to produce 100% of steel through the cost effective and quality centered continuous casting route. RSP is also the only plant in SAIL to produce silicon steel for the power sector, high quality pipes for the oil & gas sector and tinplates for the packaging industry. Almost all major units of the plant are covered under the ISO9001:2000 certification with silicon steel mill and sinter plant-II being awarded ISO14001:1996 for Environment Management. The plants Plate Mill is also being brought under ISO14001:1996.

MAJOR UNITS OF SAIL

STEEL PLANTS 1. Bokaro Steel Plant (BSL) in Jharkhand

2. Durgapur Steel Plant (DSP) in West Bengal 3. Rourkela Steel Plant (RSP) in Orissa 4. Bhilai Steel Plant (BSP) in Chhattisgarh SPECIAL STEEL PLANTS 1. Alloy Steel Plant (ASP) in West Bengal 2. Salem Steel Plant (SSP) in Tamil Nadu 3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka SUBSIDIARIES 1. Indian Iron & Steel Company Limited (IISCO) in West Bengal 2. Maharashtra Electrosmelt Limited (MEL) in Maharashtra OTHER UNITS Raw Material Division (RMD) at Kolkata, West Bengal
Central Marketing Organization (CMO) at Kolkata, West Bengal

SAIL Consultancy Division (SAILCON) at New Delhi Centre for Engineering & Technology (CET) at Ranchi, Jharkhand Management Training Institute (MTI) at Ranchi, Jharkhand Central Power Training Institute (CPTI) at Rourkela, Orissa
SAIL Safety Organization (SSO) at Ranchi, Jharkhand

Environment Management Division (EMD) at Kolkata, West Bangal

Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand

ORGANISATIONAL STRUCTURE OF SAIL

CHAIRMAN

DIRECTOR (TECH)

MANAGING DIRECTOR, BSL

DIRECTOR PERSONAL ED (TECH & DIRECTOR(CIG) LEGAL DIR CHIEF VIGILANCE EXE. DIRRCTOR EXE. DIR. EXE. DIRECTOR EXE. DIR. FINANCE (IA) SERVICES) OFFICER (OPERATIONS) (CP) (PROJECTS) (CMMG) MANAGING DIRECTOR, BSL MANAGING DIRECTOR, EXE. DIRECTOR,ASPSSP MANAGING DIRECTOR, EXE. DIRECTOR, RSP DIRECTOR VISL DSP

CHAPTER 4
PROJECT FRAMEWORK

SCRAP AND SALVAGE DEPARTMENT (SSD)

1. FUNCTION OF THE DEPARTMENT : Scrap can be defined as something which has been rejected for one purpose but otherwise usable for another purpose. The aim of Scrap and Salvage Department (SSD) is to process the Ferrous reject of various shops, i.e. Iron and Steel scraps so as to turn this into useful and essential raw-material for charging into L.D Converters of our plant, and also for sale to outside agencies. Thus SSD imparts economy to the plant by salvaging the intrinsic value of the scrap which otherwise would have been a mere waste. 2. VARIOUS SECTIONS AND THEIR BRIEF ACTIVITIES:

The function of SSD is three-fold i. ii. iii. Receipt Processing Dispatches of scraps

The scraps are received from all over the shops and after necessary inspection these are diverted to respective processing units of Scrap and Salvage Department. Processing of scrap includes flame cutting, baling, bursting and breaking including salvation of sticker ingots and slag cups. These processes of preparation of scrap are carried out in different shops depending upon the type, size and shape of the scrap. The dispatch includes sending the salvaged Rollable ingots to ingot yard, sticker released slag pots either to Blast Furnace of Steel Melting Shop, dispatch of processed scraps and bales to SMS and sale to outside agencies. The processing of scrap comprise of the following units: a) Flame Cutting Shop No.1 and 2 and Baling Press b) Skull Breaker Shop No. 1 and 2 c) Bursting Yard

3. BRIEF DESCRIPTION OF SCRAP PROCESSING UNITS : (a) Flame Cutting and Scrap Baling unit, and Flame Cutting Shop No.2 FCI shop is equipped with one Baling Press & five overhead magnet cranes of capacity 15 tonne each. The shop stores bailable material as well as manufactured Bales. It has space to process scrap this lancing is at the eastern end of shop. The baling of scrap is done with all sorts of light scrap having thickness not more than 8mm to get compact bales so as to charge these L.D Converter. The bundling section is equipped with 1600 T balling press, the main specification which is shown as:

Sl. Index

Name of parameter

Unit of measurement

1. Working Liquid Oil 2. Working liquid pressure Kg/Cm2 200 3. Bale section mm 710x1000 4. The maximum mm 2000 5. Bale weight tonne 2.0 6. Productivity per hours bales 10 7. Thickness of material mm up to 8 mm 8. Total capacity of electric motor kW 750 9. Dimension of pressing chamber Length mm 3500 Width mm 2800 Depth mm 2500 The materials used for bundling are shearing from HRCF/CRCFR, cut sheet from HRM/CRM, fins from pit side of SMS, light metal structural like angles and channels and other production and civil scrap having thickness up to 12mm.In the shop there is provision for magnet cranes of 15 T lifting capacity and 2 magnet grab cranes of 15+15 T capacity. The capacity of Flame Cutting Shop No.2 is 295,000 T of scrap per year. The preparation of scrap is done by the same methods as in Flame Cutting Shop No.1.This shop is located in a one bay building of 30 meters width and 156 meter length. Two through railway track is laid in the building for supplying and dispatch of the scrap. There is provision for 3 magnet cranes of 15 T capacities. This shop is presently storing materials for external sale.

Skull Breaking Shop No. 1 & 2

Each skull breaker is designed for crushing of steel scrap and iron scrap. Skull breaker 1 is an open two storied crane gantry of 24 meter width and 96 meter length. The height of the first storey of the gantry up to the head of the crane rail is 22 meter. The first storey is common for the whole building and the second storey erected at the end of the section is 48 meter long and is intended for crushing of the scrap of the skull breakers. All along the columns of the building one railway track is laid. For the supply and dispatch of scrap, shop is divided into two parts-one is the crushing pit and the other is storage area with the capacity to store 7 days stock. Skull breaker II shop is also equipped with balling (top) crane & bottom crane for handling materials. it is engaged for processing of scarp for SMS. The carne capacity of bally crane is 15 T and that of bottom crane 50 T/75 T in shop I & II respectively. The skull breakers are meant for releasing mould and bottom stickers, releasing slag cups from skulls and breaking heavy and medium skulls, ladle scrap, runner scrap, oversize and very often shapeless pieces of cast iron and steel scrap, rejected ingot moulds, bottom plates, small mill rollers, machines and machine stand and other cast pieces. The size of the processed steel scrap should be 300 x 600 approx. A steel ball of 10 T weight is lifted to a height of 20 to 22 meter with the help of a crane and then released over the scrap for breaking it. The whole building is made of hanging wooden sleeper so as to withstand the impact of splinters.

Scrap Bursting Yard

The bursting yard is provided with facilities for handling of 20,000 Tonnes scrap per year (2/3 steel scrap and 1/3 iron scarp).The unit is located upon one span crane gantry of 21 meter width and 41 meter length. One through track is provided for supply and dispatch of scrap.

For scrap bursting the section is provided with reinforced pit lined with armored plates. Burning bursting the pit is covered with an armored cover. Blast holes in scrap for loading of blasting charges are made by oxygen lancing. The unit is served by one crane of 75/20 T lifting capacity with a detachable magnet on the hook. In this section releasing of stickers and processing of rejected ingots, rolls, skull and other heavy jams are done by means of explosives. Agencies engaged for processing, dispatch of scrap, FSNL, a Govt. of India Undertaking of various types of iron and steel scraps (external and internal).

4. SALE OF SCRAP One very important function of SSD is sale of scrap to outside agencies. The following items are sold:

(a) IRON i. ii. iii. iv. v. vi. Mixed cast iron Spilled hot metal Cast iron foundry rejects Cast iron boring PCM shot plate scrap Fine iron chips

(b) STEEL i. ii. Slab end cutting from slabbing mill Rejected ingots(non rollable at BSL)

iii. iv. v. vi. vii.

HR sheet/plate cuttings Side trimming of HRCF/CRM Turning and Boring from M/C shop Used/rejected Rail, Rail sleepers Used/rejected wire ropes

INTRODUCTION As the name signifies, the department works with Ferrous (Iron & Steel) scrap to salvage it & make it useful by adding value to it. SSD has a dual role to play in the overall scheme of things in the Works division. Primarily it has to supply Iron & Steel scrap to Steel Melting Shop (SMS) as a technological input in the steel making process. Secondly, the role of SSD is to collect all the ferrous scrap (waste for the place of origin) & bring it to the department to transform it into a useful product. Every department of the plant, from Coke Ovens to Cold Rolling Mill produce metal waste termed scrap. This may be in the form of maintenance waste e.g. broken or worn out parts, damaged structures or equipment or may be process arising. The prime products continue on their production flow towards the final defined output, while the arising has to drop out as they are not suitable chemically, mechanically or by size & shape. In SMS some metal splashes out of ladles or moulds or ingots fail chemically. In rolling mills the front ends & rear ends in the shape of fish tails or irregular edge trimmings or products which are below the planned size. In a nut shell SSDs role is to ensure that all Iron & Steel scrap (unwanted at place of production) are transported to site, processed & transformed to usable shape, size & quality (free of slag etc.) and transported to SMS Magnetic Scrap Yards for using as coolant in the Converter bath. Surplus scrap, after supplying the requirement of SMS is offered for external sale to generate cash resources for the Company. CATEGORIES OF SCRAPS

SI

Category

Source

Destinatio n

1 2 IRON SCRAP 3 4 5 1 2 3 4

Mixed Cast Iron SMS splashing Spilled Hot Metal (SMS) Iron boulder Fine Iron Chips Steel boulder, skull Tundish skull Rej. Ingot, butts Broken mould & Bottom plate

Blast Furnace, PCM SMS Mixer SMS Pit side, below converter Blast Furnace Ingot Mould Foundry SMS Slag Yard, Pit side Continuous Casting Shop SMS Ingot route SMS Mould yard

SMS, sales Sales Sales SMS Sale SMS SMS SMS, sales SMS

5 STEEL SCRAP 6 7 8 9 1 0 1 1 1 2

Slab end cutting Thick plate cutting Side Trimming HR Gas cut ends HR Plate cutting( HRM) HR Sheet cutting( CRM)

Slabbing Mill Hot strip Mill HRCF & CRM Hot Strip Mill Hot Rolled Coil Finishing Cold Rolling Mill

SMS, sales Sales SMS, sales SMS, sales Sale Sale

Maintenance scrap

All shops

SMS

Turning & Boring

Machine shop, Area Repair Shops

Sale

Different Modes Of External Dispatch

External dispatch of Iron & Steel scarps are done by two modes: 1. External dispatch by Road transport 2. External dispatch by Rail transport 1. EXTERNAL DISPATCH BY ROAD: In this mode of dispatch concerned party/customer has to open a sale order in commerce department after receiving offer letter. The delivery of material is being done as per procedure order released by ED under this mode.

2. EXTERNAL DISPATCH BY RAIL TRANSPORT: The steps under this mode are as under: a) Receiving the offer letter from marketing department by customer. b) Booking of the material quantity after paying the required amount. c) Issuance of the dispatch programme to sales coordinate loading unit. d) Indenting for the wagon placement for loading by the load department to the traffic department through sales coordination. e) Requisition of the wagons by traffic to railways. f) Placement of the wagons after receiving the wagons from Railways at the loading site/track.
g) Wagons have to be placed only after Tare weighment and fitness with a placement memo

to the loading unit. The memo must indicate the TXR duly signed by Railway TXR & traffic representative. h) Loading of wagons with the materials as per dispatch programme with approximate carrying capacity. i) Release of the wagons with a release memo to Traffic weighment. j) If required wagons are to be placed again for load adjustment with a memo by Traffic k) Adjustment of the load as per the given memo for re-weighment.

l) TXR adjustments of the wagons after perfect weighment as carrying capacity.

m) Final weighment of the wagons and the preparation of the weighment report, a copy of

which has to be given to loading unit for preparation of DA.

n) Four copies of DAs have to be handed over to the Traffic department for preparation of

RR. o) After RR is prepared the wagon should be handed over to Railways with a RR copy.
p) A copy of DA has to be handed over to Sales A/C for Invoice by road after the deposit.

PRODUCTION PLANNING AND CONTROL Production planning and control is concerned with the organization and planning of manufacturing processes. The highest efficiency in Production is obtained by manufacturing the required quantity of Products at required Quantity of products at required point of time in the most economical manner. Hence it acts as a facilitation tool to achieve the set target. Bokaro steel plant has a well planned and organized PPC department which constantly reviews the on going processes of the different production units. It continuously upgrades its planning techniques as per the changing industrial environment. The main thrust of PPC is to control the process cost and to ensure the quality of the products.

Planning Material s pllaning Process

Producti on Control Scheduli ng Dispatch Process

Production planning and control translate the marketer forecast master production schedule and prepare detailed departmental production schedule for different time periods (annually ,

quarterly , monthly, weekly , daily) it establishes the basic relationship among production capacity , inventory levels and sales rate for some period to achieve optimum utilization of available resources. Working of PPC Raw material planning: For running a production unit successfully, a realtime availability of raw materials both in respect to quantity and quality is required. In an integrated steel plant the consumption of raw material is 4-4.5 the production of crude steel. Some of the important raw materials are iron ore, flux like limestone, dolomite etc.

Process planning or routine: The determination of where each operation or process is to be performed result in a planned route for the movement of the material. Loading: Once the route is established, the work required can be loaded against the selected machine or work station. Loading computes how much work and time is required performing the operation. Scheduling: This is last of phase of PPC. This determines when an operation is to be performed and when work is be connected. Combining function: While it is easy to define the above phases, in practice these three functions overlap and are performed concurrently. Obviously it is desirable that minimum of changes to be made after schedule are established. Dispatching: authorizing the start of an operation on the shop floor, it is a function may be centralized or decentralized.

Reports or progress follows up: The manufacturing activity of plant is said to be control when actual performance does not vary from the planned performance. The effectiveness depends on timely and adequate information regarding actual performance.

BOKARO STEEL PLANT- PRODUCT BASKET

Shop Product Facility Annual capacity( 000T) HSM HR Coils, Continuous mill Shearing line I 5-10 1800 2.5-12 3955 1.6-16 900-1850 Thickness range(mm) Width range(mm) Length Meters

sheets, plates HRCF HR plates HR plates HR Coil Sheets, Sheets,

Shearing II

line

1.6-4

1500

1.5-4.5

Slitting line

CRM

1600

CR Coil/sheets

CRM-I

0.63-2.5

700-1850

CR Coil/sheets

CRM-II

0.63-1.6

650-1250

CR Coil/sheets TMBP

DCR Mill

100

0.22-0.8

650-1040

HDGL

170

0.3-1.6

650-1250

SPECIAL GRADES OF STEEL Special steel grades SAE1541 MC11 SPC370/390 C15 API X-42, X46, X-52, X-60 SAILCOR (Corrosion resistance) SAILMEDSi (medium silicon steel) SAILPROP Strapping steel Full-hard galvanized coil Cold rolled medium electrical steel Extra-low carbon deep drawing (HR &CR) DMR 249A Application Automobile Industry Cycle Industry Cycle Industry Cycle Industry Pipe line Railways Heavy electrical winding Propeller shaft Strapping finished products Extra hard roof for homes Transformer core White goods Defense submarines E460/E500/E550 Floating bridges research for development fabrication of organization

IS8500 Fe 540B high strength low alloy steel Kolkata Flyover with UTS value in excess of 540 Mpa. Low carbon, low manganese, high strength Structural structural steel without micro alloying purposes: thermomechanically controlled processing.

Competitors of Bokaro Steel Plant TISCO: Sales turnover 3791 crore, increase of over 13% over last year. Sales volume 2052 MT, increase of over 10% over last year. Exports Rs700 crore Market share increased from 2 to 12%. Modernization to the tune of Rs4000 crore underway. Expanding product mix RINL: Sales turnover Rs.1900 crore, increased by 52%. Sales volume 2.36MT, increased by 67%. Exports Rs.600 crore. Growth in domestic market by 26% over last year. Market share increased from 5% to 21%. ISPAT: Started in 1976 by setting up a multi crore ISP in Indonesia; today its one of the fastest growing companys in the world. Sales turnover Rs.600 crore. Capacity 4.2MT. Exports 60% of total sales. Other competitors: Essar steel Jindal steel Saesa Goa Nippon denro ispat Usha ispat

 Lanco industries limited. CUSTOMER LIST 1. Ma Durga Ispat Udyog, Bokaro 2. Bokaro Development Area 3. Kartike Ispat Pvt. Ltd, Kanpur 4. Amit Steel Corporation, Hawra 5. Diwan Steel, New Delhi 6. Nenu Mal & Sons, Kanpur 7. Bhawani Metals, B.S.City 8. Birma Industrial & Business Enterprises Pvt. Ltd, Ranu 9. Pandey Brothers, Chas 10. Chinar Steel Segments, B.S.City 11. Mangal Pvt. Ltd., Bokaro 12. United Iro Coporation, Dhanbad 13. Bharat Supply Company, Kolkatta 14. Anup Steels, Delhi 15. Hanuman & rise Pvt. Ltd, BIADA 16. Amit Metcum Pvt. Ltd. 17. Steel India, Dhanbad 18. Kunal Steel Coperation, Ludhiana 19. GD Goel & Company, Kokatta 20. Modern Indua concast Ltd, Kolkatta 21. Agarwal Steel Centre, New Delhi 22. Tribhole Udyog, Dhanbad 23. Shiva Chemicals 24. SSE, Sindri

BANKERS State Bank of India Central Bank of India UCO Bank State Bank of Mysore IDBI Bank Ltd. Bank of Baroda State Bank of Patiala Canara Bank Punjab and Sind Bank Ltd. Punjab National Bank Allahabad Bank United Bank of India Jammu & Kashmir Bank Syndicate Bank State Bank of Saurashtra Union Bank of India State Bank of Hyderabad Bank of India Bank of Maharashta

CHAPTER 5
STRATEGIC ROLE OF THE MARKETING DEPARTMENT

MARKETING DEPARTMENT OF B.S.L.

Marketing Department of Bokaro Steel Plant is known as Marketing and Strategic Planning Department It deals with the activities of marketing of Prime products, Secondary products, etc. The marketing is done in two ways.

(a) Marketing of prime products where sales activity are co-ordinated by central marketing organization. (b) Marketing of secondary products and coal chemicals are done directly by sale of product by B.S.L. Marketing of these products are conducted by various sections by marketing department of Bokaro Steel plants. It is engaged, with marketing of all products for home sale or export. The 2.5 Million tones section is mainly related with prime products. This section includes Merchant Mill (MM), Wire Rod Mill (WRM). Rail and Structural Mill (RSM) and Billet and Blooming Mill (BBM). The related Products are. MM - Angle, channel, beams, rounds and TOR WRM - Wire rods, U - structured. RSM - Rail and Heavy structural BBM - Billet and Blooms The 4.0 Million tones section also known as plate mill section dealing with plates. Now this section has got ISO - 9002 certificate. 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.

MARKETING DEPARTMENT OF BSL IS BEING DIVIDED UNDER VARIOUS SECTIONS AS:1. 2. 3. Market Development and strategic planning Secondary Product Coal Chemicals.

4. 5. 6. 7.

Merchant Mill / Wire Rod Mill Rail and Structural Mill. Billet and Bloom Mill. Plate mill.

OBJECTIVE:
To maximize the revenue from sale of secondary products, by-products, idle or used material and other waste products and to keep the pool of customers satisfied.

FUNCTION OF MARKETING DEPARTMENT

1. 2. 3. CMO. 4. On day to day basis it takes care of the dispatches i.e. daily dispel are checked. To monitor the orders issued by CMO, So that these orders can fulfilled in Put pressure on CMO, to get orders for an under utilized mill. To sell all the secondary products directly i.e. directly by BSL and by

time.

MARKETING STRATEGIES OF B.S.L. :

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

1 BSL adopts following practices for customer satisfaction. a. b. Procedure / process adapted to access current / future expectation of It induces market research visiting customer premises attending to customers. customer complaints. c. CMO has Market Management Group where specialists monitor changing demand pattern and development in each Market segment is carried on. d. It has posted market development officers at various locations that are its eyes and ears for monitoring current and future expectation of its customer. e. The Business-planning department is exclusively meant to study customer's changing demand scenario and assess current and future expectation. f. To understand customer needs seminars and workshops are also organized by BSL.

ORGANIZATION CHART OF MARKETING DEPARTMENT

GM (Marketing)
Jr. Executive (Secretary)

AGM (Marketing )

Sr. Manager (Mktg) PI. Slag; Waste, Iron. Sugg Scheme

Sr. Manager (Mktg) Idle Asset, U & S. Surplus Hin Safety

Sr. Manager (Mktg) Sec Steel, Ad & EC, QC, ISO DCA

Manager (Mktg) Coal & Chem., Zn, Amm & Ferrous sulphate

Sr. Manager (Mktg) Price Monitoring, ERP, MIS, etc

Asst.

Dy Manager (Mktg)

Jr Executive (Mktg)

Manager (Mktg)

Dy Manager (Mktg) Report, Price Monitoring & MIS

Jr Executive (Mktg)

MARKETING

SAIL/Marketing Products

Primary (Specific parameter) CMO (HQ-Kolkata)

Secondary/By-Product Units-BSL, BSP, RSP, DSP, etc BSL Marketing Products Method of selling

E-auction Sale (90%)

Fixed price sale (Item like Slag, Carbide sludge, Ferrous sludge.)

ORGANIZATION: BSL Marketing Main section

Steel MIS

chemical

Slag

Idle Assets

Pricing

TYPES OF PRODUCTS
In Bokaro Steel Plant, the finished products are categorized into three parts: 1. Prime Products: - These are the actual products, which are originally produced for example, blooms, billets, channels, rounds, angles etc. 2. By Products: - These products are not originally produced by Bokaro Steel Plant, but are outcomes while producing the prime products. 3. Secondary Products: - These are the defectives or rejected materials due to improper mixing of chemical components or 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 remelting to produce iron and products or offered for sale if rendered surplus in production process for example Defective Heavy blooms, Defective Rails, Rail cutting, Rod cutting, Scrap etc.

Secondary and By-products of Bokaro steel plant

Apart from the core steel products there are a number of other products which are obtained during the different processes of steel making. Some of the products are recycled to be reused and rest is sold in the market. This project deals with the marketing of these products in detail.. Some of the secondary products are: Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Product MRCP 5-45 MM DEFECTIVE FM SLAB DEFECTIVE GC SHEET CR COIL ENDS FROM SPM I & II UACE FROM HDCL CP>39-65 MM OLD MX HR & CR DEFECTIVE CCD SLAB AMG HR PLATE COBBLE PLATES AMG HR SHEET DDHR (P) C&CE

By-products
These are the products which are formed while making of the core product. They are produced simultaneously with the main product and are useful for the other processes of plant and can earn revenue also. These are the main by-products sold by the plant: A. 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. B. Toluene (Nitration grade) Place of production- Bokaro steel plant Mode of delivery- railway tank wagons Uses- It is used as a solvent in many chemical reactions; artificial Sweetening; paint manufacturing; rubber industries; adhesives; Making of printing ink.

C . Xylene Place of production- Bokaro steel plant Mode of delivery- railway tank wagons Uses- Paints, thinners & varnish, rubber industry and printing ink.

D. Light solvent naptha Place of production- Bokaro steel plant Mode of delivery- railway tank wagons Uses- as a solvent, starting material for dyes and printing ink. E. Still bottom oil Place of production- Bokaro steel plant Mode of delivery- railway tank wagons/road tankers.

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

F. 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. G. Soft pitch 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 refractory brick.

H. 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.

MARKETING OF SECONDARY PRODUCTS & BY-PRODUCTS

During the seventies and sixties when the plant was one million-tonnes and 2.5 million-tonne capacity respectively, arising of secondary products was limited and such arising was recycled for re-melting. Therefore there was no scope for marketing in other words it was not economical.

The plant capacity has been increased from 2.5 million tons to 4 million tones in the late sixties. 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. There by the plant also has geared up its strategy towards this end. 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 company has engaged in educating them the use of secondary products for 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.

The plant, for marketing adopted following strategy: 1. 2. 3. Committed delivery. Competitive price Quick complaint settlement.

PRICING POLICY AND SALES PROCEDURE

Pricing :
Fixing the price of a product is the most vital function in the whole process of the marketing and it should be done after proper market study and requires decision making ability. If price is too low the company will lose revenue and if the price is too high it will lose customers resulting in loss of revenue and valuable customers. Coal chemicals are the main product which is to be marketed by the marketing department of Bokaro steel plant. Almost all the products are sold on the fixed price basis. This is due to the fact that the company does not enjoy monopoly in the said market and the price is totally market driven. 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. But the volatility of the market and a pool of different products lead to a number of meeting of the committee in quick succession. The committee consists of: GM (Utility), Chairman GM (Marketing), Convener DGM (Finance), Member DGM (Sales Coordination), member DGM (Stores), member DGM (BPP), member For scrap goods the DGM (SSD) replaces the DGM (BPP). Rest of all the members is always present in all the meetings.

While deciding the price following points are kept in mind:

 Dispatch of the last month. Material in stock. Forecast of next month. General market condition. Availability of transport facility.

GM (Marketing), as per the need, decides the frequency and time of meetings to be held. Minute report of all the meetings is prepared and it contains the existing price and the proposed price. The final price is moved to the MD through the official channel including GM (Marketing), Executive Director (MM), GM (Finance and accounts) and ED (Works). After the MDs approval the price becomes applicable and the circular indicating the revised price is printed, issued and distributed to the customers and all the concerned departments.

Methods of Pricing the Products :

A. Fixed Price Method The price is fixed by a price fixing committee based on pre determined corporate policy of the company and keeping in mind the market condition of the time. B. Reserve Pricing Method The reserve price is fixed for those products which are to be sold by EAuction mode. The reserve price is fixed by the Reserve Price Fixing Committee. It is normally fixed 2-3 days before the auction. During the auction the reserved price can be changed if the price quoted by the buyer is less than the reserved price by more than 10%.

CHAPTER 6
SALES & DISTRIBUTION

SALES AND DISTRIBUTION

MODE OF SALE 1. E-Auction Sale.

2. Fixed Price Sale. 3. Tendering Process. 4. Interplant Transfer. 5. Transfer to PSU. 6. Bill adjustment/ Book adjustment.

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 Provider's" website assigned by "Service Provider" would constitute venue for the purpose of the online auction.

Award at the Auction In a single winner format, only one bidder (normally the bidder who quotes the highest price) is awarded all the units of the item being auctioned. The bidder quoting the highest price is normally allotted the item. 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 + 0530 hrs. 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 a pre-specified period of time. 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 react 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-Auction 1. Advertisement/posting of dates and types of materials to be auctioned

in SAIL website and various news papers (Local & National) every 15th to 20th 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 given 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.

FLOW CHART OF E-AUCTION

Advertisement of dates/type of materials

Posting of lot details to be auctioned on SAIL / Metal Junction website

Inspection of lots by customers

Auction conducted on metaljunction.com

Report of Auction by metaljunction.com

Reserve Price Opening Committee meeting

Recommendations & Approval for Sale PROCEDURE OF SALE THROUGH FIXED PRICE
1. General Sale notice for different items to be sold is posted on SAIL website and advertise

in various newspapers (Local and National) between every 15th to 20th of the month for the next month,

2. For requisition of materials, applications are invited from customers bet

25th -30th/31st of every month.

3. Allocation of material to various customers is done as per approved procedure of priority allocation.

4. Offer letters are issued to the customers.

5. Price applicable will be the price rising at the time of dispatch.

FLOW CHART OF FIXED PRICE

Advertisement of type of materials on SAIL website/Newspaper

Application from customers

Allocation of material

Issue of offer letter

PRIORITY IN BOOKING OF MATERIALS BY MARKETING DEPT. Categor y A 1st Govt. Units/PSUs & govt. than of more & Priority Buyer Quantity allotted its Any units 50% quantity to be

subsidiaries ventures having

joint required by them

govt. share

2nd

Dependent with

BIADA

units Maximum 70% of balance & available quantity after meeting the 1st priority

MD/BIADAS the

recommendations MD/BSLs approval.

3rd

Consumers/Processes Jharkhand state

of 30% of balance

4th

To all other customers

Out balance any

of

the

quantity

of material left if

DISTRIBUTION CHANNELS:
Bokaro steel plant deals with its customers directly. There are some persons in the marketing department who always remain in contact with customers and extract information about the current market demand on the basis of their interaction about the current market demand on the basis of their interaction about the current market demand on the basis of their interaction with them. The products are directly marked demand on the basis of their interaction with them. The products are directly marked from Bokaro Steel Plant to the customers there is no other intermediaries.

MANUFACTURE

INDUSTRIAL CONSUMER

DISTRIBUTION CHANNELS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. A.L.P COLOUR AND CHEMICALS INDUSTRIES JAMSHEDPUR APEX MET CHEM PVT LTD BHARAT ENTERPRISES MEERUT BAJRANG PETRO CHEMICALS, KANPUR SHIVA CHEMICALS CHAS BAJRANG PETROLIUM, DELHI INDIA PESTISIDE LTD LUCKNOW NATIONAL OIL CHEMICAL, AGRA SHREE RAM INDUSTRIES, B.S.CITY JAGDAMBA PERROLIMUM INDIA PVT. LTD. DELHI KANORIA CHEMICALS, RENUKOOT SHREE BHOLEY UDYOG ,DHANBAD VIJAY CHEMICALS, RAIPUR UTKAL HYDRO CARBON, BHILAI COAL CHEM, BHILAI. NAGALIA HYDROCARBONS, KOLKATA JALAN CARBON AND CHEMICALS LTD,KOLKATA JHARKHAND TAR PRODUCTS, BOKARO BHARAT REFECTORIES LTD, KOLKATA

20. 21. 22. 23.

HIMADRY CHEMICALS, KOLKATA SHAILY DYES & INTERMEDIATES, AHMEDABAD BASF INDIA LTD, MUMBAI SRI AMBIKA SALES CORPORATIONS, PATNA,ETC.

ADVERTISING POLICY
Companies in the present scenario of globalization and liberalization needs to do more than making good product or competitively pricing its product they need to inform consumers about product benefits and carefully position products in consumers mind. Advertising is the best form of non-personal communication. It is a good way to inform and persuade. Advertising serves the dual purpose of informing the product benefit and positioning the product in consumers mind. In Bokaro Steel Plant, products (i.e.by products), is used mainly for industrial use. Its product is the raw material for most of its consumers. The customer base of Bokaro Steel Plant is knowledgeable and knows about the products and its benefit. So no special effort is needed to inform them about the product. In Bokaro Steel Plant, the main form of advertising is tender notice, and sale notice. Other form of advertising is also used but rarely. Information is provided to various personal through advertising who are directly or indirectly related with the company. These are : 1. Customers. 2. Users. 3. General public or neutral persons.
4. People who are related with the Public Relation Department of Bokaro Steel Plant

look after the advertising policy of Bokaro Steel Plant. Both marketing and public

Relation Department takes all decisions related with advertising jointly. Supported by sales coordination. All advertising of SAIL mainly contains factual data related to the product. Sometimes it also contains information related to sale of a particular kind of product. Main media used for advertising there products are newspapers and business magazines. Newspapers and business magazines are selected based on the following criterions. 1. Kind of product to be advertised and its uses. 2. Area where the product is in demand. 3. Circulation of a particular newspaper and business magazines in that area. 4. Cost of advertising.

ADVERTISING AGENCIES USED : Mainly six advertising agencies are used in Bokaro Steel Plant. 1. Continental advertising agency, Kolkata. 2. The international advertising agency, Kolkata 3. Kavya communication Pvt. Ltd. New Delhi. 4. MESSAGE advertising and designing, Patna. 5. Ranchi data system, Ranchi. 6. Ridge advertising, Ranchi.

NEWSPAPERS AND MAGAZINES USED : 1. The Hindustan Times.

2. The Times of India. 3. Indian Nation. 4. The Telegraph. 5. The Economic Times. 6. Business Standards. 7. Herald (Chennai). 8. Business Line. 9. Business World. 10. Dainik jagaran (Hindi). 11. Hindustan (Hindi). 12. Ranchi Express (Hindi). 13. Prabhat Khabar. 14. Aaj (Ranchi). 15. Steelrx. 16. Bokaro Darpan.
17. CMOs Magazine. and

18. Local News paper also.

A part from business magazines and newspapers the products of Bokaro Steel Plant is also advertise through sale notices put various offices of SAIL like KOLKATA, NEW DELHI, MUMBAI, AND CHENNAI. It also gets advertise indirectly through SAIL advertisements published in various newspapers and magazines and also shown on TV and INTERNET (1.www.sail.co.in 2.www.steelrx.com. 3. www.mateljunction.com etc.)

PROCEDURE OF REFUND OF CLAIM AMOUNT TO THE CUSTOMERS

1. CLAIM FORM:-When lifting of material for a particular claim is over, customers can

claim for 2. Price of material, security deposited, Ernest money deposit, interest or turn over tax.

Claim form is submitted to mktg dept. with invoice details 3. 4. REGISTRATION:- MKTG DEPT allotted registration no. And date to each claim. GROUNDREPORT:- Ground clearance committee submits report to CMM (mktg) after

completion of lifting of material under a particular sale order. 5. RECONCILATION OF ORDER:- Details of claim form are reconciled with that of

records at marketing dept. In case of any descriptions in the claim form submitted, it is returned to the party for correction. 6. CANCELLATION OF SALE ORDER:- When all details are in order cancellation PIM

of the sale order is prepared in the computer system. Hard copy of this cancelled PIM is duly signed by dealing assistant and controlling officer. In case of Ernest Money deposit and TOT, IOC is sending for refund of the amount. 7. ON LINE FOWARDING OF CANCELLATION PIM:- Cancelled PIM are forwarded

to S&E DEPT. through computer network. A forwarding letter along with dak no. & dak date is generated which is electronically transferred to the S&E DEPT. 8. VOUCHER FOR PAYMENT: - S&E dept. prepares voucher for payment of claims

amount and forwards it to cash section of accounts dept. 9. PAYMENT OF CLAIM AMOUNT: - Cash section issues cheque of the claim amount

for the party and deposited in their bank account.

10.

INTIMATION OF CHEQUE ISSUED: - Cash department sends information about

issue of cheque for final settlement to the party to marketing department. Process is going on for online intimation of cheque issued.

FLOW CHART OF ONLINE REFUND OF CLAIM

SUBMISSION OF CLAIM FORM BY THE PARTY IN CASE OF DISCREPANCY
REGISTRATION OF CLAIM IN MARKETING DEPARTMENT GROUND CLRARACNCE REPORT/ LIFTING DETAILS

IN CASE OF
RECONCILIATION OF RECORD

DISCREPANCY

MARKETING DEPARTME NT

GROUND CLRARACNCE REPORT/ LIFTING DETAILS PREPARATION OF CANCELLATION PIM

FORWARDING OF CANCELLATION PIM TO SALES & EXCISE

IN CASE OF DISCREPANCY

SETTLEMENT OF CLAIM AMOUNT BY SALES ACCOUNTS

REFUND OF CLAIM AMOUNT TO THE PARTY INTIMATION OF SETTLEMENT TO MKTG DEPTT BY F & A DEPPT.

S&E DEPARTME NT

CHAPTER 7

DATA ANALYSIS

DATA ANALYSIS
COMPARISON OF SALE OF BY-PRODUCTS OF LAST FIVE YEARS

STATEMENT OF SALE OF BY PRODUCTS: (Value: Rs in lakh)

1st Qtr. 2nd Qtr 3rd Qtr 4th Qtr TOTAL

2003-04 904 1320 1145 2024 5393

2004-05 1218 1731 1038 1797 5784

2005-06 1041 1417 1312 2045 5815

2006-07 1263 1458 1295 2115 6131

2007-08 1760

2500

2000

1500

1st Qtr. 2nd Qtr.

1000

3rd Qtr. 4th Qtr.

500

0 2003-04 2004-05 2005-06 2006-07 2007-08

Sale of Secondary products (2006-07)

PRODUCTS REROLLABLE STEEL SCRAPE Cobble plate Slabs/Def.Slabs MS thick plate cuttings Slab End Cutting Steel Ingot (rejected) INDUSTRIAL SCRAPS HR Coils DDHR Pickled Coils CRUAC/Def CR Coil/CREC Def CR Sheet/CR Sheet ctg. HR Plate/Sheet Cutting Def.GP/GC Coil/Sheet MCRC/Maint. Scrap-ASP MS Turning &Boring PIG IRON IRON MEALTING SCRAP CI Block/SRM/CI CI QUANTIT Y 38035 2932 32186 61047 278 3196 11026 74775 4511 34100 5846 0 321 55785 Boulder 7811 Fdry. 1746 447 (unbroken)/RBIM Scrap/CI 44 PCM Shot Plate Skull Mixed Scrap/CI Rejects chips/CI Boring Fine iron VALU E 10192 594 4956 8990 43 997 2735 19600 1274 8580 1560 0 46 5895 1186 3 233 60

COKE OVEN & BY-PRODUCTS PLANT

PRODUCTION OF BY-PRODUCTS IN BOKARO STEEL PLANT

Products Crude tar Amm. Sulphate Sulphuric Acid Pressed naphthalene pitch Hard medium Road tar Total Pitch Pitch Cresote Mixture Still Bottom Oil Extra Hard Pitch N. G. Benzene Crude Benzol Benzene N.G. Toluene Anthracene Oil Granulated cast house Granulated TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE KL KL KL KL TONNE slag TONNE slag TONNE TONNE

2006-07 1,06,764 31,530 36,839 3,213 1,840 1,410 38,259 55,350 608 2,505 2,653 5,310 5,110 562 2,945 3,34,261 3,77,210 5,674

2005-06 1,09,308 32,858 40,078 2,710 2,910 3,010 33,498 44,369 1,035 1,705 4,873 9,736 9,346 1,123 2,525 3,43,890 3,88,875 5,310

2004-05 1,03,676 27,920 39,221 3,645 6,410 2,810 44,997 59,240 801 1,735 4,140 8,579 14,123 1,367 2,060 2,55,650 7,40,546 4,193

SGP Ferrous sulphate

DESPATCH OF BY- PRODUCTS

PRODUCTS BF Coke BFSR Mixed Coke Breeze Sulphuric Hard Medium Extra Hard Anthracene Amm.Sulphat S.B.Oil HP Ferrous Granulated N G Benzene N G Toluene L S Naphtha

QUANTITY TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE KL KL KL

2006-07 0 0 0 0 5885 2219 2946 34714 983 3294 6426 730500 2180(tone) 546(tone) 185(tone)

2005-06 0 0 0 0 3594 1644 2536 30218 612 2967 1418 724351 4963 1117 401

2004-05 0 0 0 0 1834 1606 2061 24731 804 2995 3845 557195 4693 1422 652

PRICES OF BY-PRODUCT
PRICE OF COAL CHEMICALS 2008S.N o 1 2 3 4 5 6 7 8 9 AMMONIUM SULPHATE N.G.BENZENE N.G. TOLUENE L.S.N. S.B.OIL E.H.PITCH H.M.PITCH ANTH.OIL H.P.NAPHTHALENE 39095 13289 3322 1278 2555 3600 3300 3100 4250 09. PRODUCTS. QUANTITY. PRICE/ UNIT QTY 5200 30000 30000 20000 12000 18000 15000 12000 35000 2032940 00 3986700 00 9966000 0 2556000 0 3066000 0 6480000 0 4950000 0 3720000 0 1487500 00 VALUE.

PRODUCTION FIGURE OF BY-PRODUCTS

PRODUCTS

2006-07

2005-06

2004-05

2003-04

N.G BENZENE (KL) N.G TOLUENE (KL) L.S NAPTHA (MT) S.B OIL (MT) ANTHRACENE OIL E.H. PITCH (MT) H.P NAPTHALENE H.M.PITCH AMMONIUM SULPHATE 34713 1198 1830 3962 4615 1565 585

5110 1367 601 700 2100 1735 3645 6460

4140 1123 474 801 2600 1705 3000 3910

4973 362 202 1035 2949 2505 3205 1833

2653

608

30204

27920

32858

CHAPTER 8

SWOT ANALYSIS

SWOT ANALYSIS of BSL

STRENGTHS :

It has countrywide network of stockyards and dockyards/ branches/ customer can take material from any location. Customer perception of SAIL is fair and of reliable supplier > SAIL product has International standard. SAIL has a customer friendly approach and improved customer orientation. SAIL is in the market from long time having long term relation from the customers. SAIL, BSL never compromises regarding QUALITY so it has superior quality.

WEAKNESSES :
Due to its large organizational structure, which involves numerous policies and officials, it becomes difficult to take decision quickly and as result final decision making becomes very slow. Secondary product marketing depends on the primary product demand i.e. the demand for primary product is less the production will have to be slowed down thus even if the demand for secondary product is mounting up still the production wont be increased, so the secondary product is directly linked to primary product demand. Quality of the product which is slightly inferior as compared to competitors who are having latest technology. Sometimes products are not supplied as per requirement of customer.

OPPORTUNITIES :
Since SAIL has a wide network of stockyards/branch offices, it can supply its products directly to customers without any difficulty.

SAIL has a very strong base it can diversify itself into the production of different goods as per market requirements. There is growing demand for secondary product in both domestic and international market.

THREATS :
Increased competition in the market with other domestic producers. Obsolescence of existing technology. High cost of input materials. Tight money market situation.

CHAPTER 9

FINDINGS AND RECOMMENDATION S

FINDINGS
RELATED TO MARKETING DEPARTMENT

During my six weeks training in marketing department of BSL. I have observed certain problems in it these problems are findings of my studies. 1. Policies and strategies to create awareness among the customers about the product are not effective. 2. All marketing procedure of prime products are decided by SAIL and carried out by the Central Marketing Organization (CMO). 3. As the organization is concerned with a large number of productions activities and the departmental work are done mostly manually from placement of orders to documentation, which ultimately frustrates the employees. 4. The organization is more concerned with larger orders of steel products by ignoring the smaller orders. 5. The local customers with business of by-products are sometimes made to wait for days to get their papers. Cleared by the department. 6. Most of the existing yards suffers from improper stocking space and siding facility often they are not well developed due to this the material stored there are rusted and other defects are caused and later they are disposed of by offering some concession or at low rate which result in loss. 7. Due to improper packing, the materials reach the stockyard often in damaged condition, which is attracting criticism from the customers and these damaged materials are sold with loss. 8. Export considered Secondary to domestic selling as BSL is a govt. undertaking and its First priority is given to domestic marketing.

RECOMMENDATIONS
1. The pricing as we well as the distribution policies should be framed by keeping in mind the requirements of the complete range of

manufactures and not only the bulk consumers. This will encourage the new re-rolling mills to approach BSL for the material. 2. Ensure delivery of the material for which the payment is accepted so that mills are not closed or shut down for want of material. 3. Alternatively if the material is not available the BSL authorities should not accept the payment so that the buyer can approach some other source for procuring the material and should not unnecessarily wait for the material, which is not available. 4. Representative 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. 5. 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. 6. When the customer having rolling mill of a smaller size purchase material, which are rolled in a bigger rolling mills than this, clearly indicates that the material is being purchase for trading. This practice can be prevented if BSL obtains a copy of certificates issued to the owner of every mill by the District industry centre specifying the size of the mill. 7. BSL can appoint 2-3 authorized stockiest also to avoid trading practice. In this way the benefit of break up pricing can be passed on to the one for whom these have been framed i.e. the actual re-rollers. 8. 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. 9. The infrastructure facilities at the disposal yard should be maintained properly and needs improvements so that the pace of the lifting process be increased. 10. The management should see that the actual stock is lifted is more than what is arising. To achieve this goal it is quite necessary that lifting of the materials may start from the early hours and be extended to evening hours. 11. 12. Induction of computers in marketing department. Proper packing is to be done to safeguard the materials from which is occurring due to multistage handling and

damage, 13. 14.

transportation. Creating product awareness through print media, hoarding, Refund of excess payment process should be improved and industrial magazines etc. simplified. It. should make payment in less time.

CHAPTER 10

CONCLUSION

CONCLUSION :
In the past eight weeks during my training. I visited the site of Bokaro Steel Plant and during the period of my study. I passed through various stages of problems and difficulties to accomplish the

task of project work but it was a privilege for me to take this opportunity a challenging work to study and observe "marketing of Secondary products in B.S.L", which is a unit of SAIL. Bokaro Steel Plant recognizes that leadership is essential for survival in competition environment. Customer's satisfaction like quality is a journey and not a destination. It is essential that everyone in the company have a clear understanding of what customer satisfaction means if the plant aim to achieve leadership in customer satisfaction. While improved customer satisfaction is necessary for ensuring prosperity of the company must also be recognized that ability of the company to satisfy its customers would depend on its ability to continuously improve its profit and growth. The 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 a employment in small scale industries and developing the economy. Customer's satisfaction would happen when the management fulfils the following dimensions. 1. Delivery in time. 2. Product mix according to customer requirement 3. Flexible pricing policies 4. Complaint settlement 5. Culture of customer service.

CHAPTER 11

REFERENCES & BIBLIOGRAPHY

BIBLIOGRAPHY
REFERENCES
1. 2009 2. 2007 3. Kotler.P, Keller, Koshy, Jha : Marketing Management, 13th Edition, Pearson Education, Ramaswamy. VS, Namakumari.S : Marketing Management, 3rd Edition, Macmillan India, Kothari. CR : Research Methodology, 5th Edition, New Age International Publishers

4. 5. 1998 6. 2002

Malhotra.N, Dash.S : Marketing Research , 5th Edition, Pearson Education, Asia, 2007 Hart, Norman A : The CIM Marketing Dictionary, 5th, Butterworth-Heinemann, USA, Johannsen.H ,Terry.G : International Dictionary of Management, Kogan Page, India,

WEBLIOGRAPHY : www.sail.co.in www.metaljunction.com www.steelrx.com www.bokaro.nic.in www.pib.nic.in www.steel.nic.in http://money.rediff.com/money/jsp/p_l.jsp?companyCode=15510002 http://www.jstor.org/pss/3516789 www.steel.gov.in http://www.knowthis.com/general/terms.htm http://www.marketingterms.com/