i

Marketing of Secondary and By-products at Bokaro Steel Plant

A Summer Internship Project Report Submitted in partial fulfilment of the BBA Under CTIMT, jalandhar. By Kishor kumar

Roll No.: 105702461272

June 2012

Under the guidance of

Mr. N.J.Pandey

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CT INSTITUTE OF MANAGEMNT & TECHNOLOGY shahpur, po.- udopur, jalandhar (punjab),india

ACKNOWLEDGEMENT

We feel great pleasure in presenting this summer training report before the desk of respected Mr. Rajesh Kumar, Assistants Manager (HRD), Bokaro Steel Plant, SAIL. It is really a great opportunity given by him to us. This project has been made possible through the direct and indirect cooperation of various persons for whom we wish to express our appreciation and gratitude. First and foremost, we would like to thank GOD who has been a constant source of support and showered his blessings upon us in every step of this training. They gave us there full assistance and encouragement in completing this summer training. Last but not the least we would like to thank the whole unit of RDCIS, SAIL RANCHI and the Staffs/ Officers of different departments of Bokaro Steel Plant and specially Mr.N.J.Pandey (Assistant Manager, Marketing) and Marketing Department of BSL who helped us a lot in this project. Our project would have remained incomplete without their invaluable suggestions, recommendations and inspiration.

Kishor kumar

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ABSTRACT
The present study was undertaken to see the mode of sale of Secondary Product of SAIL. Marketing department is the newest genesis from the SAIL and attempts to reach their where no corporate has ever ventured so far. The survey was conducted in Marketing Department and Sales Coordination department. I was to find how auctions, fixed price and tenders are used for marketing purpose steel plant 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 from marketing department of steel plant.

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TABLE OF CONTENTS
ACKNOWLEDGEMENT................................................................................................i ABSTRACT......................................................................................................................ii TABLE OF CONTENTS...............................................................................................iii LIST OF FIGURES.........................................................................................................iv LIST OF TABLES............................................................................................................v 1. INTRODUCTION........................................................................................................2 BOKARO STEEL PLANT AT A GLANCE.................................................................6 2. LITERATURE REVIEW............................................................................................5 3. METHODOLOGY ......................................................................................................6 4. DATA COLLECTION AND ANALYSIS INTERPRETATION.........................10 5. RESULT AND SUGGESTIONS .............................................................................18 6. CONCLUSION...........................................................................................................21 ANNEXURE ...................................................................................................................22

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LIST OF FIGURES
Figure 4.1 Secondary Products: Sales and Production Data.....................................11 Ffigure 4.2 Sale of by Products.....................................................................................12 Figure 4.3 Opening Stocks of Secondary Steel Items in Stores.................................14 Figure 4.4 Regression Analysis Dispatches Vs Production........................................16 Figure 4.5 Prices of By-Product....................................................................................17

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LIST OF TABLES
Table 4.1 Sale of Secondary Products (2009-10).........................................................10 Table 4.2 Statement of Sale of by Products: (Value: Rs in lakh)..............................12 Table 4.3 Production of By-Products in Bokaro Steel Plant.....................................13 Table 4.4 Opening Stock of Secondary Steel Items in Stores as on 1st of Every Month (2008-09) ..........................................................................................................14 Table 4.5 Despatch of By- Products.............................................................................14 Table 4.6 Regression Analysis Dispatches Vs Production.........................................16 Table 4.7 Prices of By-Product.....................................................................................17

CHAPTER - 1
INTRODUCTION
Company Profile Problem Statement Objectives Scope

MARKETING OF SECONDARY AND BY-PRODUCTS

1. INTRODUCTION
As the title suggests this is a project report about "Evaluating the marketing strategies." Attention is focused upon the policies, procedures, expectations, problems, needs, and recommendations on the marketing strategies of Bokaro Steel Plant with reference to the marketing procedure of by-products. The thinking today is 'Compete or Perish'. This means no growth is final. There is no ultimate point of progress. It is an ongoing struggle. The urge is to attain something still highest Continuous effort should be made to explore the possibilities of new methods and new process with continuous improvement in level of performance. Marketing strategies is an area of going importance in the context of economic globalization. This needs an organized approach on professional values sound principles and honest expertise. This project describes the characteristics, need and expectations of those who work and how they climb a ladder through their performance. It views, current trend and future xpectaetiolls. Within the philosophy of this project is the belief that we should talk about things not only as they are but also as how they should be. We must endeavor to do better, to explore new frontiers, and must not be complacent with things, as they have been. Challenges are Opportunities as it opens the mouth of success achievement. development and accomplishment "Marketing Strategy is a process of shift- a shift from tradition to modernity, from backwardness to advancement from historical past to prosperous future. 1t is the acceptance of available opportunities. Minimization in cost and maximization of profitability with customer satisfaction is its main objective. Marketing Strategies is not a choice: it is necessity at Bokaro Steel Plant. It finances the purchasing power of raw materials and spares, creates demand for steel and its byproducts and demands modernization of mind above all. It's a gaping reality, not a dream. This project tries to find out the scope/areas of marketing strategies in Bokaro Steel Plant.
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MARKETING OF SECONDARY AND BY-PRODUCTS

1.1 Company Profile

1.1.1 Origin of SAIL SAIL trace its origin to the formative years of an emerging nation - India. After independence the building of modern India worked with a vision- to lay the infrastructure for rapid industrialization of the country, the steel sector was to propel the economic growth. Hindustan steel private limited was set up on January 19, 1954. The president of India held the shares of the company on behalf of the people of India. Expanding Horizon (1959-1973) Hindustan steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur steel plant, the preliminary work was done by the Iron and Steel Ministry. The registered office was originally in New Delhi. It moved to Calcutta in July 1956 and ultimately to Ranchi in December 1959. Anew steel company, BSL, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phase of Bhilai and Rourkela steel plant were completed by the end of December 1961. The 1 MT phase of Durgapur steel plant was completed in January 1962 after commissioning of the wheel and Axel plant. The crude steel production of HSI went up from 1.58 MT (1959-60) to 1.6 MT.
Holding Company:

The ministry of steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the parliament on 2nd December 1972. On this basic,the concept of creating a holding company to manage inputs and outputs less than one umbrella was mooted. This led to the formation of steel authority of India limited. The company incorporated on 241h January 1973 with an authorized capital of Rs.2000 crores, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur. The Alloy steel plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating.

MARKETING OF SECONDARY AND BY-PRODUCTS

1.1.2 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 Electro smelt 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 Research & Development Centre for Iron & Steel (RDCIS) at Ranchi, Jharkhand 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 Bengal Growth Division (GD) at Kolkata, West Bengal Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand

MARKETING OF SECONDARY AND BY-PRODUCTS

1.2 Objectives

To determine the overall attitude of the customer while dealing with the secondary and BY products of BSL

MARKETING OF SECONDARY AND BY-PRODUCTS

BOKARO STEEL PLANT AT A GLANCE

Historical Background:
As the fourth integrated steel plant in the public sector conceived in 1959, Bokaro steel plant actually started taking shape in 1965 in collaboration with the Soviet Union. The collaboration agreement was signed on 25th January 1965. The design of the plant was envisaged with a capacity of 1.7 million tonnes (MT) per annum in stage-I and 4 MT per annum in stage-II, with provision for further expansion. The construction work started on 6th April 1968. Bokaro steel plant was originally incorporated as al limited company on 29th January 1964. With the formation of the steel authority of India limited (SAIL) on 24th 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 & miscellaneous provisions ) 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 latest trends I 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 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 4.36 MT of liquid steel post-modernizations.

MANUFACTURING PROCESS OF STEEL

Scrap

Iron ore

Coke Ovens

Sinter Plant

Pallet Plant

Blast Furnace

Smelting Reduction

Direct Reduction

Basic Oxygen Furnace

Electric Arc Furnace

Ingot

Continuous Casting

Rolling Mill

PRICING
Price is one of the elements of marketing mix that generates revenue. Companies do their in a variety of ways. The basic thing to be kept in mind while deciding for price is the product for price is the product for which price is to be fixed. As we know coal, chemicals are not the core products of Bokaro Steel Plant and hence the pricing strategies for the by-products of or the secondary products are a very difficult part. The core products of the four steel plants are sold from the central marketing organization, which has its head office at Kolkata. CMO is one of the largest houses in India. Every item produced by SAIL-pig iron, semi-finished and finished steel fertilizers and coal chemicals are distributed by CMO. The exports are also handled by CMO. Despite CMO there is a marketing department in every unit of SAIL which co-ordinates the marketing process of their respective outcomes. Hence, the marketing department of Bokaro Steel Plant is responsible for the sale of all these products. Therefore, this department also takes the pricing decision only. There are few processes, which the department follows to come to the final price for a product. The basic thing which any firm needs to identify is the OBJECTIVE OF PRICING. There can be objectives like earnings profit, maximizing market share, market penetration pricing, market skimming prices etc. There next thing which the firm does is: ESTIMATING COSTS. The cost earned by the company during the production process. The third point to be considered is the DEMAND: The market demand, number of customers who want the product.

Standing price committee :

There is a STANDING PRICE COMMITTEE formed by the officials of Bokaro Steel Plant and it is the decision of this committee to fix up the price for the products which is done complete speculations. This committee is responsible for fixing the price as well as reviewing it. The members of this committee are listed below along with roles they play in this committee: GM (Utility) Chairman GM (Marketing) Convener DGM (finance) Member DGM (Sales & Coordinative) Member DGM (Stores) Member DGM (BPP) Member For scrap goods (BPP) is replaced by DGM (SSD). While rest member remains same. The roles played by each member: GM (decides) member when meeting is to be called. Other executives are informed accordingly. After the discussion of all the points, the minutes of meeting are prepared. The decided price along with the existing price is kept briefly and each member signs the paper with the proposed price. The proposal from is then send to MD through the route GM (marketing), GM (finance) and MDs approval the price become applicable. Price circular, which contains latest price, is issued and distributed. During the meeting, few points to be discussed are as follows: Dispatch of the last month. Stock Plan for the next month Order balance comparison of prices of the competitors Price of corresponding prime products. General market condition After discussing on the issues, the final price is decided upon.
Because of changing market conditions, the prices of the goods keep on changing and hence the meeting is to be held quite often.

MARKETING AT SAIL

Sails ability to continuously grow in different market condition reflect Ely, the inherent strengths of the company to manage its operation under varying and past changing business environment over a long span of time. It reservoir of human talent and expertise toned by the latest state of art technology for the strength of its foundation. Central marketing organization (CMO) markets the mild steel products from four integrated steel plant of SAIL with the commercial Directorate at New Delhi and head quarter at kolkata, CMO operates through a large network of regional offices, sales offices authorized dealers, stockyard and consignment against spreads all over the country. There is a closed co-ordination between CMO offices and the plants and orders are monitored on a day-to-day basis. The corporate offices at New Delhi, different CMO offices and the plants that are separated by thousands of kilometers are linked through SAILs own Internet, SAILNET. The network provides an instant online access to the distributed database. SAIL organized its marketing setup along with product line for sharper market share with existing major customers and capture potential new ones. SAIL generate according to demand from the respective consumer. Its has booked the entire prime product, what he generate will be consumed by CHINA till 2010.It work on policy what will be generated will be consumed.

SAIL has introduced a new marketing mode, Tactical marketing initiative (TMI) as a part of the new strategy. Key account manager have been posted to provide a single window service to major customers. In order to further penetrate the rural market as well untouched market, SAIL has appointed authorized dealers in the perspective as well rural area for meeting the demand of rural customer. Alloy special and stainless steel product as well as Ferro alloy are marketed directly by the producing plants ASP, SSP, MEL, and IISCO products are marketed through its own network of sales offices.

SAIL`s International Trade Division (ITD) looks after exports of mild steel products and maintain close liaison with buyer s abroad this helped SAIL established it reputation as the maker of finest steel product in as many as 70 countries around the globe. SAIL`s Transport & Shipping (T & S) wing handles all export dispatches and import receipts.

Organization chart of marketing department

GENERAL MANAGER

Jr. EXECUTIVE (SECRETRY) AGM Sr. MANAGER PRICE MONITORING, ERP, MIS Etc

Jr. EXECUTIVE

Dy. MANAGER REPORT, PRICE MONITORING Sr. MANAGER PIG IRON, BFG,

Sr. MANAGER IDLE ASSET, HINDI, U & S ITEM, SAFETY & SURPLUS ITEM

Sr. MANAGER SECO`STEEL, EST QCONTROL ISO & SUGGSTION

SLAG, WASTE PRODUCT, IRON SCRAP SCRAPON ,BFG,SLAG, WASTE PRODUCT, IRON SCRAP

Sr. MANAGER COAL, CHEMICAL, ISO, ZINC PRODUCTION, AMMONIUM & FERROUS SULPHATE

Jr. EXECUTIVE

ASST MANAGER

MODE OF DISPOSAL

1. E-AUCTION 2. FPB (FIXED|PRICE BASIS) 3. IPTR (INTER PLANT TRANSFER REQUISITE) 4. SALE BY OPEN TENDER 5. LONG-TERM BASIS (MOU) 6. ON-LINE FORWARD AUCTION

PRICE FIXATION FACTOR

1. Prevailing marketing condition 2. Price fixed by sister plants 3. Marketing tools adopted by (CMO) 4. Age & condition of material 5. Inventory 6. Rate obtained in Auction\tender last concluded 7. News paper\Magazine 8. Any other factors by committee

Advertising agencies used by BSL :

Mainly six advertising agencies are used in Bokaro Steel Plant. They are: Continental advertising agencies, Kolkata The international advertising agencies, kolkata Kavya communication pvt. Ltd., New Delhi Message advertising and designing, Patna Ranchi data system, Ranchi Newspaper and magazines used are : The Hindustan Times Times of India Indian Nation The Telegraph The Economic Times Business Standard Herald (Channai) Business Line Business World Steelrx CMOs Magazine Apart from all these mode of advertisement products of BSL is also advertised through sale notices put in various offices of SAIL like Kolkata, Mumbai, New Delhi and Channai. It is also get advertise indirectly through SAIL advertisements on internet like at the SAIL website and MJ website, SAIL Website : www.sail.co.in and Metal junction website : www.metaljunction.com. Some other form of advertisement are Television, Radio etc. which is also a method of advertisement.

List of Materials to be sold through E-Acution

(A) Steel Arising CR coil end from spm1 CR coil end from spm2 HR sheet cutting from CRM Machine shop steel turning and boring Old HR/CR coil, sheet cuttings cut broken deformed laps Assorted mixed gauge HR plate / sheets Defected CR sheets Defected GP sheets of mixed thickness and length Damaged / Defective HR pickled coil & coil end of all thickness HR plate sheet cutting of HRM Cobble plate all sizes Coil end from tandem mill Coil end from slitting line Coil end from pickling line HR gas cut sheet of HSM/HRCF Defective slab Unannealed coil ends from HDGL/CAL/EC L (B) By-Product Ammonium sulphate (20.6% N raja) Hard medium pitch Zinc dross

PROCEDURE OF E-AUCTION

1. Advertisement/Posting of dates & type of material to be auctioned on SAIL website and various news papers (Local & national) 15th to 20th of the month for next month. 2. Posting of details of lots to be auctioned one week prior to the dates of auction on SAIL web site & Metal junction website. 3. Inspection of lots to be auctioned by customers. 4. Auction is held on www.metaljunction.com. Rs50000 as EMD for one time and Rs100000 for permanent bidder deposited to metal junction. 5. Auction report detail is given by metaljunction.com. 6. Meeting of reserve recommendation. price opening committee of their

7. Issue of offer letter to the customer, based on approval of chief executive. Indicating date of payment and document require to be auctioned as per e-auction document within 24hr of receipt of approval. 8. Receive requisite valid document and payment Instrument (PI) For opening of sale order, security deposit (3% of Material cost) along with prevailing duties and taxes within 5/7 days. From offer letter. 9. Receive confirmation of encashment of PI By bank through F&A within 5 days. 10.Prepare MP (Material payment), and DO (Delivery order) and issue to customer within 24 hrs of receipt of confirmation through F&A the same day. 11. Send one copy each to loading unit, CISF, and AGM (F&A)/S&E and retain one copy in Marketing on same day of DO preparation 12. Receive lifting figure against each DO by loading unit after loading. 13. Prepare DA (Dispatch advice) sand it to EDP,F&A,and Marketing Dept for invoice preparation and record maintenance.

Procedure of sale through fixed price

1. General sale notice for different item to be sold is posted on SAIL website & advertisement in various local \national newspapers every 15th to 20th of the month for next month.

2. For requisition of material, application are invited from customers between 25th 30th of every month

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

Categor y A

Priorit y 1st

Buyer Govts unit\PSU & its

Quality to be allocated

Any quality required by Subsidiary & joint venture of them Govt, units having more then 50% share. Dependent BIADA units with Max 70% BIADAs\MD recommendation balance available & MD\BSLs approval of

2nd

3rd

SSI or consumer\processor of 30% of the rest jharkhand state available material To all other customers Out balanced quantity them of to

4th

4. Offer letter given to the customer.

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

Flow Chart of sale through fixed price

ADVERTISEMENT OF TYPE MATERIAL ON SAIL WEBSITE\NEWSPAPER

APPLICATION FROM CUSTOMERS

ALLOCATION OF MATERIAL

ISSUE OF OFFER LETTER

BSL on customer satisfaction level

In almost every company, customers are very important. So in the competitive world the customer satisfaction is also an important factor for the survival of the company. SAIL/BSLs marketing also tries its best to satisfy the customers. However still there are certain obligations in that and those should be removed as early as possible.

When we asked certain customer of secondary products some positive and negative points were found out these are :

Positive points:

The quantity of material is good as compared to other steel industry.

The relationship and behavior of the employees in marketing and shipping department is very good with the customer.

Negative points :

Pice of the product/material is high.

The rule and regulation are very tough.

Refund of security money is done late.

Delay in delivery of material that is from submission of DD to deliver of materials.

Some small manufacturer said that material products should be sold by fixed price method.

Only so that the small manufacturer who purchase materials in the range of 1500T to 2500T can also purchase easily.

CHAPTER - 2
LITERATURE SURVEY

MARKETING OF SECONDARY AND BY-PRODUCTS

2. LITERATURE REVIEW
Doing training was really an opportunity before me when I could convert my theoretical knowledge into practical and of real world type. Fortunately, the company I got is a true follower of the various principles of management and also is the largest company in its segment of the industry. The working environment that I was being provided was extraordinary and helped me a lot in delivering my work properly and with full potency of mine. 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 corers.

MARKETING OF SECONDARY AND BY-PRODUCTS

CHAPTER - 3
METHODOLOGY
Research Design Methodology Adopted Methods and Tool Criteria Used for Productivity Measurement

3. METHODOLOGY

MARKETING OF SECONDARY AND BY-PRODUCTS

3.1 Research Design

Research design can be defined as the arrangement of condition for the collection of data in a manner that provides relevance in research and economy in procedure. In this study descriptive research design was used. It is generally concerned with narration of facts and characters concerning a group of situations. It also describes the existing state of affairs. Researcher can only report as to what has happened or what is happening and has no control over the variables.

3.2 Methodology Adopted

The methodology adopted by me during the project on "Marketing of Secondary Products and By-products of B.S.L" mostly collected by secondary sources. (A) SECONDARY DATA: To know about the organization. Information/data has been collected from: Government Publications. Books of organization. Journal. Company's Website.

(B) PRIMARY DATA: To know about the procedure and working of Marketing Department and Secondary Section information has been collected by: (a) Observation Method (b) Personal Interview with AGM Senior managers Managers

(c) Document provided by them.

MARKETING OF SECONDARY AND BY-PRODUCTS

3.3 Methods and Tool

In methodology part we using various analysis tool which are: Regression Analysis Correlation Analysis Pareto Chart

Regression Analysis: Regression Analysis is the determination of a statistical relationship between two or more variables .so we Analysis production vs dispatch from year 2007 -2010 Correlation Analysis: Correlation Analysis is the joint variation of two or more variable for determining the amount of correlation between two or more variables . so we Analysis the joint variation of two or more variable i.e production and dispatch

3.4 Criteria used for Productivity Measurement 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
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MARKETING OF SECONDARY AND BY-PRODUCTS

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.

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 aluminium 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.

MARKETING OF SECONDARY AND BY-PRODUCTS

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.

CHAPTER - 4
DATA COLLECTION AND ANALYSIS INTERPRETATION

MARKETING OF SECONDARY AND BY-PRODUCTS

4. DATA COLLECTION AND ANALYSIS INTERPRETATION

Table 4.1 Sale of Secondary Products (2009-10)

PRODUCTS REROLLABLE STEEL SCRAPE 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 Boulder (unbroken)/RBIM PCM Shot Plate Scrap/CI Skull Mixed CI Scrap/CI Fdry. Rejects Fine iron chips/CI Boring Cobble plate

QUANTITY (Tonne) 38035 2932 32186 61047 278 3196 11026 74775 4511 34100 5846 0 321 55785 7811 44 1746 447

VALUE (Lakh) 10192 594 4956 8990 43 997 2735 19600 1274 8580 1560 0 46 5895 1186 3 233 60

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MARKETING OF SECONDARY AND BY-PRODUCTS

Secondary products: Sales and production data: (Quantity in tons & value in Lakhs)

Figure 4.1 Secondary Products: Sales and Production Data

This table and graph shows that production of different category & sub category of secondary products and there sale in the financial year 2006-07.They generate maximum revenue from CRUAC/Def CR Coil/CREC because its production is so large in the process of manufacturing prime products.

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MARKETING OF SECONDARY AND BY-PRODUCTS

Comparison of Sale of By-Products of Last Five Years

Table 4.2 Statement of Sale of by Products: (Value: Rs in lakh)

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

2006-07 904 1320 1145 2024 5393

2007-08 1218 1731 1038 1797 5784

2008-09 1041 1417 1312 2045 5815

2009-10 1263 1458 1295 2115 6131

2010-11 1760

2500 2000 1500 1000 500 0 2006-07 2007-08 2008-09 2009-10 2010-11 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.

F figure 4.2 Sale of by Products

This table and graph shows that the quarterly sale of By-products is different in every year & it shows lots of ups and down and maximum sale in last quarter it is because its production is depend on prime product.

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MARKETING OF SECONDARY AND BY-PRODUCTS

Table 4.3 Production of By-Products in Bokaro Steel Plant

Products Crude tar Amm. Sulphate Sulphuric Acid Pressed naphthalene Hard medium pitch 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 slag cast house Granulated slag SGP Ferrous sulphate TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE KL KL KL KL TONNE TONNE TONNE TONNE

2009-10 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

2009-08 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

2008-07 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

This table shows that different By-products production figure of three consecutive years, and it shows lots of ups & down because its production is depend on prime products of BSL.

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MARKETING OF SECONDARY AND BY-PRODUCTS

Table 4.4 Opening Stock of Secondary Steel Items in Stores as on 1st of Every Month (2008-09)

Month Apr May June July August September October November December January
S c to k

Stock 16679 21981 28295 39695 47458 43379 44467 50321 57221 64366

700 00
636 46

600 00 500 00 400 00 300 00 200 00 100 00

b e r e r e r u n e b e r u s t e m b
291 18 169 67 225 89 365 99 448 75 439 37 531 02 447 46

521 72

S c to k

a y

e m b

A p r

u ly

A u g

o v

S e p

e c

Figure 4.3 Opening Stocks of Secondary Steel Items in Stores

Table 4.5 Despatch of By- Products

PRODUCTS BF Coke

QUANTITY 2009-10 TONNE NA

14

2009-08 NA

a n u a

te m

c to

2008-07 NA

ry

MARKETING OF SECONDARY AND BY-PRODUCTS

BFSR Mixed coke Coke Breeze Sulphuric Acid Hard Medium Pitch Extra Hard Pitch Anthracene Oil Amm.Sulphate S.B.Oil HP Naphthalene Ferrous sulphate Granulated slag N G Benzene N G Toluene L S Naphtha

TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE TONNE KL KL KL

NA NA NA 5885 2219 2946 34714 983 3294 6426 730500 2180(tone) 546(tone) 185(tone)

NA NA NA 3594 1644 2536 30218 612 2967 1418 724351 4963 1117 401

NA NA NA 1834 1606 2061 24731 804 2995 3845 557195 4693 1422 652

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MARKETING OF SECONDARY AND BY-PRODUCTS

Table 4.6 Regression Analysis Dispatches Vs Production

YEAR WISE 2007-2008 2008-2009 2009-2010

PRODUCTION 1321113 1037159 1012043

DISPATCHES 601793 773821 799878

Figure 4.4 Regression Analysis Dispatches Vs Production

This table and graph shows that difference between By-products production and Dispatches figure of three consecutive years & it shows continuous growth in maximum products. Its production is affective because its production is depending on Coke oven plant.

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MARKETING OF SECONDARY AND BY-PRODUCTS

Table 4.7 Prices of By-Product

(Value: Rs in lakh) S.No 1 2 3 4 5 6 7 8 9 PRICE OF COAL CHEMICALS 2008-09. PRODUCTS. QUANTITY. PRICE/UNIT QTY 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 5200 30000 30000 20000 12000 18000 15000 12000 35000 203294000 398670000 99660000 25560000 30660000 64800000 49500000 37200000 148750000 TOTAL

Figure 4.5 Prices of By-Product

This table shows that the different coal chemicals, there production, unit price & value in the financial year 2008-09.They generate maximum revenue from N.G.Benzene.

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CHAPTER - 5
RESULT AND SUGGESTIONS

MARKETING OF SECONDARY AND BY-PRODUCTS

5. RESULT AND SUGGESTIONS

5.1 Result
REGRESSION AND CORRELATION ANALYSIS Regression Analysis :-Regression is the determination of a statistical relationship between two or more variables. Correlation Analysis :-Correlation is the joint variation of two or more variable for determining the amount of correlation between two or more variables. The regression equation is Dispatch = 1428800 - 0.626 Production Predictor Constant Producti Coef 1428800 -0.62632 SE Coef 34146 0.03016 T P

41.84 0.015 -20.77 0.031

R-Sq = 99.8%

R-Sq(adj) = 99.5%

Analysis of Variance Source Regression Residual Error Total DF SS MS F P

1 23116486441 23116486441 431.26 0.031 1 53602645 53602645 2 23170089086

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MARKETING OF SECONDARY AND BY-PRODUCTS

Residual Histogram for Dispatch Correlations: Production, Dispatch Pearson correlation of Production and Dispatch = -0.999 P-Value = 0.031

5.2 Suggestions

Consistent quality: Quality of the products should be consistent to the buyer's requirements. Though these are "By products" but with a little effort it can be more purified which will be a reason to attract the customers. Committed Delivery: Delivery time is very important for the customers. Committed deliveries lure the customers to visit again. Customized Product Mix: Customers Product is very important for those customers of BSL who have producing unit for e\:3I11ple- Ben7e'le is used in medicine & paint industries. For medicine more purified Benz.ene is required whereas for paint industries it is not so, keeping in mind these facts. Customized sale is very important. Consumer behavior in relation to demand: For knowing consumer behavior in relation to demand regular market research is required. These researches help in many ways. So it should be done regularly. Competitive Pricing: Pricing policy is very important for any industry. Prices are always set with the intension of giving competition to the competitors. Prices should be set with keeping in mind the competition products price. Consistent Profitability: Though profit is the lifeblood of any business but it should not be very high, as customer will not afford it. It should not be very low also because business has to run. After sale relations with regular customers: This formula is used in every industry now a day. As competition is increasing and by large quality of the products are same due to high mechanism, this formula i.e. gaining goodwill by maintaining after sale relation helps a lot to the business. Proper and fast execution of official's formalities: Since it is a PSU so it has lots of officials works to follow. But it should be lesson to save the time energy of the customer. It will give an advantage to the business.
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MARKETING OF SECONDARY AND BY-PRODUCTS

Proper vigil on the competitors activities: Competitors are a part or business. They can't ignore. BSL's competitors are Haldia refinery. LOCL RINL. TISCO, Rourkela Steel Plant, and Bhilai Steel Plant etc. To give them competition and gain more market share it is very important to watch their activities and to change own marketing strategy time 0 time. Customer satisfaction: Customer is the main player around which the whole organization / business revolve. So customer satisfaction must be the top priority for any business unit. So it applies in BSL also.

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CHAPTER - 6
CONCLUSION

MARKETING OF SECONDARY AND BY-PRODUCTS

6. CONCLUSION
The basic objective behind of this study is to carried out the major contribution of secondary product which is pre-determining for the success of the company. By selling the Secondary product in local market company is earning profits. It is also creating employment in small scale industries and developing the economy. 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.

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 sales, 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 the employment in small scale industries and developing the economy.

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MARKETING OF SECONDARY AND BY-PRODUCTS

ANNEXURE
Questionnaire Abbreviation Bibliography

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MARKETING OF SECONDARY AND BY-PRODUCTS

ANNEXURE
Questionnaire
Name ................................................... Organization ..................... Location.............................................. Q.1 In which category customer do you belong. Trader Producer Q.2 Since when you are dealing with BSL. 0-5 years Above 10 years Q.3 Why do you prefer to purchase from BSL. Quality Local market Q.4 Are you satisfied with the quality of product. Yes No Q.5 What mode of transportation are you using. Railways Roadways Q.6 What type do you purchase from BSL. Primary product Secondary product Trading Consumption Q.8 Are you dealing with any other company other than BSL. Yes No By product Scraps Low transportation Others 5- 10 years Manufacturer Other

Q.7 For what purpose do you use the by products from BSL.

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MARKETING OF SECONDARY AND BY-PRODUCTS

Q.9 Have you faced any difficulties while dealing with BSL. Yes No Q.10 Did you complain about the problem faced. Yes No Q.11. Did you complaints get executed. Yes No Scope of question is to identify the attitudes and preference of consumers.

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MARKETING OF SECONDARY AND BY-PRODUCTS

Bibliography
[1] [2] [3] [4]
[5] [6] [7] [8] [9] [10] [11] [12] [13]

Marketing Management Philip Kotler. Marketing Performance Report (Apr06-March07). Marketing Management Ramasawami. Marketing Management M.D. Kakade. 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

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