A STUDY ON THE PRICING AND SALES

STRATEGY OF SECONDARY AND BYPRODUCTS AT SAIL (BOKARO)

PROJECT REPORT

Submitted by:
Soumya Shrivastava
JIMI2014B/44
Jaipuria Institute of
Management, Indore

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Authorisation
Date: 24th August, 2015

To whomsoever it may concern

This is to certify that Ms. Soumya Shrivastava has done internship at
Steel Authority of India Ltd. (Bokaro) from 11th May2015 to 6th June
2015 on The pricing and Sales of Subsidiary Products and Idle Assets at
Steel Authority of India Ltd. under the guidance of Prof. Jagdish
Bhagwat.

Prof. Jagdish Bhagwat

Faculty Mentor
Jaipuria Institute of Management, Indore

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Acknowledgement
An endeavor is not complete and successful till the people who make it possible
are given due credit for making it possible. I take this opportunity to thank all
those who have made the endeavor of mine successful for me and for all.
First and foremost I am very thankful to all the officers of Bokaro steel plant
who really helped a lot and guided me throughout my training session, without
their help I would have been unable to complete my project. I would also like to
extend my heartfelt gratitude to the Director, Jaipuria Institute of Management,
Indore, Dr. Harshvardhan Halve, and all the faculty members of the institute for
providing me this opportunity and an excellent infrastructure and facilities
which helped me complete this project. I would like to especially thank my
faculty mentor Prof. Jagdish Bhagwat for his continuous guidance and support.
The completion of my project would not be possible without these people.

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Executive Summary
This study investigates The pricing and Sales of Subsidiary Products and Idle
Assets at Steel Authority of India Ltd. This study is done for SAIL; BSL
The present study was undertaken to see the mode of sale and pricing methods
of Secondary Products of SAIL. Marketing Department is the newest genesis
from the SAIL and attempts to reach their where no corporate has ever ventured
so far.
I was to find how auctions, fixed price and tenders are used for marketing
purposes in BSL.
The various steps involved therein are as follows:
To know about the e-auctions of marketing department.
How they use this technique and 90% marketing and selling is done
through auction and rest will be taken through fixed price selling and
tenders.
I underwent various stages of problems and difficulties to accomplish the task
of my project work but it was a privilege for me to take this opportunity as a
challenge to study and observe " The Pricing and Sales of Subsidiary Products
and Idle Assets at BSL", which is a unit of SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in a
competitive environment; it is essential that everyone in the company has a
clear understanding of what customer satisfaction means, if the plant aims to
achieve leadership in customer satisfaction. While improved customer
satisfaction is necessary for ensuring prosperity of the company, it must also be
realized that the companys ability to satisfy its customers would depend on its
ability to continuously improve its profit and growth.
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The basic objective behind the study carried out by me is to study the major
contribution of Secondary products to total sales, which is pre-determines the
success of the company. By selling the Secondary product in local market
company is earning profits. It is also creating an employment in small scale
industries and developing the economy.

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BOKARO STEEL PLANT

A PARTNER IN NATION BUILDING

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TABLE OF CONTENTS
Authorization
Acknowledgements...
Executive Summary/Abstract.
Introduction 8-9
Core Values...10
Types of Products11-12
Necessity of Selling the ''Secondary Products"..........13
Role of Marketing Department...14-15
Organization Chart of Marketing Department..16
Policies of Marketing17-20
Marketing Strategies of BSL21-22
Planning For Sale of Secondary Product23-24
The Structure of The Process of Sales and Marketing...25
Demand Registration of BSL.26
Sale of Secondary and By-Products27-29
Disposal of Idle Assets..30-31
Sale through Fixed Price...32
E- Auction Sale (Yearly Comparison)33-37
Observations.39-40
Conclusions and Recommendation..41
Bibliography..42
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INTRODUCTION
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started
taking shape in 1965 in collaboration with the Soviet Union. It was originally
incorporated as a limited company on 29th January 1964, and was later merged
with SAIL, first as a subsidiary and then as a unit, through the Public Sector
Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978.
The construction work started on 6thApril 1968.
The Plant is hailed as the countrys first Swadeshi steel plant, built with
maximum indigenous content in terms of equipment, material and know-how.
Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT
ingots of steel was completed on 26th February 1978 with the commissioning of
the third Blast Furnace. All units of 4 MT stage have already been
commissioned and the 90s' modernization has further upgraded this to 4.5 MT
of liquid steel.
The new features added in modernization of SMS-II include two twin-strand
slab casters along with a Steel Refining Unit. The Steel Refining Unit was
inaugurated on 19th September, 1997 and the Continuous Casting Machine on
25th April, 1998. The modernization of the Hot Strip Mill saw addition of new
features like high pressure de-scalers, work roll bending, hydraulic automatic
gauge control, quick work roll change, laminar cooling etc. New walking beam
reheating furnaces are replacing the less efficient pusher type furnaces. A new
hydraulic coiler has been added and two of the existing ones revamped. With
the completion of Hot Strip Mill modernization, Bokaro is producing top quality
hot rolled products that are well accepted in the global market.
Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled
Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill
Black Plates (TMBP) and Galvanized Plain and Corrugated (GP/GC) Sheets.
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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.

Directions
Bokaro Steel is working towards becoming a one-stop-shop for world-class flat
steel in India. The modernization plans are aimed at increasing the liquid steel
production capacity, coupled with fresh rolling and coating facilities. The new
facilities will be capable of producing the most premium grades required by the
most discerning customer segments.
Brand Bokaro will signify assured quality and delivery, offering value for
money to the customers.

Vision
To be a respected world-class corporation and the leader in Indian Steel
business in quality, productivity, profitability and customer satisfaction.

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CORE VALUES OF SAIL

Core Values

Customer
Satisfaction

Concern for
People

Consistent
Profitability

Commitment of
Excellence

TYPES OF PRODUCTS
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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. Eg. Methane, tar, ammonium
sulphate, slag, etc.
3. Secondary Products: These are the defectives or rejected materials due to improper mixing of
chemical components or failure to meet the optimum requirements. Scraps
generated inside plant are also termed as secondary products. The secondary
products used here in after will mean ferrous materials generated from various
production units which can either suitably be used for re-melting to produce
iron and products or offered for sale if rendered surplus in production process
for example Defective Heavy blooms, Defective Rails, Rail cutting, Rod
cutting, Scrap etc.

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Following Items fall under the category of Secondary Products:(A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG
1. MS SLAB END CUTTING WITHOUT FISH TAIL
2. MS THICLE PLATE CUTTING (25-40 MM) MIXED W.FR.
3. SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS.
4. LIQUID NITROGEN.
5. FINE IRON CHIPS FROM IMP (FE-70% APP).
6. FERROUS SIELPHATE LOOSE.
7. BE GRNAULATED SLAJ (BOTH BY FIXED PRICE AND TENDER).
8. LIQUID ARGON.
9. PIG TRON.
10.

TURNING & BORING.

(B) OTHERS
1. CARBIDE SLUDGE.
2. U/R AMC/MCB BRICKS.
3. U/R MAJ CHROME MAJ BRICKS.

(C) COAL CHEMICALS AND BY PRODUCT

1. MG BENZENE
2. NG TOLUENE
3. LS NAPTHA
4. SB OIL
5. HP NAPHTHALENE
6. ANTHRANCENE OIL
7. EXTRA HARD PITCH
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NECESSITY OF SELLING THE ''SECONDARY PRODUCTS"

The net sales realization from all the Secondary products, By-Products and coproducts of BSL is around Rs.600 crores which is quite more than the big
industries. Out of this, Steel Scrap itself brings about Rs.15200 cores of money
every year. Re-production of main products from the secondary products
requires re-melting it again for the required composition of the materials as per
the desired specification.

By selling it to the different Mills/traders/Processors the plant earns around

Rs.4000 per tones of the direct profit than by re-producing it to the main
product. The traders /processors/re-rollers, use these as a raw materials for
different finished products making huge profits, the plant is also not losing
anything.
Profit is the main aim of every business, and when the realization of these
products for the finished products proves to be costlier, the management plant
decides to sell it to the local market.
By selling secondary Products to the Local market new industries are developed
for re-rolling the Secondary materials to make finished products. It has also
increased the small-scale industries and employment opportunities.
Last year average price of scrap product were between Rs.12000/ton to
Rs.16000/ton

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ROLE OF MARKETING DEPARTMENT

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MARKETING DEPARTMENT OF BOKARO STEEL PLANT

Marketing Department is one of the Departments under Materials Management

Division of Bokaro Steel Plant. Marketing Department is entrusted with the
responsibilities to sell BSLs Secondary Products, By-Products/Waste Products,
and Idle Assets etc.
The Marketing Departments sales procedures are covered by the guidelines
given by SAIL Corporate office DELHI, and is given by CMMG
(CORPORATE MATERIAL MANAGEMENT GROUP), the objective of
which is To sell the materials in a fair and transparent manner to achieve
maximum possible revenue for the company
(a) Marketing of prime products of SAILs plant including BSL is done by CMO
(Central Marketing Organization) which is a unit of SAIL.
(b) Marketing of secondary products and coal chemicals are done directly by
Marketing Department of BSL. As a matter of fact, the Secondary & ByProducts are marketed by the individual Plants only.
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.

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ORGANISTATION CHART OF MARKETING DEPARTMENT(BSL)

GM (Marketing)

Jr. Mgr. (Co-ordn.)/Mktg.

Cord, HK, Admn. & Est. Training
Officer
DGM (Mktg.)
Audit, Vigilance, RTI, & other queries
reply, Contract Cell(MM), Sec. Sales

AGM(Mktg.)
Sec. Steel Ad & Est, QC, ISO,
DCA, Contract Cell(MM)

Sr. Mgr.
(Mktg.)

Sr. Mgr. (Mktg.)

Idle Assets, U&S, Surplus

Slag, Waste,

Sr. Mgr. (Mktg.)

Coal& Chem., Zinc
Dross, Ammonium
Sulphate & Ferrous

Manager
(Mktg.)
Reports, Price
Monitoring, MIS

Jr. Mgr. (Mktg.)

Secondary Steel,
Safety Officer

Jr. Mgr.
(Mktg.)

POLICIES OF MARKETING
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Marketing Planning has responsible function in the working of marketing

department. All the risky developments, taking out solution to cripple situations,
this section carries out product pricing and related activities, some of the
programs, policies and procedures are as follows:I) Positioning the product according to the value based place in customers
mind.
II) Finalizing the annual sales plan and quantity, monthly, weekly, and daily
rolling program.
III) Optimizing the product-mix by proper utilization of available stocks.
IV) Receiving enquiries and complaints, cancellation of orders etc.
V) Coordinating the works of mills and traffic department so as to maximize
dispatches.
VI) Periodical market surveys of products to analyze the market position.
VII) Implementation of suggestions received from the customers feedback.
VIII) Ensuring customer satisfaction by meeting customers regularly; provide
redress to their problems and fulfillment of demand.

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 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.

The policy adopted by the marketing department for pricing of materials is

largely guided by the price offered by the bidders during the auction. The
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various factors taken into consideration while pricing the re-rollable items can
be enumerated as follows: (a)

Prices offered in the auction sales.

(b)

Quantity of material to be lifted.

(c)

Managing director's approval.

The average of the prices offered by the bidder during auction is taken as the
basis to fix the prices of materials to be sold through marketing department.
Further the techniques of break-up-pricing are adopted i.e. the larger the
quantity purchased lower will be the prices. This technique encourages the
buyers to purchase larger quantity. Finally the managing director approves the
prices set by the pricing committee. On this basis, a price list is prepared for all
the potential buyers. Price list also indicates the sales tax and Excise duty to be
levied. Thus the interested parties place their orders with the marketing
department on the basis of price list reviewed every month. Every customer is
required to have a security deposit amount of Rs.1 lakh. The payment for the
material required is to be in advance. The material is supposed to be lifted on
the specified date on account of delay the party has to pay the difference in the
prices, if there is any increase in subsequent month.
Standing Pricing Committee:
The committee reviews the price of various products and takes decision in favor
of maximizing the profit. It holds meeting at least once in a month. But the
volatility of the market and pool of different products lead to a number of
meeting of the committee in quick succession.

The committee consists of:

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 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). Rests of all the
members are 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, is issued and distributed to the customers and all the concerned
departments.

DISTRIBUTION
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On the other hand for sale of scraps there is no such policy adopted by Bokaro
Steel Plant. Customers are served on first come first served basis.
CHANNELS
Bokaro steel plant has zero level channels as it directly sells to the customers.
There is no intermediate among producer and consumer. Marketing Department
always remains in contact with the customers extracts information about the
current market situation on the basis of interaction between them.

MARKETING STRATEGIES OF BSL

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Steel being an industrial commodity it is very necessary to maintain customer

relationship for profitability and smooth running of company.
1. Customer Satisfaction
BSL adopts following practices for customer satisfaction:
a. Procedure / process adapted to access current / future expectation of
customers.
b. It induces market research visiting customer premises attending to customer
complaints.
c. It has posted market development officers at various locations that are its eyes
and ears for monitoring current and future expectation of its customer.
d. To understand customer needs seminars and workshops are also organized
by BSL.
Building Customer Relationship
BSL has adopted the philosophy of recognizing the segments of the market and
identifying key customers in each segment and giving them preferential
treatment. CMO sales executives have been trained to use direct selling as tool
for building long lasting relationship with the customers. They have easy access
to customers to seek assistance, make proposals and send comments and
compliments.
MARKET DEVELOPMENT
BSL has valued customers groups in identifying their needs specific to that
group, thus segmenting and developing the market for their products. Major
product modifications are done as per their specific needs of the market segment
thereby creating product differentiation packages.
2. STOCK REDUCTION
Giving facilities like door delivery, road dispatches, credits facility and rounds
the clock stockyard operation.
3

PRICE FIXATION
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Pricing is done basically by the CMO. Taking into consideration cost of

production, government steps on pricing, certain percentage of profit, price of
raw material, freight charges etc. i.e. pricing is COST PLUS PRICING.
4

DISPATCH

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

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PLANNING FOR SALE OF SECONDARY PRODUCT

1. Marketing Recovery Department (MRD) works out the quantum of different

types of scrap available for sale on monthly basis. This is determined by
ascertaining the total scrap stock at the beginning of the month. Scrap arising
during consumption. The remaining quantity is considered for sale. A, monthly
report on availability of scrap is prepared by MRD and sent to marketing
department.
2. Marketing Department finalizes the plan for actual quantity of scrap to be
sold in consultation with MRD. Marketing department finalizes mode of sale,
terms and conditions for sale, locations and commercial aspects.
3. The pricing committee consist of Managing Directors fixes the price of each
type of scrap.
4. Marketing department obtains MD's approval on price fixed by pricing
committee.

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PROCEDURE APPLIED FOR SALE OF SECONDARY PRODUCTS

1. After obtaining approval of quantity and price for sale, Marketing
department scrutinizes the demand from various parties, examine the Priorities
and issue "offer letters" to respective parties. The terms and conditions for sale
are also enclosed within the "Offer Letter"
2. About one third of the quantity of material to be sold during the year is
offered to the actual users, subject to registration of demand.
3. For the balance quantity to be sold at prices fixed by pricing committee,
preference is given to actual users over traders. If there are no actual users, the
material may be offered to traders giving preference to registered traders over
others.
4. First preference is given to the actual users for allotment of scrap against
particular category of users. Scrap processing units are given second preference
for such allotments.
5. The amount received from the party towards advance payment and security
deposit is forwarded to finance department by marketing department after
recording the details in the register.
6. Parties are allowed to visit the respective location disposals site, and inspect
the scrap offered for sale.
7. Marketing department prepares sale order for the parties who have accepted
the offer. Sale orders are issued party wise and category wise i.e. individual sale
order covers such categories like C I scrap, steel scrap, re-rollable, slag and
waste products.
8. Based on the deposit made by the party, finance department intimates to
marketing department about release of requisite scrap for supply.

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THE STRUCTURE OF THE PROCESS OF SALES AND MARKETING

PRODUCTS

PRIMARY (SPECIFIC PARAMETER)

SECONDARY/BY-PRODUCTS

CMO (KOLKATA)

UNITS- BSL, BSS, RSP, DSP etc

BSL MARKETING

METHOD OF SELLING

E-AUCTION SALE

TENDER

FIXED PRICE SALE

BSL MARKETING (MAIN

SECTION)

STEEL

CHEMICAL & BYEPRODUCTS

SLAGS & WASTE

PRODUCTS

IDLE ASSETS

PRICING

DEMAND REGISTRATION OF BSL

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Marketing department of BSL sales homogeneous steel scrap is at fixed price.

For this purpose the procedure for registration of demand and offers is as below:
1. Preference for sale of material given to local parties and those, who are actual
customers. Material is not sold for trade.
2. Sale of material made to re-rolling mills and scrap processing units and the
lots of sale between them maintained at 67:33.
3. Based on the above consideration offer letter issued to the party offering a
quantity, which has been lifted by them during the last preceding year or
allocated by the state industries, Department. In the offer letter party is advised
to complete commercial formalities.

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SALE OF SECONDARY AND BY-PRODUCTS

Selling of Secondary & By-Product

This involves a direct marketing process. The management of BSL in

consultation with the official of the market development and customer service
department work as group for the sale of these items. Different modes of selling
are used for these products

MODE OF SALE

E-auction

Fixed
Price

Inter
Plant

Tender

Transfer

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Procedure for Online Forward Auction

Lot Formation- Lot is formed in based of type / class / category / grade
wise. Each lot shall have an identification mark and a specific lot number
indicating the location.
Inspection of Material ( for material available on ground ) - The materials
offered for sale are on AS IS WHERE IS (AIWIB) and NO
COMPLAINT basis
Earnest Money Deposit ( EMD )

Lot value in Rupees

EMD

Lot(s) having value upto 25

Lakhs Rupees.

@ 2 % of lot value.

For lot(s) having value

greater than 25 Lakhs
Rupees.

Rs. 50,000 /-.

Conduct of Forward Auction by M-Junction.

Award at the Auction - only H1 bidder (normally the bidder who quotes
the highest price) is awarded the item being auctioned.
Acceptance of Offer / Sale Order / Offer Letter
Security Deposit and Payment towards material value-The successful
bidder shall be required to furnish security deposit ( if applicable ) and
the amount against value of materials including taxes & duties applicable
as per details indicated in the Acceptance of offer / Sale order / Offer
letter .
Release Order / Delivery Order
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Price Fixation
Reserve Price Fixation Committee (RPFC) for Sale through
Electronic Auction / Open Tender
A Reserve Price Fixation Committee (RPFC) constituted with the
approval of the Competent Authority for deciding the Reserve Price.
The RPFC may consist of representatives from the Marketing Department
/ Materials Management /Department, Finance, Dealing Department
/Operations & Chief Executives Nominee, if any.
RPFC may be headed by an executive not below the rank of E-7.
RPFC shall recommend the Reserve Price (RP) for each category of
material, which shall be forwarded in a sealed cover to the head of
Materials Management Department / Marketing Department and kept
confidential

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Disposal of Idle Assets

Idle assets are those, which are no longer required for intended purpose
and/or retired from active use. These may be categorized as assets
becoming idle
-due to normal/premature replacement.
-Being abandoned after installation & commissioning.
- Being found in-operative/uneconomical after procurement.
The major reasons for items becoming idle could be either / or a
combination of the following:
1. Technological up gradations/modernization of plants/processes.
2. Inherent design defect.
3. Non-availability of spares and/or drawings and /or inputs (Raw materials /
consumables/stores etc.)
4. Change in market scenario affecting marketability of product.
5. Changes in pollution control / Safety statutory laws and requirements.
6. Where items have out lived its life.

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Procedure for Disposal of Idle Assets

Committee for management of Idle Assets (CMIA) - Identification,
declarations, processing for write- off and disposal of the Idle Assets.
Determination of Written Down Value (WDV) - Cost of Assets
capitalized in the books of Accounts less accumulated depreciation
Write-off losses - Chief Executives and Directors are empowered to
write- off losses.
Initiate action for identifying the Prospective buyer - Auction for
disposal of Idle Assets. Same procedures are followed i.e lot creation,
RPFC, etc.

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Sale through Fixed Price

-

Mixed Coke Sale of Mixed Coke (3100 MT) through auction.

Revenue generated Rs 2.76 Cr.
By Road Dispatch of Mixed Coke at Fixed Price
BFG Slag - Initiation of Sale of BFG Slag at Fixed Price
M/s ACC Ltd is leading customer apart from other prospective customers
willing to take at Fixed Price
Revenue Generated

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E- Auction Sale(Yearly Comparison)

Page 33

Idle Assets: e auction value( in Rs Lacs)

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Page 35

Total Sale (Dispatch Value)

Page 36

Dispatch Invoice Value (2013-14 vs 2014-15)

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Observations
Low price, better service and high quality are the major concerns that the
customers looks into for preferring a particular steel plant for secondary and byproducts.

1. Majority of the customers responded that other steel plants are

providing secondary and by-products at a lower rate.
2. Most of the Customers responded that they find difficulties while
dealing with BSL.
3. E-auction is the most reliable selling method and majority of
customers are happy with it. The other methods of selling adopted by
BSL like tender, fixed price are same as the other steel plant and
customers are satisfied with those selling methods.
4. Most of the customers dont register complain about the problem they
faced during purchase but majority of customers who registered their
complain get solution for that. So, BSL has to increase the confidence
of customers on them.
5. Among by-products category of products Benzene, Toluene and
Ammonium sulphate are having highest number of customers.
6. Most of the customers are loyal to BSL because most of the customers
are dealing with Bokaro steel plant for more than 4 years.
7. Roadways are the most common mode of transportation used by
customers because all belongs to local market. Some of the customers
are using Railways for the transportation because by-products are
mainly transported through railways.
8. Quality, availability and transportation are main benefits that the
customers of secondary and by-products of BSL receive from Bokaro
steel plant. Only few customers responded that price and discount are
the benefits they receive from BSL.
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9. Most of the customers are not happy with the volume limit that they
receive from BSL.
10. Most of the customers responded that they are satisfied with the
information provided by BSL about the bids to be taken place but few
customers are also not happy with the information provided by BSL.
11. Majority of the customers responded that they are happy with the
order handling procedures of BSL.
12. Majority of the customers responded that that they are satisfied with
the overall experience while dealing with Bokaro Steel Plant.

CONCLUSIONS AND RECOMMENDATION

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The main issue attached with Bokaro Steel Plant secondary and by-products is
that most of the customers finds its price higher than the other brands of
secondary and by-products available in the market. Since, customers are now
conscious about cost cutting measures so they other brands over BSL.
Local market is one of the most important advantages than BSL is
enjoying over a period of time but, due to set up of new steel plants in nearby
places few years from now it will no longer be an advantage for BSL. So, BSL
should have to work on decreasing the price of its secondary and by-products
and also increase its quality.
It was found that most of the customers are purchasing secondary steel
and by-products from BSL. So, BSL should have to work on the increase of
production of these products and also decrease the price of those products to be
competitive in the market.
Most of the customers are also purchasing secondary and by-products
from TATA steel because of the lower price and easy method of purchase
although TATA steel is far from Bokaro district because of better service. So,
Bokaro steel plant should have to work on to provide better service for
customers.
Since, majority of customers dont register complain about the problem
they faced during trading although most of the problem that are registered got
executed. Hence, BSL should have to work on to improve confidence of
customers on them.
Benzene, Toluene and Ammonium sulphate are having highest
consumption among by-products. So, products of mainly these by-products
have to be increased.
The BSL secondary and by-products customers are having faith in the
quality of these products. So, this should be maintained at any cost and BSL
should have to decrease the price of its secondary and by-products to maintain
its customer base.

BIBLIOGRAPHY
Page 40

Books referred
Kotler Philip, Keller Kelvin, Koshy Abraham, Jha Mithileshwar;
Marketing Management; New Delhi, Published by Dorling Kindersley
(India) Pvt. Ltd.
Malhotra N.K. ,Marketing Research- An applied orientation, New Delhi,
Prentice Hall of India Private Ltd.
Magazine published by SAIL
Training manual
Books of organization

Websites referred

www.sail.co.in

www.metaljunction.com

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