A SUMMER INTERNSHIP PROJECT ON MARKETING/SALES AT HINDUSTAN ZINC LIMITED, DEBARI AT HINDUSTAN ZINC LTD.

DEBARI SUBMITTED IN THE PARTIAL FULFILLMENT OF TWO YEARS FULL TIME COURSE IN MASTER OF BUSINESS ADMINISTRATION RAJASTHAN TECHNICAL UNIVERSITY, KOTA

SUBMITTED BY: DEVENDRA TANK MBA(3rd SEM)

SUBMITTED TO: Ms. PRITI GUPTA Asstt. Professor

Subodh Institute of Management & Career Studies, Jaipur Batch (2010-2012)

STUDENT DECLARATION

I hereby, declare that the dissertation entitled Marketing/Sales at Hindustan Zinc Limited is an authentic work developed by me, under the guidance of Mr. S.C. Sharma (Sales Manager) submitted in partial fulfillment of the requirements for the award of the degree of Master Of Business Administration (MBA) of SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES, JAIPUR. . I also declare that, any or all contents incorporated in this dissertation have not been submitted in any form for the award of any degree or diploma of any other institution or university.

DEVENDRA TANK M.B.A. (2ndsem)

PREFACE

It is very easy to give solutions to the problems while sitting in an office but difficulties arise when they are practically implemented in the market. Training thus aims at giving the student a practical exposure of the highest level and the project helps the student in acquiring the same.

The project aims at making the student aware of the market condition and how the functional parts work in the organization. Training is an integral part of every student has to undergo the training for 45 days in company and then prepare a project report on the same after the completion of training.

On getting and opportunity to work with Hindustan Zinc Ltd. Debari, I readily agreed to have a project in the prestigious company.

During the whole training, I got lot of experience and come to know about that real business differs from the theory and learnt many new things, practically. I undertook the project on Marketing/Sales at Hindustan Zinc Limited Debari at Hindustan Zinc Ltd. Debari.

The objective of this report is to highlight various aspects of the training procedure so that training can be made effective.

ACKNOWLEDGEMENT

I am greatly indebted to the management of VEDANTA GROUP OF COMPANIES, HINDUSTAN ZINC LTD. for providing me the opportunity to do this project in their esteemed organization. I owe a sincere thanks to Mr. P.K. JAIN for having granted me the permission to undertake my training programme in HINDUSTAN ZINC LTD. I would like to thank Mr. S.C. Sharma (Sales Manager) for arranging my training in the Sales Department and extending his valuable guidance, encouragement and suggestions throughout my stint at HZL and my special thanks to Mr. Om Prakash Solanki. I am also thankful to the staff of Hindustan Zinc Ltd. for their valuable assistance and cooperation. They provided a friendly atmosphere for me to work throughout this endeavor. I owe a lot to my family who have always encouraged me and have been the main guiding force in my life. I would also like to take this opportunity to thank and express my appreciation towards the management of SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES, Jaipur. to have provided me with an opportunity to be able to interact with such an esteemed organization. It was enriching and a learning experience and I am thankful for this project to not only have served as an opportunity to enrich my professional insight but to make me conscious of the need for a healthy lifestyle as well.

DEVENDRA TANK

EXECUTIVE SUMMARY

This report is on the topic Marketing/Sales at HINDUSTAN ZINC LIMITED, DEBARI, taken by me has enabled me to know the deeper perspectives of training practices in Hindustan Zinc Debari. Under going real training doing a project at this stage of a student career helps in analyzing the theoretical aspects of classroom and their implementation in practical life.

The project is undertaken for the duration of 45 days i.e. from 15 May 2011 to 30 June 2011. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

After analyzing the data I found that training helps in better performance. Majority of people stated that on-the job training programme should be organized regularly. Employees at HZL, Debari regularly attend the training programs as they find it a platform to learn new things.

In the first section of this report, company profile is given. In second section of this report, introduction and scope of training need & assessment is given. Here describes meaning of training in detail. Also in this section the training policy of HZL is given & also the training policy adopted by HZL. Third section consists of research methodology used to carry out research. This part tells us about the objective of the study.

CONTENTS

1. Introduction OF industry. 2. Introduction of Hindustan Zinc Limited, Debari. 3. Research methodology. 3.1 Title of the study. 3.2 Duration of project. 3.3 Objectives of study. 3.4 Types of research. 3.5 Scope of study. 3.6 Limitations of study. 4. Facts and findings. 5. Analysis and interpretation. 6. SWOT analysis. 7. Conclusion. 8. Recommendations and suggestions. Appendix. Bibliography.

CHAPTER 1 INTRODUCTION OF INDUSTARY

INDUSTRY ANALYSIS

Global Level-

The two contemporary technologies are roast-leaching electrolysis and Imperial Smelting process (ISP). 80% of production of zinc in world is by electro-winning process and 14% by ISP. The global production at present is about 7.2 million tonne (28% production is from Western Europe, 22% from USA, 21 % is from Asia and erstwhile USSR and China produces about 27-28%). Production of zinc in USA, Europe and UK has decreased as a result of decline in mining of zinc ore and concentrates. Manufacture of Zinc in these countries is dependent on import of concentrates. Canada, Peru, China, former USSR have increased their production of zinc and there is increase in capacity build-up in Canada, Peru, China, India, Brazil, Mexico and some other countries.

According to an forecast from the International Lead and Zinc Study Group, in 2008, global zinc mine production increased by 3.9% to 11.6 million tons, refined metal production by 5.1% to 11.9 million tons, and consumption by 3.8% to 11.8 million tons. This leaves an excess of 150,000 tons of metal on the market, with a larger surplus anticipated in 2009. Increased mine production was driven by expansions in Latin America and increased output in China, India, Iran, and Kazakhstan. Metal production rose as a result of increased output in China and India. A decline in zinc consumption in Europe and the United States during the year was offset by increased consumption in countries with emerging markets, particularly China, as well as Brazil and India. Chinas continued growth in demand was supported by the increased production of galvanized productsespecially those used in transportation (highway barriers) and communication (galvanized iron towers) infrastructure.

Zinc prices continued to decline during 2008 as the metal market remained in surplus over the year. The LME cash price for zinc in October 2008 averaged $1,301 per metric ton, an approximate 70% decline in value from its peak reached in 2006. A wave of zinc mine closings and cutbacks (particularly in Australia, Canada, and the United States) began around midyear as prices began to fall below operating costs, and a few smelters announced production cutbacks towards the end of the year in order to prevent an accumulation of stocks. Mines in New York and Tennessee closed in 2008 because of low zinc prices.

World Resources: Identified zinc resources of the world are about 1.9 billion metric tons. Substitutes: Aluminum, plastics, and steel substitute for galvanized sheet. Aluminum, magnesium, and plastics are major competitors as die-casting materials. Aluminum alloy, cadmium, paint, and plastic coatings replace zinc for corrosion protection; aluminum alloys substitute for brass. Many elements are substitutes for zinc in chemical, electronic, and pigment uses.

Indian Level-

The country is endowed with huge resources of many metallic and non-metallic minerals. Mining sector is an important segment of the Indian economy. Since Independence there has been a pronounced growth in the mineral production both in terms of quantity and value. India produces a many as 86 minerals which include 4 fuels, 10 metallic, 46 non-metallic, 3 atomic and 23 minor minerals (including building and other materials).

Zinc industry in India is going to witness another era of transformation with the commencement of trial production on Vedanta Resources expansion project. With the mounting pressure on imports that forcing integrated producers to expand capacities in order to meet the skyrocketing demand, Vedanta Resources plc, the London-listed metals and mining major, brought new life to zinc industry which is expected not only to continue the overall industrys growth saga but to supply to the rest of the world within no time.

The Indian zinc industry entered its transformation phase with the privatization of the largest zinc producer, Hindustan Zinc Ltd, in favour of the Sterlite Group in April 2002. The domestic zinc industry is now completely under the private sector and is in the midst of a serious expansion programme. By 2010, India is expected to attain complete self sufficiency in meeting its zinc demand.

The government has chalked out enormous infrastructure development plans which if in would consume a hot of galvanized steel. As no galvanising in predicted without zinc, therefore, zinc consumption is expected to boost in India. Zinc demand is estimated to grow at 12 to 14 per cent per annum mainly due to increase in galvanizing capacity, which accounts for 70 per cent of zinc metal consumption in the country. The Indian lead industry is estimated to grow at a pace of 8 per cent per annum. The main driver for this growth is the automotive and UPS/ Inverter segment. Therefore, the future looks bright.

Major Players in Industry

Top zinc producing companies: XStarta plc, OZ Minerals, Teck Cominco Ltd, Glencore International AG, Hindustan Zinc, Anglo American Plc, Volcan Compania Minera S.A.A., Boliden AB, Votorantim Metais Ltda, Lundin Mining Corp.

GRAPHICAL REPRESENTATION OF WORLWIDE ZINC MINE PRODUCTION GEOGRAPHICHAL DISTRIBUTION OF ZINC MINE PRODUCTION

Top zinc producing mines: Century, Rampura Agucha, Red Dog, Iscaycruz, Brunswick #12 Mine, Greens Creek Mine, Mt. Isa, Tara Mine, Lisheen, Antamina

 Top zinc producing countries: China, Peru, Australia, USA, Canada, Mexico, Kazakhistan,

TOP ZINC PRODUCING COUNTRIES*

ZINC AND ITS USES

Zinc Coatings on Steel One of the biggest uses of zinc is in making protective coatings for steel. The development of the wide range of zinc coatings arose from two happy accidents of chemistry, the relatively slow and predictable rate of atmospheric corrosion of zinc compared with steel, and the relative positions of zinc and iron in the electrochemical series. Zinc will corrode preferentially to give cathodic protection to iron when both are in contact in an aqueous medium. This is used to good effect to protect immersed structures such as ships hulls, drilling rigs and pipelines. It also means that any bare areas in a zinc coating on steel, caused by damage or operations such as cutting or drilling, are still protected by the surrounding zinc. Taken together, these two factors provide the basis of a unique corrosion protection system which uses some 4 million tonnes of zinc annually to protect around 100 million tonnes of steel. This represents almost half the total world consumption of zinc.

Other Zinc Coatings Originally, zinc coatings were applied by hot dip galvanizing. This involves dipping prepared steel in molten zinc, figure 1. This was done mainly with fabricated steel or with sheets of steel, many of which were profiled to produce the ubiquitous corrugated iron. The first development from this was the production of continuous strip steel with a galvanized coating. Refinements of this process today account for the greatest part of steel carrying zinc coatings.

Other processes are available and are used where their specific characteristics are required. These include electroplating (also known as electrogalvanizing), flame sprayed coating, sherardising, mechanical plating and using zinc rich paints.

Recent Zinc Galvanising Alloys Process developments in continuous galvanizing have enabled a range of coatings to be produced with very closely controlled thickness and surface finish. These can be formed and joined without significant damage to the protective coating. Along with these developments, a series of alloys for coatings have been produced. The most important of these are Galvalume and Galfan. Galvalume consists of about 55% aluminium and 45% zinc with a small amount of silicon. It is being used extensively around the world as it has better atmospheric corrosion resistance than pure zinc however, it loses the ability to protect any exposed steel such as that at cut edges. Galfan is a zinc, 5% aluminium alloy containing small amounts of rare earth metals which has a substantial and growing niche market in which its properties are valuable. Its corrosion resistance is better than that of zinc and it retains some cathodic protection capability.

Zinc Batteries Zinc based energy systems have tremendous advantages including high specific energy, recyclability, safety and zero emissions. Its not surprising then that zinc is used in the manufacture of a variety of battery chemistries, both primary and rechargeable, consumer and industrial.

The most well known of these chemistries are the primary zinccarbon and alkaline batteries, which together dominate the standard AAA, AA, C and D size consumer battery market. Zinc/Air and Zinc/Silver batteries are also widely used in the electronics industry to power hearing aids, wrist watches, calculators and the like. Industrial Zinc/Silver and Zinc/Nickel batteries are of critical importance in a variety of aeronautic and military applications; while larger Zinc/Air cells have been developed to power electric vehicles and Remote Area Power Supply (RAPS) installations. The zinc air cell is a particularly interesting technology because it acts as a partial fuel cell using the O2 from air as the cathode. There are portable primary zinc/air batteries and industrial primary zinc/air batteries. There are also electrically rechargeable zinc/air batteries that use a bifunctional oxygen electrode for charge and discharge, and mechanically rechargeable zinc/air batteries that require the replacement of discharged anodes.

Zinc Use in Brass The Brass Family Brass is not a single unique metal. Rather, the brasses comprise a family of copperbase alloys in which zinc is the principal alloying element. The amount of zinc present in these alloys ranges from 10% to more than 40%. Besides its traditional use for door handles, lighting fixtures and decorative objects, brass is now an increasingly popular material with architects, interior designers and consumers. Brass has a warm, natural colour and feel. Brass is also a hygienic material - when used for handles, railings and hardware, it has the added benefit of being bacteriostatic. The names given to alloys in the brass family are, in some cases, as colorful as the metals themselves. Historically and technically, brass is defined as any alloy in which the principal constituents are copper and zinc. Thus, all brasses contain zinc, although other elements may be present. That convention notwithstanding, design parlance collectively identifies all of these alloys as "bronzes", mainly because of their similar uses, colors and weathering characteristics. For example, designers and architects speak of "white bronzes", "yellow bronzes", "statuary bronzes" and even "green bronzes" (after weathering). In fact, the majority of the metals so identified are brasses, or alloys of copper and zinc. Cast brasses offer almost infinite possibilities for artistic expression, not simply for statuary, but as decorative hardware, innovative plumbing fixtures and architectural details. Moreover, cast brasses can be selected by color to match - or contrast - the colors of most wrought brass alloys, an important advantage. Ageless beauty The brasses we normally think of are bright yellow in color. Brasses can retain that color indefinitely if properly protected with suitable finishes, but the way brasses change color as they age opens an entirely new dimension to their use in architecture.

The very pleasing - and from a corrosion standpoint, very protective - natural patinas that brasses assume as they age have become synonymous with durability and lasting quality. Architects, designers and sculptors take creative advantage of brass's gradual change in appearance to underscore the timelessness of their structural creations.

Today, it is possible to accelerate brass's ageing process through the application of chemical treatments. These "artificial patinas" create within hours the protective mineral surface finishes that would take decades to form in nature. Alternatively, durable lacquers and polymeric laminates are now available that can retain the natural beauty of new metal for years, whether indoors or exposed to the atmosphere. The recent development of extremely age-resistant protective finishes, including powder coatings and vapor-deposited organic coatings, is one of the major driving forces behind brass's growing popularity. Interestingly, some architects have found that the combination of aged patinas and bright "new" metal finishes is especially appealing. The variety of surface finishes and colors available in brass is one more expression of the metal's almost endless variety.

CHAPTER 2 INTRODUCTION OF HINDUSTAN ZINC LTD. DEBARI

ABOUT HINDUSTAN ZINC

HISTORY
Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India on 10th January 1966 as a Public Sector Undertaking. In April 2002, Sterlite Industries (India) Limited made an open offer for acquisition of shares of the company consequent to the disinvestment of Government of Indias stake (26%) including management control to Sterlite and pursuant to the regulations of SEBI Regulations 1997 acquired additional 20% of shares from public. In August 2003, Sterlite Industries acquired additional shares to the extent of 18.92% of the paid up capital from Government of India (GOI). Milestones (Post Disinvestment)

2007 Chanderiya Hydrometallurgical Zinc Smelter (Hydro II) commissioned o 63.2 MW Wind Energy Project commissioned 2006 Chanderiya Ausmelt Lead Smelter commissioned. o Sindesur Khurd Mine began production. 2005 Chanderiya Hydrometallurgical Zinc Smelter (Hydro I) commissioned along with a 154 MW coal based captive power plant. 2003 Sterlite Industries acquires 18.92% stake in Hindustan Zinc from Government of India 2002 Sterlite acquired 26% stake in Hindustan Zinc from the Government of India. Consequent to disinvestment a further 20% is bought from market through open offer.

Board
Shri Agnivesh Agarwal, Chairman. Smt. Ajita Bajpai Pande, Director Shri S. K. Mittal, Director Shri A. K. Singh, Director Shri Nand Kishore Shukla, Director Shri Anil Agarwal, Director Shri Navin Agarwal, Director Shri K. K. Kaura, Director Shri Tarun Jain, Director Shri M.S. Mehta, CEO & Whole-time Director

HIGHLIGHTS

One of the worlds largest integrated zinc and lead producer Refined zinc production capacity 669,000 tonnes per annum Refined lead production capacity 85,000 tonnes per annum

Operational Highlights of Hindustan Zinc

Vision & Mission

Vision Be a world-class zinc company, creating value, leveraging mineral resources and related core competencies. Mission

Be a lowest cost zinc producer on a global scale, maintaining market leadership One million tonne zinc-lead metal capacity by 2010 Be innovative, customer oriented and eco-friendly, maximizing stake-holder value.

Assets & Locations

Hindustan Zinc is a vertically integrated company with mining and smelting operations located mainly in the State of Rajasthan and in the State of Andhra Pradesh.

OPERATIONS

MINING Rampura Agucha Mine Commissioned Location Capacity Details 1991 225 km north of Udaipur, Rajasthan, India 5.00 million tonnes per annum ore An open cast mine and good ore grade leading to higher recovery and overall low cost of production. Onsite concentrator to produce Zinc concentrates. ISO 9001:2000, ISO 14001:1996, OHSAS 18001:1996

Certifications

Rajpura Dariba Mine Commissioned Location Capacity 1983 75 km north-east of Udaipur, Rajasthan, India 0.6 million tonnes per annum ore

Rajpura Dariba Mine An underground mine with onsite concentrator and two vertical access shafts. Mining is done through vertical crater retreat and blast hole stoping. Ore is crushed underground before hoisting and stockpiling for secondary and tertiary crushing. Certifications ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999, SA 8000: 2001

Sindesar Khurd Mine Commissioned Location Capacity 2006 80 km north-east of Udaipur, Rajasthan, India 0.3 million tonnes per annum ore

SMELTING Hindustan ZincLtd. operates smelters using, Roast Leach Electro-Winning (RLE), hydrometallurgical (Debari, Vizag and Chanderiya Smelters), ISP pyrometallurgical (Chanderiya Lead Zinc Smelter) and Ausmelt (Chanderiya Lead Smelter) process routes. Chanderiya Lead Zinc Smelter Complex Location Lead Zinc Smelter 120 km from Udaipur, Rajasthan, India Commissioned in 1991 Imperial Smelting Technology UK

Gone through a series of debotlenecking 105,000 tonnes per annum of Zinc 35,000 tonnes per annum of Lead 120 tonnes per annum of Silver Hydrometallurgical Zinc Smelter Hydro I Commissioned in 2005 Roast Leach Electrowinning Technology with Lead Silver Residue Recovery 210,000 tonnes per annum of Zinc

Hydrometallurgical Zinc Smelter Hydro II Commissioned in 2007 Roast Leach Electrowinning Technology with Conversion Process 210,000 tonnes per annum of Zinc Commissioned in 2006 TSL Technology from Ausmelt-Australia Cansolv Technology for Sulphur Recovery 50,000 tonnes per annum of Lead Commissioned in 2005 Built by BHEL 2 x 77 MW Commissioned in 2007 Built by BHEL 80 MW Certification Highlights

Lead Smelter

Coal Based Captive Power Plant

ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999

Largest single location Zinc-Lead Smelter Complex in the World Worlds largest and latest generation roasters State-of-The-Art DCDA acid plants & Tail Gas Scrubber. Cansolv plant for 100% sulphur capture from Ausmelt Lead Furnace. Residue management using Jarofix Technology Zero discharge

Products Range

Special High - Slabs Grade Zinc (SHG)

(25 kgs)

Jumbo (1,000 kgs) Prime Western Zinc (PW) Lead Cadmium Silver Sulphuric Acid - Slabs - Slabs (25 kgs) (25 kgs)

- Pencils (160 gms) - Bricks (30 kgs) - + 98.5% concentration

Debari Zinc smelter Location 14 km from Udaipur, Rajasthan, India Hydrometallurgical Commissioned in 1968 Zinc Smelter Roast Leach Electrowining Technology with Conversion Process Gone through a series of debotlenecking 88,000 tonnes per annum of Zinc Captive Power Generation Certifications 29 MW DG Set BEST4 Certified Integrated Systems ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999, SA 8000:2001

Highlights

DCDA acid plant & Tail Gas Scrubber. Zero discharge

Products Range High Grade Zinc (HG) Cadmium Sulphuric Acid - Slabs (25 kgs) Jumbo (600 kgs) - Pencils (150 gms) - + 98% concentration

Vizag Zinc smelter Location 17 km from Vishakapatnam, Andhra Pradesh, India Hydrometallurgical Commissioned in 1977 Zinc Smelter Roast Leach Electrowining Technology with Conversion Process Gone through a series of debotlenecking 56,000 tonnes per annum of Zinc Certifications BEST4 Certified Integrated Systems ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999, SA 8000:2001

Highlights

Acid plant with Tail Gas Scrubber. Zero discharge

SALES & MARKETING Of HZL

SALES & MARKETING ORGANIZATIONAL CHART

(Mgr. Comm.)

S.C. SHARMA
(Jr.Exe. Comm.) (Jr.Exe. Comm.)

ANIL KUMAR JAIN

YATISH CHOPRA

(Sr. Assistant.)
D.L. PATEL

(Head Clerk.)
OM SOLANKI

(Head Clerk.)
UMESH PUROHIT

(Head Clerk.)
R.C. MAKHEEJHA

(Sr. Assistant.)
I.L. DOSHI

(Sr. Assistant)

(Sr. Assistant.)
S.L. LOHAR

(Jr.Despatcher.)

(Jr.Despatcher.)

(Head Helper.)

MANGU KHAN

Mohd. ASLAM KHAN

Dispatch of Finished Goods to Customers/Stock Points & Realization of Payment | Input --- Delivery Order / Stock Transfer Advice / Price Circular / Finished Goods | Pending Delivery Orders | Dispatch Programme | Intimation to Transporters | GRs from Transporters

| Allow Slip, Loading Slip / Advice | Loading | Weighment at Weigh Bridge | Invoice Preparation/Receipt of Material/Handover Invoice to Transporter | Documentation |

Credit Payment ---------------------------------------------- Advance Payment | L/C | Bank | | Central Sales Accounting Department. | | Output ----Delivery of Material, Realization of Payment and Customers Satisfaction | Mktg Office | B.G. | | Dispatch to Party | Bank |

HANDLING AND DESPATCH OF FINISHED GOODS

Scope:

Receipt of Zinc Ingot (finished) from Zinc Electrolysis Plant, Receipt of Delivery Orders, Determination & review of requirement related to the product. Dispatch of finished goods to customers against delivery orders, dispatches to stock points, inter unit transfers and internal consumption at Zinc Smelter, Debari.

References:

(A) (B)

Delivery Orders (D.O.) Stock Transfer Advice (STA)

(C) (D)

G.R. (Goods Receipt) SIV (Store Issue Voucher) (E) Zinc Material Receipt Report

Definitions:

(A) Delivery Order: Document issued by H.O. (Mktg)/ Regional Offices (Mktg) wherein payment as well as dispatch particulars of a particular item, its specification, quantity to be delivered and guide lines for preparation of invoices cum delivery challan are given. (B) Stock Transfer Advice: It is a tentative programme given under the authority of Head (Mktg.) giving details of quantity to be dispatched to various stock points during a particular month. (C) Allow Slip: A printed form issued by shift in charge for allowing lorries / tankers into the Factory based on the delivery order/stock transfer programme. Loading Slip: A printed form issued by shift in charge to dispatcher mentioning therein details of quantity of Zinc Ingot to be loaded in the truck allowed. (D) Loading Advice: A printed form issued by Shift In charge (based on the Delivery Order) mentioning therein details of quantity of Sulphuric Acid to be filled in the tanker by the Roaster & Acid Plant.

(E) SIV: A printed Performa issued by shift in charge to dispatcher duly signed by H.O.D. to Cadmium Plant for delivery of Cadmium Metal as per details mentioned in the SIV. (F) GR: Performa for receipt of goods issued by transporter

concerned for taking delivery of the material. (G) Invoice cum Delivery Challan: A document issued against

clearance of excisable commodities (Consignment wise)

showing details of dispatch particulars viz. Date, Name of Consignee, payment particulars, Quantity, Rate per Unit, Amount, Central Excise Duty, Sales Tax, Gross Amount, D.O. Number, G.R. Number Truck Number / Tanker Number wherein the material is loaded for transportation and name of transporter etc. (H) Zinc Material Receipt Report: Report being sent by Zinc

Electrolysis & Melting plant giving details regarding Date of Production, Heat Number, Number of pieces and weight.

Procedure
(i) Determination of requirement of the product Requirement of customers like Product, Quantity, delivery period and destination etc. are received from various Marketing Offices in the form of Delivery Orders. Based on these DOs pending DO list is prepared. Dispatch plan is prepared considering

requirement of major and regular customer, stock transfers, actual user and other buyers and informed to customers/representatives/transporters. (ii) Review of requirements related to the Product Any new special requirement (for which development/modification is required) received from the customers is discussed in a group comprising of DGM, MR, and OM and In charge of Sales and Dispatch. For other special requirements like Jumbo Ingots, production department is informed accordingly and follow up is done by In charge of Sales and Dispatch. (iii) The Zinc Ingots (finished) is received from the Zinc Electrolysis Plant with proper heat numbers and stacked in Zinc Yard. Zinc Ingots for dispatches /internal consumption are stacked separately.

(iv)

Dispatch of finished goods to customers is done through their authorized representative or authorized transporter. In case of dispatches to stock points, transporter authorized by Materials and Contracts department at Head Office does it.

(v) (vi)

Delivery Order is duly checked by H.O.D. Stock Transfer Advice is received under the authority of Head (Mktg.).

(vii) Dispatch programme is informed to authorized transporter and maintained in dispatch programme register. (viii) Allow slip is issued by Shift In charge, based on delivery order and dispatch programme (ix) In case of Zinc and Cadmium, tare weight is taken in presence of Security representative, partys / transporters authorized (x) (xi) representative by Weigh Bridge Attendant. Dispatch of finished goods to customers is done through their authorized representative or authorized transporter. In case of dispatches to stock points, transporter authorized by Materials and Contracts department at Head Office does it. (xii) Loading slip for Zinc and SIV for Cadmium is issued by shift in charge according to Delivery Order / STA to dispatcher on duty, who ensures that correct material is loaded under his supervision by loading contractors labor. In the case of Sulphuric acid, loading advice is issued by dispatcher, which is duly checked and countersigned by the Shift In charge to the Roaster & Acid Plant for filling the tanker by them. (xiii) For Zinc Ingots, gross weight is taken by Weigh Bridge Attendant in presence of Security representative, Dispatcher on duty and partys / transporters authorized representative. However for Cadmium, the weight as indicated by the Cadmium Plant on SIV is treated as final.

For Sulphuric Weigh Bridge Attendant takes acid gross weight in presence of Security representative. (xiv) For dispatch of finished goods tare weight as well as gross weight is taken on Electronic Weigh Bridge, which is being calibrated by Instrumentation department periodically. (xv) Preparation of invoice cum delivery challan by Shift In charge is done strictly on the basis of instructions given in the D.O./as per STA after finalization of Net weight. (xvi) List of Documents Retention period 1. 2. 3. 4. 5 6 7 8. Allow slip Loading slip Loading Advice Invoice Cum Delivery Challan Daily Dispatch & Pending Order Monthly Allocation for Dispatch Daily Dispatch Report Delivery orders ZSD/S&D/F01 ZSD/S&D/F02 ZSD/S&D/F03 ZSD/S&D/F04 ZSD/S&D/F06 ZSD/S&D/F08 ZSD/S&D/F09 ZSD/S&D/Zn One Year One Year One Year Five Years One Year One Year One Year Five Years

Work Instruction for Shift In charge & Dispatcher for Dispatch of Finished goods

1.

Shift In charge to Co-ordinate with Zinc Electrolysis plant and give necessary instructions to dispatcher for proper stacking of Zinc lots in the Zinc Yard.

2.

At the time of delivery, dispatcher to check quantity and pieces loaded correctly in the truck / wagon / container as per the loading slip issued by Shift In charge.

3.

Dispatcher to check Tare weight and Gross weight at the time of delivery at Electronic weighs bridge for Zinc Ingots.

4.

Dispatcher to submit weighment slip to shift in charge after weighment and counting of number of pieces by Security representative and signature of concerned agencies for preparation of Invoice cum delivery challan. Verify signature/authority letter / G.R. of the Partys authorized representative / Transporter.

5.

6. 7. 8.

Check Delivery Order (D.O.). Issue Allow-slip. Write the details of truck No., D.O. No., G.R. No., Name of party etc. in the register meant for.

9.

Issue loading slip to dispatcher in case of Zinc Ingot, Loading Advice for Sulphuric Acid and S.I.V. for Cadmium.

10.

Verify loading advice after loading of the truck under the supervision of dispatcher deputed.

11. 12. 13. 14.

Verify loading slip and weighment slip. Prepare Invoice cum delivery challan. Obtain signature of party/transporters representative. Handover the Invoice cum delivery challan to Transporter/ Partys representative.

Company to perform and coordinate its marketing functions effective. Also this enhances convenience to customer. 1) NORTH ZONE: For this zone the regional are in the state of Haryana, UP, Punjab, Hibachi Pradesh, and Delhi. The stock points in the region are Gaziabad, Sahibabad, Faribabad, and jagadhari, Chandigarh. Delivery orders through Delhi office.

CENTRL ZONE the regional marketing offices are located at New Delhi, Hyderabad, Kolkata, Mumbai, Bangalore, Jaipur and Udaipur.

HZL has opened a large number of stock points spread all over the country: 1) KOLKATA 2) GAZIABAD 3) FIRIDABAD 4) NAGPUR 5) TARAPUR 6) INDORE 7).CHENNAI 8).HYDERABAD

PRICING STRATEGY
Hindustan Zinc uses different pricing strategy for better grip on the market and to face stiff competition and also to achieve maximum net sales realization multi dimensional pricing approach helps Hindustan zinc to stand in market different types of pricing strategies are elaborated and supported by graph wherever required.

Competitors parity Pricing:

Hindustan Zinc mainly price the product with the strategy of competitors price parity prices of the competitors play the major role in the strategy price of the zinc ingots is kept near to the price of the competitors

End use pricing

End use pricing is that pricing method in which prices are decided by company not by the LME because the prices of LME are higher ,if the customer wants to buy capital goods then he prefer this policy

Day Settlement pricing

Sometime the customer need to buy the product according to the day to day price, in that case LME decides the price according to the day to day settlement.

MONDAY TO THURSDAY PRICING POLICIES

LME decides the average price weekly from Monday to Thursday and also from Monday to Saturday.

Contract pricing
Hindustan Zinc follows the contract pricing policy for long-term contract in order to achieve the continuous selling of sulfuric acid since sulfuric acid is the by product in preparation of ZINC and is produced in large quantity as compared to the production of ZINC also being a hazardous waste makes it necessary to sell off sulfuric acid. Sometimes the prices are lower than the production cost that is when the demand is very less so to avoid this loss company goes in for the long term contract of duration from 6 months to 1 year. Although nowadays there is a huge demand in the market therefore prices are high but when prices are low revenue generated from these long-term contract keep the boat on water.

Short Term Contract Pricing

Too much dependency on long-term contract cannot be done, as there are some drawbacks of long-term contract like mostly keeping the prices lower then the average market price due to the bulk buying of sulfuric acid. Also too much market volatility may cause the uncertainty in revenue generation therefore Hindustan Zinc has undergone the shorter format for the contract viz. short term contract under this contract scheme customers or the retailers are covered for contract under 15to 30 days for a fixed prices this not only dilutes the effect of market volatility but also makes a good will among the customer as prices may change too much during a fortnight or a month. This pricing was started from June 2008 by Hindustan zinc.

Spot pricing
Many a times the customer approach the firm for urgent requirement for the product Hindustan Zinc facilitates these customers with pricing method of spot pricing

customer are allowed to fill in a form through e-sales mate programme on company website where they can fill in the required quantity the product major advantage of this method are fast execution of the trade and pricing irrespective of the constraints of future demand the days price are then given by the company if the customer agree on the price the he can take the product from any of the plant location of the firm.

PLACE

Hindustan Zinc supplies zinc from its three plant locations Viz. Debari Zinc Smelter Udaipur, Rajasthan, Chanderiya Lead Zinc Smelter Chittorgarh, Rajasthan, and Vishakhapatnam Zinc Smelter, Vishakhapatnam, Andhra Pradesh. Although the positions are not spread all over the country but strong logistic department facilitates Hindustan Zinc Limited to penetrate to every part of the country Strong logistic operation makes it possible for Hindustan Zinc Limited to deliver the goods to every part of the country.

For the international market Hindustan Zinc Limited do the frequent export threw JNPT port and Mundra port. Hindustan Zinc has its own transport system for port and export purpose.

China is hub for metal market and Chinese are highest importer of Zinc and lead around the world. China has 52% shares in total zinc consumption around world. Hindustan zinc has a long-term relationship with some Chinese traders.

Mainly, Hindustan zinc targeted the developing nations for export and expansion of export programme. Most of Asian countries are in developing phase so we get good opportunities in Asian market. Asia itself is major consumer of zinc.

Threw this depots we manage our business network and it help us to overcome the problem of geographical barrier.

PRODUCT

Main products:

1.

ZINC INGOTS:

Special high grade-99.99% High grade -99.95% Premium grade-99% 2. 3. 4. ZINC UNWROUGHT: LEAD: CADIUM; 99%

5. SILVER 6. SULPHURIC ACID; 98%

INTERMEDIATE PRODUCTS:

1. CALCINE 2. ZINC SULPHATE 3. ZINC DUST

B PRODUCT:SCRAP AND WASTAGE

CHAPTER 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

TITLE OF THE STUDY

SALES & MARKETING AT HINDUSTAN ZINC LIMITED DEBARI

DURATION OF PROJECT
The duration of project is from 16 may 2011 to 30 june 2011

OBJECTIVES OF THE STUDY

1. To analysis the present Marketing strategies of HZL, debari 2. TO evaluate the present satisfaction level of the client with operation of HZL 3. To identify specific complaints of clients

RESEARCH METHODOLOGY

Define problem

Research Objective

Develop the Research plan

Collect Information

Analyze Data

Present Findings

Step 1 Develop Research Plan: A) Data source: 1. Primary Data: - Collected through direct questionnaire. 2. Secondary Data: - Secondary data was reviewed in order to prepare questionnaire. Information was gathered from several magazines, periodicals, companys brochures and website of HZL.

3. Method of Research: - Direct Survey methods->in this one, we approached the executives and questionnaires were filled by them. 4. Research Instrument: - Direct questionnaire (Close ended). (B) Sampling Plan:1. Sampling Unit: - Non-Executives of various department of HZL, Debari. 2. Sample Size: - An optimum Sample of 60 was used to obtain reliable result. 3. Sampling procedure: - In this stratified Random sampling was used.

Step 2 Collection of Data:-

Data was collected through questionnaire.

Step 3 Analysis and collection of information:We adopted stratified random sampling approach and select total 60 nonexecutives who are employed in HZL, Debari. The questionnaire was administered for collecting relevant data which were analyzed. An instrument contain and set of 20 question regarding that whether the non-executives are satisfied with training programs provided by HZL, Debari.

Scope of Study

The research will help HZL to find out the factors that would help in increasing their net sales & earning. It will help HZL to review their quality, promotional method. It will explore the way to improve Buyer Organization satisfaction. It will also explore the way to come up as increase in the market share.

LIMITATIONS OF THE STUDY

1. The

sample size is not expected to be adequate which may be a major limitation of the project. 2. Because the survey is going to be online. Response rate is expected to be low.

3. Extreme rating by few of the clients may affect the overall result of the survey.

DATA ANALYSIS
1) Is your organization satisfied with the Handling and Packaging of our Product?

Category Yes No Total

Number of respondent 25 5 30

Percentage 83.33% 16.67%

% of respondents

yes no

ANALYSIS- most of the respondent satisfied with the handling and packaging of product

2) Is your organization satisfied with the delivery time of product?

Category Yes No Total

Number of respondent 24 6 30

Percentage 80% 20%

% of respondents

yes no

ANALYSIS- most of respondents satisfied with delivery time of product

3) Is your organization satisfied with the quality of our finished goods?

Category Yes No Total Number of respondent 27 03 30 Percentage 90% 10%

% of respondents

yes no

ANALYSIS-Mostly respondent satisfied with the quality of the product

4) Is your organization Satisfied with the supply chain system?

Category Yes No Total

Number of respondent 22 8 30

Percentage 73.33% 26.67%

% of respondents

yes no

ANALYSIS-Mostly number of respondent satisfied with supply chain system

5) Are you satisfied with the pricing strategies of our organization?

Category Yes No Total

Number of respondent 23 7 30

Percentage 76.67% 26.33%

% of respondents

38 36 34 32 30 % of respondents

6) Which types of pricing strategies your organization prefer?

Category Contract pricing Competitor parity pricing Day settlement pricing End user pricing Total

Number of respondent 10 11

Percentage 33.33% 36.67%

04

13.33%

05 30

16.66%

% of respondents
40 35 30 25 20 15 10 5 0 contract pricing comp. parity pricing day end user settlement

% of respondents

ANALYSIS- Different organization prefer different pricing strategies according to their preference

7 Your observation on E-Salesmate lead to saving of time, man hour and resources

Category Most Sightly Highly beneficial Cant say Total

Number of respondent 10 11 04 05 30

Percentage 33.33% 36.67% 13.33% 16.66%

% of respondents
40 35 30 25 20 15 10 5 0 most slightly highly beneficial can't say

% of respondents

8 Your experience with sales and logistic staff at the delivery point

Category Ignorant Prompt Good Cant say Total

Number of respondent 10 04 11 05 30

Percentage 33.33% 13.33% 36.67% 16.66%

% of respondents

ignorent prompt good can't say

9 Your experience regarding complain handling process

Category Mostly resolved Sometime resolved Never resolved Cant say Total

Number of respondent 10 11 04 05 30

Percentage 33.33% 36.67% 13.33% 16.66%

% of respondents

mostly resolve sometime resolve never resolve can't say

SWOT ANALYSIS

SWOT analysis is a good management approach, which helps the manager to analyze the strength, weakness, opportunity and threats. STRENGTH: 1. Well set up organization structure: The organization is well defined and this helps in better coordination at various levels of management. Proper authority is delegated at lower levels and responsibility of each personnel is well defined. 2. Human Resource Development: The progressive programs are designed to fill up gaps in the knowledge and skills of employees. Executives are trained through various executive training programs. On the job as well as off the job training programs are conducted for the workers at the shop floor level. 3. Welfare Activities for workers: Various welfare activities are under taken by the company, such as: Subsidize canteen facility. Residential facility with subsidized electricity and water supply. Free medical facility for workers at their working place. The company provides free safety equipments security of employees through PF, gratuity scheme, pension plan and accidental claims. 4. Welfare activities for society: Family planning camps, adult education programs, various events to promote games, sports and cultural activities.

5. Environmental Control Method: The various pollution control measures are operating effectively maintaining ambient air quality and effluent discharge at HZL smelters, mines and townships. 6. Leading producer: HZL is the leading producer of zinc in the country and has the market share of about 70% so he is the market leader.

WEAKNESS: 1. Extra Manpower: I think that there is extra manpower still even after the privatization of the company and the operating cost can be reduced if we can reduce the unwanted manpower.

OPPORTUNITIES: 1. Increasing Demand: Demand for zinc is increasing day by day but supply of zinc and lead is not fulfilling the requirement. 2. Especially zinc is used for galvanization, paints, pharmaceuticals, automobile etc.

THREATS: 1. Globalization: In the present sense, the entire world is experiencing an explosive growth of global trade. 2. Globalization has provided an opportunity to expand business it has lead to simultaneous increase in international competition. 3. Government Policies:

Instability within the country is major threats to all business organization whether it is a public sector or private sector undertaking.

CONCLUSION
1. The company is regularly increasing the production capacity as there is demand in the market. 2. The various uses of zinc in various products the company has covered customers of virtually all kind as we can see from the above customer list.

3. There are only two major players of zinc in India i.e. HZL and Binani so there is virtually no competition in the market as the HZL is having all major mines with him. 4. The sales is increasing every year it shows that increasing demand of zinc in the market.

SUGESSIONS

1. As the demand is more than the supply in the domestic market and nearly 25% of demand is fulfilled by importing it from other countries so, HZL should search more mines and should increase the production as there is still some demand left in the domestic market even though the company is having market share of nearly 70%.

2. As we have seen from the above customer list that most the customers are those which are engaged in galvanizing of steel and having less customer of batteries so, company look more zinc batteries company , zinc die casting companies, zinc sheets manufactures which is used in infrastructure.

3. Zinc consumption in India is expected to grow at 8%-10% p.a due to the growing market of automotive and industrial batteries from current demand, so company should increase its production capacity to increase in sales and earn more profit.

BIBLIOGRAPHY

BOOKS AND JOURNALS

Annual Report HZL Zinc News HZL Debari Zinc Smelter

INTERNET SITES www.researchandmarkets.com www.hr-guide.com www.miningtopnews.com www.indianmetals.com www.hzlindia.com www.mines.gov.in