Nitish Summer Project

“A STUDY ON THE PRICING AND SALES STRATEGY OF SECONDARY
AND BY-PRODUCTS AT SAIL (BOKARO)”
SUMMER PROJECT REPORT
Submitted to
RAJAGIRI BUSINESS SCHOOL
In partial fulfilment of the requirement for the award of
POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)
2009-2011
BY
NITISH KUMAR SINGH
ROLL NO: P09128
Rajagiri Business School
Rajagiri Valley
Kochi- 682 039
RAJAGIRI BUSINESS SCHOOL, KOCHI Page 1

Project executed at
SAIL
(A Government of India Enterprise)
Bokaro Steel Plant
Bokaro Steel City, Dist- Bokaro (Jharkhand)
Under the guidance of

Mr. Govind Barman
Junior Manager (Marketing)
(Project Guide)
Bokaro Steel Plant
Jharkhand
Mr. K. Tharu Benny

(Faculty Guide)
Rajagiri Business School
Kochi, Kerala

DECLARATION
I, Mr. NITISH KUMAR SINGH, the undersigned, hereby declare that the
project work titled “the Pricing and Sales strategy of Secondary
and by-products at Bokaro Steel Plant” is bonafide work
undertaken by me at SAIL (Bokaro) in Partial fulfilment of the regulations of
Rajagiri Business School for the award of the PGDM.
I further declare that no part of this report has been replicated from any other
Project work, article or book.
Place: Bokaro steel City

Date: (NITISH KUMAR SINGH)
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. These people really
been kind enough in providing me all kind of available data and information.
I would like to thank to Mr. A.J. KACHHAP (DGM, STORE), K.K.

SANYAL (AGM, BPP), Mr. N. KHASNOBIS (Sr. Manager, SSD), Mr.
A.K. MISHRA (AGM, S & C), Mr. C. SRIKANTA (DGM, Marketing) and
Mrs. MEENA KAMAL (Sr. Manager, Marketing) and I must pay special
thanks to Mr. GOVIND BARMAN (Jr. Manager, Marketing). All are from
Bokaro Steel Plant.
I extend my sincere thanks to Mr. K. Tharu Benny, Faculty Member, Rajagiri

Business School, Cochin for having spared his valuable time with me and for all
the guidance given in executing the project as per requirements.
So, be taking a great opportunity to thank those entire people who help
throughout my project.
I also express my thanks to the officers and staff of the training institute, Bokaro
Steel Plant.

NITISH KUMAR SINGH
CONTENTS PAGE

CHAPTER 1
EXECUTIVE SUMMARY

1.Executive Summary
This study investigates “the Pricing and Sales strategy of Secondary and by-
products at Bokaro Steel Plant”. This study is done for SAIL; BSL
The present study was undertaken to see the mode of sale and pricing methods
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 BSL.
Various steps involved 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.
Data were mainly collected from marketing department of BSL.
BSL is the largest Steel manufacturing sector of India and is top ranked in the
global fortune 500 companies.
During my training I had to find out mode of sale of secondary products of

BSL. Primary products are sold by CMO, Delhi. I passed through various stages
of problems and difficulties to accomplish the task of project work but it was a
privilege for me to take this opportunity a challenging work to study and

observe "pricing and sales strategy of secondary and by-products in BSL",
which is a unit of SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in

competitive environment; Customer's satisfaction like quality is a journey and
not a destination. It is essential that everyone in the company have a clear
understanding of what customer satisfaction means if the plant aim to achieve
leadership in customer satisfaction. While improved customer satisfaction is
necessary for ensuring prosperity of the company must also be recognized that
ability of the company to satisfy its customers would depend on its ability to
continuously improve its profit and growth.
The basic objective behind the study carried out by me is to study the major
contribution of Secondary product to total 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 an employment in small scale
industries and developing the economy.

CHAPTER 2
INDUSTRY PROFILE

India is the eighth largest producer of crude steel in the world, accounting for
3.37% of the global steel production in 2005. India’s finished carbon steel
production grew to reach an estimated 42.63mmt in 2005-06; primary producers
alone contributed about 38% whereas secondary producers contributed the rest.
With reference in changes in economy Indian steel industry is poised for
massive expansion. Dramatic consumption growth over the last few years has
stimulated enormous expansion plans, facilitated by a relatively unexploited
iron ore raw material base. India is now being hailed as the new China, where
crude steel production soared from less than 100m tonnes in 1995 to over 400m
tonnes in 2006.This report focuses on detailed study about the Indian Steel
Industry. Steel became an integral part of development. It discusses basic steel
manufacturing processes like Blast Furnace and, Electric arc Furnace, industry
value chain with a special reference to major raw material trends and price
trends of steel products. Demand –supply dynamics has been discussed along
with key growth drivers and Export-Import scenario. It also talks about Issues &
challenges of the steel industry, mergers and acquisitions, government policies
and regulations. Top 10 Leading Players in steel Industry have been profiled
namely Steel Authority of India (SAIL), Tata Steel, ESSAR Steel and JSW
Steel in this report and analyzed on the basis of financial and operational
performance and compares their Competitive Positioning along with future
outlook in the light of increasing trend in investments in the domestic
industry .Steel Industry in India is on an upswing because of the strong global
and domestic demand. India's rapid economic growth and soaring demand by
sectors like infrastructure, real estate and automobiles, at home and abroad, has
put Indian steel industry on the global map. According to the latest report by
International Iron and Steel Institute (IISI), India is the seventh largest steel
producer in the world.
With reference to development which revised Indian infrastructure, the origin of
the modern Indian steel industry can be traced back to 1953 when a contract for

the construction of an integrated steelworks in Rourkela, Orissa was signed
between the Indian government and the German companies Fried Krupp und
Demag AG. The initial plan was an annual capacity of 500,000 tonnes, but this
was subsequently raised to 1 million tonnes. The capacity of Rourkela Steel
Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group, is
presently about 2 million tonnes. At a very early stage the former USSR and a
British consortium also showed an interest in establishing a modern steel
industry in India. This resulted in the Soviet-aided building of a steel mill with a
capacity of 1 million tonnes in Bhilai and the British-backed construction in
Durgapur of a foundry which also has a million tonne capacity. The Indian steel
industry is organized in three categories i.e., main producers, other major
producers and the secondary producers. The main producers and other major
producers have integrated steel making facility with plant capacities over 0.5
mT and utilize iron ore and coal/gas for production of steel. The main producers
are Tata Steel, SAIL, and RINL, while the other major producers are ESSAR,
ISPAT and JVSL. The secondary sector is dispersed and consists of: (1)
Backward linkage from about 120 sponge iron producers that use iron ore and
non-coking coal, providing feedstock for steel producers; (2) Approximately
650 mini blast furnaces, electric arc furnaces, induction furnaces and energy
optimizing furnaces that use iron ore, sponge iron and melting scrap to produce
steel; and (3) Forward linkage with about 1,200 re-rollers that roll out semis into
finished steel products for consumer use.
Structural Weaknesses of Indian Steel Industry
Although India has modernized its steelmaking considerably, however, nearly
6% of its crude steel is still produced using the outdated open-hearth process.
Labour productivity in India is still very low. According to an estimate crude
steel output at the biggest Indian steelmaker is roughly 144 tonnes per worker
per year, whereas in Western Europe the figure is around 600 tonnes.

India is deficient in raw materials required by the steel industry. Iron ore
deposits are finite and there are problems in mining sufficient amounts of it.
India's hard coal deposits are of low quality.
Insufficient freight capacity and transport infrastructure impediments too
hamper the growth of Indian steel industry.
Strengths of Indian Steel Industry
• Low labour wage rates

• Abundance of quality manpower
• Mature production base
• Positive stimuli from construction industry
• Booming automobile industry
Outlook The outlook for Indian steel industry is very bright. India's lower
wages and favourable energy prices will continue to promise substantial cost
advantages compared to production facilities in (Western) Europe or the US. It
is also expected that steel industry will undergo a process of consolidation since
industry players are engaged in an unfettered rush for scale. This is evident from
the recent acquisition of Corus by Tata. The deployment of modern production
systems is also enabling Indian steel companies to improve the quality of their
steel products and thus enhance their export prospects.

2.1COMPANY PROFILE

Steel Authority of India Limited (SAIL) is the leading steel-making company in
India. It is a fully integrated iron and steel maker, producing both basic and
special steels for domestic construction, engineering, power, railway,
automotive and defense industries and for sale in export markets.
During struggle for independence, Pt. Jawaharlal Nehru, our first Prime
Minister, had a very clear vision about the role of Steel in the development of
our country. Although TATA Iron & Steel Company (TISCO) has been
establishment in 1907 marking the beginning of Indian Steel Industry followed
by Indian Steel Co. (1918), they were too small to meet the development
requirements of a big country like ours. Therefore, in the 1st Industrial Policy
Resolution of the Govt., soon after independence, Govt. decided to establish
Steel Plants in Public Sector. However, work could be started at fast pace only
in 1954, when Hindustan Steel Ltd., was formed and three Steel Plants of 1 MT
capacity each, were established with provision of further expansion at Bokaro,
Rourkela and Durgapur with assistance from USSR, West Germany and U.K.
respectively.
To improve the functioning of Steel Industry, Govt. decided to form a holding

company during 1972, which was named as Steel Authority of India Ltd.,
(SAIL) and the same was incorporated on January 24, 1973, with an authorized
capital of Rs.2000 crores.
SAIL was formed by registration of a company under the companies Act and
not by the Act of Parliament. Govt., decided to abandon the holding company
concept in 1978 and a bill was presented to the Lok Sabha. Accordingly, SAIL
was again recognized in the following manner.
Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International
Ltd., Bhilai Ispat Ltd., Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly owned
subsidiaries of SAIL merged into it and started functioning as Units of SAIL.

MECON, HSCL and NMDC become independent Companies and started
functioning under Ministry of Steel. However, Kiriburu and Meghatuburu Iron
Ore Mines were attached with BSL as their Captive Mines.
Bharat Refectories Ltd. also became independent under the Ministry of Steel
and refractory units also came under them.
Thus, SAIL, at present, is having capacity of 12 MT of crude steel through its

four integrated Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Two
special steel plants at Durgapur and Salem produce a wide range of alloy and
special steels. Marketing of the products from these plants is done through a
country wide distribution network consisting of a chain of Stock Yards and
distribution network.
SAIL today is one of the largest industrial entities in India. Its strength has been
the diversified range of quality steel products catering to the domestic as well as
the Export markets and a large pool of technical and professional expertise.
Ranked amongst the top ten public sector companies in India in terms of
turnover, SAIL manufactures and sells a broad range of steel products,
including hot and cold rolled sheets and coils, galvanized sheets, electrical
sheets, structural, railway products, plates, bars and rods, stainless steel and
other alloy steels. SAIL produces iron and steel at four integrated plants and
three special steel plants, located principally in the eastern and central regions
of India and situated close to domestic sources of raw materials, including the
Company’s iron ore, limestone and dolomite mines.
SAIL’s wide range of long and flat steel products are much in demand in the
domestic as well as the international market. This vital responsibility is carried
out by SAIL’s own Central Marketing Organization (CMO) and the
International Trade Division. CMO encompasses a wide network of 38 branch
offices and 47 stockyards located in major cities and towns throughout India.
With technical and managerial expertise and know-how in steel making gained
over four decades, SAIL’s Consultancy Division (SAILCON) at New Delhi
offers services and consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel
(RDCIS) at Ranchi which helps to produce quality steel and develop new
technologies for the steel industry. Besides, SAIL has its own in-house Centre
for Engineering and Technology (CET), Management Training Institute (MTI)
and Safety Organization at Ranchi. SAIL’s captive mines are under the control
of the Raw Materials Division in Calcutta. The Environment Management
Division and Growth Division of SAIL operate from their headquarters in
Calcutta. Almost all SAIL’s plants and major units are ISO Certified.
OWNERSHIP AND MANAGEMENT
The Government of India owns about 86% of SAIL's equity and retains voting
control of the Company. However, SAIL, by virtue of its "Navratna" status,
enjoys significant operational and financial autonomy
INTEGRATED STEEL PLANTS
1. Bokaro Steel Plant (BSL) in Jharkhand
2. Durgapur Steel Plant (DSP) in West Bengal
3. Rourkela Steel Plant (RSP) in Orissa
4. Bhilai Steel Plant (BSP) in Chhattisgarh
SPECIAL STEEL PLANTS
1. Alloy Steel Plant (ASP) in West Bengal
2. Salem Steel Plant (SSP) in Tamil Nadu
3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka
SUBSIDIARIES
1. Indian Iron & Steel Company Limited (IISCO) in West Bengal.

2. Maharashtra Electrosmelt Limited (MEL) in Maharashtra
OTHER UNITS
 Raw Material Division (RMD) at Kolkata, West Bengal
 Central Marketing Organization (CMO) at Kolkata, West Bengal
 SAIL Consultancy Division (SAILCON) at New Delhi
 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

JOINT VENTURE
SAIL has promoted joint ventures in different areas ranging from power
plants to e-commerce.
• NTPC SAIL Power Company Pvt. Ltd

Set up in March 2001, this 50:50 joint venture between SAIL and the
National Thermal Power Corporation (NTPC) operates and manages the
Captive Power Plants-II of the Durgapur and Rourkela Steel Plants which
have a combined capacity of 240 MW.
• Bokaro Power Supply Company Pvt. Limited
This 50:50 joint venture between SAIL and the Damodar Valley Corporation
formed in January 2002 is managing the 302-MW power generation and
1880 tons per hour steam generation facilities at Bokaro Steel Plant.
• Bokaro Electric Supply Company Pvt. Limited
150 Another SAIL-NTPC joint venture on 50:50 basis formed in March

2002 manages the 74 MW Power Plant-II of Bokaro Steel Plant which has
additional capacity of producing tones of steam per hour.
• UEC SAIL Information Technology Limited
This 40:60 joint venture between SAIL and USX Engineers & Consultants, a
subsidiary of the US Steel Corporation, promotes information technology in
the steel sector.
• Metaljunction.com Private Limited
A joint venture between SAIL and Tata Steel on 50:50 bases, this company
promotes e-commerce activities in steel and related areas.
• SAIL-Bansal Service Center Pvt. Ltd.
SAIL has formed a joint venture with BMW industries Ltd. on 40:60 bases
to promote a service centre at Bokaro with the objective of adding value to
steel.

• North Bengal Dolomite Limited
A joint venture between SAIL and West Bengal Mineral Development

Corporation ltd on 50:50 basis was formed for development of Jayanti
Dolomite Deposit, Jalpaiguri for supply of Dolomite to DSP and other
plants.
• Romelt-SAIL (India) Ltd
Romelt Technology developed by Russia for reducing of iron bearing

materials, which is carried out with carbon in single A joint venture between
SAIL, National Mineral Development Corporation (NMDC) and Russian
promoters for marketing stage reactor with the use of oxygen.
• Bhilai JP Cement Ltd
SAIL has also incorporated a joint venture company with M/s Jaiprakash
Associates Ltd to set up a 2.2 MT cement plant at Bhilai. Likely to
commence operations by March'2010.
BOKARO STEEL PLANT

A PARTNER IN NATION BUILDING

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 country’s 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 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.
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.
CORE VALUES OF SAIL
Core Values

Customer Consistent Commitment
Concern for Profitability
Satisfaction of Excellenc
e
People
HUMAN RESOURCE
SAIL’s total manpower at the end of 30 April, 2010 stood at around 26,288.
The company’s labor productivity 244.02 tones/man/year as on 30.04.10
Scrap and Salvage Department
As the name signifies, the department works with Ferrous [Iron & steel] scrap to
salvage it & make it useful by adding value to it. SSD has a dual role to play in

overall scheme of things in the works division. Primarily it has to supply Iron
and Steel scrap to Steel Melting Shop (SMS) as a technological input in the
Steel Melting process. Secondly, the role of SSD is to collect all the Ferrous
Scrap (waste for the place of origin) and bring it to the department to transform
it into a useful product. Every department of the plant from Coke Oven to Cold
Rolling Mill produce mental waste termed scrap. This may be in the form of
maintenance waste e.g. broken or worn out parts, damaged structure or
equipment or may be process arising. The prime products continue on their
production flow towards the final defined output, while the arising has to drop
out as they are not suitable chemically, mechanically or by size and shape. In
the shape of fish tails or irregular edge trimming or produce which are below
the planned size. In a nut shell SSD’s role is to ensure that all Iron and Steel
Scrap (unwanted at place production) are transported to site processed and
transformed to usable shape, size and quality (free of slag etc.) and transported
SMS Magnetic Scrap Yards for using as coolant in the converter bath. Surplus
scrap after supplying the requirement of scrap is offered for external sale to
generate cash resources for the Company.
TYPES OF PRODUCTS
In Bokaro Steel Plant, the finished products are categorized into three parts:

1. Prime Products: -
These are the actual products, which are originally produced for example,
blooms, billets, channels, rounds, angles etc.
2. By-Products: -
These products are not originally produced by Bokaro Steel Plant, but are
outcomes while producing the prime products.
3. Secondary Products: -
These are the defectives or rejected materials due to improper mixing of

chemical components or fail to meet the optimum requirements. Scraps
generated inside plant are also termed as Secondary products. The secondary
products used here in after will mean ferrous materials generated from various
production units which can either suitably be used for 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.
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
8. HARD MEDIUM PITCH – SOLID STATE
9. HARD MEDIUM PITCH – LIQUID STATE

NECESSITY OF SELLING THE ''SECONDARY PRODUCTS"
The net sales realization from all the Secondary products, By-Products and co-
products of BSL is around Rs.600 crores which is quite more than money the
big industries. Out of this Steel Scarp arising 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 earn 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
decided 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

Latest Price of different By-Product which BSL were sold in April & May
09 with previous year price
Item 2007-2008 2008-2009 2009-2010

Hard Med Pitch Rs.16628 Rs.23331 ------
Ferrous Sulphate ------- ------- Rs.6000
Naphthalene Rs.47864 Rs.42793 Rs.42900
Anthracene oil Rs.13805 Rs.18511 Rs.13200
Benzene Rs.38354 Rs.30961 Rs.32900
Toluene Rs.39603 Rs.39080 Rs.35300
LS Naphtha Rs.32392 Rs.31029 Rs.31050
S Boil Rs.20533 Rs.19588 Rs.18000
“ROLE OF MARKETING DEPARTMENT”

MARKETING DEPARTMENT OFBOKARO 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 BSL’s 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 to the company”
(a) Marketing of prime products of SAIL’s 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 & By-
Products are marketed by the individual Plants only.
Marketing of these products are conducted by various sections by marketing

department of Bokaro Steel plants. It is engaged, with marketing of Primary
Products for home sale or export through CMO. The 4.0 Million tones section
known as plate mill section dealing with plates. Now this section has got ISO -
9002 certificate.
The secondary section deals with the secondary Products, it includes scraps of
iron and steel slag, coal and coke fractions, coal chemicals.
The Marketing development section deals with the MIS and strategic Planning
activity come under this section.
The Export section deals with the activities of the exports in respect of Iron and
Steel items produced by Bokaro steel plant.
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.)
Slag, Waste, Idle Assets, U&S, Surplus

Iron,
Smug. Scheme
Sr. Mgr. (Mktg.) Manager Jr. Mgr.

(Mktg.) (Mktg.)
Coal& Chem., Zinc
Dross, Ammonium Reports, Price Secondary Jr. Mgr.
Sulphate & Ferrous Monitoring, MIS Steel, Safety (Mktg.)
Sulphate Officer
FUNCTION OF MARKETING DEPARTMENT

1. To monitor the orders issued by CMO, So that these orders can fulfilled in
time.
2. Put pressure on CMO, to get orders for an underutilized mill.
3. To sell all the secondary products directly i.e. directly by BSL and by CMO.
4. On day to day basis it takes care of the dispatches i.e. daily dispatch are
checked.
POLICIES OF MARKETING
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 programmes, policies and procedures are as follows:-
I) Positioning the product a value based place in customer mind.
II) Finalize annual sales plan and quantity, monthly, weekly, and daily rolling
programme of Rolling mills in consultation with CMO and mills. This plan
is based on the sales forecast receive from JPU SPL/ Iron and steel
controller.
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) Co-ordinations with CMO from stages of enquiry, for exports,

development of new Profiles, sections, modification of product scheduling
till the orders are completed.
VII) Development of new qualities of steel.
VIII) Periodical market surveys of products to analyze the market position.

IX) Implementation of suggestions received from the customers’ feedback.
X) Ensure 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
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:
 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 MD’s approval
the price becomes applicable and the circular indicating the revised price is
printed, issued and distribution to the customers and all the concerned
departments.
DISTRIBUTION
For the purpose of distribution of steel (as per JPC) policy in fashion, customers
are categorized into A, B, C & D. Priority sector customer e.g. Defense,
Railways etc. are under category A and about 60% of the product allotted to
them. The balance 40% is kept for the category B, C & D.
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.
SALES PROMOTION
Sales Promotion consists of a diverse collection of incentive tools designed to

stimulate quicker or greater purchase of particular product. As a part of
promotional activities, BSL is employing following activities:
a) Discount slabs is provided to boost the sales, description of which is

given below:

• Up to 10,000 tones ----- No Discount
• 10,000 to 15,000 ----- 15% Discount
• Above 15,000 ----- 20% Discount
b) To find new customers and to inform customers at far distant areas

Tender Notice given in the newspaper for sale of scraps. Best among the
application is accepted with a view to get the best revenue.
c) Sometimes when new item is to be sold sales notice is given in the

newspaper. But most of the time local customers get informed from other
customers.
MARKETING STRATEGIES OF BSL
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. CMO has Market Management Group where specialists monitor changing

demand pattern and development in each Market segment is carried on.

d. It has posted market development officers at various locations that are its
eyes and ears for monitoring current and future expectation of its customer.
e. The Business-planning department is exclusively meant to study customer's

changing demand scenario and assess current and future expectation.
f. To understand customer needs seminars and workshops are also organized

by BSL.
Building Customer Relationship
BSL has adopted the philosophy of recognizing segment of the market and
identifying key customer in 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. Easy access to customers to seek
assistance makes proposals send comments and compliments.
MARKET DEVELOPMENT
BSL has valued customers group in identifying their specific needs Specific to
that group thus segmenting and developing market segment for our products.
Major product modifications are done as per their specific needs of the Market
segment thereby creating product differentiation packages.
PRODUCTION ACCORDING TO MARKET NEEDS
BSL is always in touch in market and try to produce according to market needs.
BSL tries to produce quality products / new products which fulfill the need of
market.

2. STOCK REDUCTION
Giving facilities like door delivery, road dispatches, credits facility and rounds
the clock stockyard operation.
3 PRICE FIXATION
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 fright charges etc. i.e. pricing is COST PLUS PRICING.
4 DESPATICH
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.
MARKETING OF SECONDARY PRODUCTS
During the seventies and sixties when the plant was one million-tones and2.5
million-tonnes capacity respectively, arising of secondary products was limited
and such arising was recycled for re-melting. Therefore there was no scope for
marketing in other words it was not economical. The plant capacity has been
increased from 2.5 million tons to 4 million tones in the late sixties. New
technology has been adopted while increasing the capacity of the plant where by

the use of arising for re-melting drastically reduced. This has given more impact
to the making of secondary product.
In the nineties we have seen lot of changes in the economic scenario of the
country. The concept of more employment in Public Sector Enterprises has
changed to more profits. There by the plant also has geared up its strategy
towards this end. One of the strategies adopted by the plant for increasing the
profit is marketing of secondary products.
In the recent years a number of foundries and re-rolling Mills come into
existence throughout the country. These small scales Sector need the
"Secondary products" as input raw material for their production. The company
has engaged in educating them the use of secondary products for different kinds
of end products for consumption of general public. The plant extends all types
of facilities and assistance to these small-scale units. This, in turn gives scope
for more employment opportunities.
The plant for marketing has adopted following strategy:
1. Committed delivery.
2. Competitive price
3. Quick complaint settlement.
4. Culture of customer service.
It is necessary to mentioned here that the companies' profit consists of 10%

turnover of secondary products for the Last two years.

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.

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 with the "offers 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.

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)
CHEMICAL & SLAGS & WASTE

STEEL IDLE ASSETS PRICING
BYE-PRODUCTS PRODUCTS

DEMAND REGISTRATION OF BSL
Marketing department of BSL sales homogeneous steel scrap 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, which are
actual customer. 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 e.g. submission of “Die Registration
Certificate “etc.

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
Fixed
E-auction Price
Sale
Inter
Tender
Plant
Transfer

CHAPTER 3
PROBLEM
FORMULATION

3.1 BACKGROUND OF THE STUDY
Bokaro Steel Plant is the largest steel plant in India. It is the fourth integrated
public sector steel plant in India built with Soviet help. It is hailed as India’s
first swadeshi steel plant, built with maximum indigenous content in terms of
equipment, material and know –how. Brand Bokaro signify assured quality and
delivery, offering value for money to the customers. It is situated in Jharkhand.
The company has to identify what all improvement should

be done to increase the sales of its secondary and by-products and where the
products of BSL are lacking as compared with the competitor.
3.2 RESEARCH PROBLEM
Though Steel Authority of India Limited (SAIL) is the leading steel

maker company in India, the customers of secondary and by-products prefer
other steel company for purchasing secondary and by-products due to the higher
price of secondary and by-products of Bokaro steel plant.
3.3 SIGNIFICANCE OF THE STUDY
To know the customer preference of different secondary and by-

products brands with their corresponding prices and selling procedures among
customers
Hence on, to provide information that will help SAIL to improve its
service and be competitive with other brands (Tata, Essar, Ispat) in the market.

CHAPTER 4
RESEARCH PROCESS

4.1 OBJECTIVE OF THE STUDY
• To find the extent to which price affect the sales of secondary and
by-products.
• To find the view of customers on the pricing and selling methods

of secondary and by-products adopted by BSL.
• To find the reasons for brand preference.
• To find the extent to which price affect the sales of secondary and
by-products.
• To find the selling methods preferred by the customers.
4.2 SCOPE OF THE STUDY
The study was conducted over a period of one and half months from
Mid April to May, 2010. The study includes the customers of secondary and
by-products in Bokaro district
4.3 RESEARCH METHODOLOGY OF THE STUDY
 Type of Research- Descriptive Research
 Data Source-
 Primary Data: Interview, Questionnaires.
 Secondary Data: Internet, previous and current records and

magazines published by BSL.

 Sampling technique- Convenience sampling
 Data collection Tools- Questionnaire method
 Area of study- Bokaro district
 Population- Customers in the towns of Bokaro district
 Sample Size- 25 customers
 Data analysis and interpretations using percentage analysis
4.4 DEFINITIONS
1. PRICING STRATEGY:
Pricing strategy is the price planning that takes into view factors such as
firm’s overall marketing objectives, consumer demand, product
attributes, competitor’s pricing and, market and economic trends
OPERATIVE DEFINITION: The term pricing strategy here means the

link between BSL objectives, financial goals, brand promise,
merchandising strategies and price on the shelves of Secondary and By-
products taking into consideration the strategy of its competitors.
2. SALES STRATEGY:
Sales strategy is the planned approach- management, policy

formation, prospect identification and qualification, sales presentation
and order generation aimed at achieving a firm’s sales quotas or
targets.

OPERATIVE DEFINITION: The sales strategy in this research is
referred to as the sales presentation, prospect identification, policy
formation, order generation of BSL aimed at achieving BSL sales
targets. Their aim to achieve sales targets of Secondary and By-
products is studied here.
CHAPTER 4
DATA ANALYSIS
AND
INTERPRETATION
Classification of customers
Trader Manufacturer Processor others
6 14 3 2

Interpretation
The above graph shows the different category of customers for
secondary and by-products. Manufacturers were found to be highest among the
different types of customers.
Reason for purchase from BSL
Quality Cheap transportation Local market price

11 7 5 2

Interpretation
It was found from survey that most of the customers of secondary
and by-products prefer to purchase from BSL because of local market and
quality.
Satisfaction with respect to quality
Yes No
23 2

Interpretation
Most of the customers of secondary and by-products of Bokaro
Steel Plant are satisfied with the quality of the product.
Types of products purchased by customers
Secondary steel By-products Slag Idle assets

10 11 3 1

Interpretation
Most of the customers of secondary and by-products in Bokaro
district deals with the secondary steel and by-products. Though idle assets and
slag also generate huge revenue to Bokaro Steel Plant but there are only few
customers of idle assets and Slag are in Bokaro district.
Brand familiarity
Yes No
18 7

Interpretation
The customers of secondary and by-products are dealing mainly
with two brands. Most of the customers are dealing with BSL and TATA steel
both. Some customers are dealing with BSL and ISPAT steel and ESSAR steel.
Reason for selecting more than one company
Low price High quality Better service better selling methods others
4 7 5 1 1

Interpretation
The diagram indicates the reason for selecting more than one
company for purchase of secondary and by-products. Most of the customers
prefer due to high quality of secondary and by-products in other steel plant
while some prefer other steel plant because of better service that they get in
other steel plants.
Difference in price between BSL and other steel plants
Yes No
20 5

Interpretation
This clearly indicates that there is a price difference between BSL
secondary and by-products to other steel plants. Hence, to be in competition
with other steel plants secondary and by-products, BSL has to decrease its price
of products. Since, cost conscious customers always go for a brand that serves
his purpose at a minimum cost.
Difficulties while dealing with BSL
Yes No
14 11

Interpretation
Most of the customers find difficulties while dealing with Bokaro
Steel Plant. Most of them find lack of single window system while dealing with
BSL. This leads to slow process of trading. Some customers also want better
customer service.
Any better selling adopted by other steel plants?
Yes No
3 22

Interpretation
Most of the customers believe that the current selling methods
adopted by Bokaro Steel Plant are good. Only 3 customers found better selling
methods adopted by other steel plants.
Complain registered
Yes No
11 14

Interpretation
Most of the customers do not complain about the problem they
faced while trading with BSL because they don’t feel management will be
serious about their problems. So, customer’s confidence towards management
of BSL should be increased.
Complaints executed
Yes No
7 4

Interpretation
Only 11 customers said that they registered their complaints about
the problem they faced in trading with BSL. Out of which 7 said that their
problems are executed. So, BSL is friendlier towards customers.
Types of by-products purchased
Benzene toluene S.B.oil Hard medium pitch L.S. Naptha

9 5 3 1 2
Anthracene oil Ammonium sulphate extra hard pitch
2 9 1
Interpretation
To get the information about types of by-products purchased by
customers is also very important. Since, each customer buys different types of
by-products. Most of the customers buy more than one by-products.
No. Of years while trading
Below 2 years 2years-4years above 4 years

4 5 16
Interpretation
Of the customers of Bokaro steel plant secondary and by-products
most of them are trading with more than 4years. This may be the reason for the
large customer base of BSL in secondary and by-products market.
Pricing method preferred
Fixed price e-auction

4 21
Interpretation
Most of the customers prefer e-auction because it is easy and
fast method for trading unlike other methods. Customers get their value for
the time they spent in trading in e-auction
Mode of transportation
Railways roadways
7 18
Interpretation
From the survey it was found that most of the customers of BSL
are using roadways for transporting materials from Bokaro steel plant
because most of them are purchasing secondary steel and that are mostly
transported through roadways in local market.
Main benefits received from BSL
Quality Price Availability Transportation discount structure

15 3 9 7 4
Interpretation
The main benefits customers receive while trading with Bokaro steel
plant is quality of secondary and by-products. Availability of products is 2nd
major benefits that are received by customers. Most of them receive a
combination of benefits from BSL.
Does volume limit satisfy needs of customers?
Yes No Somewhat

7 13 5
Interpretation
The above graph shows the satisfaction level of customers
regarding volume limit for the purchase of secondary and by-products. Most of
the customers are not satisfied with the volume limit of products.
Experience with marketing personnel
Good Bad Excellent

22 2 1
Interpretation
This indicated the experience of customers with the marketing
personnel while trading with BSL. Most of the customers are having good
experience with the marketing personnel. Few customers are having bad
experience with marketing personnel.
Accessibility of Information about bids to be taken place
Highly dissatisfied dissatisfied neutral satisfied highly satisfied

2 4 5 13 1
Interference
The accessibility of the information about the bids to be taken place is
very important because it increases the number of customers in the bids and
hence market becomes competitive. Most of the customers are satisfied about
the accessibility of the information.
Order handling procedure of BSL
Good bad poor excellent

20 2 2 1
Interpretation
From the survey it was found that most of the customers of Bokaro
steel plant are happy with the order handling procedures of Bokaro steel plant.
Since, there is a lot of competition in market for selling of secondary and by-
products. So, for being in the competition with other steel plants BSL is having
good order handling procedure and that will make his customers happy.
Satisfaction with price of secondary and by-products
Yes no

12 13
Interpretation
Price is one of the most important factors which customers are
taking in consideration while purchasing products. From the survey it was found
that customers are not happy with the price of the product. Hence, BSL should
decrease its price of the products.
Satisfaction with the current selling methods of BSL
Yes no

21 4
Interpretation
The customers of secondary and by-products in Bokaro steel plant
are satisfied with the current selling methods of Bokaro steel plant. Some of the
customers are not satisfied with the current selling methods of BSL but they are
not able to give proper reason for their dissatisfaction.
Overall Experience while dealing with BSL
Highly dissatisfied dissatisfied neutral satisfied highly satisfied

2 3 8 10 2
Interpretation
The above graph shows the experience of customers while dealing
with Bokaro steel plant. Most of the customers said that they are satisfied with
the experience while trading with BSL. But, there are a large number of
customers who also said that they are not happy with BSL.

CHAPTER 5
SUMMARY OF
FINDINGS

SUMMARY OF FINDINGS
1. Most of the customers belong to the category of manufacturers i.e.

they are using secondary and by-products of BSL as a raw material.
2. Majority of customers prefer to purchase secondary and by-products

from Bokaro steel Plant because of local market and quality but they
find price is higher compared to the quality.
3. Majority of the customers are satisfied with the quality of the

secondary and by-products of BSL and that is a big advantage for
BSL.
4. Of the four major types of products produced by BSL in Secondary

and by-products division, most of the customers are purchasing
secondary steel and by-products from BSL.
5. Most of the customers deal with Bokaro steel plant and TATA steel
for purchase of secondary and by-products.
6. 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 by-products.

7. Majority of customers responded that other steel plants are providing
secondary and by-products at a lower rate.
8. Most of the Customers responded that they find difficulties while

dealing with BSL.
9. 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.
10.Most of the customers don’t 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.
11.Among by-products category of products Benzene, Toluene and

Ammonium sulphate are having highest number of customers.
12.Most of the customers are loyal to BSL because most of the customers
are dealing with Bokaro steel plant for more than 4 years.

13.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.
14.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.
15.Most of the customers are not happy with the volume limit that they
receive from BSL.
16.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.
17.Majority of the customers responded that they are happy with the
order handling procedures of BSL.
18.Majority of the customers responded that that they are satisfied with
the overall experience while dealing with Bokaro Steel Plant.

CHAPTER 6
CONCLUSIONS
AND
RECOMMENDATION
6. CONCLUSIONS AND RECOMMENDATION
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.

Since, from the survey 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 don’t 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.

CHAPTER 7
BIBLIOGRAPHY
BIBLIOGRAPHY
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

CHAPTER 8
ANNEXURE

QUESTIONNAIRE
1. In which category of customer do you belong?
a) Trader
b) Manufacturer
c) Processor
d) Others
2. Why do you prefer to purchase from BSL?
a) Quality
b) Cheap transportation
c) Local market
d) price
3. Are you satisfied with the quality of the product?
a) yes
b) no

4. If ‘No’ then what would be the reason for such a decision?
a) High cost
b) Low quality
c) Poor distribution
d) Others……………………………(please specify)
5. What type of products do you purchase from BSL?
a) Secondary steel
b) By-products
c) Slag
d) Idle assets
6. Are you dealing with any other company other than BSL?
a) Yes………………………………. (please specify the name)
b) No
7. If ‘Yes’ then what would be the reason for selecting other company?
a) Low price
b) High quality
c) Better service
d) Better selling methods
e) Others………………………………………. (please specify)
8. Do you find any difference in price of secondary and by-products of BSL

with other plants that you are dealing with?
a) Yes
b) No

9. Have you faced any difficulties while dealing with the BSL?
a) Yes…………………………………… (Please specify the reason)
b) No
10.Do you find better selling methods adopted by other plants for selling of
secondary and by-products?
a) Yes…………………………………….. (please name that method)
b) no
11.Did you complain about the problem faced?
a) Yes
b) No
12.Did complains get executed?
a) Yes
b) No
13.Which types of by-products do you deal with?
a) Benzene
b) Toluene
c) S.B. Oil
d) Hard medium pitch
e) Extra hard pitch
f) L.S. Naphtha
g) Anthracene oil
h) Ammonium sulphate
14. Since when you are dealing with BSL?
a) Below 2 years

b) 2years-4 years
c) Above 4 years
15.What type of pricing method preferred by you while you are dealing with
the BSL?
a) Fixed price
b) E- auction
16.What mode of transportation are you using?
a) Railways
b) Roadways
17.What are the main benefits which you receive from BSL?
a) Quality
b) Price
c) Availability
d) Transportation
e) Discount structure
18.Does the volume limit of secondary products, for bidding, help satisfy
your needs?
Yes No Somewhat
19.What is your experience with the marketing personnel?
Good Bad Excellent
20.Overall how will you rate the accessibility about bids to be taken place?
(Rank on scale on 1-5 in which 1 means highly dissatisfied and 5 represents

highly satisfied)

1 2 3 4 5
21.How do you rate the order handling procedure of the BSL?
Good Bad Poor Excellent
22.Are you satisfied with the price of the secondary and by-products?
a) Yes
b) No
23.Are you satisfied with the current selling methods of BSL?
a) Yes
b) No……………………………………(please specify the reason)
24.Overall how will you rate your experience while dealing with the BSL?
(Rank on scale on 1-5 in which 1 means highly dissatisfied and 5 represents

highly satisfied)
1 2 3 4 5
Any suggestions for further improvement:

Thank you for your sincere co-operation.
NAME OF THE CUSTOMER- …………………………………………………
PLACE- ………………………………………………………………………….
DATE- ………………………………………………....
CONTACT NO. - ………………………………………
ABBREVIATION
1. SAIL - Steel Authority of India Limited.

2. TISCO - TATA Iron and Steel Company.
3. MECON - Metrological & Engineering consultants’ ltd.
4. HSCL - Hindustan steel works consultants Ltd.
5. NMDC - National Mining Development Corporation ltd.
6. RDCIS - Research and Development Centre for Iron and Steel.
7. CET - Centre of Engineering and Technology.
8. CPTI - Central Power Training Institute.

9. MRD - Marketing Recovery Department.
10. BFGS - Blast Furnace Granulated Slag.

Nitish Summer Project

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Nitish Summer Project

Transféré par

Droits d'auteur :

Formats disponibles

“A STUDY ON THE PRICING AND SALES STRATEGY OF SECONDARY

AND BY-PRODUCTS AT SAIL (BOKARO)”

SUMMER PROJECT REPORT

RAJAGIRI BUSINESS SCHOOL

In partial fulfilment of the requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

NITISH KUMAR SINGH

ROLL NO: P09128

Rajagiri Business School

Kochi- 682 039

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 1

Under the guidance of

Mr. K. Tharu Benny

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 2

Place: Bokaro steel City

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 3

I would like to thank to Mr. A.J. KACHHAP (DGM, STORE), K.K.

I extend my sincere thanks to Mr. K. Tharu Benny, Faculty Member, Rajagiri

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 4

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 5

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 6

The survey was conducted in Marketing Department and Sales Coordination

Various steps involved are as follows. To know about the e-auctions of

Data were mainly collected from marketing department of BSL.

During my training I had to find out mode of sale of secondary products of

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 7

Bokaro Steel Plant recognizes that leadership is essential for survival in

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 8

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 9

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 10

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 11

Strengths of Indian Steel Industry

• Low labour wage rates

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 12

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 13

To improve the functioning of Steel Industry, Govt. decided to form a holding

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 14

Thus, SAIL, at present, is having capacity of 12 MT of crude steel through its

OWNERSHIP AND MANAGEMENT

INTEGRATED 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

1. Indian Iron & Steel Company Limited (IISCO) in West Bengal.

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 16

 Raw Material Division (RMD) at Kolkata, West Bengal

 Central Marketing Organization (CMO) at Kolkata, West Bengal

 SAIL Consultancy Division (SAILCON) at New Delhi

 Centre for Engineering & Technology (CET) at Ranchi, Jharkhand

 Management Training Institute (MTI) at Ranchi, Jharkhand

 Central Power Training Institute (CPTI) at Rourkela, Orissa

 SAIL Safety Organization (SSO) at Ranchi, Jharkhand

 Environment Management Division (EMD) at Kolkata, West Bengal

 Growth Division (GD) at Kolkata, West Bengal

 Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 17

• NTPC SAIL Power Company Pvt. Ltd

RAJAGIRI BUSINESS SCHOOL, KOCHI Page 18