Developing Marketing Strategy by sanghaviharshil

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									 Developing Marketing Strategy to meet Capacity expansion Post
                    2008 for Vikram Ispat

                     Vikram Ispat, Mumbai


    Being a project report born out of summer internship and
  submitted in part fulfilment of the academic requirements for

 The Post Graduate Diploma in Business Management

                          Awarded By

         Indira School of Business Studies, Pune

              During the academic years 2006-08

                               By


                        Navin Khaware

                          Roll No-B46



  Corrected by                Vetted by             Accepted by



Faculty Supervisor         Research Professor          Director
                   TABLE OF CONTENTS


                   CONTENTS              PAGE NO’S
 EXECUTIVE SUMMARY



 RESEARCH DESIGN
 1. Introduction
 2. Objectives of study
 3. Scope and Limitations of the study
 4. Methodology


ORGANIZATIONAL PROFILE

CONCEPTUAL BACKGROUND OF THE STUDY


 ANALYSIS, PRESENTATION AND
 INTERPRETATION OF THE DATA


 FINDINGS, SUGGESTIONS,
RECOMMENDATIONS AND CONCLUSION

 BIBLIOGRAPHY

 ANNEXURE




                                   1
                          ACKNOWLEDGEMENT

The satisfaction of completion of any successful task is incomplete without mentioning
the name of people who made it possible and whose constant guidance and
encouragement crowned our efforts with success.

I have a pleasure in submitting the project report and I take this opportunity to express
my sincere gratitude to all those who have helped me in this organization.

I express my sincere gratitude to Mr. Prakash Tatia, Vice-President (Marketing), who
gave the vital inputs and necessary information regarding the project and organization. I
would also like to thank my project guide Mr. R.S.Bowrankar, (Dy.General Manager-
Marketing), for giving me the opportunity constant encouragement, support and guidance
and for imparting their views regarding Developing Strategies. I wish to place on record
my sincere Thanks to people of Vikram Ispat management team for their contribution and
co operation.
I'm also thankful to Mr.Saini, Sr.Manager, Marketing Mr.Dilip Rajpurohit, Assistant
Manager (Marketing) whose encouragement and never ending support made me
relentlessly work hard towards the pursuit of preparing this report in a timely and
efficient manner.

This project report could not have been completed without the guidance of our Director
Dr.Renu Bhargava ,Project Guide Prof. Bidyut Gogoi.

I also wish to express my gratitude to all those who have directly or indirectly given
assistance in making this project easier and possible.




                                                                         Navin Khaware




                                             2
                                Executive Summary


The project entitled “Developing marketing strategy” from VIKRAM ISPAT (A UNIT
OF GRASIM IND. LTD.) an Aditya Birla Group Company has been prepared in partial
fulfillment of PGDBM degree awarded by INDIRA SCHOOL OF BUSINESS
STUDIES, Pune.

VIKRAM ISPAT manufactures various types of SPONGE IRON. These Sponge Iron are
used by:


      Steel Industry
      Foundries


The reason for carrying out survey was to know the potential of sponge iron market all
over India. If production is doubled what would be the potential of Gas based DRI.

The survey was conducted in various parts of Mahrashtra. The areas that were covered
were as follows:
      Nashik
      Wardha
      Bhiwandi
      Raipur
      Revdanda
      Pren




                                           3
All these areas are part of Mahrashtra. Due to certain limitation and weather conditions
survey was conducted only in the above mentioned areas. There was more of literature
survey like availability of natural gas.




Survey was conducted with the existing customers of the company as per the list
provided by the company personnel.




    The primary objective of the research was:-

      To find out the position of the Vikram Ispat as compared to the other competitors
       in the market.


      Customer’s perception and satisfaction level about VIKRAM ISPAT.


      To identify measures to be taken to increase sell of VIKRAM ISPAT products.


      To find out the sales figure for GAS BASED DRI.


   The Secondary objectives of the research were:


      To create the list of reference to promote GAS BASED DRI.


      To identify measures to improve quality of the product..


A structured questionnaire was used as research instrument. Total sample size was 23.
Also informal talks with the employee of the surveyed company have also played a vital
role in the data collection. Customers visited were of induction furnace category.




                                             4
RESEARCH DESIGN
  1. INTRODUCTION
  2. STATEMENT OF PROBLEM
  3. OBJECTIVES OF STUDY
  4. SCOPE AND LIMITATIONS OF THE
   STUDY
  5. METHODOLOGY




                5
                                       Introduction


The boom in the steel sector in last three years has already indicated the huge demand of
the Sponge Iron. And now that the steel sector is quite stable but still its having more
demand compared to what it was three years before. The major reason for it being
development in various fields due to development in the economy. The Gas Based Dri
market in India is growing at a faster rate.


Major players for gas based dri in the Indian market are:

. Vikram Ispat
. Essar steels
. Ispat industries limited


Various reasons for the growth in the demand of the DRI in the few recent years can be
given as follows:


       The rising rate of growth of the GDP.


       Rise in the purchasing power of people.


       The need of development in the infrastructure.


  The DRI market in India is dominated by Vikram Ispat which has the market share of
40% especially for Dri . Vikarm Ispat was established in 1993. Ever since it’s the market
leader in the DRI. But in the present scenario it’s facing tough competition in certain
parts of India.




                                               6
 A stiff competition has lead Vikram Ispat to undertake market research to find out its
position in terms of other competitors and find out various measures to increase its
market share.
Thus considering the above discussion this project work is of immense importance to the
company and has provided some important lines of action




                               Objectives of the study


   Primary objective


      To find out the position of the Vikram Ispat as compared to the other competitors
       in the market.


      Customer’s perception and satisfaction level about VIKRAM ISPAT.


      To identify measures to be taken to increase sell of VIKRAM ISPAT products.


      To find out the sales figure for GAS BASED DRI.


   The Secondary objectives of the research were:


      To create the list of reference to promote GAS BASED DRI.


      To identify measures to improve quality of the product..




                                           7
                               Scope and Limitations


SCOPE :

Research was limited for the certain parts of India only. The areas that were visited were
as follows:
      Nashik
      Wardha
      Bhiwandi
      Raipur
      Revdanda
      Pren




   Research emphasis was only on finding customers priority on purchasing their
products for Vikram Ispat products and other competitive products. It includes finding
position of Vikram Ispat products in respect to other competitors. And necessity to
formulate marketing mix of the company if any.


LIMITATIONS :


      The study is based on the perception, ideas and preferences of the respondent,
       which are complex in nature and depend upon subjectivity of the individual.


      Many times there was lack of cooperation from respondent for research.


      The research was carried out in certain parts of Mahrashtra only therefore finding
       and suggestion are limited to those parts only.




                                            8
          Project was carried out in the month of june-july and demand for DRI differ is
           very sensitive to price as well as requirement of the customers. Hence figures
           provided may not be accurate.




                       REASEARCH METHODOLOGY

Research methodology is the process which helps in selecting the tools to achieve the
objectives. Methodology used in this research is the survey of the customers of the who
require Ferro alloys for mixing in their product.

Sources of data collection:

Primary data:

Data obtained from the first hand by the researcher is called the primary data.

Here the main source of primary data collection was interviews, discussion and
interaction with customers by using the Questionnaire.

Secondary data:

Secondary data refers to the data available in some form or another and may include the
result of the previously performed research or the available materials such as newspaper,
reports may be from the internet. Various sources of secondary data used in this research
are:

          Internet
          Interaction with the employee of the company.
          Intra web-site of Vikram Ispat.
          SIMA magazines.
          HYL Report.
          MIDREX Report.




                                              9
The methodology consists of:

      Need and objective of research
      Collecting the facts/data
      Analysis of the data.
      Conclusion and solution.




                               RESEARCH DESIGN

After identifying problems and sources of data the next step is to prepare a research
design. It facilitates research to be efficient as possible yielding maximum information.


Research approach:

Survey method was used to collect data. List of existing customers were provided by the
company. Approach used was to take prior appointment of customers and then meet them
or in some cases meet the customers directly without appointment and then fill up the
questionnaire.

Research instrument:

It is a tool used to collect data from sample.

A structured questionnaire was used as research instrument in this project. A
questionnaire consists of both close ended and open ended question to make analysis easy
and respondent to feel free to answer the questions.




                                                 10
Sampling design:


A definite plan developed to obtain a sample from a given population is called sampling
plan.

Sampling procedure:

Judgmental sampling of all the customers as per the list provided by the company was
covered from various parts of India.
Sampling size:

For customers: 7 customers

Sampling units:


Sampling units were geographical.

Geographical areas visited:
   1. Maharashtra: -      Mumbai, Wardha, Nashik.


An industry and its employee were considered as sampling unit.




                                          11
12
ORGANIZATIONAL PROFILE




       VIKRAM ISPAT
(A UNIT OF GRASIM IND. LTD.)




            13
                                     VIKRAM ISPAT
                           (A UNIT OF GRASIM IND. LTD.)

                                Aditya Birla Group

Aditya Birla Group is one of the largest Indian business houses operating in the country
for over 5 decades and globally for nearly 3 decades. It was established in 1950. Global
in vision, rooted in Indian values, the group is driven by a performance ethic pegged on
valve creation for its multiple stakeholders.


A 6.5 billion US$ conglomerate, with a market capitalization of 6.33 billion US$. It has
66 state-of-the-art manufacturing units and sectoral services span in India, Thailand,
Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and Japan. An extraordinary
force of 72000 employees belonging to over 20 different nationalities anchors it. Over
30% of its revenue flows from its operation across the world. The group's products and
services offer distinctive customer solution.


The Aditya Birla Group holds a leadership position in almost all the sectors in which it
operates such as Aluminum, Mining, Chemicals, Cement, Carbon Black, Fertilizers,
Branded Apparel, Insulators, Sponge Iron, Financial Services and Insurance.




It is Dominant in the following fields



                                                14
    The world no. in viscose staple fiber
    The world's largest single location palm oil producers
    World's largest producer of white cement
    The fifth largest producer of carbon black
    World's third largest producer of insulator
    India's premier branded garments player
    Asia's largest lowest cost integrated aluminum producer.




On the social front, a value-based, caring corporate citizen, the Aditya Birla Group
inherently believes in the trusteeship concept of management. Parts of the Group’s are
ploughed back into meaningful welfare-driven initiatives that make a qualitative
difference to the lives of initiatives and rural development, Mrs. Rajeshree Birla
spearheads it. The Aditya Birla group operates a decentralized, professionally managed,
responsive organization led by Mr. Kumar Mangalam Birla, supported by an experienced
and well qualified international management team.




                                            15
                                          Grasim


Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks
among India's largest private sector companies, with consolidated net revenues of
Rs.141 billion (FY2007).

Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise
Viscose Staple Fibre (VSF), Cement, Sponge Iron, Chemicals and Textiles — in all of
which the company holds a dominant position.

In July 2004, Grasim acquired a majority stake and management control in UltraTech
Cement Limited, the de-merged cement business of Larsen & Toubro Limited (L&T).
One of the largest of its kind, in the cement sector, this acquisition catapulted the
Aditya Birla Group at the top of the league in India. The Group's combined capacity
stands raised to 31 million tpa, of which 17.0 million tpa capacity comes from
UltraTech and 1.1 million tpa from Shree Digvijay Cement Co. Ltd, another
subsidiary of Grasim.

Between Grasim and its subsidiaries, the Group has 11 composite plants, seven split
grinding units, four bulk terminals — inclusive of one in Sri Lanka and 10 ready-mix
concrete plants. Importantly, it gives the Group a strong national presence, with a
leadership position in 17 states.

Viscose staple fibre
The Aditya Birla Group is the world's largest producer of VSF, commanding a 23 per
cent global market share. The company meets India's entire domestic VSF
requirements.

Cement
The Aditya Birla Group is the 11th largest cement producer in the world and the
seventh largest in Asia.

Sponge iron
It is the largest merchant producer of sponge iron in India.



Chemicals
Grasim has India's second largest caustic soda unit.




                                           16
Textiles
Its premium brands, the Grasim and Graviera range of fabrics, have distinctively
positioned themselves as 'the power of fashion'.

All of Grasim's units have earned ISO 9002 and 14001 certifications.
Product quality, innovation and eco-friendliness are a hallmark of all the company's
divisions



LANDMARKS

Bihar Caustic

Bihar Caustic and Chemicals Ltd., Rehla, Jharkhand has received the

FICCI Annual Award 2003-2004 in recognition of corporate initiative in family
welfare

Grasim, Nagda

2006

:: Greentech Environmental Excellence Award by Greentech Foundation

:: Planet Award for Innovation in Employee Performance Management from the
Aditya Birla Group

:: Distinguished Achiever Award to Mr. Ravi Uppal from the Aditya Birla Group

:: Young Achiever Award to Mr. Rakesh Jha from the Aditya Birla Group




2005

Environmental and Ecological Gold Award by Greenland Society

Golden Peacock Eco-Innovation Award by IOD

Safety awards for longest accident-free period (Membrane Cell) and lowest average
frequency rate (CSA plant) by the Government of India


                                          17
CII National Energy Management Award for the most energy efficient unit

Certificate for Strong Commitment to Excel CII-Exim Bank Award for business
excellence

:: Rajiv Ratna National Award — Best Chief Executive Gold Award by Greenland
Society

:: Greentech Environment Excellence Award by the Greentech Foundation

:: Rajiv Ratna National Award – Best Pollution Control Implementation Gold Award
by Greenland Society

:: Greentech Safety Gold Award by the Greentech Foundation

:: National Safety Award by the Government of India

:: Indira Gandhi Memorial National Award by the Greenland Society

:: Vishkarma National Award by the Government of India

2004

:: Grasim, Nagda received the FICCI Annual Award 2003-2004 in

recognition of corporate initiative in rural development

Vikram Cement :: The first Indian unit to win the coveted TPM award from the Japan
Institute of Plant Maintenance, Tokyo, in 1995

:: The Ramakrishna Bajaj National Quality award in 1998

:: The first cement unit in the world to receive IQRS level 5 rating from DNV, The
Netherlands

:: The first cement unit in India to be certified ISO 14001 (1997) and OHSA 18001
(certifications from DNV, Rotterdam, The Netherlands, in 2001)

:: SA 8000 certification achieved


                                          18
Aditya Cement 2004

:: Aditya Limestone Mines wins the following awards at the Mines Safety Week
2004, Udaipur:

Mines machinery and maintenance: first

Safety, occupational health and VTC: first

Mine working: second

Environment protection, publicity, propaganda

and housekeeping: second

Overall performance: second




1999

:: Best productivity award by the National Productivity Council

2000

:: National energy conservation award by Ministry of Power, Government of India

:: Best energy efficient unit award by CII

:: IQRS level 6 rating from DNV, The Netherlands

2001

:: First in India to be certified ISO 9001:2000, by DNV, The Netherlands (2001)

:: TPM Excellence award, first category, by JIPM, Tokyo




                                             19
Rajashree Cement 2004

:: Birla Super Cement received the Environment Excellence Award under the silver
category by GreenTech Foundation

:: Birla Super Cement certified with the OHSAS 18001:1999 for their occupational
health and safety management system by Det Norske Veritas (DNV)

2001

:: National award for 'Quality excellence in the Indian Cement Industry' from the
National Council for Cement and Building Materials

1999

:: IMC Ramakrishna Bajaj National Quality award (certificates of merit)

1995

:: Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices

1993

:: Rajiv Gandhi National Quality award




Viscose Staple Fibre 2004

:: The 2004 Stockholm Industry Water award

2003

:: Deming Quality Control award

:: IMC Ramkrishna Bajaj National Quality award

:: IMC Ramkrishna Bajaj National Quality award — commendation certificate for
Grasilene Division


                                          20
:: CII Exim Bank award — commendation for business excellence

:: Greentech Gold award for environmental excellence

2002

:: Chairman's Gold award for manufacturing excellence

:: CII Exim Bank award — commendation for commitment of TQM

:: Rajiv Gandhi National Quality award — best of all

:: ISO - 9001 certification

:: ISO - 14001 certification

2001

:: Rajiv Gandhi National Quality award — commendation certificate

:: Corporate Citizen award for excellent contribution in the area of social development

2000

:: Chairman's Silver award for manufacturing excellence

:: Rajiv Gandhi National Quality award — commendation certificate




                                          21
VISION, MISSION & VALUES STATEMENT OF
COMPANY

VISION

“Sustaining the leadership position through value based services.”

MISSION

“To establish ourselves as the first choice of our customers with a focus on value
creation for all other stakeholders.”

VALUES

INTEGRITY:
We define integrity as honesty in every action. We shall act and take decisions in a
manner that these are fair, honest and follow the highest standards of professionalism.
Integrity shall be the cornerstone for all our dealings, be it with our customers, our
employees, suppliers, our partners, shareholders, the communities we serve or the
government.


COMMITMENT:
On the foundation of integrity, we see commitment as doing whatever it takes to
deliver as promised. Each one of us shall take ownership for our own work, teams and
the part of the organization we responsible for. Through this value, we shall build an
even sharper results-oriented culture that is high on reliability accountability. Our
commitment is likely to make us a formidable leader and competitor in every market
that we are in.




PASSION:


We define passion as a missionary zeal arising out of an emotional engagement with
work, which inspires each one to give his or her best. All of us are expected to be
enthusiastic in the pursuit of our goals and objectives. We shall recruit and actively


                                          22
encourage employees with a ‘fire in belly’. With this value, we hope to build a culture
of innovation and breakthrough thinking, leading to superior customer satisfaction
and value creation.


SEAMLESSNESS:
We understand seamlessness as thinking and working together across functional silos,
hierarchy levels, across business lines and geographies. Each one of us shall
demonstrate high level of teamwork through sharing and collaborative efforts and
garner the synergy benefits from working together. Before we can truly benefit from a
borderless world, we need to build a borderless organization. We visualize free flow
of knowledge and information across the group.


SPEED:
We look upon speed as responding to internal and external customers with a sense of
urgency. We shall continuously seek to crash timelines and ensure expeditious
completion of our tasks. Through this value, we hope to build an agile and proactive
organization that is prompt to respond to the present and future needs of our
customers.




All these values together form our core ideology. They are all equally important and
no value will take precedence at the cost of the other. It is in the harmonization of the
five that we see the prospect of greater value creation for all our stakeholders.


\




                                           23
USER INDUSTRIES

The product produced at VKRAM ISPAT are mainly consumed by:


      Steel Industry
      Foundries
      Electrodes
      Dye & Intermediates
      Fertilizer Industry




                                    24
                             VIKRAM ISPAT


            A FIRST AT VIKRAM ISPAT (A Unit Of Grasim Industries Ltd)


Vikram Ispat, A Unit of Grasim ind. Ltd., is located at salav village in Raigad district
of Mahrashtra 130 KM south of Mumbai. The plant was visualized by Late Aditya
Birla anticipating the increased use of Electric Arc Furnace and Induction Furnace in
Steel Making, shift towards high quality of steel and import of scrap.



The plant was setup in 1989 with design capacity of 0.75 million tones of Sponge Iron
in the Form of HBI with an initial investment of Rs. 525 crores. The factory is spread
over 43 hectors. The plant was upgraded in 1998 to a capacity of 0.9 million tones
with an increased investment to Rs. 725 crores. The plant produces both HBI and DRI
from the same reactor – A First and the only plant in the world.



Process Technology


The plant is based on HYL III Technology from HYLSA, Mexico are the pioneers in
GAS Based sponge iron technology and have put their first plant in 1957 based on
fixed bed reduction.



The HYL III plant is designed with two independent sections: One generating the
reducing Gas and the other for reduction of Iron Oxides. The reducing gas Generation
section consists of natural gas – Steam reformer and related equipment . Reforming
reaction takes place at high temperature in high alloys tubes packed with nickel based
catalyst. In the reactor which is working at pressure , the mixture of recycled gas and
reformed gas at high temperature flow upwards as counter current to the descending
moving bed of iron oxides resulting in reduction reaction. The reactor exhaust gases
are cooled, quenched, decarbonated and recycled.




Vikram Ispat is the world's first sponge iron reactor to produce both HBI & DRI from
the same reactor successfully.
Vikram Ispat started as a merchant producer of HBI. The plant used 3 lines of HBI


                                           25
briquetting machines and had a provision for a 4th line. In order to serve the domestic
market for conventional DRI, the plant installed a 4th STREAM as DRI line. Below
the existing rotary valve, a new hot diverter valve was installed in order to send the
hot DRI to the third briquetting machine or the new DRI cooling bin. The hot DRI is
cooled down in the new DRI cooling bin using cooling gas coming from a new gas
compressor having natural gas as a make up and cold DRI below 60oC will be sent to
new pressurized DRI bins by a new cold rotary valve. The cold DRI from the
pressurized bins is sent to the storage building using new belt conveyors. The
pressurized bins have inlet and outlet cold cut off and plug valves.




                                          26
Performances over the Years

Sector wise Contribution




                   Sponge Iron's contribution towards group turnover(fig in
                                              %)

        Others                              13
          BPO          2.4
     Insulators     0.5
          VFY       0.5
       Sponge        1.2
      Fertiliser     1.2
    Chemicals        1.3                                  Sponge Iron's contribution towards group
     Garments           2.7                               turnover
       Acrylic        1.8
        Mines           2.5
      Spinning            3.6
    Insurance            3.3
       Carbon             3.8
            Vsf                     8.6
      Telecom                   7
       Cement                                    15.8
      Aluminiu                            11.4
       Copper                                           19.4




                                                 27
Aggregate Turnover



                  Only Vikram Ispat's Contribution


      100          98.8
       90
       80
       70
       60
       50
       40                                        Only Vikram Ispat's Contribution

       30
       20                         1.2
       10
        0

            Other Sectors
                            Sponge Iron




                                     28
PROCESS FLOW DIAGRAM




                       29
THE PRODUCT




     30
Sponge iron

Sponge iron is the product created when iron ore is reduced to metallic iron, usually
with some kind of carbon (charcoal, etc), at temperatures below the melting point of
iron. This results in a spongy mass, sometimes called a bloom, consisting of a mix of
incandescent wrought iron and slag.


Use of sponge iron

Sponge iron is not useful in itself, but must be processed further to create wrought
iron. The sponge is removed from the furnace, called a bloomery, and repeatedly
beaten with heavy hammers and folded over to remove the slag, oxidise any carbon or
carbide and weld the iron together. This treatment usually creates wrought iron with
about three percent slag and a fraction of a percent of other impurities. Further
treatment may add controlled amounts of carbon, allowing various kinds of heat
treatment (e.g. "steeling").

Today, sponge iron is created by reducing iron ore without melting it. This makes for
an energy-efficient feedstock for specialty steel manufacturers which used to rely
upon scrap metal.


History

Producing sponge iron and then working it was the earliest method used to obtain iron
in the Middle East, Egypt, and Europe, where it remained in use until at least the 16th
century. There is some evidence that the bloomery method was also used in China,
but China had developed blast furnaces to obtain pig iron by 500 BC.

The advantage of the bloomery technique is that iron can be obtained at a lower
furnace temperature, only about 1,100°C or so. The disadvantage, relative to using a
blast furnace, is that only small quantities can be made at a time.




                                          31
ADVANTAGES OF DRI & HBI OVER SCRAP

KNOWN CHEMICAL COMPOSITION

CHEMICAL COMPOSITION OF OUR DRI/HBI IS KNOWN TO THE USERS
(MINI STEEL PLANTS HAVING ELECTRIC ARC & INDUCTION FURNACES)
& THEREFORE THEY CAN USE IT WITHOUT FACING ANY ADVERSE
CONDITIONS SAY LOW CARBON, HIGH SULPHUR OR PHOSPHORUS IN
MOLTEN STEEL.CHEMICAL COMPOSITION OF SCRAP AVAILABLE IN
MARKET DIFFERS FROM LOT TO LOT & UNCERTAIN. THIS LEADS TO
EXTRA TIME TO PROCESS MOLTEN STEEL, HIGH POWER CONSUMPTION,
LOW PRODUCTIVITY ETC. OUR DRI & HBI ARE FREE FROM ALL THESE
COMPLICATIONS. LOW PHOSPHORUS & SULPHUR IN OUR DRI IS AN
ADDED ADVANTAGE FOR STEEL MAKERS & THEREFORE IT IS USER
FRIENDLY MATERIAL.



SAVINGS IN POWER CONSUMPTION

WITH USAGE OF OUR DRI & HBI SAVINGS IN POWER CONSUMPTION IS
CERTAINLY THERE. AS CARBON IN OUR PRODUCT IS 1.50-2.00% CARBON
OPENING IS AROUND 0.20 TO 0.30% (DEPENDING ON QUALITY &
QUANTITY OF OTHER RAW MATERIALS USED) THIS FACILITATES
OXYGEN LANCING WHICH SAVES ELECTRIC ENERGY & REDUCTION OF
TAP TO TAP TIME. THIS HAPPENS BECAUSE OF EXOTHERMIC REACTION
OF OXYGEN & CARBON. IN CASE OF STEEL SCRAP THE CARBON
CONTENT OF DIFFERENT CATEGORIES VARIES FROM 0.20 TO 0.50% &
THEREFORE CARBON OPENING IS NOT UPTO THE MARK. IF OXYGEN
LANCING IS DONE THAN MOLTEN BATH MAY BE OVER OXIDIZED WITH
CARBON IN THE RANGE OF 0.05 TO 0.10%. TO PREVENT THIS SITUATION
ADDITION OF COAL OR USE OF PIG IRON & CAST IRON IS NECESSARYIN
THE FURNACE CHARGE MIX.HIGH CARBON OF OUR DRI & HBI NOT ONLY
SAVES POWER CONSUMPTION BUT AVOIDS DIFFICULT SITUATIONS LIKE
OXIDIZED BATH.

APART FROM ABOVE HIGH CARBON IN OUR DRI & HBI HELPS IN
REDUCTION OF FERROUS OXIDE PRESENTS IN DRI/HBI. THIS HELPS TO
INCREASE YIELD OF OUR PRODUCTS DURING MELTING.

REQUIRES LESS AREA TO STORE.

SCRAP NORMALLY AVAILABLE IN THE MARKET IS HAVING LOW BULK
DENSITY (0.8 TO 1.00 MT/M3.) WHEREAS OUR DRI & HBI HAS DENSITY OF
1.9-2.0 MT/M3 & 2.50-2.70MT /M3.RESPECTIVELY. THEREFORE IT REQUIRES
LESS SPACE TO STORAGE.

LESS AMOUNT OF TRAMP ELEMENTS


                                32
TRAMP ELEMENTS SUCH AS COPPER, CHROMIUM, NICKEL, TIN,
VANADIUM, MOLYBDENUM ETC ARE PRESENT UPTO 0.1% ONLY IN OUR
DRI/HBI THIS LOW CONTENT OF TRAMP ELEMENTS HELPS THE STEEL
MAKERS PRODUCING THIN SHEETS (COLD ROLLED PRODUCTS). HIGH
AMOUNT OF TRAMP ELEMETS IS THEIR IN SCRAP & THESE CAUSES
PROBLEMS IN ROLLING. THEREFORE OUR DRI/HBI IS SUITABLE FOR USE
TO OUR CUSTOMERS LIKE LLOYDS STEELS, ISPAT INDUSTRIES LTD.ETC.

FOAMY SLAG PRACTICE CAN BE EASILY ADOPTED

WITH THE USE OF DRI IT IS POSSIBLE TO MAKE FOAMY SLAG.IT IS
GENERATED NATURALLY DUE TO BUBBLING OF CO & CO2 GASES
GENERATED DURING MELTING OF DRI/HBI. THESE BUBBLES ARE
ENTRAPED IN BASIC SLAG MAKING IT FOAMY. THIS FOAMY SLAG
COVERS THE MATERIAL UNDER PROCESS.THIS HELPS IN LOW POWER
CONSUMPTION APPROX. 50-60 KWH PER TONNE OF LIQUID STEEL
PRODUCED.FOAMY SLAG PRACTICE ALSO REDUCES REFRACTORY
EROSION, ELECTRODE CONSUMPTION, TAP TO TAP TIME & THEREFORE
INCREASES PRODUCTIVITY.

CONTINUOUS FEEDING OF DRI/ HBI IS POSSIBLE.

DRI & HBI ARE FEED CONTINUOUSLY IN EAF’S. WHEREVER SUCH
FACILITY IS AVAILABLE. THIS REDUCES THE TIME LOST DUE TO
SWINGING OFF THE FURNACE ROOF FROM TIME TO TIME FOR TAKING
BACK CHARGES OF SCRAP. CONSEQUENTLY THIS PRACTICE REDUCES
TAP TO TAP TIME BY AROUND 10 MINUTES PER HEAT, POWER
CONSUMPTION BY APPROX. 20-30 KWH PER TONNE OF LIQUID
STEEL.APART FROM THIS ONE GREAT ADVANTAGE OF AVOIDING BACK
CHARGES IS THAT IT REDUCES CHANCES OF ACCIDENTS DUE TO
SPALSHING OF LIQUID STEEL OVER SHOP FLOOR. SOME TIMES BECAUSE
OF LOW DENSITY OF SCRAP, CHARGED SCRAP GETS HIGH LEVEL AFTER
CHARGING & THIS AGAIN LEADS TO TIME LOST IN LEVELLING &
PRESSING OF SCRAP. STICKING OF SCRAP TO SIDE WALLS IS OTHER
PROBLEM AREA, IF THE STICKED MATERIAL COLLAPSES IN THE MOLTEN
IT CHILLS THE BATH LEADING TO INCREASE IN POWER CONSUMPTION &
TAP TO TAP TIME DEPENDING ON AMOUNT OF STICKED MATERIAL. IF
THIS STICKED MATERIAL FALLS IN THE BATH DURING FURNACE
TAPPING IT CHILLS THE TAPPED LIQUID STEELMAKING IT DIFFICULT TO
CAST.

CONTINUOUS FEEDING OF DRI/HBI IS FREE FROM ALL THE ABOVE
PROBLEMS NORMALLY ENCOUNTERED WITH SCRAP USAGE.


ABSENCE OF INJURIOUS & HARMFUL FOREIGN MATERIALS

OUR DRI & HBI ARE FREE FROM ANY OF THE INJURIOUS & HARMFUL
MATERIALS LIKE EXPLOSIVES, BOMBS WHICH ARE PRESENT IN SCRAP.IT


                              33
IS TO BE NOTED THAT SCRAP GENERATED DURING US-IRAQ WAR IN 2005
HAD CREATED LOT OF PROBLEMS IN SOME OF THE STEEL PLANTS LIKE
M/S. BHUSHAN STEELS GHAZIABAD. IMPORTED SCRAP FROM GULF HAD
TAKEN LIVES OF FEW WORKERS IN THIS STEEL PLANT & THEREFORE
AUTHORITIES HAD ORDERED TO CLOSE THE STEEL PLANT.

IF THIS SCRAP CONTAINING BOMBS OR EXPLOSIVES ARE CHARGED IN
THE EAF OR INDUCTION FURNACE THAN THE CASUALITIES WILL BE
ENORMOUS IN TERMS OF MONEY, PROPERTY LOSS & ABOVE ALL DEATH
OF WORKERS IN THE STEEL PLANTS USING THIS KIND OF SCRAP.

APART FROM THIS, SCRAP CONTAINS OTHER MATERIALS LIKE OIL,
PAINT, DUST, PLASTIC, SULPHUR WHICH CAUSES POLLUTION ON THE
SHOP FLOOR.

VIRGIN MATERIAL

OUR HBI & DRI ARE VIRGIN MATERIALS & THESE DO NOT CONTAINS
ANYTHING WHICH IS HARMFUL FOR ITS USERS LIKE PLASTIC, RUBBER,
SAND & DUST ETC. THOSE ARE NORMALLY FOUND IN SCRAP.




Customer can choose the DRI or HBI depending upon their other scrap mix and final
product.
Important Characteristics of HYL Sponge Iron: -Equivalent Metallization


The balanced carbon content and lower percentage of iron oxide in sponge iron helps
to increase the equivalent metallization index. The carbon in sponge iron mainly is in
the form of iron carbide, reacts with oxygen in the unreduced oxide & increases
metallization.

% Equivalent metallization = % metallization
+ 6 (% of carbon)

It indicates that the oxidized iron remain in the sponge iron can be fully reduced with
the carbon which is available in the form of iron carbide & carbon. The carbon -
oxygen reaction improves heat transfer, decreases hydrogen and nitrogen in the metal
bath. Carbon available in the sponge iron pure and can be utilized completely in the
steel making process.

Chemical & Physical Characteristics of Sponge Iron will vary depending upon the
quality of raw material being used. We at Vikram Ispat using iron ore pellets and iron


                                          34
ore with highest % of iron content available in the world. This not only improves the
metallic yield but also easy to standardize the scrap mix for the Steel maker.




ADVANTAGES OF OUR DRI/HBI OVER COAL BASED SPONGE IRON


                                          35
LOW CARBON IN COAL BASED DRI


     COAL BASED DRI IS HAVING CARBON IN THE RANGE OF 0.15 –
      0.25% AS COMPARED TO OUR DRI/HBI HAVING CARBON 1.50-2.00%.
      THIS MAKES IT NECESSARY FOR COAL BASED DRI USER TO
      SUPPLEMENT CARBON BY ADDING PIG IRON, CAST IRON SCRAP
      OR COAL IN THE CHARGE MIX.

     LOW YIELD
      METALLIZATION OF COAL BASED DRI IS POOR BY 2 TO 5% AS
      COMPARED TO OUR DRI & HBI, THEREFORE ITS YIELD IS POOR.

     CHANCES OF CATCHING FIRE
     COAL BASED DRI IS PRONE TO CATCH FIRE, EVEN A SLIGHT
      MISTAKE IN STORAGE MAY LEAD TO FIRE.

     BETTER CHEMICAL COMPOSITION
     CHEMICAL COMPOSITION (METALLIC IRON & TOTAL IRON) IN
      OUR DRI IS MUCH SUPERIOR AS COMPARED TO COAL BASED
      SPONGE IRON.




                               36
CONCEPTUAL BACKGROUND OF THE
           STUDY




            37
MARKETING RESEARCH

Marketing research can be broken down into two distinct words- Marketing and
Research. We have to understand each of the two components Marketing and
Research to know what Marketing Research is all about. Marketing is essentially a
sum total of two entities, viz. the target market and the marketing mix for the market,
which in turn is related to actions regarding the four P’s viz. Product, Price, Place and
Promotion. Thus, marketing is some human activity directed at satisfying needs and
wants through exchange process and a modern marketing system cannot exist without
efficient producers and affluent consumers.

Research is an activity solving problem. It is an endeavor to discover, and develop
knowledge aiming for progress. The testing validity of existing phenomena cannot be
possible but for research. Research is, “the manipulation of things, concepts or
symbols for the purpose of generalizing to extend, correct or verify knowledge,
whether that a process involving a series of steps to collect and analyze the
information needed for decision in the desired filed of enquiry. If it is in the field of
sociology it is termed as Social research and if it is in the filed of marketing it is
known as Marketing Research.

According to Philip Kotler, “Marketing research is the systematic design, collection,
analysis and reporting of data, and finding a solution relevant to specific marketing
situation facing the company”. Marketing research is undertaken to guide managers in
their analysis, planning, implementation and control of programmes to satisfy
customers and organizational goals.

In the words of Blankership and Doyle, “Marketing Research is the collection and
implementation of facts that help marketing management to get products more
efficiently into the heads of the customer. Marketing research encompasses all the
information pertinent to this task, all the appropriate techniques.




                                           38
American Marketing Association defines marketing research as, “the systematic
gathering, recording, and analysis of data about problems relating to the marketing of
goods and services”.

Green and Tull have defined marketing research as “the systematic and objective
search for and analysis of information relevant to the identification and solution of
any problem in the field of marketing”.

Marketing research can be broken down into two distinct words- Marketing and
Research. We have to understand each of the two components Marketing and
Research to know what Marketing Research is all about. Marketing is essentially a
sum total of two entities, viz. the target market and the marketing mix for the market,
which in turn is related to actions regarding the four P’s viz. Product, Price, Place and
Promotion. Thus, marketing is some human activity directed at satisfying needs and
wants through exchange process and a modern marketing system cannot exist without
efficient producers and affluent consumers.

Research is an activity solving problem. It is an endeavor to discover, and develop
knowledge aiming for progress. The testing validity of existing phenomena cannot be
possible but for research. Research is, “the manipulation of things, concepts or
symbols for the purpose of generalizing to extend, correct or verify knowledge,
whether that a process involving a series of steps to collect and analyze the
information needed for decision in the desired filed of enquiry. If it is in the field of
sociology it is termed as Social research and if it is in the filed of marketing it is
known as Marketing Research.

From the above definitions, following fundamental characteristics of marketing
research can be derived:-

      Marketing Research is an objective and systematized body of knowledge.
      It involves collection, recording, analysis, interpretation and reporting of some
       relevant information.




                                           39
     Provides more efficient marketing of goods and services to consumers. It is
      concerned with problems relating to products, markets and methods of sales
      and distribution.
     Deals with present and potential consumers as well as the changing marketing
      environment.
     Provides regular and reliable information about the product, its market and the
      potential consumer to the management so as to chalk out appropriate
      marketing strategy.
     There can be both intra and extra resources for collecting information.
     It provides information for decision making and to develop new knowledge.
     Marketing research is an attempt to find justified solutions to marketing
      problems.


OBJECTIVES OF MARKETING RESEARCH:-
     To define the probable market for the product.
     To know and report the market conditions and techniques, buying behavior,
      buying power of customers.
     To assess competitive strength of various marketing policies.
     To forecast the market share and future sales.
     To know the impact of promotional efforts.
     To estimate the potential buying power in various areas.
     To indicate the distribution methods best suited to the product and the market.
     To study the requirements regarding the features of the product.
     To identify marketing opportunities or problems.
     To help select the right course of action.




                                          40
TYPES OF MARKETING RESEARCH:-

Marketing Research provides adequate information to the line management. In the
days of specialization, various types of marketing research are adopted. Each type of
research is tailored to the individual needs of the management. There are seven major
types of Marketing Research-

   1) Marketing Performance Research
   2) Product Research
   3) Promotion Research
   4) Distribution Research
   5) Pricing Research
   6) Research on Sales Methods
   7) Research on Competition

All these Researches are interrelated and one cannot consider one research as totally
different from the other. In actual practice, a given marketing research problem may
impinge on more than one subject.

1) Marketing Performance Research-

  Marketing performance research provides information necessary for management
to plan and control the performance of the marketing efforts. This research is
$primarily concerned with the identification of problems and their solution. In this
research a performance standard is fixed to gauge the marketing performance. This
research is further subdivided as-

      Market Potential Research
      Overseas Marketing Research
      Consumer Research
      Market Share Research
      Sales Research




                                         41
2) Product Research

   It is the task of product marketing research to determine consumer requirements
and to keep abreast of product technical research. It is the development of a product
line which meets the needs of certain group of consumers. It is further subdivided as-

      Product Line Research
      Individual Product Research
      New product research
      Service Research

3) Promotion Research-

   Promotion Research is mainly concerned with the expansion- stimuli of the
market. It is further subdivided as-

      Advertising Research
      Personal Selling Research
      Brand Image Research
      Readership Research

4) Distribution Research-

  It refers to the study of the physical flow of goods from the manufacturers of the
final consumers. Goods may be distributed through different channels. The main
objective of this research are-

      Distribution Channel Research
      Dealer Surveys
      Shop Audit
      Retail Store Investigation
      Location Research




                                          42
5) Pricing Research-

   It reveals the quantity demanded at various levels of prices. It finds out the
behavior of the competitors, the market shares, dealer’s attitude, production and
marketing costs and other relevant factors. It can be subdivided as-

      Pricing of new product
      Pricing strategy and Competitors
      Price Discounts

6) Research on sales methods-

   It has the following sub types-

      Testing new sales Programme
      Analyzing problems of selling
      Measuring salesman’s effectiveness
      Study of sales compensation




7) Research on Competition-

 It involves-

      Study on competitive structure of the industry and individual competitors
      Study of competitor’s Products, Prices, Promotion, Programmes, Channel
       Policies and sales methods.

In this project Market Potential Research and Overseas Market Research was carried
out. The overseas market research was aimed at expansion of the business in the
international market.




                                          43
                    Geographical Coverage of Vikram Ispat




                             Jammu

     Ludhiana, Gobindgarh,
                                               Hisar, Sonepat, Ballabhgarh


 Jodhpur, Falna                                    Ghaziabad



   Halol, Bharuch


Goa, Pune, Wardha, Raigad,
Aurangabad, Thane,
Ahmednagar, Nagpur,                                                  Morena
Solapur

                                     c
                                                        Medchal
Bellary, Shimoga,
Bangalore, Hubli

                                                  Salem, Kariakal,
                                                  Coimbatore,
Calicut                                           Perundurai




                                         44
 ANALYSIS, PRESENTATION
           AND
INTERPRETATION OF THE DATA




          45
             Indian Dri Production (2006-07)




              Indian Dri production (2006-07)



Gas Based                                   5264781




Coal Based                                 11012366




  Total                                     16277147




              Indian Dri Producton (2006-07)




                                      32%


                                                       Gas Based
                                                       Coal Based



   68%




                                 46
                    WARDHA REGION


              Furnace Type:- Induction Furnace




      SUPPLY TO WARDHA (fig in tonnes)

                           10000

      10000
       9000
       8000
       7000
       6000
TONNES 5000
       4000
       3000
       2000                                           150
       1000
          0
                      Supply                     Supply
                     Potential               Current
                                   SUPPLY




                             47
ANALYSIS ON COMPARISON OF EAF & IF




  FURNACES ALL OVER INDIA (EXCEPT EAST)




                         30%

                                          EAF
                                          IF


   70%




                  48
FINDINGS, SUGGESTIONS,
RECOMMENDATIONS AND
     CONCLUSION




         49
               SWOT ANALYSIS OF VIKRAM ISPAT


      STRENGTHS                                         WEAKNESSES

   Competent Manpower
                                               Price of the product
   Both HBI & DRI
                                               Promotional aspects
   Financial Backing
                                               Location    of   the    plant   [in   terms   of
   Brand Image
                                                transportation in the rainy season]
   Customer loyalty
                                               No development on the existing websites
   Good coordination among inter-
                                               Inflexible approach towards selling process
    departments
                                                [ Payment terms]
   Quality certification:-
                                               High cost of production
        ISO-9000
                                               Technology
        ISO-14001
                                               No further investments
        ISO-18000
   Ideal setup
   Plant located near the sea-shore


         OPPORTUNITIES                                     THREATS
   Exports
                                               Gas Price, Gas Volume
   Shipping Assets
                                               Price
   Coastal market via Sea
                                               Export benefits, Coal based Plants
   Pre-Sales service
                                               Volatile Steel Market
   Growing Demand of steel
                                               Increasing Power cost
   China Factor
                                               Availability of Imported Scrap
   Less consumption of steel in domestic
    market
   MPL has stabilized




                                       50
     PEST ANALYIS OF SPONGE IRON MARKET



            POLITICAL                                      SOCIAL

   Govt. Policy to Housing,
                                                High pollution
    Infrastructure
                                                Local Unionization
   Ever changing central govt.
                                                Local Market
   Tax structure
                                                Infrastructure Cost is High
   Inter State Tax
                                                Transportation cost is High
   Govt. Interference
   Development of infrastructure
   Recent Development On Gas Deal
    of RIL [ This is going to help
    Vikram Ispat in the long run post
    2009]


        ECONOMICAL                                    TECHNOLOGICAL
   Unorganized marketing strategy of
                                                Improvement in Coal Based Technology
    Scrap
                                                Unknown chemical composition of coal
   Imported Shredded Scrap
                                                 based DRI
   Increasing foreign Currency
                                                Higher Metallization of shredded scrap
   Demand of Coal based DRI
                                                Backward integration:-
   Lack of supply of Gas in comparison
                                                 “Steel Cos. Setting up their own sponge
    to the demand
                                                 iron Plants”
   Lower price of competitive Products




                                        51
                                                                          USP Analysis

                                                                          1=Good/10=Poor

                     Criteria               Vikram Ispat                  Coal based DRI                          Local Scrap    Shredded Scrap
          Fe Metallic                                      1                                 10                              3          1
  Metallization                                            3                                 10                              3          1
              % Carbon                                     1                                 10                              2          1
        Ph Content                                         1                                 10                              5          1
                      Price                                10                                1                               2          1
                     Freight                               7                                 1                               2          1




                                                                      Competitor Analysis

                       12
                               10                10              10              10
                       10
Score out of 10 10




                        8

                        6                                                                5
                                                                                                                                   Coal based DRI
                        4           3                  3                                                                           Local Scrap
                                                                      2                                   2              2
                        2               1                  1              1                  1       1        1      1       1     Shredded Scrap

                        0
                                                   n




                                                                                     t
                                                                 n
                               ic




                                                                                en




                                                                                                                     t
                                                io




                                                                                                      e
                                                                  o




                                                                                                                  gh
                               l
                            ta




                                                                                                    ic
                                            at



                                                               rb




                                                                                 t
                                                                              on




                                                                                                                ei
                                                                                                  Pr
                         et



                                          liz



                                                            Ca




                                                                                                              Fr
                        M




                                                                          C
                                        al



                                                           %



                                                                      Ph
                                     et
                      Fe



                                    M




                                                                          Criteria




                                                                                         52
                                             Score out of 10 10




                                     0
                                         2
                                               4
                                                   6
                                                                  8
                                                                      10
                                                                           12
                Fe
                     Me
                        tta
                            lic
                Me
                   ta   lliz
                            at i
                                on

                 %
                     Ca
                        rb     on

                Ph




53
                     Co
                       nt e




     Criteria
                               nt


                         Pr
                           ice
                                                                                Vikram Ispat's Analysis




                     Fr
                       ei g
                           ht
                                                   Vikram Ispat
                      Current Metallic Suppliers


At present there are three areas from where metallic Supplies are made:-
Raipur- Coal Based Sponge Iron
Karnatka- Coal Based Sponge Iron
Imported Scrap- Areas are mostly Middle East, Europe
Pig Iron – Tata Sponge Iron




                                  Integration

Backward Integration
According to the areas surveyed there were no cases of any Backward Integration so
there potential requirement from VI remains intact as long as quality and Price
remains within their limit




Forward Integration
Out of total survey there was only one customer who has got planning of Forward
integration. Alok Ingots is the one which is planning to setup Rolling Mill




                                          54
                         Scenario Western Region




                                     Projected Demand

         44000

                               43000                           43000
         43000
                                                  42450

         42000
Demand




         41000
                                                                          Projected Demand
         40000

                  39000
         39000


         38000


         37000
                              2007-2008          2008-2009    2009-2010

                 Jan-Dec'06                Projected Demand

                                          Year




                                           55
                         Scenario North Region




                               Scenario North Region

         10000
         9000
         8000
         7000
Demand




         6000
         5000                                                 Projected Demand
         4000
         3000
         2000
         1000
            0
                              2007-2008 2008-2009 2009-2010

                 Jan-Dec'06          Projected Demand
                                     Year




                                            56
                           Scenario South Region




                            Scenario South Region

         12000
                                           9650    9900
         10000                 8850
Demand




          8000
          6000                                            Projected Demand
                    3947
          4000
          2000
             0
                 Jan-Dec 2007-2008 2008-2009 2009-2010
                    06

                            Projected Demand
                                  Year




                                      57
                       Segment Wise Demand
Region-west


                              2007-       2008-           2009-
                  Segment     2008        2009            2010
                     EAF        30500       28950           29500
                      IF        11500       12500           12500
                  Foundries      1000        1000            1000
                    Total-
                    West       43000          42450                 43000




                       Segment Wise Demand
              140000

              120000

              100000

               80000

               60000
                                                                            2009-10
               40000
                                                                            2008-09
               20000                                                        2007-08

                   0
                                           Foundries


                                                       Total-West
                        EAF


                                IF




                                Segment




                                     58
Region-north


                 Segment   2007-08    2008-09   2009-10
                 EAF          5850       6850      7350
                 IF            800       1500      1500
                 Total-
                 north       6650       8350      8850




                   Segment Wise Demand(North)

    18000
    16000
    14000
    12000
    10000
                                                          Total-north
     8000
                                                          IF
     6000                                                 EAF
     4000
     2000
        0
               2007-08       2008-09            2009-10
                              Year




                                 59
                 Segment   2007-08   2008-09   2009-10
                    IF      8850      8650      9900
Region-south




                   Segment Wise Demand(South)


     10000
      9800
      9600
      9400
      9200
      9000
      8800                                                  IF
      8600
      8400
      8200
      8000
               2007-08         2008-09            2009-10
                                Year




                                60
New
              New Customers        EAF/IF   2008-09   2009-10
              Wada/Murbad/Nashik   IF          2000      2000
              Pune/Ahmednagar      IF          1000      1000
              Jalna/Aurangabad     IF          1000      1000

Customer/Market identified Region wise and their Projected Demand


Region-West




                                    61
                                New Customers-West


    4000

    3500

    3000          New Customers     EAF/IF    2008-09   2009-10
    2500          Ludhiana          IF           2000      2000
                  Mandigobingarh    IF           1000      1000
    2000          Kanpur            IF           1000      1000      2009-10
                  Bhiwadi           IF           1000      1000      2008-09
    1500

    1000

     500

       0
           Wada/Murbad/Nashik   Pune/Ahmednagar   Jalna/Aurangabad
                                     Area




Region-North




                                        62
                                New Customers-North

       4000

       3500

       3000

       2500

       2000                                                                       2009-10
                                                                                  2008-09
       1500

       1000

        500

          0
               Ludhiana      Mandigobingarh        Kanpur   Bhiwadi
                                          Area




                 SUGGESTIONS FOR IMPROVEMENT


The suggestions for improvement are as follows :-
       VKRAM ISPAT should be little flexible in the pricing and credit policy.


       Major and old customers should be given more importance.


       $There should be some marketing personnel who should be given the
        responsibility of creating more one to one relationship and be in regular
        contact with them.




                                              63
   There should be only one price decider in every branch office, who should get
    the quotation approved by the head office before telling to customers.


   There should be more of advertisement.


   There should be more of publicity activities like inviting the customers for get
    together or parties and functions.


   Steps should be taken to establish a unit or in territory region so as to avail tax
    benefits.


   Steps should de taken to create the awareness about the company especially in
    that region where VKRAM ISPAT product is supplied by its agent.


   There should be more of R&D activities undertaken through summer trainees
    once in every year for the betterment of performance in all the branches and
    zones.




   Concentration should be given to various new industries coming up so as to
    explore them and increase the market share.


   The product should be supplied strictly at the prorata demanded by the
    customers and not more or less than that, as it changes the price of the material
    drastically.


   Agents’ activities should be closely monitored as there are chances of
    malfunctions.




                                         64
CONCLUSION


Working on this project was an enriching experience for me not only I got to know
about the Sponge Iron manufacturing process, its requirement, its market but also
about the various different industries related directly with VKRAM ISPAT business
i.e. steel industries, foundries industries, welding industries and casting industries.
And also I got the opportunity to be the part of lower level marketing department and
that too in Aditya Birla Group. I had a wonderful experience of meeting with different
kinds of high profile people and finding out the satisfaction level of the customers
with regard to all other competitors. I was given the opportunity of traveling and
surveying in eight states of India, in total I traveled about 8,000 kms in a span of five




                                           65
weeks which was in itself a wonderful experience to check my level of working in the
corporate sector in the field of marketing.
It is found that most of major customers who are mainly quality conscious prefer
VKRAM ISPAT products.
It is found that VKRAM ISPAT is the market leader of Gas Based DRI in the
domestic market.
Old customers in this field are very much aware of VKRAM ISPAT but new
customers are not.
Quality of VKRAM ISPAT products are perceived as the best by all the customers.
In this competitive environment of DRI the rates are determined on the basis of
international prices.




                                              66
                        BIBLIOGRAPHY




                   BIBLIOGRAPHY




BOOKS:

    Philip Kotler, Marketing Management, 12th edition, Pearson Education
     Publication.


                                  67
     C.R.Kothari, Research Methodology Methods And Techniques, 2nd Edition,
      Wishwa Prakashan.


WEBSITES:

     www.adityabirla.com

     www.indiametals.com

     www.metalbulletin.com

     www.mindtools.com




                                    68
     ANNEXURE




       VIKRAM ISPAT
(A UNIT OF GRASIM IND. LTD.)
      Aditya Birla Group

        Questionnaire



             69
Name of the Organization:      _________________________________
Address & Contact no:


Contact person: ___________________________________________


1      Which type of Process you use for Steel making?

             Electric Arc Furnace
               Induction furnace
                     Corex
              Mini Blast Furnace
                     Foundry


2      What is the size of Furnace? (NOS * MT)

         1 to 10 ( )                                    21 to 30 ( )
         11 to 20 ( )                                    >30     ( )

3      What is present monthly Production (mt/month)?

       …………………………………………………………………………………


4      What are your main grades of steel ?

       Alloy steel                         Stainless steel
       MS                                  SG Iron


       If any other please specify ____________________




5.     What are your different types of Products?

       Long products, Ingot                    Flat product
       HRC                                     Casting

       If any other please specify _____________________________

4      What are types of production facilities?



                                          70
      LRF                                     CC (Continuous Casting)
      Rolling

      If any other please specify ____________

5     What is Average charge mix Percentage ?

     Vikram Ispat DRI/HBI
     OTHER Gas Based DRI
     Coal Based DRI
     Pig Iron
     Imported Scrap
     Local Scrap
     Returns
     Others


6     Who are your current metallic suppliers?
      Gas based DRI:                       Coal based DRI:
      Pig Iron                             Scrap

      If other please specify ___________

7     At Present is your plant Backward Integrated or forward integrated?

      Backward ( )                      Forward ( )

      If YES is it                        If yes please specify
      Coal based DRI
      Gas based DRI                       If NO any future plans for doing it
      Others (Specify)
      If NO any future plans for doing it

8     What is the possibility of upgrading the customer to high value product?
      …………………………………………………………………………………
      …………………………………………………………………………………

9     Does your plant have DRI continuous feeding facility?

      YES                              NO


10    What is the present requirement of raw material from Vikram Ispat ?


           Product type                                           Quantity
Prime HBI/DRI/



                                         71
Granules
Fines




11     What would be your potential requirement in the future (Specify time period)?


Product type                                        Quantity




15. Are you satisfied by the quality of the material from VIKRAM ISPAT?


           Parameters Satisfied      Moderately    Neutral     Less         Dissatisfied
                                     satisfied                 satisfied

           Products
A          Dri
B          Dri
           Granules

C          Dri Fines




16. Which one you prefer among these?

Gas based------vs----------Coal based DRI
Gas based------vs---------Scrap
Vikram Ispat-- vs----------Others



17. How satisfied are you with these services provided from Vikram Ispat?



                                        72
                        Satisfied   Moderately Neutral         Less        Dissatisfied
                                    Satisfied                  satisfied


A          Pre-Sales


B          Delivery


C          Complaint
           handling


D          Delivery


E          Post-Sales




18. What are your further expectations from Vikram Ispat in terms of service?

………………………………………………………………………………………

19. What are the landing charges of DRI from Bellary and Raipur?


    Bellary

    Raipur




20. What is the electric consumption when you use following products?


 Gas based DRI
 Coal based DRI
 Local scrap
 Imported Scrap




                                         73
 Casting



 21. What is the percentage of Waste when you use following products?


Gas based DRI
Coal based DRI
Local scrap
Imported Scrap
Casting



22. What is the premium that you are willing to pay for Gas based Dri over Coal
    based DRI ?

    ……………………………………………………………………………………


23. We have started Sealing of Trucks while dispatching so it is helping you in terms
    of quality & other matter?
    ………………………………………………………………………………………………………………………….......




                                  Customer Profile


 Name of the Company         :………………………………………………



                                         74
Promoters                 :………………………………………............

Name of the CEO           :……………………………………………….

Last years Turnover       :……………………………………………….

Current years Turnover    :……………………………………………….

Bankers’ Name             :……………………………………………….

Product Profile           :………………………………………………

Expansion programme if any :

……………………………………………………………................
………………………………………………………………………………

Name few of your biggest competitors?

a. ……………………………………..                     b. ………………………………….
c. ……………………………………..                     d. ………………………………….

How do you describe Vikram Ispat in one sentence?

………………………………………………………………………………………
………………………………………………………………………


Name:      …………………………….
Designation:…………………………….

Date:       ……………………………..                             Signature




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