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A COMPREHESIVE STUDY OF MARKETING

VIEWS: 53 PAGES: 71

									SUMMER TRAINING REPORT
      ON


(A COMPREHESIVE STUDY OF MARKETING STRATEGY FOR THE
SECONDARY PRODUCTS)
        AT
BHILAI STEEL PLANT
(AN INTEGRATED UNIT OF STEEL AUTHORITY OF INDIA LTD.)




       BY

( NIKHILESH YADAV)

     2007-08

IN PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION DEGREE




DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY ,RAIPUR (C.G.)




                                                              1
CERTIFICATE

This is to certify that Mr. Nikhilesh Yadav Of DIMAT, MBA Semester – II has
successfully completed the summer training in partial fulfillment of requirement
for the award of MBA Degree prescribed by the Chattisgarh Swami
Vivekanand Technical University, Bhilai.


This report is the record of authentic work carried out by the student during the
academic year 2007 – 2008.



(Pradip Singh)

Internal Guide                       Director




                                                                                    2
DECLARATION


I Mr. NIkhilesh Yadav hereby declare that this report is the record of authentic
work carried byme during the academic year 2007-08 in Bhilai Steel Plant (BSP)
An integrated unit of Steel Authority (SAIL)
Bhilai, District Durg (C.G.)




                          (                       )

                           Signature of the student


                           ( Nikhilesh Yadav )

                           Name of the student




                                                                                   3
                             ACKNOWLEDGEMENT




I express my sincers thanks & regards to Bhilai Steel Plant, for giving me the
opportunity to study on the topic “A comprehensive study of Marketing strategy
for Secondary products at Bhilai Steel Plant.”
        First & foremost I express my heartily thanks to Mr. Nitin Deshpandey
(Director DIMAT) my project guide Mr. Pradip Singh. I also thanks to Mr. Rama
Raju MD (BSP), Mr. S.M. Singh (GM-HRD), Mr. Anil Sharma (DGM-HRD), Mr. S.
Dubey (DGM-HRD), Mr. D.K. Jadhav (Sr. Mgr.-HRD), Mr. Namdev Barange
(Training coordinator –HRD) V.T. Section.
        I also express my heartily thanks to Mr. S.R.Rai GM (M&SP) &
Mr.Ramarao AGM (M&SP) for their kind guidance. I also express my sincere
thanks to my coordinator Mr. S.S. Parida (M&SP) and all the heads of concerned
sections of marketing department, Mr. Sanjay Jaswal, Mr. D.P. Viswakarma, Mrs.
Susmita Dey,     Mr.arindham jain (M & SP), Mr.Satpathy, Mr. R. Garga, and Mr.
Devendra Srivastava, Mr. P.K. Sahu for their kind cooperation in this project
work.
        And lastly, I would like to thank all my group members for their kind
cooperations to complete this project work successfully.




Date…                                                      NIKHILESH YADAV




                                                                             4
                       EXECUTIVE SUMMARY

      During my eight weeks of summer training in the Bhilai Steel Plant, I have
done project research work on “Study on Marketing & Sales analysis of
Secondary Products”.
      The project report tells us about the secondary product section and the
whole process, starting from collection of scrap to the lifting of material and its
distribution. The initial part of the report tells about SAIL and importance &
performance of Bhilai Steel Plant in the steel authority. It also tells about the
contribution of Bhilai Steel Plant to Sail’s profit. The next part describes the
procedure of selling & distribution the secondary product. And the major
consumer of BSP in this field.
      It also throws light on use of secondary products for re-rolling mills as raw
material and the process of re-rolling and its products. The finding of my study
emphases the problem which I have observed. Such as refund of payment
procedure, price list of material, which is not available in the stockyard, all the
marketing decision relating to prime product are taken by the SAIL and carried
out by CMO.
      In my opinion the organization is more concerned with larger order of steel
products by ignoring the smaller orders of steel products. The exports policy of
SAIL considers it secondary to domestic selling as it is a Govt. undertaking and
first priority is given to domestic marketing. The conclusion deals with the
objective of Bhilai Steel Plant to achieve sales analysis of secondary products.
The last portion conclusion & recommendation to improve the functioning of
marketing department of Bhilai Steel Plant.




                                     INDEX


                                                                                 5
  Sr. No.                      Content            Page NO.

Chapter-1    Introduction                            7
Chapter-2    Company Profile                         22
Chapter-3    Product Profile                         32
Chapter-4    Objective & scope of the project        41
Chapter-5    Research Methodology                    43
Chapter-6    Data collection and interpretation      46
Chapter-7    Conclusion                              61
Chapter-8    Limitation                              63
Chapter-9    Recommendation                          65
Chapter-10   Appendices                              66
Chapter-11   Bibliography                            70




                                                      6
                                CHAPTER -1
                        INTRODUCTION




                 STEEL ATHOURITY OF INDIA LIMITED (SAIL)


During struggle for independence, Pt. Jawahar Lal Nehru our first prime minister
of independent India had a very clear vision about the role of steel in the

                                                                              7
development of our nation. Although Tata Iron & Steel Co. 9TISCO) established
in 1907 marking the beginning of Indian Steel industry followed by Indian Steel
Corporation (1918) they were too small to meet the development requirement of
a big country like ours. Therefore, in the first industrial policy resolution of the
government soon after independence, government decided to establish steel
plant in Public Sector only. However work could be started at faster pace in 1954
when. Hindustan Steel Limited was formed and the steel plants of                1 MT
capacity of each were established with provision of further expansion at Bhilai,
Rourkela and Durgapur with assistance from USSR, West Germany and UK
respectively.


Steel Authority of India Limited (SAIL) is the leading steel-making company in
India. It is fully integrated Iron and Steel maker, producing both basic and special
steel for domestic, construction, Engineering, Power, Railway, Automotive and
Defense industries and for sale in export markets.


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 sheet, 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 religions of India and
situated closed to domestic source of three 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 (ITD). 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 known-how in steel making gained
over decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers
services and consultancy to clients world-wide.

                                                                                    8
SAIL has a well-equipped Research and Development Center for Iron and Steel
(RDCIS) at Ranchi which helps to produce quality steel and develop new
technologies for the steel industry. Beside SAIL has its in-house Center for
Engineering Technology (CET) Management Training Institute (MTI) and Safety
Organization at Ranch. Its      captive mines are under the control of the Raw
Materials Division in Kolkata. The Environment Management Division and
Growth Division of SAIL operate from their headquarters in Kolkata. Almost all its
plants and major units are ISO certified.


Integrated Steel Plants :-


    Bhilai Steel Plant (BSP) in Chhattishgarh.
    Durgapur Steel Plant (DSP) in West Bengal.
    Rurkela Steel Plant (RSP) in Orissa.
    Bokaro Steel Plant (BSL) in Jharkhand.
    IISCO steel plant (IIS) in west Bengal.




Special Steel Plants :-


    Alloy Steel Plants (ASP) in West Bengal.
    Salem Steel Plant (SSP) in Tamil Nadu.
    Visvesvaraya Iron and Steel Plant (VISL) in Karnataka.


Subsidiaries:-
    Maharashtra Elektrosmelt Limited (MEL) in Maharastra.




    JOINT VENTURE :


                                                                                9
SAIL has promoted joint venture in different areas ranging from power 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 Rurakela Steel Plants which have a combined
capacity of 240 MW.


       Bokaro Power Supply Company Pvt. Ltd.


This 50:50 joint venture between SAIL and the Damodar Velley Corporation
formed in January 2002 is managing the 302 MW power generation and 1880
tones per hour steam generation facilitates at Bokaro Steel Plant.




       Bhilai Electric Supply Company Pvt. Ltd.
Another    SAIL-NTPC     joint   venture   of 50:50 basis formed in March 2002
manages the 74 MW power plant - II of Bhilai Steel Plant which has additional
capacity of producing 150 tones of steam per hour.
   UEC SAIl information technology Ltd.
This is 40:60 joint ventures between SAIL and USX Engineers & Consultants. "A
subsidiary of the US Steel Corporation, promotes information technology in the
steel sector.




       MetalJunction.com Private Ltd.
   A joint venture between SAIL and Tata Steel on50:50 basis, this company
   promotes e-commerce activities in steel and related areas.


       SAIL – Bansal Service Centre Pvt. Ltd.



                                                                            10
SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to
promote a service centre at Bokaro with the objective of adding value to steel.


       North Bengal Dolomite Ltd.


A joint venture between SAIL and West Bengal Mineral Development
Corporation Ltd. on50:50 basis was formed for development of Jayanti Dolomite
Deposit, Jalpaiguri for supply of Dolomite of DSP and other plant.


       Romelt - SAIL (India) Ltd.


A joint venture between SAIL, National Mineral Development Corporation
(NMDC) and Russian promotes for marketing Romelt technology developed by
Russia for reducing of iron bearing materials, which is carried out with carbon in
single stage reactor with the use of oxygen.




 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.




                                                                                  11
                BACKGROUND & HISTORY OF SAIL :


A Rich Heritage:


The Precursor


SAIL traces its origin to the formative years of an emerging nation-India. After
independence the builders of modern India worked with a vision - to lay the
infrastructure for rapid industrialization of the country. The steel sector was to
propel the economic growth. Hindustan Steel Private Limited was set up on
January 19, 1954. The President of India held the shares of the company on
behalf of the people of India.


Expanding Horizon (1959-1973)


Hindustan Steel Limited (HSL) was initially designed to manage only one plant
that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the
preliminary work was done by the Iron and Steel Ministry. From April 1957 the
supervision and control of these two steel plant were also transferred to
Hindustan Steel. The registered office was originally in New Delhi. It moved to
Kolkata in July 1956 and ultimately to Ranchi in December 1959.


A new steel company, Bakaro Steel Limited was incorporated in January 1964 to
construct and operate the steel plant at Bakaro. The 1 MT phases of Bhilai and
rourkela Steel plants were completed by the end of December 1961. The 1MT
phase of "Durgapur Steel Plant” was completed in January 1962 after
commissioning of the Wheel and Axle plant. The crude steel production of HSL
went up from 1.58 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel
Plant was completed in September 1967 after commissioning of the Wire Rod
Mill. The last unit of the 1.8 MT phase of Rourkela the Tandem Mill - was
commissioned in February 1967, and the 1.6 MT stage of Durgapur Steel Plant
was completed in August 1969 after commissioning of the Furnace in SMS. Thus
with the completion of the 2.5 MT stage at Bhilai 1.8 MT at Rurkela and 1.6 MT at



                                                                               12
Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT
in1968-69 and subsequently to 4MT in 1972-73.




Holding Company


The Ministry of Steel and Mines drafted a policy statement to evolve a new model
for managing industry. The policy statement was presented to the Parliament on
December 2, 1972. On this basis the concept of creating a holding company to
manage inputs and outputs under one umbrella was mooted. This led to the
formation of Steel Authority of India Ltd. The company, incorporated on January
24, 1973 with an authorized capital of Rs. 2000 Crs. was made responsible for
managing five integrated steel plants at Bhilai, Bokaro, Durapur, "Rourkela and
Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was
restructured as an operating company.
Since its inception SAIL has been instrumental in laying a sound infrastructure for
the industrial development of the country. Beside, it has immensely contributed to
the development of technical and managerial expertise. It has triggered the
secondary and tertiary waves of economic growth by continuously providing the
inputs for the consuming industry.


SALES RESIDENT MANAGER (SRM):
There are four SRM’s located at the four integrated steel plants. The SRM acts
as an interface between the CMO and the steel plant.
The role of SRM are:
      To check the availability of materials in the plant and to oversee the
       increase in production.
      To make the final rolling plan.
      To dispatch material as per orders.
      To prepare demand forecast every month.




                                                                                13
      SAIL Today


SAIL today is one of the largest industrial 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.
       Having achieved the initial goal of laying the foundation for the industrial
development of the country. SAIL took up the new challenge of facing the era of
liberalized economy and the emerging competitive scenario in the Steel market
on the eve of entering the new millennium, SAIL launched its Financial and
Business restructuring program. The strategy includes a divestment of non-core
activities, restructuring of marketing function and a focus on pruning cost of
operation. The goal for the company is to emerge as one of the lowest cost
producer in the global steel market.




PRODUCT MIX :


Product Wise
 Semis                      Blooms, Billets & Slabs
 Long Products              Structurals
                            Crane Rails
                            Bars, Rods & Rebars
                            Wire Rods
 Flat Products              HR Coils, Sheets & Skelp
                            Plates
                            CR Coils & Sheets
                            GC Sheets\ GP Sheets and Coils
                            Tinplates
                            Electrical Steel
 Tubular Products           Pipes
 Railway Products           Rails
                            Wheels, Axles, Wheel Sets

                                                                                 14
Plant Wise




 Bhilai Steel Plant     Blooms, Billets & SlabsBeams
                        Channels, Angles,bars
                        wire rods (tmt, plain& ribbed)
                        plates, Rails & heavy structurals
                        Pig Iron, Chemicals & Fertilisers
 Bokaro Steel Plant     HR Coils & Sheets
                        Plates
                        CR Coils & Sheets
                        GP Sheets & Coils/ GC Sheets
                        Pig Iron, Chemicals & Fertilisers
 Durgapur Steel Plant   Blooms, Billets & Slabs
                        Joists, Channels, Angles
                        Bars, Rods & Rebars
                        Skelp
                        Wheels, Axles, Wheel Sets
                        Pig Iron, Chemicals & Fertilisers
 Rourkela Steel Plant   HR Coils
                        Plates
                        CR Coils & Sheets
                        GP Sheets/ GC Sheets
                        Tinplates
                        Electrical Steel
                        Pipes
                        Pig Iron, Chemicals & Fertilisers
 Salem Steel Plant      Stainless Steel




                                                            15
THE SEVEN C’S OF SAIL

   Consistent Quality

   Committed Delivery

   Customized product

   Competitive Price

   Complaint Settlement

   Contemporary Products

   Culture of Customer Service




                                  16
  CENTRAL MARKETING ORGANIZATION (CMO)



This is the marketing unit of SAIL. The CMO of the SAIL was formed in 1963.
When public sector plants were managed by Hindustan Steel Pvt. Limited. It
caters to the domestic market and is responsible for coordinated manner. The
CMO undertakes marketing of materials produced by SAIL, plant through a
distribution network of 43 Branch sales offices (BSO), stockyard, dockyards,
consignment agents & extension counter spread all over country. Central
Marketing Organization (CMO) most of its division have their headquarters at
Kolkata and they report to the Executive Director of marketing at Kolkata, who
in turn report to the Director headquartered at Delhi. However departments like
transport & shipping, export and imports etc. report to Executive Director
located at Delhi.




MAJOR FUNCTIONS OF CMO :
Marked Research Demand Assessment. segment prioritization, product planning,
sales and after sales service etc. CMO has a network of sales and after sales
service etc. CMO has a network of sales officer and stockyards within the country
for purpose of distribution of materials from these outlets. The other aspect
controlled by CMO are planning, customer service, transport & shipping data
information system etc.


The distribution of the Iron & Steel products is done by the CMO through 45
branches and stockyards located in all important steel consuming centers in
the country. For administration purposes, the branches are grouped under 6
regions.


The distribution through the stockyard is of the order of 69% & through due
dispatches by the plant 31%. They adopt various schemes to see that the
movement of the products is fast & customers are satisfied.
                                                                              17
OTHER IMPORTANT FUNCTION OF CMO :

CMO has got responsibility to sell Pig Iron. Mild Steel products manufactured by
BSP, DSP, RSP & BSL having its Head Quarters at Ispat Bhawan. 40.
Chowrangee Road. Calcutta- 71.


CMO has got 43 branches spread throughout the country with stockyard for
storing & selling Iron & Steel materials produced by plants.


Each Branch is headed by a Branch Manager having other colleagues including
Finance Executive to help Branch Manager in day to day operations.


CMO has got transport & shipping department to handle the export-import
consignment at different parts. These officers are at following places:


(a) Kolkata   (b) Haldia    (c) Chennai (d) Vishakapatnam (e) Paradeep


To co-ordinate about production & dispatch in different steel plant. CMO has got
SRM offices at following places:


(a) Bhilai    (b) Durgapur (c) Rourkela


To take care or the exports CMO has got office at New Delhi.


There is separate fertilizers & chemical divisions to sell fertilizers & chemicals
produced by the plants.




                                                                               18
Marketing Management Group :


This group is headed by        marketing      managers. Marketing managers are
responsible for market strategy and planning interims of sales, market share &
profitability in a specific market segment.


Salem Steel Products Division :


This division headquartered at Chennai by Salem Steel Plant. They have field
office at each of the regional headquarters as well as major consumption centers.


Marketing Services Division (MSD) :


This division looks after the management is supported by a computer center
where data on marketing operation throughout the county are processed on a
regular basis to bring out periodical MIS report. The responsibility of designing &
implementing road movement, handling contract system ect. is also with them.


Commercial Division :


This division deals with formulation of policies on distribution. This division also
deals with parliament question on behalf of CMO.




Application Engineering Group (AEG) :


This division deals with application about selection of best suited raw material
development of new products required by the market etc. It also undertakes
technical inspection on behalf of the CMO wherever needed. The AE personnel
are posted at each regional headquarters.


                                                                                 19
Fertilizers & Chemical Division :


This division is headquartered at Kolkata and looks after distribution of
Ammonium Nitrate products by Rourkela Steel Plant and ammonium Sulphate
produced by all the steel plants. This division has got offices at field location
where the demand for fertilizers is substantial.


Market Research Group :


This division undertakes assessment of demand for pig iron & steel product for
long term perspective and advice management about the market. This division
brings out periodic report covering various aspects of consumption market
condition. Competitors activities etc. They have field repetitive for collecting and
forwarding market intelligence on the new quarters.


Transport and Shipping Department:


The department of headquartered at Koltata and has branch offices at major port
areas. This division is responsible for handling imports and export on behalf of
SAIL. This division clears the goods imported on sale at the ports and forwards
the same to various steel plants.


Finance and Account Department :


This department renders financial advice to the line managers as well as CMO
headquarters and maintain the account of the organization covering home sales,
transport and shipping exports, residual imports, internal audit etc.




Special Project Division :
This Division is headquarters at Delhi & reports the Director (commercial). This
division deals with modernization of stockyards giving technical help and
assistance to the stockyard in maintenance of handling equipment etc. The



                                                                                 20
department also deals with construction of office, building of central marketing
organization and acquisition of construction of residential accommodation etc.




Regional Offices of CMO :



Northern Region

Eastern Region

Southern Region

Western Region




Northern Region                 Southern Region


Agra                            Bangalore
Allahabad                       Calgawan
Chandigarh                      Chennai
Faridabad                       Coimbator
New Delhi                       Hyderabad
Kanpur                          Cochin


Easter Region                   Western Region


Siliguri                        Ahmedabad
Bhubaneswer                     Baroda
Bokaro                          Bhilai
Durgapur                        Bhopal
Jamshedpur                      Goa
Guwahati                        Indore



                                                                                 21
    CHEPTER - 2
COMPANY PROFILE




                  22
                           BHILAI STEEL PLANT
BRIEF DESCRIPTION OF BHILAI STEEL PLANT
BRIEF HISTORY


Bhilai Steel Plant (BSP) is a unit of Steel Authority of India (SAIL). Bhilai Steel
Plant is a pulsating giant in the glorious Industrial context of India. It came into
existence on 10th June 1957. BSP the functionary of SAIL is a symbol of lndo-
Soviet Techno economic collaboration, and is one of the first three integrated
steel plant set up by the Government of India to build- up a sound base for
industrial growth of the country. The agreement was signed on 2nd February,
1955 for 1 MT production capacity; which rose to than 2.5 MT (1967). and then
to 4 MT in 1988 production of Crude Steel Per year.
              On 4th February 1959 the President, Dr. Rajendra Prasad dedicated
Bhilai to the Nation by inaugurating the Blast Furnace No. 1 for production. Since
then Bhilai has never looked back and has steadily grown and modernized day
by day. Bhilai has all along been giving special attention to the employment to
the weaker section. Bhilai has contributed significantly to meet the Iron & Steel
requirements of the country.
               The Steel Plant has 10 coke ovens batteries and 7 Blast Furnace.
The Plant get its requisition of raw materials and necessary resources by various
adjoining centers. The Iron ore is met from the captive mines of the plant which is
situated at Dalil-Rajhara, the mechanized iron ore mines 100 kms south from
BSP. Lime stones also come from the manual mines of Nadini about 25 kms to
the North of the Plant. The need of Dolomite is fulfilled from the queries of Hirri in
Bilaspur District.
              Steel plant requires various forms or energy, viz. electricity, fuel
(solid, liquid & gases). steam oxygen, compressed air. chilled water, air blast etc.
At Bhilai the main source of electricity is the CSEB grid from the NTPC korba
Station, about 250 Kms. away. The Steel Plant has have their own capacity of
generating electricity of 36 MW and 74 MW by power plant I & II respectively as
the alternative source of power supply to meet emergency loads in case of
                                                                                     23
interruptions.
                 There exist and extensive communication system at the work which
include Auto Telephone Exchange dispatched Communication system, shop-
floor loudspeaker system, gas and fire signaling and blocking system of the plant
rail transport facilities etc.


PLANT LAYOUT:

The unit or       the plant has been laid in sequential formation according to
technological interrelationship so as to ensure un-interrupted flow of process
material like coke. Slag etc and to minimize the length of various inter plant
connection utilities and services.

RAW MATERIALS:

The plant owns and manages the mechanized and manual iron ore mines at Dalli
Rajhara, Situated about 100 KM from Bhilai and Limestone mine at Nandini.
ahout 25 Kms away from plant. The plant owns quarries at Hirri, Chhattisgarh (for
Dolomite) Over a million tones of minerals of mines annually from the captive
mines.


SERVICES & UTILITIES
 BSP is an integrated Steel Plant which requires various forms of energy like
 electricity, Fuel (solid, liquid and gaseous) stream, oxygen, compressed air,
 chilled water, air blast etc.
          Electricity power is supplied by BESCL (Bhilai Electric Supply Company
 Limited) a joint venture between National Thermal Power Corporation and SAIL
 from Korba 250 Km away from Bhilai.
          Water supply comes from a well constructed system of water works of
 the state         government - Tandula reservoirs, water from nearby rivers are
 brought to two huge water       reservoirs ( Maroda Tank 1 & 2) through a well laid
 canal, 60 km long from BSP.
           The other utility gaseous liquid and solid fuels, chilled water, steam.
 Oxygen and compressed air are provided- at             Plant by centralized utility
 services.
           There exists an extensive communication system at work place, which
                                                                                 24
 includes an auto telephone exchange, dispatch communication system, gas and
 fire alarm signal, yeard communication and automatic signaling and blocking
 system of plant, rail transport facility and shop floor loudspeaker system.


Export section :
Bhilai Steel Plant has an export section to take care of the requirement of
International Trade Division (ITD). The export enquiry received by International
Trade Division are sent over to Bhilai for detail discussion. After the confirmation
from Bhilai. International Trade Division initiates action on commercial settlement
and enter into a contract with the foreign buyer. The work order then issued by
International Trade Division is distributed to various agencies likes Purchase,
Finance and GM Services. Soon after subsequent rolling takes place. After
inspection is made the consignment is sent through railways to Vishakapatnam
port for the loading into ship. In case of export to Nepal, The consignment is
moved by wagon either to Patna, Kanpur or Bhilai for onward dispatch to the
buyer in Nepal.


MANAGEMENT

Initially BSP was under the administrative control of the Ministry of Iron and Steel
with powers delegated to the chief' of the Plant. Later Hindustan Steel Ltd.
Controlled the management, which was formed on 19th January 1954 to manage
Rourkela Steel Plant, Bhilai Steel Plant became the constituent of Hindustan
Steel Ltd, With the formation of Steel Authority of India Limited       (SAIL) 24th
January 1973.
           In the organization of BSP the Managing Director (MD) is the top most
authority responsibility for overall control. There are six Executive Directors in
following manner:
Executive Director          Personal &Administration
Executive Director          Materials Management
Executive Director          Project
Executive Director          Finance & Accounts
Executive Director          Works
Executive Director          B.S.P.
Director                    Medical & Health Servi
                                                                                 25
They have under them General Manager (GM), DGM, AGM, Sr. Manager &
Manager. Also, GM (Marketing & Strategic Planning) reporting to MD directly has
the sole responsibility on Marketing of various main products & secondary
products through CMD and BSP.



Employee strength of past three years

Employees as on – 01/04/04

                  Executives      Non – Exe.      Casuals          Total
Works               2138          23811           7               25956
Gen. Admn.           555          2315            0               2870
Township&Me          307          3793            1               4101
d.
Mines                169          3660            3               3832
Construction         113          258             0               371
   Total            3282          33837           11              37130

Employees as on – 01/04/05

                  Executives      Non – Exe.      Casuals          Total
Works             2046            23340           6               25392
Gen. Admn.        586             2249            0               2835
Township&Me       338             3617            1               3956
d.
Mines             147             3476            1               3624
Construction      117             242             0               369
   Total          3234            32924           8               36166

Employees as on – 01/04/06

                  Executives      Non – Exe.      Casuals          Total
Works             1988            23041           4               25033
Gen. Admn.        657             2419            0               3076
Township&Me       331             3409            1               3739
d.
Mines             148             3142            0               3290
Construction      116             206             0               322
   Total          3240            32215           5               35460




                                                                             26
THE QUALITY POLICY OF BSP

    Attaining market leadership through enhancing customer satisfaction.
    Achieving continual improvement in productivity, quality and salability of
      our products.
    Active involvement of all our people in achieving our goals, objective and
      targets.
    Adherence to a quality management system based on ISO :9001:2000
      and its periodic review for continued effectiveness.



ORGANIZATIONAL OBJECTIVE

To enhance customer satisfaction through :-

    Improvement in productivity ad product quality.

    Skill enhancement of our people by competence, commitment and culture
      building.

    Production as per Customer Requirement.




                                                                                  27
ENVIRONMENT POLICY

Bhilai Steel Plant committed to protect environment and shall strive to :

  1. Introduce sound environmental management practices for minimizing
     pollution and its impact on air. water and land.

  2. Conduct operations in an environmentally responsible manner for
     complying with legislation and regulations related to its environmental
     aspects.

  3. Conserve and optimally utilize raw materials. energy. water and other
     resources.

  4. Minimize waste generation and promote its recovery. Recycling and re-
     use.

  5. Achieve continual improvement in environmental performance by setting
     and reviewing the objectives and targets periodically.

  6. Enhance environmental awareness amongst employees and interested
     parties.

  7. Communicate environmental policy to the persons working for or on
      behalf of the organization and make it available to public on demand.




                                                                               28
ORGANIZATION STRUCTURE OF BSP :



                                 MD




 ED         ED         ED           ED           ED       ED
(P & A)   (WORKS)    (PROJECT)     (MINES)       (M M)   (F & A)




                           DIR.              GM          GM
                          (M&HS)             (VIG)       (M&SP)
           GM

           DGM

           AGM

          SR.MGR.
           MGR.
           MGR.

          DY.MGR.

           ASST.
           MGR.

          JR.MGR.


                                                            29
FLOWCHART REPRESENTATION OF M & SP DEPARTMENT :




                                             GM


         DGM               DGM           DGM                 DGM              MARKET
                                                                              DEVELOP
                                                                               MENT
                                                                              OUTSTATI
  Secondary      CC                                                              ON
                            M & SP
  products        &                                                           OFFICER
               Fertiliz
                                     Plate        BBM     Export
                 ers                                                   RSM, MM,
                                     &
                                     Slabs                            WRM, Pig. Iron


     Exe.1     Exe.1      Exe.1      Exe.1        Exe.1    Exe.1            Exe.1
     Exe.2     Exe.2      Exe.2      Exe.2        Exe.2                     Exe.2
     Exe.3     Exe.3      Exe.3




                                                                   Page 30 of 71
AWARDS & ACCOLADES



Bhilai Steel Plant has excelled in all walks of life, be it technology, quality,
environment or socio-cultural, some of the prestigious awards bugged by BSP
are as follows:
   Prime-Minister Trophy for best Integrated Steel Plant in India - Won Seven
    times science its inception in the year 1992-93.

   National Energy conservation Award in the integrated steel sector won for
    1994, 1996, 1998 & 1999.

   IIM National Quality Award winners in ferrous category during 1995-96,
    1997-98 and 1999-2000.

   BIS Rajiv Gandhi National Quality Award won twice in recent years.

   100 Golden Peacock National Quality Award won thrice in recent years.

   INSSAN award for employee suggestions six times in last seven years.

   SAIL paryawaran Awards for all the six times (this award was given from
    1992-93 till 1997-98), for best environmentally managed Integrated Steel
    Plant. Several Paryawaran Awards have also been won by captive mines
    and SMS-I of BSP.

   Indo-German Green Tech. Environment Excellent Award for the year
    1999-2000.

   Apart from the above award individuals group awards have been won
    time to time by BSP employees at National level in the field of Quality
    Circles, Management, Metallurgy, Sports & Cultural Activities, etc.




                                                                   Page 31 of 71
    CHEPTER - 3
PRODUCT PROFILE




                  32
PRODUCT PROFILE


Bhilai offers a rich and varied product mix to the domestic and international
market by different ways. They are divided into two categories, which is


PRIME PRODUCTS: These are the products which are intentionally produces
                              Sale and to meet the requirement of                the
customers.
For eg. Blooms, Billets, Channels, Angles, round Steel bars, Wire rod, Rail, Plate
etc.




PRODUTS OF BHILAI STEEL PLANT
Production of last year:
PRODUCT-MIX                                                   TONNES/ANNUM
Semis                                                               5,53,000
Rail & Heavy Structural                                                    7,50,000
Merchant Products                                                          5,00,000
(Angles, Channels, Round & TMT bars)
Wire Rods (TMT, Plain & Ribbed)                                            4,00,000
Plates (up to 3600 mm wide)                                                9,50,000
Total Saleable steel                                                   31,53,000




                                                                                 33
SECONDARY PRODUCTS: These are the defected or rejected material
                                                 Due to the improper mixing of
chemical
Components or due to some lack in meeting customer requirement. Scrap
generated inside Bhilai Steel Plant is also termed as Secondary Products.
For eg. - Rejected slab, iron scrap, steel scrap, defective heavy blooms,
defective billet cutting, rails cutting, and slag.




SECONDARY PRODUCTS
( AN INTRODUCTION)
Secondary products section started functioning after the commencing of Bhilai
Steel Plant. The secondary product section of the marketing department is solely
responsible for the selling of secondary products and by-products of BSP.
       All the defective or rejected items of this department except the rejected
defective plates, sells scrap. The defective plates are sold by CMO (Central
Marketing Organization) since December 2001.




WHAT ARE SECONDARY PRODUCTS ?
In the cause of manufacturing process, in every stage of production, always there
will be certain Percentage of products which do not confirm to the standard
quality, size and specification. Such products are termed as ‘Secondary
Products’. Moreover, while shaping the prime products, both end and sides are
cut. These cutting are also categorized as ‘Secondary Product’ in Bhilai Steel
Plant as they are re-relloable.
Following items are falls under the category of Secondary Products.:
       Defective heavy blooms
       Defective Billets cuttings
       Rejected Slabs
       Plate Mill side shearing


                                                                              34
        Defective Plates
        Rails Cuttings
        Rod Cuttings

 UTILIZATION OF SECONDARY PRODUCTS:

The secondary products can be utilized in two ways:
1. By re-rolling of secondary products.
2. By selling secondary products


PLANNING FOR SALE OF SECONDARY PRODUCTS :


1 Marketing recovery department (MRD) works out the question of different type’s
   of scrap available for on monthly basis. This is determined by ascertaining the
   local 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. Mode of sale, terms and condition for sale, location and
   commercial aspects are finalized by marketing department.
3. The pricing committee as approved by Managing Director fixes the price of
   each type of scrap (Finance Department, Purchase department, R & D
   department, Market development department and Production department are
   the member of the pricing committee).
4. Marketing department obtain MD’s approval on price fixed by pricing committee




                                                                                  35
NECESSITY OF SELLING THE “SECONDARY PRODUCTS” :


           The net sales realization from all the secondary products, by- products
and co- products of BSP is around Rs. 600 Cr. Which is quite more then many of
the big industries. Out of this the steel scraps arising itself bring about Rs. 150-200
crores of money every year. Re-production of main product from these secondary
products requires remolding it again for the required composition of the material as
per the desired specification.
                                                                          By selling it
to the different mills/traders/processors the plant earn about Rs. 4000 per tones of
direct product then by reproducing it to the main product. Through the
traders/processors/re-rollers, using these arising as a raw material for different
finished products are making huge profit, the plant is also not losing anything.
Profit is the aim of every business, and when the reutilization of these products for
the finished products proves to be costlier, the management plans to sell it to the
local market.




                                                                                    36
MARKETING OF SECONDARY PRODUCTS ;


1. The initial face of BSP due to the limited product of steel it is also observe that
   secondary products where dominated and there fore the specific marketing
   activities towards sales of secondary products was absent in fact it was
   uneconomical to have marketing activities during that period.
2. Due to new technologies its capacity has increased significance in late 90’s.
3. Due to change in economic scenario of India and companies policies towards
   earning profits has led to implement marketing policies for secondary products.
4. The marketing strategies adapted by the organization were giving rise to
   increase in competition between public sector unit & private sector companies.
   Due to this end users were having options to choose from following strategies
   has been adopted by the plant for marketing:
           1. COMMITED DELIVERY.
           2. COMPETITIVE PRICE.
           3. QUICK COMPLAINT SETTLEMENT.
           4. CULTURE OF CUSTOMER SERVICE.
    It may be mentioned here that the company’s profit consist of 10% turnover of
   secondary products for the last 2 years.


 SALES & DISTRIBUTION OF SECONDARY PRODUCTS :


1. SELLING OF SECONDARY PRODUCTS:
         This involves a direct marketing process. The management of BSP in
consultation with the official of the marketing and strategic planning department
work as group for the sale of these items. There are two methods of selling these
re-rolling defective materials.
          (a)    By auction sale.
          (b)    By marketing department (fixed price)




                                                                                   37
(a) AUCTION SALE:-
        In this method the defective material from all mills is arranged in heaps of
100-150 tones to be sold by auction. Generally, auction sale take please once in a
month. Representative from all the re-rolling mills turn up during auction and they
bid for the available material. The raw material need of these mills is being met by
the plant and the availability of the re-rollable have increased the re-rolling mills to
develop very fast. The plant extended all type of facility and assistance to these
small scale units which in turn give scope for more employment. Then the material
is lifted on the term and conditions as mentioned in the tenders.


(b) FIXED PRICE SALE:
        The re-rollable material is also sold through marketing department. The
percentage of material to be sold by auction or by marketing department depends
upon the management decision. There are different re-rollable materials coming
from different mills that can be sold. The pricing of these materials is carried out by
the pricing committee depending upon:
          1. The price offered by the customers during auction sale.
          2. The quantity to be sold.
          3. The approval of the managing director.
The customer approaches the department makes the payment in advance and lifts
the material as and when it is made available to them.


RICING POLICY OF SECONDARY PRODUCTS :


        The policy adopted by the marketing department for pricing of material is
largely guided by the price offered by the bidder during the auction. The various
factors taken into consideration while pricing the re-rollable items can be
enumerated as follows:
           1. Prices offered in the auction sale.
           2. Quantity of the material to be lifted by the buyers.
           3. Managing Directors approval.



                                                                                     38
MAJOR CONSUMER OF SECONDARY PRODUCTS :


FEW CONSUMERS ARE :
1. RAYMOND CEMENT
2. GLOBAL TRADING COMPANY, HIRAPUR RAIPUR (CG)
3. D. P. BANSAL COMMERCIAL CO. LTD. , BHILAI (CG)
4. PEEKAY INDUSTRIES, GAZIABAD
5. COATS OF INDIA LTD. NOIDA
6. CHATTISGARH STEEL PRODUCT , URLA IND. EST. RAIPUR. (CG)
7. BALAJI STEELS, URLA , RAIPUR (CG)
8. LIGHT INDUSTRIAL AREA, BHILAI (CG)
9. TATIBANDH, RAIPUR (CG)
10. URLA INDUSTRIAL AREA, RAIPUR (CG)
11. KUMHARI (CG)
12. INDUSTRIAL AREA, RAWAN BHATA, BHILAI (CG)
13. SIMPLEX CASTINGS , BHILAI (CG




                                                             39
                 MARKETING PERFORMANCE OF
                   SECONDARY PRODUCTS



                        2005-06

    ITEMS                QUANTITIES          VALUE
 IRON SCRAP                84570 T          52.57 crs.
STEEL SCRAP                98000 T          173.13 crs.
DEF. & CUTTING             79865 T          250.57 crs.




                       2006-07

    ITEMS                ANTITQUIES          VALUE
 IRON SCRAP                76197 T          43.93 crs.
STEEL SCRAP                70525 T          133.76 crs.
DEF. & CUTTING            105634 T          194.93 crs.



                       2007-08


    ITEMS                ANTITQUIES          VALUE
 IRON SCRAP              32048.6 T          26.91 crs.
STEEL SCRAPE             226750.4 T         548.04 crs.
DEF. & CUTTING           178680.3 T         346.65 crs




                                                          40
      CHEPTER - 4
OBJECTIVES AND SCOPE




                       41
OBJECTIVES OF STUDY :


In Bhilai Steel Plant there are various section of marketing department. Since I
have choose “Marketing Strategies for the secondary products at BSP”, my
main objectives are :
1.    Market study of secondary products is BSP
2.    To know what is secondary products, why it is necessary to sell the
      secondary products.
3.    To know the pricing of secondary products.
4.    Ensuring timely dispatch of material products, scrap etc. to the potential
      customers.
5.    To know the use of secondary product.
6.    To know the others terms and conditions for marketing of secondary
      products.



SCOPE OF THE STUDY :

      As discussed in above chapter related to steel industry in India, it is
showing the increase in steel production every year as compared to previous
year and hence it created interest for me to study the marketing & sales activities
related to secondary products. Secondary products are nothing but scrap or
defected material. In this cut throat competition organization should give
importance to marketing in sales activities of secondary products, which
alternatively add on to the profits of the organization, this study is mainly
concentrating on identifying the area of importance and cost saving related to
marketing of secondary products.


Limitation of Study :
1.    The study deals with only BSP point of view.
2.    As the major customer of BSP products are not an individual person.
      It was very difficult to get formal feedback from them.



                                                                                42
     CHEPTER - 5

RESEARCH METHODOLOGY




                   43
                       RESEARCH METHODOLOGY

        Research can be defined as systematized efforts to gain knowledge. A
research is carried out by different methodology, which has their own pros and
cons.
        In this research work, I have collected information i.e. Primary and
secondary data. As far as secondary data collection, I had used sources like
company data (Past and existing), internet, company publications and some of
the old project summaries with company.
        As far as primary data is concerned, I had done a structured questionnaire
survey with users of secondary product i.e. small scale industries. The primary
information collected from 50 different users.


SAMPLING UNIT
In the survey Bhilai and Raipur was chosen as the sampling unit.


SAMPLING SIZE
The sample size was 50 customers of different re-rolling mils & traders.


SAMPLING TECHNIQUE
The sampling technique used by the research for the study was convenience
sampling. The sampling was taken from different places in chhattisgarh like Bhilai
Raipur.




                                                                               44
45
     CHEPTER - 6

DATA INTERPRETATION




                      46
DATA ANALYSIS

The primary data was collected by contacting users directly and requesting them
about the information related to the questionnaire designed. Following are the
major questions asked and data was sought from them.


1. When was your company established?



       (a)        1960-1970        0%
       (b)        1971-1980        10%
       (c)        1981-1990        30%
       (d)        After 1990       60%




                               (a), 0%   (b), 10%
                                                                (a)
                                                                (b)
                                                    (c ), 30%   (c )
       (d), 60%                                                 (d)




Inference:-

      This graph indicated that most of the users of secondary products of steel
industry have been established during 90’s.




                                                                             47
2. What is your annual requirement of secondary product?




         (a)    0-2500 Tones               10%
         (b)    2500-5000 Tones            30%
         (c)    5000-10000 Tones           40%
         (d)    Above 10000 Tones          20%




   40%
   35%

   30%

   25%
                                    40%
   20%                                                     Series1
                        30%
   15%
                                            20%
   10%
               10%
    5%

    0%
               (a)      (b)         (c )    (d)




Inference:-
 This graph shows the annual requirement of secondary product is evenly
distributed between 2500T to 10000T. The majority of the customers i.e. 40% of
surveyed companies buy secondary products between 5000 to 10000T




                                                                           48
3. How many years your company was purchasing from BSP?



          (a)     Less than 2 years            0%
          (b)     2-5 years                    10%
          (c)     5-10 years                   60%
          (d)     More than 10 years           30%




                                 (a), 0%   (b), 10%
                (d), 30%
                                                               (a)
                                                               (b)
                                                               (c )
                                                               (d)
                                                (c ), 60%




Inference:-

      This graph indicate the since how long they are purchasing secondary
products from BSP. Out of all surveyed companies, 60% companies purchasing
the products from BSP since last 5-10 years.




                                                                        49
4. Is your company purchasing secondary product from others companies, (other
than BSP)?



                  Yes   40%
                  No    60%




                                                  Yes, 40%
                                                                   Yes
                                                                   No
              No, 60%




Inference:-

      This graph shows the companies also purchase sometimes secondary
products from other companies. It is being interpreted from above data that 60%
companies are purchasing products only from BSP




                                                                            50
5. What is your opinion about the registration procedure of the company for
getting secondary product?




                   Easy          100%
                   Hard          0%




                          100%
        100%
         90%
         80%
         70%
         60%
         50%                                              Series1
         40%
         30%
         20%
         10%                               0%
          0%
                    Easy                Hard




Inference:-

      This graph indicates that 100% customers are satisfied about the order
registration procedure.




                                                                              51
 6. What mode your companies prefer to purchase material from     BSP
 whether it is fixed price / tender?




                 (a)          Fixed Price                   20%
                 (b)          Tender                        80%




                                                 (a), 20%


                                                                        (a)
                                                                        (b)


                         (b), 80%




Inference:-
        This graph shows that 80% companies prefer purchasing products by
tender method.




                                                                              52
 7. Have you faced any difficulties doing business with BSP?



                  YES           0%
                  NO            100%




          100%
           90%
           80%
           70%
           60%
                                            100%               Series1
           50%
           40%
           30%
           20%
           10%
                         0%
            0%
                       Yes                 No




Inference:-
        This graph shows that no company has faced any difficulties for
conducting the business with BSP.




                                                                         53
 8. Are you satisfied with BSP’s sale policy of secondary products?



                      (a)   No                 0%
                      (b)   Yes                95%
                      (c)   No comments        5%




                                     95%
          100%
              90%
              80%
              70%
              60%
              50%                                                     Series1
              40%
              30%
              20%
                                                      5%
              10%      0%
               0%
                     (a)           (b)             (c )




Inference:-
         This graph indicates the any major draw back in BSP sales policy. 95%
  Customers are satisfied with BSP sales policy.




                                                                                 54
 9. What is your opinion about distribution policy of secondary product?




               (a)         Very good         0%
               (b)         Good              95%
               (c)         Fair              5%
               (d)         No opinion        0%




          100%
           90%
           80%
           70%
           60%
           50%                   95%                                Series1
           40%
           30%
           20%
           10%
                      0%                      5%          0%
            0%
                     (a)         (b)         (c )         (d)




 Inference:-
         This graph shows about distribution policy of BSP. 95% customers are
satisfied specifically with distribution policy of BSP.




                                                                              55
 10. Whether the products are made available every time whenever the payment
 is made in advance?



               (a)         YES            100%
               (b)         NO             0%
               (c)         Can’t Say      0%




              100%
               90%
               80%
               70%
               60%
                          100%
               50%                                                     Series1
               40%
               30%
               20%
               10%
                                         0%            0%
                0%
                          (a)           (b)          (c )




Inference:-
        This graph indicate that customer of BSP is served on priority if they pay
in advance.




                                                                                 56
11. What is your opinion about pricing policy of BSP?


                    (a)     Good                   20%
                    (b)     Satisfactory           70%
                    (c)     Dissatisfactory        10%
                    (d)     No opinion             0%




                             (c ), 10%   (d), 0%    (a), 20%
                                                                       (a)
                                                                       (b)
                                                                       (c )
                                                                       (d)
                             (b), 70%




Inference:-
      This graph indicates mixed reaction about pricing policy of BSP. 70%
customers are satisfied with pricing policy of BSP. And also 10% customers are
not happy with the pricing policy of BSP.




                                                                              57
12. Kindly give your priorities to the following additional facilities you feel should
be considered by BSP



      (a)      Credit facility               25%         (c)   Infrastructural facility           5%
      (b)      Discount                      70%         (d)   Others                             0%




                                                   (d), 0%
                                  (c ), 5%                     (a), 25%
                                                                                      (a)
                                                                                      (b)
                                                                                      (c )
                                                                                      (d)
                           (b), 70%




Inference:-
       This graph shows that most of the respondent i.e. 70% wish to have more
discounts.




                                                                                             58
13. Is there any delay in getting the material?




                  (a)     Sometimes         20%
                  (b)     Always            0%
                  (c)     Never             80%




                                                    80%
       80%
       70%
       60%
       50%
       40%                                                    Series1
       30%          20%
       20%
       10%                         0%
        0%
                  (a)            (b)              (c )




Inference:-
       This graph shows the customer’s opinion about delay for getting the
Products. 80% customers replied that they have never faced any delay in getting
the products.




                                                                            59
14. Which kind of material you purchase from BSP?


                 (a)    Iron scrap              20%
                 (b)    Steel scrap             50%
                 (c)    Gram lated Slag         10%
                 (d)    Melting scrap           10%
                 (e)    Others                  10%




                        50%
         50%
         45%
         40%
         35%
         30%
         25%                                                   Series1
                20%
         20%
         15%
                                 10%      10%       10%
         10%
          5%
          0%
               (a)      (b)     (c )      (d)       (e)




Inference:-This graph tells that 50% of the customers are regularly purchasing
steel scrap.




                                                                           60
                         CHEPTER - 7

                   CONCLUSION




                            CONCLUSION :



   This project contains the study of Marketing & sales analysis of secondary
products. Secondary products are the scrap or defected material along with
the finished products.



                                                                          61
           The study has received very interesting facts above the secondary
   products. Therefore from study & Analysis ( through questionnaire) I have
   concluded on following points.
 While study the history of SAIL (Sail authority of India limited). BSP is a part
   of SAIL. I also study history about BSP. It was established on 2 nd Feb.1955
   with capacity of 1 MT. Now its production is 4MT per year.In my study I had a
   some objects, like that marketing of secondary product, it’s pricing policy &
   use of this product and also why necessary for selling it.
 Majority of the companies buy the steel scrab from BSP and also they buy
   Iron scrap, melting scrap etc.
 From the primary data collection we can conclude that most of the company
   who are using secondary products of steel company have been established
   during 90’s and their average consumption lies between 5000T to 10000T.
 Most of the surveyed companies are dealing with BSP since last 10 years and
   most of them buyers of secondary products from BSP only.
 The customer are satisfy with order registration process and companies
   policies in BSP, they also shown magurity preference of buying goods
   through tender process.
 Customer are also satisfy with payment & distribution policies of BSP. They
   have also felt that there are very few instances from delay.




                                                                               62
 CHEPTER - 8
LIMITATIONS




               63
 LIMITATION OF THE STUDY :


 Some data were confidential therefore were not available for analysis.


 TIME FACTOR:-          Time factor was the chief limitation of study. Limited
   time
                        was allotted for the study.


 COST FACTOR: Another major constraint was cost. The study involved
                         Substantial cost and was beyond the affordability of
theme


 INFORMATION FROM RESPONDENTS:


        Some biased response came from respondent and Finding stated in
the report was based on the answers from the questionnaire. So the effect of
misinterpretation and wrong answers may affect the outcome of the project.


 The research has focused his attention mainly in and around Bhilai.
 As the major customer of BSP products are not individual persons. It was
   very     difficult to formal feedback from them.




                                                                             64
                                   CHEPTER – 9

                              RECOMMENDATIONS :

1. The pricing as well as the distribution policies should be framed by keeping in
   mind the requirements of the complete ranges of manufacture and only the bulk
   consumer. This will encourage the new re- rolling mills to approach BSP for the
   materials.


2. Ensure delivery of the material for which the payment is received in advance.


3. Alternatively, if the material is not available, the BSP authorities should not
   accept the payment so that the buyer can approach some other sources for
   producing the material and should not unnecessarily wait for the material, which
   is not available.


4. Many a times BSP is not in a position to supply the full quantity of material for
   which the payment has been received. In such cases, the refund of the excess
   amount should be thought a stream lined process so that it does not tack long
   time.


5. Prices list made available to the various re-rollers every month by BSP.


6. The material being sold by marketing department should accompany test
   certificate mentioning only the range of carbon content in it for which the
   customers are ready to pay reasonably higher prices.


7. Generation of secondary products must be tried to minimize which will help the
   BSP in optimum use of raw materials.




                                                                                   65
 CHEPTER - 10

APPENDICES




                66
                                         QUESTIONNAIRE


                  A comprehensive study of marketing strategy for
                             secondary products at
                                Bhilai Steel Plant

Name ----------------------------------------------------
Address --------------------------------------------------
        ---------------------------------------------------
Contact No. ---------------------------------------------
E-mail----------------------------------------------------


1. When was your company established?

    (a) 1960-1970                           (b) 1971-1980

    (c) 1981-1990                          (d) After 1990


2. What is the annual requirement of raw materials?

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

3. How many years you were purchasing from BSP?

     (a) Less than 2 years                       (b) 2 to 5 years

     (c) 5 to 10 years                          (d) More than 10 years


4. Is your company purchasing raw materials from others companies, other than
BSP?

     (a)Yes                        (b) No


    If yes please specify----------------------------------------------------
                         ----------------------------------------------------




                                                                                   67
5. What is your opinion about the registration procedure of the company for
getting secondary product?


   (a) Easy                      (b) Hard



6. What mode your companies prefer to purchase material from BSP whether it is
fixed price/ tender?

------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------

7. Have you faced any difficulties doing business with BSP?

------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------


8. Are you satisfied with BSP’s sale policy of secondary products?

------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------


9. What is your opinion about distribution policy of secondary products?

  (a) Very good                       (b) Good

  (c) Fair                            (d) No opinion



10. Whether the material is available every time the payment is made in
advance?

  (a) Yes                            (b) No

  (c) Can’t say




                                                                                                         68
 11. What is your opinion about pricing policy of BSP?


  (a)    Good                      (b)   Satisfactory

  (c)   Dissatisfactory            (d)   No opinion



12. Kindly give your priorities to the following additional facilities you feel should
be considered by BSP


    (a) Credit facility                     (b) Discount

    (c) Infrastructural facility              (d) others



13. Is there any delay in getting the material?

    (a) Sometimes                           (b) Always

    (c) Never




14. What kind of material you purchase from B.S.P.?

   (a) Iron scraps                             (d) Melting scrap

   (b) Steel scrap                             (e) Others

   (c) Gram lated slag




                                                                                   69
 CHEPTER - 11

BIBLIOGRAPHY




                70
                      BIBLIOGRAPHY


SAIL ANNUAL JOURNAL          2006-07
ANNUAL REPORT: BSP           2006-07
WORKING NOTES                M & SP DEPARTMENT
WEB SITE OF SAIL             www.sail.co.in
WEB SITE OF BSP              www.bsp.com
OTHER SITES: -               www.google.com
                              www.wikipedia.com




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