rakesh roushan mba doc
TRANSCRIPT
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INDUSTRIAL TRAINING PROJECT REPORT ON
“ONLINE SALES ORDER MONITORING
MODULE FOR SECONDARY PRODUCT “
IN
BOKARO STEEL PLANT
BOKARO STEEL CITY, JHARKHAND.
IN THE PARTIAL FULFILLMENT OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
EAST POINT COLLEGE OF HIGHER EDUCATION
BANGALORE (KARNATAKA)
SUBMITTED BY: PROJECT GUIDE:
NAME –RAKESH ROUHSAN PROF. ROOPA DEVI G
TRAINEES NO.-5914825
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CERTIFICATE
This is to certify that the project entitled “ONLINE SALES ORDER MONITORING
MODULE FOR SECONDARY PRODUCT” at BOKARO STEEL PLANT (SAIL)
has been carried out and submitted by RAKESH ROUHSAN from 11th August to 6th
September, 2014, under my supervision in partial fulfillment of his course MBA
at EAST POINT COLLEGE OF HIGHER EDUCATION, BANGALORE
under BANGALORE UNIVERSITY.
I am satisfied with his sincere performance and study conducted by him in BOKARO
STEEL PLANT (SAIL). The project is hereby approved as a bonafide work carried out
and presented in a manner satisfactory to its acceptance area to theMaster of business
administration for which it has been submitted.
I recommend submitting the project report. I wish him all success in life.
This is also certified that the project work is original and has not been submitted to any
other place.
PROJECT GUIDE
Mr. A.D.EKKA
JR. MANAGER-MARKETING
BOKARO STEEL PLANT (SAIL),
BOKARO STEEL CITY.
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DECLARATION
I hereby declare that the research project titled –
“ONLINE SALES ORDER MONITORING MODULE FOR SECONDARY
PRODUCT”
”This report is submitted in the partial fulfillment of the requirement for the degree of
Masters of Business Administration. This report is a bonafide research work carried out by
me. No part of this report has been submitted for the award or any other
diploma/degree/fellowship or any other similar title or prize. This report is based upon my
personal opinion. Hence, it cannot be referred to for official or legal purposes.
RAKESH ROUSHAN
M.B.A
TRAINEES NO- 5914825
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ACKNOWLEDGEMENT
At the very outset of engaging myself into the project report. I would like to express my
sincere gratitude to all those who extended their not only to convey their best wishes but
also to give me support on this hi-undertone path. This Project Report on my 4 weeks
practical training in “Bokaro Steel Plant” Bokaro (SAIL) in area of Bokaro is a part of my
course curriculum of my MBA.
This project could not have been completed without timely suggestion advice and co-
operation of a lot of persons. I am extremely thankful and pay my gratitude to Mr.
A.D.Ekka (Jr. Manager-Marketing) for his valuable guidance and support on completion
of this project in itspresently.
I am greatly obliged to Mr. Rajesh Singh (Junior Manager,HRD) who accommodated me
for training in this esteemed organization.
I am highly indebted to Mr. Manish Sahay (Marketing Developing Officer, Bihar) who
provided me an opportunity to work and also guided me at every stage on my project. His
proper direction and consult inspiration proved to be an asset for this project.
A special appreciative “Thank you” in accorded to all staff of “Bokaro Steel Plant
(SAIL),Bokaro for their positive support.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as economically.
I hope this report will be special interested to the marketing student, who are on look for
such real life situations beyond their classroom studies.
RAKESH ROUSHAN
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CONTENTS
EXECUTIVE SUMMARY--------------------------------------------------------------------6
OBJECTIVE OF THE STUDY--------------------------------------------------------------7
COMPANY PROFILE------------------------------------------------------------------------8
COKE OVEN &BYPRODUCT PLANT---------------------------------------------18
PRODUCT & THEIR MARKETING STRATEGY----------------------------------26
STRUCTURE OF THE PROCESS OF SALES & MARKETING-----------------29
LIST OF MAJOR CUSTOMERS OF BY PRODUCT------------------------------33
FORM DEVELOPMENT PROCEDURE & REQUIREMENT--------------------36
COMPLETE STRUCTURE OF THE SALES MODULE ---------------------------42
E-AUCTION-------------------------------------------------------------------------------42
FIXED PRICE SALE---------------------------------------------------------------------58
TENDER------------------------------------------------------------------------------------61
MODULE WISE DESCRIPTION---------------------------------------------------------65
DATA ANALYSIS & INTERPRETATION---------------------------------------------71
SWOT ANALYSIS----------------------------------------------------------------------------79
FINDINGS--------------------------------------------------------------------------------------84
SUGGESTIONS-------------------------------------------------------------------------------86
FUTURE SCOPE------------------------------------------------------------------------------88
CONCLUSION--------------------------------------------------------------------------------90
BIBLIOGRAPHY-----------------------------------------------------------------------------92
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EXECUTIVE SUMMARY
It is difficult to remember which other policy more harmed our economy than this License
– permit RAJ because of which growth took the rear seat. But thisbeared many successful
PSUs in which SAIL claims the top knot.Things have not remained the same for SAIL.
Post liberalization period have experienced the venturing of this sector my many business
barons, which have led to mushrooming of steel players throughout the country. In these
days SAIL changed its mission from ”Labor intensive” to “Profit maximizations”.
“Compete or perish” is the new strategy which is top in priority.
Marketing department of SAIL is not the newest genesis and always attempted to reach
where no corporate have ventured so far. It has also one of widest coverage throughout
country. so, it has remained a challenge for marketing department to keep a perfect blend
of mass & class. The Project was conducted in Marketing Department and Sales
Coordinationdepartment. I was to find out the marketing strategy adopted by BSL to
sell its secondary & by product
Secondary &By products are directly marketed by BSL, while when we talk about primary
products it is the responsibility of CMO. Various mode of selling like E-auction, fixed price
sell, tendering process, inter plant transfer are used. To know about the E-auctions of
marketing departments. How they use this technique and 60% marketing and selling is
done through auction and rest will be taken through fixed price selling and tenders.
During my training I had to find out mode of sale of secondary products of BSL. Primary
products are sold by CMO, Delhi. I passed through various stages of problems and
difficulties to accomplish the task of project work but it was a privilege for me to take this
opportunity a challenging work to study and observe "marketing of Secondary products in
B.S.L"
The basic objective behind the study carried out by me is to study the major contribution
of Secondary product to total sale, which is pre-determining for the success of the
company. By selling the Secondary product in local market company is earning profits. It
is also creating a employment in small scale industries and developing the economy
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OBJECTIVE OF THE STUDY
If any ambition is not combined with prudence and clear understanding, it can lead to
terrible consequences in simpler words we can say that if we don’t have a clear vision of
objectives,then whole work goes in vain.
The objectives of my projects are as follows:-
1. To know what are the secondary & by products in BSL
2. To analysis the current market condition of by products and determine the strategies for
efficient marketing of by products in this highly competitive market so as to earn maximum
revenue.
3. To know the internal environment of marketing department of company and its relation
with its customers.
4. Marketing strategy & pricing of marketing department to sell these products.
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COMPANY PROFILE
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It
is a fully integrated iron and steel maker, producing both basic and special steels for
domestic construction, engineering, power, railway, automotive and defence industries and
for sale in export markets. SAIL is also among the five Maharatna’s of the country's Central
Public Sector Enterprises.
Background and history
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 industrialisation of the country. The steel sector was to propel the economic
growth. Hindustan Steel Private Limited was set up on January 19, 1954.
Expanding Horizon (1959-1973)
Hindustan Steel (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
plants were also transferred to Hindustan Steel. The registered office was originally in New
Delhi. It moved to Calcutta in July 1956 and ultimately to Ranchi in December 1959.
The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of
December 1961. The 1 MT 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 .158 MT (1959-60) to 1.6 MT. A new steel company, Bokaro Steel Limited, was
incorporated in January 1964 to construct and operate the steel plant at Bokaro.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 1968, 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 Rourkela and 1.6 MT at Durgapur, the
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total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 &
subsequently to 4 MT 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
crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro,
Durgapur, 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.
Besides, 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.
About SAIL
SAIL manufactures and sells a broad range of steel products, including hot and cold rolled
sheets and coils, galvanised sheets, electrical sheets, structural, railway products, plates,
bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five
integrated plants and three special steel plants, located principally in the eastern and central
regions of India and situated close to domestic sources of raw materials, including the
Company's iron ore, limestone and dolomite mines. The company has the distinction of
being India’s second largest producer of iron ore and of having the country’s second largest
mines network. This gives SAIL a competitive edge in terms of captive availability of iron
ore, limestone, and dolomite which are inputs for steel making.
SAIL's wide ranges 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) that transacts business through its network of 37
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Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42
Consignment Agents and 27 Customer Contact Offices. CMO’s domestic marketing
effort is supplemented by its ever widening network of rural dealers who meet the
demands of the smallest customers in the remotest corners of the country. With the total
number of dealers over 2000, SAIL's wide marketing spread ensures availability of
quality steel in virtually all the districts of the country.
SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited
unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five
integrated steel plants.
With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS)
at Ranchi which helps to produce quality steel and develop new technologies for the steel
industry. Besides, SAIL has its own in-house Centre for Engineering and Technology
(CET), Management Training Institute (MTI) and Safety Organization at Ranchi. Our
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 our plants and major units are ISO Certified.
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MAJOR UNITS :
Integrated Steel Plants
1. Bhilai Steel Plant
Ten - times winner of Prime Minister's Trophy for best Integrated Steel Plant in the
country, Bhilai Steel Plant (BSP) is India's sole producer of rails and heavy steel
plates and major producer of structural. The plant is the sole supplier of the
country's longest rail tracks of 260 metres. With an annual production capacity of
3.153 MT of saleable steel, the plant also specializes in other products such as wire
rods and merchant products. Since BSP is accredited with ISO 9001:2000 Quality
Management System Standard, all saleable products of Bhilai Steel Plant come
under the ISO umbrella. At Bhilai IS0:14001 has been awarded for Environment
Management System in the Plant, Township and Dalli Mines. It is the only steel
plant to get certification in all these areas. The Plant is accredited with SA: 8000
certification for social accountability and the OHSAS-18001 certification for
Occupational health and safety. These internationally recognised certifications add
value to Bhilai's products and helps create a place among the best organisations in
the steel industry. Among the long list of national awards it has won, Bhilai has
bagged the CII-ITC Sustainability award for three consecutive years.
PRODUCT-MIX TONNES/ANNUM
Semis 5,33,000
Rail & Heavy Structural 7,50,000
Merchant Products
(Angles, Channels, Round & TMT bars) 5,00,000
Wire Rods (TMT, Plain & Ribbed) 4,20,000
Plates (up to 3600 mm wide) 9,50,000
Total Saleable steel 31,53,000
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Location: Forty kms west of Raipur, the capital city of Chhattisgarh, along the
Howrah-Mumbai railway line and the Great-Eastern highway, stands Bhilai Steel
Plant (BSP).
2. Durgapur Steel Plant
Set up in the late 50's with an initial annual capacity of one million tonnes of crude
steel per year, the capacity of Durgapur Steel Plant (DSP) was later expanded to
1.6 million tonnes in the 70's. A massive modernization programme was undertaken
in the plant in early 90's, which, while bringing numerous technological
developments in the plant, enhanced the capacity of the plant to 2.088 million
tonnes of hot metal, 1.8 million tonnes crude steel and 1.586 million tonnes saleable
steel. The entire plant is covered
underISO9001:2000qualitymanagementsystem.The modernized DSP now has
state-of –the-art technology for quality steel making. The modernized units have
brought about improved productivity, substantial improvement in energy
conservation and better quality products. With the successful commissioning of the
modernized units, DSP is all set to produce 2.088 million tons of hot metal, 1.8
million tons of crude steel and 1.586 million tons of saleable steel annually.
PRODUCT-MIX TONNES/ANNUM
Merchant Products 2,80,000
Structural 2,07,000
Skelp 1,80,000
Wheels & Axles 58,000
Semis 8,61,000
Total Saleable steel 15,86,000
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Location
Situated at a distance of 158 km from Calcutta, its geographical location is defined
as 230 27' North and 880 29' East. It is situated on the banks of the Damodar river.
The Grand Trunk Road and the main Calcutta-Delhi railway line pass through
Durgapur.
Durgapur Steel Plant has always made relentless efforts to maintaining a healthy
and clean environment. The units in DSP are provided with necessary pollution
control facilities and the liquid effluents and chimney emissions from the plant are
well within norms. DSP has undertaken massive afforestation to maintain clean
environment. Some 3,266 acres of land have been covered with 14 lakh plantations.
In order to develop healthy awareness about the environment amongst the younger
generation, eco-clubs have been formed in DSP schools.
Centre for Human Resource Development- DSP has always attached maximum
importance on proper training and development of its employees. Its Centre for
Human Resource Development has all modern facilities including the state-of-the-
art Electrical and Electronics laboratory, Hydraulics and Pneumatics laboratory and
workshop for effective training and development of its employees.
Communication
The Public Relations Department publishes monthly house journals in English,
Bengali and Hindi for extensive information of company affairs to the employees.
DSP also has an in-house TV studio (DSTV) along with all modern facilities, which
telecast news and a gamut of other programs covering various aspects of plant and
township activities.
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3. ROURKELA STEEL PLANT
Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in
India, was set up with German collaboration with an installed capacity of 1 million
tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes.
The plant was modernised in the mid-1990s with a number of new units having
state-of-the-art facilities. Most of the old units were also revamped for effecting
substantial improvement in the quality of products, reducing cost and ensuring
cleaner environment.
RSP was the first plant in India to incorporate LD technology of steel making. It is
also the first steel plant in SAIL and the only one presently where 100% of slabs
are produced through the cost-effective and quality-centric continuous casting
route.
RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9 million
tonnes of crude steel and 1.67 million tonnes of saleable steel. It is SAIL’s only
plant that produce silicon steels for the power sector, high quality pipes for the oil
& gas sector and tin plates for the packaging industry. Its wide and sophisticated
product range includes various flat, tubular and coated products.
Almost all major units of the plant, including its Personnel Department and Steel
Township, are certified to ISO: 9001 standards. RSP’s Silicon Steel Mill, Sintering
Plant II, Environment Engineering Department, Plate Mill, Hot Strip Mill, ERW
and SW Pipe Plants, Special Plate Plant as well as Steel Township have been
awarded ISO:14001 certification for Environment Management.
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PRODUCT-MIX TONNES/ANNUM
Plate Mill Plates 2,99,000
HR Plates 92,500
HR Coils 3,98,000
ERW Pipes 75,000
SW Pipes 55,000
CR Sheets & Coils 4,33,000
Galvanized Sheets (GP& GC) 1,60,000
Electrolytic Tin-Plates 85,000
Silicon Steel Sheets 73,500
Total Saleable Steel 16,71,000
Location:
Rourkela Steel Plant is located in the north-western tip of Orissa and at the heart of
a rich mineral belt. Being situated on the Howrah-Mumbai rail mainline, Rourkela
is very well connected with most of the important cities of India. The nearby
airports are Ranchi (173 km), Bhubaneswar (378 km) and Kolkata (413 km).
Rourkela also has an airstrip maintained by RSP.
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4.IISCO STEEL PLANT (ISP)
The Indian Iron & Steel Company (IISCO), a SAIL subsidiary, was amalgamated
with SAIL on 16th February 2006 and renamed IISCO Steel Plant (ISP). This full-
fledged integrated steel plant is one of India’s oldest. Established as an industrial
enterprise in 1918, IISCO produced iron from an open-top blast furnace at Hirapur
(later to be called Burnpur) in West Bengal for the first time in 1922. The plant was
progressively upgraded to a capacity for production of 4.26 lakh tonnes of saleable
steel and 2.54 lakh tonnes of pig iron annually. The plant manufactures a range of
products, over some of which it holds exclusive market dominance. Iron & steel
produced by it has been acknowledged as being of the finest quality.
The plant is presently undergoing the final touches of a Rs. 16,480-crore
modernisation-cum-expansion programme to raise its saleable steel capacity to 2.5
million tonnes per year.
Location: Situated at a distance of about 200 kms from Kolkata in Burnpur on the banks
of the perennial Damodar river in West Bengal, ISP is well connected by both South
Eastern and Eastern Railways and National Highway 2. Its proximity to Kolkata and Haldia
ports is an additional strength.
History
IISCO held the proud distinction of being the owner of India’s “oldest unit
producing pig iron by modern methods” at Kulti on the banks of river Barakar near
Hirapur. An open-top blast furnace set up in 1870 by a company known as Bengal
Iron Works Co. (BIW) founded by James Erskine pioneered production of iron in
India in 1875. The same unit at Kulti also pioneered steel production in India
through small open-hearth furnaces in 1904-06. BIW was absorbed by IISCO in
1936 and steel making started as a regular measure in 1939. Another company
named Steel Corporation of Bengal (SCOB), incorporated in 1937, was also
amalgamated with IISCO in 1952. SCOB’s Napuria Works and IISCO’s Hirapur
Works in unison came to be known as the Burnpur Works of IISCO. The Burnpur
Works underwent two overlapping expansion in 1953 and 1955, increasing its
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production capacity to 1 million tonnes of ingot steel and 0.8 million tonnes of
saleable steel.
As the flagship business enterprise of Martin Burn House, IISCO had acquired iron
ore mines at Gua and Chiria in what is today’s Jharkhand state and collieries in
Chasnalla and Jitpur (also in Jharkhand) and Ramnagore (in Bengal). These captive
sources of high quality raw materials gave IISCO a major competitive edge and
enabled it to establish a prestigious reputation in domestic and foreign markets. It
also became the first Indian blue chip company to have its shares traded at the
London Stock Exchange. The Burnpur Works of IISCO reached its pinnacle of
performance during the 1960s and produced more than a million tonnes of ingot
steel.
Despite growth plans, however, a combination of factors drove the company into
stagnation and decline, resulting in lack of investment for technology up gradation
to meet emerging market competition. IISCO was nationalized in 1972 and became
a wholly-owned subsidiary of SAIL in 1979.
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5. BOKARO STEEL PLANT:
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape
in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited
company on 29th January 1964, and was later merged with SAIL, first as a subsidiary and
then as a unit, through the Public Sector Iron & Steel Companies (Restructuring
&Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968.
The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum
indigenous content in terms of equipment, material and know-how. Its first Blast Furnace
started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on
26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT
stage have already been commissioned and the 90s' modernization has further upgraded
this to 4.5 MTofliquid steel. The new features added in modernization of SMS-II include
two twin-strand slab casters along with a Steel Refining Unit. The Steel Refining Unit was
inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April,
1998. The modernization of the Hot Strip Mill saw addition of new features like high
pressure de-scalars, work roll bending, hydraulic automatic gauge control, quick work roll
change, laminar cooling etc. New walking beam reheating furnaces are replacing the less
efficient pusher type furnaces.
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape
in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited
company on 29th January 1964, and was later merged with SAIL, first as a subsidiary and
then as a unit, through the Public Sector Iron & Steel Companies (Restructuring &
Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968.The
Plant is hailed as the country’s first Swadeshi steel plant, built with maximum indigenous
content in terms of equipment, material and know-how. Its first Blast Furnace started on
2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on 26th February
1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage have
already been commissioned and the 90s' modernization has further upgraded this to 4.5MT
ofliquidsteel.The new features added in modernization of SMS-II include two twin-strand
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slab casters along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on
19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. The
modernization of the Hot Strip Mill saw addition of new features like high pressure de-
scalars, work roll bending, hydraulic automatic gauge control, quick work roll change,
laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient
pusher type furnaces. A new hydraulic coiler has been added and two of the existing ones
revamped. With the completion of Hot Strip Mill modernization, Bokaro is producing top
quality hot rolled products that are well accepted in the global market.Bokaro is designed
to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold
Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanized Plain and
Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material base for a variety
of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel
and drum producing industries.
People - The moving force
Bokaro Steel values its people as the fulcrum of all organizational activities. The saga of
Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of
Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the
liberalised era, modernising its facilities and innovating their way to the top of the heap.
Directions
Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in
India. The modernization plans are aimed at increasing the liquid steel production capacity,
coupled with fresh rolling and coating facilities. The new facilities will be capable of
producing the most premium grades required by the most discerning
customersegments.Brand Bokaro will signify assured quality and delivery, offering value
for money to the customers.
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COKE-OVEN AND BY PRODUCT PLANT
Coke oven and by product plant is considered as the initial phase of production of the
desired product and mainly deals with the listed activities….
1) PREPARATION OF COKE FROM COAL.
2) USING THIIS COKE AS A FUEL FOR THE PRODUCTION OF PRIMARY
AND BY-PRODUCTS.
Coal is selected mainly on the basis of its Ash percentage. i.e. lesser the ash % of coal,
greater the chances of using that coal for production process.
TYPES OF PRODUCTS
1) PRIMARY PRODUCTS: -
These are the actual products, which are originally produced by at bokaro steel
plant. These includes …..
HOT ROLLED (HR) – COIL.
HOT ROLLED (HR) – SHEET.
HOT ROLLED (HR) – PLATE.
GALVANISED PLANE (GP) - SHEET.
GALVANISED PLANE (GP) – COIL.
2) BY-PRODUCTS : -
These are those products that are not originally produced by bokaro steel plant, but
are the outcomes while producing the prime products..these includes………
Benzene, Toluene.
Anthracene.
Naphthalene.
Still Bottom Oil.
Hot pressed Naphthalene.
Ammonium Sulphate.
Ferrous Sulphate.
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3) SECONDORY PRODUCTS:- these are the defectives or rejected materials due
to improper mixing of chemical components or fail to meet the optimum
requirements. Scraps generated inside the plant are also termed as secondary
products.
INDUSTRY SCENARIO
Though the steel market has started picking up recently, the last four or five years have
been listing times for steel industry in view of the market. The competition has been
roughest in the flat products. Bokaro has been able to meet this challenge through
continuous improvement in quality, cost and delivery of its product and retained its market
share.
ITS MARKET AND COMPETITOTRS
1) TISCO
2) RINL
3) ISPAT
4)
OTHER COMPETITORS
Essar Steel
Jindal Steel
Usha Ispat
Lanco Industries limited
Saeas Goa.
Nippon Denro Ispat.
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MARKETING DEPARTMENT
MARKETING OBJECTIVE Marketing has been defined as “the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, good and service, to
create exchanges that satisfy individual and organization objective”
The Marketing department decides as to how secondary & by product is
disposed through sale. The process requires an understanding of buyer and
seller behavior within the context of overall market environment. Added emphasis
is given to the important area of global markets with their own special challenge
and opportunities
FUNCTION OF MARKETING DEPARTMENT 1. To take stock of item a regular basis
2. To take disposal as per procedure
3. To review and fix the price
4. To settle refund claims
5. To create awareness in the market about various product
6. Creating long term growth
7. Communicating value
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CHAPTER - 3
CURRENT MARKETING ENVIRONMENT
In the Steel Plant, while producing steel, a number of strategically important and
commercially profitable bye-products and secondary products are produced. The defective
core products (which cannot be delivered against an order) are also churned out in large
quantity. Some of them are recycled and rests are made available in the open market to
earn revenue.
These products are highly in demand in metallurgical industries, cement industries,
chemical industries etc. Except core products all the other secondary and bye-products are
marketed by the marketing department of Bokaro Steel Plant. It has been recognized that
proper disposal of waste products can generate huge revenue for the company and hence
this area has found the increased interest of the policy makers of the company.
Marketing department is an important wing of the Material Management Division of the
Bokaro Steel Plant. It takes the responsibility of planning and controlling of various
marketing functions viz. pricing, distribution, sales and product promotion, market search
and research and executing the sales orders of various products.
The selling is done in three ways:
(a) Fixed Price Selling
(b) Tender
(c) E-auction
MARKETING DEPARTMENT OF BSL IS HAVING FOLLOWING SECTIONS:
1. Secondary product
2. Coal chemicals
3. Idle Assets
4. Pricing
5. Waste Product
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OBJECTIVE:
To maximize the revenue from sale of secondary products, bye-products, idle or used
material and other waste products and to keep the pool of customers satisfied.
FUNCTIONS:
To take stock of various items on regular basis
To take disposal action as per procedure
To gather market information; feedback from customers
To review and fix the price
To ensure smooth execution of order
To settle refund claims
To create awareness in the market about the various products
ADVERTISING POLICY:-
Companies in the present scenario of globalization and liberalization needs to do more than
making good product or competitively pricing its product-they need to inform consumers
about product and carefully position product in consumer’s mind.
Advertisement is the best form of non-personal communication. It is good way to inform
and persuade. Advertising serves the dual purpose of informing the product benefit and
positioning the product in consumer’smind. Bokaro Steel Plant, products (i.e. –products)
is used mainly of industrial use. Its product is the raw material for most of its consumers.
The customer base of BSL Plant is knowledgeable and knows about the products and its
benefit so on special effort is needed inform them about the product.
In BSL Plant, the main form of advertising is Tender Notice and notice other form of
advertising is also used but rarely. Information is provided to various persons through
advertising, which are directly or indirectly related with company. There are:-
o Customers.
o Users.
o General Public or neutral persons.
o People who are related with the economic progress of the company.
25
Public relation Department of Bokaro Steel Plant looks after the advertising policy of
Bokaro Steel Plant. All decisions related with advertising are taken by both Marketing and
Public Relation Department jointly supported by sales co-ordination.
All advertisement of SAIL mainly contains factual date related to the products and its
comparative advantage over other similar products sometimes it also contains information
related to sales of a particular kind of product.
Main media used for advertising these products are newspapers and business magazines.
News papers and business magazines are selected based on the following criterions:-
1. Kind of product to be advertised and its used.
2. Are where the product is in demand.
3. Circulation of a particular newspaper and business magazines in the area.
4. Cost of advertising.
MARKET SEGMENTATION AND TARGET MARKET
MARKETING STRATEGIES OF BSL
Steel being an industrial commodity it is very necessary to maintain customer relationship
for profitability and smooth running of company.
Customer Satisfaction
BSL adopts following practices for customer satisfaction.
a. Procedure / process adapted to access current / future expectation of customers.
b. It induces market research visiting customer premises attending to customer complaints.
c. CMO has Market Management Group where specialists monitor changing demand
pattern and development in each Market segment is carried on.
d. It has posted market development officers at various locations that are its eyes and ears
for monitoring current and future expectation of its customer.
e. The Business-planning department is exclusively meant to study customer's changing
demand scenario and assess current and future expectation.
26
f. To understand customer needs seminars and workshops are also organized by BSL.
Building Customer Relationship
BSL has adopted the philosophy of recognizing segment of the market and identifying key
customer in segment and giving them preferential treatment. CMO sales executives have
been trained to use direct selling as tool for building long lasting relationship with the
customers. Easy access to customers to seek assistance makes proposals send comments
and compliments.
MARKET DEVELOPMENT
BSL has valued customers group in identifying their specific needs Specific to that group
thus segmenting and developing market segment for our products. Major product
modifications are done as per their specific needs of the Market segment thereby creating
product differentiation packages.
PRODUCTION ACCORDING TO MARKET NEEDS
BSL is always in touch in market and try to produce according to market needs. BSL tries
to produce quality products / new products which fulfill the need of market
27
PRODUCT & THEIR MARKRTING STRATEGY
MARKETING OF SECONDARY PRODUCTS
During the seventies and sixties when the plant was one million-tones and2.5 million-
tonnes capacity respectively, arising of secondary products was limited and such arising
was recycled for re-melting. Therefore there was no scope for marketing in other words it
was not economical. The plant capacity has been increased from 2.5 million tons to 4
million tones in the late sixties. New technology has been adopted while increasing the
capacity of the plant where by the use of arising for re-melting drastically reduced. This
has given more impact to the making of secondary product.
In the nineties we have seen lot of changes in the economic scenario of the country. The
concept of more employment in Public Sector Enterprises has changed to more profits.
There by the plant also has geared up its strategy towards this end. One of the strategies
adopted by the plant for increasing the profit is marketing of secondary products.
In the recent years a number of foundries and re-rolling Mills come into existence
throughout the country. These small scales Sector need the "Secondary products" as input
raw material for their production. The company has engaged in educating them the use of
secondary products for different kinds of end products for consumption of general public.
The plant extends all types of facilities and assistance to these small-scale units. This, in
turn gives scope for more employment opportunities.
The plant for marketing has adopted following strategy:
1. Committed delivery.
2. Competitive price
3. Quick complaint settlement.
4. Culture of customer service.
It is necessary to mentioned here that the companies' profit consists of 10% turnover of
secondary products for the Last two years.
28
SALES PROCEDURE
PLANNING FOR SALE OF SECONDARY PRODUCT
1. Marketing Recovery Department (MRD) works out the quantum of different types of
scrap available for sale on monthly basis. This is determined by ascertaining the total scrap
stock at the beginning of the month. Scrap arising during consumption. The remaining
quantity is considered for sale. A, monthly report on availability of scrap is prepared by
MRD and sent to marketing department.
2. Marketing Department finalizes the plan for actual quantity of scrap to be sold in
consultation with MRD. Marketing department finalizes mode of sale, terms and conditions
for sale, locations and commercial aspects.
3. The pricing committee consist of Managing Directors fixes the price of each type of
scrap.
4. Marketing department obtains MD's approval on price fixed by pricing committee.
PROCEDURE APPLIED FOR SALE OF SECONDARY
PRODUCTS
1. After obtaining approval of quantity and price for sale, Marketing department
scrutinizes the demand from various parties, examine the Priorities and issue "offer letters"
to respective parties. The terms and conditions for sale are also enclosed with the "offers
Letter"
2. About one third of the quantity of material to be sold during the year is offered to the
actual users, subject to registration of demand.
3. For the balance quantity to be sold at prices fixed by pricing committee, preference is
given to actual users over traders. If there are no actual users, the material may be offered
to traders giving preference to registered traders over others.
29
4. First preference is given to the actual users for allotment of scrap against particular
category of users. Scrap processing units are given second preference for such allotments.
5. The amount received from the party towards advance payment and security deposit is
forwarded to finance department by marketing department after recording the details in the
register.
6. Parties are allowed to visit the respective location disposals site, and inspect the scrap
offered for sale.
7. Marketing department prepares sale order for the parties who have accepted the offer.
Sale orders are issued party wise and category wise i.e. individual sale order covers such
categories like C I scrap, steel scrap, re-rollable, slag and waste products. The sale order is
issued on the basis of each financial year and the security deposit of each sale order is
carried over to the next year.
8. Based on the deposit made by the party, finance department intimates to marketing
department about release of requisite scrap for supply. Marketing department prepares
release orders, which are treated by MRD, as delivery order.
30
THE STRUCTURE OF THE PROCESS OF SALES AND
MARKETING
PRODUCTS
PRIMARY (SPECIFIC PARAMETER) SECONDARY/BY-PRODUCTS
CMO (KOLKATA) UNITS- BSL, BSS, RSP, DSP etc
BSL MARKETING
METHOD OF SELLING
E-AUCTION SALE TENDER FIXED PRICE SALE
BSL MARKETING
(MAIN SECTION)
STEEL CHEMICAL &
BYE-PRODUCTS
SLAGS & WASTE
PRODUCTS
IDLE ASSETS PRICING
31
DEMAND REGISTRATION OF BSL
Marketing department of BSL sales homogeneous steel scrap at fixed price. For this
purpose the procedure for registration of demand and offers is as below:
1. Preference for sale of material given to local parties and those, which are actual
customer. Material is not sold for trade.
2. Sale of material made to re-rolling mills and scrap processing units and the lots of sale
between them maintained at 67:33.
3. Based on the above consideration “offer letter” issued to the party offering a quantity,
which has been lifted by them during the last preceding year or allocated by the state
industries, Department. In the offer letter party is advised to complete commercial
formalities e.g. submission of “Die Registration Certificate “etc.
“Sales and Distribution of Secondary & By-Product”
SELLING OF SECONDARY PRODUCT
This involves a direct marketing process. The management of BSL in consultation with the
official of the market development and customer service department work as group for the
sale of these items.
MODE OF SALE
1.E-Auction Sale.
2.Fixed Price Sale.
3. Tender.
4. Interplant Transfer.
5. Transfer to PSU.
32
DISTRIBUTION CHANNEL
Bokaro Steel Plant deals with its customer directly. There are liaising persons in the
marketing department who always remain in contact with the customers and extract
information about the current market demand on the basis of their interaction with them.
The products are directly marketed from Bokaro Steel Plant to the customers there are no
other intermediaries .This is the business to Business marketing (B2B).
MANUFACTURER TO INDUSTRIAL CONSUMER
Packing and modes of delivery of the by-product is mainly by three ways.These are as
follows:-
1. Railway tanks (wagon)
2. Roadways (tanker)
3. Piggy back (rail and truck)
In the above surveys shows roadways do that 70% transportation of By-product reason
consumer are local. They are mainly traders they are buying and selling the By-product to
the market.
Railway is also important to the transportation of By-product but it’s more costly because
less number of the buyer involvement in the outside of the country. The distribution
channel the Bokaro Steel Plant has for its chemical product is designed keeping in the mind
the hazardous nature and difficulty in storing these products. so this distribution channel
cannot be changed but for Ammonium Sulphate the distribution channel can be more
flexible by:-
a. Appointment of authorized agents :- It will help in increasing the sale and awareness
about the product in the regions other than Bihar,Orissa,Jharkhand and west Bengal. Such
arrangement will minimize the problem that the customers are facing .
33
b. Appointment of authorized dealers;- appointment of the authorized dealers in Uttar
Pradesh from where a few enquiries have come for the product. Such enquiries show that
there is a presence of the potential customer base in that area and need to be tapped.
Buying and using vehicles off its own can change the mode of the transportation for the
chemical products. This will decrease customer’s problem of arranging for the vehicles
from the transporters and the handling and security problem of the plant. The customer will
be changed the transportation cost.
The pricing policy adopted by the plant is the best policy followed by this plant but
this policy can be made more compatible including a few big customers in the
pricing committee which will bring the prices of the product competitive to the
market trend and thus will decrease the chances of marketing strategy failure and
surplus inventory.
As the product quality is not taken care of some method should be divided to take
care of product quality without affecting the quality of its prime product.
the internal environment of the marketing department should be more customer
friendly and customer oriented.
though computerization of the marketing department has been done but to get full
advantage of computerization, sales co-ordination ,scrap and salvage department
and by-product plant should be brought into account so that party wise and
dispatches wise a order can be fulfill.
In future sales and excise section of the finance and account department also be brought
under same roof :-
The Market segment should be more clearly defined on the basis of geographical
location, nature buying unit, loyalty status of buying unit ,customer demand etc.
Market Research for knowing about the potential customer as well getting the
feedback from the customer should be frequently done. Feedback can be easily
available through questionnaire and ask them to fill and back to organization and
suggestion.
34
My studies have been done from a management student’s point of view .the above
mentioned recommendation are in any based upon informal and formal feedback obtained
from the manager’s .The Management of SAIL(BOKARO STEEL OLANT) honestly
concerns for the future growth of the organization at the time of increased competitors
,should take care on the recommendation given above. The macro and micro planning is
definitely varied but their enforcement will ensure SAIL in regaining and building its glory
on top.
35
LIST OF MAJOR CUSTOMERS OF THE BY-PRODUCT
A. N.G.BENZENE
1.ShriBhole Udyog Pvt. Ltd.
2 .Durgapur Chemical Pvt. Ltd.
3. India Petrochemical Pvt.Ltd.
4. Bharat Chemicals Pvt.Ltd.
5. KCI PolychemPvt.Ltd.
6. Shri Ram Industries Pvt.Ltd.
7. Shikhar Chemicals Pvt.Ltd.
8.Shiva chemical Pvt.Ltd.
B. N.G.TOLUENE
1. ShriBhole Udyog Pvt. Ltd.
2..Shri Ram Industries Pvt.Ltd.
3.Shiva chemical Pvt.Ltd.
4.Shri Bhole Industries
5. GOVT.OPIUM & ALKALOID
C.LIGHT SOLENT NAPTHA
1.Shri Chemical Pvt. Ltd.
2. ShriBhole Enterprises
3.Shri Bhole Udyog pvt. Ltd.
36
4.Indian chemical Industries Pvt. Ltd.
D. STILL BOTTOM OIL
1. Jharkhand tar product pvt.ltd.
2.Omega hydro carbon pvt.ltd.
3. Jalan Carbon & chemical pvt.ltd.
4. bajaj Chemical Pvt. ltd.
5.Shiva Chemical Pvt. Ltd.
6.utkal hydro Carbon pvt.ltd.
7.Mangolia Hydro pvt.Ltd.
E. EXTRA HARD PTCH
1. Bharat Refractory Pvt. ltd.
F.HARD MEDIUM PITCH
1. Himandri chemical Pvt. ltd.
Panasonic hydro carbons Pvt. ltd.
jalan Carbon Pvt . Ltd.
Parliebal Pvt. ltd.
G.HOT PRESSED NAPTHALENE
Selezine and Intermediaries Pvt. Ltd.
Eastern naptha Chemicals Pvt.Ltd.
BAFS Media Pvt. Ltd.
Preeti Enterprises
37
H. ANTHRACENE OIL
Bajaj alkine Pvt. Ltd.
Kedia carbon Pvt.ltd.
HTP Pvt. Ltd.
Jalan Carbon Pvt. ltd.
I. AMMONIUM SULPHATE
ShriAmbika Sales Corporation
M.K.chemical and Fertilizer
38
CHAPTER – 4
FORM DEVELOPMENT PROCEDURE AND REQUIREMENT
ORACLE MENU
As commercial application developers our primary task is to design data entry forms that
look as close to the printed sheets of the paper that the data entry operators use in the current
manual system of the data collection.
Oracle form designer give us a powerful graphical user interface to designnsuchforms.All
objects properties can be selected by simply clicking on an appropriateicon.Oracle form
designer a graphical tool lets quicly create forms .this tool allows application developer
todesign form that captures,validate and store data keyed in by the data entry operators
with the very minimum of codes. Form designer,Oracle GUI based form creation tool
comprises of the following components:-
Form Designer
Form Generator
Run Forms
FORM DESIGNER- It is what the programmer needs tocreate a form. It allows the user
use pre created objects ,design the layout of the data entry screen and codes blocks that
may be required for data manipulation and validation.
FORM GENERATOR:-It is required to compile the file created in the form of the designer
and create a binary file which can be executed by the runforms.
RUNFORMS:-It is used to run compiled code created by the Form generator .To run an
Oracle form that has passed quality control test and is fully functional only the runform
module is required. Hence, at the time of the software deployment only the runform module
needs to be installed on the machine used by the data entry operators.To Program and Test
debug on an Oracle form a complete installation of the forms tool is required.
39
FORMS IN SECONDARY MARKETING MODULE
1. mktg.fmb (This is profile form and calls the working menu)
2.mktg_menu.fmb.The various menu that are called by this mktg.menu.fmb are aas
follows:-
draft_menu.fmb:-When party wins auction money is paid by the party in the form
of the draft. The various columns of the draft are collected from the table
DRAFTBL
so.fmb(mb.rdf): As form provides frontend to the user this form is used to fill the
details of the Sales Order .The Columns of SOTBL are selected and the form is
designed.
money_tms.fmb: This form is used to transfer money to the SO. When various
draft details are filled by the party in the draft_menu.fmb then this money is
transferred to the So through this form.
do_form.fmb(dorpt.rdf): After the party pays the relevant amount for the product
the delivery order is to be prepared, so that the party can go to t the CISF pass
section with that delivery order. This is the form which enables this.(This form is
used to make DO)
mp.rdf: after the SO form has been prepard the next work done is making the report
for it.(This report is for SO printing)
forfeit_menu.fmb: If the party does not fulfill all the requirement for the delivery
of the product then there are different types of the forfeir and this form calls the
different forfeit forms.(This form calls different forfeit forms)
aipc_crupd.fmb(/sales/salesqry/aipc_crupd.fmb): When a product is readyto be
delivered to the party during this period various kinds of the creation and updation
may takes place. For these updating this form is prepared.It may happen that the
price of the product s increases /or the quantity is to be delivered after some days
from the due date. This type of updating are made possible through this form.(This
form is used for party creation/updating)
40
pa_ac.fmb(/sales/salesqry/pa_ac.fmb):-The party whom product is to be sold ,it is
required to keeps details of the account of the party. Party’s account need to be
updated if some changes occur. This creation and updating take place through this
form.(This form is used for party account Creation /Updating)
pricelog_fmb(/sales/poonam/pricelog.fmb); A form is required for the entries of
the price details.This form logs on pricing.
(This Form Calls forms for pricing)
itmcd.fmd:Every item in the plant has its code .This code is generated to make
uniqueness to the item .For creating item code this form is called.(This form is used
for item code Creation)
so_ext.fmb (This Form is for S.O.Validity and Quality Expression)
refund.fmb(This Form calls Different Forms Related to Refund)
idasrep.rdf(/ales/sales report/idasrep.fmb) this is item wise Report for IDLE
ASSET.)
DRAFT MENU
emd.fmb:-Earnest money deposit is made by theparty ,a form is built which
contains all the necessary entries for the draft.(This is draft Entry Form For the
EMD)
appl.fmb:-A Form is made for keeping account of Application money.
(this is draft Entry Form For APPLICATION MONEY.
draft_all.fmb:- A draft entry form is made for the advance and other account.9This
is Draft Entry Form is made for advance and any other a/c heads as well a SO
Generation )
adv.fmb:Some money is paid by the partly in advance this is taken account by this
form.(This is Draft Entry for advance and any other a/c heads).
billadj.fmb:-A form is made to adjust bill for SO generation.(This is SO Generation
For Bil Adjustment)
ipt.fmb:- This is SO Generation Form or IPT.
41
draft.rdf; A report is generated for entering for entering draft details of the particular
date. Various details are filled in this form.(This report for Entered Drafts of a given
Date)
drupdt.fmb: Sometimes some updation is required during draft
submission.Theseupdation is made possible through this form .(This is a Form for
Draft Correction)
draft data transfer to caash (script for Draft Data Transfer to Cash Section).
koldraft.fmb: Some drafts are from Kolkata based Centers .These draft entries other
form is made .This is made possible through this draft.(This is Draft Entry Screen
for Kolkata Draft)
FORFIET MENU
forfeitemd.fmb(fore.rdf) if partly fails to pay the earnest money deposit then
forfeiture of this amount takes place through form and calls the report fore.rdf.(This
is Form for forfeiture of EMD and calls the Report fore.rdf)
foreitappl.fmb(fora.rdf) If the party does not pay the application money in the
correct amount and date .Then forfeiture of this money takes place through form
.This calls the report forardf(This is the form for forfeiture of APPLICATION
MONEY and calls the report forardf)
foreitsd.fmb(forso.rdf); Security deposit is forfeiture and for this it is caleed(This
is form for forfeiture of SD and calls the report forso.rdf)
forfeitslab.fmb(forso.rdf):-A form is created so that the security deposit made by
the party for the slab can be forfeitured. This calls the report forso.rdf) This is form
for Forffeiture of SLAB SD and calls the reports forso.rdf)
(1)MARKETING MODULE;-For secondary product sale at first an auction is conducted.
A list of various secondary product to be sold is prepared party at first gets himself
registered for the auction Party has to pay the amount which is non-refundable. Then Party
bids for the same and if wins buys the aforesaid product .BSL sends payment for
reevaluation.
42
(2) CISF Module: - after the marketing department have completed their job it’s the turn
CISF .For collecting product party has to enter plant and for that pass is required .At first
party goes to Pass Section with a copy of Delivery Order. This pass is required to get
permission to take vehicle inside the plant.
(3)DA Module:-Loading unit prepares the dispatches advice depending upon the delivery
order and sales order and is given to the Party. Party goes to the invoice cell inside the plant
and gets the invoice prepared. after checking all the payment details and onvoices party
goes out of the Plant.
(4)Refund module :-Sales a/c department takes care of the amount party claims .Marketing
department initiates the refund process after taking claim form from the Party. after
checking all the Payment details and invoices made party settles claim.
(5)Forefeit Module
(6)Report generation Module:- This module generates various reports.some of these
reports are;-1)Movement Plan Reports
2)sales order report
3) Delivery order report
43
ANALYSIS
PRICING POLICY
Price is one of the elements of marketing mix that generates revenue. Companies do this
in a variety of ways. The basic thing to be kept in mind while deciding the price is the
product for which the price is to be fixed.As we know coal, chemicals are not the core
products of Bokaro Steel Plant and hence, the pricing strategies of the secondary and bye-
products are a very difficult part. The core products of the four steel plants are sold through
Central Marketing Organization which has its head office at Kolkata. Every item produced
by SAIL i.e. pig iron, semi finished and finished steel are distribute by CMO. The exports
are also handled by CMO. Despite CMO, there is marketing department in every unit of
SAIL which co-ordinates the marketing process of the products which are not under
CMO.Hence, the marketing department of Bokaro Steel Plant is responsible for the sale of
all secondary and bye-products. There are few processes which the department follows to
come to the final price of the product:-
1) The basic thing which any firm needs to identify is the objective of pricing. There
can be objectives like earning profit, maximizing market share, market penetration
pricing, market skimming prices etc.
2) The next thing which the firm does in estimating costs. The cost earned by the
company during the production process.
3) The third point to be considered is the demand.
4) Dispatches of last three months.
5) Order Balance.
6) Stock in hand.
1. PIG IRON: - The price of pig iron includes direct dispatches, base price, excise
duty, railway freights, and engineering expert’s assistance. It also includes
stockyard expenses before final price of pig iron is fixed.
2. PRICE OF STEEL MATERIAL: - It too considers the above procedure before
the price of the steel material is fixed and lastly the BICP recommends the price for
the product to be approved by the government.
44
CHAPTER – 5
1. E-AUCTION
COMPLETE STRUCTURE OF THE PROGRAM
DATA FLOW DIAGRAM OF E-AUCTION
Advertisement of dates/type
of materials on SAIL
website/Newspaper
Posting of lot details to be
auctioned on SAIL / Metal
Junction website
Inspection of lots by
customers
Auction conducted on
metaljunction.com
Report of Auction by
metaljunction.com
Reserve Price Opening
Committee meeting
Recommendations
Approval for Sale
Issue of Offer Letter
45
PROCEDURE OF E-AUCTION
Advertisement/posting of dates and types of materials to be auctioned in SAIL website and
various news papers (Local & National) every 15th to 20th of the month for the next month,
1. Posting of details of lots to be auctioned one week prior to the date of auction, on
the website of SAIL and metal Junction.com
2. Inspection of lots to be auctioned by customers.
3. Auction is held on www. Metal Junction.com
4. Report of auction conducted is give by Metal Junction.com
5. Meeting of reserve price opening committee and their recommendation.
6. Approval for sale of lots recommended by RP opening committee.
7. Issue of offer to the customers, based on approval of chief Executives.
8. In this method the defective materials from all the mills is arranged in heaps of 100-
150 tones to be sold by auction. Generally auction sale takes place ones 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 this mill is being made by the plant
and the availability of the re-reliable has increased the re-rolling mill to develop
very fast. The plant extends all types of facilities and assistance to these small scale
units, which to turn give scope for more employment, and then the material is lifted
on the terms and conditions as mentioned in the tenders.
46
GENERAL RULES AND REGULATION GOVERNING CONDUCT OF ONLINE
AUCTIONS ON THE “SERVICE PROVIDER” PLATFORM
INTRODUCTION:
This Online Forward Auction is being conducted for Bokaro Steel plant, Steel Authority
of India Ltd (hereinafter referred as the “Client’’) on the Auction Platform of
metaljunction.com, (hereinafter referred as “Service Provider”) .The General Rules
and Regulations provided herein govern the conduct of on line Forward Auctions arranged
by “Service provider” on its Auction Platform. These rules cover the roles and
responsibilities of the parties in the online Forward Auctions on the Auction Platform.
Acceptance in-Toto to these General Rules and Regulations governing conduct of online
auctions, and Terms and Conditions for Sale of Materials by tender or online auction, of
Bokaro Steel Plant is a pre – requisite for securing participation in the online auctions. key
terms pertaining to the online Forward Auctions are provided in the “Annexure-D”.
Prospective bidders are advised to read through the same.
ROLE OF “SERVICE PROVIDER”
1. “Service Provider’ is the agency (operator) primarily providing the service of the
Forward auction to the “client”.
2. Finalization of the auction items in consultation with the client. The same to the Bokaro
steel Plant Client.
3. Defining of bidding rules for each auction in consultation with the client.
Enhancing bidder awareness of and comfort with the auction mechanism and bidding
rules
4. Enlarging the customer base by introducing new bidders.
5. Input of the Auction items and defining the bidding rule in the auction engine.
Providing access to the approved bidders to participate in the Auction.
6.Summarizing the Auction proceedings and communicate the outcome to the Client.
47
7. The responsibility of fulfillment of the contract rests between the bidders and the client
and the responsibility of the “Service Provider” shall be restricted to the extent of the
services provided by them.
ROLE OF BIDDER
The role of the bidder is outlined below:
The bidder would participate in the auction with the aim of bidding to secure the auctioned
item in the auction. The bidder would be provided access to the Auction through a “User
ID” protected by a “Password”. The bidder needs to ensure that the “User ID” and
“Password” is not revealed to unauthorized persons. Bidders are also requested to change
the password allocated to them by the “Service Provider” to keep their confidentiality.
However it would be bidder’s sole responsibility to ensure the security and privacy of the
same and he/they would not hold the “Client” / “Service Provider” responsible in any
manner whatsoever for any misuse of these user IDs and/or Password. Access to the auction
mechanism shall be provided to all the approved bidders subsequent to obtaining their
written consent to the General Rules & Regulations and the Letter of Interest. Payment of
Earnest Money Deposit (EMD) as decided by the client
Minimum3 days before the of the Forward auction will be one of the necessary conditions
for participating in the auction. Bidders hereby confirm that they shall commit to lift the
items/Lots (being bid for) at the price entered by them in the auction engine AND at the
terms and conditions specified herein by the Client. All Prices entered shall be legally
binding on the bidders. Bidders are strongly advised to exercise due diligence while placing
bids. Failure to honor the bids placed during online bidding shall render the bidders liable
for penal action as mentioned at point no 12 of the notice for Forward Auction i.e.
Forfeiture of the EMD and debarring them for future participation for 6 months.In the
event of winning an allotment in the auction mechanism, the bidder shall commit to fulfill
outlined obligations under the contract.
The bidders shall bid on the terms specified by the client & place their bid in the auction
engine in the manner specified by “Service Provider”. The bidders shall not stipulate any
conditions on their own unless the terms of the client (the client’s terms & conditions)
48
expressly permit such conditions being stipulated by the bidder. Bids entered with
conditions attached shall be considered Conditional bids & “service provider” retains the
right of rejecting these bids even without intimating the client.
BIDDING RULES
The Bidding Rules refer to the information and terms defined specifically for a particular
auction. The purpose of the Bidding rules is to provide approved bidders with the
information and terms specific to the auction in which they are bidding. This would
include:
1. Definition of the unit bidding.
2. Start Time and duration of the auction.
3. Any extension of the duration of the auction in the event of bids
Being received towards the end of the pre-specified duration.
4. Start Bid Price.
5. Specified Unit for Bidding.
6. Price Increments and any reduction in the price increment in the auction in
the event of inactivity.
7. Other attributes (informational/non-negotiable in nature).
While it shall be the endeavor of “Service Provider” to specify these rules at the earliest
for each online auction, the “Service Provider” shall retain the right to delay the
announcement of these biddings rules or modify rules specified earlier at the time of the
online bid. These details would be available to the bidders on the Auction Engine at the
time of bidding. Participation in the auction process presumes complete awareness and
understanding of the bidding rules.
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CONDUCT OF THE AUCTION
Only those bidders who have been approved by the “Client” and handed over stamped and
manually signed “General Rules and Regulations governing conduct of online auction
along with Letter of Interest, required EMD amount and other necessary documents to the
“Service Provider” at least 3 days prior to the start of online auction will be given “Login
ID” and “PASSWORD” to enable them view and participate in online auction. However a
time of 10 working days shall be provided for in-between the date of the Online Auction
Notice and the date of Online Forward auction so as to give sufficient time to the eligible
bidders to be ready in all respect for taking part in the Online Forward auction.
The Auction shall be conducted on pre-specified date. The Key Terms pertaining to the
conduct of Auction such as “START TIME”, “DURATION”, “END TIME” AND
“AUTO EXTENSION FACILITY” Shall be specified separately for each Auction.
“Service provider” retains the right to cancel or reschedule the auction, with the approval
of the Competent Authority of the Client, on any of the following reasons:
1. The number of confirmed bidders is deemed insufficient to conduct the auction.
2. Some of the confirmed bidders are unable to access the module due to infrastructure
problems such as sustained power failure or telecommunication breakdown.
3. There are no bids, which are equal to or below Start Bid Price.
4. Any other reason which in the opinion of “Service Provider” / “Client” requires such
action to be initiated.
5. The duration of auction may also vary from the pre-specified period of time either on
account of termination of the auction by “Service Provider” on the advice of the Client
Or
1. In case of situations where it is felt that continuance of the auction proceedings is
prejudicial to the smooth conduct and / or the integrity of the auction process.
Or
2. Due to Auto Extension during the Auction, duration may increase from specified
period.In the event of any problems being faced in the smooth conduct of the auction,
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“Service Provider” with the approval of the Competent Authority of the Client, shall
have the right to undertake one or more of the following steps:
1. Cancellation/ premature termination of the auction with/ without a
subsequent rerun of the auction on a mutually decided date.
2. Cancellation of a bid.
3. Locking / deactivate a bidder’s account (suspension of operations in the
account), etc.
In case of failure of net connection, bidder will give his best price to the “Service Provider”.
“Service Provider” will bid on behalf of the bidder with the minimum increment until the
bid price reaches the best price offered by the bidder, by proxy bidding mechanism. The
best price communicated by the bidder will have to be authenticated by written
confirmation or fax to the “Service Provider” and will be kept confidential between the
“Service Provider” and the bidder. Bidder will be bound by the price offered.
LIABILITY OF “SERVICE PROVIDER”
“Service Provider” shall not be liable to the client/ bidders participating in the auction or
any other person(s) for:
1. Any breach of contract by any of the parties in the fulfillment of the underlying
contract.
2. Any delays in initiating the online auction or postponement / cancellation of the online
auction proceedings due to any problem with the hardware / software / infrastructure
facilities or any other shortcomings.
While, reasonable care and diligence will be taken by “Service Provider” in discharge of
its responsibilities such as design of the online bid, communication of bid details and rules,
guidance to client/ bidders in accessing the Auction Engine and placing bids, etc. the
bidders shall specifically indemnify “Service Provider” from all liabilities for any
shortcomings on these aspects. It is clearly understood that these activities are undertaken
by “Service Provider” to assist the bidders in participation but the ultimate responsibility
on all these counts lies totally with the bidders.
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RIGHT OF THE CLIENT
The Client reserves the right to partially or totally accept or reject any / all bids placed in
the Online Auction without assigning any reason whatsoever. The decision of the client
would be final and binding on the bidder in any such case.
CONFIDENTIALITY CLAUSE
“Service Provider” undertakes to handle any sensitive information provided by the client
or confirmed bidders for the auctions conducted with utmost trust and confidentiality.
JURISDICTION
Any disputes relating to the online auction module shall be subject to the sole jurisdiction
of Court of Law having jurisdictions over the Plant from where the materials are being
sold. On line Auction conducted at Bokaro Steel Plant shall exclusive jurisdiction of
Bokaro Civil Court.
TERMS AND CONDITIONS FOR THE SALE OF MATERIALS BY ON LINE
AUCTION / TENDER FROM BOKARO STEEL PLANT
MANAGEMENT: The Management will mean the Managing Director, Steel Authority
of India Limited, Bokaro Steel Plant or any officer authorized by him to act on his behalf.
PURCHASER: The Purchaser will mean the successful bidder whose bid has been
accepted under the terms of the online auction/tender process.
TERMS AND CONDITIONS
Bids are accepted on the assumption that the bidders are aware for what they are bidding
for that the principle of “Caveat Emptor” shall apply. The sale is on the basis of “AS IS
WHERE IS”. The materials will be lifted from the site of storage with all faults and errors
in description or otherwise, if any. Quantity, Quality, Size measurement, marks and
number stated in the tender documents are approximate and no warranty or guarantee
should be implied. The bidders/Tenderers are advised to inspect the materials before
offering their prices.
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Inspection of Stores/Site: Interested parties will be permitted to see the materials from 9.30
Hrs to 4.30 Hrs daily on working days. Necessary entry passes may be obtained from the
Receptionist/ CISF.
TENDER FORMS
The tenders will sign on each page of the tender documents from Annexure B to E, terms
and conditions of sales, schedule etc. in token of acceptance thereof. However, the
signature on the tender schedule along with the terms and conditions shall be deemed to be
acceptance of all terms and conditions of sale & schedule and other documents forming
parts of the online auction / tender.
Earnest Money: Each tender/ online auction will be accompanied by an Earnest Money
Deposit in the form of Demand Drafts/ Pay Order/ Banker’s Cheques in the name of “Steel
Authority of India Limited, Bokaro Steel Plant”, payable at any scheduled nationalized
Bank at Bokaro Steel City or Chas Branch. The amount of Earnest Money will be
stipulated in the invitation to on line auction/tender. Cheque/Cash will not be accepted
towards earnest money deposit, it is not possible to adjust earnest money from any sum of
money due from the SAIL Bokaro Steel Plant, on account of pending bill security deposit
or earnest money paid towards another on line auction.
Submission of Online auction/ Tender documents: Documents will be submitted by the
date and time stipulated in the Invitation to on line auction/Tender to the appropriate
authority. The documents shall enclose the Demand Draft/ BC/PO towards the Earnest
Money. The intending buyers may submit their documents either personally or through
Dak / courier to the office of METAL JUNCTION.COM as per Annexure F
Any document / application for tender/ online auction received before the publication of
the advertisement or after due date and time fixed as per point no 2 of the notice shall not
be considered. Successful Bidders will have to pay Security Deposit (SD) @ 3% of the
total quantity of material as per bid rate in the form of DD / PO / BC drawn on any
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nationalized bank in favour of SAIL/Bokaro Steel Plant payable at Bokaro Steel City or
Chas within 5 days from the date of issue of Offer Letter for issue of sale order. The
material cost along with the applicable ED and Sales Tax etc shall have to be deposited by
the buyer in the form of DD / PO / BC drawn on any nationalized bank in favour of
SAIL/Bokaro Steel Plant payable at Bokaro Steel City or Chas within 7 days from the date
of issue of Offer Letter for the issue of PIM CUM DO. No money whatsoever lying at BSL
on account of the party except Credit Note issued by BSL on account of past purchase shall
be adjusted against any cost of material and all the intending buyers have to deposit the
same a fresh. Delay in payment by the buyer may be permitted with interest @ 24% per
annum for 15 days only from the last due date of payment as per Offer letter. Delay in
payment is not permitted for security deposit. The delayed payment shall not entitle a party
for extra lifting time.
In the event of failure on the part of the bidder to pay the Security Deposit against each or
any lot within specified period, the Earnest Money Deposit (EMD) of the bidder will be
forfeited and they shall be debarred from participating in future auctions for next six
months by Metal Junction. The successful party shall have to lift the entire material falling
under the category of items for which he has participated and is the H1 bidder within the
period and from the area specified in the sale order. The lifting time allowed shall be
counted from the date of issue of sale order.
In the event of failure in lifting the material by the party within stipulated time, the party
may be allowed to lift the balance quantity to complete the tonnage/clear the site from the
purchased material. A time extension may be granted to the buyer on request and payment
of ground rent @ 5% of the Basic value of left over quantity of material for extension up
to 15 days and 10% of the Basic value of left over quantity of material for extension up to
30 days. No extension beyond one month shall be granted. Extension granted shall be
counted from the next date of delivery order validity for the purpose of ground rent.
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Validity of Offers: The Bid/quotations shall remain valid for 15 days from the date of
award of auction/opening of tender.
(a) In case the date of online auction becomes a holiday the auction will be opened on the
next working day.
(b) The Management reserves the right to accept or reject any or all the online auction/
tenders without assigning any reasons thereof at any stage.
(A)Conditional Online auction Auction/Tenders: Conditional bids will not be
considered.
(a) When the H1 price of a lot/item is approved, the purchaser shall be notified by an Offer
Letter, which will be sent on E-mail/Fax/by hand/through courier. The offer letter will
indicate full details namely the particulars of the materials, quantity, accepted rate, sale
value, sales tax, other taxes, and amount deposited towards earnest money and the date of
making payment.
(b) Security Deposit: The refund of the security deposit is subject to the satisfactory
execution of the order. The Management will be entitled to recover from the security
deposit all the money due to the Plant concerning the sale.
(c) In the event of failure on part of the bidder to make full payment within the date
specified in the Offer letter, the Management may at its option cancel the offer/ sale relating
to the lot/ items forfeiting the earnest money & security deposit without issuing any prior
notice to the tenderers/ bidders.
Payment: On receipt of the Offer letter, the purchaser will deposit the amount as per
details indicated in the Offer letter, by Demand Drafts or Pay Order or Banker’s cheque,
drawn in favor of Steel Authority of India Ltd, Bokaro Steel Plant, payable at Bokaro Steel
City or Chas. Cheques/Cash will not be accepted towards payment, however credit note
issued by BSL towards balance amount of any previous purchase shall be acceptable only
towards material cost and not against Security Deposit.
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Extension of Date of Payment:
Delay in payment of material value by the buyer may be permitted only for 15 days from
the last due date of payment as per Offer Letter with an interest @ 24% per annum. No
delay in payment will be allowed for security deposit: All taxes / excise duty under the
local, state, central or any other law shall be payable by the purchaser in addition to the
sale value, as applicable for each item at the rates prevailing on the date of delivery.For all
the purpose the date of DA in case of Road Despatch and date of RR in case of Rail
despatch will be deemed to be the date of delivery.
a)Delivery Order and delivery: - On receipt of payment from the purchaser, BSL will
issue a PIM CUM Delivery Order (PIM CUM DO) which will enable the purchaser to take
delivery of the materials from the stock holder. The Bidder/ tenderer is required to sign
the PIM CUM Delivery order (PIM CUM DO). If this is not possible and if the Bidder/
tenderer desires to take delivery through his authorized representative, he must authorize
persons by a letter of authority in the prescribed format on non-judicial stamp paper of Rs.5
duly notarised, which shall be presented to the appropriate Management. The letter of
authority shall bear the photograph and specimen signature of the authorized representative
duly attested by the Bidder/ tenderer. BSL may, in its entire discretion decline to act on
any such authority and it shall be in all case, for the purchaser to satisfy the stockholder
that the authority is genuine.
Delivery by proxy will be at the purchasers sole responsibility and no risk
and no claim shall lie against the Management on account, whatsoever, if
delivery is effected to wrong person. The option of delivery of any item by
rail or Road shall lie with BSL Management. In case of Rail Delivery, rail
underload, siding charge, demurrage etc. shall have to be paid by the buyer
along with cost of material.
b)Actual Delivery/Lifting:The buyer /his authorised representative shall lift the material
from the lot/area allotted on the basis of PIM CUM Delivery Order (PIM CUM DO) in
terms of tonnage/ number/lot/measurement. In case of big equipment/Plant/Unit sold,
where whether the entire Plant/Equipment/Unit is lifted in one or different parts/lots, the
delivery shall be on the basis of the prices quoted is for the entire unit/equipment/plant.
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For extra tonnage of the item, proportionate extra payment shall be required to be made
by the parties with reference of the item mentioned in the tender/ PIM CUM Delivery
Order (PIM CUM DO).
c)Weighment:Theweighment of material as recorded on BSL’s weigh-bridge/reflected in
DA/RR shall be final and binding.
1.(a)Delivery time for removal of goods: The delivery of the materials will be effected
“in situ” by the Management. Time is the essence of the contract. The goods sold will be
removed by the buyer from the site within validity of the sale order. Delivery of the
materials will be made during working hours on all working days on presentation of PIM
CUM Delivery Order (PIM CUM DO) by the purchaser to the officer in charge, who may
suspend the delivery for particularperiod of time for want of any clarification or other
technical / operation reasons. The buyer will make their own arrangement for collection /
removal and transportation of the items/ lots purchased and will not be entitled to claim
any facilities or assistance for the transport/ removal of the goods/ lots from the Plant
premise. The Management may, subject to the availability, extend at its discretion certain
facilities such as cranes etc. on chargeable basis or otherwise for handling the lot. The fact
that such application has been made to the Management or any delay on the part of the
Management to grant such facilities does not entitle the purchaser for any extension of the
delivery date.
(b) The removal of the materials within the stipulated period is not subject to the
availability or otherwise of labour, wagons and such other factors as climatic conditions
and transport etc. which is the responsibility of the purchaser.
(c) However the Management may, consider allowing extra lifting time in special
circumstances/ situation when lifting could not be done due to reasons such as strikes,
Bandh, failure of loading equipment/EDP computer system or any other unforeseen
reasons etc.
2.(a) Railway siding facilities: The purchasers may, at the discretion of the
Management be permitted to use the Plant siding at the purchaser’s cost, risk and
arrangements, granting of permission is subject to Railway restrictions from time to time.
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The purchaser will have to pay the Management in advance the siding charges as applicable
from the time to time. Necessary Security Deposit payment will be made by the purchaser
on this account, the purchaser will be liable for the payment of al the charges payable to
the Railways whenever the Plant siding is used under their own arrangement or through
the Plant in case of delivery by Rail. Delivery by rail shall be subject to wagon availability
and Railway permission. On this account no claim/complaint shall be entertained by BSL.
(b) No picking, sorting, cutting, cleaning or breaking up of goods of materials sold will be
permitted, except in certain special circumstance where prior sanction for such a
permissions has been accorded by the Management. Such permission will be accorded
only for cutting or breaking of heavy/big pieces into loadable sizes and not processing.
(c) Whenever permitted, the purchaser shall carry out cutting, breaking and dismantling of
the sold good for lifting in pieces under the supervision of authorised representative of
Loading Unit/Delivery department.
The delivery Department will ensure proper identification of the
items/equipments/installations and marking on them during cutting and dismantling works
in order to avoid mixing of the sold items with any other assets of BSL. However, before
starting the dismantling work, written approval of HOD concerned shall be obtained from
Delivery Department/Loading Unit.
3.Shortage of goods: Where goods are sold in lots and not in number or units, any
reference to the quantity, quality, size, measurement number and other documents shall not
be a point of dispute and the purchaser shall have no claim against the Management for
refund of whole or any part of the purchaser’s money or for loss of profit, of interest,
damage or otherwise. Where materials are sold by number and the purchaser fails to obtain
delivery of the whole or a portion of the goods sold, he shall be entitled to make a claim
for the proportionate refund of the sale value of the undelivered quantity. He shall not be
entitled to claim any damages, loss, profit, interest or compensation on any account due to
such short delivery.
4.Re-Sale: The Management will not recognize Re-Sale. Sale Orders and release orders
will be made out only in the name of actual Bidder or tenderer.
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5.Custody and preservation of goods after sale : The materials shall remain in every
respect at the risk of the purchaser from the date of Sale Order is issued to the purchaser.
The Management shall not be under any liability for the safe custody or preservation
thereof from that date.
TIMINGS OF THE ONLINE BID
All the timings of the Online Bid shall be based on the time indicated by the Server hosting
the Auction Engine. It shall be the endeavor of "Service Provider" to ensure that the Server
Time reflects as closely as possible the Indian Standard Time (IST) i.e. GMT + 0530 hrs.
However, in the event of any deviations between the Server Time and the Indian Standard
Time, the functioning of the Auction Engine
(Launch, operation, and closure) would be guided by the Server Time. Bidders are advised
to refresh both the windows of the Auction Module check the exact Server Time (displayed
in both the windows).
PREVIEW TIME
Preview Time refers to the period of time that is provided prior to the commencement of
bidding. This is to facilitate approved participants to view the auction details such as item
specifications, bidding details and bidding rules. The purpose is also to familiarize
participants with the functionality and screens of the auction mechanism. It is not
mandatory for "Service Provider" to provide Preview Time.
START TIME
Start time refers to the time of commencement of the conduct of the online auction. It
signals the commencement of the Price Discovery process through competitive bidding.
DURATION OF THE AUCTION
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It refers to the length of time the price discovery process is allowed to continue by accepting
bids from competing bidders. The duration of the auction would normally be for a pre-
specified period of time. However, the bidding rules may state the conditions when the pre-
specified duration may be curtailed/ extended. The conditions include:
Shortening of auction duration in the event of no bids for a specified period of time
(Inactivity Time)
Automatic extension in the event of bids being entered towards the end of the scheduled
duration to facilitate the other bidders to view and react to the bid.
AUTO EXTENSION OF THE AUCTION TIMINGS
In the event of bids in the last few minutes of the scheduled bid time, the Bid Timings are
automatically extended for a specified period from each such bid. Such Auto Extension
shall continue until no bids are placed for the specified period (Engine remains inactive for
the specified period). The Inactivity Time for Auto Extension purpose is normally X
minutes. "Service Provider" however retains the right to change the same. The Inactivity
Time applicable for the particular Online Bid shall be visible to the bidders under the
Bidding Rules module on the engine.
END OF THE AUCTION
End of the Auction refers to the termination of the auction proceedings signaling an end to
the price discovery process.
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2. FIXED PRICE SELL
FLOW CHART OF FIXED PRICE
Advertisement of type of
materials on SAIL
website/Newspaper
Application from customers
Allocation of material
Issue offer letter
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PROCEDURE OF SALE THROUGH FIXED PRICE
1.General Sale notices for different items to be sold is posted on SAIL website and
advertise in various newspapers (Local and National) between every 15th to 20th of the
month for the next month,
2.For requisition of materials, applications are invited from customers bet 25th -30th/31st of
every month.
3.Allocation of material to various customers is done as per approved procedure of priority
allocation.
4.Offer letters are issued to the customers.
5.Price applicable will be the price rising at the time of dispatch.
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PRIORITY IN BOOKING OF MATERIALS BY MARKETING
DEPTARTMENT
Category Priority
Buyer
Quantity to be
allotted
A 1st Govt. Units/PSUs & its
subsidiaries & joint ventures
of govt. units having more
than 50% govt. share
Any quantity
required by them
B 2nd Dependent BIADA units with
MD/BIADA’S
recommendations & MD/BSL’s
approval.
Maximum 70% of
the balance
available quantity
after meeting the 1st
priority
C 3rd Consumers/Processes of
Jharkhand state
30% of balance
D 4th To all other customers Out of the balance
quantity of material
left if any
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3.TENDER
TENDER DOCUMENT
TERMS & CONDITIONS
1) The parties desirous of purchasing the material have to quote for entire quantity of the
material.
2) The Tenderers are advised to inspect the material at B.F. Slag Dump, if so desired, before
submitting the quotations.Parties will be permitted to see the materials from 9.30 Hrs to
4.30 Hrs daily on working days. Necessary entry passes may be obtained from the
Receptionist/ CISF
3) Terms of sale: On “As is where is basis ", " No complaint basis “and” Ex-works basis"
No PICK and CHOOSE shall be allowed other than sorting out Iron/Steel pieces found, if
any.
4) The conditional quotations are liable to be rejected.
5)EARNEST MONEY
EMD (Earnest Money Deposit) Rs.100000/- for the item to be deposited in the form of
DD/BC/PAY ORDER in favors of SAIL/Bokaro Steel Plant, payable at Bokaro, from any
Nationalized / Scheduled banks along with the quotations. Any variation / demand in such
taxes, duties, levies, and charges and / or any fresh imposition of such taxes, duties,levies
and charges shall also be to the account of the bidder to whom the tender is awarded.The
tenders should quote their rate in per cubic meter against the total quantity as asked for in
the tender document both in words and figures.
In case of any mismatch / ambiguity between the two the higher of the two rates only shall
be considered.The tender should be submitted in the TENDER BOX placed inside the
CONFERENCE HALL OF MARKETING AND STRATEGIC PLANNING
DEPARTMENT on the 5th floor of ISPAT BHAWAN. The general terms and conditions
of lifting by road and safety stipulations in force shall be applicable.
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6)PAYMENT TERMS:
The successful bidder has to make payment for the quoted quantity in 12 (twelve) equal
installments of 1000 CU. each. 1st installment is to be deposited within 10 (Ten) days from
date of issue of sale order inclusive of the date of issue of sale order. Subsequent
installments are to be deposited within 30 (Thirty), 50 (Fifty), 70 (Seventy), 90 (Ninety),
110 (One hundred ten), 130 (One hundred thirty), 150 (One hundred fifty), 170 (One
Hundred seventy), 190 (One hundred Ninety), 210 (Two Hundred ten) & 230 (Two
Hundred Thirty) days from the date of issue of sale order (inclusive of the date of issue of
sale order). However, lifting of entire quantity of material has to be completed within the
validity period of 300 (Three Hundred) days from the date of issue of sale order (inclusive
of the date of issue of sale order). Payments shall be in the form of DD/BC/Pay order or
acknowledgement note from SBI, IFB commercial, Branch of Raipur /Bokaro payable at
Bokaro from any of the Nationalized / Scheduled banks in favor of SAIL /Bokaro Steel
Plant. In case of failure of payment as mentioned above and or failure in lifting of material
within the validity period of lifting, the Management reserves the right to cancel the sale
Order and forfeit the security deposit.
7) LOADING AND TRANSPORTATION:
Loading and transportation of the material in the tenderer vehicle has also to be done by
the tenderer at their own cost and arrangements.
Successful customer will be allowed to lift the material only 4 days in a week.
8) Bokaro Steel Plant reserves the right to accept or reject any of the tenders or all the
tenders or award contract to any other customer fully or partially without assigning any
reason.
9) The management reserves the rights to divide the quantity offered for sale and allot the
material to more than one tenderer.
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10) VALIDITY OF LIFTING:
The successful tenders have to complete the lifting of the allocated quantity of material
within 300 (Three hundred) days from the date of issue of sale order.
11) The offer of the customer would remain valid for a period of 90 (Ninety) days from the
date of opening.
12) Loading will be done under the supervision of MRD, the operating agency of the
contract.
13) Evaluation criteria are the highest price for whole quantity (12000 Cu.) subject to the
price being acceptable to the management of Bokaro Steel Plant.
14) The standard Arbitration Clause of BSL as per the Arbitration and Conciliation act
1996 would be applicable.
ROLE OF “SERVICE PROVIDER”
1. “Service Provider’ is the agency (operator) primarily providing the service of the
Forward auction to the “client”.
2. Finalization of the auction items in consultation with the client..
3. Defining of bidding rules for each auction in consultation with the client.
Enhancing bidder awareness of and comfort with the auction mechanism and bidding
rules.
4. Enlarging the customer base by introducing new bidders.
5. Input of the Auction items and defining the bidding rule in the auction
engine.Providing access to the approved bidders to participate in the Auction.
6. Summarizing the Auction proceedings and communicate the outcome to the Client.
7. The responsibility of fulfillment of the contract rests between the bidders and the client
and the responsibility of the “Service Provider” shall be restricted to the extent of the
services provided by them.
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ROLE OF BIDDER
The role of the bidder is outlined below:
The bidder would participate in the auction with the aim of bidding to secure the auctioned
item in the auction. The bidder would be provided access to the Auction through a “User
ID” protected by a “Password”. The bidder needs to ensure that the “User ID” and
“Password” is not revealed to unauthorized persons. Bidders are also requested to change
the password allocated to them by the “Service Provider” to keep their confidentiality.
However it would be bidder’s sole responsibility to ensure the security and privacy of the
same and he/they would not hold the “Client” / “Service Provider” responsible in any
manner whatsoever for any misuse of these user IDs and/or Password. Access to the auction
mechanism shall be provided to all the approved bidders subsequent to obtaining their
written consent to the General Rules & Regulations and the Letter of Interest. Payment of
Earnest Money Deposit (EMD) as decided by the client minimum 3 days before the of the
Forward auction will be one of the necessary conditions for participating in the auction.
Bidders hereby confirm that they shall commit to lift the items/Lots (being bid for) at the
price entered by them in the auction engine AND at the terms and conditions specified
herein by the Client. All Prices entered shall be legally binding on the bidders. Bidders are
strongly advised to exercise due diligence while placing bids. Failure to honor the bids
placed during online bidding shall render the bidders liable for penal action as mentioned
at point no 12 of the notice for Forward Auction i.e. Forfeiture of the EMD and debarring
them for future participation for 6 months. In the event of winning an allotment in the
auction mechanism, the bidder shall commit to fulfill outlined obligations under the
contract.
The bidders shall bid on the terms specified by the client & place their bid in the auction
engine in the manner specified by “Service Provider”. The bidders shall not stipulate any
conditions on their own unless the terms of the client (the client’s terms & conditions)
expressly permit such conditions being stipulated by the bidder. Bids entered with
conditions attached shall be considered Conditional bids & “service provider” retains the
right of rejecting these bids even without intimating the client.
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CHAPTER-6
MODULE WISE DESCRIPTION
INTRODUCTION TO PROPOSED SYSTEM
(1)SALES ORDER PROCESSING AND DISPACTCH
ADVICEPREPARATION SYSTEM deals with the orders that are placed by the
customers. The System processes these sales order keeps track of the dispatches that were
made from the loading unit and helps in the speedy preparation of accurate D.A.’s .This in
turn helps in the generation of the invoices, which are sent to the stockyards to various
customers.
(2)TEST CERTIFICATE SYSTEM
It makes certificate for each and every product manufactured by the plant .The test
certificate states the physical and chemical properties of the product and also ascertains the
quality of the products and assigns it the correct quality code.
(3)MATERIAL MANAGEMENT SYSTEM
it maintains an inventory of the different materials which are used in the day to day working
of the plant. For example the system keeps a track of the who ordered a particular material
to be bought ,whether the material has been used or not ,if yes who issued it and it issued
.thus a complete account of all the material kept.
(4)ACCOUNTING SYSTEM
It takes care of various accounts such as purchase accounts, plants and equipment account,
raw material account, works account etc. are maintained by the EDP Center. Apart from
this book keeping work the centre also analyzes these accounts to check for various over
expenditure.
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ONLINE SALESORDER PROCESSING AND DESPATCH ADVICE
PREPARATION
Bokaro Steel Plant is dispatching its product everyday to the its various destinations
.bokaro’s product range hot rolled plates, sheets and coils, cold rolled sheets and coils,
galvanized coils, plates and sheets and black plates of the various sizes and
specificatios.Secondary product like Pig iron ,ammonium sulphate,granulated slag and
various tar products are also send to different parties. These products are marketed through
a network of stockyards and distribution centers scattered all over the country. Apart from
these some materials are also sold directly to the parties.
THE GENERAL PROCEDURE TO SUPPLY A PRODUCT TO THE CUSTOMERNIS
AS FOLLOWS:-
1. first the order is placed ,for the primary products the order is placed at various branches
of the SAIL all over the country. These orders are compiled and the orders concerning the
BSL are sent to Central Marketing Organization (CMO) at bokaro.For fertilizers and
chemicals, which are obtained as by-product the order is placed at CMO,Kolkata. For
secondary products like scraps etc the orders is placed at the commercial department of
Bokaro Steel Plant. This order is kept as sales order. The present system deals only with
the sale order of the secondary products.
2. Next, whenever the product is dispatched from loading unit ,a dispatch advice is or the
DA (a document stating material’s ,parties and the wages details) is made at loading unit.
The product is dispatched by rail and sometimes road.
3. From the loading unit the railway wagons carrying the product go to steel workstation
where the wagons are handed over to the railways to be sent to the specified destinations
and railway receipt RR is obtain in return.
4. Now depending upon the product sent (whose complete information is present in the
dispatch advice and RR) the invoice is prepared .It is checked error corrected and printed.
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5. Before the product was dispatched from the loading unit its test certificate was also
prepared. Thus now to complete the procedure, the invoice, the test –certificate and a copy
of the RR ,all the three pinned together are sent to the concerned party.
In this procedure the speedy disposal of the materials from the stockyard
depends upon the accurate and timely receipt of invoices at the branch offices. It was
observed that the manual system of the dispatch advice preparation was one of the major
bottle necks for timely preparation of the invoices. Production of the saleable steel was on
the increase and in still increasing .With the increase it would have got impossible to cope
up with the DA preparation for all dispatches and thus a computerized on-line system was
essential. Thus to overcome all problems and increase the efficiency the On-line Sale Order
Processing DA Preparation was planned.
SCOPE OF THE SYSTEM
The scope of the system includes;-
i) Sales Order Processing
ii) Dispatch advice preparation
iii)Finished product inventory
SALES ORDER PROCESSING
The purpose of the sale order processing is tocapture relevant details of all the orders before
making any dispatch plan and actually executing the orders.This ensures dispatches against
valid orders which ultimately helpin the quicker and accurate preparation of DA and
monitoring of despatches vis-à-vis sale orders.Foreach purpose sale orders are
electronically received for the CMO thereby avoiding duplication in the data preparation
and at the same time ensuring accuracy.
DESPATCH ADVICE PREPARATION
It was planned to prepare computerized DA at the loading unit and update RR details in
the DA through remote terminals installed at the steel workstation.This speeds up the
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preparation of the dispatch aadvices .Initially the dispatch advices were prepared manually
at all loading Unit.As a result a number of copies were to be prepared to be sent to the
various concerned departments in which there was scope of making many errors and also
the procedure took a lot of time.As a result of computerized on-line system the required
data was needed to be fed to the system only once .The concerned department would then
take out there own reports.
THE AGENCIES AND THERE FUNCTION
AGENCIES INVOLVED
SRM’s office ,Bokaro steel city
CMO(KOLKATA)
Commercial Department
Sales Co-ordination Department
Sales account department
Loading unit at CRm shopping
Loading unit at HRCF shipping
Loading unit at hdgl shipping
Traffic Department
C & IT Center
Telecom Department
THE INFORMATION ON THE COMPUTERS
All the information is stored in the following database using tables. The information can
be categorized in the following two parts:-
1. Sale Order information
2 Item Information
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SALE ORDER INFORMATION:-
Information regarding Sale Order is stored in the table SOTBL.Some of the main columns
of the table is:-
PRODUCT CODE DA NUMBER
Da date Transport mode
Owning Railway Wagon type
Tare Weight Gross weight
Paying authority code Destination code
State code Consignee code
Type of sale Branch code
Loading unit no. Status of DA
ITEM INFORMATION: Item information corresponding to all the DA is
stored in the table item file.Some of the main column of the table are:
PRODUCT CODE DA NUMBER
Item no. Sales order no.
Sub product code Specification code
Weight Extra code
TYPE OF OUTPUT OR REPORT GENERATION
1. Report on the movement plan for sales order; This report should clearly indicated details
of the party, product for the sales and its price ,instructions for customers,dispatch delivery
instructions.That is the report for each sale order tell party’s code number,account number
,name and address.This report should also show the product code and other details of the
product. The instructions for customers contains term and conditions of the company
whichthe customers are required to follow.
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FORMAT ON THE REPORT
The report has the following rows .a brief description of each row are as follows;-
1. Name
2. Party Details: - This row contains all important information about any parties.
3. Product and Price Details;-This row contains product code ,lot code,Rate of the
product/unit tax collection at source.
4. Instruction for the customer;-This contains instructions which is to be followed by the
customer by any cost.
5. dispatch/delivery instruction;-contains instruction for the delivery of the product.
6. Remarks;-If any remarks then to be written here.
7. Distributions: Necessary detail products are to be distributed.
REPORT SHOWING DELIVERY ORDER DETAILS:-
This Report should list all delivery details. It should clearly show the specifications of the
product that were delivered. This report also contain some important instruction for the
product delivery.
FORMAT OF THE REPORT
A report has following rows. A brief description of the rows contains:-
1. D.O. no. and date –This Rows contains the delivery order number of the product and
date on which product is to be delivered.
2. Customer Code:-This row contains code number of the customer ,consignee name and
address, Tin number and other customer Details.
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3. Procode:-This shows the code of the product to be delivered, it also contains the change
in the quantity to be delivered, price of the quantity and other details.
4. Account instructions
5. Payment Details
6. Dispatch /Delivery instructions
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CHAPTER-7: DATA ANALYSIS &INTERPRETATION
SALES OF SECONDARY STEEL (Value in Lakhs)
Interpretation: Better marketing strategy pushed the sales of secondary steel of
B.S.L. According to the above chart sales in 1stqtr of year 2009-10 was 11464 lakhs in 2nd
qtr of the year it was 13179 lakhs. Similarly in 4th qtr of the year 2009-10 it was 15194
lakhs. And in the year 2010-11 it was first increases in the 1st qtr i.e.13022 lakhs and
then decline in the 4th qtr of the same year to 9159 lakhs.
0
10000
20000
30000
40000
50000
60000
70000
3rd Quarter (Oct.'13-Dec.'13
4th Quarter (Jan.'14-Mar.'14)
Total
Chart Title
Value (Rs. Lakh) Cash Collected (Rs. Lakh) Column1
Quarter value (Rs.
Lakh)
cash collected (Rs. Lakh)
1st Quarter (April'13-june'13) 13875 10557
2nd Quarter (July'13-sep.13) 13004 10153
3rd Quarter (Oct.'13-dec.13) 14503 8916
4th Quarter (Jan.'14-mar.'14) 19795 14563
Total 61177 44189
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SALES OF IRON & SCRAP (Value in Lacks)
PERIOD 2007-08 2008-09
1stQtr 958 1326
2ndQtr 1115 1039
3rdQtr 1014 1103
4thQtr 1472 915
0
200
400
600
800
1000
1200
1400
1600
1st Qtr 2nd Qtr1115 1039
3rd Qtr 4th Qtr
Series1
Series2
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SALES BFG SLAG (Value in Lacks)
SALES PIG IRON(Value in Lacks)
PERIOD 2008-09 2009-10
1st Qtr 797 840
2nd Qtr 933 914
3rd Qtr 953 882
4th Qtr 940 998
0
200
400
600
800
1000
1200
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
77
PERIOD 2009-10 2010-11
1st Qtr 1436 0
2nd Qtr 854 458
3rd Qtr 0 175
4th Qtr 0 603
(source:marketing department)
0
200
400
600
800
1000
1200
1400
1600
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
78
SALES BY PRODUCTS(Value in Lacks)
PERIOD 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
1STQtr 904 1218 1041 1263 1759 2906
2NDQtr 1320 1731 1417 1458 2047 2797
3RDQtr 1145 1038 1312 1295 2104 2041
4THQtr 2024 1797 2045 2115 1918 1701
TOTAL 5393 5784 5815 6131 7828 9445
(source:marketing department)
INTERPRETATION
This table and graph shows that the quarterly sale of By-product is different in every year
& it shows lots of ups and down and maximum sale in last quarter it is because its
production is depend on prime product.
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SALES MISC OTHERS (Value in Lacks)
PERIOD 2009-10 2010-11
1st Qtr 961 1457
2nd Qtr 848 1515
3rd Qtr 987 1065
4th Qtr 1182 462
(source:marketing department)
0
200
400
600
800
1000
1200
1400
1600
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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E-AUCTION(Value in Lacks)
PERIOD 2008-09 2009-10
1stQtr 8144 13410
2ndQtr 12100 10800
3rdQtr 9146 11223
4thQtr 12619 6553
0
2000
4000
6000
8000
10000
12000
14000
16000
1st Qtr 2nd Qtr1210010800
3rd Qtr 4th Qtr12619
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METHODOLOGY ADOPTED
The methodology adopted by me during the project on "Online sales order monitoring
module of Secondary Product on B.S.L" can be divided into two parts:
(A) To know about the organization
(B) To know about the procedure and working of Marketing Department and Secondary
Section.
(A) About the organization : Information / data has been collected from:-
(i) Government Publications.
(ii) Books of organization.
(iii) Journal.
(iv) Company's Website.
(B) Procedure and working of Marketing Department and Secondary Section information
has been collected by:
(a) Observation Method
(b) Personal Interview with
Senior managers
Jr.Managers
(c)Document provided by them.
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SWOT ANALYSIS
Strengths
SAIL is the largest steel company in India with a 26% share in total crude steel production.
Captive iron ore mines, skilled manpower base, and existing infrastructure for brown-field
expansion provide it the strength to retain its leadership position in the Indian steel industry.
Its Captive power plants provide it with more than 60% of its total power requirement, a
proportion that is likely to increase after expansion in capacity of power plants in its Joint
Venture Companies. SAIL has the largest distribution network in India comprising 37
branches, 64 warehouses and 24 customer contact offices. It has a presence in all districts
in India through a dealers' network. Its wide range of product-mix enables it to meet the
entire range of a customers' requirement. The Company has a strong Research and
Development Centre enabling it to develop superior products matching customized needs.
As a top profit earner in India SAIL has a healthy balance sheet and is virtually debt free
as its short term deposits are much higher than its total loans.
1. Bokaro Steel Plant has huge pool of skilled and experienced personnel.
2. Principle of hierarchy is given due respect in BSL enabling management to ensure
proper planning and its implementation.
3. Flawless corporate image of SAIL enhances the confidence of managers and
customers alike.
4. Record of harmonious customer relation boots the revenue gap towards north.
5. Huge infrastructure, which provides a strong base for better production and
marketing since it has country network of stockyards, dockyards and sales branch
offices.
6. The By Product of BSL is coal based and of best quality against the petroleum
based By Products of its competitors giving the company edge.
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7. A strong R&D cell of the company keeps on working over enriching the quality of
the products and to reduce the cost of whole process.
8. It has countrywide network of stockyards and dockyards/ branches/ customer
can take material from any location.
9. Customer perception of SAIL is fair and of reliable supplier > SAIL product
has International standard.
10. SAIL has a customer friendly approach and improved customer orientation.
11. SAIL is in the market from long time having long term relation from the
customers.
12. SAIL, BSL never compromises regarding ‘QUALITY’ so it has superior
quality.
Weakness
The current weaknesses of the Company stem from dependence on purchased coal from
domestic and overseas suppliers. Some technologically obsolete processes such as ingot
casting and the twin hearth furnaces continue to operate and will be eliminated only after
implementation of the modernization cum expansion plan. As the integrated steel plants of
SAIL are located primarily in the eastern states, it increases the transportation cost to the
fast growing markets of the west and south. Due to historical legacy the manpower cost in
the Company is higher than its competitors. Also, being a public sector company adherence
to a number of rules and procedures slows down the business.
1. Lack of team work inhibits proper implementation of company’s policy. Word “I”
is very much rampant in the workforce of BSL, phrase like “ I am not responsible
for the undersigned responsibility”
2. Complex pre and post sale activities repel the probable customers.
3. Due to its large organizational structure involving numerous policies and officials,
prompt decision making a real problem.
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4. No one wants to take initiative as he/she does not want to be reason for blame if the
trick doesn’t click.
5. The hard working marketing officials are not given due recognition and appropriate
reward that hurts their motivation and interest.
6. Due to its large organizational structure, which involves numerous policies and
officials, it becomes difficult to take decision quickly and as result final decision
making becomes very slow.
7. Secondary product marketing depends on the primary product demand i.e. the
demand for primary product is less the production will have to be slowed down
thus even if the demand for secondary product is mounting up still the
production won’t be increased, so the secondary product is directly linked to
primary product demand.
8. Quality of the product which is slightly inferior as compared to competitors
who are having latest technology.
9. Sometimes products are not supplied as per requirement of customer.
OPPORTUNITY
Steel consumption in India is growing at a rate of more than 10%, a trend that is likely to
persist as the nation enters into a steel intensive phase of development. The 11th Five Year
Plan has given a major thrust on the infrastructure sector with the total spending planned
at around US $ 500 billion by 2012. Mega projects in the power, energy, ports, railways
and surface transportation sectors, plans for rural infrastructure like Bharat Nirman,
allocation for which was raised to Rs. 31,280 crore and building over 2 lakh kilometers of
National Highways by 2010, present an unprecedented opportunity for SAIL which is
implementing expansion cum modernization plan to cater to the emerging demand. The
size range and quality makes SAIL's long products a preferred choice for project customers.
In case of flat products, SAIL remains a major supplier of HR Coils to the tube making
sector and is slowly increasing its presence in cold reducing segment. Plates from SAIL
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are rated amongst the best and are in good demand from project customers. The water
supply and oil & gas sectors are the other segments where there is a large growth potential.
The modernized ERW Pipe Mill at Rourkela Steel Plant is able to cater to the requirement
of these sectors. Bokaro Steel Plant and Bhilai Steel Plant are also producing small
quantities of API grade HR Coil and Plates for servicing these sectors. The per capita
consumption in India at around 46 kg remains very low compared to the world average of
around 200 kg. One of the reasons for low steel consumption is low availability of steel in
the rural area. SAIL in recent years has developed a dealers' network which covers all the
districts in India. This will facilitate availability of quality steel in the interiors and promote
market development and growth. At a macro level, steel consuming segments such as
construction, auto, capital goods etc. are growing rapidly registering a double digit growth
in recent years and would continue to be the growth drivers given the structure of the
economy. The auto sector in India has experienced rapid growth for a number of years.
Improved road, growing middle class and globally competitive auto ancillary industry have
been the facilitators of good growth for the sector. Technological breakthrough and global
competitiveness in two wheeler and small car segments are likely to make India a global
hub for these products boosting demand for steel in the country.
The world market is showing the sign of revival from the spiral of recession in
which it remained engulfed for one year.
State government has plans for revocation of small scale industries in & around
Bokaro, which will fuel the demand of secondary & by product.
Cock oven batteries 1 & 2 are rebuilt which will ultimately increase the
efficiency of Coke Oven By product plant.
Since SAIL has a wide network of stockyards/branch offices, it can supply its
products directly to customers without any difficulty.
SAIL has a very strong base it can diversify itself into the production of
different goods as per market requirements.
There is growing demand for secondary product in both domestic.
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THREATS
Customs duty on steel imports has been made nil in India and products such as TMT are
also exempt from CVD. Sluggish market conditions in developing economies may make
India destination for large scale imports adversely affecting domestic players. Government
of India has imposed export levy on steel products. India is a net exporter of galvanized
products as its total capacity is in excess of domestic demand. Adverse impact on exports
of galvanized products will have a cascading impact on domestic market for cold rolled
and hot rolled coils and sheets. China's production of crude steel at 489 million tonne in
2007 was around 36% of the global production. As Chinese economy matures and its steel
consumption stabilizes, a part of the capacity will be serving only the export markets. The
proximity and growing domestic steel consumption will make India a preferred destination
for Chinese steel, significantly intensifying the competition.
Globalized economies have erased the geographical boundaries and have brought
stiff competition
“Execution & dispatch of order” include lot of paper works & formalities, which
makes it a cumbersome task. This has led to drifting of customers towards
competitor.
By products are not the main products of BSL, neither BSL is the market leader
of these product.BSL fixes the price of the By Products on the basis of price set
by its market leaders i.e. Petroleum refineries & this pricing is known as going
rate pricing.
Acquisition of Corus by Tata Steel will led to integration of their technology &
this is the place where Tata is going to gain a lot. Technology in India is two to
three generation behind. Exposure to latest technology will help Tata to improve
quality & reduce cost. So SAIL should be cautious in this respect.
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FINDINGS
RELATED TO MARKETING DEPARTMENT
During my eight weeks training in marketing department of BSL. I have observed certain
problems in it these problems are findings of my studies.
All marketing procedure of prime products are decided by SAIL and carried
out by the Central Marketing Organization (CMO).
As the organization is concerned with a large number of productions activities
and the departmental work are done mostly manually from placement of
orders to documentation, which ultimately frustrates the employees.
The organization is more concerned with larger orders of steel products by
ignoring the smaller orders.
The local customers with business of by-products are sometimes made to wait
for days to get their papers Cleared by the department.
Most of the existing yards suffers from improper stocking space and siding
facility often they are not well developed due to this the material stored there
are rusted and other defects are caused and later they are disposed of by
offering some concession or at low rate which result in loss.
Due to improper packing, the materials reach the stockyard often in damaged
condition, which is attracting criticism from the customers and these damaged
materials are sold with loss.
Export considered Secondary to domestic selling as BSL is a govt.
undertaking and its First priority is given to domestic marketing.
Secondary product CRUAC/Def CR Coil/CREC, this is industrial scrap and
they generate maximum revenue from this product.
Sale of By- Products shows lots of up & down in different quarters in the
year & maximum sale in last quarter.
Production of By-products shows lots of fluctuation because its production is
depending on Coke oven plant.
Dispatch of By-product shows continuous growth.
By-Product N.G.BENZENE they produce maximum revenue
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RELATED TO SECONDARY SECTION
1. Payment is accepted from the customers even when the material is not available in stock,
in anticipation that the material will be made available shortly in the stockyard.
2. Unavailability of material in the stockyard leads to holding up of the huge investment
of the customers i.e. material cannot be purchased from the alternative source.
3. Refund of excess payment takes long time sometimes more than a year.
4. Price list made available to the re-rollers every month contains even the price of
materials, which is not available.
5. The price prevailing in the market of the finished goods manufactured by the re-rollers
are sometimes less as compared to the material purchased from BSL which results in heavy
losses.
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SUGGESTIONS
1. The pricing as we well as the distribution policies should be framed by keeping in mind
the requirements of the complete range of manufactures and not only the bulk consumers.
This will encourage the new re-rolling mills to approach BSL for the material.
2.Ensure delivery of the material for which the payment is accepted so that mills are not
closed or shut down for want of material.
3.Alternatively if the material is not available the BSL authorities should not accept the
payment so that the buyer can approach some other source for procuring the material and
should not unnecessarily wait for the material, which is not available.
4.Representative from the member of the rolling mills association can be introduced in the
committee formed for pricing the various secondary products. That representative holds
the complete picture of the products as placed in the market and the prices fixed with his
consent will be on rational grounds and acceptable to all.
5.Price of the material for which 100% payment has been received as advance should not
be changed if the delay in the lifting of the material by the party is due to some fault of
BSL but if is due to deliberate delay in lifting the material by the customer than the
same policy should be applicable.
6. When the customer having rolling mill of a smaller size purchase material, which are
rolled in a bigger rolling mills than this, clearly indicates that the material is being purchase
for trading. This practice can be prevented if BSL obtains a copy of certificates issued to
the owner of every mill by the District industry centre specifying the size of the mill.
7. BSL can appoint 2-3 authorized stockiest also to avoid trading practice. In this way the
benefit of break up pricing can be passed on to the one for whom these have been framed
i.e. the actual re-rollers.
8. Price list made available to the various re-rollers every month by BSL should count all
the items but it should clearly indicate the material which is not available so that the
customers requiring that particular material can approach some other source.
9.The infrastructure facilities at the disposal yard should be maintained properly and needs
improvements so that the pace of the lifting process be increased.
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10.The management should see that the actual stock is lifted is more than what is arising.
11. To achieve this goal it is quite necessary that lifting of the materials may start from the
early hours and be extended to evening hours.
Induction of computers in marketing department.
12. Proper packing is to be done to safeguard the materials from damage, which is
occurring due to multistage handling and transportation.
13. Creating product awareness through print media, hoarding, industrial magazines etc.
14. Refund of excess payment process should be improved and simplified. It. should make
payment in less time.
15. Customer satisfaction has to be ultimate aim. Customer specifications have to be exact
to match the customer need. More stringent quality policies have to be implemented.
16. E-payment should be implemented for complete automation of the e-auction process.
17. E-invoicing should be adopted for saving money by replacing paper based processes.
18. Concept of Key Account Manager should be adopted for better customer satisfaction
of regular customers.
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FUTURE SCOPE
The Bokaro steel plant is under the SAIL and taken care and guided by the steel ministry
of the India. The major competitors are Tata Steel, Jindal steel, HPCL etc, even though
company has large scope for the people and benificiaries. The scope of the company is
summarized as follows:-
PSU’s are often considered as white elephant. Determined to change this perception
honchos launched a campaign “there is little bit of SAIL in everybody’s life” in
1996, portraying SAIL as a larger- than – life company with a reliable and strong
identity. This campaign reaped its result and a subsequent survey indicated that
SAIL was the third best known company in the country & also won pioneer award
of Lintas for best campaign for the year.
But SAIL has been using same punch line from last thirteen years & carry the same
image what it had 13 years ago. Every business goes through change in
environment and those who respond to change goes further in the race and those
who don’t lose their position.
“The more you will tell the more you will sell” but Policies and strategies to create
awareness among the customers about the products are not effective.
All marketing procedure of prime products are decided by SAIL and carried out by
the Central Marketing Organization (CMO).
“Breakdown” is a common scene in almost all shops of BSL. When all the private
players are implementing new management practices in their system while BSL
is still struggling to overcome this old problem
It is a paradox that though BSL claims itself to have one of largest store(inventory)
in India but it is facing the problem of “space keeping”. Reasons like obsoleteness
due to technological up gradation, purchase of more goods than requirement e.t.c
has led to augmentation of goods. In many cases maintenance cost have out stripped
the its actual cost.
Periodical transfer of top brass from one department to another is norm of the
company to discourage monopoly but this sometime reduces efficiency, till the time
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one understand what he/she has to do he/she get another transfer order as everyone
is not ”jack of all trade”. Transfer also encourages practices like cronyism.
Producing all the ingredients, products(i.e.; coke, limestone) that are consumed
during the process of production of steel within the plant sounds good, but it
ultimately increases the cost of production
When we closely watch the production process of top steel players of the world
then we will realize that they outsource everything and they channelize their
expertise in increasing the quality of their core product & product mix.
It is truly said for Indians “we are best planner but worst executer”. Authorities of
BSL are gung ho about the expansion plans but it can be paralyzed by the locals
(whose land are being acquired) in the absence of proper land acquisition policy.
So, state government & top brass have to sit together and waste a lot of chalk in
their boards to sort out this problem.
“Badahai to behtarhai“BSL has always been concerned about the orders from big
players without giving due importance to small one. But it should prepare itself for
any bad circumstances when dark horses can prevent their balance sheet going red.
Red tapism: Lot of paper work & bureaucratic behavior of officer kills lot of
valuable time of company as well as its customers.
“SAIL TMT, SAIL Jyoti GP/GC Sheets” are few products which are directly
consumed without further value addition in it.TMT market is already overcrowded
with many players.
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CONCLUSION
In the past six weeks during my training. In order to gain practical knowledge a visit was
undertaken to see the Secondary Products and by products of BSL.The study was
undertaken to see the mode of sale of Secondary and By Products of BSL. During the
training process I learned how e-auction, fixed price sale and tenders are used for marketing
purpose by Bokaro Steel Plant. The sales of Primary Products are assign to CMO (Central
Marketing Organization) of SAIL.
To market a product good knowledge of products is pretty necessary and for the same I
had visited different workshops such as
SSD(SCRAP AND SALVAGE DEPARTMENT)
A place where normally scrap and salvage is being kept which do not suits the
specification. Scrap generally is steel which is not above conditions. Generally
scrap and salvage is recycled to use in convertor and rest is being sold.
BPP( BY PRODUCTS PLANT)
How these by products gets produced during production process of steel and when
coal is converted into coke.
SMS(STEEL MELTING SHOP)
SALES AND CO-ORDINATION DEPARTMENT
Main focus of study was to know how they use technique and 90% marketing and selling
is done through e-auction and rest will be sold through fixed price selling and tenders.
As Bokaro Steel Plant recognizes that leadership is essential for survival in competition.
Customer’s satisfaction like quality is a journey not a destination .as SAIL has a small
contribution in every bodies life, there is a bit of SAIL in every one’s life more or less
.That’s why improved customer satisfaction is key to ensure companies prosperity and
profitability. And it is possible only when there is an ability to produce quality products
and continuous improvement in profit and growth.
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The basic objective behind the study was to find out the contribution of secondary products
to total sales. By selling the secondary products and by- products in the local market
company is earning more revenue to the Company. And along with this also creating
employment opportunity in small scale industries and developing the economy too. It is
essential that everyone in the company have a clear understanding of what customer
satisfaction means if the plant aim to achieve leadership in customer satisfaction
Customer's satisfaction would happen when the management fulfills
The following dimensions.
1. Delivery in time.
2. Product mix according to customer requirement
3. Flexible pricing policies
4. Complaint settlement
5. Culture of customer service.
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BIBIOLOGRAPHY
1. MARKETING PERFORMANCE REPORT (Apr’12-March13’)
2. WEBSITES:
www.sail.co.in
(Date of site visited: 04-07-10, article name: history of Bokaro steel plant)
www.metaljunction.com
(Date of site visited: 04-07-10, article name: about methods used to sell
products)
www.steelrx.com
www.bokaro.nic.in
http://money.rediff.com/money/jsp/p_l.jsp?companyCode=15510002
http://www.jstor.org/pss/3516789
www.steel.gov.in
3. Magazine published by SAIL
4. Books of organization (page no: 19, 31, 56, 59-62, Date of issue: May 2013,)
5. Annual Directors Report 2013-2014
(Page no:5,6,7,9,11,22,23,30,31 Date of issue: July 2014)