Bokaro steel plant ( SAIL)

PREPARED BY: PIYUSH RANJAN MBA BU

 Steel industry is often considered to be an indicator of

economic progress, because of the critical role played by steel in infrastructural and overall economic development Global steel production grew enormously in the 20th century from a mere 28 million tonnes at the beginning of the century to 781 million tonnes at the end The economic boom in China and India has caused a massive increase in the demand for steel in recent years. Between 2000 and 2005, world steel demand increased by 6%. Total crude steel production in the year 2010 was 1413.6 mmt.

 According to world steel association following

countries are the leading producer of steel in the year 2010.

Brazil, 32.8 Turkey, 29 Ukraine, 33.6 Germany, 43.8

South Korea, 58.5

India, 66.8 Russia, 67 United States, 80.6 People's Republic of China, 626.7

Japan, 109.6

European Union, 172.9

 STEEL AUTHORITY OF INDIA LIMITED (SAIL): is one of the largest

state owned steel making in India with an annual turnover of 47,041 crore The company is among the five Maharatnas of the countrys central public sector enterprises.
Type Industry Founded Headquarter Chairman State owned public enterprise Steel 1954 New Delhi , India Mr. C.S. verma

Annual production rank

employees

13.8 mmt 24th

1,10,794

 Bokaro Steel Plant is hailed as India's first Swadeshi steel plant

incorporated as limited company in the year 1964. Bokaro Steel Plant is located in the Bokaro district of Jharkhand At present it houses five blast furnaces with total capacity to produce 4.5 MT of liquid steel. Plant is undergoing a mass modernization drive after which its output capacity is expected to cross 8 MT. Bokaro Steel Plant is designed to produce a wide range of flat products: Hot Rolled Coils Hot Rolled Pillets or Plates Hot Rolled Sheets The PBT for the year 2009-10 of BSL was 2085.05 crore.

 To analyse the financial conditions as well as the HR

activities and the working methodology in the organization of SAIL (Bokaro steel plant).
To know the pricing and sales strategy of BSL. To analyze the overall performance of the organization

in this competitive world.

 F&A is an important department of BSL headed by ED

.There are 34 production cost centers ,24 service centers and 18 job costing centers of engineering shops
It deals with

pay section, purchase account ,main account section, cash account, project finance, sales section, excise section ,provident fund section.

Marketing Department is one of the Departments under Materials Management Division of Bokaro Steel Plant. The Marketing Departments sales procedures are covered by the guidelines given by SAIL Corporate office DELHI, and is given by CMMG (CORPORATE MATERIAL MANAGEMENT GROUP) Marketing of prime products of SAILs plant including BSL is done by CMO (Central Marketing Organization) which is a unit of SAIL. Marketing of secondary products and coal chemicals are done directly by Marketing Department of BSL. As a matter of fact, the Secondary & By-Products are marketed by the individual Plants

 During the fiscal 2009-10, all the five integrated steel plants

recorded their best ever labour productivity. An overall labour productivity of 226 Tonnes/man/year was achieved by SAIL Executives at GM/DGM level were nominated to participate in Specialized/Advance management programmes, conducted by Premier Management Institutes for exposure to best business practices and leadership development. Effective internal grievances redressal machinery exists in SAIL plants and units, separately for executives and nonexecutives

Strength
In BSL there is a reservoir of skilled and experienced

personnels. Biggest in house research centre in Asia. Good corporate image of SAIL enhances the level of confidence in the managers. Weakness Complex pre sale and post sale activities hinder most of the potential customers. There is no control on the quality of by-product they are unable to fetch handsome revenue. Under-utilization of production capacity.

 Opportunities
With establishment of continuous casting, the capacity

to produce primary product has increased and this will increase the production of by-product.
India is seen as the fastest growing steel market in long or

medium term. This will provide opportunities for SAIL to grow based on domestic demand. Threats Cheap imports from China and CIS continue to pose threats for domestic suppliers. With the coming up of ARCELOR MITTEL POSCO steel plant in the Jharkhand is going to effect the sale of BSL in its present market.

 BSL is dependent on imports for meeting its

increasing requirement of coking coal. The main issue attached with Bokaro Steel Plant is that most of the customers finds its secondary and byproducts price higher than the other brands available in the market. Most of the BSL customers find difficulties while dealing in post sale activity.

 Bokaro steel plant should have to work on increasing the

loyalty and goodwill of customers and suppliers by providing proper trade discounts. BSL should have to work on decreasing the price of its secondary and by-products and also increase its quality Benzene, Toluene and Ammonium sulphate are having highest consumption among by-products. So, products of mainly these by-products have to be increased. The cost of raw materials as incurred by the Bokaro Steel Plant is very high which has to be brought down through incorporating better technologies. Ex-coking coal.

There is a bit of steel in everyones life.!