Professional Documents
Culture Documents
Bokaro SAIL
Bokaro SAIL
Project executed at
SAIL
(A Government of India Enterprise)
Bokaro Steel Plant
Bokaro Steel City, Dist- Bokaro (Jharkhand)
CHAPTER 1
EXECUTIVE SUMMAR
1.Executive Summary
This study investigates the Pricing and Sales strategy of Secondary and byproducts at Bokaro Steel Plant. This study is done for SAIL; BSL
The present study was undertaken to see the mode of sale and pricing methods
of Secondary Product of SAIL. Marketing Department is the newest genesis
from the SAIL and attempts to reach their where no corporate has ever ventured
so far.
The survey was conducted in Marketing Department and Sales Coordination
department. I was to find how auctions, fixed price and tenders are used for
marketing purpose BSL.
Various steps involved are as follows. To know about the e-auctions of
marketing department. How they use this technique and 90% marketing and
selling is done through auction and rest will be taken through fixed price selling
and tenders.
Data were mainly collected from marketing department of BSL.
BSL is the largest Steel manufacturing sector of India and is top ranked in the
global fortune 500 companies.
During my training I had to find out mode of sale of secondary products of
BSL. Primary products are sold by CMO, Delhi. I passed through various stages
of problems and difficulties to accomplish the task of project work but it was a
privilege for me to take this opportunity a challenging work to study and
CHAPTER 2
INDUSTRY PROFILE
India is the eighth largest producer of crude steel in the world, accounting for
3.37% of the global steel production in 2005. Indias finished carbon steel
production grew to reach an estimated 42.63mmt in 2005-06; primary producers
alone contributed about 38% whereas secondary producers contributed the rest.
With reference in changes in economy Indian steel industry is poised for
massive expansion. Dramatic consumption growth over the last few years has
stimulated enormous expansion plans, facilitated by a relatively unexploited
iron ore raw material base. India is now being hailed as the new China, where
crude steel production soared from less than 100m tonnes in 1995 to over 400m
tonnes in 2006.This report focuses on detailed study about the Indian Steel
Industry. Steel became an integral part of development. It discusses basic steel
manufacturing processes like Blast Furnace and, Electric arc Furnace, industry
value chain with a special reference to major raw material trends and price
trends of steel products. Demand supply dynamics has been discussed along
with key growth drivers and Export-Import scenario. It also talks about Issues &
challenges of the steel industry, mergers and acquisitions, government policies
and regulations. Top 10 Leading Players in steel Industry have been profiled
namely Steel Authority of India (SAIL), Tata Steel, ESSAR Steel and JSW Steel
in this report and analyzed on the basis of financial and operational performance
and compares their Competitive Positioning along with future outlook in the
light of increasing trend in investments in the domestic industry .Steel Industry
in India is on an upswing because of the strong global and domestic demand.
India's rapid economic growth and soaring demand by sectors like
infrastructure, real estate and automobiles, at home and abroad, has put Indian
steel industry on the global map. According to the latest report by International
Iron and Steel Institute (IISI), India is the seventh largest steel producer in the
world.
With reference to development which revised Indian infrastructure, the origin of
the modern Indian steel industry can be traced back to 1953 when a contract for
India is deficient in raw materials required by the steel industry. Iron ore
deposits are finite and there are problems in mining sufficient amounts of it.
India's hard coal deposits are of low quality.
Insufficient freight capacity and transport infrastructure impediments too
hamper the growth of Indian steel industry.
Strengths of Indian Steel Industry
Outlook The outlook for Indian steel industry is very bright. India's lower
wages and favourable energy prices will continue to promise substantial cost
advantages compared to production facilities in (Western) Europe or the US. It
is also expected that steel industry will undergo a process of consolidation since
industry players are engaged in an unfettered rush for scale. This is evident from
the recent acquisition of Corus by Tata. The deployment of modern production
systems is also enabling Indian steel companies to improve the quality of their
steel products and thus enhance their export prospects.
2.1COMPANY PROFILE
During struggle for independence, Pt. Jawaharlal Nehru, our first Prime
Minister, had a very clear vision about the role of Steel in the development of
our country. Although TATA Iron & Steel Company (TISCO) has been
SAIL was formed by registration of a company under the companies Act and
not by the Act of Parliament. Govt., decided to abandon the holding company
concept in 1978 and a bill was presented to the Lok Sabha. Accordingly, SAIL
was again recognized in the following manner.
Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International
Ltd., Bhilai Ispat Ltd., Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly owned
subsidiaries of SAIL merged into it and started functioning as Units of SAIL.
MECON, HSCL and NMDC become independent Companies and started
functioning under Ministry of Steel. However, Kiriburu and Meghatuburu Iron
Ore Mines were attached with BSL as their Captive Mines.
Bharat Refectories Ltd. also became independent under the Ministry of Steel
and refractory units also came under them.
Thus, SAIL, at present, is having capacity of 12 MT of crude steel through its
four integrated Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Two
special steel plants at Durgapur and Salem produce a wide range of alloy and
special steels. Marketing of the products from these plants is done through a
OTHER UNITS
JOINT VENTURE
SAIL has promoted joint ventures in different areas ranging from power
plants to e-commerce.
INTRODUCTION
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started
taking shape in 1965 in collaboration with the Soviet Union. It was originally
incorporated as a limited company on 29th January 1964, and was later merged
with SAIL, first as a subsidiary and then as a unit, through the Public Sector
Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978.
The construction work started on 6thApril 1968.
The Plant is hailed as the countrys first Swadeshi steel plant, built with
maximum indigenous content in terms of equipment, material and know-how.
Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT
ingots steel was completed on 26th February 1978 with the commissioning of
the third Blast Furnace. All units of 4 MT stage have already been
commissioned and the 90s' modernization has further upgraded this to 4.5 MT
of liquid steel.
The new features added in modernization of SMS-II include two twin-strand
slab casters along with a Steel Refining Unit. The Steel Refining Unit was
inaugurated on 19th September, 1997 and the Continuous Casting Machine on
25th April, 1998. The modernization of the Hot Strip Mill saw addition of new
features like high pressure de-scalers, work roll bending, hydraulic automatic
gauge control, quick work roll change, laminar cooling etc. New walking beam
reheating furnaces are replacing the less efficient pusher type furnaces. A new
hydraulic coiler has been added and two of the existing ones revamped. With
the completion of Hot Strip Mill modernization, Bokaro is producing top quality
hot rolled products that are well accepted in the global market.
Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled
Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill
Black Plates (TMBP) and Galvanized Plain and Corrugated (GP/GC) Sheets.
Bokaro has provided a strong raw material base for a variety of modern
engineering industries including automobile, pipe and tube, LPG cylinder, barrel
and drum producing industries.
Directions
VISION
To be a respected worldclass corporation and the leader in Indian Steel
business in quality, productivity, profitability and customer satisfaction.
Core
CoreValues
Values
Customer
Customer
Satisfaction
Satisfaction
Concern for
Concern for
People
People
Consistent
Consistent
Profitability
Profitability
Commitment
Commitment
of Excellence
of Excellence
HUMAN RESOURCE
SAILs total manpower at the end of 30 April, 2010 stood at around 26,288.
The companys labor productivity 244.02 tones/man/year as on 30.04.10
As the name signifies, the department works with Ferrous [Iron & steel] scrap to
salvage it & make it useful by adding value to it. SSD has a dual role to play in
overall scheme of things in the works division. Primarily it has to supply Iron
and Steel scrap to Steel Melting Shop (SMS) as a technological input in the
Steel Melting process. Secondly, the role of SSD is to collect all the Ferrous
Scrap (waste for the place of origin) and bring it to the department to transform
it into a useful product. Every department of the plant from Coke Oven to Cold
Rolling Mill produce mental waste termed scrap. This may be in the form of
maintenance waste e.g. broken or worn out parts, damaged structure or
equipment or may be process arising. The prime products continue on their
production flow towards the final defined output, while the arising has to drop
out as they are not suitable chemically, mechanically or by size and shape. In
the shape of fish tails or irregular edge trimming or produce which are below
the planned size. In a nut shell SSDs role is to ensure that all Iron and Steel
Scrap (unwanted at place production) are transported to site processed and
transformed to usable shape, size and quality (free of slag etc.) and transported
SMS Magnetic Scrap Yards for using as coolant in the converter bath. Surplus
scrap after supplying the requirement of scrap is offered for external sale to
generate cash resources for the Company.
TYPES OF PRODUCTS
In Bokaro Steel Plant, the finished products are categorized into three parts:
1. Prime Products: These are the actual products, which are originally produced for example,
blooms, billets, channels, rounds, angles etc.
2. By-Products: These products are not originally produced by Bokaro Steel Plant, but are
outcomes while producing the prime products.
3. Secondary Products: These are the defectives or rejected materials due to improper mixing of
chemical components or fail to meet the optimum requirements. Scraps
generated inside plant are also termed as Secondary products. The secondary
products used here in after will mean ferrous materials generated from various
production units which can either suitably be used for re-melting to produce
iron and products or offered for sale if rendered surplus in production process
for example Defective Heavy blooms, Defective Rails, Rail cutting, Rod
cutting, Scrap etc.
(B) OTHERS
1. CARBIDE SLUDGE.
2. U/R AMC/MCB BRICKS.
3. U/R MAJ CHROME MAJ BRICKS.
The net sales realization from all the Secondary products, By-Products and coproducts of BSL is around Rs.600 crores which is quite more than money the
big industries. Out of this Steel Scarp arising itself brings about Rs.15200 cores
of money every year. Re-production of main products from the; secondary
products requires re-melting it again for the required composition of the
materials as per the desired specification.
Profit is the main aim of every business, and when the realization of these
products for the finished products proves to be costlier, the management plant
decided to sell it to the local market.
By selling secondary Products to the Local market new industries are developed
for re-rolling the Secondary materials to make finished products. It has also
increased the small-scale industries and employment opportunities.
Last year average price of scrap product were between Rs.12000/ton to
Rs.16000/ton
Latest Price of different By-Product which BSL were sold in April & May
09 with previous year price
Item
Hard Med Pitch
Ferrous Sulphate
Naphthalene
Anthracene oil
Benzene
Toluene
LS Naphtha
S Boil
2007-2008
Rs.16628
------Rs.47864
Rs.13805
Rs.38354
Rs.39603
Rs.32392
Rs.20533
2008-2009
Rs.23331
------Rs.42793
Rs.18511
Rs.30961
Rs.39080
Rs.31029
Rs.19588
2009-2010
-----Rs.6000
Rs.42900
Rs.13200
Rs.32900
Rs.35300
Rs.31050
Rs.18000
(a) Marketing of prime products of SAILs plant including BSL is done by CMO
(Central Marketing Organization) which is a unit of SAIL.
(b) Marketing of secondary products and coal chemicals are done directly by
Marketing Department of BSL. As a matter of fact, the Secondary & ByProducts are marketed by the individual Plants only.
The secondary section deals with the secondary Products, it includes scraps of
iron and steel slag, coal and coke fractions, coal chemicals.
The Marketing development section deals with the MIS and strategic Planning
activity come under this section.
The Export section deals with the activities of the exports in respect of Iron and
Steel items produced by Bokaro steel plant.
ORGANISTATION CHART OF MARKETING DEPARTMENT
(BSL)
GM (Marketing)
AGM(Mktg.)
Sec. Steel Ad & Est, QC, ISO,
DCA, Contract Cell(MM)
Sr. Mgr.
(Mktg.)
Slag, Waste,
Iron,
Smug. Scheme
Manager
(Mktg.)
Jr. Mgr.
(Mktg.)
Reports, Price
Monitoring, MIS
Secondary
Steel, Safety
Officer
Jr. Mgr.
(Mktg.)
1. To monitor the orders issued by CMO, So that these orders can fulfilled in
time.
2. Put pressure on CMO, to get orders for an underutilized mill.
3. To sell all the secondary products directly i.e. directly by BSL and by CMO.
4. On day to day basis it takes care of the dispatches i.e. daily dispatch are
checked.
POLICIES OF MARKETING
(b)
(c)
The average of the prices offered by the bidder during auction is taken as the
basis to fix the prices of materials to be sold through marketing department.
Further the techniques of break-up-pricing are adopted i.e. the larger the
quantity purchased lower will be the prices. This technique encourages the
buyers to purchase larger quantity. Finally the managing director approves the
prices set by the pricing committee. On this basis, a price list is prepared for all
the potential buyers. Price list also indicates the sales tax and Excise duty to be
levied. Thus the interested parties place their orders with the marketing
department on the basis of price list reviewed every month. Every customer is
required to have a security deposit amount of Rs.1 lakh. The payment for the
material required is to be in advance. The material is supposed to be lifted on
the specified date on account of delay the party has to pay the difference in the
prices, if there is any increase in subsequent month.
Standing Pricing Committee:
The committee reviews the price of various products and takes decision in favor
of maximizing the profit. It holds meeting at least once in a month. But the
volatility of the market and pool of different products lead to a number of
meeting of the committee in quick succession.
For Scrap goods the DGM (SSD) replaces the DGM (BPP). Rests of all the
members are always present in all the meetings.
GM (Marketing), as per the need, decides the frequency and time of meetings to
be held. Minute report of all the meetings is prepared and it contains the
existing price and the proposed price. The final price is moved to the MD
through the official channel including GM (Marketing), Executive Director
(MM), GM (Finance and Accounts), and ED (Works). After the MDs approval
the price becomes applicable and the circular indicating the revised price is
printed, issued and distribution to the customers and all the concerned
departments.
DISTRIBUTION
For the purpose of distribution of steel (as per JPC) policy in fashion, customers
are categorized into A, B, C & D. Priority sector customer e.g. Defense,
Railways etc. are under category A and about 60% of the product allotted to
them. The balance 40% is kept for the category B, C & D.
On the other hand for sale of scraps there is no such policy adopted by Bokaro
Steel Plant. Customers are served on first come first served basis.
CHANNELS
Bokaro steel plant has zero level channels as it directly sells to the customers.
There is no intermediate among producer and consumer. Marketing Department
always remains in contact with the customers extracts information about the
current market situation on the basis of interaction between them.
SALES PROMOTION
Sales Promotion consists of a diverse collection of incentive tools designed to
stimulate quicker or greater purchase of particular product. As a part of
promotional activities, BSL is employing following activities:
a) Discount slabs is provided to boost the sales, description of which is
given below:
Up to 10,000 tones
-----
10,000 to 15,000
Above 15,000
No Discount
1. Customer Satisfaction
BSL adopts following practices for customer satisfaction.
d. It has posted market development officers at various locations that are its
eyes and ears for monitoring current and future expectation of its customer.
e. The Business-planning department is exclusively meant to study customer's
changing demand scenario and assess current and future expectation.
f. To understand customer needs seminars and workshops are also organized
by BSL.
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.
2. STOCK REDUCTION
Giving facilities like door delivery, road dispatches, credits facility and rounds
the clock stockyard operation.
PRICE FIXATION
DESPATICH
As the product is manufactured, this department directs the stockyards the mode
of transport to the destination with reference to dispatch program and dispatch
advice is mode.
5 DOCUMENTATION
With the dispatch of product the Finance department calculates the total cost of
product as per demand order. Certain receipts and bills quoting the material
code, nature, quantity, and all expenses are sent to connected stockyard. The
product will be then released to the concerned person after proper and complete
payment to the pay-in- authorities is made.
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.
Committed delivery.
2.
Competitive price
3.
4.
3. The pricing committee consist of Managing Directors fixes the price of each
type of scrap.
4. First preference is given to the actual users for allotment of scrap against
particular category of users. Scrap processing units are given second preference
for such allotments.
5. The amount received from the party towards advance payment and security
deposit is forwarded to finance department by marketing department after
recording the details in the register.
6. Parties are allowed to visit the respective location disposals site, and inspect
the scrap offered for sale.
7. Marketing department prepares sale order for the parties who have accepted
the offer. Sale orders are issued party wise and category wise i.e. individual sale
order covers such categories like C I scrap, steel scrap, re-rollable, slag and
waste products.
8. Based on the deposit made by the party, finance department intimates to
marketing department about release of requisite scrap for supply.
PRODUCTS
SECONDARY/BY-PRODUCTS
CMO (KOLKATA)
BSL MARKETING
METHOD OF SELLING
E-AUCTION SALE
TENDER
STEEL
CHEMICAL &
BYE-PRODUCTS
IDLE ASSETS
PRICING
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.
MODE OF SALE
E-auction
E-auction
Fixed
Fixed
Price
Price
Sale
Sale
Inter
Inter
Plant
Plant
Transfer
Transfer
Tender
Tender
CHAPTER 3
PROBLEM
FORMULATION
Bokaro Steel Plant is the largest steel plant in India. It is the fourth integrated
public sector steel plant in India built with Soviet help. It is hailed as Indias
first swadeshi steel plant, built with maximum indigenous content in terms of
equipment, material and know how. Brand Bokaro signify assured quality and
delivery, offering value for money to the customers. It is situated in Jharkhand.
The company has to identify what all improvement should
be done to increase the sales of its secondary and by-products and where the
products of BSL are lacking as compared with the competitor.
To know the customer preference of different secondary and byproducts brands with their corresponding prices and selling procedures among
customers
Hence on, to provide information that will help SAIL to improve its
service and be competitive with other brands (Tata, Essar, Ispat) in the market.
CHAPTER 4
RESEARCH PROCESS
To find the extent to which price affect the sales of secondary and
by-products.
To find the view of customers on the pricing and selling methods
of secondary and by-products adopted by BSL.
To find the reasons for brand preference.
To find the extent to which price affect the sales of secondary and
by-products.
To find the selling methods preferred by the customers.
4.4 DEFINITIONS
1. PRICING STRATEGY:
Pricing strategy is the price planning that takes into view factors such as
firms overall marketing objectives, consumer demand, product attributes,
competitors pricing and, market and economic trends
2. SALES STRATEGY:
Sales strategy is the planned approach- management, policy
formation, prospect identification and qualification, sales presentation
and order generation aimed at achieving a firms sales quotas or
targets.
OPERATIVE DEFINITION: The sales strategy in this research is
referred to as the sales presentation, prospect identification, policy
formation, order generation of BSL aimed at achieving BSL sales
targets. Their aim to achieve sales targets of Secondary and Byproducts is studied here.
CHAPTER 4
DATA ANALYSIS
AND
INTERPRETATION
Classification of customers
Trader
6
Manufacturer
14
Processor
3
others
2
Interpretation
The above graph shows the different category of customers for
secondary and by-products. Manufacturers were found to be highest among the
different types of customers.
Quality
11
Cheap transportation
7
Local market
5
price
2
Interpretation
It was found from survey that most of the customers of secondary
and by-products prefer to purchase from BSL because of local market and
quality.
Yes
No
23
Interpretation
Most of the customers of secondary and by-products of Bokaro
Steel Plant are satisfied with the quality of the product.
Secondary steel
10
By-products
11
Slag
3
Idle assets
1
Interpretation
Most of the customers of secondary and by-products in Bokaro
district deals with the secondary steel and by-products. Though idle assets and
slag also generate huge revenue to Bokaro Steel Plant but there are only few
customers of idle assets and Slag are in Bokaro district.
Brand familiarity
Yes
No
18
Interpretation
The customers of secondary and by-products are dealing mainly
with two brands. Most of the customers are dealing with BSL and TATA steel
both. Some customers are dealing with BSL and ISPAT steel and ESSAR steel.
Low price
High quality
Better service
5
others
Interpretation
The diagram indicates the reason for selecting more than one
company for purchase of secondary and by-products. Most of the customers
prefer due to high quality of secondary and by-products in other steel plant
while some prefer other steel plant because of better service that they get in
other steel plants.
Yes
20
No
5
Interpretation
This clearly indicates that there is a price difference between BSL
secondary and by-products to other steel plants. Hence, to be in competition
with other steel plants secondary and by-products, BSL has to decrease its price
of products. Since, cost conscious customers always go for a brand that serves
his purpose at a minimum cost.
Yes
No
14
11
Interpretation
Most of the customers find difficulties while dealing with Bokaro
Steel Plant. Most of them find lack of single window system while dealing with
BSL. This leads to slow process of trading. Some customers also want better
customer service.
Yes
No
22
Interpretation
Most of the customers believe that the current selling methods
adopted by Bokaro Steel Plant are good. Only 3 customers found better selling
methods adopted by other steel plants.
Complain registered
Yes
No
11
14
Interpretation
Most of the customers do not complain about the problem they
faced while trading with BSL because they dont feel management will be
serious about their problems. So, customers confidence towards management
of BSL should be increased.
Complaints executed
Yes
No
Interpretation
Only 11 customers said that they registered their complaints about
the problem they faced in trading with BSL. Out of which 7 said that their
problems are executed. So, BSL is friendlier towards customers.
Benzene
9
toluene
5
Anthracene oil
2
S.B.oil
3
L.S. Naptha
Ammonium sulphate
9
Interpretation
To get the information about types of by-products purchased by
customers is also very important. Since, each customer buys different types of
by-products. Most of the customers buy more than one by-products.
2years-4years
above 4 years
16
Interpretation
Of the customers of Bokaro steel plant secondary and by-products
most of them are trading with more than 4years. This may be the reason for the
large customer base of BSL in secondary and by-products market.
e-auction
21
Interpretation
Most of the customers prefer e-auction because it is easy and
fast method for trading unlike other methods. Customers get their value for
the time they spent in trading in e-auction
Mode of transportation
Railways
7
roadways
18
Interpretation
From the survey it was found that most of the customers of BSL
are using roadways for transporting materials from Bokaro steel plant
because most of them are purchasing secondary steel and that are mostly
transported through roadways in local market.
Price
15
Availability
9
Transportation
7
discount structure
4
Interpretation
The main benefits customers receive while trading with Bokaro steel
plant is quality of secondary and by-products. Availability of products is 2nd
major benefits that are received by customers. Most of them receive a
combination of benefits from BSL.
No
13
Somewhat
5
Interpretation
The above graph shows the satisfaction level of customers
regarding volume limit for the purchase of secondary and by-products. Most of
the customers are not satisfied with the volume limit of products.
Bad
2
Excellent
1
Interpretation
This indicated the experience of customers with the marketing
personnel while trading with BSL. Most of the customers are having good
experience with the marketing personnel. Few customers are having bad
experience with marketing personnel.
dissatisfied
4
neutral
5
satisfied
13
highly satisfied
1
Interference
The accessibility of the information about the bids to be taken place is
very important because it increases the number of customers in the bids and
hence market becomes competitive. Most of the customers are satisfied about
the accessibility of the information.
bad
poor
20
excellent
1
Interpretation
From the survey it was found that most of the customers of Bokaro
steel plant are happy with the order handling procedures of Bokaro steel plant.
Since, there is a lot of competition in market for selling of secondary and byproducts. So, for being in the competition with other steel plants BSL is having
good order handling procedure and that will make his customers happy.
no
12
13
Interpretation
Price is one of the most important factors which customers are
taking in consideration while purchasing products. From the survey it was found
that customers are not happy with the price of the product. Hence, BSL should
decrease its price of the products.
no
21
Interpretation
The customers of secondary and by-products in Bokaro steel plant
are satisfied with the current selling methods of Bokaro steel plant. Some of the
customers are not satisfied with the current selling methods of BSL but they are
not able to give proper reason for their dissatisfaction.
dissatisfied
3
neutral
satisfied
highly satisfied
10
Interpretation
The above graph shows the experience of customers while dealing
with Bokaro steel plant. Most of the customers said that they are satisfied with
the experience while trading with BSL. But, there are a large number of
customers who also said that they are not happy with BSL.
CHAPTER 5
SUMMARY OF
FINDINGS
SUMMARY OF FINDINGS
1. Most of the customers belong to the category of manufacturers i.e.
they are using secondary and by-products of BSL as a raw material.
2. Majority of customers prefer to purchase secondary and by-products
from Bokaro steel Plant because of local market and quality but they
find price is higher compared to the quality.
3. Majority of the customers are satisfied with the quality of the
secondary and by-products of BSL and that is a big advantage for
BSL.
4. Of the four major types of products produced by BSL in Secondary
and by-products division, most of the customers are purchasing
secondary steel and by-products from BSL.
5. Most of the customers deal with Bokaro steel plant and TATA steel for
purchase of secondary and by-products.
6. Low price, better service and high quality are the major concerns that
the customers looks into for preferring a particular steel plant for
secondary and by-products.
7. Majority of customers responded that other steel plants are providing
secondary and by-products at a lower rate.
8. Most of the Customers responded that they find difficulties while
dealing with BSL.
16.Most of the customers responded that they are satisfied with the
information provided by BSL about the bids to be taken place but few
customers are also not happy with the information provided by BSL.
17.Majority of the customers responded that they are happy with the
order handling procedures of BSL.
18.Majority of the customers responded that that they are satisfied with
the overall experience while dealing with Bokaro Steel Plant.
CHAPTER 6
CONCLUSIONS
AND
RECOMMENDATION
secondary and by-products available in the market. Since, customers are now
conscious about cost cutting measures so they other brands over BSL.
Local market is one of the most important advantages than BSL is
enjoying over a period of time but, due to set up of new steel plants in nearby
places few years from now it will no longer be an advantage for BSL. So, BSL
should have to work on decreasing the price of its secondary and by-products
and also increase its quality.
Since, from the survey it was found that most of the customers are
purchasing secondary steel and by-products from BSL. So, BSL should have to
work on the increase of production of these products and also decrease the price
of those products to be competitive in the market.
Most of the customers are also purchasing secondary and by-products
from TATA steel because of the lower price and easy method of purchase
although TATA steel is far from Bokaro district because of better service. So,
Bokaro steel plant should have to work on to provide better service for
customers.
Since, majority of customers dont register complain about the problem
they faced during trading although most of the problem that are registered got
executed. Hence, BSL should have to work on to improve confidence of
customers on them.
Benzene, Toluene and Ammonium sulphate are having highest
consumption among by-products. So, products of mainly these by-products
have to be increased.
The BSL secondary and by-products customers are having faith in the
quality of these products. So, this should be maintained at any cost and BSL
should have to decrease the price of its secondary and by-products to maintain
its customer base.
CHAPTER 7
BIBLIOGRAPHY
BIBLIOGRAPHY
Books referred
Websites referred
www.sail.co.in
www.metaljunction.com
CHAPTER 8
ANNEXURE
QUESTIONNAIRE
1. In which category of customer do you belong?
a) Trader
b) Manufacturer
c) Processor
d) Others
2. Why do you prefer to purchase from BSL?
a) Quality
b) Cheap transportation
c) Local market
d) price
3. Are you satisfied with the quality of the product?
a) yes
b) no
4. If No then what would be the reason for such a decision?
a) High cost
b) Low quality
c) Poor distribution
d) Others(please specify)
b) High quality
c) Better service
d) Better selling methods
e) Others. (please specify)
8. Do you find any difference in price of secondary and by-products of BSL
with other plants that you are dealing with?
a) Yes
b) No
9. Have you faced any difficulties while dealing with the BSL?
a) Yes (Please specify the reason)
b) No
10.Do you find better selling methods adopted by other plants for selling of
secondary and by-products?
a) Yes.. (please name that method)
b) no
11.Did you complain about the problem faced?
a) Yes
b) No
c) S.B. Oil
d) Hard medium pitch
e) Extra hard pitch
f) L.S. Naphtha
g) Anthracene oil
h) Ammonium sulphate
14. Since when you are dealing with BSL?
a) Below 2 years
b) 2years-4 years
c) Above 4 years
15.What type of pricing method preferred by you while you are dealing with
the BSL?
a) Fixed price
b) E- auction
18.Does the volume limit of secondary products, for bidding, help satisfy
your needs?
Yes
No
Somewhat
Bad
Excellent
20.Overall how will you rate the accessibility about bids to be taken place?
(Rank on scale on 1-5 in which 1 means highly dissatisfied and 5 represents
highly satisfied)
Bad
Poor
Excellent
22.Are you satisfied with the price of the secondary and by-products?
a) Yes
b) No
23.Are you satisfied with the current selling methods of BSL?
a) Yes
b) No(please specify the reason)
24.Overall how will you rate your experience while dealing with the BSL?
(Rank on scale on 1-5 in which 1 means highly dissatisfied and 5 represents
highly satisfied)
ABBREVIATION
1. SAIL
2. TISCO
5. NMDC
6. RDCIS
7. CET
8. CPTI
9. MRD
10. BFGS