SAIL

-There is a little bit of SAIL in everybody's life

 Steel Authority of India Limited (SAIL) is an
Indian state-owned steel making company based in New Delhi, India .
It is a public sector undertaking, owned and operated by
the Government of India with an annual turnover of INR 44,452 Crore
(US$ 6.83 Billion) for fiscal year 2016-17. Incorporated on 24 January
1973, SAIL has 78,333 employees (as of 01-Jan-2018). With an annual
production of 14.38 million metric tons, SAIL is the largest steel
producer in India and one of the largest steel producers in the
world . The Hot Metal production capacity of the Company will further
increase and is expected to reach a level of 50 million tonnes per
annum by 2025. Shri P.K Singh is the current Chairman of SAIL.

SAIL operates and owns 5 integrated steel plants

at Bhilai, Rourkela, Durgapur, Bokaro and Burnpur(Asansol) and 3
special steel plants at Salem, Durgapur and Bhadravathi. It also owns
a Ferro Alloy plant at Chandrapur. As a part of its global ambition, the
company is undergoing a massive expansion and modernisation
programme involving upgrading and building new facilities with
emphasis on state of the art green technology. According to a recent
survey, SAIL is one of India's fastest growing Public Sector Units.
Besides, it has R&D centre for Iron & Steel (RDCIS), Centre for
Engineering and Technology (CET), Management Training Institute
(MTI) and SAIL Safety Organisation (SSO) located at Ranchi capital
of Jharkhand.
History
1959–1973
SAIL traces its origin to the Hindustan Steel Limited (HSL) which was
set up on 19 January 1954. 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.
A new steel company, Bokaro Steel Limited (Bokaro Steel Plant), was
incorporated on 29 January 1964 to construct and operate the steel
plant at Bokaro. 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 1.58 MT (1959–60) to 1.6 MT. The
second phase of Bhilai Steel Plant was completed in September 1967
after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT
phase of Rourkela – the Tandem Mill – was commissioned in February
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 total crude steel production capacity of HSL
was raised to 3.7 MT in 1968–69 and subsequently to 4 MT in 1972–
73.IISCO was taken over as a subsidiary in 1978 and later merged in
2006.
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 2 December 1972. On this basis the
concept of creating a holding company to manage inputs and outputs
under one roof was mooted. This led to the formation of The Steel
Authority of India Ltd. The company, incorporated on 24 January 1973
with an authorised capital of Rs2,000 crore (US$300 million), 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.

Major Units

1. Rourkela Steel Plant (RSP) in Odisha set up with German

collaboration (The first integrated steel plant in the Public Sector
in India, 1959)
2. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet
collaboration (1959)
3. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up
with British collaboration (1965)
4. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet
collaboration (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)
5. IISCO Steel Plant (ISP) at Burnpur in Asansol, West Bengal
Special Steel Plants
1. Alloy Steel Plant (ASP), Durgapur, West Bengal
2. Salem Steel Plant (SSP), Tamil Nadu
3. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi,
Karnataka

Ferro Alloy Plant

1. Chandrapur Ferro Alloy Plant (CFP) in Maharashtra

Refractory Plants - SAIL Refractory Unit

(SRU)
1. SAIL Refractory Unit, Bhandaridah in Jharkhand
2. SAIL Refractory Unit, Bhilai in Chhattisgarh
3. SAIL Refractory Unit, IFICO, Ramgarh in Jharkhand
4. SAIL Refractory Unit, Ranchi Road in Jharkhand

Central Units
1. Centre for Engineering and Technology
2. Research and Development Centre for Iron and Steel
3. SAIL Consultancy Organisation
4. Environment Management Division

Joint Ventures
NTPC SAIL Power Company Limited
(NSPCL)
A 50:50 joint venture between Steel Authority of India Ltd. (SAIL)
and National Thermal Power Corporation Ltd. (NTPC Ltd.). It
manages the captive power plants at Rourkela, Durgapur and Bhilai
with a combined capacity of 314 MW. It has installed additional
capacity by implementation of 500 MW (2 x 250 MW Units) power
plant at Bhilai. The commercial generation of Unit 1 commenced in
April 2009 and the Unit 2 in October 2009.
Mjunction services limited
mjunction services limited operating in Information Technology and the
Internet, is a 50:50 venture promoted by SAIL and TATA Steel.
Founded in February 2001, it is today not only India's largest
ecommerce company (having transacted worth over Rest. 900 billion
till date) but also runs the world's largest marketplace for steel.
Bhilai JP Cement Ltd
SAIL has incorporated a joint venture company with M/s Jaiprakash
Associates Ltd to set up a 2.2 MT slag based cement plant at Bhilai.
The company shall commence cement production at Bhilai by
March'2010, whereas clinker production at Satna shall start within
2009.
Bokaro JP Cement Ltd
SAIL has incorporated another joint venture company with M/s
JaiPrakash Associates Ltd to set up a 2.1 MT cement plant at
Bokaro utilising slag from BSL. The project implementation is
under progress with commencement of cement production
likely by July 2011. Bokaro Jaypee cement plant opening
ceremony was held by the chief minister of Jharkhand shri.
Arjun Munda in 2012.
SAIL&MOIL Ferro Alloys (Pvt.) Limited
SAIL has incorporated a joint venture company with Manganese Ore
(India) Ltd on 50:50 basis to produce ferro-manganese and silico-
manganese required for production of steel.

S&T Mining Company Pvt. Ltd

SAIL has incorporated a joint venture company with TATA Steel for
joint acquisition & development of coal blocks/mines. New indigenous
opportunities for coking coal development are being explored by the
Joint Venture company for securing coking coal supplies.

International Coal Ventures Pvt. Limited

International Coal Ventures Private Limited is a special purpose
vehicle set up to achieve the target of making steel PSUs self-reliant
in the area of coking coal, a joint venture company has been
incorporated composed of five central PSU companies i.e.
SAIL, Rashtriya Ispat Nigam Limited (RINL), Coal India Limited and
other target countries.
Development of mines through
outsourcing
SAIL has decided to outsource development of two virgin iron ore
mines at Rowghat in Chhattisgarh and Chiria in Jharkhand with an
annual capacity of 14 and 15 million tonnes, respectively. The
development of each mine is likely to cost between ₹1,000
crore (US$150 million) – 1,200 crore (US$180 million).
SAIL SCL Limited
A 50:50 JV with Government of Kerala where SAIL has management
control to revive the existing facilities at Steel Complex
Ltd, Calicut and also to set up, develop and manage a TMT rolling mill
of 65,000 MT capacity along with balancing facilities and auxiliaries.
International Coal Ventures Private
Limited
ICVL is a joint venture of five companies owned by the Indian
government. Aside from Steel Authority of India Limited, the other
venturers are Coal India, Rashtriya Ispat Nigam, National Minerals
Development Corporation and National Thermal Power Corporation.
ICVL acquired a 65 percent stake in the Benga coal mine from the Rio
Tinto Group in July 2014.
SAIL RITES Bengal Alloy Casting Pvt.
Limited
SAIL has signed a 50:50 joint venture with Burn Standard Company
Limited for setting up a wagon components manufacturing facility at
Jellingham in West Bengal's Purba Medinipur district. The total
investment for this project would be ₹210 crore (US$31 million)
in West Bengal, and commercial production would begin from 2014. It
will manufacture, sell, market, distribute and export railway wagons,
including high-end specialised wagons, wagon prototypes, fabricated
components/parts of railway vehicles, rehabilitation of industrial
locomotives, etc., for the domestic market.

Ownership and management

The Government of India owns about 75% of SAIL's equity and
retains voting control of the Company. However, SAIL, by virtue of
its Maharatna status, enjoys significant operational and financial
autonomy.
Mr. P.K Singh is the current chairman of SAIL. [17] Prior to this, P.K
Singh took over as the Chief Executive Officer (CEO) of Durgapur
Steel Plant in 2012. Earlier in July 2015, he was given the additional
charge of CEO of IISCO Steel Plant, Burnpur (West Bengal). An
alumnus of IIT-Roorkee, he started his career in SAIL at its Bokaro
Steel Plant in 1980. Singh also worked in IISCO Steel Plant, Durgapur
Steel Plant, Bokaro Steel Plant and Bhilai Steel Plant.

Operations
As of 31-Mar-2015, SAIL has 93,352 employees, as compared to
170,368 (as of 31-Mar-2002). There has been a continuous reduction
of headcount over the past few years due to enhanced productivity
and rationalised manpower.
The total requirement of its main raw material, iron ore, is met through
its captive mines. To meet its growing requirement, capacities of
existing iron ore mines are being expanded and new iron ore mines
are being developed. In addition, new iron ore deposits in the states
of Rajasthan, Chhattisgarh, Madhya
Pradesh, Maharashtra, Odisha and Karnataka are being explored.
Around 24% of its coking coal requirements are met from domestic
sources, the remaining through imports. For improving coking coal
security, the Company is also making efforts for development of new
coking coal blocks at Tasra and Sitanalla.
SAIL produced 13.9 million tonnes of crude steel by operating at
103% of its installed capacity, which is an increase of 1% over the
previous year. It also generated 710 MW of electricity during FY2014-
15.

Achievements
AWARDS & ACCOLADES WON DURING THE YEAR
Company Level
• Steel Authority of India Limited won 7 Prime Minister's Shram
Awards (involving 26 employees) for the year 2015.
• SAIL has won 10 Vishwakarma Rashtriya Puraskar Awards
(involving 42 employees) for the performance year 2015.
 • SAIL has won Gold Trophy of "SCOPE Meritorious Award for Best
Practices in Human Resource Management" for the year 2014-15.
• SAIL has won Golden Peacock Award for Corporate Governance, by
the Institute of Directors, India, for the year 2016.
• SAIL bagged the Governance Now PSU Award 2016 under the
award category 'Relative Growth & Adaptation'.
• SAIL was awarded the Ispat Rajbhasha Trophy for the year 2014-15
for SAIL's best official language implementation. Bhilai Steel Plant
• CII-Exim Bank Business Excellence Award 2016 organized by the
CII Institute of Quality.
• Excellence Award in the category of Integrated Steel Plants under
Iron & Steel Sector for the year 2015- 16, in the State Level
Sustainable Energy Awards-2016 by Chhattisgarh State Renewable
Energy Development Agency (CREDA).
• Vayoshreshtha Samman for the "Best Public Sector Organization in
Promoting the Well Being and Welfare of Senior Citizens" on the
occasion of International Day for Older Persons at VigyanBhawan,
New Delhi on 1st October, 2016.
• NARAKAS Bhilai-Durg bagged the "Madhya
KshetriyaPrathamPuraskar" for the year 2015-16.
• Best Chapter Award for QCFI Bhilai Chapter in the event "NCQC-
2016" held in Raipur for significant contribution towards Quality
propagation.
• 17 Quality Circle Teams won awards (15 Par Excellence and 2
Excellence) from QCFI during their 30th National Convention on
Quality Concepts. Durgapur Steel Plant
• 10 Quality Circle Teams won awards (8 Par Excellence and 2
Excellence) from QCFI during their 30th National Convention on
Quality Concepts. Rourkela Steel Plant
 • CII EXIM Bank Business Excellence Award for Strong Commitment
to Excellence for the year 2015-16.
• Coal & Coke Zone and Steel and CCM Zone bagged 'Zero Fatality'
awards for the years 2015 and 2016 respectively from the Joint
Committee on Safety, Health & Environment in the Steel Industry
(JCSSI).
• 8 Quality Circle Teams won awards (6 Par Excellence and 2
Excellence) from QCFI during their 30th National Convention on
Quality Concepts. Bokaro Steel Plant
• Golden Peacock HR Excellence Award for the year 2016
• Gold Award in Training Excellence Category at the 6th Annual
Greentech HR Award for the year 2015- 16.
• Energy Management Department, First Prize in CII (ER) Productivity
Awards 2016.
• 6 Quality Circle Teams won awards (1 Par Excellence and 5
Excellence) from QCFI during their 30th National Convention on
Quality Concepts. Visvesvaraya Iron & Steel Plant
• Ispat Suraksha Puraskar for 'No fatal accident occurred during the
Calendar Years 2015 & 2016 under Scheme-II, Group (B) (Special
Steel Plant)' by Joint Committee on Safety, Health & Environment in
the Steel Industry.
• Ispat Suraksha Puraskar for 'No fatal accident occurred involving
Contract Labour during the Calendar Years 2015 & 2016 under
Scheme-II, Group (B) (Special Steel Plant)'by Joint Committee on
Safety, Health & Environment in the Steel Industry. Salem Steel Plant
• Ispat Suraksha Puraskar for 'No fatal accident' during the Calendar
Year 2016 under Scheme-II, Group (B) (Special Steel Plant).
• Ispat Suraksha Puraskar for 'No fatal accident' involving Contract
Labour during the Calendar Year 2016 under Scheme-IV Group (B)
(Special Steel Plant).
 • National Award for the Empowerment of Persons with Disabilities-
2016. (Best Employee with Disabilities under Hearing Impairment
Category) from Hon'ble President of India on 03.12.2016 at Vigyan
Bhawan, New Delhi. Raw Materials Division
• 8 Quality Circle Teams won awards (5 Par Excellence and 3
Excellence) from QCFI during their 30th National Convention on
Quality Concepts. Research & Development Centre for Iron & Steel
• National G-cube (Good Green Governance) Award 2016 at Delhi on
Earth Day, 22nd April, 2016.

Future Plans
SAIL, is in the process of modernising and expanding its production
units, raw material resources and other facilities to maintain its
dominant position in the Indian steel market.On 25 May 2012, Steel
Authority of India Limited entered into a Memorandum of
Understanding with the Government of West Bengal and Burn
Standard Company Ltd. for setting up of a Railway Wagon factory of
approximately ₹210 crore (US$31 million). This project will create an
approximate 75,300 jobs.
The company also looking to establish one full capacity integrated
plant in Andhra Pradesh or Telangana and surveying the possibilities
to set up the plant. The plant, which was proposed to be the first steel
plant of such scale in the state, was estimated to get an investment of
Rest. 4,400 crore.
- DURGAPUR STEEL PLANT (DSP)
 DURGAPUR STEEL PLANT- DSP

Durgapur steel plant was set up in the late fifties with an initial
production capacity of 1 MPTA (million ton per annum) crude steel
which was progressively increased to 1.8 MTPA during the last
modernization in nineties with the prime objective of achieving higher
level of production, improvement in productivity and quality,
conservation of energy, reduction in cost of production & minimization
of environmental pollution.
DSP is currently implementing its Modernisation & Expansion Plan
(Phase-I) with main objectives:
 Conversion of available semis into value added rolled products
 Near 100% concast production with phasing out of top pouring
ingot- Blooming Mill route
 Sustenance/De-bottlenecking of existing facilities to overcome
present constraints
 Capacity of the plant will increase in hot metal at 2.40 MTPA,
Crude Steel at 2.20 MTPA and Saleable Steel at 2.12 MTPA.
Plant is equipped with CO-BF-BOF process of steel making. New
facilities have been added after the last modernization in nineties –
two new rebuilt coke oven batteries, CDI in Blast Furnaces, three
Ladle Furnaces, one Bloom caster, one bloom-cum-round caster and
a new Medium Structural Mill. Plant is poised for crude steel
production almost 100% through concast route.
Unique feature of this plant is its Wheel & Axle Plant for making forged
wheels and axles catering to Indian Railways. Wheels are tested in
International Test House and found of higher standard. Over the years
plant has developed various types of wheels as per need of Railways.
DSP is certified under the ISO 9001: 2008 standard of Quality
Management System (QMS), ISO 14001: 2004 standard of
Environment Management System (EMS), OHSAS 18001: 2007, SA
8000: 2008, ISO 27001:2013 Information Security Management
System (ISMS) and ISO 50001:2011 Energy management System.
The plant is performing beyond its rated capacities consistently and
the production and TE parameters are at best ever levels.
Location:
Situated at a distance of 158 km from Calcutta, its geographical
location is defined as 23. 27' North and 88. 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.
Township:
The Durgapur Steel Plant Township is spread over a sprawling 40 sq.
kms and has more than 25,000 dwelling units. And it has housing
facilities for the employees of DSP, ASP and other business
associates. The other amenities include schools, both primary and
secondary, a 640 bed hospital with modern medical facilities, the
picturesque park, a number of cultural centres, a stadium with a sitting
capacity of 15,000, etc.
Contribution to the region's development :
Over the years, DSP has contributed in a major way which has
produced social, environmental and economic benefits to the
communities in which it operates. CSR projects are carried out.
Durgapur Steel Plant is also playing major role in encouraging and
developing small-scale industries in the region.
WHAT IS MARKETING?
Marketing:
Is the study and management of exchange relationships. Marketing is
used to create, keep and satisfy the customer. With the customer as
the focus of its activities, it can be concluded that Marketing is one of
the premier components of Business Management - the other being.
Marketing practice tended to be seen as a creative industry in the
past, which included advertising, distribution and selling. However,
because the academic study of marketing makes extensive use
of social
sciences, psychology, sociology, mathematics, economics, anthropolo
gy and neuroscience, the profession is now widely recognized as a
science, allowing numerous universities to offer Master-of-Science
(MSc) programs.
The process of marketing is that of bringing a product to market in
which includes these steps: broad market research; market targeting
and market segmentation; determining distribution, pricing and
promotion strategies; developing a communications strategy;
budgeting; and visioning long-term market development goals. Many
parts of the marketing process (e.g. product design, art director, brand
management, advertising, copywriting etc.) involve use of the creative
arts.

Concept
The 'marketing concept' proposes that in order to satisfy the
organizational objectives, an organization should anticipate the needs
and wants of potential consumers and satisfy them more effectively
than its competitors.
Marketing and Marketing Concepts are directly related.
 Given the centrality of customer needs and wants in marketing, a rich
understanding of these concepts is essential:
Needs: Something necessary for people to live a healthy, stable and
safe life. When needs remain unfulfilled, there is a clear adverse
outcome: a dysfunction or death. Needs can be objective and
physical, such as the need for food, water and shelter; or subjective
and psychological, such as the need to belong to a family or social
group and the need for self-esteem.
Wants: Something that is desired, wished for or aspired to.Wants
are not essential for basic survival and are often shaped by culture or
peer-groups.
Demands: When needs and wants are backed by the ability to pay,
they have the potential to become economic demands.
Marketing research, conducted for the purpose of new product
development or product improvement, is often concerned with identifying
the consumer's unmet needs. Customer needs are central to market
segmentation which is concerned with dividing markets into distinct groups
of buyers on the basis of "distinct needs, characteristics, or behaviors who
might require separate products or marketing mixes." Needs-based
segmentation (also known as benefit segmentation) "places the customers'
desires at the forefront of how a company designs and markets products or
services." Although needs-based segmentation is difficult to do in practice,
has been proved to be one of the most effective ways to segment a
market. In addition, a great deal of advertising and promotion is designed
to show how a given product's benefits meet the customer's needs, wants
or expectations in a unique way.
SAIL’S MARKETING SETUP:

Central Marketing Organisation

SAIL's marketing set-up, the ISO 9001:2015 certified Central
Marketing Organisation, is India's largest industrial marketing set-up.
CMO is primarily responsible for marketing of steel items, including
carbon, alloy and special steel products, as well as stainless steel
produced by the steel plants of SAIL.
Backed by a strong ERP system, CMO's network of 37 Branch Sales
Offices, 46 Warehouses (25 Departmental & 21 CA yards) equipped
with mechanised handling systems, and 10 operational Customer
Contact Offices function in a synchronised manner to deliver quality
SAIL steel to every corner of the country.
Even as SAIL strengthens India by participating in vital projects of
national importance, it is working towards empowering the small steel
consumer in remote areas of the country by making SAIL steel
available through the company’s ever-widening dealer network. Apna
SAIL shops across the country have emerged as the preferred
destination for small consumers of quality steel.
To ensure further penetration of quality steel products in the country’s
hinterland, SAIL has introduced a Rural Dealership Scheme. Already,
steel rebars and roofing materials being provided by SAIL’s rural
dealers in various blocks and talukas of the country are adding
contemporary dimensions to rural lifestyles. This strategic initiative is
also important in view of the fact that rural consumption of steel in the
country is projected to grow manifold. SAIL has the country's largest
steel retail network today, giving shape to the company’s long-term
objective of providing a countrywide framework for ease of
procurement and supply of essential steel items for the common
Indian.
Extensive customer contact along with product and segment
specialisation, close monitoring of order servicing and feedback
analysis through a Customer Satisfaction Index are established norms
at CMO. The customer-friendly approach of CMO is backed by
practical after-sales service. Through the process of Key Account
Management, CMO provides single- window service to key customers
across the country for every business transaction from enquiry to
order booking, order tracking to delivery, and even consultancy and
after-sales service.
MARKETING
DEPARTMENT
OVERVIEW OF
SAIL’S
DURGAPUR
STEEL PLANT:
 FUNCTIONS AND RESPONSIBILITIES
OF MARKETING DEPARTMENT

• Generating revenue through Disposal/Sales of

 By Products (Coal Chemicals & BFG Slag)
 Saleable Steel (Assorted Blooms & Billets, TMT Backends
<5.5m)
 Steel Scrap(Mixed Str. Scrap and other scrap arising)
 Iron Scrap (PCM Scrap & UPIS from Slag Bank)
 Other Waste Products
 Idle Assets & Misc. Stores Items
• Supporting ASP by supplying steel scrap & Misc. items on IPT.
• Facilitate timely disposal of various items which is necessary for
Plant operations.
• Contribute towards housekeeping & cleanliness in Plant.
 MATERIAL MANAGEMENT

Purchase Store Marketing

MARKETING

GM

DGM

SR. AGM
MANAGER

JR.
JR.
MANAGER
MANAGER
MODES OF SALE AT MARKETING DEPT.

Materials are generally sold through the following three modes as

per guidelines issued by Corporate Materials Management Group
(CMMG):
1. E-auction Sale
2. Fixed Price Sale
3. Tender Sale (sealed bids)
4. Inter-Plant Transfer
5. MOU(memorandum of understanding)

DEFINING THE PROCESSES

1. For sales through e-auctions, Marketing Department prepares

an Auction Catalogue for every auction containing the list of
items available for sale along with respective quantities.
The Catalogue is published on SAIL and e-auction service
provider’s website and also on the Notice board as per schedule.

2. For sales through Fixed Price mode, Price Circulars indicating

ruling prices are put up on Notice Board. In case of Fixed Price
mode, purchase requisitions are received on First Come First
 Serve Basis. Different committees have been appointed by the
Chief Executive Officer to recommend the reserve/fixed prices
of various items for sale through tender/e-auction/fixed price
modes. The Pricing Committee recommends the prices of
various items for sale on fixed price mode to the Chief Executive
Officer, DSP for his approval.

3. In the case of Tender/ e-Auction, highest bids (H1 Bids) are

reviewed by the Tender/Auction Committee. Based on the
recommendations of the committee, H1 bids are approved by
the Chief Executive Officer, DSP for the sale.

4. Materials are also supplied to sister Plants on Inter-

PlantTransfer basis (book-adjustment).For example:
ASP to DSP or DSP to BSL to BSP etc.

5. A memorandum of understanding (MOU) is a type of

agreement between two (bilateral) or more (multilateral) parties.
It expresses a convergence of will between the parties,
indicating an intended common line of action. It is often used in
cases where parties either do not imply a legal commitment or
in situations where the parties cannot create a legally
enforceable agreement. It is a more formal alternative to
a gentlemen's agreement.DSP has long term agreement with
Birla Cement.

MAJOR ITEM CATEGORIES

 • Coal Chemicals: Crude Coal Tar, Crude Tar Partially Distilled
(CTPD), Unprocessed Crude Coal Tar, NG Benzene, Ammonium
Sulphate (Crystal), etc.
• Secondary Steel: Assorted CCP Items (Billets & Blooms),
Mixed Structural Scrap, TMT Backends, Round Ingot, etc.
• Iron Scrap: PCM items, Unprocessed Iron Scrap (UPIS), etc.
• Steel Scrap: Cobbles & Cuttings, Steel Turning & Boring, Mould
Splashings, Rejected Wheels & Axles, etc.
• Miscellaneous items: Blast Furnace Granulated Slag, B.F.
Slag, Power Plant Cinder, Flue Dust, Lime fines, Refractory
Bricks, etc.
• Idle Assets/Miscellaneous Scrap/Obsolete Spares

PRODUCTS
SR. NO. ITEM DESCRIPTION – COAL CHEMICALS

1. AMMONIUM SULPHATE (CRYSTAL)

2. BENZENE (NITRATION GR)

3. CRUDE COAL TAR

4. CRUDE TAR PARTIALLY DISTILLED

5. HEAVY CREOSOTE OIL

6. IG TOLUENE

7. LIGHT OIL

8. NAPHTHALENE FLAKES

9. UNPROCESSED CRUDE COAL TAR

10. CRUDE BENZOL

SR. NO. ITEM DESCRIPTION – MISCELLANEOUS ITEMS

 1. B F SLAG
2. BF SLAG GRANULATED
3. FLUE DUST
4. LIME FINES
5. LIME FINES 0-10MM FROM UNDERSIZE BUNKER
6. LIQUID NITROGEN
7. MIXED COKE 0-200MM
8. MOLTEN BF SLAG
9. OXYGEN GAS THROUGH PIPELINE
10. POWER PLANT CINDER
11. U/R B/BATS AL SI BRICKS 30-42% AL203
12. U/R BROKEN MAG CARBON (MGO-C) MGT BRICKS
13. USED & SCRAPPED SLIDE GATE REFR PLATES
14. USED BRICKS/BATS HIGH ALUMINA SILICATE
15. WASTE GAS CLEANING DUST
16. FERROUS SCRAP (I&S) (SB) 0-10MM
17. U/R SCRAPPED CARBON BLOCK

SR. NO. ITEM DESCRIPTION – STEEL SCRAP

1. STEEL TURNING AND BORING

2. MIXED STRUCTURAL SCRAP

3. MM ROLLS SPOILS SHEAR CUT

4. SCR/REJ ALLOY FORGE FULL STEEL ROLL >15T

5. SCRAP HAMMER/FORK ENDROLLS STEEL FULL < 10T

6. SCRAPPED ROLLS ASG BROKEN BELOW 10T

7. SCRAPPED ROLLS ASG FULL BELOW 10T

8. SCRAPPED ROLLS STEEL BROKEN BELOW 10T

9. SCRAPPED ROLLS STEEL FULL BELOW 10T

 APP AND ACTUAL SALES TARGET

2017-18

Qty. (MT) Value (RS .Lakh)

APP Actual %full APP Actual

1 COAL CHEMICALS 68475 68403 100 14822.56 17245.

2 SALEABLE STEEL 26000 23426 90 7171.92 7243.

3 STEEL SCRAP(Arising) 16000 24539 153 3577.68 7288.

4 IRON SCRAP 21101 23702 112 3543.90 4479.

5 MISCELLANEOUS ITEMS* 762125 816649 107 5529.17 7410.

IDLE ASSETS/Obsolete items

6 - 3573 - 5300.00 985.
etc.

7 IPT Items 19110 19309 101 4937.49 4039.

TOTAL 912811 979601 107 44882.72 48693.

APP FULFILLMENT COMPARISON

CHALLENGES

• Falling NSR of Coal Chemicals due to lower crude oil prices

• Poor domestic steel market scenario due to cheaper imports
which has lower the NSR for secondary steel items
• Political turmoil in Nepal, our major BFG Slag buyer, has led to
huge stock of BFG Slag and lowered NSR for disposal.
 • Poor domestic steel market scenario due to cheaper imports
resulting in lower NSR.
• Limited Demand for Assorted Blooms in local market.
• Slow Rate of Disposal of Assorted Billets from CCP due to
AIWIB mode of delivery
RECENT HIGHLIGHTS

• Successfully e-auctioned BF-1 fetching 11.07 Cr as H-1 bid,

against which lifting is in process.
• Tender/Auction of Slag Bank contract(2016-19) fetching Rest.
11500/t for 45000 t of UPIS and Rest. 555/t for 625000 t of 0-20
mm Ferrous Fraction.
• Renewal of MOU between DSP and Birla Corporation Ltd. for 33
years for supply of 4 lakh MT(approx) of BFG Slag and Molten Slag
is almost in completion phase.
• New material added for sale: Crude Benzol, ASSORTED MIXED
STRUCTURAL 1.5M TO <5.5M, PROCESSED SPOUT JAM.
• 44 new customers have been added since April’15-July’16.
• Among all sister plants, DSP has highest price of BFG Slag (Rs.
700/t), Flue Dust (Rs. 181/t), Ammonium Sulphate (Rs. 11500/t)and
Lime Fines (Rs. 4200/t).
 THREE YEARS SALES

YEAR APP ACTUAL % ACHIEVEMENT

2015-16 447.83 381.44 85%

2016-17 396.19 342.01 86%

2017-18 376.84 360.05 96%

 CUSTOMER FEEDBACK MECHANISM
• Quarterly Customer Feedbacks through Customer Feedback Form
• Regular interaction with the authorized representatives of the
customers
• Pre-auction and post-auction interaction with customers
• Feedback from customers via. M/s mjunction services limited
• Regular surveys through vocational trainees
• Customer Meet

Corrective actions based on Customer

Feedback Forms
• Through the customer feedback, it was found that customers
were dissatisfied with the time taken for issuance of sale offer
and delay in information regarding bid acceptance.
• Action: Process initiatives were taken and now customers get an
automated email as soon as the bids are accepted.
• Action: Customers also get sale offers online via. System
generated email that is sent to their registered email ids.
Surveys by vocational trainees
• Every year, a number of vacational trainees conduct surveys for
various products/by-products as a part of their curriculum.
• These surveys help in identifying the problems faced by the
customers with respect to DSP’s secondary products and
thereby taking corrective actions.

Customer Meets
• A Customer Meet was organized for the customers of tar and
benzol products on 26th September 2012
• Their invaluable suggestions and feedback helped us in making
process improvements.
• Payment and receipts through online fund transfer mode
(RTGS/NEFT etc.) was implemented based on customer
feedback
• Further corrective actions are: reduction in permanent EMD
structure, provision of joint testing of material, provision of one
time LOI for customers with permanent EMD, etc.

• Customer Satisfaction Index

• Plant Marketing Department sells Secondary Products on a ‘no-
complaint’ basis.
• Sales are based on arisings and scrap generations.
• Calculation of Customer Satisfaction Index (CSI) was introduced
in Marketing Department in 2012-13 with the objective of
improving sales services.
 • Customer feedback is collected through the Customer Feedback
Forms on a quarterly basis.
• The feedback form used in 2012-13 has been reviewed and
modified to increase the number of parameters as well as the
rating scale and it has been implemented from the first quarter of
2013-1

CUSTOMER SATISFACTION SURVEY &

CUSTOMER SATISFACTION INDEX (CSI)
1. TARGET FOR THE YEAR 2017-18
LEVEL 1: 90% (9 OUT OF 10)
LEVEL 2: 81% (8.1 OUT OF 10)
LEVEL 3: 72% (7.2 OUT OF 10)
2. WEIGHTAGE FOR CSI CALCULATION
SERVICES SPECIFIC TO MARKETING DEPARTMENT: 60%
(ALL CATEGORIES)
MATERIAL QUALITY & PACKAGING: 20% (ONLY FOR
AMMONIUM SULPHATE)
PERFORMANCE OF THE AUCTIONEER: 10% (FOR
CATEGORIES WHERE MATERIAL IS SOLD THROUGH
ONLINE FORWARD AUCTION)
SUPPORT SERVICES: 10% (AMMONIUM SULPHATE,
SECONDARY STEEL & COAL CHEMICALS)
SUPPORT SERVICES: 20% (MISCELLANEOUS ITEMS)
 COMMERCIAL POLICIES & TERMS: 20% (SECONDARY
STEEL, COAL CHEMICALS & MISCELLANEOUS ITEMS)
COMMERCIAL POLICIES & TERMS: 10% (AMMONIUM
SULPHATE)
3. CUSTOMER FEEDBACK FORMS
PLEASE REFER ANNEXURE A, B, C AND D FOR THE
CUSTOMER FEEDBACK FORMS TO BE ADMINISTERED ON
A HALF YEARLY BASIS
ANNEXURE A: CUSTOMER FEEDBACK FORM FOR
AMMONIUM SULPHATE
ANNEXURE B: CUSTOMER FEEDBACK FORM FOR COAL
CHEMICALS
ANNEXURE C: CUSTOMER FEEDBACK FORM FOR
SECONDARY STEEL
ANNEXURE D: CUSTOMER FEEDBACK FORM FOR
MISCELLANEOUS ITEMS

CUSTOMER SATISFACTION SURVEY &

CUSTOMER SATISFACTION INDEX (CSI)
2017-18 (Apr’17 – Mar’18)
1. TARGET FOR THE YEAR 2017-18
LEVEL 1: 90% (9 OUT OF 10)
LEVEL 2: 81% (8.1 OUT OF 10)
LEVEL 3: 72% (7.2 OUT OF 10)
2. CATEGORY WISE ACHIEVEMENT 2017-18
AMMONIUM SULPHATE: 9.76 OUT OF 10 (97.6%)
COAL CHEMICALS: 9.68 OUT OF 10 (96.8%)
SECONDARY STEEL: 9.67 OUT OF 10 (96.7%)
MISCELLANEOUS ITEMS: 9.74 OUT OF 10 (97.4%)
3. CSI FOR 2017-18
OVERALL CSI FOR H-1 OF 2017-18: 9.71 OUT OF 10 (97.1%)
OVERALL CSI (2017-2018)

Items Category H1 H2 2017-

18

Ammonium 97.9% 97.3% 97.6%

Sulphate

Coal Chemicals 96.9% 96.7% 96.8%

Secondary 96.4% 97.0% 96.7%

Steel/Iron

Misc Items 96.8% 97.9% 97.4%

Total 97.0 97.2 97.1%

% %