INTRODUCTION –

Coal India Limited (CIL) is an Indian government owned coal mining and refining
corporation. It is under the ownership Ministry of coal, government of India,
headquartered Kolkata, West Bengal India. It is the largest coal-producing company in
the world and Public sector undertaking and is also the seventh largest employer in
India with nearly 272,000 employees.

The company contributes around 82% to the total coal production in India. It produced 554.14
million tonnes of raw coal in 2016–17 an increase from its earlier production of 494.24
million tonnes of coal FY 2014–15 and earned revenues of ₹95,435 crore (US$13 billion from sale
of coal in the same financial year. In April 2011, CIL was conferred the maharatna status by
the government of India, making it one of the seven with that status.

Objectives of Study:

• Analyzing the development and management of various product lines of coal India limited.
• Learning about various advertising and sales promotion strategies and efforts of coal India
limited.
• Understanding the channels and intermediaries of coal India Limited
• Learning about the territories of Coal India limited
• To understand the overall marketing Efforts of coal India Limited.

Organisation Structure

The Secretariat of Ministry of Coal is headed by a Secretary who

Is assisted by one Additional Secretary, five Joint Secretaries

(including the Financial Advisor and Nominated Authority) , one

Project Advisor, one Economic Advisor, twelve Directors/Deputy

Secretaries/Joint Directors, eleven Under Secretaries, twenty one

Section Officers, one Deputy Director, two Assistant Directors,

One Controller of Accounts, one Deputy Controller of Accounts,

Two Senior Accounts Officers and three Assistant Accounts

Officers and their supporting staff. Organisation chart of Ministry

Of Coal .

Subordinate office and Autonomous Organisation

The following subordinate office and autonomous organizations

Are under the administrative control of Ministry of Coal –

(i) Office of the Coal Controller’s Organisation (CCO) – a

Subordinate office.

(ii) Coal Mines Provident Fund Organisation (CMPFO) – an

Autonomous body.

Products OF coal India Limited -

COKING COAL :
These coals, when heated in the absence of air, form coherent beads, free from volatiles,
with strong and porous mass, called coke.
These have coking properties
Mainly used in steel making and metallurgical industries
Also used for hard coke manufacturing

SEMI COKING COAL :

These coals, when heated in the absence of air, form coherent beads not strong enough
to be directly fed into the blast furnace. Such coals are blended with coking coal in
adequate proportion to make coke.
These have comparatively less coking properties than coking coal
Mainly used as blend-able coal in steel making, merchant coke manufacturing and other
metallurgical industries

NON-COKING COAL :
These are coals without coking properties.
Mainly used as thermal grade coal for power generation
Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing,
and for other heating purposes

WASHED AND BENEFICIATED COAL:

These coals have undergone the process of coal washing or coal beneficiation, resulting
in value addition of coal due to reduction in ash percentage.
Used in manufacturing of hard coke for steel making
Beneficiated and washed non-coking coal is used mainly for power generation
Beneficiated non-coking coal is used by cement, sponge iron and other industrial plants

MIDDLINGS :
Middlings are by-products of the three stage coal washing / beneficiation process, as a
fraction of feed raw coal.
Used for power generation
Also used by domestic fuel plants, brick manufacturing units, cement plants, industrial
plants, etc.

REJECTS :
Rejects are the products of coal beneficiation process after separation of cleans and / or
middlings, as a fraction of feed raw coal.
Used for Fluidized Bed Combustion (FBC) Boilers for power generation, road repairs,
briquette (domestic fuel) making, land filling, etc.
CIL COKE / LTC COKE :

CIL Coke / LTC Coke is a smokeless, environment friendly product of the Dankuni Coal
Complex, obtained through low temperature carbonisation.
Used in furnaces and kilns of industrial units
Also used as domestic fuel by halwais, hotels, etc.

COAL FINES / COKE FINES :

These are the screened fractions of feed raw coal and LTC coke / CIL Coke respectively,
obtained from the Dankuni Coal Complex and other coke oven plants.
Used in industrial furnaces as well as for domestic purposes

TAR / HEAVY OIL / LIGHT OIL / SOFT PITCH :

These are products from Dankuni Coal Complex using low temperature carbonisation of
non-coking coal in vertical retorts.
Used in furnaces and boilers of industrial plants as well as power houses, oil, dye,
pharmaceutical industries, etc.

Pricing strategy of Coal India Limited –

Coal India used to charge based on useful heat value pricing mechanism, but in an
attempt to revise its strategies it changed to a much profitable gross calorific value
based coal pricing.
And on an average the price of one tonne of coal is at 1,100+ rupees. Coal India also
uses differential pricing strategy. Here it charges a different price to regulated and
unregulated sectors in India. As part of this strategy Coal India charges nearly 20% more
to the unregulated sector than what it charges to the regulated sectors. All the prices it
charges include FOB. It also keeps in mind the price that is offered by the Chinese
players who are offering at a lower price. Even though Coal India is a public sector
company it takes very tough calls in regard to price and have no apprehensions in
increasing the price.

Advertising and sales promotion used by Coal India Limited –

Coal India mainly does B2B promotions and rightly so as its customer base is industries
across various domains. It gives advertisements in print and online platforms to reach
out to its customer base. As a part of its PR activities Coal India involves in many CSR
activities also. It had also sponsored the Hockey India League as a title sponsor and
spent around nearly 13 crores for this. Though they consider it a CSR activity to help
sports it is an exercise to reach more customers. Also its subsidiaries also involve in
individual promotional activities like, South Eastern Coal Fields Ltd. Also, Coal India
sponsored world hockey league. Coal India also received recognition and awards like
Rashtriya Khel Protsahan Puraskar (2015) for its contribution to developing sports at
grass roots level in India.
Channels and Intermediary of Coal India Limited –

Territory of Coal India Limited –

Coal India operates through 83 mining areas in 8 states of India. As on 1 April 2015, it
has 430 coal mines out of which 175 are open cast, 227 are underground and 28 are
mixed mines.[8] Production from open cast mines during FY 2014–15 was 92.91% of total
production of 494.24 MT.Underground mines contributed to 7.09% of production. CIL
further operates 15 coal washeries, out of which 12 are for coking coal and 3 are for non-
coking coal with 23.30 MTY and 13.50 MTY capacities respectively. CIL’s only Low
Temperature Carbonisation Plant of Dankuni Coal Complex is currently run on lease basis
by its subsidiary SECL. In addition to above, it also manages 200 other establishments
like workshops, hospitals, training institutes, mine-rescue setups, etc.
CIL produces coal through seven of its wholly owned subsidiaries. These are Eastern
Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited
(CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL),
Northern Coalfield Limited (NCL), and Mahanadi Coalfields Limited (MCL). Its 8 th wholly
owned subsidiary Central Mine Planning & Design Institute Limited (CMPDIL) provides
exploration, planning and technical support to all the 7 production subsidiaries. CMPDIL
also provides consulting services to third-party market clients in the field of exploration,
mining, allied engineering & testing, management-systems, training, etc. The North
Eastern Coalfields (NEC) and Dankuni Coal Complex (DCC) are owned directly by the
parent holding company of CIL. However, DCC has been leased to SECL since 1995.

CIL has two joint ventures –

International Coal Ventures Private Limited (ICVPL) was formed in 2009 for acquisition of
coking coal properties outside India. CIL holds 2⁄7 th share in paid up capital of ICVPL.
CIL-NTPC Urja Private Limited is a 50:50 JV between CIL and NTPC, formed in April 2010
for acquisition of coal blocks in India and abroad.