“A STUDY ON THE PRICING AND SALES STRATEGY OF SECONDARY AND BY-PRODUCTS AT SAIL (BOKARO)”

SUMMER PROJECT REPORT

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 by-

products 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

observe "pricing and sales strategy of secondary and by-products in BSL",

which is a unit of SAIL.

Bokaro Steel Plant recognizes that leadership is essential for survival in

competitive environment; Customer's satisfaction like quality is a journey and

not a destination. 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. While improved customer satisfaction is

necessary for ensuring prosperity of the company must also be recognized that

ability of the company to satisfy its customers would depend on its ability to

continuously improve its profit and growth.

The basic objective behind the study carried out by me is to study the major

contribution of Secondary product to total sales, 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 an employment in small scale

industries and developing the economy.

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. India’s 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

the construction of an integrated steelworks in Rourkela, Orissa was signed

between the Indian government and the German companies Fried Krupp und

Demag AG. The initial plan was an annual capacity of 500,000 tonnes, but this

was subsequently raised to 1 million tonnes. The capacity of Rourkela Steel

Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group, is

presently about 2 million tonnes. At a very early stage the former USSR and a

British consortium also showed an interest in establishing a modern steel

industry in India. This resulted in the Soviet-aided building of a steel mill with a

capacity of 1 million tonnes in Bhilai and the British-backed construction in

Durgapur of a foundry which also has a million tonne capacity. The Indian steel

industry is organized in three categories i.e., main producers, other major

producers and the secondary producers. The main producers and other major

producers have integrated steel making facility with plant capacities over 0.5

mT and utilize iron ore and coal/gas for production of steel. The main producers

are Tata Steel, SAIL, and RINL, while the other major producers are ESSAR,

ISPAT and JVSL. The secondary sector is dispersed and consists of: (1)

Backward linkage from about 120 sponge iron producers that use iron ore and

non-coking coal, providing feedstock for steel producers; (2) Approximately

650 mini blast furnaces, electric arc furnaces, induction furnaces and energy

optimizing furnaces that use iron ore, sponge iron and melting scrap to produce

steel; and (3) Forward linkage with about 1,200 re-rollers that roll out semis into

finished steel products for consumer use.

Structural Weaknesses of Indian Steel Industry

Although India has modernized its steelmaking considerably, however, nearly

6% of its crude steel is still produced using the outdated open-hearth process.

Labour productivity in India is still very low. According to an estimate crude

steel output at the biggest Indian steelmaker is roughly 144 tonnes per worker

per year, whereas in Western Europe the figure is around 600 tonnes.

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

Low labour wage rates

Abundance of quality manpower

Mature production base

Positive stimuli from construction industry

Booming automobile 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

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 defense industries and for sale in export markets.

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 establishment in 1907 marking the beginning of Indian Steel Industry followed by Indian Steel Co. (1918), they were too small to meet the development requirements of a big country like ours. Therefore, in the 1st Industrial Policy Resolution of the Govt., soon after independence, Govt. decided to establish Steel Plants in Public Sector. However, work could be started at fast pace only in 1954, when Hindustan Steel Ltd., was formed and three Steel Plants of 1 MT capacity each, were established with provision of further expansion at Bokaro, Rourkela and Durgapur with assistance from USSR, West Germany and U.K. respectively.

To improve the functioning of Steel Industry, Govt. decided to form a holding company during 1972, which was named as Steel Authority of India Ltd., (SAIL) and the same was incorporated on January 24, 1973, with an authorized capital of Rs.2000 crores.

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 country wide distribution network consisting of a chain of Stock Yards and distribution network.

SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic as well as the Export markets and a large pool of technical and professional expertise.

Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structural, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at four 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.

SAIL’s wide range 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) and the International Trade Division. CMO encompasses a wide network of 38 branch offices and 47 stockyards located in major cities and towns throughout India.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. SAIL’s captive mines are under the control

of the Raw Materials Division in Calcutta. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Calcutta. Almost all SAIL’s plants and major units are ISO Certified.

OWNERSHIP AND MANAGEMENT

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its "Navratna" status, enjoys significant operational and financial autonomy

INTEGRATED STEEL PLANTS

1. Bokaro Steel Plant (BSL) in Jharkhand2. Durgapur Steel Plant (DSP) in West Bengal3. Rourkela Steel Plant (RSP) in Orissa4. Bhilai Steel Plant (BSP) in Chhattisgarh

SPECIAL STEEL PLANTS

1. Alloy Steel Plant (ASP) in West Bengal2. Salem Steel Plant (SSP) in Tamil Nadu3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka

SUBSIDIARIES

1. Indian Iron & Steel Company Limited (IISCO) in West Bengal.2. Maharashtra Electrosmelt Limited (MEL) in Maharashtra

OTHER UNITS

Raw Material Division (RMD) at Kolkata, West Bengal Central Marketing Organization (CMO) at Kolkata, West Bengal SAIL Consultancy Division (SAILCON) at New Delhi Research & Development Centre for Iron & Steel (RDCIS) at Ranchi,

Jharkhand Centre for Engineering & Technology (CET) at Ranchi, Jharkhand Management Training Institute (MTI) at Ranchi, Jharkhand Central Power Training Institute (CPTI) at Rourkela, Orissa SAIL Safety Organization (SSO) at Ranchi, Jharkhand Environment Management Division (EMD) at Kolkata, West Bengal Growth Division (GD) at Kolkata, West Bengal Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand

JOINT VENTURE

SAIL has promoted joint ventures in different areas ranging from power

plants to e-commerce.

NTPC SAIL Power Company Pvt. Ltd

Set up in March 2001, this 50:50 joint venture between SAIL and the

National Thermal Power Corporation (NTPC) operates and manages the

Captive Power Plants-II of the Durgapur and Rourkela Steel Plants which

have a combined capacity of 240 MW.

Bokaro Power Supply Company Pvt. Limited

This 50:50 joint venture between SAIL and the Damodar Valley Corporation

formed in January 2002 is managing the 302-MW power generation and

1880 tons per hour steam generation facilities at Bokaro Steel Plant.

Bokaro Electric Supply Company Pvt. Limited

150 Another SAIL-NTPC joint venture on 50:50 basis formed in March

2002 manages the 74 MW Power Plant-II of Bokaro Steel Plant which has

additional capacity of producing tones of steam per hour.

UEC SAIL Information Technology Limited

This 40:60 joint venture between SAIL and USX Engineers & Consultants, a

subsidiary of the US Steel Corporation, promotes information technology in

the steel sector. 

Metaljunction.com Private Limited

A joint venture between SAIL and Tata Steel on 50:50 bases, this company

promotes e-commerce activities in steel and related areas.

SAIL-Bansal Service Center Pvt. Ltd.

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 bases

to promote a service centre at Bokaro with the objective of adding value to

steel.

North Bengal Dolomite Limited

A joint venture between SAIL and West Bengal Mineral Development

Corporation ltd on 50:50 basis was formed for development of Jayanti

Dolomite Deposit, Jalpaiguri for supply of Dolomite to DSP and other

plants.

Romelt-SAIL (India) Ltd

Romelt Technology developed by Russia for reducing of iron bearing

materials, which is carried out with carbon in single A joint venture between

SAIL, National Mineral Development Corporation (NMDC) and Russian

promoters for marketing stage reactor with the use of oxygen.

Bhilai JP Cement Ltd

SAIL has also incorporated a joint venture company with M/s Jaiprakash

Associates Ltd to set up a 2.2 MT cement plant at Bhilai. Likely to

commence operations by March'2010.

BOKARO STEEL PLANT

A PARTNER IN NATION BUILDING

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 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

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

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 customer segments.

Brand Bokaro will signify assured quality and delivery, offering value for

money to the customers.

VISION

To be a respected world–class corporation and the leader in Indian Steel

business in quality, productivity, profitability and customer satisfaction.

CORE VALUES OF SAIL

HUMAN RESOURCE

SAIL’s total manpower at the end of 30 April, 2010 stood at around 26,288.

The company’s labor productivity 244.02 tones/man/year as on 30.04.10

Customer Satisfaction

Concern for

People

Consistent Profitability

Core Values

Commitment of Excellence

Scrap and Salvage Department

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 SSD’s 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.

Following Items fall under the category of Secondary Products:-

(A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG

1. MS SLAB END CUTTING WITHOUT FISH TAIL

2. MS THICLE PLATE CUTTING (25-40 MM) MIXED W.FR.

3. SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS.

4. LIQUID NITROGEN.

5. FINE IRON CHIPS FROM IMP (FE-70% APP).

6. FERROUS SIELPHATE – LOOSE.

7. BE GRNAULATED SLAJ (BOTH BY FIXED PRICE AND TENDER).

8. LIQUID ARGON.

9. PIG TRON.

10.TURNING & BORING.

(B) OTHERS

1. CARBIDE SLUDGE.

2. U/R AMC/MCB BRICKS.

3. U/R MAJ CHROME MAJ BRICKS.

(C) COAL CHEMICALS AND BY PRODUCT

1. MG BENZENE

2. NG TOLUENE

3. LS NAPTHA

4. SB OIL

5. HP NAPHTHALENE

6. ANTHRANCENE OIL

7. EXTRA HARD PITCH

8. HARD MEDIUM PITCH – SOLID STATE

9. HARD MEDIUM PITCH – LIQUID STATE

NECESSITY OF SELLING THE ''SECONDARY PRODUCTS"

The net sales realization from all the Secondary products, By-Products and co-

products 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.

By selling it to the different Mills/traders/Processors the plant earn around

Rs.4000 per tones of the direct profit than by re-producing it to the main

product. The traders /processors/re-rollers, use these as a raw materials for

different finished products making huge profits, the plant is also not losing

anything.

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 2007-2008 2008-2009 2009-2010

Hard Med Pitch Rs.16628 Rs.23331 ------

Ferrous Sulphate ------- ------- Rs.6000

Naphthalene Rs.47864 Rs.42793 Rs.42900

Anthracene oil Rs.13805 Rs.18511 Rs.13200

Benzene Rs.38354 Rs.30961 Rs.32900

Toluene Rs.39603 Rs.39080 Rs.35300

LS Naphtha Rs.32392 Rs.31029 Rs.31050

S Boil Rs.20533 Rs.19588 Rs.18000

“ROLE OF MARKETING DEPARTMENT”

MARKETING DEPARTMENT OFBOKARO STEEL PLANT

Marketing Department is one of the Departments under Materials Management Division of Bokaro Steel Plant. Marketing Department is entrusted with the responsibilities to sell BSL’s Secondary Products, By-Products/Waste Products, and Idle Assets etc.

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), the objective of which is “To sell the materials in a fair and transparent manner to achieve maximum possible revenue to the company”

(a) Marketing of prime products of SAIL’s 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 & By-Products are marketed by the individual Plants only.

Marketing of these products are conducted by various sections by marketing department of Bokaro Steel plants. It is engaged, with marketing of Primary Products for home sale or export through CMO. The 4.0 Million tones section known as plate mill section dealing with plates. Now this section has got ISO - 9002 certificate.

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)

Jr. Mgr. (Co-ordn.)/Mktg.

Cord, HK, Admn. & Est. Training Officer

DGM (Mktg.)

Audit, Vigilance, RTI, & other queries reply, Contract Cell(MM), Sec. Sales

AGM(Mktg.)

Sec. Steel Ad & Est, QC, ISO, DCA, Contract Cell(MM)

Sr. Mgr.(Mktg.)

Slag, Waste, Iron, Smug. Scheme

Sr. Mgr. (Mktg.)

Idle Assets, U&S, Surplus

Sr. Mgr. (Mktg.)

Coal& Chem., Zinc Dross, Ammonium Sulphate & Ferrous Sulphate

Manager (Mktg.)

Reports, Price Monitoring, MIS

Jr. Mgr. (Mktg.)

Secondary Steel, Safety Officer

Jr. Mgr. (Mktg.)

FUNCTION OF MARKETING DEPARTMENT

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

Marketing Planning has responsible function in the working of marketing department. All the risky developments, taking out solution to cripple `situations, this section carries out product pricing and related activities, some of the programmes, policies and procedures are as follows:-

I) Positioning the product a value based place in customer mind.

II) Finalize annual sales plan and quantity, monthly, weekly, and daily rolling programme of Rolling mills in consultation with CMO and mills. This plan is based on the sales forecast receive from JPU SPL/ Iron and steel controller.

III) Optimizing the product-mix by proper utilization of available stocks.

IV) Receiving Enquiries and complaints, cancellation of orders etc.

V) Coordinating the works of mills and traffic department so as to maximize dispatches.

VI) Co-ordinations with CMO from stages of enquiry, for exports, development of new Profiles, sections, modification of product scheduling till the orders are completed.

VII) Development of new qualities of steel.

VIII) Periodical market surveys of products to analyze the market position.

IX) Implementation of suggestions received from the customers’ feedback.

X) Ensure customer satisfaction by meeting customers regularly; provide redress to their problems and fulfillment of demand.

Pricing policy and Sales Procedure:

PRICING:

Fixing the price of a product is the most vital function in the whole process of the marketing and it should be done after proper market study and requires decision making ability. If price is too low the company will lose revenue and if the price is too high it will lose customers resulting in loss of revenue valuable customers. Coal chemicals are the main product which is to be marketed by the Marketing Department of Bokaro Steel Plant. Almost all the products are sold on the fixed price basis. This is due to the fact that the company does not enjoy monopoly in the said market and the price is totally market driven.

The policy adopted by the marketing department for pricing of materials is largely guided by the price offered by the bidders during the auction. The various factors taken into consideration while pricing the re-rollable items can be enumerated as follows: -

(a) Prices offered in the auction sales.

(b) Quantity of material to be lifted.

(c) Managing director's approval.

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.

The committee consists of:

GM (Utility), Chairman

GM (Marketing), Convener

DGM (Finance), member

DGM (Sales Coordination), member

DGM (Stores), member

DGM (BPP), member

For Scrap goods the DGM (SSD) replaces the DGM (BPP). Rests of all the members are always present in all the meetings.

While deciding the price following points are kept in mind:

Dispatch of the last month.

Material in stock.

Forecast of next month.

General market condition.

Availability of transport facility.

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 MD’s 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 ----- No Discount

10,000 to 15,000 ----- 15% Discount

Above 15,000 ----- 20% Discount

b) To find new customers and to inform customers at far distant areas Tender Notice given in the newspaper for sale of scraps. Best among the application is accepted with a view to get the best revenue.

c) Sometimes when new item is to be sold sales notice is given in the newspaper. But most of the time local customers get informed from other customers.

MARKETING STRATEGIES OF BSL

Steel being an industrial commodity it is very necessary to maintain customer relationship for profitability and smooth running of company.

1. 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.

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.

2. STOCK REDUCTION

Giving facilities like door delivery, road dispatches, credits facility and rounds the clock stockyard operation.

3 PRICE FIXATION

Pricing is done basically by the CMO. Taking into consideration cost of production, government steps on pricing, certain percentage of profit, price of raw material fright charges etc. i.e. pricing is COST PLUS PRICING.

4 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.

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.

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.

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.

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

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.

Selling of Secondary & By-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. Different modes of selling are used for these products

MODE OF SALE

Fixed Price Sale

E-auction

TenderInter Plant Transfer

CHAPTER 3

PROBLEM FORMULATION

3.1 BACKGROUND OF THE STUDY

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 India’s 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.

3.2 RESEARCH PROBLEM

Though Steel Authority of India Limited (SAIL) is the leading steel maker company in India, the customers of secondary and by-products prefer other steel company for purchasing secondary and by-products due to the higher price of secondary and by-products of Bokaro steel plant.

3.3 SIGNIFICANCE OF THE STUDY

To know the customer preference of different secondary and by-products 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

4.1 OBJECTIVE OF THE STUDY

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.

4.2 SCOPE OF THE STUDY

The study was conducted over a period of one and half months from Mid April to May, 2010. The study includes the customers of secondary and by-products in Bokaro district

4.3 RESEARCH METHODOLOGY OF THE STUDY

Type of Research- Descriptive Research Data Source-

Primary Data: Interview, Questionnaires. Secondary Data: Internet, previous and current records and

magazines published by BSL. Sampling technique- Convenience sampling Data collection Tools- Questionnaire method Area of study- Bokaro district Population- Customers in the towns of Bokaro district Sample Size- 25 customers Data analysis and interpretations using percentage analysis

4.4 DEFINITIONS

1. PRICING STRATEGY:

Pricing strategy is the price planning that takes into view factors such as firm’s overall marketing objectives, consumer demand, product attributes, competitor’s pricing and, market and economic trends

OPERATIVE DEFINITION: The term pricing strategy here means the link between BSL objectives, financial goals, brand promise, merchandising strategies and price on the shelves of Secondary and By-products taking into consideration the strategy of its competitors.

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 firm’s 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 By-products is studied here.

CHAPTER 4

DATA ANALYSIS

AND

INTERPRETATION

Classification of customers

Trader Manufacturer Processor others

6 14 3 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.

Reason for purchase from BSL

Quality Cheap transportation Local market price

11 7 5 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.

Satisfaction with respect to quality

Yes No

23 2

Interpretation

Most of the customers of secondary and by-products of Bokaro Steel Plant are satisfied with the quality of the product.

Types of products purchased by customers

Secondary steel By-products Slag Idle assets

10 11 3 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 7

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.

Reason for selecting more than one company

Low price High quality Better service better selling methods others

4 7 5 1 1

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.

Difference in price between BSL and other steel plants

Yes No

20 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.

Difficulties while dealing with BSL

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.

Any better selling adopted by other steel plants?

Yes No

3 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 don’t feel management will be serious about their problems. So, customer’s confidence towards management of BSL should be increased.

Complaints executed

Yes No

7 4

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.

Types of by-products purchased

Benzene toluene S.B.oil Hard medium pitch L.S. Naptha

9 5 3 1 2

Anthracene oil Ammonium sulphate extra hard pitch

2 9 1

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.

No. Of years while trading

Below 2 years 2years-4years above 4 years

4 5 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.

Pricing method preferred

Fixed price e-auction

4 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 roadways

7 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.

Main benefits received from BSL

Quality Price Availability Transportation discount structure

15 3 9 7 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.

Does volume limit satisfy needs of customers?

Yes No Somewhat

7 13 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.

Experience with marketing personnel

Good Bad Excellent

22 2 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.

Accessibility of Information about bids to be taken place

Highly dissatisfied dissatisfied neutral satisfied highly satisfied

2 4 5 13 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.

Order handling procedure of BSL

Good bad poor excellent

20 2 2 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 by-products. So, for being in the competition with other steel plants BSL is having good order handling procedure and that will make his customers happy.

Satisfaction with price of secondary and by-products

Yes 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.

Satisfaction with the current selling methods of BSL

Yes no

21 4

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.

Overall Experience while dealing with BSL

Highly dissatisfied dissatisfied neutral satisfied highly satisfied

2 3 8 10 2

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.

9. E-auction is the most reliable selling method and majority of customers are happy with it. The other methods of selling adopted by BSL like tender, fixed price are same as the other steel plant and customers are satisfied with those selling methods.

10.Most of the customers don’t register complain about the problem they faced during purchase but majority of customers who registered their complain get solution for that. So, BSL has to increase the confidence of customers on them.

11.Among by-products category of products Benzene, Toluene and Ammonium sulphate are having highest number of customers.

12.Most of the customers are loyal to BSL because most of the customers are dealing with Bokaro steel plant for more than 4 years.

13.Roadways are the most common mode of transportation used by customers because all belongs to local market. Some of the customers are using Railways for the transportation because by-products are mainly transported through railways.

14.Quality, availability and transportation are main benefits that the customers of secondary and by-products of BSL receive from Bokaro steel plant. Only few customers responded that price and discount are the benefits they receive from BSL.

15.Most of the customers are not happy with the volume limit that they receive from 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

6. CONCLUSIONS AND RECOMMENDATION

The main issue attached with Bokaro Steel Plant secondary and by-products is that most of the customers finds its price higher than the other brands of 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 don’t 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

Kotler Philip, Keller Kelvin, Koshy Abraham, Jha Mithileshwar; Marketing Management; New Delhi, Published by Dorling Kindersley (India) Pvt. Ltd.

Malhotra N.K.,Marketing Research- An applied orientation, New Delhi, Prentice Hall of India Private Ltd.

Magazine published by SAIL

Training manual

Books of organization

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)

5. What type of products do you purchase from BSL?

a) Secondary steel

b) By-products

c) Slag

d) Idle assets

6. Are you dealing with any other company other than BSL?

a) Yes………………………………. (please specify the name)

b) No

7. If ‘Yes’ then what would be the reason for selecting other company?

a) Low price

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

12.Did complains get executed?

a) Yes

b) No

13.Which types of by-products do you deal with?

a) Benzene

b) Toluene

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

16.What mode of transportation are you using?

a) Railways

b) Roadways

17.What are the main benefits which you receive from BSL?

a) Quality

b) Price

c) Availability

d) Transportation

e) Discount structure

18.Does the volume limit of secondary products, for bidding, help satisfy your needs?

Yes No Somewhat

19.What is your experience with the marketing personnel?

Good 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)

1 2 3 4 5

21.How do you rate the order handling procedure of the BSL?

Good 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)

1 2 3 4 5

Any suggestions for further improvement:

Thank you for your sincere co-operation.

NAME OF THE CUSTOMER- …………………………………………………

PLACE- ………………………………………………………………………….

DATE- ………………………………………………....

CONTACT NO. - ………………………………………

ABBREVIATION

1. SAIL - Steel Authority of India Limited.

2. TISCO - TATA Iron and Steel Company.

3. MECON - Metrological & Engineering consultants’ ltd.

4. HSCL - Hindustan steel works consultants Ltd.

5. NMDC - National Mining Development Corporation ltd.

6. RDCIS - Research and Development Centre for Iron and Steel.

7. CET - Centre of Engineering and Technology.

8. CPTI - Central Power Training Institute.

9. MRD - Marketing Recovery Department.

10. BFGS - Blast Furnace Granulated Slag.