Bsl marketing

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SUMMER INTERNSHIP PROJECT
REPORT
ON
“A STUDY ON THE PRICING AND SALES STRATEGY OF
SECONDARY AND BY-PRODUCTS AT SAIL (BOKARO)”
BOKARO STEEL PLANT
(A PARTNER IN NATION BUILDING)
Submitted in partial fulfillment for the award of degree of
Master of Business Administration (M.B.A.)
Of
Gandhi Institute For Technology (G.I.F.T.), BBSR
Session: 2014 -2016
Under The Guidance Of: PRESENTED BY:
Mr.Amit Kumar Sammi Kumar Singh
A.G.M. (Marketing) MBA 3rd Semester
Bokaro Steel Plant Regd.No.1406298028

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ACKNOWLEDGEMENT
I wish to acknowledge my indebtedness to my project guide Mr. AMIT
KUMAR (A.G.M. of Marketing department of Bokaro Steel Plant ) for his valued
guidance, without their sincere guidance and support this project would not
have been a success. Thanking them is a small gesture for the generosity
shown.
I am also indebted to all the employees of the organization for their
sincere help and co-operation.
This project is a satisfactory outcome of several day's hard work. We are
thankful to the respondents who have given us sample feedback and
co-operationduring the preparationof this report.
Finally, I take this opportunity to thank the entire senior executives’ team
and every associate of this organization, who have helped me directly and
indirectly during this periodof project preparation.
SAMMI KUMAR SINGH
MBA 3rd SEMESTER
GIFT ,BBSR

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DECLARATION
I hereby declare that the following documented project report titled “SALES
AND PRICING STRATEGY OF SECONDARY PRODUCTS in Bokaro
Steel Plant(SAIL)" is an authentic work done by me as a part of my industrial
training in Bokaro Steel Plant, SAIL.
I also further state that the project has been prepared by my own with the
secondary data provided in the reports of the company, which were essential
for the completion of the project. The project was undertaken as a part of the
course curriculum of M.B.A. (Marketing).
Sammi Kumar Singh
(MBA 2nd YEAR)
Regd. no.-1406298028
GIFT,BBSR

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CERTIFICATE
This is to certify that the project entitled “SALES OF SECONDARY PRODUCTS
IN B.S.L. ”at SAIL- BOKARO STEEL PLANT has been carried out by SAMMI
KUMAR SINGH from 25 May 2015 to 17 July 2015, under my supervision for
partial fulfillment of his MASTER OF BUSSINESS
ADMINISTRATION(M.B.A.)in (Marketing) course at GANDHI
INSTITUTE FOR TECHNOLOGY.(G.I.F.T,BBSR).
I am satisfied with his sincere performance and study conducted by him in
SAIL-BOKARO STEEL PLANT. The project is hereby approved as a bonafied
work carried out and presented in a manner satisfactory to its acceptance area to
the Master of Business Administration(M.B.A.)for which it has been submitted.
I recommend submitting the project report. I wish him all success in life.
This is also certified that the project work is original and has not been submitted to
any other place.
ProjectGuide:
Mr. AMIT KUMAR
A.G.M. (Marketing)
Bokaro SteelPlant.
Date:17 July 2015 SAIL

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INDEX
Sl.No. Contents Page No.
1. About Bokaro Steel Plant :
 Introduction of Bokaro Steel Plant. 06
2. Company Profile : 07
 About SAIL
 Mission ,Vision and Core Values
08
09-10
3.  SWOT Analysis 11
4.  History of BSL,(product and services)
 Process Flow Chart,(prodn.plan )
12-14
5.  Scope of Study, Project objective
 Secondary product and need for selling.
16-20
6.  Marketing Dept. and B.O.D.
 Sales procedure, process and policies. 21-33
7.  CMO,Metal Junction ,production prof.
 Auction Procedures
34-48
8.  Data Analysis and Interpretation
 Awards and Recognitions
49-54
55
9.  Limitations and Bibliography 57-58
10.  Thanks.... 59

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1.
Introduction of Bokaro Steel Plant
Bokaro Steel Plant (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. SAIL is also among the five Maharatnas of
the country's Central Public Sector Enterprises.
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 five 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.
With the turnover of Rs. 48,681 crore, the company is among the top five highest profits
earning corporate of the country. SAIL has more than 131,910 employees. The
company’s current Chairman is C.S.VERMA. With an annual production of 13.5
million metric tons, SAIL is the 14th largest steel producer in the world.
Bokaro Steel Plant is having a special range of steel products like Grade Steel,
HRVO,WICR,DMR249A, HSCR, SAILCOR, SAILBOILER, Titanium BEARING , LPG Steel,
HRNO, SAILMA, WTCR and BSK 46. The galvanized products of Bokaro Steel Plant are
branded SAIL- JYOTI.

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STEEL AUTHORITY OF INDIA LIMITED (S.A.I.L.)
Steel Authority of India Limited (SAIL) is the leading steel-making company in India.
SAIL is India's largest steel producing company with a turnover of Rs. 47,042 crore,
SAIL is among the five
MAHARATNA of the country's
Central Public Sector
Enterprises. It is a fully
integrated iron and steel maker.
SAIL manufactures and sells a
broad range of steel products
that are used for different
purposes like domestic
construction, engineering,
power, railway, automotive and
defense industries and for sale
in export markets. Since its
inception, SAIL has been
instrumental in laying a sound
infrastructure for the industrial
development of the country.
Besides, it has immensely
contributed to the development
of technical and managerial expertise. It has triggered the secondary and tertiary waves
of economic growth by continuously providing the inputs for the consuming industry.
 Satisfaction Customer
 Aspiration Unlimited
 Improvement Continual
 Leadership Market

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 VISION :To prosper in business by achieving international competitiveness
through satisfaction of customer's needs by continuous improvement in
quality, cost,and delivery of products and services.
 MISSION: To safety health and environment, friendly, operations and
practices for its people as well as personal touch in all people imitativeness
and interactions to bring a sense of togetherness and pride, we believe people
create valve when they are valued.

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 CORE VALUES OF SAIL: (4 C's )
SLOGAN:
CORE VALUES
Customer
Satisfaction
Concern
for People
Consistent
Profitability
Commitment
of Excellence

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SWOT ANALYSIS :
STRENGTH
Abundant resourcesofiron ore.
Low cost and efficient labor force.
Strong managerialcapability.
Strongly globalised industry and
emerging global competitiveness.
Wide network of dockyard and
stockyard.
WEAKNESS
High cost of energy and higher
duties &taxes.
High costof capital.
Quality of coking coal.
Labor laws.
Dependence on technology.
QPPORTUNITIES
Huge infrastructure demand.
Rapid urbanization.
Increasing demand for consumer
durables.
Untapped rural demand.
Increasing interest of foreign
steelproducers in India.
THREADS
Slow growth in infrastructure
development
Market fluctuations and china's
export possibilities.
Global economic slowdown.
Rigid decision making process .

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BOKARO STEEL PLANT AT A GLANCE:
Bokaro Steel plant is the fourth integrated public sector plant in India in 1965
with collaborationwith soviet union.
Construction work started on 06 April 1968. It is India's first swadeshi steel
plant. 1st blast furnace started on 02 Oct 1972 and first phase of 1.7 MT steel
was completedon 26 Feb 1978.
 BSL has 5 blast furnace of capacityof 10 MT.
 Coke ovenof 8 batteries.
 SteelMelting Shop (SMS I AND SMS II).
 Continuous Casting Shop (CCS).
 Slabbing mill.

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PROCESS FLOW CHART OF BOKARO STEEL PLANT:

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 PRODUCT AND SERVICES:
 Hot rolled coils, plates and sheets.
 Cold rolled coils and sheets.
 Oxygen gas.
 Galvanized sheets.
 Coke ovenby-products.
 Secondaryproducts (slag and cements).
BOKARO STEELPLANT - PRODUCT BASKET:
Mill Capabilities
Shop Products Facility Annual
Capacity
(,000
Tones)
Thickness
range (mm)
Width
range
(mm)
Length
(meter)
HSM HR Coils/ Sheets/ Plates Continuous Mill 3955 1.6 -16 900-1850
HRCF HR Sheets/ Plates Shearing Line-I - 5-10 1800 2.5-12
HR Sheets/ Plates Shearing Line-II 1.6-4 1500 1.5-4.5
HR Coil Slitting Line
CRM 1660
CR Coils/ Sheets CRM-I complex 0.63-2.5 700-1850
CR Coils/ Sheets CRM-II complex 0.63-1.6 650-1250
CR Coils/ Sheets,TMBP DCR Mill 100 0.22-0.8 650-1040
GP Coils & Sheets GC
Sheets
HDGL 170 0.3-1.6 650-1250

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Annual Production Plan of Bokaro Steel Plant:-
2005-06 Unit: '000 Tones
Pushing BF Skip Hot
Metal
SMS IMF PCM PIG
IRON
CRUDE
STEEL
Cast Ingot
Nos./Day Coke Sinter slab
steel
TOTAL
Apr'05 493 207 458 380 357 7 16 15 346 234 112
May 493 214 470 390 366 8 16 15 355 242 113
Jun 493 207 458 380 359 7 14 13 348 234 114
1st
QTR
493 628 1386 1150 1082 22 46 43 1049 710 339
Jul 493 214 410 340 320 7 13 12 311 242 69
Aug 493 214 410 340 319 7 14 13 309 242 67
Sep 468 196 458 380 357 7 16 15 347 234 113
2nd
QTR
485 624 1278 1060 996 21 43 40 967 718 249
Oct 468 203 493 409 385 8 16 15 374 242 132
Nov 468 196 477 396 373 7 16 15 362 234 128
Dec 468 203 493 410 385 8 17 15 375 242 133
3rd
QTR
468 602 1463 1215 1143 23 49 45 1111 718 393
Jan'06 492 214 512 425 402 7 16 15 390 242 148
Feb 492 191 452 375 353 7 15 14 343 220 123
Mar 492 214 512 425 402 7 16 15 390 242 148
4th
QTR
492 619 1277 1225 1157 21 47 44 1123 704 419
TOTAL
2005-06 484 2473 5602 4650 4378 87 185 172 4250 2850 1400

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SCOPE OF STUDY:
To study the major 'CONTRIBUTION OF SECONDARY
PRODUCTS' to total sales ,which is pre determining for the success
of the company. The present study was undertaken to see mode of
sale and pricing methods of secondary products of SAIL. To find
how auctions, fixed price and tenders are used for marketing of BSL.
By selling secondary products in local market, company is earning
profit. It is also creating an employment in small scale industries and
developing economy.

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PROJECT OBJECTIVE:
In Bokaro SteelPlantthere are various sections ofmarketing department.
Since I had chosen"Marketing OfSecondaryProducts" at Bokaro steel plant.
My Objectives are:
 To know what is secondaryproducts and why it is necessaryto sell.
 To know the use of secondaryproducts.
 Marketing study of secondaryproducts at Bokaro steelplant.
 To study terms and conditions on which BSL sells its products.
 To study and know how to do pricing of secondaryproducts.
 Dealing with localcustomers.
 Customers and competitors of BSL.

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In Bokaro steelplant finished products are categorizedinto three categories:
 PRIME PRODUCTS:
These are actual products which are originally Blooms , channels ,Rounds,
angels, Tmt bars, Wire rods, Rails ,structures.
 BY-PRODUCTS:
These products are not originally produced by Bokaro Steel Plant, but are
the outcomes while producing the prime products.
 SECONDARYPRODUCTS:
These are the defective and rejected products which due to improper
mixing of chemicals components or fail to meet requirements. Scraps
generated in Bokaro Steel Plant is termed as secondary products. The
secondary products are ferrous materials generated from various
production units which can be reused for remelting to produce iron to
offered for sale if rendered surplus in the production process.
Following Items fall under the category of Secondary Products:-
(A) REROLLABLE/IRONAND STEEL SCRAP/BFGSLAG

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1. MS SLAB END CUTTING WITHOUTFISH TAIL
2. MS THICLE PLATE CUTTING(25-40 MM) MIXEDW.FR.
3. SPILLED HOT METAL(10 MT AND BELOW) SMS ARISINGS.
4. LIQUID NITROGEN.
5. FINE IRON CHIPS FROM IMP (FE-70% APP).
6. FERROUSSULPHATE– LOOSE.
7. DEGRANULATEDSLAG (BOTH BYFIXED PRICE AND TENDER).
8. LIQUID ARGON.
9. PIG IRON.
10.TURNING & BORING.
(B) OTHERS
1. CARBIDE SLUDGE.
2. U/R AMC/MCB BRICKS.
3. U/R MAJ CHROMEMAJ BRICKS.
(C) COAL CHEMICALSAND BY PRODUCT
1. MG BENZENE
2. NG TOLUENE
3. LS NAPTHA
4. SB OIL
5. HP NAPHTHALENE
6. ANTHRANCENE OIL
7. EXTRAHARD PITCH
8. HARD MEDIUM PITCH – SOLID STATE
NEED FOR SELLING SECONDARY PRODUCTS:

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The net sales realization from all secondary products, by products and
co-products of Bokaro Steel Plant is around Rs.600 crores which is quite
more than any of the big industries. Reproduction of main products these
secondary products requires remelting it again for required composition of
materials as per designedspecification.
By selling it to different mills or processor the plant gets around Rs.4000
crore per tones of profits than by reproducing it to main products.
By using these materials traders /processor make raw materials for
different finished products.
 PROCEDURES FOR SALES OF SECONDARY PRODUCTS :
 By February , the availability of next financial year is estimated.
 A list of customers of coal chemicals are prepared and customers
intimate sectionabout their requirements.
 According to request submitted ,the various customers are told the
quantities they will be provided with.
 To buy a product a security is deposited.
 The buyer arrange for transport of products.
 List of the secondaryproducts of Bokaro Steel Plant:
Slag
Scraps of Vehicles ,Automobiles ,etc.
Iron dust.
Scraps rolls.
“ROLE OF MARKETING DEPARTMENT” OF BSL :

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> MARKETING DEPARTMENT OF BOKARO STEEL PLANT:

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Marketing Departmentis one of the DepartmentsunderMaterials Management
Division of Bokaro Steel Plant. Marketing Departmentis entrusted with the
responsibilities to sell BSL’sSecondaryProducts, By-Products/Waste Products,
and Idle Assets etc.
TheMarketing Departments sales procedures are covered by theguidelines given by
SAIL Corporate office DELHI, and is given by CMMG (CORPORATEMATERIAL
MANAGEMENT GROUP),the objective of which is “To sell the materials in a fair
and transparentmannerto achieve maximum possible revenue to the company”
(a) Marketing of prime products of SAIL’s plantincluding 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 Departmentof BSL. As a matter of fact, the Secondary& By-Products
are marketed by the individualPlantsonly.
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 underthis section.
The pricing and sales strategy of secondary products at Bokaro steel plant is
undertaken to see the mode of secondary products of SAIL marketing department is
the newest genesis from the sail and attempt to reach where no corporate has ever
ventured so far.
Main point is to find how auctions, fixed price and tenders are used for marketing
purpose.
90% of marketing and selling is done through auction and rest will be taken
as fixed price selling and by tenders.
On the other hand primaryproducts are sold by C.M.O. Delhi.
 ORGANISTATIONCHART OF MARKETING DEPARTMENT (BSL):

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( B.O.D)
Jr. Mgr. (Co-ordn.)/Mktg.
. Training Officer
 POLICIES OF MARKETING:
GM (Marketing)
JR.MANAGER(CO-ORD./Mktg)
Cord,HK,Adm.,Training Mgr
DGM (Mktg.)
Audit, Vigilance, RTI, & other queries
reply, Contract Cell(MM), Sec. Sales
AGM(Mktg.)
Sec. Steel Ad & Est, QC, ISO, DCA,
Sr. Mgr.(Mktg.)
Slag, Waste, Iron,
Smugl. Scheme
Sr. Mgr. (Mktg.)
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.)

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Marketing Planning hasresponsible 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
programmed, policies and procedures are as follows:-
I) Positioning the product a value based place in customer mind.
II) Finalize annualsalesplan and quantity, monthly, weekly, and daily rolling
program me .
III) Optimizing the product-mix by proper utilization of availablestocks.
IV) Receiving Enquiries and complaints, cancellation of orders etc.
V) Coordinating the works of mills and traffic departmentso as to maximize
dispatches.
VI) Periodical market surveys of products to analyze the market position.
VII) Implementation of suggestions received from the customers’ feedback.
VIII) Ensure customer satisfaction by meeting customers regularly; provide redress
to their problems and fulfillment of demand.
Pricing policyand SalesProcedure:
> 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 companywill 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
Departmentof Bokaro Steel Plant. Almost all the products are sold on the fixed
price basis. This is dueto the fact thatthe companydoes not enjoy monopoly in the
said market and the price is totally market driven.

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The policy adopted by the marketing departmentfor pricing of materials is largely
guided by the price offered by the biddersduring the auction. Thevarious factors
taken into consideration while pricing the re-roll able items can be enumerated as
follows: -
(a) Prices offered in the auction sales.
(b) Quantityof materialto be lifted.
(c) Managingdirector's approval.
The average of the prices offered by the bidderduring auction is taken as the basis
to fix the prices of materials to be sold through marketing department. Furtherthe
techniques of break-up-pricing are adopted i.e. the larger the quantitypurchased
lower will be the prices. This techniqueencourages the buyers to purchaselarger
quantity. Finallythe managingdirector 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 departmenton the basis of price list
reviewed every month. Every customer is required to have a security deposit amount
of Rs.1 lakh. Thepayment 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 anyincrease in subsequentmonth.
Standing PricingCommittee:
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 numberof meeting of the
committee in quick succession.
The committeeconsists of:
 GM (Utility), Chairman.
 GM (Marketing), Convener.

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 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 alwayspresent in all the meetings.
Whiledeciding the price following pointsare 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
channelincluding GM (Marketing), Executive Director (MM), GM (Financeand
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
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.

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CHANNELS:
Bokaro steel planthas zero level channels as it directly sells to the customers. There
is no intermediate among producerand consumer. Marketing Departmentalways
remains in contact with the customers’ extracts information aboutthe current
market situation on the basis of interaction between them.
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. CustomerSatisfaction:
- BSL adoptsfollowing practices for customer satisfaction.
a. Procedure / process adapted to access current / future expectation of customers.
b. It inducesmarket research visiting customer premises attending to customer
complaints.
c. It has posted market development officers at various locations that are its eyes
and ears for monitoring current and future expectation of its customer.
d. To understand customer needs seminars and workshops are also organized by
BSL.
BuildingCustomerRelationship:
BSL hasadopted the philosophyof 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:

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BSL hasvalued 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 productdifferentiation packages.
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 DISPATCH:
As the product is manufactured, thisdepartmentdirects 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 productthe Financedepartmentcalculates the total cost of
product as per demand order. Certain receipts and bills quoting the materialcode,
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.
 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 beginningof the month. Scrap arising during consumption.

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The remaining quantityis 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 departmentfinalizes 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 departmentobtains MD's approvalon price fixed by pricing
committee.
 PROCEDUREAPPLIEDFOR SALE OF SECONDARY PRODUCTS:
1. After obtaining approvalof quantityand 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 balancequantityto be sold at prices fixed by pricing committee,
preference is given to actualusers over traders. If there are no actualusers, 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
particularcategory of users. Scrap processing units are given second preference
for such allotments.
5. Theamountreceived from the party towards advancepaymentand security
deposit is forwarded to finance departmentby marketing departmentafter recording
the details in the register.

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6. Parties are allowed to visit the respective location disposals site, and inspect the
scrap offered for sale.
7. Marketing departmentprepares sale order for the parties who have accepted the
offer. Saleorders are issued party wise and category wise i.e. individualsale order
covers such categories like C I scrap, steel scrap, re-roll able, slag and waste
products.
8. Based on the deposit madeby the party, finance departmentintimates to
marketing departmentaboutrelease of requisite scrap for supply.

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 THE STRUCTUREOF THE PROCESSOF 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

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 Sellingof Secondary& By-Product:
This involves a direct marketing process. Themanagementof BSL in consultation
with the official of the market development and customer service departmentwork
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

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SALES AND DISTRIBUTIONOF SECONDARY PRODUCTS:
This involves a direct marketing process. The management of B.S.L. is consolation
with the officials of the market development and customer service department works
as a group for sales of these items.
 By E-Auction:
E-Auction is internet based selling method of selling of secondary products. In this
method there is onlinebidding action doneby companywebsite.
Applicantscan offer their price money withparticularquantitythey want. After
closing the date of auction within 5 working days, the final customer'snameis
declared on the websitebased on the price moneyoffered by them. They are invited
for the further process for purchasing materials.
MARKETING SCENARIO :
Without a perfect market ,goods can neither be sold nor purchased. Marketing is the
one of the major and crucial departmentpillarsof every organization.
Customers satisfaction and Qualityassurance: These are two motivesof SAIL for
achieving the goal and establishingthe market. SAIL has widenetwork across the
world, consisting of CMO for marketingdivision. Its headquartersare situated in
Kolkata.
Bokaro Steel Planthas established its position through the better service. It has
several departmentsamong whichmarketing division playsa key role. Every plant
has its branch sales office (B.S.O.) who looks upon the orders of CMO. These orders
are then send to the plantto check the availabilityand production for dispatch. All
departments are linked through Management Information System (MIS) from CMO
to each and every departmentof plant.

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For marketing ofdifferent types of itemspolicyare adopted by Bokaro Steel Plant
are as follows:
MOU is as agreement signed between the plantand customerfor assured
qualityand quantity.
CENTRAL MARKETING ORGANISATION:
Central Marketing Organization ,is the one of the largest marketing network for mild
steel products from the four integrated steel plants of sail. The CMO headquarters is
situated at Kolkata and commercial directorate is at New Delhi. A nationwide
network of regional offices, sales offices and several strategically placed warehouses
is further supplemented by consignment agents and authorized dealers to meet the
demandsof the smallestcustomers in the remote corners of country.
CMO maintains its aggressive marketing efforts in order to retain market leadership
by meeting customers' requirements and evolving to increase sales. In order to
strengthen the marketing approach and initiate the product and segment
specialization.
CMO has been recognized on the basis of long and flat products. Key account
managementprocess has been implemented in CMO to providebetter quality.
This is being followed by Customer Satisfaction Index (CSI) to increase
responsiveness to the customers need. Yet another significant development has been
re-oriented of the sales branches. These wide range of network of authorized dealers
also help to meet customers demand.

35
 Regional Offices of Central Marketing Organisation (CMO):
North Region East Region South Region West Region
Allahabad Siliguri Bangalore Ahmadabad
Chandigarh Bokaro Chennai Bhilai
Faridabad Jamshedpur Coimbatore Bhopal
New Delhi Patna Hyderabad Mumbai
Kanpur Guwahati Cochin Nagpur
Marketing Departmentof Bokaro Steel Plant:
 Marketing Department:
The Marketing of prime products of all the steel plants of SAIL is handled by Central
Marketing Organization (CMO). The Marketing Department of Bokaro Steel Plant is
entrusted with a job of co-ordination between the CMO and plant as well as marketing of
secondary products and by products for easy of functioning of market is divided into
following functions:
MARKETING AND STRATEGIC PLANNING:
 Handling of Customers Complaints : In case of any complaints by the customers, the
complaints are send to the G.M. of particular mill. The CMO has an application
engineer for commercial settlement which inspects the materials and if found defective
adjustmentsare madein paymentsor materialsistaken back.
 Customers Feedback :Customers feedback is taken by this section on a periodic basis in
the form of customers satisfaction feedback reports. A four points feedback is taken for
increasing the market share and for customers retention. There is a key accounts
managerwhohandlesthem, to providesinglewindow services.

36
 ISO Activities : The various documents pertaining to ISO activities are handled and
managed here.
 Training :This section alsooverviewsthe training ofnew trainee.
 Product Development : The management and research group of CMO studies the
marketdemand, suppliesand feasibilityfor which is checked at plant.
 Strategic Planning : This section deals with the product mix ,quantum of exports
,monthlytonnageand for other parametersaccording to the demand.
EXPORTS:
The International Trade Divisions of CMO is main body that handled exports of steel
in SAIL. BSL has been major exporters in the past .Rails have been exported to over
50 countries . The procedures for exports are as follows:
 The International buyer sends an enquiry to ITD for availability of goods.
 If response is positive then a letter of credit is sent in the name of the buyer and
deal is signed specifying the terms and conditions .
 ITD gives a contractto BSL in the form of work orders to be processedhere and
sent to mill for production.
 After production of goods dispatch advice is send to production department ,after
which goods are verified and testedand then goods are send to vizag for export .
 At the ports ,the various formalities are completed relating to : export license and
GR form.

37
MARKETING AND BUSSINESS PLANNING DEPARTMENT OF
BOKARO STEELPLANT :
Marketing and business planning department of Bokaro steel plant act as an interface between
plant and CMO for co-coordinating with for sales of prime products. Apart from this ,it also
carries out direct sales of secondary products and by products generated in plant .
The activities framework is given below :

38
INTERNATIONALTRADE DIVISION (ITD):
International Trade Division (ITD) of CMO manages exports of mild steel
products and maintains close liaisonwith buyers abroad. ITD has been
successful in making SAIL steel,a familiar name across the continent .
Transport and Shipping division (T&S)of CMO performs the important
functions of ensuring proper dispatch of exports materials and timely import of
raw materials .
BRANCH SALES OFFICE :
This office is related to the sales ofprime products of Bokaro SteelPlant, which
has been acting as an interface between CMO and BSL . The different issues has
been related to the products and its delivery. We can say that it coordinate about
the production and dispatch in different steelplants . CMO has got SRM offices
in Bokaro, Durgapurand Bhilai .
FUNCTIONS OF BRANCHSALES OFFICE (BSO) :
 Booking oforders from customers on long term and short term basis .
 Passing details of booking to concernedsales residentmanageroffice .
 The meeting relatedto the sales ofproduct is done immediately .
 The customers complaints are also handled .

39
CREDO :
1. We build lasting relationships with customers basedon trust and mutual
relationships.
2. We uphold highest ethical standards in conduct of our business.
3. We create a culture that supports flexibility , learning and is proactive to
change .
4. We chart a challenging careerforemployees with opportunity for
advancementand rewards .
5. We value the opportunity and responsibility to make a meaningful
difference in people's life .

40
METAL JUNCTION (M-JUNCTION ) :
M-Junction service limited operating at the cutting edge of Information
Technology and the Internet is a 50:50 venture promoted by SAIL and
TATA Steel .Founded on February 2001, it is today's not only India's largest
E-commerce company (having transacted worth over Rs.1,60,000 Crores )
till date and sold over 4 million Tons of steel for its client and currently
selling at an average rate of 1,50,000 tones per month ,but also run as the
world's largest E-Market place for Steel. The Steeland Coal supply chain in
India has been transformed by m-junction which is famous for its efficiency
,transparency and convenience to purchase and sold and clients have
experienced significant benefits on migrating to online selling and price
realization is increased up to 23% .
Similar transformational change is sought to be made in automobile
industry and in the safe of brand products with the launch of auto junction
and straight-line respectively .Business volume of the company in terms of
transaction has scored from Rs.94.34 crores from FY 2002 to Rs.41.134
crores in FY 2014 ,registering a CAGR of 74% .
M-junction's growth has not only been in terms of transactional value
,revenue and profit . In the space of just 12 years , it has established a
national footprint at more than 25 locations all over the country .
Starting out with a terms of less than 6 people at inception ,had reached to
500 people at a particular location . M-junction is an ISO 9001:2008 , ISO
27001 andCMMI Level 5 Certified .
These business units provide stakeholders o the both sides with a level
playing field with an objective of Price Discovery .M-junction sell side
community today consists of over 20,000 buyers ,buying steel and coal
products as wellas by products .

41
Vision Of MetalJunction (M-Junction ) :
MetalJunction is customerfocused, technologydriven and innovative as it
charts is progress overthe next five years .It will seek to create value for its
customers consistentlyachieving growth of 25% .
Missionof MetalJunction ( M-Junction ) :
M-Junction makes the world a better place every day by creating robust and
sustainable supply chains by bringing in more efficiency and transparency and
delivering desiredoutcomes to stakeholders .
Values Of Metal-Junction(M-junction) :
 Customer Focus : Metal-junction strive to exceedcustomerexpectations
for value and services .Itbuild and maintains customers relationships
and ensure long term satisfaction.
 Excellence : Metal-junction constantlystrive to achieve the highest
possible standards in day to day work and in the quality of services they
provide.
 Innovation : They are motivated to produce creative solutions that meet
our customer's specific needs and situations .
PARTNERS OF THE METAL JUNCTION (M-JUNCTION ) :

42
HDFC BANK UTI
TechnologyPartners ofMetal-Junction:
Who Sells On Metal-Junction ( M-Junction ) :
JINDAL POWER &SERVICES

43
ADVANTAGES FOR SELLORS AND BUYERS FROM SECONDARY
PRODUCTS :
 Advantages to sellors:
1. Processefficiencythrough reduced time to market.
2. Reduce costand manpower .
3.Reducedinventory due to shortercycle time .
4. Increase revenue through wide reach.
5. Betterprice discovery mechanism .
 Advantages to buyers :
1. Convenience
2. Transparency.
3. Lowercostdue to disintermediation.
4. Fasterfulfillment through value-added-services like E-Payment.
5. Dedicatedsupport.

44
PRODUCTS PROFILE OF BOKARO STEELPLANT :

45
Procedure for Online Forward Auction :
 Lot Formation- Lot is formed in based of type / class / category / grade wise. Each lot
shall has identification mark and a specific lot numberindicating thelocation.
 Inspection of Material ( for material availableon ground ) - The materials offered for
sale are on “AS IS WHERE IS” (AIWIB) and “NO COMPLAINT” basis
 Earnest Money Deposit ( EMD )
 Conductof Forward Auction by M-Junction.
 Award at the Auction - only H1 bidder ( normally the bidder who quotes the highest
price ) is awarded the item being auctioned .
 Acceptance of Offer / Sale Order / Offer Letter
 Security Deposit and Paymenttowardsmaterial value-Thesuccessful biddershall be
required to furnish security deposit ( if applicable) and the amountagainstvalueof
materials including taxes & duties applicableas per details indicated in the
Acceptance of offer / Sale order / Offer letter .
 Release Order / Delivery Order.
Lot value in Rupees EMD
Lot(s) having value up to 25 Lakhs
Rupees.
@ 2 % of lot value.
For lot(s) having value greater than 25
Lakhs Rupees.
Rs. 50,000 /-.

46
 Price Fixation:
 Reserve Price FixationCommittee(RPFC)for Salethrough Electronic
Auction / Open Tender
 A Reserve Price Fixation Committee (RPFC) constituted with the approval of
the Competent Authority for deciding the Reserve Price.
 The RPFC mayconsist of representatives from
 Marketing Department/ Materials Management/Department, Finance,
Dealing Department/Operations & Chief Executive’s Nominee, if any.
 RPFC maybe headed by an executive not below the rank of E-7.
 RPFC shall recommend theReserve Price (RP) for each category of material,
which shall be forwarded in a sealed cover to the head of Materials
ManagementDepartment/ Marketing Departmentand kept confidential
Disposal of Idle Assets:
• Idle assets are those, which are no longer required of intended purpose
and/or retired from active use. These may be categorized as assets becoming
idle
- due to normal/prematurereplacement.
- Being abandoned afterinstallation & commissioning.
- Being found in-operative/uneconomical after
procurement.
 The major reasons for items becoming idle could be either / or a
combination ofthe following:
1. Technologicalup gradations/modernization ofplants/processes.
2. Inherent design defect.

47
3. Non-availability of spares and/or drawings and /or inputs (Raw materials /
consumables/stores etc.)
4. Changein market scenario affecting marketability of product.
5. Changesin pollution control / Safety statutory laws and requirements.
6. Where items have out lived its life.
Procedure for Disposal of Idle Assets:
• Committeefor managementof Idle Assets(CMIA) - Identification,
declarations, processing for write- off and disposal of the Idle Assets .
• Determination of Written Down Value (WDV) - Cost of Assets capitalized in
the books of Accounts less accumulated depreciation
• Write-off losses - Chief Executives and Directors are empowered to write- off
losses.
• Initiate action for identifying the Prospective buyer - Auction for disposal of
Idle Assets. Sameprocedures are followed i.e lot creation, RPFC,etc.
Sale through Fixed Price:
• Mixed Coke- Sale of Mixed Coke (3100 MT) through auction . Revenue
generated Rs 2.76 Cr.
• By Road Dispatch of Mixed Coke at Fixed Price.
• BFG Slag - Initiation of Sale of BFG Slag at Fixed Price
• M/s ACC Ltd is leading customer apartfrom other prospective customers
willing to take at Fixed Price
• Revenue Generated.
•

48
SALES OF SECONDARYPRODUCTS:
 SCRAPS:
Scraps are the recyclable materials leftover from product
manufacturing and consumption such as parts of vehicles ,building
supplies and surplus materials . Unlike waste ,scraps has monetary value
,speciallyrecoveredmetals and non metals for recycling .
BENEFITSOF RECYCLING SCRAPS :
1. 90% savings in raw materials used .
2. 75% saving in energy .
3. 86% reduction in air pollution .
4. 76% reduction in water pollution .
5. 97% reduction in mining wastes .
Every ton of new steelmade from scraps of steelsaves :
 1,115 kg ofiron ore .
 625 kg of coal.
 53 kg of limestone
DESCRIPTION ABOUT SLAG OF B.S.L. :-
Slag is the glass like by-products left over after a desired metal has been
seperated ,i.e., smelted from its raw ore. Slag is usually a mixture of metal oxide
and silicon dioxide. However slag can contain metal sulfides and elemental
metals. While slags are generally used to remove waste in metal smelting, such
as assisting in temperature control of smelting and minimising any reoxidant of
final liquid metal .

49
 METHODOLOGY:
Methodology is considered as the nerve of the project. Without is proper and its
well-organized plan, It is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey
was to collect appropriate data which work as a base for drawing conclusion and
getting results. Therefore, methodology is the way to systematically solve the
research problem. Methodology not only talks of the methods but also logic behind
the methods used in the context of a research study and it explains why a particular
method has been in the preference of the other methods.
RESEARCH DESIGN
 Non-Probability
 Exploratory & Descriptive experimental Research.
The research is primarily both exploratory as well as descriptive in nature. The
sources of information are both primary & secondary.

50
Interpretation:
E- Auction Sale(Yearly Comparison)
ANALYSIS:
By the process ofsale through E-Auction ,the highestsales was
recordedin the year 2007-2008as comparedto the others years.Butin
the current financial year of 2014-15 there was very low sales through
e-auction. In year 2007-08, the net sales was of Rs.45502. After 2007-08
the secondhighestsales was recordedin the year 2006-07, whichwas
slight change in the sales ofRs.1366 lakhs. As in the year more and
more people were interestedin purchasing through e-auction of Rs.
38532 lakhs.
44136 45502
43890
33628
39220 40037
32905
38532
30825
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2006-
07
2007-
08
2008-
09
2009-
10
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
Val.inRs.Lacs
e auction-Recommended for sale (Base Price)

51
Interpretation:
Idle Assets: e auction value( in Rs Lacs)
ANALYSIS:
The value of the Idle Assets through e-auction was
highest in the october of 2013-14 of Rs.930 lacks.This data
shows that more and more people sold their movable
vehciles during october month of 2013-14 for purchasing
new assets.The lowest sale was made during april of year
2013-14 of Rs.35 lakhs only.
35
88
48 78 56
129
930
146 168
224
613
563
259 282
79
114
147
420
62
315
96
55
0 0
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
2013-14 2014-15

52
Interpretation:
BFG Slag ( in Rs Lacs)
ANALYSIS:
The sales of Slag of Bokaro Steel Plant was higherin
november of the FY 2013-14 of Rs.973 lakhs as compared
to others years.And in same month of next year 2014-15
the sales was of Rs.261 lakhs,which was very much lower
than previous year.In 2013-14, the sales of slag was of Rs.
423 lakhs.
322
250
294 298 306 301
243
973
379 369
406 423
340 310 297 275 251
288 313
261 246
142
0 0
0
200
400
600
800
1000
1200
APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR
2013-14 2014-15

53
Interpretation:
Total Sale (Dispatch Value)
ANALYSIS:
The total sales was highest in the year 2014-15 of Rs. 6246
lakhs,which was higherthan previous year of Rs. 4601
lakhs.The total sales is increasng day by day and leading
to the more profit.The lowest sales was recorded in june
of year2013-14 of Rs.3138 lakhs.
5821
4601
3138
3495 3554
5064
5521
6098
4734
3839
5124
6124
3197
6246
3700
3957
44164229 4361
4247 4439
4008
0 0
0
1000
2000
3000
4000
5000
6000
7000
APRILMAYJUNEJULY AUGSEPTOCT NOV DEC JAN FEB MAR
Val.inRs.Lacs
Total Sale (Despatch Value)
201
3-14

54
Dispatch Invoice Value (2013-14 vs 2014-15)

55
Interpretation:
NET SALES REVENUE (Rs./PMT)
ANALYSIS:
The Net Sales Revenue of H P Napthalene was higher in 2012-13
of Rs. 72780 per MT as compared to others years. On the other
hand in 2014-15 it was Rs.71940 per MT. The sale of secondary
steel was higherin 2014-15 of Rs. 31,666 per MT. The Net Sales
Revenue of Crude Benzol was higherin 2014-15 of Rs.71940 per
MT.Net Sales Revenue is increasing with upgration of
technology and modernisation.
31666
30222
30834
30873
27738
39715
48843
42087
35985
27041
71940
72780
57183
48576
52260
0
10000
20000
30000
40000
50000
60000
70000
80000
2014-15 2012-13 2010-11
Rs./pmt
Sec.Steel
Crude Benzol
H P Naphthalene

56
AWARDS AND RECOGNITIONS :
 EXCELLENCE AWARDS
By Institute of Economic Studies.
 Bhartiya Shiromoni Puraskar
By Institute of Economic Studies
 Business Simulation Award
By Institute of Economic Studies
 Employee Volunteering Program of the Year
Apeejay India Volunteer Awards 2011
Industry Accreditations :
NASSCOM
CII (Confederation of Indian Industry )
IIMM

57
CONCLUSION :
Bokaro Steel Plant faced large ups and down in terms of their productivity and
profitability . Its continuous improvement in terms of quality is one of the
flagship for sale . Bokaro contributed in terms of materials , money and men is
being commendable .
Bokaro Steel Plant has faced the problem of coal products last year but still it
has maintained its productivity as per plans and scheduled .BSL had gained
huge marginal profit of Rs. 2148 crore in 2009-10 . Thanks to the
modernization and maintenance that had changed the fortune of BSL . With
the new challenges ,changing market and environment ,BSL has sufficient
capability to look further for future to gain profit . It is backed up by the chief
assets and has a strong and capable team ,who cancaliber to face any problem .
BSL had implemented many steps to strengthening its fundamentals such as
cost reduction ,technology improvement ,lowering borrowing level, persistent
efforts to bring about a positive attitude toward organizational goals among
employees through planned communication ,training ,optimum utilization of
resources .
As the Steel horizon brighten up after a long period of Bloom ,Bokaro makes
most of it and emerges as a leader . Majority of the company buy the Steel
scraps from BSL and also buy iron scraps and melting scraps . Most of the
surveyed companies are dealing with BSL since 40 years and most of them buy
products only from BSL .

58
LIMITATIONS OF THE STUDY :
1. Some of the data were confidential ,therefore they were not available .
2. Time Factor- Time factor was main limitation of the study . Limited time
was given to study .
3.The researchhas focusedhis attention mainly in and around Bokaro .
4. As the major customers of BSL products are not individual persons ,it was
very difficult to formal feedback from them .

59
BIBLOGRAPHY:
 Bokaro Steel Plant (SAIL) Journal .
 Bokaro Steel Plant (SAIL) Brochure .
 Bokaro Steel Plant (SAIL) Manuals .
 Internet :
http://www.sail.co.in/plant _bokaro.asp
Company profile:
http://www.sail.co.in/searchindex1.asp
 Magazine published by SAIL
 Training manual
 Books of organization
 Newspaper

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