SIP REPORT

“A STUDY ON THE PRICING AND SALES
STRATEGY OF SECONDARY AND BY-
PRODUCTS AT SAIL (BOKARO)”
PROJECT REPORT
Submitted by:
Soumya Shrivastava
JIMI2014B/44
Jaipuria Institute of
Management, Indore

Authorisation
Date: 24th August, 2015
To whomsoeverit may concern
This is to certify that Ms. Soumya Shrivastava has done internship at
Steel Authority of India Ltd. (Bokaro) from 11th May2015 to 6th June
2015 on “The pricing and Sales of Subsidiary Products and Idle Assets at
Steel Authority of India Ltd.” under the guidance of Prof. Jagdish
Bhagwat.
Prof. JagdishBhagwat
Faculty Mentor
Jaipuria Institute of Management, Indore

Acknowledgement
An endeavor is not complete and successfultill the people who make it possible
are given due credit for making it possible. I take this opportunity to thank all
those who have made the endeavor of mine successfulfor me and for all.
First and foremost I am very thankful to all the officers of Bokaro steel plant
who really helped a lot and guided me throughout my training session, without
their help I would have been unable to complete my project. I would also like to
extend my heartfelt gratitude to the Director, Jaipuria Institute of Management,
Indore, Dr. Harshvardhan Halve, and all the faculty members of the institute for
providing me this opportunity and an excellent infrastructure and facilities
which helped me complete this project. I would like to especially thank my
faculty mentor Prof. Jagdish Bhagwat for his continuous guidance and support.
The completion of my project would not be possible without these people.

Executive Summary
This study investigates “The pricing and Sales of Subsidiary Products and Idle
Assets at Steel Authority of India Ltd.” This study is done for SAIL; BSL
The present study was undertaken to see the mode of sale and pricing methods
of SecondaryProducts of SAIL. Marketing Department is the newest genesis
from the SAIL and attempts to reach their where no corporatehas ever ventured
so far.
I was to find how auctions, fixed price and tenders are used for marketing
purposes in BSL.
The various steps involved therein 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.
I underwent various stages of problems and difficulties to accomplish the task
of my project work but it was a privilege for me to take this opportunity as a
challenge to study and observe " The Pricing and Sales of Subsidiary Products
and Idle Assets at BSL", which is a unit of SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in a
competitive environment; it is essential that everyone in the company has a
clear understanding of what customer satisfaction means, if the plant aims to
achieve leadership in customer satisfaction. While improved customer
satisfaction is necessary for ensuring prosperity of the company, it must also be
realized that the company’s ability 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 products to total sales, which is pre-determines the
success ofthe company. By selling the Secondaryproductin local market
company is earning profits. It is also creating an employment in small scale
industries and developing the economy.

BOKARO STEEL PLANT
A PARTNER IN NATION BUILDING

TABLE OF CONTENTS
Authorization………………………………………………………………
Acknowledgements………………………………………………………...
Executive Summary/Abstract…………………………………………….
Introduction………………………………………………………… …8-9
Core Values……………………………………………………………...10
Types of Products……………………………………………………11-12
Necessityof Selling the ''SecondaryProducts"…………………..........13
Role of Marketing Department……………………………………...14-15
OrganizationChart of Marketing Department………………………..16
Policies ofMarketing…………………………………………………17-20
Marketing Strategies ofBSL…………………………………………21-22
Planning For Sale of SecondaryProduct……………………………23-24
The Structure of The ProcessofSales and Marketing………………...25
Demand Registrationof BSL…………………………………………….26
Sale of Secondaryand By-Products…………………………………27-29
DisposalofIdle Assets………………………………………………..30-31
Sale through Fixed Price………………………………………………...32
E- Auction Sale (Yearly Comparison)………………………………33-37
Observations………………………………………………………….39-40
Conclusions and Recommendation……………………………………..41
Bibliography……………………………………………………………..42

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 of 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
Customer
Satisfaction
Concern for
People
Consistent
Profitability
Core Values
Commitment
of Excellence

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. Eg. Methane, tar, ammonium
sulphate, slag, etc.
3. Secondary Products: -
These are the defectives or rejected materials due to improper mixing of
chemical components or failure 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

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 the big
industries. Out of this, Steel Scrap 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 earns 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
decides 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

“ROLE OF MARKETING DEPARTMENT”

MARKETING DEPARTMENT OF BOKARO STEELPLANT
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 SecondaryProducts, By-Products/WasteProducts,
and Idle Assets etc.
The Marketing Department’s sales procedures are covered by the guidelines
given by SAIL Corporateoffice DELHI, and is given by CMMG
(CORPORATEMATERIAL MANAGEMENT GROUP), the objective of
which is “To sell the materials in a fair and transparent manner to achieve
maximum possible revenue for 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.
The secondarysection deals with the secondaryProducts, it includes scraps of
iron and steel slag, coaland coke fractions, coal chemicals.
The Marketing development section deals with the MIS and strategic Planning
activity come under this section.

ORGANISTATION CHART OF MARKETING DEPARTMENT(BSL)
GM(Marketing)
Jr. Mgr. (Co-ordn.)/Mktg.
Cord,HK, Admn.& Est. TrainingOfficer
DGM (Mktg.)
Audit,Vigilance,RTI,&otherqueriesreply,
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.,ZincDross,
AmmoniumSulphate&
FerrousSulphate
Manager (Mktg.)
Reports,Price
Monitoring,MIS
Jr. Mgr. (Mktg.)
SecondarySteel,
Safety Officer
Jr. Mgr. (Mktg.)

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 productpricing and related activities, some of the
programs, policies and procedures are as follows:-
I) Positioning the productaccording to the value based place in customer’s
mind.
II) Finalizing the annual sales plan and quantity, monthly, weekly, and daily
rolling program.
III) Optimizing the product-mix by properutilization 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) Periodical market surveys of products to analyze the market position.
VII) Implementation of suggestions received from the customers’ feedback.
VIII) Ensuring 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 productis 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 productwhich 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 depositamount of Rs.1 lakh. The payment for the
material required is to be in advance. The material is supposedto be lifted on
the specified date on accountof delay the party has to pay the difference in the
prices, if there is any increase in subsequentmonth.
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 oncein a month. But the
volatility of the market and poolof 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.
 Forecastof 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 proposedprice. 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, is issued and distributed 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.
CHANNELS
Bokaro steel plant has zero level channels as it directly sells to the customers.
There is no intermediate among producerand consumer. Marketing Department
always remains in contactwith the customers’ extracts information about the
current market situation on the basis of interaction between them.

MARKETING STRATEGIESOF BSL
Steel being an industrial commodity it is very necessary to maintain customer
relationship for profitability and smoothrunning of company.
1. CustomerSatisfaction
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. 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.
Building Customer Relationship
BSL has adopted the philosophy of recognizing the segments of the market and
identifying key customers in each 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. They have easy access
to customers to seek assistance, make proposals and send comments and
compliments.
MARKET DEVELOPMENT
BSL has valued customers groups in identifying their needs specific to that
group, thus segmenting and developing the market for their products. Major
productmodifications are done as per their specific needs of the market segment
thereby creating productdifferentiation packages.
2. STOCKREDUCTION
Giving facilities like doordelivery, road dispatches, credits facility and rounds
the clock stockyard operation.

3 PRICE FIXATION
Pricing is done basically by the CMO. Taking into consideration costof
production, government steps on pricing, certain percentage of profit, price of
raw material, freight charges etc. i.e. pricing is COST PLUS PRICING.
4 DISPATCH
As the productis 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 productthe Finance department calculates the total costof
productas per demand order. Certain receipts and bills quoting the material
code, nature, quantity, and all expenses are sent to connected stockyard. The
productwill be then released to the concerned person after properand complete
payment to the pay-in- authorities is made.

PLANNING FOR SALE OF SECONDARYPRODUCT
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 stockat 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.

PROCEDUREAPPLIED FOR SALE OF SECONDARYPRODUCTS
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 within the "Offer 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 REGISTRATIONOF BSL
Marketing department of BSL sales homogeneous steel scrap is at fixed price.
For this purposethe procedurefor registration of demand and offers is as below:
1. Preference for sale of material given to local parties and those, who are actual
customers. Material is not sold for trade.
2. Sale of material made to re-rolling mills and scrap processingunits 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.

SALE OF SECONDARY AND BY-PRODUCTS
Selling of Secondary& By-Product
This involves a direct marketing process. Themanagement 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
Tender
Inter
Plant
Transfer

Procedurefor Online ForwardAuction
 Lot Formation- Lot is formed in based of type / class / category / grade
wise. Each lot shall have an identification mark and a specific lot number
indicating the location.
 Inspection of Material ( for material available on 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 Payment towards material value-The successful
bidder shall be required to furnish security deposit ( if applicable ) and
the amount against value of materials including taxes & duties applicable
as 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 upto 25
Lakhs Rupees.
@ 2 % of lot value.
For lot(s) having value
greater than 25 Lakhs
Rupees.
Rs. 50,000 /-.

Price Fixation
 Reserve Price FixationCommittee (RPFC)for Sale through
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 may consistof representatives from the Marketing Department
/ Materials Management /Department, Finance, Dealing Department
/Operations & Chief Executive’s Nominee, if any.
 RPFC may be headed by an executive not below the rank of E-7.
 RPFC shall recommend the Reserve Price (RP) for each category of
material, which shall be forwarded in a sealed cover to the head of
Materials Management Department / Marketing Department and kept
confidential

Disposal of Idle Assets
• Idle assets are those, which are no longer required for intended purpose
and/or retired from active use. These may be categorized as assets
becoming idle
-due to normal/premature replacement.
-Being abandoned after installation & commissioning.
- Being found in-operative/uneconomical after procurement.
 The major reasons for items becoming idle could be either / or a
combination of the following:
1. Technological up gradations/modernization of plants/processes.
2. Inherent design defect.
3. Non-availability of spares and/or drawings and /or inputs (Raw materials /
consumables/stores etc.)
4. Change in market scenario affecting marketability of product.
5. Changes in pollution control / Safety statutory laws and requirements.
6. Where items have out lived its life.

Procedure for Disposal of Idle Assets
• Committee for management of Idle Assets (CMIA) - Identification,
declarations, processingfor write- off and disposalof the Idle Assets.
• Determination of Written DownValue (WDV) - Costof Assets
capitalized in the books of Accounts less accumulated depreciation
• Write-off losses - Chief Executives and Directors are empowered to
write- off losses.
• Initiate actionfor identifying the Prospective buyer - Auction for
disposalof Idle Assets. Same procedures 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 apart from other prospective
customers willing to take at Fixed Price
• Revenue Generated

E- Auction Sale(Yearly Comparison)

Idle Assets: e auction value( in Rs Lacs)

Total Sale (Dispatch Value)

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

Observations
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.
1. Majority of the customers responded that other steel plants are
providing secondary and by-products at a lower rate.
2. Most of the Customers responded that they find difficulties while
dealing with BSL.
3. 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.
4. Most of the customers don’tregister 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.
5. Among by-products category of products Benzene, Toluene and
Ammonium sulphate are having highest number of customers.
6. Most of the customers are loyal to BSL because most of the customers
are dealing with Bokaro steel plant for more than 4 years.
7. 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.
8. Quality, availability and transportation are main benefits that the
customers of secondaryand by-products ofBSL receive from Bokaro

steel plant. Only few customers responded that price and discount are
the benefits they receive from BSL.
9. Most of the customers are not happy with the volume limit that they
receive from BSL.
10. 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.
11. Majority of the customers responded that they are happy with the
order handling procedures of BSL.
12. Majority of the customers responded that that they are satisfied with
the overall experience while dealing with Bokaro Steel Plant.

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
secondaryand by-products available in the market. Since, customers are now
conscious aboutcostcutting 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 secondaryand by-products
and also increase its quality.
It was found that most of the customers are purchasing secondarysteel
and by-products fromBSL. 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 secondaryand 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 ofmainly these by-products
have to be increased.
The BSL secondaryand by-products customers are having faith in the
quality of these products. So, this should be maintained at any costand BSL
should have to decrease the price of its secondaryand by-products to maintain
its customer base.

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

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