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ISHAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY

A STUDY ON MARKETING OF SECONDARY PRODUCT & BY

PRODUCT IN SAIL

( BOKARO STEEL PLANT)

A report submitted to IIMT, Greater Noida

As a partial fulfillment of

Full time Postgraduate Diploma in Marketing

Management

SUBMITTED TO: SUBMITTED BY:

Dr.D.K.Garg RAJNISH KUMAR SINGH

Chairman ENR. NO: MMR 4076

IIMT, Gr. Noida PGDMM

Ishan Institute of Management and Technology 2, Knowledge Park-1, Greater Noida, Distt: G.B.Nagar (U.P.)

Website: www.ishanfamily.com, E-mail: [email protected]




PREFACE I Rajnish Kumar Singh, student of Ishan Institute of Management and Technology is

pursuing PGDM (MM) course. And towards the partial fulfillment of it, I have undergone a

summer project for the period of two months (8 weeks) & I am pleased to present the

summer project Report on ³Marketing of Secondary and By-Products in SAIL ( Bokaro Steel

Plant)´

I have put my endeavor to make the objective accomplished in the stipulated time. Being a

neophyte in the highly competitive world of business and in cooperate world, I have come

across difficulties to make the objective a reality. Anyhow with the kind help and genuine

interest formally supported by extreme support of my guide and college authorities, I am

presenting this hand carved efforts.

The purpose of this project is to test the level of competency of an employee based on the

above aspects. Competencies comprise the knowledge, skills, values, and attributes

demonstrated through behavior that results in competent and superior performance.

Competency describes what superior performance actually does on a job that produces

superior results.

Guidance, cooperation, and inspiration are the important factors in the accomplishment of an

assigned task. I am most indebted to those mentioned below for their moral and active

support.

Firstly, I would like to express my deepest sense of gratitude to my parents for rendering

their moral support.

I acknowledge my heartiest thanks to Mr. Govind Burman for his support and esteemed

suggestions during the making of this project.

I would also like to acknowledge my immense gratitude to our honorable chairman sir, Dr.

D.K Garg who has given us this opportunity to work on this summer project.




ACKNOWLEDGEMT

I take the opportunity to express my gratitude to all of them who in some or the other way

helped me to accomplish this project. The study cannot be completed without your guidance,

assistance, inspiration and co-operation.

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. These people have really been kind enough in

providing me all kind available data and information.

I owe my gratitude 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. These people have really been kind enough in providing me all kind

available data and information.

I would like to thank Mr.K.K.Sanyal (AGM, BPP), Mr. A.J.Kacchap (C.M.M., Stores), Mr.

Bharat Singh (Sr.Manager, SSD) Mr.A.K Mishra (AGM, S&C), Mrs.Meena Kamal

(Sr.Manager, Marketing) and Mr. S. Srikantha (Sr.Manager, Marketing) and I must pay

special thanks to Mr. Govind Burman (Jr.Manager. Marketing). All are from Bokaro Steel

Plant.

I also express my thanks to the officers and staff of the Training Institute, Bokaro Steel Plant.

I would also like to thank with my deep sense of gratitude to the chairman of Ishan Institute

Of Management & Technology Dr. D.K. GARG who throughout my session of training

helped me to achieve my desirable goal to perfection.

Rajnish Kumar Singh

Enr. No: - MMR 4076




DECLARATION

The summer training Project on ³Marketing of Secondary Product and By Products in SAIL

(Bokaro Steel Plant)´ under the guidance of Mr. Govind Burman is the original work done by

me. This is the property of Ishan Institute of Management and Technology, and use of this report

without prior permission of the institute will be considered illegal and actionable.

Date: 04-07-09 Signature

(Rajnish Kumar Singh)

Enr. No: - MMR-4076




EXECUTIVE SUMMERY

The study was carried on to observe the marketing of secondary and bi product in SAIL

(Bokaro Steel Plant). Marketing department is the newest genesis from the SAIL and

attempts to reach their where no corporate has ever ventured so far. Eight weeks of training is

too short to learn the marketing strategy of this enterprise. The training in Bokaro Steel Ltd.

was conducted in such a fashion that the trainee could get use to all the aspect and could

understand about what they are going to learn. This training session was of 8 weeks in which

there were 15 days of department visit. In which trainee had to visit different stores and

shops of manufacturing plant units where they use to explain about the functioning of the

departments and then the rest of 40 days trainees had to go to marketing department where

they use to explain us about all the aspect of marketing.

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 "marketing of Secondary products in

B.S.L", 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. Whileimproved 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,




whenever they came. After this I was able to move my project to correct and effective

direction.

Since I had to complete my project within a limited time frame, this made me experience theactual stress of the workplace. This I think will work as real booster when I will go to work

after the completion of the PGDM (MM) course at IIMT, Greater Noida. The way the boss

supported me and his other subordinates was a good example of co ordination and good

manager. This shows that in the corporate world the superior officer should not only take

care of the target fulfilled but also the behavioral aspect of the subordinates.

Working with the colleagues was a great experience as I came to know that how a person can

work as a team in a multifarious industry to achieve the organizational goal. Many a times,

while working, I had to sacrifice my personal feelings and aspirations just to keep the

organizational interests in my mind by giving it the top most priority. Indeed, I always tried

to do justice with my duties even at the cost of my personal life for the time being. But this

could be a success, as I got continuous support from my guide as well as other officers

&Colleagues.

So, at last I would like to thank my institution for providing me with the opportunity to dosummer training am also grateful to the BSL 100% subsidiary of SAIL for providing me all

the assistance in completing my project.




INDEX

SERIAL NO. TOPIC PAGE NO.

1 Preface 02

2 Certificate 03

3 Acknowledgement 04

4 Declaration 05

5 Executive summary 06

6 Literature review 07-08

Chapter 1 Introduction Of Sail

y About SAIL

y SAIL as NAVRATNA company

y

Growth of Steel Industry in Indiaand SAIL as a part of India

y SAIL as an integrated steel plant

13-39

Chapter 2 Product Of Bokaro Steel Plant(BSL)

y Primary Product

y Bi-Product

y Marketable scraps and waste

product

40-53




Chapter 3 Marketing in SAIL (Bokaro Steel Plant)

y Departments of marketing in BSL

y Functions of marketing department

in SAIL (Bokaro Steel Plant)

y Marketing and strategic Planning in

BSL

y CMO (Central marketing

organization)

y Marketing of secondary and bi

product

y Procedure of selling in BSL

y Mode of selling

y E-auction

y Inter house transfer

y Open tender

54-78

Chapter 4 Product Of SAIL (BOKARO STEEL

PLANT)

y About BI PRODUCT and

SECONDARY PRODUCT

79-87

Chapter 5 y Pricing Strategy 88-111




Chapter 6 y Customer List of BSL

y Customer relationship management

112-119

Chapter 7 y Advertisement and Publicity

y Incentive and Other Schemes

120-126

Chapter 8 y Study and analysis of graphs and

data

y SWOT analysis of BSL

y Research and findings

y Suggestions to BSL

y Conclusion

y Bibliography

127-150




OBJECTIVE OF STUDY

Project work has certain objective behind it without any proper objective one cannot plan its

implementation. One heads to have properly well defined objective. If the objective of the

study is not proper then the whole research is of no use.

In Bokaro steel plant there is various section of marketing department. Since I have chosen

"Marketing of Secondary Products and By Products in SAIL (Bokaro Steel Plant)."

main objective was:-

³Market study of secondary product and bi products in BSL and how these are marketed´.

Along with this there were some sub objectives:

y To know what secondary product is and what bi products are and to know how these

products are proved as useful assets.

y To know the pricing of secondary product and bi products.

y To study the methods for customer satisfaction by providing proper services.

y To know the use of secondary product and bi products.

y To know the others terms and conditions for marketing of secondary products.

y Prospective buyers of secondary and by products

y Marketing strategies for selling these products




Chapter 1Introduction of SAIL

y About SAIL (Steel Authority Of India Ltd.)

y SAIL as NAVRATNA company

y Growth of steel industry in India and SAIL as a

part of it

y SAIL as an integrated plant




ABOUT SAIL

STEEL AUTHORITY OF INDIA LIMITED

With a capacity of 4 million tones, Bokaro is the fourth steel plant in public sector in the

country. The site for the steel works is surrounded by River Damodar on the north, Chas-

Ramgrh road on the south, Garga River on the east & Muri ± Chandrapura railway link on

the west, Bokaro is coal based plant.

Bokaro Steel Plant (BSL) is situated in the coal belt of Eastern India, symbolizes India¶s

advancement in the design engineering & consultation of steel plant. Indian Engineers and

Equipment suppliers have played a major role in its construction making. It is the firstindigenous public sector integrated steel plant in India.

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.

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 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. The company has the distinction of being India¶s

largest producer of iron ore and of having the country¶s second largest mines network. This

gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and

dolomite which are inputs for steel making. SAIL's wide ranges 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 34 branch offices and

54 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 Organisation at Ranchi. Our

captive mines are under the control of the Raw Materials Division in Kolkata. The

Environment Management Division and Growth Division of SAIL operate from their

headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

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 INDIA. Therefore, in the 1st

Industrial PolicyResolution 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 crore.

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., Bokaro

Ispat Ltd., Rourkela Ispat Ltd., Durgapur Mishra 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 10.9 MT of crude steel through its four

integrated Steel Plants, at Bokaro, Bokaro, 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 organization.

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 6th April 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-




scalars, 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.

People - The moving force

Bokaro Steel values its people as the fulcrum of all organizational activities. The saga of

Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of

Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the

liberalized era, modernizing its facilities and innovating their way to the top of the heap.

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, coupledwith 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.

WHO OWNS SAIL

SAIL is a public sector undertaking of the Government of India which holds 85.82% of

equity. Other major shareholders are financial institutions with 7.57% stake and individuals

with 3.68% stake.




THE NEW MILLENIUM

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.

Having achieved the initial goal of laying the foundation for the industrial development of

the country. SAIL took up the new challenge of facing the era of liberalized economy and the

emerging competitive scenario in the steel market. On the eve of entering the new

millennium, SAIL launched its Financial and Business restructuring program. The strategy

for the company is to emerge as the lowest cost producer in the global steel market with its

continuous upgrading of a technology and skill manpower. SAIL is moving up steadily in its

competitiveness in the global market. It has the potential to utilize the opportunities and meet

the needs of demanding customers.

UNITS:-

Central Marketing Organization (CMO), Kolkata.

R&D center for Iron and Steel, Ranchi.

Center for Engineering & Technology, Ranchi.

Raw Material Division, Kolkata.

SAIL Consultancy Division, Delhi.

Environment Management Division, Kolkata.

Central Coal Supply Organization, Dhanbad.

Central Growth Work in Kulti, West Bengal.




ABOUT ORGANISATION

RDCIS is the corporate R&D Unit of SAIL and is credited with ISO 9001-2000 QMS

certification. It is the premier research organization in the field of ferrous metallurgy in thecountry. RDCIS attempts to provide the SAIL plants with prompt, innovative and cost-

effective R&D solutions; develop and commercialize improved processes and products;

continually enhance the capability of its human resources to emerge as centre of excellence.

The major efforts of RDCIS are directed towards cost reduction, quality improvement and

value addition to products of SAIL plants and providing application engineering support to

SAIL¶s products at customer¶s end. RDCIS also offers its technological services to various

organizations.

The salient features of the Mission of RDCIS entail the following:

Promote originality, foster creativity and expand knowledge base through the pursuit of

carefully selected R&D programmes

Develop RDCIS¶s human resources and facilities to achieve and sustain technological

excellence

Complement SAIL plant¶s efforts to continuously enhance Customer Satisfaction, Quality,

Productivity, Profitability and Marketability of their products

Functions and Duties:-

Project Management

The technological services extended by RDCIS to SAIL plants and units are mainly in the

mode of R&D projects. The spectrum of R&D projects pursued by RDCIS, both at plants/

units as well as in-house, can be categorized as follows: Plant performance Improvement;

Investigation and Consultancy Assignment; Basic and Scientific Research; Equipment &

Instrument Development. The projects so identified, have well defined objectives,

approaches and activities to accomplish the goal. Projects are identified after joint discussion

between plant and RDCIS personnel to provide solutions to identified problems. Work is




carried out after project is approved by the competent authority in the SAIL plant as well as

RDCIS. Monitoring and review of the projects is done at different levels and mid course

corrections, if any, are also suggested. At the end of the project, the outcome of the work is

well documented after concurrence from the customer who is also partner in the innovation.

The implementation of the innovations is also pursued.

HUMAN RESOURSE

RDCIS is a knowledge-based organization and therefore, human resource is its prime

resource. Development of adequate and appropriate human resource is a constant Endeavour

in the organization. The selection of personnel aims at achieving a right mix in terms of

expertise, specialization and experience.

LABORATORY FACILITIES

Since RDCIS provides solutions in all aspects of iron and steel technology, the Centre has

developed a fully fledged laboratory with state-of-art equipment starting from raw material

characterization to finished product evaluation. The Centre strives to constantly modernize its

facilities and infrastructure that will provide a cutting edge to its research capabilities.

TECHNOLOGY DISSEMINATION

RDCIS organizes Technology Awareness Programmes to enhance the knowledge base and

potential of SAIL engineers and technologists, especially those working on the shop floor, by

sharpening their skill to enhance, analyse and solve technological problems. These

programmes cover a wide range of topics dealing with different technology areas in the steel

plants.

PRODUCT DEVELOPMENT One of the prime focus areas at RDCIS involves development of new products with special

quality attributes. These products are developed in SAIL plants with existing facilities and

subsequently promoted and commercialised through product application and marketing

efforts. The thrust on product development enables the Company to achieve greater market

penetration and share.




TECHNOLOGY MARKETING

RDCIS offers technological services to various organizations in the form of Know-how

transfer of technologies developed by RDCIS, consultancy services, specialized testing

services, and contract research. This helps to establish credibility of the Centre as a

knowledge centre besides generating revenue through external earnings.

INTELLECTUAL CAPITAL

In the current competitive market scenario, it has become important to protect the

innovations resulting from R&D pursuits. This is being accomplished at RDCIS by filing

patents and copyrights under Intellectual Property Rights Act. Enlargement of intellectual

capital base is constantly encouraged in the Centre.

PERIPHERAL DEVELOPMENT

RDCIS considers it important to extend help to economically backward group of persons

living in the society as part of its corporate social responsibility. RDCIS plans and executes

schemes under its peripheral development programme so that help can reach the

economically backward strata including children, women, physically handicapped and the

downtrodden.




SAIL AS A NAVRATNA COMPANY

The tag of a the NAVRATNA company is the most prestigious achievement for anycompany and organization. This is given to only those company who had made anyachievement in their field and is considered as the pride for the country. And SAIL is one of them who had made its own landmark in the production of steel and has mobilized thegrowth of the country. This is surely as a landmark for the success and the achievement for

any organization.But there are certain criteria on the basis of which a company is considered as NAVRATNAcompany and these are defined by some of the most prestigious and honored authority.

What is NAVRATNA Company?

Originally, the term Navratna meant a talisman or ornament composed of nine preciousgems. Later, this symbology was adopted in the courts of King Vikramaditya and the Mughalemperor Akbar, where the Navaratnas were a group of nine extraordinary men in their

respective courts.

The Navratna status is offered to PSEs, which gives a company enhanced financial andoperational autonomy and empowers it to invest up to Rs. 1000 crore or 15% of their networth on a single project without seeking government approval. In a year, these companiescan spend up to 30% of their net worth not exceeding Rs. 1000 cr. They will also have thefreedom to enter joint ventures, form alliances and float subsidiaries abroad.

Navratna status is conferred by Department of Public Enterprises. To be qualified as a Navratna, the company must obtain a score of 60 (out of 100). The score is based on six

parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes) tocapital employed, PBDIT to turnover, EPS (Earning Per Share) and inter-sectoral performance. Additionally, a company must first be a Miniratna and have four independentdirectors on its board before it can be made a Navratna




The list of Navratna company in India are as follows:

1. Bharat Electronics Limited2. Bharat Heavy Electricals Limited3. Bharat Petroleum Corporation Limited4. Coal India Limited5. GAIL (India) Limited6. Hindustan Aeronautics Limited7. Hindustan Petroleum Corporation Limited8. Indian Oil Corporation Limited---Maharatna category company now9. Mahanagar Telephone Nigam Limited10. National Aluminium Company Limited

11. NMDC Limited12. NTPC Limited---Maharatna category company now13. Oil and Natural Gas Corporation Limited----Maharatna category company now14. Oil India Limited15. Power Finance Corporation Limited16. Power Grid Corporation of India Limited17. Rural Electrification Corporation Limited18. Shipping Corporation of India Limited19. Steel Authority of India Limited---Maharatna category company now

In 2009, the government established the Maharatna status, which raises a company's

investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms wouldnow be free to decide on investments up to 15 per cent of their net worth in a project.Earlier, the Navaratna companies could invest up to Rs 1,000 crore without governmentapprovals.

Criteria for Maharatna company:

y Three years with an annual net profit of over Rs. 5,000 crorey Net worth of Rs. 15,000 crorey Turnover of Rs. 25,000 crore

Govt. of India has approved Maharatna status for NTPC,ONGC,IOC and SAIL ref:Times of India report dated 21 May 2010 and with the fast growing industrialization many companiessoon will get this designation.

A navratna PSU is a Public Service Undertaking (PSU) that has been granted navratna status by the Indian Department of Public Enterprise.




The following paragraphs excerpted from "Discover It" (see link, below) explain navratnastatus further:

"To be qualified as a Navaratna, the company must obtain a score of 60 (of the total 100).

The score is based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit Before Depreciation,Interest and Taxes) to capital employed, PBIT to turnover, EPS (Earning per share) and inter-sectoral performance. Additionally, a company must first be a miniratna and must have four independent directors on its board before it can be made a navaratna.

"The navaratna status will empower a company to invest up to Rs. 1000 cr or 15% of their net worth on a single project without seeking government approval. In a year, thesecompanies can spend up to 30% of their net worth not exceeding Rs. 1000 cr. They will alsohave the freedom to enter joint ventures, form alliances and float subsidiaries abroad."

SAIL as Navratna Company:

Steel Authority of India Ltd (SAIL) has issued an internal communication to its employees

which states that workers with chronic ailments, habitual absentees and those with low

productivity should opt for its voluntary retirement scheme (VRS). It states that employees

may have to be transferred to different parts of the country in the interests of the company

and those who do not wish to get transferred should opt for VRS. The VRS has been

introduced for a six-month period ending on August 31, 1998. SAIL has to reduce its

workforce of about 1.86 lakh by 60,000 in the next 4-5 years to ensure its survival.

The government has appointed three non-official directors on the board of the public sector

undertaking, the Steel Authority of India (SAIL) according it the Navratna status. Those

appointed by the government include, Mr Dipankar Basu, former chairman of the State Bank

of India, Mr YRK Reddy, human resources consultant, and Mr Parvinder Singh, chairman of

Ranbaxy. The constitution of the Navratna board confers autonomy on SAIL. SAIL can now

autonomouosly decide on setting up of joint ventures, wholly- owned subsidiaries, strategic

alliances and undertake organisational and personnel restructuring. SAIL plans to exit fromnon-core areas and undertake financial restructuring.




GROWTH OF STEEL INDUSTRY IN INDIA AND SAIL AS A

PART OF IT

India has traditionally been one of the major producers of steel in the world. Till the 1990s

the steel industry of India was regulated and controlled by government policies. After the

economic reforms of the early 1990s, the Indian steel industry has evolved significantly to

conform to global standards.

India has set a vision to be an economically developed nation by 2020. The steel industry is

expected to play a major role in India's economic development in the coming years. The steel

industry of India has a very high growth potential and is expected to register significant

growth in the coming decades. India is expected to emerge as a strong force in the global

steel market in coming years.

The two major aspects that are expected to play a significant role in the growth

of the steel industry in India are -

Abundant availability of iron ore in the country

The country has well established facilities for steel production.

Steel production in India has grown from 17 MT in 1990 to 36 MT in 2003. It is

expected that by 2011, the steel production in India will grow to 66 MT.

The major sectors where consumption of steel is expected to grow in thecoming years are -

Construction

Housing

Ground transportation

Hi-tech engineering industries such as power generation, petrochemicals, fertilizers

The current scenario of the Indian steel industry indicates that there is huge growth potential

in this industry. The per capita-consumption of steel in India, according to latest available

estimates, is only 29 kg. This is much less compared to the global average of 140kg. The per

capita consumption level of developed nations like the United States of America is 400kg. In




this respect, one of the major initiatives that need to be taken is to focus on increasing the

consumption of steel in the rural areas of India. The potential for the growth of consumption

of steel in the rural areas of India for purposes like rural housing, rural infrastructure, etc is

high which needs to be tapped efficiently.

In order to realize the growth potential in the steel industry of India, it is essential to ensure

that the industry can remain competitive. One of the major aspects in this regard is the

availability of inputs. Shortage of inputs like coke has led to increase in costs earlier.

Moreover proper infrastructure facilities like transport infrastructure, power etc are of prime

importance in maintaining the competitiveness of the industry.

Most developed countries have regulations that are aimed to protect the domestic steel

industry. The Indian steel industry has comparatively much lesser protection through

regulations. Proper regulatory measures should be adopted by the government to protect the

domestic steel 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.

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 tonnes 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 million tonnes 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.

OUTLOOK

The outlook for Indian steel industry is very bright. India's lower wages and favorable 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.

GLOBAL SCNARIO

y In 2007 the World Crude Steel output reached 1343.5 million metric tons and showed

a growth of 7.5% over the previous year. It is the fifth consecutive year that world

crude steel production grew by more than 7%. (Source: IISI)

y China remained the world¶s largest Crude Steel producer in 2007 also (489.00 million

metric tons) followed by Japan (112.47 million metric tons) and USA (97.20 million

metric tons). India occupied the 5 th position (53.10 million metric tons) for the

second consecutive year. (Source: IISI)

y The International Iron & Steel Institute (IISI) in its forecast for 2008 has predicted

that 2008 will be another strong year for the steel industry with apparent steel use

rising from 1,202 million metric tonnes in 2007 to 1,282 million metric tonnes in

2008 i.e. by 6.7%. Further, the BRIC (Brazil, Russia, India and China) countries will

continue to lead the growth with an expected increase in production by over 11%

compared to 2007.




DOMESTIC SCENARIO

y The Indian steel industry have entered into a new development stage from 2005-06,

riding high on the resurgent economy and rising demand for steel. Rapid rise in

production has resulted in India becoming the 5th largest producer of steel.y It has been estimated by certain major investment houses, such as Credit Suisse that,

India¶s steel consumption will continue to grow at nearly 16% rate annually, till 2012,

fuelled by demand for construction projects worth US$ 1 trillion. The scope for

raising the total consumption of steel is huge, given that per capita steel consumption

is only 40 kg ± compared to 150 kg across the world and 250 kg in China.

y The National Steel Policy has envisaged steel production to reach 110 million tonnes

by 2019-20. However, based on the assessment of the current ongoing projects, both

in Greenfield and Brownfield, Ministry of Steel has projected that the steel capacity

in the county is likely to be 124.06 million tonnes by 2011-12. Further, based on the

status of MOUs signed by the private producers with the various State Governments,

it is expected that India¶s steel capacity would be nearly 293 million tonne by 2020.

y

PRODUCTION

y Steel industry was deli censed and decontrolled in 1991 & 1992 respectively.

y Today, India is the 7th largest crude steel producer of steel in the world.

y In 2008-09, production of Finished (Carbon) Steel was 51.28 million tons .

y Production of Pig Iron in 2008-09 was 25.9 Million Tonnes.

y The share of Main Producers (i.e. SAIL, RINL and TSL) and secondary producers in

the total production of Finished (Carbon) steel was 33% and 67% respectively during

the period 2008-09.

y

Last 5 year's production of pig iron and finished (carbon) steel is given below




Sail as an integrated steel plant

BOKARO STEEL PLANT

India¶s largest flat steel producer in the public sector, Bokaro Steel Plant (BSL) was designed

to produce flat products like Hot Rolled Coils/Plates/Sheets, Cold Rolled Coils/Sheets, Tin

Mill Black Plates and Galvanised Plain/Corrugated Sheets (GP/GC). Bokaro¶s world class

hot rolled products enjoy excellent acceptance in the international market.

With a saleable steel production capacity of 4.5 millions tones, the plant has been

modernized with continuous casting facilities and has been operating above rated capacity for

the last two years. It is also equipped with a state ±of- the-art Hot strip Mill that produce

quality steels of international standards. A range of special steel products like DMR 249A, E-

460/500/550, IS-8500 Fe540B, SAILCOR, SAILPROP, SAILMEDSi, SAILRIM, API grade

steel, HRNO, SAILMA,WTCR,BSL-46 for auto sector etc., have been introduced after

mordernisation. The plant¶s Steel melting shop, continuous casting shop, slabbing Mill, Hot

strip Mill, Hot Rolled Coil Finishing and Cold Rolling Mill complex are accredited to

ISO9001:2000 QMS standards. The coke and iron zone will also be brought under the fold of

the ISO system before the end of this financial year.

BHILAI STEEL PLANT

Five-time winner of the Prime Minister¶s Trophy for Best Integrated Steel Plant in the

country. Bhilai Steel Plant (BSP) is a major producer of rails, heavy and wide (up to 3600

mm) steel plates as well as structurals. With an annual production capacity of 3.153 MT of

saleable steel, the plant also specializes in other items such as wire rods and merchants

products, including TMT bars and rods branded SAIL-TMT. Facilities for production of long

rails have been installed at the plant¶s Rail & Structural¶s Mill with capabilities enhanced to

produce rails in rolled lengths of 80 meter and welded panels up to 260 meters.

Since BSP is accredited with ISO9001:2000 Quality Management System standards, all

saleable products of the plant come under the ISO umbrella. BSL¶s Plate Mill, Dalli




Mechanised Mines, Rail Mill, Steel Melting Shop 1, Wire Rod Mill and Merchant Mill have,

in addition, received ISO14001:1996 certification for their Environment Management

Systems.

DURGAPUR STEEL PLANT

Durgapur steel plant (DSP) with a saleable steel capacity of 1.586 million tonnes produces

medium structurals, merchant products, scalp and continuously cast billets. Its extra high

strength thermo mechanically treated Bars, branded sales TMT, have proven market

acceptability, DSP is also a major producer of railway producer like forged wheels and axels.

The modernized plant is equipped with state of the art of the technology for quality steel

making. DSP¶s primary areas comprising

Raw Materials Handling Plant, Sinter Plant, Coke Oven & Coal Chemicals, Blast Furnaces &

Steel Melting Shop and entire mills zone consisting of Blooming and Billet Mills, Merchant

Mills , Skelp Mills, Wheel & Axle Plant and various other facilities are covered under

ISO9001:2000 quality assurance certification.

ROURKELA STEEL PLANT

India¶s first integrated steel plant in the public sector, Rourkela Steel Plant (RSP) is a major

producer of diversified range of sophisticated steel products, including plate mill plate, HR

Plate/Coils, CR Sheets/Coils, Galvanized Plain/Corrugated Sheets/Coils, Pipes & Spiral

Weld Pipes, Electrolytic Tinplates and Silicon Steel Sheets. With a saleable steel production

capacity of 1.671 million tones, RSP was the first plant in India to incorporate LD

technology of steel making. It is the first steel plant in the SAIL family to produce 100% of

steel through the cost effective and quality centered continuous casting route. RSP is also the

only plant in SAIL to produce silicon steel for the power sector, high quality pipes for the oil

& gas sector and tinplates for the packaging industry. Almost all major units of the plant are

covered under the ISO9001:2000 certification with silicon steel mill and sinter plant-II being

awarded ISO14001:1996 for Environment Management. The plants Plate Mill is also being

brought under ISO14001:1996.




RSP now has in its fold the central Power Training Institute (CPTI) which has facilities to

impart training in operation and maintenance of power plants and power distribution systems.

CPTI is recognized by the Central Electricity Authority, Govt. of India for conducting such

training.

MAJOR UNITS OF SAIL

STEEL PLANTS

1. Bokaro Steel Plant (BSL) in Jharkhand

2. Durgapur Steel Plant (DSP) in West Bengal3. Rourkela Steel Plant (RSP) in Orissa

4. Bhilai Steel Plant (BSP) in Chhattisgarh

SPECIAL STEEL PLANTS

1. Alloy Steel Plant (ASP) in West Bengal

2. Salem Steel Plant (SSP) in Tamil Nadu

3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka

SUBSIDIARIES

1. Indian Iron & Steel Company Limited (IISCO) in West Bengal

2. Maharashtra Electro smelt Limited (MEL) in Maharashtra

Management Training Institute (MTI) at Ranchi, Jharkhand

Central Power Training Institute (CPTI) at Rourkela, Orissa

SAIL Safety Organisation (SSO) at Ranchi, Jharkhand

Environment Management Division (EMD) at Kolkata, West Bengal

Growth Division (GD) at Kolkata, West Bengal

Central Coal Supply Organisation (CCSO) at Dhanbad, Jharkhand




SPECIAL STEEL PLANTS

ALLOY STEELS PLANT

The pioneer in the area of alloy and special steels production in India, Ally Steels Plant(ASP) was specially designed for casting special steels like Austenitic and Ferritic stainless

steel and a variety of non stainless steels, including bullet proof steel. ASP has one slab-cum-

t ASP has the capacity to produce slabs, Blooms, Bars, Plates and Forged items of over 400

grades in a wide range of sizes, totaling 1.78 lakh tones of saleable steel annually. Among the

value added items produced by the plant are CRM rolls, concast rollers, crane wheels,

springs, hammers grate bars, hot saw blade, shear blade, bright bars, stainless steel liner

plate, etc. ASP also supplies import substitution items to many customers through established

conversion agents. The entire plant is certified to ISO9001:2000 standards.

SALEM STEEL PLANT

Certified for ISO9001:2000 Quality Assurance and ISO 14001:1996 Environmental

Management Systems, Salem Steel Plant (SSP), is one of India¶s leading producers of quality

stainless steels. The plant is capable of rolling 186200 tonnes of hot rolled carbon/stainless

steel flat products and 70000 tonnes of cold-rolled stainless steel sheets/coils annually. SSP¶s

products, branded µSalem Stainless¶ are well accepted in the domestic and international

markets.

The plant has gone beyond its designed capacity in producing thinner gauges and supplies

value-added 0.13 mm thick stainless steel, as well as hot rolled carbon steel in thickness of

1.5, 1.4 and1.25 mm. In hot rolled special grade carbon steel, SSP¶s boiler quality steel

requires special mention. The plant also supplies LPG grade IS: 6240 steel in sheet form. The

plant has developed new applications of its products viz. LPG tanks for automobiles,

stainless steel ceiling fans, corrugated sheets, water tanks, etc.

SSP¶s Blanking Line has an annual capacity to produce 4000 tonnes of ferritic grade coin

blanks or 3600 tonnes of utility blanks. One rupee, 50p and 25p coins are minted from the




blanks supplied by SSP to the Govt. Mints in Noida, Mumbai, Kolkata and Hyderabad. The

plant also supplies ferritic stainless steel strips to Govt. Mints.

Industrial segment using µ Salem Stainless µ include hi-tech areas like atomic power stations,

heavy engineering, chemicals & fertilizers, railways, automobile, construction, dairy & food

processing, bulk solid handling, power, etc.

VISVESVARAYA IRON & STEEL PLANT

Visvesvaraya Iron & Steel Plant (VISL), which applies ISO 9001:2000 Quality Management

System, has infrastructure facilities to produce over 700 grades of high quality hot rolled and

forged alloy and special steel products through Blast Furnace-Basic Oxygen Furnace-Ladle

Refining Furnace-Vacuumed Degassing ± Ingot/Continuous cast (with Electro Magnetic

Stirrer), Rolling Mills, Hydraulic Forging Press and Horizontal Long Forging Machine. It has

an installed capacity of about 205000 tonnes of hot metal 130000 tonnes of saleable steel.

SUBSIDIARIES

INDIAN IRON & STEEL COMPANY LIMITED

The Indian Iron & Steel Co. ltd. (IISCO), originally in the private sector, became a

subsidiary of SAIL in 1977. The integrated steel plant in Burnpur has the capacity to

produce 426,000 tonnes of saleable steel and 254,000 tonnes of pig iron annually. IISCO

also has captive collieries at Chasnalla, Jitpur and Ramnagore. Its mines at Gua, Chiria

and Manoharpur is considered to have Asia¶s largest reserves of iron ore. The productions

facilities of Burnpur are currently being augmented under a plan approved by the Govt. Steps

have been initiated to merge IISCO with SAIL.

IISCO produces a range of steel structural¶s and special sections as well as pig iron. The

plant pioneered the production of center-sill-Z section used in the fabrication of wagons

and Z type sheet pilling section used in the construction of barrages, bridge foundations

and other projects and colliery Arch section used for roof support in the collieries.

IISCO¶s Merchant & Rod Mill is equipped with ISO 9001:2000 certification.




Major Business Units (Commerce junction and Metal junction) so as to independently focus

on:

Specific Requirements of Clients/Customers

Specific procedures for both the functions

Knowledge and Information management for the two functions

OTHER UNITS OF SAIL:

RAW MATERIAL DIVISION

The Raw Material Division (RMD) was formed in 1989 with headquarters in Kolkata for

management of all the captive mines of the SAIL steel plant in the eastern sector. This has

enabled rationalization of raw material supply to the different plants in the region and

achievement of systematic reduction in purchase of iron ore from non-captive sources.




Presently, RMD manages five iron ore mines in Jharkhand and Orissa, and four limestone

and dolomite queries in Madhya Pradesh, Jharkhand and Orissa.

RMD is planning to expand capacity in view of the enhanced production plans of the steel

plants and cope with the requirement of high quality iron ore. The lime stone queries under

RMD are located at Kuteshwar, Purnapani and Bhawnathpur. Dolomite quarry is at

Tulsidamar.

RMD has centralized workshop at Bolani for repair/overhauling of engines & transmission of

heavy earthmoving machinery operating at the mines.

Iron Ore Mines

Mines State Annual capacity(MT)

Kiriburu Jharkhand 4.25

Meghahatuburu Jharkhand 4.30

Bolani Orissa 3.00

Barsua Orissa 2.01

Kalta Orissa 1.15




Besides the above, RMD has three customer service office at Rourkela, Durgapur and

Bokaro for coordination with the steel plants. Two liaison offices are also maintained at

Bhubaneswar and New Delhi for better coordination with government agencies and other

statutory authorities.




Chapter 2

Products of Bokaro Steel Plant( BSL)

y Main product

y Bi product

y Marketable scrap and waste materials




Main product or Primary product

HR coils and sheet:

Hot Rolled Coils Sheets

Rationalized sizes of Hot Rolled Coil

Thickness (mm) Width (mm) 1.6 930, 940, 960, 1040, 1130 1.8 930, 940, 960, 1040, 1130, 1160,1250 2.0, 2.2 930, 940, 960, 1000, 1020, 1040, 1130, 1160, 1250, 1310, 1400, 1420 2.5, 2.8 930, 940, 960, 1000, 1020, 1040, 1130, 1160, 1250, 1310, 1400, 1420, 1425 3.1, 3.5, 3.8 930, 940, 960, 1000, 1040, 1130, 1160, 1250, 1310, 1400, 1420, 1425 4.3, 4.6, 930, 940, 960, 1000, 1040, 1130, 1160, 1250, 1310, 1400, 1420, 1425, 1550 4.8 930, 1000, 1040, 1130, 1250, 1310, 1400, 1420, 1425 5 930, 1000, 1040, 1130, 1250, 1310, 1370, 1400, 1420, 1500, 1550, 1730, 1829 5.1 930, 1000, 1040, 1130, 1250, 1310, 1370, 1500, 1550, 1730, 1829 5.6, 6

930, 1000, 1040, 1130, 1250, 1310, 1370, 1400, 1420, 1500, 1550, 1730, 1829

6.2, 7, 8, 8.6, 9.2, 10 930, 1000, 1040, 1130, 1250, 1310, 1370, 1400, 1420, 1550, 1730, 1829 11,12,14,16 1040, 1130, 1250, 1310, 1370, 1400, 1420 1550, 1730

Coils can also be supplied in 1830 mm width and other sizes. Inner diameter of coils: 850 mmOuter diameter of coils: 2300 mm (max)Coil weight: 29 tones max.

Rationalized sizes of Hot Rolled Sheets

Thickness Width (mm) Length (mm) 2.00 mm (14G) 1000, 1100, 1250 2500 2.50 mm (12G), 2.90mm, 3.15 mm (10G), 3.55 mm (9G), 4.00 mm (8G)

1000, 1100, 1250, 1400 2500, 4000, 4500

Thickness and width tolerances are as per IS 1852/ 1985. Closer tolerances can also besupplied on demand.

Packaging: Bare bundles with cross-wise steel strip. Packet weight: 7 - 18 tonnes. Marking: Paint marked on the top sheet of the bundle OR Sticker /label on top sheet of bundle with required details.

Common Grades for Hot Rolled Coils and Sheets: IS 10748/1995 grades I, II, III, IS 5986/1992 Fe 410, 510, API 5L grades A, B, X42, X46, X52, X56, X60, X65, SAIL-

WTCR, IS 11513/1985 grades O, D, DD, EDD, IS 1079/ 1994 grades O, D, DD, EDD, IS2062/ 1999, Medium Carbon Strapping Steel, MC-11, C-30, 40, 50, Medium SiliconElectrical Steel, IS 6240/1999, SAILMA, IS 2062 grades B, C, IS 5986/1992 Fe 330, 360, 410, 510, SAILRIM, E-34, E-38, SAPH 440, IS 2062/1999 Grade B with copper, SAILCOR / IRSM-41, IS 8500/1992, SAE 1020, SAE 1012, SAE 1541.

Plates:




Rationalised sizes of HR Plates

Thickness Width (mm) Length (mm) 5, 6, 7, 8, 10 1000, 1100, 1250, 1400, 1500,

1600, 1700, 1800 4500, 5000, 5600, 6300, 8000

N

ote: Each piece cannot be inspected on both sides. T

he top can be seen in runningcondition.

Plates manufactured by Bokaro Steel Plantas per following specifications

IS 2062/ 1999 Grades B, C; SAILMA 300HI/350HI; E38/ E34;IS 8500/ 1992; SAILCOR/ IRSM-41; BSK-46

C R Coils and sheets:

Cold Rolled Coils and Sheets

Rationalised sizes of CR Coils

Thickness (mm) Width (mm)

0.27, 0.30, 0.35 900, 905, 910, 914, 920

0.40, 0.45 900, 905, 910, 914, 920, 1000, 1005, 1010, 1020

0.5 900, 905, 910, 914, 920, 1000, 1005, 1010, 1020, 1105, 1120

0.55, 0.58 900, 905, 910, 914, 920, 1000, 1005, 1010, 1020, 1105

0.60 900, 905, 910, 914, 920, 1000, 1005, 1010, 1020, 1100, 1105, 1120

0.63 900, 905, 910, 914, 920, 1000, 1005, 1010, 1020, 1100, 1105, 1120, 1219, 1250, 1270

0.70 900, 905, 910, 914, 920, 1000, 1005, 1010, 1020, 1105, 1219, 1250, 1270

0.8, 0.9 900, 914, 920, 1000, 1020, 1120, 1219, 1250, 1270, 1420

1.00 900, 914, 920, 1000, 1020, 1120, 1219, 1250, 1270, 1320,

1420, 1520, 1580 1.25,1.50, 1.60, 1.85

900, 914, 920, 1000, 1020, 1120, 1219, 1250, 1270, 1320, 1420, 1520, 1580, 1620

2.00 900, 914, 920, 1020, 1120, 1219, 1250, 1270, 1320, 1420, 1520, 1580, 1620

Bitumen Size

0.63 876, 896, 1120

Barrel Size

0.9 914, 920, 1225, 1320

1, 1.2, 1.25 914, 920, 1225, 1320, 1580

Coil outer diameter : 2200 mm, maximum.

Coil internal diameter: 510 mm (for 0. 50 m and below, and for 0.63 mmfor width up to 1020 mm) and 600 mm (for others). Coil weight: 6 -23 tonnes (as per size)

Tolerance as per IS - 513/1994 Common Grades: IS 513/ 1994 (O, D, DD & EDD), IRSM 41, SAILCOR, SAILRIM, HSCR - I&II.

Bokaro Steel Plant also produces cold rolled coils and sheets to thefollowing foreign specifications : ASTM A 568/ 366, BS-1449-Pt-1, JIS G 3141 SPCC/CD, DIN-1263 St 12.03 or equivalent, if sufficient orders are available.




Rationalised sizes of Cold Rolled Sheets

Thickness ( mm) Width ( mm ) Length (mm ) 0.60, 0.63, 0.70 900, 1000, 1100, 1250 2000, 2500, 3000, 3600

0.80, 0.90 900, 1000, 1100, 1250, 1400

2000, 2500, 3000, 3600

100, 1.25, 1.50, 1.60, 1.85, 2.00

900, 1000, 1100, 1250, 1400, 1500

2000, 2500, 3000, 3600

Barrel Size

1.0, 1.25 915, 920 1815

1.0,1.25 1315, 1320 1970, 2000

Common Grades: IS 513/ 1994, IRSM 41, SAILCORCR coils /sheets are supplied in oiled condition as per customers'requirements.

Tolerance as per IS - 513/ 1994.

Packaging: CR Coils Coils are first packed with paper and high-density polythene and thensecured with steel strapping. A coil is strapped with three eye and twocircumferential straps. For identification, one sticker and one metallictag with a sticker are provided. These are then loaded into wagonswith the eye of the coil in horizontal position. Straps again unitisethem.

Packaging: CR Sheets These are packed in packets of 3 - 10 tonnes each and covered withhigh density polythene and paper. Thereafter, these are bound withsteel straps. They also have stickers inside the packets and metal tags

attached to the strips.

Tolerances as per IS 513/ 1994Tolerance on Thickness of Sheets

Tolerance on Thickness for different widths

Nominal thickness

mm

Up to 1250 mm Above

1250Up to1600mm

Above

1600mm

Up to 0.25 ± 0.03

Above 0.25 up to0.40

± 0.04

Above 0.40 up to

0.60

± 0.05 ± 0.06


± 0.06 ± 0.07 ± 0.08


± 0.08 ± 0.09 ± 0.10


± 0.09 ± 0.10 ± 0.12


± 0.11 ± 0.12 ± 0.14


± 0.12 ± 0.14 ± 0.16




Tolerance on Width of Sheets Width of Sheets Tolerance

Up to 1250 mm + 7, - 0

Above 1250 mm + 10, - 0

Tolerance on Length of Sheets Length of Sheets Tolerance

Up to 2000 mm + 15, -0

Above 2000 mm + 0.75% of length, - 0

Applications Specification Size Application

Full hard IS 513 O

un-annealed

0.27 to 0.60 mm

thickness

Coated Sheets

SAILNOXIS 513 O (Sk)/ D(K)

Bitumen and Barrel sizes Packaging

SAILPRESSIS 513 D/ DD/ EDD

All sizes Automobile

IS 513 O (Sk)/ D

(K)

0.8 to 2 mm thickness Precision tubes

SAILCOR 0.63 to 2 mm thickness Railway wagons

IS 513 O/ D withCu

0.63 to 2 mm thickness Corrosion resistanceapplications

SAILR IM 0.56 to 0.9 mm thickness Cycle manufacturing

IS 513 O, D, DD(K),EDD (K)

0.8 to 2 mm Household appliances

HSCR All sizes High strength applications infurniture and industrial storage

IS 513 O (Sk), D(Sk)

All sizes Fabrication

GP Sheets and Coils and GC Sheets:

Galvanised Plain Sheets and Coils Galvanised Corrugated Sheets

Galvanised steel sheets / coils are Zinc coated Cold Rolled sheets / coils as per IS 513/ 1994 (O and D grades) as per customers' requirements.

Rationalised sizes of Galvanised Plain Coils

Thickness (mm ) Width (mm) 0.3, 0.35, 0.4, 0.45 900, 1000 0.5, 0.55, 0.6 900, 1000, 1100 0.63, 0.8, 1, 1.25, 1.4, 1.6 900, 1000, 1100, 1200, 1220

Rationalised sizes of Galvanised Plain Sheets

Thickness (mm) Width (mm ) Length (mm) 0.3, 0.35, 0.4, 0.45 900, 1000 2500, 3000 0.5, 0.55, 0.6 900, 1000, 1100 2500, 3000 0.63, 0.8, 1, 1.25, 1.4, 1.6 900, 1000, 1100, 1200, 1220 2500, 3000




Width 1250 mm can be supplied on negotiation

Rationalised sizes of Galvanised Corrugated Sheets

Thickness (mm) Width (mm ) Length (mm) 0.3, 0.35, 0.4, 0.45, 0.5, 0.55, 0.6, 0.63, 0.8, 1, 1.25, 1.4, 1.6

800, 880, 885 2500, 3000, 3600

Packet Weight of GP/GC Sheets

Thickness (mm) Width (mm ) Length (mm) BSL 5 - 11 tonnes 5 -11 tonnes

Special Coated Products from BSL (i) Galbo GP coils: Base Material is CRCA Grade 'D' (Sk) which is Skin Passed andstretcher levelled. Sheets will have normal spangles.

(ii) Galbo MSS GP coils: The base material is same as in (i). Sheets will have virtually noobservable spangles.

Various zinc coatings available from BSL as per Specification IS277/1992 areas follows

Class of coating Zinc wt (gm/ m2)

CL IV 275 CL V 220 CL VI 200 CL VII 180 CL VIII 120

GP / GC Sheets from Bokaro Steel Plant are supplied under the brand name

"SAIL JYOTI".

Applications

Material Application GP AC ducts, coolers, storage bins, auto sector, trunk, bucket, ice box GC Roofing

HOT ROLLED COILS, SHEETS AND SKELP

Hot rolled coils, sheets and scalp (narrow coil), are

the largest product category of the company in terms

of both sales volume and revenue. Hot rolled coils




are primarily used for making pipes and have many direct industrial and manufacturing

applications, including the construction of tanks, railway cars, bicycle frames, ships,

engineering and military equipment and automobile and truck wheels, frames and body parts.

Hot rolled coils are also used as feedstock for cold rolling mills where they undergo further

processing. Hot rolled coils are also delivered to the company's own cold rolling mills and

silicon sheet mill and pipe plant in a wide range of widths and thicknesses as the feedstock

for higher value-added steel products. The company is the largest producer of hot rolled

coils, sheets and scalp in India.

SEMI-FINISHED PRODUCTS

The company produces semi-finished products,

including blooms, billets and slabs, which are

converted into finished products in the company's

processing plant and, to a lesser extent, sold to re-

rollers for conversion to finished products.

PLATES

Steel plates are used mainly for the manufacture of

bridges, steel structures, ships, large diameter pipes,

storage tanks, boilers, railway wagons and pressure




vessels. The company also produces weatherproof steel plates for the construction of railcars.

The company is currently the largest producer of steel plates in India with a domestic market

share of more than 80 per cent for these products. The company is the only producer of wide

and heavy plate products in India.

COLD ROLLED PRODUCTS

Cold rolling of hot rolled products produces a

superior surface finish, improves the physical

properties of the steel, such as tensile strength, and

reduces its thickness to precise gauges. As a result,

cold rolled products generally command higher

prices than hot rolled products. The products of the cold rolling mill include cold rolled

sheets and coils, which are used primarily for precision tubes, containers, bicycles, furniture

and for use by the automobile industry to produce car body panels. Cold rolled products are

also used for further processing, including for color coating, galvanizing and tinning. The

company also produces further processed cold rolled products, including galvanized sheets

and tin plates.

RAILWAY PRODUCTS

Railway products, including rails, wheels and axles, sleeper and fish plates (which are

used to connect and strengthen rails), are produced through a process of hot rolling blooms

in the finishing mills and forging ingots and blooms in the forging press or hammer.




Railway products are used primarily to upgrade and

expand the existing railway network in India.

BARS AND RODS

The company produces steel bars and rods through

a process of hot rolling billets in the finishing mills.

Reinforcement steel and wire rods are primarily

used by the construction industry. The company is

one of the largest producers of reinforcement bars

in India which are primarily sold to the construction

industry.




SPECIALITY PRODUCTS

Specialty products include electrical sheets, tin plates and

pipes. Electrical sheets are cold rolled products of silicon

steel for electrical machinery. Tin plates are cold rolled

steel electrolytic ally coated with tin for food packaging.

Pipes are longitudinally or spirally welded from hot

rolled coils for conveying such things as water, oil and

gas.

STRUCTURALS

Structural steel products are produced through a process of hot rolling in the section or

structural mills. They are long steel products with cross sections of various shapes. I-

beams, channels and angle steel are used in mining, the construction of tunnels, factory

structures, transmission towers, bridges, ships railways and other infrastructure projects

ALLOY AND STAINLESS PRODUCTS

In addition to the steel products indicated above, SAIL produces a wide range of alloy

steel products at ASP, SSP and VISL. Elements including chromium, nickel, vanadium

and molybdenum are used in the alloy mixture to impart special properties to steel. These

alloy steels are primarily used for sophisticated applications, including in the automobile,

railway and defense industries.

A wide variety of alloy and stainless steel plates, hot rolled sheets, cold rolled sheets, bars,

billets, blooms, forgings and die blocks are manufactured at ASP in an Electric Arc

Furnace. SAIL is able to produce different qualities of alloy steels to meet the

requirements of its customers. To increase steel's corrosion resistance properties, nickel

and chromium are used in the making of stainless steel. SSP produces cold rolled stainless

steel coils and sheets with thickness ranging from 0.3 mm to 6 mm and width ranging

from 500 mm to 1,250 mm.




BI PRODUCT:

Nitration-grade Benzene Nitration-grade Toluene

Light Solvent Naphtha

Still Bottom OilHot Pressed Naphthalene

Anthracene OilExtra-hard Pitch

Hard-medium Pitch (solid/ liquid)

Ammonium Sulphate

Pitch Creosote MixtureBF Granulated SlagLiquid Nitrogen

Phenol Fraction

These are the products which are formed while making of the core product. They are

produced simultaneously with the main product and are useful for the other processes of

plant and can earn revenue also.

These are the main by-products sold by the plant:

A. Benzyl products (Benzene)

Place of production- Bokaro steel plant

Mode of delivery - railway tank wagons, road tankers in loose condition

Uses- it is used as an important raw material for various drugs and dyes. Benzene

hexa chloride is used as a pesticide. It is also used in the manufacturing of phenol,

DDT, nylon-6 etc.

B. Toluene (Nitration grade)


Mode of delivery- railway tank wagons

Uses- It is used as a solvent in many chemical reactions; artificial

Sweetening; paint manufacturing; rubber industries; adhesives

Making of printing ink

C. Xylene

Place of production- Bokaro steel plantMode of delivery- railway tank wagons

Uses- Paints, thinners & varnish, rubber industry and printing ink.

D. Light solvent naphtha






Uses- as solvent, starting material for dyes and printing ink.

E. Still bottom oil


Mode of delivery- railway tank wagons/road tankers.

Uses- mixed with other materials and is used various purposes like roof tar filling to

make the roof of buildings water-leak proof, rubber paint for vehicles, industrial oil

etc.

F. Extra hard pitch


Mode of delivery- in gunny bags in loose condition.

Uses- in aluminum industries as a binding material for anode.

G. Soft pitch


Mode of delivery- in gunny bags in loose condition.

Uses- it is used in production of pitch fiber pipes, roof binders, in preparation of road

tar, building materials, sheeting, tilling etc. it is also used as refractory brick.

H. Hot pressed naphthalene


Mode of delivery- in gunny bags in loose condition.Uses- Dye intermediate, as an insecticide, dispersing agent.




Marketable scrap and waste material:

There are various types of scrap, which is generated from the particular prime products.

Some brief summaries are given here: -

1. PCM SCRAP

This is a scrap generated in the pig-casting machine and consists of Splashing, PCM runners

and fires are in the fix range of up to 1.0 tonnes per piece.

2. BF RUNNER SCRAP

Generated in the blast furnace cast houses in the form of runner jams etc the maximum fix

per piece is up to 2 tones. This scrap contain amount of slag.

3. UNPROCESSED STEEL

Generated in the Steel melting shops in slag cups and metal ladles. As the skulls are quite

broad in dimensions, some of them are required to be cut into sizes suitable for loading into

trucks. These skulls are sold in the fix ranges up to 2 tons per piece.

4. SBIM SCRAP

This consists of semi broken ingot mould and bottom part as scrap and is in fix range up to 2tons per piece.

5. COBBLED SCRAP

The cobbled scrap arises from wire rod mill and includes some rejected coils and binding

wires also.

6. REJECTED ROLLS.

Cast iron rolls rejected steels rolls.

7. MILL CUTTINGNS

Rail and structural mill cuttings, merchant mill cuttings, rail cuttings, plate end sharing

rejected slabs, Slabs cuttings, miss rolled slabs, and wire rod cuttings are included in this type

of scrap.




COLLECTION OF SCRAP

1. All scraps identify the metallic scrap generated in the production, process and lying in the

shop. The shops collected the scrap with the help of overhead cranes and stock them for

loading into wagons.

2. Rejected rails and sleepers lying near the railways track inside the plant are collected at

such points from where loading and collection by truck is possible.

3. Crane facility is provided for loading the scrap into the truck whenever cutting or

processing not possible on the spot.

4. Scrap & Salvage department is responsible for overall coordination of scrap collection

from the entire plant. For this each shop nominate one executive for ensuring the clearance of

scrap from the shop.

5. Head of Marketing and customer service department requires the progress on scrap

collection on weekly basis.

6. Scrap & Salvage department makes suitable schedule for collection of scraps and intimates

the date of collection to respective shops.




Chapter 3

Marketing in SAIL ( Bokaro Steel Plant )

y Department of marketing in BSL

y Functions of marketing department in BSL

y Marketing and strategic planning in BSL

y CMO ( Central marketing organization )

y

M

arketing of secondary and bi produ

ct

y Procedure of selling in BSL

y Modes of selling




Departments of marketing in BSL:

Marketing department is one of department Material Management in BSL which is having

responsibility to market its Secondary Products and By Products like pig iron, and fertilizers

(calcium ammonium nitrate [named³SONA´]), Ammonium sulphate [named

³RAJA´], and

coal chemicals like Benzene, Xylene.

The marketing is done in two ways.

(a) Marketing of prime products where sales activity is co-ordinate by central marketing

organization.

(b) Marketing of secondary products and coal chemicals are done directly by sale of product

by B.S.L. Marketing of these products are conducted by various sections by marketing

department of Bokaro Steel plants. It is engaged, with marketing of all products for home

sale or export.

The 2.5 Million tones section is mainly related with prime products. This section includes

Merchant Mill (MM), Wire Rod Mill (WRM), Rail and Structural Mill (RSM) and Billet and

Blooming Mill.

The related Products are:

MM - Angle, channel, beams, rounds and TOR

WRM - Wire rods, U - structured.

RSM - Rail and Heavy structural

BBM - Billet and Blooms

The 4.0 Million tones section also 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 comeunder this section. In addition to the above outstation market development groups are

functioning at Kolkata, Mumbai and New Delhi. The Export section deals with the activities

of the exports in respect of Iron and Steel items produced by Bokaro steel plant.




MARKETING DEPRTMENT DIVIDED INTO VARIOUS DEPARTMENTS

Market Development and strategic planning

Secondary Product

Coal Chemicals

Merchant Mill / Wire Rod Mill

Rail and Structural Mill.

Billet and Bloom Mill.

Plate mill.




GM(Marketing)

AGM

Sr. Manager

Astt. Manager

Manager Manager

Manager

PriceMonitoring, MIS, ERP,

ETC

Dy. Manager

Asstt. Mgr

(Co-ord)

House keeping




FUNCTION OF MARKETING DEPARTMENT IN BSL:

To monitor the orders issued by CMO, So that these orders can fulfilled in time.

Put pressure on CMO, to get orders for an underutilized mill.

To sell all the secondary products directly i.e. directly by BSL and by CMO.

On day to day basis it takes care of the dispatches i.e. daily dispatch are checked.

MARKETING AND STRAGTEGIC PLANNING IN BSL:

Marketing & Strategic 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:-

Positioning the product a value based place in customer mind.

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.

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

Receiving Enquiries and complaints, cancellation of orders etc.

Coordinating the works of mills and traffic department so as to maximizedispatches.

Co-ordinations with CMO from stages of enquiry, for exports, development of

new Profiles, sections, modification of product scheduling till the orders are

completed.

Development of new qualities of steel.

Periodical market surveys of products to analyze the market position.

Implementation of suggestions received from the customer¶s as feedback.

Ensure customer satisfaction by meeting customers regularly; provide redress to

their problems and fulfillment of demand.




CMO (Central marketing organization):

Central Marketing Organization (CMO) is India's largest marketing home. It has spread its

wings far and wide from Srinagar in the North to Cochin in the South and Dhimapur in East

to Ahmadabad in the west.

All SAIL Product are marketed in India through C.M.O. to ensure quality and prompt

dispatch of product, CMO keeps in touch with producing units as well as the transport and

shipping sectors. It operates through the network of stockyards, dockyards, Branch sales

offices, consignment agents and Extension counter.

CMO has got responsibility to sell pig iron and mild steel products manufacture by BSL,

DSP, RSP, and BSL, having its headquarters at Ispat Bhavan 40 Chouringee Road, Kolkata71. CMO has got 40 Branches spread throughout the country with stockyards for storing and

selling Iron & Steel materials of the plants.

Branch manager having other colleagues including finance executive to help B.M. in day-to-

day operations.

The network of branches is divided into Four regions as given below: -

Regions Branches Attached

Northern region,New Delhi Agra, Allahabad, Faridabad, Ghaziabad,

Kanpur, Lucknow, Delhi, Chandigarh,

Jalandher, Jammu

Ludhiana and Mandi Govindgarh.

Western Region,

Mumbai

Ahmadabad, Baroda, Pune, Mumbai, Nagpur,

Bokaro, Indore, Gwalior, Jabalpur, Jaipur &

Kota.

Eastern Region,

Kolkata

Bhubaneswar, Bokaro, Kolkata, Durgapur

Guwahati, Howrah, Patna, New Bongaigoan &

Rourkela.

Southern Region,

Chennai

Bangalore, Chennai, Cochin, Coimbatore,

Hyderabad, Pondicherry, Trichy & Vijayawada




In addition to above, one zonal office is functioning in Guwahati. CMO has got transport and

shipping department at Visakhapatnam to handle the export and import consignment at the

different ports. These ports are

Kolkata

Para deep Haldia

Visakhapatnam

Marketing of secondary and bi product:

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

1. BSL is always in touch in market and tries 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. DISPATCH




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.

PROCEDURE FOR SELLING:

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. The sale order is

issued on the basis of each financial year and the security deposit of each sale order is carried

over to the next year.

8. Based on the deposit made by the party, finance department intimates to marketing

department about release of requisite scrap for supply. Marketing department prepares

release orders, which are treated by MRD, as delivery order.

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 ³offer 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 ³Die Registration Certificate ³etc.




MODES OF SELLING:

1. E-Auction Sale.

2. Fixed Price Sale.

3. Tender.

4. Interplant Transfer.

Transfer to PSU




FLOW CHART OF E-AUCTION

Advertisement of dates/type

of materials on SAILwebsite/News a er

Posting of lot details to beauctioned on SAIL / Metal

Junction website

Inspection of lots bycu tomer

Auction conducted onmetaljunction.com

Report of Auction by

metaljunction.com

Reserve Price OpeningCommittee meetin

Recommendations

Approval for Sale

Issue of Offer Letter




AUCTION

Auction refers to a forum where the requirement for one/more lots of an item is stated and

the participants (bidders) are required to bid down the price to be selected to supply therequirement.

ONLINE AUCTION

Online auctions refer to those auctions conducted through the Internet with the bidders (from

one or more locations) simultaneously bidding to be selected for supplying the item/s on

auction. In other words, the venue for the auction is on an Internet website/ platform. The

"Service Provider's" website assigned by "Service Provider" would constitute venue for the

purpose of the online auction.

AWARDS AT AUCTION

In a single winner format, only one bidder (normally the bidder who quotes the highest

price) is awarded all the units of the item being auctioned. The bidder quoting the highest

price is normally allotted the item.

CLIENT

Client is the individual/business entity who has contracted "Service Provider" to conduct

such auction. In case of auction, the purpose would be the genuine intent to sell the selected

items/Lot to the bidders desiring to buy these items from the Client.

BIDDER

Bidder is the individual/business entity participating in the auction, intending to buy the

items/Lots from the Client. To be become a Bidder in the auction, a business entity has tosecure client approval for participation and also provide written assent to the General Rules

and Regulations.




AUCTION ENGINE

Auction Engine refers to the software that encapsulates the entire auction environment,

processing logic and information flows. "Service Provider" is the sole owner of the auction

engine and retains exclusive right over the utilization of the same.

TIMING OG ONLINE BIDDING

All the timings of the Online Bid shall be based on the time indicated by the Server hosting

the Auction Engine. It shall be the endeavor of "Service Provider" to ensure that the Server

Time reflects as closely as possible the Indian Standard Time (IST) i.e. GMT + 0530 hrs.

However, in the event of any deviations between the Server Time and the Indian Standard

Time, the functioning of the Auction Engine (Launch, operation, and closure) would be

guided by the Server Time. Bidders are advised to refresh both the windows of the Auction

Module check the exact Server Time (displayed in both the windows).

PREVIEW TIME

Preview Time refers to the period of time that is provided prior to the commencement of

bidding. This is to facilitate approved participants to view the auction details such as item

specifications, bidding details and bidding rules. The purpose is also to familiarize participants with the functionality and screens of the auction mechanism. It is not mandatory

for "Service Provider" to provide Preview Time.

START TIME

Start time refers to the time of commencement of the conduct of the online auction. It signals

the commencement of the Price Discovery process through competitive bidding.

DURATION OF AUCTION

It refers to the length of time the price discovery process is allowed to continue by accepting

bids from competing bidders. The duration of the auction would normally be for a pre-

specified period of time. However, the bidding rules may state the conditions when the pre-

specified duration may be curtailed/ extended. The conditions include:




Curtailment of auction duration in the event of no bids for a specified period of time

(Inactivity Time) Automatic extension in the event of bids being entered towards the end of

the scheduled duration to facilitate the other bidders to view and react to the bid.

AUTO EXTENSION OF AUCTION TIMING

In the event of bids in the last few minutes of the scheduled bid time, the Bid Timings are

automatically extended for a specified period from each such bid. Such Auto Extension shall

continue until no bids are placed for the specified period (Engine remains inactive for the

specified period). The Inactivity Time for Auto Extension purpose is normally X minutes.

"Service Provider" however retains the right to change the same. The Inactivity Time

applicable for the particular Online Bid shall be visible to the bidders under the Bidding

Rules module on the engine.

END OF AUCTION

End of the Auction refers to the termination of the auction proceedings signaling an end to

the price discovery process.

PROCEDURE OF E-AUCTION

Advertisement/posting of dates and types of materials to be auctioned in SAIL website and

various news papers (Local & National) every 15th to 20th of the month for the next month,

1. Posting of details of lots to be auctioned one week prior to the date of auction, on the

website of SAIL and metal Junction.com

2. Inspection of lots to be auctioned by customers.

3. Auction is held on www. Metal Junction.com

4. Report of auction conducted is give by Metal Junction.com




5. Meeting of reserve price opening committee and their recommendation.

6. Approval for sale of lots recommended by RP opening committee.

7. Issue of offer to the customers, based on approval of chief Executives.

In this method the defective materials from all the mills is arranged in heaps of 100-150 tones

to be sold by auction. Generally auction sale takes place ones in a month. Representative

from all the re-rolling mills turn up during auction and they bid for the available material.

The raw material need of this mill is being made by the plant and the availability of the re-

rollable has increased the re-rolling mill to develop very fast. The plant extends all types of

facilities and assistance to these small scale units, which to turn give scope for more

employment, and then the material is lifted on the terms and conditions as mentioned in the

tenders.

GENERAL RULES AND REGULATION GOVERNING CONDUCT OF

ONLINE AUCTIONS ON THE ³SERVICE PROVIDER´ PLATFORM

INTRODUCTION:

This Online Forward Auction is being conducted for Bokaro Steel plant, Steel Authority of

India Ltd (hereinafter referred as the ³Client¶¶) on the Auction Platform of

metaljunction.com, (hereinafter referred as ³Service Provider´).

The General Rules and Regulations provided herein govern the conduct of on line forward

Auctions arranged by ³Service provider´ on its Auction Platform. These rules cover the

roles and responsibilities of the parties in the online Forward Auctions on the Auction

Platform. Acceptance in-Toto to these General Rules and Regulations governing conduct

of online auctions, and Terms and Conditions for Sale of Materials by tender or online

auction, of Bokaro Steel Plant is a pre ± requisite for securing participation in the

online auctions.




The key terms pertaining to the online Forward Auctions are provided in the ³Annexure-D´.

Prospective bidders are advised to read through the same.

ROLE OF ³SERVICE PROVIDER´

1. ³Service Provider¶ is the agency (operator) primarily providing the service of the Forward

auction to the ³client´.

2. Finalization of the auction items in consultation with the client.

the same to the Bokaro steel Plant Client.

3. Defining of bidding rules for each auction in consultation with the client.

Enhancing bidder awareness of and comfort with the auction mechanism and bidding

rules.

4. Enlarging the customer base by introducing new bidders.

5. Input of the Auction items and defining the bidding rule in the auction engine.Providing

access to the approved bidders to participate in the Auction.

6. Summarizing the Auction proceedings and communicate the outcome to the Client.

7. The responsibility of fulfillment of the contract rests between the bidders and the client

and the responsibility of the³Service Provider´ shall be restricted to the extent of the

services provided by them.

ROLE OF BIDDER

The role of the bidder is outlined below:

The bidder would participate in the auction with the aim of bidding to secure the auctioned

item in the auction. The bidder would be provided access to the Auction through a ³User ID´

protected by a ³Password´. The bidder needs to ensure that the ³User ID´ and ³Password´ is

not revealed to unauthorized persons. Bidders are also requested to change the password

allocated to them by the ³Service Provider´ to keep their confidentiality. However it would

be bidder¶s sole responsibility to ensure the security and privacy of the same and he/they

would not hold the ³Client´ / ³Service Provider´ responsible in any manner whatsoever for

any misuse of these user IDs and/or Password. Access to the auction mechanism shall be




provided to all the approved bidders subsequent to obtaining their written consent to the

General Rules & Regulations and the Letter of Interest. Payment of Earnest Money Deposit

(EMD) as decided by the client minimum 3 days before the of the Forward auction will be

one of the necessary conditions for participating in the auction.

Bidders hereby confirm that they shall commit to lift the items/Lots (being bid for) at the

price entered by them in the auction engine AND at the terms and conditions specified herein

by the Client. All Prices entered shall be legally binding on the bidders. Bidders are strongly

advised to exercise due diligence while placing bids. Failure to honor the bids placed during

online bidding shall render the bidders liable for penal action as mentioned at point no 12 of

the notice for Forward Auction i.e. Forfeiture of the EMD and debarring them for future

participation for 6 months.

In the event of winning an allotment in the auction mechanism, the bidder shall commit to

fulfill outlined obligations under the contract.

The bidders shall bid on the terms specified by the client & place their bid in the auction

engine in the manner specified by ³Service Provider´. The bidders shall not stipulate any

conditions on their own unless the terms of the client (the client¶s terms & conditions)

expressly permit such conditions being stipulated by the bidder. Bids entered with conditions

attached shall be considered Conditional bids & ³service provider´ retains the right of

rejecting these bids even without intimating the client.

BIDDING RULES

The Bidding Rules refer to the information and terms defined specifically for a particular

auction. The purpose of the Bidding rules is to provide approved bidders with the

information and terms specific to the auction in which they are bidding. This would include:

1. Definition of the unit bidding.

2. Start Time and duration of the auction.3. Any extension of the duration of the auction in the event of bids

Being received towards the end of the pre-specified duration.

4. Start Bid Price.

5. Specified Unit for Bidding.




6. Price Increments and any reduction in the price increment in the auction in the event of

inactivity.

7. Other attributes (informational/non-negotiable in nature).

While it shall be the endeavor of ³Service Provider´ to specify these rules at the earliest for

each online auction, the ³Service Provider´ shall retain the right to delay the announcement

of these biddings rules or modify rules specified earlier at the time of the online bid. These

details would be available to the bidders on the Auction Engine at the time of bidding.

Participation in the auction process presumes complete awareness and understanding of the

bidding rules.

CONDUCT OF THE AUCTION

Only those bidders who have been approved by the ³Client´ and handed over stamped and

manually signed ³General Rules and Regulations governing conduct of online auction along

with Letter of Interest, required EMD amount and other necessary documents to the ³Service

Provider´ at least 3 days prior to the start of online auction will be given³Login ID´ and

³PASSWORD´ to enable them view and participate in online auction. However a time of 10

working days shall be provided for in-between the date of the Online Auction Notice and the

date of Online Forward auction so as to give sufficient time to the eligible bidders to be ready

in all respect for taking part in the Online Forward auction.

The Auction shall be conducted on pre-specified date. The Key Terms pertaining to the

conduct of Auction such as ³START TIME´, ³DURATION´, ³END TIME´ AND

³AUTO EXTENSION FACILITY´ Shall be specified separately for each Auction.

³Service provider´ retains the right to cancel or reschedule the auction, with the approval of

the Competent Authority of the Client, on any of the following reasons:




1. The number of confirmed bidders is deemed insufficient to conduct the auction.

2. Some of the confirmed bidders are unable to access the module due to infrastructure

problems such as sustained power failure or telecommunication breakdown.

3. There are no bids, which are equal to or below Start Bid Price.

4. Any other reason which in the opinion of ³Service Provider´ / ³Client´ requires such

action to be initiated.

5. The duration of auction may also vary from the pre-specified period of time either on

account of termination of the auction by ³Service Provider´ on the advice of the Client

Or

5. In case of situations where it is felt that continuance of the auction proceedings is

prejudicial to the smooth conduct and / or the integrity of the auction process.

Or

6. Due to Auto Extension during the Auction, duration may increase from specified period.

In the event of any problems being faced in the smooth conduct of the auction, ³Service

Provider´ with the approval of the Competent Authority of the Client, shall have the right to

undertake one or more of the following steps:

1. Cancellation/ premature termination of the auction with/ without a

Subsequent rerun of the auction on a mutually decided date.

2. Cancellation of a bid.

3. Locking / deactivate a bidder¶s account (suspension of operations in the

Account), etc.

In case of failure of net connection, bidder will give his best price to the ³Service Provider´.

³Service Provider´ will bid on behalf of the bidder with the minimum increment until the bid

price reaches the best price offered by the bidder, by proxy bidding mechanism.




The best price communicated by the bidder will have to be authenticated by written

confirmation or fax to the ³Service Provider´ and will be kept confidential between the

³Service Provider´ and the bidder. Bidder will be bound by the price offered.

LIABILITY OF ³SERVICE PROVIDER ́

³Service Provider´ shall not be liable to the client/ bidders participating in the auction or any

other person(s) for:

1. Any breach of contract by any of the parties in the fulfillment of the underlying contract.

2. Any delays in initiating the online auction or postponement / cancellation of the online

auction proceedings due to any problem with the hardware / software / infrastructure

facilities or any other shortcomings.

While, reasonable care and diligence will be taken by³Service Provider´ in discharge of its

responsibilities such as design of the online bid, communication of bid details and rules,

guidance to client/ bidders in accessing the Auction Engine and placing bids, etc. the bidders

shall specifically indemnify ³Service Provider´ from all liabilities for any shortcomings on

these aspects. It is clearly understood that these activities are undertaken by ³Service

Provider´ to assist the bidders in participation but the ultimate responsibility on all these

counts lies totally with the bidders.

RIGHT OF THE CLIENT

The Client reserves the right to partially or totally accept or reject any / all bids placed in the

Online Auction without assigning any reason whatsoever. The decision of the client would

be final and binding on the bidder in any such case.




CONFIDENTIALITY CLAUSE

³Service Provider´ undertakes to handle any sensitive information provided by the client or

confirmed bidders for the auctions conducted with utmost trust and confidentiality.

JURISDICTION

Any disputes relating to the online auction module shall be subject to the sole jurisdiction of

Court of Law having jurisdictions over the Plant from where the materials are being sold. On

line Auction conducted at Bokaro Steel Plant shall exclusive jurisdiction of Bokaro Civil

Court.

TERMS AND CONDITIONS FOR THE SALE OF MATERIALS BY ON

LINE AUCTION / TENDER FROM BOKARO STEEL PLANT

MANAGEMENT: The Management will mean the Managing Director, Steel Authority of

India Limited, Bokaro Steel Plant or any officer authorized by him to act on his behalf.

PURCHASER: The Purchaser will mean the successful bidder whose bid has been

accepted under the terms of the online auction/tender process.

TERMS AND CONDITIONS

Bids are accepted on the assumption that the bidders are aware for what they are bidding for

that the principle of ³Caveat Emptor´ shall apply. The sale is on the basis of ³AS IS

WHERE IS´. The materials will be lifted from the site of storage with all faults and errors

in description or otherwise, if any. Quantity, Quality, Size measurement, marks and number

stated in the tender documents are approximate and no warranty or guarantee should be

implied. The bidders/Tenderer are advised to inspect the materials before offering their

prices.

Inspection of Stores/Site: Interested parties will be permitted to see the materials from 9.30

Hrs to 4.30 Hrs daily on working days. Necessary entry passes may be obtained from the

Receptionist/ CISF.




Chapter 4

Products of SAIL (Bokaro Steel Plant)

About bi product and secondary product




ABOUT PRODUCTS OF SAIL:

By products of Coke OvensThe Gas generated in the Coke oven batteries during carbonization process is handledand cleaned in the By Product Plant. During the process of cleaning the Gas some ByProducts are separated out and clean Gas is used as fuel in the plant. Following processare involved in cleaning the gas.

GAS CONDENSATE PLANT (GCP):In gas condensate plant number of exhausters are installed which sucks the gas generatedin the batteries and sends to the desired destination for further processing. Another

function of the exhauster is to maintain steady suction as per requirement so as tomaintain the hydraulic main pressure. Liquid (tar and ammonia liquor) and gas areseparated at the separator and the liquid is processed at gas condensate pump house(GCPH). Most of the Tar is separated here and sent to Tar distillation plant. Ammonialiquor (Flushing liquor) is recirculated to the batteries.

AMMONIUM SULPHATE PLANT (ASP):Raw coke oven gas from GCP is passed through the saturators filled with Sulphuric Acid(H2SO4), where ammonia present in the gas is precipitated in the form of ammoniumsulphate. Acidity of the saturator liquor is maintained at 3 % to 5 %. This ammoniumsulphate is sold as Fertilizer.BENZOL RECOVERY PLANT:

Benzol present in the raw coke oven gas is removed in this unit. The gas is passedthrough solar oil / Wash oil in the scrubbers. The benzol gets absorbed in the oil. Benzolrich oil is fed to distillation unit where oil and crude benzol are separated. The oil isreused in the scrubbers. The clean coke oven gas is used by the consumers through gasnet work maintained by Energy Management Department.BENZOL RECTIFICATION PLANT:

Light crude benzol from benzol recovery plant is further processed in this unit andfollowing by products are recovered:(a) Benzene(b) Toluene(c) Xylene

TAR DISTILLATION PLANT (TDP):Tar recovered from GCPH is further processed in TDP. The main products of TDP are:(a) Tar (b) Pitch(c) Pitch Creosote Mixture ( PCM )(d) Naphthalene

ACID PLANT:




Sulphuric acid is produced in acid plant by DCDA (Double Conversion DoubleAbsorption) process. In this process sulphur is converted to Sulphur tri oxide (SO3) in presence of catalyst Vanadium pent oxide (V2O5) and then to Sulphuric acid. This acid isused in Ammonium Sulphate plant for removal of ammonia from raw coke oven gas.

PETP / BOD PLANT:

In Phenolic Effluent Treatment Plant (PETP) or Biological Oxygen Demand (BOD)Plant, the contaminated water generated from whole of coke oven is treated to make itclean from the effluents with the help of Bacteria. The treated water is then used for quenching hot coke in the quenching towers.The norms for different effluent after treatment at BOD plant are:Ammonia : 50ppmPhenol : 1ppmCyanide : 0.2ppmTar & Oil : 10ppmThe most important byproduct of Coke oven is the raw Coke oven gas. The basicconstituents of clean coke oven gas are:

Hydrogen - 50 to 60%Methane - 25 to 28%Carbon Monoxide - 6 to 8%Carbon Dioxide - 3 to 4%Other Hydrocarbons - 2 to 2.5% Nitrogen - 2 to 5%Oxygen - 0.2 to 0.4%Calorific value - 4300 kcal /m3

SECONDARY STEEL MAKINGObjectiveAchieving the required properties of steel often requires a high degree of control over carbon, phosphorus, sulphur, nitrogen, hydrogen and oxygen contents. Individually or incombination, these elements mainly determine material properties such as formability,strength, toughness, weldability, and corrosion behaviour.There are limits to the metallurgical treatments that can be given to molten metal in high performance melting units, such as converters or electric arc furnaces. The nitrogen and phosphorus content can be reduced to low levels in the converter but very low carbon,sulphur, oxygen and hydrogen contents (< 2 ppm) can only be obtained by subsequentladle treatment. To ensure appropriate conditioning of steel before the casting process,the alloying of steel to target analysis and special refining treatments are carried out at theladle metallurgy stand.The objectives of secondary steelmaking can be summarized as follows:� Refining and deoxidation� Removal of deoxidation products (Mn0, SiO2, Al2O3)� Desulphurization to very low levels (< 0,008%)� Homogenisation of steel composition� Temperature adjustment for casting, if necessary by reheating (ladle furnace)




� Hydrogen removal to very low levels by vacuum treatment.The high oxygen content of the converter steel would result in large blow-hole formationduring solidification. Removal of the excess oxygen ("killing") is therefore vital beforesubsequent casting of the steel. Steels treated in this way are described as killed steels.All secondary steelmaking processes allow deoxidising agents to be added to the ladle so

that deoxidation in the converter vessel is not necessary.Deoxidation can be performed by the following elements classified by increasingdeoxidation capacity; carbon - manganese - silicon - aluminium - titanium. The most popular are silicon and aluminium.After addition, time must be allowed for the reaction to occur and for homogeneity to beachieved before determination of the final oxygen content using EMF probes(electrochemical probe for soluble oxygen content).

Deoxidation ProcessAs most of these deoxidation agents form insoluble oxides, which would result indetrimental inclusions in the solid steel, they have to be removed by one of the following

processes during the subsequent refining stage:511. Argon stirring and/or injection of reactants (CaSi, and/or lime based fluxes) achieves:� Homogeneous steel composition and temperature� Removal of deoxidation products� Desulphurisation of aluminium-killed steel grades� Sulphide inclusion shape control.Argon stirring can be done by refractory lined lance (Top lance) or by means of porous plug made by high allumina material (bottom purging). Top lance is used when bottom purging fails.1. Ladle furnace

Stirring of the melt by argon or by an inductive stirring equipment and arc heating of the melt (low electric power, typical 200 KVA/t) allows:� long treatment times� high ferro-alloy additions� high degree of removal of deoxidation products due to long treatment under optimized conditions� homogeneous steel composition and temperature� desulphurisation, if vigorous stirring by argon.In ladle furnace exhaust gases are cleaned by means of bag filters.2. Vacuum-Treatment: RH process (Ruhrstahl-Heraeus) and tank degassing unit.In the RH process the steel is sucked from the ladle by gas injection into one leg of the

vacuum chamber and the treated steel flows back to the ladle through the second leg. Inthe tank degasser process, the steel ladle is placed in a vacuum tank and the steel melt isvigorously stirred by argon injected through porous plugs in the bottom of the ladle.Millibar is term used for measurement of vacuum. Steam is used for creating vacuum.Vacuum treatment achieves:� reduction of the hydrogen content to less than 2 ppm� considerable decarburisation of steel to less than 30 ppm when oxygen is blown by a lance (RH - OB)




� alloying under vacuum� homogeneous steel composition, high degree of cleanness from deoxidation productsHigh temperature losses (50 - 100_C) are a disadvantage; therefore high superheat of themelt prior to this process is essential.

For most secondary steelmaking techniques it is either desirable or essential to stir theliquid steel. Gentle stirring is sufficient for inclusion removal; non-metallic inclusions are brought into contact with liquid slag on top of the melt where they can be fixed. For degassing and desulphurisation however, violent stirring is necessary to increase thesurface of steel exposed to vacuum (H-removal) or to mix the steel and slag for gooddesulphurisation efficiency.

SECONDARY AND BY PRODUCTS OF BSL

Apart from the core steel products there are a number of other products which are obtained

during the different processes of steel making. Some of the products are recycled to be reusedand rest is sold in the market. This project deals with the marketing of these products in

detail...

Some of the secondary products are:

MRCP 5-45 MM

DEFECTIVE FM SLAB

DEFECTIVE GC SHEET

CR COIL ENDS FROM SPM I & II

UACE FROM HDCL

CP>39-65 MM

OLD MX HR & CR

DEFECTIVE CCD SLAB

AMG HR PLATE

COBBLE PLATES

AMG HR SHEET

BI-PRODUCTS

These are the products which are formed while making of the core product. They are

produced simultaneously with the main product and are useful for the other processes of

plant and can earn revenue also.




These are the main by-products sold by the plant:

A. Benzyl products (Benzene)


Mode of delivery - railway tank wagons, road tankers in loose condition

Uses- it is used as an important raw material for various drugs and dyes. Benzene

hexa chloride is used as a pesticide. It is also used in the manufacturing of phenol,

DDT, nylon-6 etc.

B. Toluene (Nitration grade)



Uses- It is used as a solvent in many chemical reactions; artificial

Sweetening; paint manufacturing; rubber industries; adhesives

Making of printing ink

I. Xylene



Uses- Paints, thinners & varnish, rubber industry and printing ink.

J. Light solvent naphtha



Uses- as solvent, starting material for dyes and printing ink.

K. Still bottom oil





Generated in the blast furnace cast houses in the form of runner jams etc the maximum fix

per piece is up to 2 tones. This scrap contain amount of slag.

3. UNPROCESSED STEEL

Generated in the Steel melting shops in slag cups and metal ladles. As the skulls are quite broad in dimensions, some of them are required to be cut into sizes suitable for loading into

trucks. These skulls are sold in the fix ranges up to 2 tons per piece.

4. SBIM SCRAP

This consists of semi broken ingot mould and bottom part as scrap and is in fix range up to 2

tons per piece.

5. COBBLED SCRAP The cobbled scrap arises from wire rod mill and includes some rejected coils and binding

wires also.

6. REJECTED ROLLS.

Cast iron rolls rejected steels rolls.

7. MILL CUTTINGNS

Rail and structural mill cuttings, merchant mill cuttings, rail cuttings, plate end sharing

rejected slabs, Slabs cuttings, miss rolled slabs, and wire rod cuttings are included in this type

of scrap.

COLLECTION OF SCRAP

1. All scraps identify the metallic scrap generated in the production, process and lying in the

shop. The shops collected the scrap with the help of overhead cranes and stock them for loading into wagons.

2. Rejected rails and sleepers lying near the railways track inside the plant are collected at

such points from where loading and collection by truck is possible.




3. Crane facility is provided for loading the scrap into the truck whenever cutting or

processing not possible on the spot.

4. Scrap & Salvage department is responsible for overall coordination of scrap collection

from the entire plant. For this each shop nominate one executive for ensuring the clearance of

scrap from the shop.

Head of Marketing and customer service department requires the progress on scrap collection

on weekly bas

Scrap & Salvage department makes suitable schedule for collection of scraps and intimates

the date of collection to respective shops




CHAPTER 5

PRICING STRATEGY




PRICING STRATEGY AND PROCEDURE OF SALE:

PROCEDURE OF SALE THROUGH FIXED PRICE

1. General Sale notice for different items to be sold is posted on SAIL website and

advertise in various newspapers (Local and National) between every 15th to 20th of the

month for the next month,

2. For requisition of materials, applications are invited from customers bet 25 th -30th/31st

of every month.

3. Allocation of material to various customers is done as per approved procedure of

priority allocation.

4. Offer letters are issued to the customers.

5. Price applicable will be the price rising at the time of dispatch.

TENDER FORMS

The tenderer will sign on each page of the tender documents from Annexure B to E, terms

and conditions of sales, schedule etc. In token of acceptance thereof. However, the signature

on the tender schedule along with the terms and conditions shall be deemed to be acceptance

of all terms and conditions of sale & schedule and other documents forming parts of the

online auction / tender.




Earnest Money: Each tender/ online auction will be accompanied by an Earnest Money

Deposit in the form of Demand Drafts/ Pay Order/ Banker¶s Cheques in the name of ³Steel

Authority of India Limited, Bokaro Steel Plant´, payable at any scheduled nationalized Bank

at Bokaro Steel City or Chas Branch. The amount of Earnest Money will be stipulated in the

invitation to on line auction/tender. Cheque/Cash will not be accepted towards earnest

money deposit, it is not possible to adjust earnest money from any sum of money due from

the SAIL Bokaro Steel Plant, on account of pending bill security deposit or earnest money

paid towards another on line auction.

Submission of Online auction/ Tender documents: Documents will be submitted by the date

and time stipulated in the Invitation to on line auction/Tender to the appropriate authority.

The documents shall enclose the Demand Draft/ BC/PO towards the Earnest Money. The

intending buyers may submit their documents either personally or through Daak / courier to

the office of METAL JUNCTION.COM as per Annexure F

Any document / application for tender/ online auction received before the publication of the

advertisement or after due date and time fixed as per point no 2 of the notice shall not be

considered.

Successful Bidders will have to pay Security Deposit (SD) @ 3% of the total quantity of

material as per bid rate in the form of DD / PO / BC drawn on any nationalized bank in

favour of SAIL/Bokaro Steel Plant payable at Bokaro Steel City or Chas within 5 days from

the date of issue of Offer Letter for issue of sale order. The material cost along with the

applicable ED and Sales Tax etc shall have to be deposited by the buyer in the form of DD /

PO / BC drawn on any nationalized bank in favour of SAIL/Bokaro Steel Plant payable at

Bokaro Steel City or Chas within 7 days from the date of issue of Offer Letter for the issue of

PIM CUM DO. No money whatsoever lying at BSL on account of the party except Credit

Note issued by BSL on account of past purchase shall be adjusted against any cost of

material and all the intending buyers have to deposit the same a fresh. Delay in payment by

the buyer may be permitted with interest @ 24% per annum for 15 days only from the last




due date of payment as per Offer letter. Delay in payment is not permitted for security

deposit. The delayed payment shall not entitle a party for extra lifting time.

In the event of failure on the part of the bidder to pay the Security Deposit against each or

any lot within specified period, the Earnest Money Deposit (EMD) of the bidder will be

forfeited and they shall be debarred from participating in future auctions for next six months

by Metal Junction. The successful party shall have to lift the entire material falling under the

category of items for which he has participated and is the H1 bidder within the period and

from the area specified in the sale order. The lifting time allowed shall be counted from the

date of issue of sale order.

In the event of failure in lifting the material by the party within stipulated time, the party may

be allowed to lift the balance quantity to complete the tonnage/clear the site from the

purchased material. A time extension may be granted to the buyer on request and payment of

ground rent @ 5% of the Basic value of left over quantity of material for extension up to 15

days and 10% of the Basic value of left over quantity of material for extension up to 30 days.

No extension beyond one month shall be granted. Extension granted shall be counted from

the next date of delivery order validity for the purpose of ground rent.

Validity of Offers: The Bid/quotations shall remain valid for 15 days from the date of award

of auction/opening of tender.

(a) In case the date of online auction becomes a holiday the auction will be opened on

the next working day.

(b) The Management reserves the right to accept or reject any or all the online auction/

tenders without assigning any reasons thereof at any stage.

(A) Conditional Online auction Auction/Tenders: Conditional bids will not be

considered.




(a) When the H1 price of a lot/item is approved, the purchaser shall be notified by an

Offer Letter, which will be sent on E-mail/Fax/by hand/through courier. The offer

letter will indicate full details namely the particulars of the materials, quantity,

accepted rate, sale value, sales tax, other taxes, amount deposited towards earnest

money and the date of making payment.

(b) Security Deposit: The refund of the security deposit is subject to the satisfactory

execution of the order. The Management will be entitled to recover from the security

deposit all the money due to the Plant concerning the sale.

(c) In the event of failure on part of the bidder to make full payment within the date

specified in the Offer letter, the Management may at its option cancel the offer/ sale

relating to the lot/ items forfeiting the earnest money & security deposit without

issuing any prior notice to the tenderers/ bidders.

PAYMENT: On receipt of the Offer letter, the purchaser will deposit the amount as per

details indicated in the Offer letter, by Demand Drafts or Pay Order or Banker¶s

cheque, drawn in favour of Steel Authority of India Ltd, Bokaro Steel Plant,

payable at Bokaro Steel City or Chas. Cheques/Cash will not be accepted towards

payment, however credit note issued by BSL towards balance amount of any

previous purchase shall be acceptable only towards material cost and not against

Security Deposit.

EXTENSION OF DATE OF PAYMENT

Delay in payment of material value by the buyer may be permitted only for 15 days from

the last due date of payment as per Offer Letter with an interest @ 24% per annum. No delay

in payment will be allowed for security deposit: All taxes / excise duty under the local, state,

central or any other law shall be payable by the purchaser in addition to the sale value, as

applicable for each item at the rates prevailing on the date of delivery.




For all the purpose the date of DA in case of Road Dispatch and date of RR in case of Rail

dispatch will be deemed to be the date of delivery.

a) DELIVERY ORDER AND DELIVERY: - On receipt of payment from the purchaser,

BSL will issue a PIM CUM Delivery Order (PIM CUM DO) which will enable the

purchaser to take delivery of the materials from the stock holder. The Bidder/ Tenderer

is required to sign the PIM CUM Delivery order (PIM CUM DO). If this is not possible

and if the Bidder/ tenderer desires to take delivery through his authorized representative,

he must authorize persons by a letter of authority in the prescribed format on non-

judicial stamp paper of Rs.5 duly notarized, which shall be presented to the appropriate

Management. The letter of authority shall bear the photograph and specimen signature

of the authorized representative duly attested by the Bidder/ renderer. BSL may, in its

entire discretion decline to act on any such authority and it shall be in all case, for the

purchaser to satisfy the stockholder that the authority is genuine.

Delivery by proxy will be at the purchaser¶s sole responsibility and no risk and no claim

shall lie against the Management on account, whatsoever, if Delivery is effected to

wrong person. The option of delivery of any item by Rail or Road shall lie with BSL

Management. In case of Rail Delivery, rail under load, siding charge, demurrage etc.

shall have to be paid by the buyer along with cost of material.

b) ACTUAL DELIVERY/LIFTING: The buyer /his authorized representative shall lift

the material from the lot/area allotted on the basis of PIM CUM Delivery Order (PIM CUM

DO) in terms of tonnage/ number/lot/measurement. In case of big equipment/Plant/Unit

sold, where whether the entire Plant/Equipment/Unit is lifted in one or different parts/lots,

the delivery shall be on the basis of the prices quoted is for the entire unit/equipment/plant.

For extra tonnage of the item, proportionate extra payment shall be required to be made by

the parties with reference of the item mentioned in the tender/ PIM CUM Delivery Order

(PIM CUM DO).

c) WEIGHMENT: The weighment of material as recorded on BSL¶s weigh-

bridge/reflected in DA/RR shall be final and binding.




1. (A) DELIVERY TIME FOR REMOVAL OF GOODS: The delivery of the materials

will be effected ³in situ´ by the Management. Time is the essence of the contract.

The goods sold will be removed by the buyer from the site within validity of the sale

order. Delivery of the materials will be made during working hours on all working

days on presentation of PIM CUM Delivery Order (PIM CUM DO) by the purchaser

to the officer in charge, who may suspend the delivery for a particular period of time

for want of any clarification or other technical / operation reasons. The buyer will

make their own arrangement for collection / removal and transportation of the items/

lots purchased and will not be entitled to claim any facilities or assistance for the

transport/ removal of the goods/ lots from the Plant premise. The Management may,

subject to the availability, extend at its discretion certain facilities such as cranes etc.

on chargeable basis or otherwise for handling the lot. The fact that such application

has been made to the Management or any delay on the part of the Management to

grant such facilities does not entitle the purchaser for any extension of the delivery

date.

(b) The removal of the materials within the stipulated period is not subject to the

availability or otherwise of labour, wagons and such other factors as climaticconditions and transport etc. which is the responsibility of the purchaser.

(c) However the Management may, consider allowing extra lifting time in special

circumstances/ situation when lifting could not be done due to reasons such as strikes,

Bandh, failure of loading equipment/EDP computer system or any other unforeseen

reasons etc.

2. (a) RAILWAYS SIDING FACILITIES: The purchasers may, at the discretion of

the Management be permitted to use the Plant siding at the purchaser¶s cost, risk

and arrangements, granting of permission is subject to Railway restrictions from time

to time. The purchaser will have to pay the Management in advance the siding

charges as applicable from the time to time. Necessary Security Deposit payment

will be made by the purchaser on this account, the purchaser will be liable for the




payment of al the charges payable to the Railways whenever the Plant siding is used

under their own arrangement or through the Plant in case of delivery by Rail.

Delivery by rail shall be subject to wagon availability and Railway permission. On

this account no claim/complaint shall be entertained by BSL.

(b) No picking, sorting, cutting, cleaning or breaking up of goods of materials sold will

be permitted, except in certain special circumstance where prior sanction for such

permissions has been accorded by the Management. Such permission will be

accorded only for cutting or breaking of heavy/big pieces into loadable sizes and not

processing.

(c) Whenever permitted, the purchaser shall carry out cutting, breaking and dismantling

of the sold good for lifting in pieces under the supervision of authorised

representative of Loading Unit/Delivery department.

The delivery Department will ensure proper identification of the

items/equipments/installations and marking on them during cutting and dismantling

works in order to avoid mixing of the sold items with any other assets of BSL.

However, before starting the dismantling work, written approval of HOD concerned

shall be obtained from Delivery Department/Loading Unit.

3. SHORTAGE OG GOODS: Where goods are sold in lots and not in number or

units, any reference to the quantity, quality, size, measurement number and other

documents shall not be a point of dispute and the purchaser shall have no claim against

the Management for refund of whole or any part of the purchaser¶s money or for loss

of profit, of interest, damage or otherwise. Where materials are sold by number and

the purchaser fails to obtain delivery of the whole or a portion of the goods sold, he

shall be entitled to make a claim for the proportionate refund of the sale value of the

undelivered quantity. He shall not be entitled to claim any damages, loss, profit,

interest or compensation on any account due to such short delivery.




4. RE-SALE: The Management will not recognize Re-Sale. Sale Orders and release

orders will be made out only in the name of actual Bidder or tenderer.

5. CUSTODY AND PRESERVATION OF GOODS AFTER SALE: The materials

shall remain in every respect at the risk of the purchaser from the date of Sale Order is

issued to the purchaser. The Management shall not be under any liability for the safe

custody or preservation thereof from that date.

6. (a) WITHDRAWAL OF GOODS DELIVERY: The Management reserves the right

to withdraw at any stage from the sale after advertising or after issue of Sale Order/

Release Order any items or any quantity of the materials by number without assigning

any reasons thereof to the purchaser. Sale Value for the materials so withdrawn, if

any, paid by the buyer, will be refunded. The Management will not be responsible for

any damages/ loss what so ever to the purchaser on account of such withdrawal.

SAIL / BOKARO Steel Plant reserves the right to reject any or all applications / offers

partially or fully at any stage of the process / tenure or modify the process / tenure or

any part / term thereof any time without assigning any reasons No financial

obligations, whatsoever, shall accrue to Sail / BSL in such an event.

(a) The Management reserves the right to dispose off any item by other means even after

inviting Bidding/tenders for sale of such materials.

7. ABANDONED GOODS: The purchaser must effect complete removal of the materials

sold to them from the site within the date specified in PIM CUM Delivery Order (PIM

CUM DO) issued by the Management. In case the material is not removed in fullwithin the specified / extended date, delivery order for the left over quantity will be

treated as cancelled. The materials so left over will be treated as ³Abandoned Goods´,

at the risk and cost of the buyer.




The Management will have full right on such Abandoned Goods and will be entitled to

resell or dispose off the same in any manner it deems fit without any reference to the

purchaser. The buyer will have no claim on materials declared as the ³Abandoned

Goods´. In addition to forfeiting such abandoned goods the initial deposit and the

price if any paid by the purchaser the purchaser shall further be held liable for all

commission and other charges and losses suffered by the Management which may be

sued for & recovered in a Court of Law.

8. DAMAGE TO PLANT PROPERTIES: The purchaser shall be fully responsible for

any loss/ damages that may be done to the premises, equipments, machineries, and

other installations of the Plant or person in the course of removing the lot/ items

bought by him, and the purchaser is fully liable to reimburse to the Management the

cost of such damages. The Management fully reserves the right to recover the cost of

such damages from any sum due to the purchasers or through legal action whatsoever.

9. ENTRY PASSES TO PLANT: Admit / Area/ Gate Passes are issued to the

representative of the purchaser by the officials of CISF, Bokaro Steel Plant, on the

recommendation of the Custodian. The purchaser and their workers should not move

about freely in the Plant, or Places other than they are required to visit for the purpose of lifting of materials purchased. Free movement of purchaser and their workers to any

other area on the strength of the admit passes issued for particular area/ place/work is

against Security Act. Purchaser are advised to enforce this requirement strictly and

restrict their movement in the Place / Area specified in the admit passes or the place of

lifting of concerned material. Non-observance of precautions under the Public Security

Act, which may please be noted and also notified to the staff of the purchaser and

workers. In case of necessity to proceed to an area, other the one noted in the admit

passes, it is invariably necessary to get new area, added in the admit passes by the office

of the issue. Any breach in the enforcement of safe custody and improper use of the

passes would entail termination of the sale at any stage at the risk and cost of the

purchaser.




1. COMPLIANCEOF LABOUR LAWS SAFETY RULES: During the period of the

purchaser¶s workers are employed within Bokaro Steel Plant Bokaro premises, they will

be governed by the Labour Law and Rules, Factory Act And Rules and Bokaro Steel

Plant Security Rules & Safety Rules as applicable and it shall be the responsibility of the

purchaser to ensure that the statutory provisions are complied with fully.

y RECOVERY OF DUES: Any sum of money due and payable to the purchaser

including Security Deposit (returnable to him under this contract) may be appropriated

by the Steel Authority of India Limited, Bokaro Steel Plant or Government or any other

person or persons, including other Steel Plants under SAIL and adjusted against any

claim of the Steel Authority of India Limited, Bokaro Steel Plant or Government or such

other person or persons including other Steel Plant under SAIL for the payment of the

sum of money of the arising out of or under any other contract/ tender made by the

purchaser/ tenderer with the Steel Authority of India Limited, Bokaro Steel Plant, or

Government or such other person or persons including other Steel Plants under the Steel

Authority of India Limited.

2. PAYMENT OF INTEREST: No interest will be paid on the amount paid by the

Purchaser and subsequently found refundable under any of the condition mentioned

herein.

13. ILLEGAL GRATIFICATIONS: Any bribes, commission, gifts or advantage given,

promised or offered by or on behalf or the tenderer or his partner agent or servant or any

one on their behalf to any Officer, servant representative or agent of the company or any

person on their behalf in relation to the obtaining or to the execution of this or any other

contract with the company for showing or for bearing to show favour or disfavor to any

person in Relating to this or any other contract as aforesaid shall subject the tenderer to

the cancellation of this contract, aforesaid and also to payment of any loss or damage

resulting in any such cancellation to this like extent.

14. ARBITRATION: All questions, claims, disputes or differences of any kind

whatsoever arising out of or in connection with or concerning this auction/contract, at any




time, whether before or after the determination of this contract, other than questions, claims,

disputes or differences for the decision of which specific provisions have been made in the

foregoing clauses of these conditions (hereinafter referred to as ³excepted matters´ and

decision on which excepted matters according to the said specific provisions shall be final

and binding on the parties to this contract and shall not be re-opened or attempted to be

reopened on the ground of any informality, omission, delay or error in the proceeding or on

any other ground whatsoever) shall be referred by the parties hereto for the decision by a

Sole Arbitrator to be appointed as hereinafter mentioned.

The parties shall serve the notice regarding the invoking of the arbitration Clause hereto by

registered post at their address given in the contract.

Matters in question, dispute, claim or difference other than the excepted matters in respect of

this contract to be submitted to arbitration as aforesaid shall be referred for decision to a Sole

Arbitrator to be appointed by the Managing Director Bokaro Steel Plant, Steel Authority of

India Limited.

In case the designation of the Managing Director is changed or his office abolished, the

officer who for the time being is entrusted with the functions of the Managing Director,

Bokaro Steel Plant, Steel Authority of India Limited, by whatsoever designation such officer

is called shall be the person designated to appoint the Sole Arbitrator. The Arbitrator so

appointed shall adjudicate upon the disputes between the parties hereto.

The Sole Arbitrator appointed as stated above, shall from the time of his appointment and

throughout the arbitral proceedings, without delay, disclose to the parties in writing any

circumstances likely to give rise to justifiable doubts as to his independence or impartiality

provided that the mere fact that such Sole Arbitrator is an employee of the SAIL, Bokaro

Steel Plant shall not be regarded as such circumstance. The Arbitrator shall decide the

questions, claims, disputes or differences submitted to him by the parties in accordance with

the substantive law for the time being in force in India.

The Arbitrator shall hear the cases independently and impartially and shall not represent the

interest of any party.

The question of procedure for conduct of the arbitration proceedings shall be decided by the

Arbitrator in consultation with the parties before proceeding with the reference. The

arbitrator may hold preparatory meeting(s) for this purpose. In the preparatory meeting(s)




aforesaid the arbitrator in consultation with the parties shall also determine the manner of

taking evidence, the summoning of the expert evidence and all such matters for the

expeditious disposal of the arbitration proceedings. The arbitrator shall be entitled to actually

incurred expenses only, in respect of preparatory meeting(s).

The provisions of the Arbitration and Conciliation Act, 1996 and the rules framed there

under, if any and all modifications / amendments thereto shall deem to apply and / or be

incorporated in this auction/contract as and when such modifications / amendments to the

Act / Rules are carried out.

15. LEGAL PROCEDDINGS

All kinds of Legal proceedings against the Steel Authority of India Limited, BokaroSteel Plant in any matter arising out of the sale shall be tribal only by the appropriate

Civil Court of Bokaro.

16. The Bidders shall observe all the statutory provisions/levies of central and State in the

matter.

PROCEDURE OF SALE THROUGH FIXED PRICE

1. General Sale notice for different items to be sold is posted on SAIL website and

advertise in various newspapers (Local and National) between every 15th to 20th of the

month for the next month,

2. For requisition of materials, applications are invited from customers bet 25

th

-30

th

/31

st

of every month.

3. Allocation of material to various customers is done as per approved procedure of

priority allocation.




4. Offer letters are issued to the customers.

5. Price applicable will be the price rising at the time of dispatch.

FLOW CHART OF FIXED PRICE

Advertisement of type of materials on SAIL

website/Newspaper

Application from customers

Allocation of material

Issue offer letter




PRIORITY IN BOOKING OF MATERIALS BY MARKETING DEPTT

Category Priority Buyer Quantity to be

allotted

A 1st

Govt. Units/PSUs & its

subsidiaries & joint ventures

of govt. units having more

than 50% govt. share

Any quantity

required by them

B 2nd

Dependent BIADA units with

MD/BIADA¶S

recommendations &

MD/BSL¶s approval.

Maximum 70% of

the balance

available quantity

after meeting the 1st

priority

C 3rd

Consumers/Processes of

Jharkhand state

30% of balance

D 4th

To all other customers Out of the balance

quantity of material




TENDER DOCUMENT

TERMS & CONDITIONS

1) The parties desirous of purchasing the material have to quote for entire quantity of the

material.

2) The Tenderer are advised to inspect the material at B.F. Slag Dump, if so desired, beforesubmitting the quotations.

Parties will be permitted to see the materials from 9.30 Hrs to 4.30 Hrs daily on working

days. Necessary entry passes may be obtained from the Receptionist/ CISF

3) Terms of sale: On ³As is where is basis ", " No complaint basis ³and´ Ex-works basis" No

PICK and CHOOSE shall be allowed other than sorting out Iron/Steel pieces found, if any.

4) The conditional quotations are liable to be rejected.

5) EARNEST MONEY

EMD (Earnest Money Deposit) Rs.100000/- for the item to be deposited in the form of

DD/BC/PAY ORDER in favors of SAIL/Bokaro Steel Plant, payable at Bokaro, from any

Nationalized / Scheduled banks along with the quotations. Any variation / demand in such

taxes, duties, levies, and charges and / or any fresh imposition of such taxes, duties, levies

and charges shall also be to the account of the bidder to whom the tender is awarded.

The tenders should quote their rate in per cubic meter against the total quantity as asked for

in the tender document both in words and figures.




In case of any mismatch / ambiguity between the two the higher of the two rates only shall be

considered.

The tender should be submitted in the TENDER BOX placed inside the CONFERENCE

HALL OF MARKETING AND STRATEGIC PLANNING DEPARTMENT on the 5th floor

of ISPAT BHAWAN. The general terms and conditions of lifting by road and safety

stipulations in force shall be applicable.

6) PAYMENT TERMS:

The successful bidder has to make payment for the quoted quantity in 12 (twelve) equal

installments of 1000 CU. each. 1st installment is to be deposited within 10 (Ten) days from

date of issue of sale order inclusive of the date of issue of sale order. Subsequent installmentsare to be deposited within 30 (Thirty), 50 (Fifty), 70 (Seventy), 90 (Ninety), 110 (One

hundred ten), 130 (One hundred thirty), 150 (One hundred fifty), 170 (One Hundred

seventy), 190 (One hundred Ninety), 210 (Two Hundred ten) & 230 (Two Hundred Thirty)

days from the date of issue of sale order (inclusive of the date of issue of sale order).

However, lifting of entire quantity of material has to be completed within the validity period

of 300 (Three Hundred) days from the date of issue of sale order (inclusive of the date of

issue of sale order). Payments shall be in the form of DD/BC/Pay order or acknowledgement

note from SBI, IFB commercial, Branch of Raipur /Bokaro payable at Bokaro from any of

the Nationalized / Scheduled banks in favor of SAIL /Bokaro Steel Plant. In case of failure of

payment as mentioned above and or failure in lifting of material within the validity period of

lifting, the Management reserves the right to cancel the sale Order and forfeit the security

deposit.

7) LOADING AND TRANSPORTATION:

Loading and transportation of the material in the tenderer vehicle has also to be done by the

tenderer at their own cost and arrangements.

Successful customer will be allowed to lift the material only 4 days in a week.




with them. The products are directly marked demand on the basis of their interaction with

them. The products are directly marked from Bokaro Steel Plant to the customers there is no

other intermediaries.

MANUFACTURE

INDUSTRIAL CONSUMER

DISTRIBUTION CHANNELS:

1. A.L.P COLOUR AND CHEMICALS INDUSTRIES JAMSHEDPUR

2. APEX MET CHEM PVT LTD

3. BHARAT ENTERPRISES MEERUT

4. BAJRANG PETRO CHEMICALS, KANPUR

5. SHIVA CHEMICALS CHAS

6. BAJRANG PETROLIUM, DELHI

7. INDIA PESTISIDE LTD LUCKNOW

8. NATIONAL OIL CHEMICAL, AGRA

9. SHREE RAM INDUSTRIES, B.S.CITY

10. JAGDAMBA PERROLIMUM INDIA PVT. LTD. DELHI

11. KANORIA CHEMICALS, RENUKOOT

12. SHREE BHOLEY UDYOG ,DHANBAD

13. VIJAY CHEMICALS, RAIPUR




14. UTKAL HYDRO CARBON, BHILAI

15. COAL CHEM, BHILAI.

16. NAGALIA HYDROCARBONS, KOLKATA

17. JALAN CARBON AND CHEMICALS LTD,KOLKATA

18. JHARKHAND TAR PRODUCTS, BOKARO

19. BHARAT REFECTORIES LTD, KOLKATA

20. HIMADRY CHEMICALS, KOLKATA

21. SHAILY DYES & INTERMEDIATES, AHMEDABAD

22. BASF INDIA LTD, MUMBAI

23. SRI AMBIKA SALES CORPORATIONS, PATNA,ETC.

PROCEDURE OF REFUND OF CLAIM AMOUNT TO THE

CUSTOMERS 1. CLAIM FORM:-When lifting of material for a particular claim is over, customers can

claim for Price of material, security deposited, Ernest money deposit, interest or turn

over tax. Claim form is submitted to marketing dept. with invoice details.

2. REGISTRATION: - MKTG DEPT allotted registration no. And date to each claim.




3. GROUNDREPORT:- Ground clearance committee submits report to CMM

(marketing) after completion of lifting of material under a particular sale order.

4. RECONCILATION OF ORDER: - Details of claim form are reconciled with that of

records at marketing dept. In case of any descriptions in the claim form submitted, itis returned to the party for correction.

5. CANCELLATION OF SALE ORDER: - When all details are in order cancellation

PIM of the sale order is prepared in the computer system. Hard copy of this cancelled

PIM is duly signed by dealing assistant and controlling officer. In case of Ernest

Money deposit and TOT, IOC is sending for refund of the amount.

6. ON LINE FOWARDING OF CANCELLATION PIM: - Cancelled PIM are

forwarded to S&E DEPT. through computer network. A forwarding letter along with

dak no. & dak date is generated which is electronically transferred to the S&E DEPT.

7. VOUCHER FOR PAYMENT: - S&E dept. prepares voucher for payment of claims

amount and forwards it to cash section of accounts dept.

8. PAYMENT OF CLAIM AMOUNT: - Cash section issues cheque of the claim

amount for the party and deposited in their bank account.

9. INTIMATION OF CHEQUE ISSUED: - Cash department sends information about

issue of cheque for final settlement to the party to marketing department. Process is

going on for online intimation of cheque issued.

Bokaro steel plant deals with its customers directly. There are some persons in the marketing

department who always remain in contact with customers and extract information about the

current market demand on the basis of their interaction about the current market demand on

the basis of their interaction about the current market demand on the basis of their interaction







MANUFACTURE

INDUSTRIAL CONSUMER





























CUSTOMERS 10. CLAIM FORM:-When lifting of material for a particular claim is over, customers can










records at marketing dept. In case of any descriptions in the claim form submitted, itis returned to the party for correction.

14. CANCELLATION OF SALE ORDER: - When all details are in order cancellation

PIM of the sale order is prepared in the computer system. Hard copy of this cancelled






16. VOUCHER FOR PAYMENT: - S&E dept. prepares voucher for payment of claims

amount and forwards it to cash section of accounts dept.









CHAPTER 6

y CUSTOMER LIST OF BSL (BOKARO STEEL PLANT)

y CUSTOMER RELATIONSHIP MANAGEMENT




CUSTOMER LIST OF BSL (BOKARO STEEL LTD.)

MAJOR CUSTOMERS OF SECONDARY PRODUCTS

1. Ma Durga Ispat Udyog, Bokaro.

2. Bokaro Devlopement Area.

3. Kartike Ispat Pvt. Ltd, Kanpur.

4. Amit Steel Corporation, Howrah.

5. Diwan Steel, New Delhi.

6. Nenu Mal & sons, Kanpur.

7. Bhawani Metals, Bokaro.

8. Pandey Metals, Bokaro.

9. Chinar Steel Segment, Bokaro.

10. Mangal Pvt. Ltd., Bokaro.

11. United Iron Corporations, Dhanbad

12. Bharat Supply Company, Kolkata

13. Anup Steels, Delhi

14. Hanuman & rise Pvt. Ltd, BIADA

15. Amit Metcum Pvt. Ltd.

16. Steel India, Dhanbad

17. Kunal Steel Corporation, Ludhiana

18. GD Geol. & Company, Kolkata

19. Modern Indus concast Ltd, Kolkata

20. Agarwal Steel Centre, New Delhi21. Tribhole Udyog, Dhanbad

22. Shiva Chemicals SSE, Sindri




MAJOR CUSTOMERS OF BI PRODUCT

1. Shree Bhole Udyog, Bokaro

2. Jalan carbon & Chemical, Jamshedpur

3. Bajrang petro chemical, Kanpur

4. Shalimar Chemical industries Pvt. Ltd., West Bengal

5. Shiva Chemical, Bokaro

6. AGR Enterprise, Mumbai

7. Kutch Chemical Industries, Baroda

8. Bhilai Chemical Pvt. Ltd., Ranchi

9. Ganga Rasayan, West Bengal

10. Naresh Prasad Agarwal, Bokaro

11. Himadri Chemical & Industries, West Bengal

12. Eastern Tar Pvt. Ltd., Jamshedpur

13. Jalan Carbon, Jamshedpur

CUSTOMER RELATIONSHIP MANAGEMENT BY SAIL

Bokaro steel plant deals with its customers directly. There are some persons in the marketing

department who always remain in contact with customers and extract information about the

current market demand on the basis of their interaction about the current market demand on

the basis of their interaction about the current market demand on the basis of their interaction







MANUFACTURE

INDUSTRIAL CONSUMER





























CUSTOMERS

19. CLAIM FORM:-When lifting of material for a particular claim is over, customers can







records at marketing dept. In case of any descriptions in the claim form submitted, it

is returned to the party for correction.

23. CANCELLATION OF SALE ORDER: - When all details are in order cancellationPIM of the sale order is prepared in the computer system. Hard copy of this cancelled









25. VOUCHER FOR PAYMENT: - S&E dept. prepares voucher for payment of claimsamount and forwards it to cash section of accounts dept.






SAIL CONSULTANCY DIVISION (SAILCON)

SAIL, during its existence of over four decades, has acquired a high level of expertise and vast

experience in building, operation and maintenance of integrated and mini steel plants and

associated facilities encompassing diverse technologies, equipment and products-mix. The

knowledge thus gained led to formation of a consultancy and services marketing division ±

SAIL Consultancy Division (SAILCON), based in Delhi, to provide a wide range of services to

the iron & steel and other industries in India and abroad.

SAILCON is a single window at SAIL catering to clients across the world, providing design,

engineering, technical, management and training consultancy and services available from

various SAIL plants and units. It is an ISO: 9001:2000 certified organizations equipped to

render quality services from concept to commissioning.

The range of services available include:




DESIGN AND ENGINEERING SERVICES

y Feasibility studies

y Bankable Project Proposals

y Detailed Project Reportsy Basic Engineering

y Detail Engineering

y Tender Specializations Preparations

y Bid Evaluation

y Instrumentation and Automation

y Mine Planning and Development

PROJECT MANAGEMENT SERVICES

y Plant Erection and Construction

y Procurement and Inspection

y Project Planning, Monitoring and Supervision

y Start-up, Testing and Commissioning

TECNOLOGICALSERVICES

y Plant Operation and Maintenance

y Technology Up-gradation

y Quality, Productivity and Performance Improvement

y Environment Management and Pollution Control

y Energy Conservation & Audit

HR AND TRAINING SERVICES

Training Needs Assessments and Training Module Development

y Setting up Training Systems and Facilities

y Training for Operation, Maintenance and Management of Steel and Power plants

y Engineering and Technical Skills Training

y Management Development Programmes




y Training of Trainers

y Recruitment Services

y Appraisal and Reward Systems

y Preparation of Personnel and Training Manuals

MANAGEMENT SERVICES

y Total Quality Management and ISO: 9001 Certification Assistance

y Corporate Planning

y Benchmarking

y Corporate Restructuring

y Marketing and Distribution

y Software Development and System Design

In addition to successful completion of a number of assignments in India, SAILCON has

satisfied clients in Egypt, Saudi Arabia, Iran, Qatar, Bangladesh, Oman, Philippines, Nepal,

Taiwan, Thailand, Azerbaijan, Georgia, Nigeria and Sri Lanka.,

Contact Address:

SAIL Consultancy Division,Steel Authority of India Limited,

SCOPE Minar, North Tower,

19th Floor, Laxmi Nagar District Centre,

New Delhi -110092, India.

Tel.: + 91-011-22448381 & 22531242,

Fax: +91-011-22464616

E-mail : [email protected]




CHAPTER 7

y ADVERTISEMENT AND PUBLICITY

y INCENTIVE AND OTHER SCHEMES




Advertisement and promotional scheme in SAIL:

As sail is a one of the biggest steel manufacturing in India so it has its own unique way of

advertising its products. It does not need any kind of frequent advertisement on television

because of its biggest reputation in the country but still there is some of advertisement which

they use to promote its product. They basically deal with business to business sort of business

activity. And they do also manufacture consumer products of steel as well.

Their advertisement basically deals with nation wise bond and they more over focus on

power and strength of product.

But basically SAIL promote itself through several social work such as:

SAIL has been a pioneer in the area of Corporate Social Responsibility (CSR) sinceinception, substantially contributing towards betterment of social indices in and around the

periphery of steel plants. SAIL has been structuring and implementing CSR initiatives rightfrom inception with the underlying philosophy and a credo to make a meaningful differencein people's lives. These efforts have seen the obscure villages of yesterday, where SAIL plants are located, turn into leading industrial centres in the country today.

Since inception the company has established 40 primary health centres, 11 reproductive andchild health centres 31 hospitals and 8 super-speciality hospitals. These have resulted inaccess to improved health infrastructure for 2.2 crore people from ailments from commoncold to measles, diabetes, reproductive and child health care, open heart surgery, neurosurgery, kidney transplantation etc. The Company has opened about 138 schools in the steeltownships to provide modern education to about 81,000 children. Besides adopting and

providing free education and facilities to tribal children, company has provided assistance toover 1407 schools, with more than 1,64,000 students of around 435 villages surrounding itsunits. In this endeavour, SAIL has achieved a Girl:Boy ratio of 1:1 for all levels of educationand a survival rate (i.e. rate of retaining enrolled students) of 90% in all SAIL secondaryschools and 95% in all SAIL primary schools. SAIL has started 5 free schools exclusively for the poor, under privileged children - one each at its 5 Integrated Steel Plant locations.Students are being provided free meals, uniforms, tuition, books & stationery andtransportation, etc. in these schools.




In addition to contributing in areas of education and health, your Company provides access to potable water to about 1.1 lakh persons every year and constructs/ repairs 33 km of (pucca)roads per year, thereby providing access to more than 2 lakh persons across 435 villages per year. During 2007-08, 61 kms of pucca road was built, 423 new water resources were createdand 402 solar lights were provided.

The Company has adopted 79 villages as Model Steel Villages across eight states. Thedevelopmental activities planned for these villages include medical and health services,education, roads and connectivity, sanitation, community centres, livelihood generation,sports facilities, etc. Out of the 79 villages, 13 villages have been developed as Model SteelVillages, during the year 2007-08.

The Company is also working towards preserving culture and heritage. Some of the keyactivities include assistance to maintenance of monuments in Lodhi Garden, New Delhi;contribution towards the development of infrastructural facilities and amenities etc. atArcheological Sites of Lauria Nanandangarh and Chankigarh in West Champaran District of

Bihar and Light and Sound Show organised on 10th May, 2007 on the occasion of 150thanniversary of First War of Independence at Dhyan Chand National Stadium, New Delhi.

Besides, the Company extended support to a number of activities for the benefit of physicallychallenged persons and destitute. 193 physically challenged and hearing impaired personsfrom peripheral villages were identified and crutches, artificial limbs and hearing aids were provided with the help of Bharat Vikash Parishad, a reputed NGO; Besides 150 hearing aids,computer lab and furniture, 15 tricycle and 5 wheel chairs were also provided. CSR isingrained in all spheres of industrial life and social responsibility for the Company and it isnot only a virtue but a business imperative.

The objective of the Company is to focus on the following thematic themes/causes as part of Corporate Social Initiatives and Women Upliftment:

1. Income Generating Schemes (through Self Help Groups);

2. Education; and

3. Health issues

In line with the above themes, SAIL is working in tandem with State Government of Chattisgarh for establishing a Technical University at Bhilai, Chattisgarh. An ITI was

inaugurated at Gua Mines in September 07, by Shri Madhu Koda, Hon'ble Chief Minister of Jharkhand in which classes in two streams have started.

Project 'Jaladhara' was taken up under the Corporate Social Responsibility initiatives of SAIL/ CMO in tribal villages in Vishakapatnam District. The project aimed to provide drinkingwater to the hamlets of Dummaguda and Sarada Bonguda village from the natural springs of the Ranajilledu water falls in the picturesque Araku Valley. Water from the perennial naturalsprings (at a height of 60m from the village) is brought down to the villages by taking




advantage of the natural gradient (by the gravity) by constructing a cistern at the tapping point, laying a main pipeline (1.6 kms long) through mountain terrain to convey the water from the cistern at the tapping point to three tiny hamlets housing a population of about 450in the village premises where filtration tanks and distribution tanks with taps are providedand distributed. Earlier the village folk (especially ladies) had to trek nearly 2.5 kms to

collect water from the Ranajilledu Falls. The entire facility was handed over to the Sarpanchof the village on 15th December 2007.

In the field of health care, free medical health centres for poor have been set up at Bhilai,Bokaro, Rourkela, Burnpur(Gutgutpara)and Durgapur providing free medical consultation,medicines, etc. In addition, over 400 medical camps have been held in 2007-08 by all the plants and units in 12 states (Bihar, Jharkhand, Chattisgarh, Orissa, West Bengal, Tamil Nadu, Karnataka, Maharashtra, Madhya Pradesh, Haryana, Himachal Pradesh, Rajasthan) for providing free health check-up, path lab treatment, medicines, immunization, etc to to over 5lakh of the needy persons. Surgical cases were referred to plant hospitals (free stay, to and frotransport and food with 1 attendant each) with the facility for post operative check up etc. In

one of these camps organized by SSP, a 18 months old girl was detected with congenitalcataract in both the eyes (nearly blind) and was restored vision after surgery at SSP hospital.Ten (10) numbers of Mobile Medicare units have also been provided to differentorganizations during 2007-08

Thirty three (33) child labour rescued by an NGO operating in MSV Thimmalaiviri, Salem,are being supported by taking care of their education, livelihood, hygiene and health care.Massive flood relief operation was organized by SAIL. Almost 100 employees were pressedinto service. Flood relief operation was undertaken in 46 districts in 3 states namely, Bihar,Uttar Pradesh and Assam (in North East).

The company is one of the first PSUs to get associated as an inter-sectoral collaborator of National AIDS Control Organisation (NACO), Ministry of Health and Family Welfare,Government of India. SAIL has continued its efforts to contribute to the society in preventionand control of HIV/AIDS through Information, Education and Communication (IEC)Programmes where more than one lakh people were covered. In the schools, AIDS EducationProgramme (for Class IX and above) has been taken up across the Company, in line with NACO guidelines.

In the field of Income generating schemes, vocational training has been provided to around25,000 villagers in SMART Model for Vegetable Cultivation , WADI, Amrapali DripWatering, Teak Plantation , Poultry Farming , Water Harvesting , Mobile ArtificialInsemination, Vermiculture etc.

The Company has well planned sports policy, with an accent on nurturing young talentsthrough four specialized academies promoting Athletics, Hockey, Football and Cricket. SAILsponsored several sporting tournaments at the national and the international levels to promotesports in the country. In order to provide impetus to sports, Archery Academy has been set upat Kiriburu Mines, Jharkhand. A host of tribal sports festivals have also been organized likeSAIL Tribal Sports Festival-2007 at Durgapur, Gramin Khel Melas in Athletics, Football,




Volleyball and Khokho for tribal students at Narayanpur, Chattisgarh.. Another prestigious programme under sports promotion was SAIL sponsoring ADPROS Asian Tour Golf Tournament (SAIL Open Golf Tournament) and Nehru Champion Colleges HockeyTournament besides supporting UP Badminton Association for UPA Badminton Academy.

CORPORATE COMMUNICATION

SAIL continued its efforts to project the image of the company by taking up brand buildingmeasures that included advertising through the outdoor and print media, participation inexhibitions sponsorships of various sports and cultural events, etc.

Incentive and other schemes:

As well as keeping them happy, rewarding staff can help organisations with retention and

development.

Setting up an employee incentive scheme is trickier than it sounds. It is not simply a matter of setting targets and giving prizes to staff who attain them. You've got to communicate whatyou are doing, why and how, reward people appropriately, and most importantly, get buy-infrom employees and the board.

Andrea Born, head of business incentives at House of Fraser, and John Davis, managing director of Argos

Business Solutions, are both heavily involved in employee incentive schemes. They have come up with their top

tips for Personnel Today readers on how to make them work.

Communicate goals

Communicate what you are doing and why is crucial to success. Everyone needs to know what the goals are and

what the rewards are for achieving those goals. They need to be able to relate to both of them or they willdisengage. Born thinks you can't be too vocal. "You need to be loud and proud about it," she says.

The thing is to promote what you are doing - give a talk, put it on the intranet, send company-wide e-mails and

leaflets. All this needs to be done from the moment you launch the incentive scheme, otherwise it will fizzle out or

never even get off the ground.

Know your objectives

There is no point implementing an incentive scheme just because everyone else is. Establish what aspect of

your business you are trying to improve, be it product knowledge, absenteeism rates, customer satisfaction or

retention rates, for example. Then establish how the incentive scheme is going to achieve that.

You need to know what those objectives are worth to you in monetary terms, so that you know how much you

are prepared to spend to generate the desired return on investment.

Davis thinks this is where many companies slip up. "A lot of people test schemes while not understanding whatthe monetary rewards are for them, but it is the monetary rewards that drive the budget," he says.

Convince the board

If you have got the objectives right, know what you want to do, why and how, then winning the board over should

not be too hard.

"You need to have a strong business case," explains Davis. "What are you trying to achieve? Have five or six

critical success factors - service levels, product knowledge etc - and measurable targets. If you are able to

demonstrate the financial benefits, getting buy-in should be easy."




Consult with staff

As such schemes are all about staff participation, it makes sense to get them involved at the beginning. Find out

what would motivate them to work harder or please more customers. Is it a cash boost? Or would they prefer

music vouchers?

A common mistake to avoid is assuming that staff will all want the same rewards. "Rewards have to be relevant

to the employee," says Davis. "There is no point giving golf vouchers to someone who does not play golf. Profile

people, ask a few questions to find out about their hobbies so that they get the right reward."

But Davis warns that employers must clarify what the reward limits are. "If you're polling employees, you have to

be careful not to raise expectations too high because this could have a demotivating effect," he says.

Make it pertinent

This ties into ensuring the rewards are appropriate. Different departments or locations will probably have different

objectives, so you need to establish what those are and how to reward them.

Born thinks the best schemes are those that work on a local level. If it is improved teamwork that is being

rewarded, she recommends a team reward.

"Experience vouchers are very good for groups," she says. "Get them to do an activity or take them away for a

weekend."

Argos Business Solutions has a scheme with an oil company, and one health and safety initiative they run is allabout team safety awareness.

"If there aren't any accidents during a year, staff are rewarded with big prizes," says Davis. "This means they

keep an eye on each other as a team."

Maintain momentum

Apart from the oil-rig example, Davis advises against annual rewards. He thinks staff need to be constantly

thinking about rewards and striving to achieve them. "The more you can get people earning points regularly, the

more buy-in you will get," he says. "Management needs to keep banging the drum and alerting employees to any

results, new targets or rewards. It needs to become part of the company culture."

Measure success

This is best done by measuring whether you are meeting your objectives. Assess performance and the return on

investment.

If it is lower absenteeism rates you're after, then look at the HR statistics. Poll staff through employee opinion

surveys, although the best measure is employee take-up and factual results.

Act when take-up is low

Both Born and Davis say that if take-up is low, it is not working. Then it is a case of assessing the whole scheme

- are your objectives right? Are the targets achievable and widely understood? Do workers know why the scheme

exists? And are the rewards right? The best way to find out is to look at any measurables and consult

employees.

Bokaro Steel Plant initiates schemes to better

employees' living standardsBokaro, June 9 -- In a bid to improve the quality of the employees' life, Bokaro Steel Plant

(BSP BSP

Bromsulphalein, a dye used in the study of liver function. See also sulfobromophthalein

clearance test. ) has adopted a new hymn - 'Service with a Smile' - which will help in




boosting-up the morale of the employees.

A two-day workshop was organised at HRD MM Yadav, inaugurated this workshop. Acreation of the human resource development department of Bokaro Steel Plant management,this new scheme allows one to visualise transformation of the behaviour of the service

departments towards the employees working under tough condition inside the plant.

It aims to ensure that the employee who approaches the services department with their problems related to maintenance of house, education, discrepancies in salary including othersare treated with affection, which would reduce the worries of the employee and increase their satisfaction with the amenities provided.

Officials said that this scheme will reduce the trouble of the employees and it also save themfrom several health problems including high blood pressure and diabetes.

"Besides, this plant visit is also a part of this programme by which they will aware about the

difficult conditions under which employees work. This will help them to understand theimportance of cooperating with them in dealing with the personnel requirements," added theofficial.

Official also informed that Rakhi Dey, Anju Singh, Vineta Singh and Poonam Singh the four female executives are organising training session for all level of executives under thisscheme




Chapter 8

y Study and analysis of graphs and datay SWOT analysis of BSL

y Research and findings

y Suggestions to BSL

y Conclusion

y Bibliography




Study and analysis of graphs and data

SALES OF SECONDARY STEEL (Value in Lacks)

PERIOD 2007-08 2008-09

1st Qtr 11464 13022

2nd Qtr 13179 16564

3rd Qtr 13425 11602

4th Qtr 15194 9159

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

2007-08

2008-09




SALES OF IRON & SCRAP (Value in Lacks)

PERIOD 2007-08 2008-09

1st

Qtr 958 1326

2nd

Qtr 1115 1039

3rd

Qtr 1014 1103

4th

Qtr 1472 915

0

200

400

600

800

1000

1200

1400

1600

1st Qtr 2nd Qtr

1115 1039

3rd Qtr 4th Qtr

Series1

Series2




SALES BFG SLAG (Value in Lacks)

PERIOD 2007-08 2008-09

1st Qtr 797 840

2nd Qtr 933 914

3rd Qtr 953 882

4th Qtr 940 998

0

200

400

600

800

1000

1200


2007-08

2008-09




SALES PIG IRON (Value in Lacks)

PERIOD 2007-08 2008-09

1st Qtr 1436 0

2nd Qtr 854 458

3rd Qtr 0 175

4th Qtr 0 603

0

200

400

600

800

1000

1200

1400

1600


2007-08

2008-09




SALES BY PRODUCTS (Value in Lacks)

PERIOD 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1ST Qtr 904 1218 1041 12631759 2906

2ND Qtr 1320 1731 1417 14582047 2797

3RD

Qtr 1145 1038 1312 12952104 2041

4TH

Qtr 2024 1797 2045 21151918 1701

TOTAL 5393 5784 5815 6131 7828 9445

0

1000

20003000

4000

5000

6000

7000

8000

9000

10000

1ST Qtr

2ND Qtr

3RD Qtr

4TH Qtr

TOTAL




SALES MISC OTHERS (Value in Lacks)

PERIOD 2007-08 2008-09

1st Qtr 961 1457

2nd Qtr 848 1515

3rd Qtr 987 1065

4th Qtr 1182 462

0

200

400

600

800

1000

1200

1400

1600


2007-08

2008-09




E-AUCTION (Value in Lacks)

PERIOD 2007-08 2008-09

1st

Qtr 8144 13410

2nd

Qtr 12100 10800

3rd

Qtr 9146 11223

4th

Qtr 12619 6553

0

2000

4000

6000

8000

10000

12000

14000

16000

1st Qtr 2nd Qtr

12100

10800

3rd Qtr 4th Qtr

12619

2007-08

2008-09




PRODUCTION PERFORMANCE OF BSL

07-08 08-09(MARCH)

TARGET ACTUAL TARGET ACTUAL

HOT METAL 4585 4660 5050 4020

CRUDE STEEL 4360 4130 4700 3577

SALEABLE CR-COIL

3655 3600 4210 6479

SALAEBLE STEEL 3780 3900 4110 3383

PROFIT IN BSL

YEAR PROFIT (Rs. IN CRORE)

2005-06 2056

06-07 2737

07-08 2830

08-09 1324




METHODOLOGY ADOPTED

The methodology adopted by me during the project on "Marketing of Secondary Product and

By Products on B.S.L" can be divided into two parts:

(A) To know about the organization

(B) To know about the procedure and working of Marketing Department and Secondary

Section.

(A) To know about the organization. Information / data has been

Collected from:-

(i) Government Publications.

(ii) Books of organization.

(iii) Journal.

(iv) Company's Website.

(B) PRIMARY DATA: To know about the procedure and working of Marketing Department

and Secondary Section information has been collected by:

(a) Observation Method

(b) Personal Interview with

(i) AGM

(ii) Senior managers

(iii) Managers

(C)Document provided by them.




The By Product of BSL is coal based and of best quality against the petroleum based

By Products of its competitors giving the company edge.

A strong R&D cell of the company keeps on working over enriching the quality of

the products and to reduce the cost of whole process.

It has countrywide network of stockyards and dockyards/ branches/ customer can

take material from any location.

Customer perception of SAIL is fair and of reliable supplier > SAIL product has

International standard.

SAIL has a customer friendly approach and improved customer orientation.

SAIL is in the market from long time having long term relation from the

customers.

SAIL, BSL never compromises regarding µQUALITY¶ so it has superior quality.

WEAKNESS

The current weaknesses of the Company stem from dependence on purchased coal from

domestic and overseas suppliers. Some technologically obsolete processes such as ingotcasting and the twin hearth furnaces continue to operate and will be eliminated only after

implementation of the modernization cum expansion plan. As the integrated steel plants of

SAIL are located primarily in the eastern states, it increases the transportation cost to the fast

growing markets of the west and south. Due to historical legacy the manpower cost in the

Company is higher than its competitors. Also, being a public sector company adherence to a

number of rules and procedures slows down the business.

Lack of team work inhibits proper implementation of company¶s policy. Word ³I´ is

very much rampant in the workforce of BSL, phrase like ³ I am not responsible for

the undersigned responsibility´

Complex pre and post sale activities repel the probable customers.




Due to its large organizational structure involving numerous policies and officials,

prompt decision making a real problem.

No one wants to take initiative as he/she does not want to be reason for blame if the

trick doesn¶t click.

The hard working marketing officials are not given due recognition and appropriate

reward that hurts their motivation and interest.

Due to its large organizational structure, which involves numerous policies and

officials, it becomes difficult to take decision quickly and as result final decision

making becomes very slow.

Secondary product marketing depends on the primary product demand i.e. the

demand for primary product is less the production will have to be slowed down

thus even if the demand for secondary product is mounting up still the production

won¶t be increased, so the secondary product is directly linked to primary product

demand.

Quality of the product which is slightly inferior as compared to competitors who

are having latest technology.

Sometimes products are not supplied as per requirement of customer.

OPPORTUNITY

Steel consumption in India is growing at a rate of more than 10%, a trend that is likely to

persist as the nation enters into a steel intensive phase of development. The 11th Five Year

Plan has given a major thrust on the infrastructure sector with the total spending planned at

around US $ 500 billion by 2012. Mega projects in the power, energy, ports, railways and

surface transportation sectors, plans for rural infrastructure like Bharat Nirman, allocation for

which was raised to Rs. 31,280 crore and building over 2 lakh kilometers of National

Highways by 2010, present an unprecedented opportunity for SAIL which is implementing

expansion cum modernization plan to cater to the emerging demand. The size range and




quality makes SAIL's long products a preferred choice for project customers. In case of flat

products, SAIL remains a major supplier of HR Coils to the tube making sector and is slowly

increasing its presence in cold reducing segment. Plates from SAIL are rated amongst the

best and are in good demand from project customers. The water supply and oil & gas sectors

are the other segments where there is a large growth potential. The modernized ERW Pipe

Mill at Rourkela Steel Plant is able to cater to the requirement of these sectors. Bokaro Steel

Plant and Bhilai Steel Plant are also producing small quantities of API grade HR Coil and

Plates for servicing these sectors. The per capita consumption in India at around 46 kg

remains very low compared to the world average of around 200 kg. One of the reasons for

low steel consumption is low availability of steel in the rural area. SAIL in recent years has

developed a dealers' network which covers all the districts in India. This will facilitate

availability of quality steel in the interiors and promote market development and growth. At a

macro level, steel consuming segments such as construction, auto, capital goods etc. are

growing rapidly registering a double digit growth in recent years and would continue to be

the growth drivers given the structure of the economy. The auto sector in India has

experienced rapid growth for a number of years. Improved road, growing middle class and

globally competitive auto ancillary industry have been the facilitators of good growth for the

sector. Technological breakthrough and global competitiveness in two wheeler and small car

segments are likely to make India a global hub for these products boosting demand for steel

in the country.

The world market is showing the sign of revival from the spiral of recession in

which it remained engulfed for one year.

State government has plans for revocation of small scale industries in & around

Bokaro, which will fuel the demand of secondary & by product.

Cock oven batteries 1 & 2 are rebuilt which will ultimately increase the efficiency of

Coke Oven By product plant.

Since SAIL has a wide network of stockyards/branch offices, it can supply its

products directly to customers without any difficulty.

SAIL has a very strong base it can diversify itself into the production of different




goods as per market requirements.

There is growing demand for secondary product in both domestic and

international market.

THREATS

Customs duty on steel imports has been made nil in India and products such as TMT are also

exempt from CVD. Sluggish market conditions in developing economies may make India

destination for large scale imports adversely affecting domestic players. Government of India

has imposed export levy on steel products. India is a net exporter of galvanized products as

its total capacity is in excess of domestic demand. Adverse impact on exports of galvanized

products will have a cascading impact on domestic market for cold rolled and hot rolled coils

and sheets. China's production of crude steel at 489 million tonne in 2007 was around 36% of

the global production. As Chinese economy matures and its steel consumption stabilizes, a

part of the capacity will be serving only the export markets. The proximity and growing

domestic steel consumption will make India a preferred destination for Chinese steel,

significantly intensifying the competition.

Globalized economies have erased the geographical boundaries and have brought

stiff competition.

Execution & dispatch of order include lot of paper works & formalities, which

makes it a cumbersome task. This has led to drifting of customers towards

competitor.

By products are not the main products of BSL, neither BSL is the market leader of

these product.BSL fixes the price of the By Products on the basis of price set by its

market leaders i.e. Petroleum refineries & this pricing is known as going rate

pricing.




Acquisition of Corus by Tata Steel will led to integration of their technology &

this is the place where Tata is going to gain a lot. Technology in India is two to

three generation behind. Exposure to latest technology will help Tata to improve

quality & reduce cost. So SAIL should be cautious in this respect.

RESEARCH AND FINDINGS:

RELATED TO MARKETING DEPARTMENT

During my eight weeks training in marketing department of BSL. I have observed certain

problems in it these problems are findings of my studies.

All marketing procedure of prime products are decided by SAIL and carried out

by the Central Marketing Organization (CMO).

As the organization is concerned with a large number of productions activities

and the departmental work are done mostly manually from placement of orders

to documentation, which ultimately frustrates the employees.

The organization is more concerned with larger orders of steel products by

ignoring the smaller orders.

The local customers with business of by-products are sometimes made to wait

for days to get their papers Cleared by the department.

Most of the existing yards suffers from improper stocking space and siding

facility often they are not well developed due to this the material stored there

are rusted and other defects are caused and later they are disposed of by offering

some concession or at low rate which result in loss.

Due to improper packing, the materials reach the stockyard often in damaged

condition, which is attracting criticism from the customers and these damagedmaterials are sold with loss.

Export considered Secondary to domestic selling as BSL is a govt. undertaking

and its First priority is given to domestic marketing.

Secondary product CRUAC/Def CR Coil/CREC, this is industrial scrap and

they generate maximum revenue from this product.




Sale of By- Products shows lots of up & down in different quarters in the year

& maximum sale in last quarter.

Production of By-products shows lots of fluctuation because its production is

depending on Coke oven plant.

Dispatch of By-product shows continuous growth.

By-Product N.G.BENZENE they produce maximum revenue because its cost is

so high.

RELATED TO SECONDARY SECTION

1. Payment is accepted from the customers even when the material is not available in stock,

in anticipation that the material will be made available shortly in the stockyard.

2. Unavailability of material in the stockyard leads to holding up of the huge investment of

the customers i.e. material cannot be purchased from the alternative source.

3. Refund of excess payment takes long time sometimes more than a year.

4. Price list made available to the re-rollers every month contains even the price of materials,

which is not available.

5. The price prevailing in the market of the finished goods manufactured by the re-rollers are

sometimes less as compared to the material purchased from BSL which results in heavy

losses.




SUGGESTIONS TO BSL:

1. The pricing as we well as the distribution policies should be framed by keeping in

mind the requirements of the complete range of manufactures and not only the bulk

consumers. This will encourage the new re-rolling mills to approach BSL for the

material.

2. Ensure delivery of the material for which the payment is accepted so that mills are not

closed or shut down for want of material.

3. Alternatively if the material is not available the BSL authorities should not accept the

payment so that the buyer can approach some other source for procuring the materialand should not unnecessarily wait for the material, which is not available.

4. Representative from the member of the rolling mills association can be introduced in

the committee formed for pricing the various secondary products. That representative

holds the complete picture of the products as placed in the market and the prices fixed

with his consent will be on rational grounds and acceptable to all.

5. Price of the material for which 100% payment has been received as advance should

not be changed if the delay in the lifting of the material by the party is due to some

fault of BSL but if is due to deliberate delay in lifting the material by the customer

than the same policy should be applicable.

6. When the customer having rolling mill of a smaller size purchase material, which are

rolled in a bigger rolling mills than this, clearly indicates that the material is being

purchase for trading. This practice can be prevented if BSL obtains a copy of

certificates issued to the owner of every mill by the District industry centre specifying

the size of the mill.




7. BSL can appoint 2-3 authorized stockiest also to avoid trading practice. In this way

the benefit of break up pricing can be passed on to the one for whom these have been

framed i.e. the actual re-rollers.

8. Price list made available to the various re-rollers every month by BSL should count

all the items but it should clearly indicate the material which is not available so that

the customers requiring that particular material can approach some other source.

9. The infrastructure facilities at the disposal yard should be maintained properly and

needs improvements so that the pace of the lifting process be increased.

10. The management should see that the actual stock is lifted is more than what is arising.

To achieve this goal it is quite necessary that lifting of the materials may start from

the early hours and be extended to evening hours.

11. Induction of computers in marketing department.

12. Proper packing is to be done to safeguard the materials from damage, which is

occurring due to multistage handling and transportation.

13. Creating product awareness through print media, hoarding, industrial magazines etc.

14. Refund of excess payment process should be improved and simplified. It. should

make payment in less time.

15. Customer satisfaction has to be ultimate aim. Customer specifications have to be

exact to match the customer need. More stringent quality policies have to be

implemented.

16. E-payment should be implemented for complete automation of the e-auction process.

17. E-invoicing should be adopted for saving money by replacing paper based processes.

18. Concept of Key Account Manager should be adopted for better customer satisfaction

of regular customers.




19. Extensive customer contact.

20. . The pricing as we well as the distribution policies should be framed by keeping in

mind the requirements of the complete range of manufactures and not only the bulk

consumers. This will encourage the new re-rolling mills to approach BSL for the

material.

.

21. Representative from the member of the rolling mills association can be introduced in

the committee formed for pricing the various secondary products. That representative

holds the complete picture of the products as placed in the market and the prices fixed

with his consent will be on rational grounds and acceptable to all.

22. Price of the material for which 100% payment has been received as advance should

not be changed if the delay in the lifting of the material by the party is due to some

fault of BSL but if is due to deliberate delay in lifting the material by the customer

than the same policy should be applicable.

23. When the customer having rolling mill of a smaller size purchase material, which are

rolled in a bigger rolling mills than this, clearly indicates that the material is being

purchase for trading. This practice can be prevented if BSL obtains a copy of

certificates issued to the owner of every mill by the District industry center specifying

the size of the mill.

24. BSL can appoint 2-3 authorized stockiest also to avoid trading practice. In this way

the benefit of break up pricing can be passed on to the one for whom these have been

framed i.e. the actual re-rollers.

25. Price list made available to the various re-rollers every month by BSL should count

all the items but it should clearly indicate the material which is not available so that

the customers requiring that particular material can approach some other source.

26. The infrastructure facilities at the disposal yard should be maintained properly and

needs improvements so that the pace of the lifting process is increased.

27. . The management should see that the actual stock is lifted is more than what is

arising. To achieve this goal it is quite necessary that lifting of the materials may start

from the early hours and be extended to evening hours.

28. Induction of computers in marketing department.




29. . Proper packing is to be done to safeguard the materials from damage, which is

occurring due to multistage handling and transportation.

30. Creating product awareness through print media, hoarding, industrial magazines etc.

31. Refund of excess payment process should be improved and simplified. It. should

make payment in less time. Ensure delivery of the material for which the payment is

accepted so that mills are not closed or shut down for want of material.

CONCLUSION:

In the past eight weeks during my training. In order to gain practical knowledge a visit was

undertaken to see the Secondary Products and By products of BSL.The study was undertaken

to see the mode of sale of Secondary and By Products of BSL. During the training process Ilearned how e-auction, fixed price sale and tenders are used for marketing purpose by Bokaro

Steel Plant. The sales of Primary Products are assign to CMO (Central Marketing

Organization) of SAIL.

To market a product good knowledge of products is pretty necessary and for the same I had

visited different workshops such as

SSD(SCRAP AND SALVAGE DEPARTMENT)

A place where normally scrap and salvage is being kept which do not suits the

specification. Scrap generally is steel which is not above conditions. Generally scrap

and salvage is recycled to use in convertor and rest is being sold.

BPP( BY PRODUCTS PLANT)

How these by products gets produced during production process of steel and when

coal is converted into coke.

SMS(STEEL MELTING SHOP)

SALES AND CO-ORDINATION DEPARTMENT

Main focus of study was to know how they use technique and 90% marketing and

selling is done through e-auction and rest will be sold through fixed price selling and

tenders.




As Bokaro Steel Plant recognizes that leadership is essential for survival in

competition. Customer¶s satisfaction like quality is a journey not a destination .as

SAIL has a small contribution in every bodies life, there is a bit of SAIL in every

one¶s life more or less .That¶s why improved customer satisfaction is key to ensure

companies prosperity and profitability. And it is possible only when there is an ability

to produce quality products and continuous improvement in profit and growth.

The basic objective behind the study was to find out the contribution of secondary

products to total sales. By selling the secondary products and by- products in the local

market company is earning more revenue to the Company. And along with this also

creating employment opportunity in small scale industries and developing the

economy too. 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

Customer's satisfaction would happen when the management fulfills

The following dimensions.

1. Delivery in time.

2. Product mix according to customer requirement

3. Flexible pricing policies

4. Complaint settlement

5. Culture of customer service.




BIBLIOGRAPHY:

BIBIOLOGRAPHY

1. MARKETING PERFORMANCE REPORT (Apr¶07-March08¶)

2. WEBSITES:

y www.sail.co.in

(Date of site visited: 04-07-09, article name: history of Bokaro steel plant)

y www.metaljunction.com

(Date of site visited: 04-07-09, article name: about methods used to sell products)

y www.steelrx.com

y www.bokaro.nic.in

(Date of site visited: 03-07-09, article: about Bokaro steel city)

y http://money.rediff.com/money/jsp/p_l.jsp?companyCode=15510002

(Date of site visited: 01-07-2009, Financial highlights & performance)

y http://www.jstor.org/pss/3516789

y www.steel.gov.in

(Date of site visited: 01-07-09, growth of steel industry)

3. Magazine published by SAIL

4. Books of organization (page no: 19, 31, 56, 59-62, Date of issue: May 2009,)

5. Annual Directors Report 2007-2008

(Page no:5,6,7,9,11,22,23,30,31 Date of issue: July 2009,)



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