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A Comprehesive Study of Marketing Strategy for the Secondary Products) at Bhilai Steel Plant (An Integrated Unit of Steel Authority of India Ltd.)

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A Comprehesive Study of Marketing Strategy for the Secondary Products) at Bhilai Steel Plant (An Integrated Unit of Steel Authority of India Ltd.) SUMMER TRAINING REPORT ON (A COMPREHESIVE STUDY OF MARKETING STRATEGY FOR THE SECONDARY PRODUCTS) AT BHILAI STEEL PLANT (AN INTEGRATED UNIT OF STEEL AUTHORITY OF INDIA LTD.) BY ( NIKHILESH YADAV) 2007-08 IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION DEGREE DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY ,RAIPUR (C.G.) 1 CERTIFICATE This is to certify that Mr. Nikhilesh Yadav Of DIMAT, MBA Semester – II has successfully completed the summer training in partial fulfillment of requirement for the award of MBA Degree prescribed by the Chattisgarh Swami Vivekanand Technical University, Bhilai. This report is the record of authentic work carried out by the student during the academic year 2007 – 2008. (Pradip Singh) Internal Guide Director 2 DECLARATION I Mr. NIkhilesh Yadav hereby declare that this report is the record of authentic work carried byme during the academic year 2007-08 in Bhilai Steel Plant (BSP) An integrated unit of Steel Authority (SAIL) Bhilai, District Durg (C.G.) ( ) Signature of the student ( Nikhilesh Yadav ) Name of the student 3 ACKNOWLEDGEMENT I express my sincers thanks & regards to Bhilai Steel Plant, for giving me the opportunity to study on the topic “A comprehensive study of Marketing strategy for Secondary products at Bhilai Steel Plant.” First & foremost I express my heartily thanks to Mr. Nitin Deshpandey (Director DIMAT) my project guide Mr. Pradip Singh. I also thanks to Mr. Rama Raju MD (BSP), Mr. S.M. Singh (GM-HRD), Mr. Anil Sharma (DGM-HRD), Mr. S. Dubey (DGM-HRD), Mr. D.K. Jadhav (Sr. Mgr.-HRD), Mr. Namdev Barange (Training coordinator –HRD) V.T. Section. I also express my heartily thanks to Mr. S.R.Rai GM (M&SP) & Mr.Ramarao AGM (M&SP) for their kind guidance. I also express my sincere thanks to my coordinator Mr. S.S. Parida (M&SP) and all the heads of concerned sections of marketing department, Mr. Sanjay Jaswal, Mr. D.P. Viswakarma, Mrs. Susmita Dey, Mr.arindham jain (M & SP), Mr.Satpathy, Mr. R. Garga, and Mr. Devendra Srivastava, Mr. P.K. Sahu for their kind cooperation in this project work. And lastly, I would like to thank all my group members for their kind cooperations to complete this project work successfully. Date… NIKHILESH YADAV 4 EXECUTIVE SUMMARY During my eight weeks of summer training in the Bhilai Steel Plant, I have done project research work on “Study on Marketing & Sales analysis of Secondary Products”. The project report tells us about the secondary product section and the whole process, starting from collection of scrap to the lifting of material and its distribution. The initial part of the report tells about SAIL and importance & performance of Bhilai Steel Plant in the steel authority. It also tells about the contribution of Bhilai Steel Plant to Sail‟s profit. The next part describes the procedure of selling & distribution the secondary product. And the major consumer of BSP in this field. It also throws light on use of secondary products for re-rolling mills as raw material and the process of re-rolling and its products. The finding of my study emphases the problem which I have observed. Such as refund of payment procedure, price list of material, which is not available in the stockyard, all the marketing decision relating to prime product are taken by the SAIL and carried out by CMO. In my opinion the organization is more concerned with larger order of steel products by ignoring the smaller orders of steel products. The exports policy of SAIL considers it secondary to domestic selling as it is a Govt. undertaking and first priority is given to domestic marketing. The conclusion deals with the objective of Bhilai Steel Plant to achieve sales analysis of secondary products. The last portion conclusion & recommendation to improve the functioning of marketing department of Bhilai Steel Plant. INDEX 5 Sr. No. Content Page NO. Chapter-1 Introduction 7 Chapter-2 Company Profile 22 Chapter-3 Product Profile 32 Chapter-4 Objective & scope of the project 41 Chapter-5 Research Methodology 43 Chapter-6 Data collection and interpretation 46 Chapter-7 Conclusion 61 Chapter-8 Limitation 63 Chapter-9 Recommendation 65 Chapter-10 Appendices 66 Chapter-11 Bibliography 70 6 CHAPTER -1 INTRODUCTION STEEL ATHOURITY OF INDIA LIMITED (SAIL) During struggle for independence, Pt. Jawahar Lal Nehru our first prime minister of independent India had a very clear vision about the role of steel in the 7 development of our nation. Although Tata Iron & Steel Co. 9TISCO) established in 1907 marking the beginning of Indian Steel industry followed by Indian Steel Corporation (1918) they were too small to meet the development requirement of a big country like ours. Therefore, in the first industrial policy resolution of the government soon after independence, government decided to establish steel plant in Public Sector only. However work could be started at faster pace in 1954 when. Hindustan Steel Limited was formed and the steel plants of 1 MT capacity of each were established with provision of further expansion at Bhilai, Rourkela and Durgapur with assistance from USSR, West Germany and UK respectively. Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is fully integrated Iron and Steel maker, producing both basic and special steel 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 sheet, electrical sheets, structural, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces Iron and Steel at four integrated plants and three special steel plants, located principally in the eastern and central religions of India and situated closed to domestic source of three raw materials including the Company's Iron Ore, limestone and dolomite mines. SAIL'S wide range of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organization (CMO) and the International Trade Division (ITD). CMO encompasses a wide network of 38 branch offices and 47 stockyards located in major cities and towns throughout India. With technical and managerial expertise and known-how in steel making gained over decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide. 8 SAIL has a well-equipped Research and Development Center for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Beside SAIL has its in-house Center for Engineering Technology (CET) Management Training Institute (MTI) and Safety Organization at Ranch. Its 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 its plants and major units are ISO certified. Integrated Steel Plants :- . Bhilai Steel Plant (BSP) in Chhattishgarh. Durgapur Steel Plant (DSP) in West Bengal. Rurkela Steel Plant (RSP) in Orissa. Bokaro Steel Plant (BSL) in Jharkhand. IISCO steel plant (IIS) in west Bengal. Special Steel Plants :- . Alloy Steel Plants (ASP) in West Bengal. Salem Steel Plant (SSP) in Tamil Nadu. Visvesvaraya Iron and Steel Plant (VISL) in Karnataka. Subsidiaries:- . Maharashtra Elektrosmelt Limited (MEL) in Maharastra. JOINT VENTURE : 9 SAIL has promoted joint venture in different areas ranging from power to e- commerce. NTPC SAIL Power Company Pvt. Ltd. Set up in March 2001, this 50:50 joint venture between SAIL and the National Thermal Power Corporation (NTPC) operates and manages the Captive Power plants - II of the Durgapur and Rurakela Steel Plants which have a combined capacity of 240 MW. Bokaro Power Supply Company Pvt. Ltd. This 50:50 joint venture between SAIL and the Damodar Velley Corporation formed in January 2002 is managing the 302 MW power generation and 1880 tones per hour steam generation facilitates at Bokaro Steel Plant. Bhilai Electric Supply Company Pvt. Ltd. Another SAIL-NTPC joint venture of 50:50 basis formed in March 2002 manages the 74 MW power plant - II of Bhilai Steel Plant which has additional capacity of producing 150 tones of steam per hour. UEC SAIl information technology Ltd. This is 40:60 joint ventures between SAIL and USX Engineers & Consultants. "A subsidiary of the US Steel Corporation, promotes information technology in the steel sector. MetalJunction.com Private Ltd. A joint venture between SAIL and Tata Steel on50:50 basis, this company promotes e-commerce activities in steel and related areas. SAIL – Bansal Service Centre Pvt. Ltd. 10 .
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