Prestige Institute oI Management & Research

Indore
(AIIiliated to DAVV Indore)






EXPORT OF PRODUCTS OF BHILAI STEEL PLANT,
STEEL AUTHORITY OF INDIA LTD.

Summer training report submitted for
Partial fulfillment of two years
Master of Business Administration Program


GUIDED BY: SUBMITTED BY:
ProI. Suyash Jhawar Atul Kumar Jhariya

EXPORT OF PRODUCTS OF BHILAI STEEL PLANT,
STEEL AUTHORITY OF INDIA LTD





A NAVRATNA



FACULTY GUIDED: INDUSTRIAL GUIDE:
ProI. Suyash Jhawar Mr. Ayan Mishra
AGM (M&SP)

PREPARED BY:
Atul Kumar Jhariya
PIMR, INDORE
% WHM S EJER I% MAY CCER

This is to certiIy that Atul Kumar Jhariya student oI Prestige Institute oI
Management & Research Indore, MBA (Core). Has under a project worked
entitled 'Export of products of Bhilai Steel Plant, SAIL, For IulIillment oI
summer training program project work was carried out at Bhilai Steel Plant, Bhilai
Irom 13
th
June to 23
ed
July 2011.



Mr. Ayan Mishra
AGM (M&SP)
Bhilai Steel Plant


CERTIFICATE OF FACULTY GUIDE

This is to certiIy that Mr. Atul Kumar Jhariya student oI MBA (Core) has
completed his summer training report titled EXPORT OF PRODUCTS OF BHILAI
STEEL PLANT, STEEL AUTHORITY OF INDIA LTD. under my guidance.


Faculty Guide
ProI. Suyash Jhawar

ACKNOWLEDGMENT

It gives me immense pleasure to convey my heartIelt appreciation to the institution. I
sincerely thank to PIMR Ior providing me with adequate knowledge to take this interesting task.
I grateIul towards the management oI Bhilai Steel Plant (BSP) Ior providing this
opportunity to carryout analysis oI one oI its ambitious projects. I would like to thanks the
management and the staII oI BSP Ior their guidance & co-operation which they had extended
over the entire duration oI my project.
I would render my sincere thanks to Mr. Rahul Arora & Mr. Ayan Mishra who have been
extremely helpIul and co-operation to share inIormation and time which I understand, was
diIIicult.
I would also extend my deepest gratitude & sincere thanks to my institute guide ProI.
Suyash Jhawar Ior consistent support & guidance Irom time to time towards the development oI
this report.
I also pay my deep gratitude & sincere thanks to Mr. A. V. Fuley (Training coordinator,
Bhilai Technical Institute), who provide able guidance and ensure d uninterrupted training
throughout the course oI project.
Finally, I would not be able to Iinish my report without the support oI my parents,
Iriends, and my co-trainees in BSP. I thank them Irom the core oI my heart.


Atul Kumar Jhariya

TABLE OF CONTENTS
Serial no. Contents Page no.
1.
Introduction 1.
2.
History oI Bhilai Steel Plant 3.
3.
Product Overview 8.
4.
Organization structure 12.
5.
Objective 14
6.
Marketing strategies 15.
7.
Export PerIormance 24.
8.
SWOT analysis 33.
9.
Discussion 35.
10. Conclusion & Recommendations 36.
11. ReIerences 37.


INTRODUCTION
STEEL AUTHORITY OF INDIA LTD
A little bit of SAIL in everybodys life.
Steel Authority oI India Limited (SAIL) India`s leading steel maker presents the world oI
steel. Backed by over Iive decades oI experience oI producing quality steel and creating the
sinews oI a modern India. Steel Authority oI India Ltd (SAIL) among the Iive ,;7,93,8oI the
country's Central Public Sector Enterprises.
SAIL oIIers to its customers a wide product proIile matched with excellent service, and a
choice ranging Irom widely traded items. SAIL`s products have Iound ready acceptance in about
75 countries the world over. Products exported to various countries & exports are undertaken by
its International Trade Division (ITD) based in New Delhi.
SAIL`s Iive Integrated Steel Plants (ISPs) produce the widest range oI steel products that
IulIill diverse needs oI our customers. -
O Bhilai Steel Plant (BSP Chhattisgarh, 1961),
O Rourkela Steel Plant (RSP Orissa, 1961),
O Durgapur Steel Plant (DSP West Bengal, 1969),
O Bokaro Steel Plant (BSP Jharkhand, 1964) and
O IISCO Steel Plant (West Bengal, 1967).
SAIL`s three special plants -
O Alloy Steels Plant at Durgapur (ASP West Bengal),
O Salem Steel Plant at Salem (SSP Tamilnadu) and
O Visvesvaraya Iron & Steel Plant (VISL) at Bhadravati (Karnataka).
In addition, a Ferro Alloy producing plant Maharashtra Elektrosmelt Ltd. (MEL) at
Chandrapur is a subsidiary oI SAIL.

BHILAI STEEL PLANT -THE BEST INTEGRATED STEEL PLANT
The prestigious Prime Minister`s trophy Ior the best integrated steel plant in India Ior the
year 1992-93, 1993-94, 1995-96, 1996-97, 1997-98, 2003-04 and 2004-05 had been awarded to
Bhilai Steel Plant oI Steel Authority oI India Ltd.
Bhilai Steel Plant in Durg district oI Chhattisgarh, A major exporter oI steel products,
Bhilai Steel Plant produces 3.6 million tonnes oI saleable steel annually. The plant has the
distinction oI supplying the widest and heaviest plates in India, besides being the only
established supplier oI rails to the Indian Railways. The plant also specializes in other products
such as wire rods and merchant products.
Since BSP is accredited with ISO 9001:2000 Quality Management System Standard, all
saleable products oI Bhilai Steel Plant come under the ISO umbrella. At Bhilai ISO: 14001 have
been awarded Ior Environment Management System in the Plant, Township and Dalli Mines.
The Plant is accredited with SA: 8000 certiIication Ior social accountability and the OHSAS-
18001 certiIication Ior Occupational health and saIety. These internationally recognized
certiIications add value to Bhilai Steel Plant`s products and help create a place among the best
organizations in the industry. Among the long list oI national awards it has won, Bhilai has
bagged the CII-ITC Sustainability award Ior three consecutive years.
Bhilai Steel Plant has around 42158 employees. The plant has a result oriented approach
to work. The chieI executive at Bhilai is the Managing Director (MD) who is in overall control
oI all the operations oI the plant, township and the mines.
BSP is an Ore based plant. The requirement oI all principal raw materials excepting coal
and managers ore is met Irom the captive mines oI the plants. The plant owns and manages the
mechanized and manual iron ore mines at Dallirajhara, Hirri mines & Nandini mines.


ISTORY
Bhilai Steel Plant a symbol oI IndoSoviet technoeconomic collaboration is one oI the
Iirst three integrated steel plants set up in 1955 by Government oI India to build up a sound base
Ior the industrial growth oI the country, The agreement Ior setting up the plant with a capacity oI
1 million tonnes oI Ingot steel was signed between the Government oI erstwhile U.S.S.R. and
India on 2
nd
February, 1955, and aIter a short period oI 4 years, India entered the main stream oI
the steel producers with the commissioning oI its Iirst Blast Furnace on 4
th
February, 1959 by the
then President oI India, Dr. Rajendra Prasad. Commissioning oI all the units oI 1 million tonnes
stage was completed by 1961.
In 1956 the Management oI Bhilai Steel Plant was vested on the Hindustan Steel Ltd. to
improve the Iunctioning oI steel industry govt. decided to Iorm a holding company during 1972.
Thus SAIL, (Steel Authority oI India Ltd) was incorporated on 24
th
Jan 1973. All shares held by
the president oI India in the steel company were transIerred to SAIL and they become wholly
own subsidiaries oI SAIL.
BSP had adopted the technology oI production which was then current abroad in the mid
IiIties. It had gone Ior the conventional route oI steel making by the open-heart process, ingot
mounding & rolling in mills oI established repute. The 4 million tonnes expansion was based on
product diversiIication; this was taken as an opportunity Ior going in Ior oxygen Iurnace steel
making and continuous casting. The new units now incorporate the latest technologies including
computerized operation and sophistication in Iacilities.
The plant is engaged in the production oI hot metal, pig iron, ingot steel & saleable steel.
The production oI iron commenced in 4
th
Feb 1959 and steel making commenced in Oct 1959.
Bhilai Steel Plant entered the export market in 1959-60 with the export oI pig iron to Japan and
today it is exporting to USA, France, Australia, New Zealand, South Korea and Iraq.

OINT VENTURE
NTPC SAIL Power Company Pvt. Ltd.
This joint venture was set up in March 2001; this joint venture between SAIL and the
National Thermal Power Corporation (NTPC) operates and manages the Captive Power Plants-II
which has a combined capacity oI 240 MW.
Bokaro Power Supply Company Pvt. Limited
This joint venture between SAIL and the Damodar Valley Corporation Iormed in Jan
2002 is managing the 302 MW power generation and 1880 tonnes per hour steam generation
Iacilities at Bokaro Steel Plant.
Metaljunction Private Limited
A joint venture between SAIL and Tata Steel on 50:50 bases, this company promotes e-
commerce activities in steel and related areas.
Jaypee Cement Ltd.
Joint Venture with Jaiprakash Associates Ltd: Slag based cement plant oI 2.2 million
tonne per annum capacity with grinding unit at Bhilai & clinker unit at Satna has already started
production during 2010-11.

MAJOR PLAYERS OF STEEL IN INDIA
STEEL AUTHORITY OF INDIA LIMITED (SAIL)
RASHTRIYA ISPAT NIGAM LTD. (RINL Ltd)
RINL, the corporate entity oI Visakhapatnam Steel Plant (VSP) is the Iirst shore based
integrated steel plant located at Visakhapatnam in Andhra Pradesh with a capacity to produce 3
million tonnes per annum oI crude steel. Right Irom the year oI its integrated operation, VSP
established its presence both in the domestic and international markets with its superior quality
oI products. RINL is gearing up to complete the ambitious expansion works to increase the
capacity to 6.3 million tonnes pa by 2009. RINL has prepared a road map to expand the plant`s
capacity up to 16 million tonnes pa in phases.
TATA IRON & STEEL COMPANY LIMITED (TISCO Ltd.)
Tata Steel has an integrated steel plant, with an annual crude steel making capacity oI 5
million tonnes located at Jamshedpur, Jharkhand. Tata Steel has completed the Iirst six months
oI Iiscal 2007-08 with impressive increase in its hot metal production. The hot metal production
at 2.76 million tonnes is 4.6more compared to the corresponding period oI the previous year.
Tata Steel is continuing with its programme oI expansion oI steel making capacity by 1.8
million tonnes to reach a rated capacity oI 6.8 million tonnes. The Company has planned to take
the capacity to 10 million tonnes by the Iiscal year 2010.
ESSAR STEEL LIMITED (ESL)
The Essar Steel Complex at Hazira in Gujarat, India, houses the world`s largest gas-based
single location sponge iron plant, with a capacity oI 4.6 million tonnes per annum. Essar Steel
Holdings Ltd. (ESHL) is a global producer oI steel with a Iootprint covering India, Canada,
USA, the Middle East and Asia. ESHL has a current global capacity oI 8 million tonnes per
annum. With its aggressive expansion plans in India and other parts oI Asia and North America,
its capacity is likely to go up to 25 million tonnes per annum by 2012. Its products Iind wide
acceptance in highly discerning consumer sectors, such as automotive, white goods and
shipbuilding.
JINDAL STEEL & POWER LIMITED (JSPL)
Jindal Steel & Power Limited is one oI the Iast growing major steel units in the country.
The Raigarh plant oI JSPL has a present capacity oI 1.37 million tonnes pa. During the year
2006-07, the company produced 2.77 million tonnes oI saleable steel. The perIormance oI JSPL
producing during April-October 2007-08 was 2.35 million tonnes oI saleable steel.
ISPAT INDUSTRIES LTD. (IIL)
IIL has set up one oI the largest integrated steel plants in the private sector in India at
Dolvi in Raigarh District, Maharashtra with a capacity to manuIacture 3 million tonnespa oI
HRC. In the coming years, aIter augmenting necessary inIrastructure Iacility, it has planned to
export the goods Irom the captive jetty. Further, the complex envisages adding a 110 MW
captive power plant in near Iuture.
JSW STEEL LIMITED
JSW Steel is a 3.8 million tonnes pa integrated steel plant, JSW Steel has a distinction oI
being certiIied Ior ISO-9001:2000 Quality Management System, ISO-14001:2004 Environment
Management System and OHSAS 18001:1999 Occupational Health and SaIety Management
System. The capacity as on 1.11.2007 stood at 3.8 million tonnes pa and the capacity is likely to
rise to 6.8 million tonnes pa by 2008 and Iurther to 9.6 million tonnes pa by 2010.
COMPARISON

SAIL TATA STEEL JSW ESSAR
STEEL
Year oI
Establishment
1954 1907 2003(184) 1975
Products Rails
Rods
Plates
Hot rolled sheets&
coils,
Cold rolled sheets&
coils,
Wire Tubes
Construction Bars,
Hot rolled sheets&
coils,
Cold rolled sheets&
coils,
Wire Tubes
Hot rolled
sheets& coils,
Cold rolled
sheets& coils,
Wire Tubes
Galvanized
sheets& coils
iron ore
plates,
Hot rolled
sheets&
coils,
Cold rolled
sheets& coils
Production
9.15 3.8 3.5 3.3
oI production
22 9 8 8

THE GLOBAL STEEL INDUSTRY
The current global steel industry is in its best position in comparing to last decades. The
price has been rising continuously. The demand expectations Ior steel products are rapidly
growing Ior coming years. The shares oI steel industries are also in a high pace. The steel
industry is enjoying its 6
th
consecutive years oI growth in supply and demand. And there is many
more merger and acquisitions which overall buoyed the industry and showed some good results.
The subprime crisis has lead to the recession in economy oI diIIerent countries, which may lead
to have a negative eIIect on whole steel industry in coming years. However steel production and
consumption will be supported by continuous economic growth.
COUNTRY WISE CRUDE STEEL PRODUCTION
COUNTRY
CRUDE STEEL PRODUCTION
(million tonnes pa)
CHINA 272.5
JAPAN 112.7
UNITED STATES 98.9
RUSSIA 65.6
SOUTH KOREA 47.5
F.R.GERMANY 46.4
UKRAINE 38.7
BRAZIL 32.9
INDIA 32.6
ITALY 28.4

!RODUCT OVERVIEW OF BS!
PRODUCTS
Hot Rolled Coils, Sheets and Skelp
Hot rolled coils, sheets and skelp, are the largest product
category oI the company in terms oI both sales volume and
revenue. Hot rolled coils are primarily used in industrial and
manuIacturing applications, including the construction. 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 oI
widths and thicknesses as the Ieedstock Ior higher value-added
steel products. The company is the largest producer oI hot rolled coils, sheets and skelp in India.
Semi-Finished Products
The company produces semi-Iinished products, including
blooms, billets and slabs, which are converted into Iinished
products in the company's processing plant and, to a lesser extent,
sold to rerollers Ior conversion to Iinished products.
Plates
Steel plates are used mainly Ior the manuIacture oI
bridges, steel structures, ships, large diameter pipes, storage
tanks, boilers, railway wagons and pressure vessels. The company
also produces weatherprooI steel plates Ior the construction oI
railcars. The company is currently the largest producer oI steel
plates in India with a domestic market share oI more than 80 per
cent Ior these products. The company is the only producer oI wide
and heavy plate products in India.

Cold Rolled Products
Cold rolling oI hot rolled products produces a superior
surIace Iinish, improves the physical properties oI 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. Cold rolled products are also used Ior Iurther
processing, including Ior color coating, galvanizing and tinning.
The company also produces Iurther processed cold rolled products, including galvanized sheets
and tin plates.
Railway Products

Railway products, including rails, wheels and axles,
sleeper and Iish plates are produced through a process oI hot
rolling blooms in the Iinishing mills and Iorging ingots and
blooms in the Iorging press or hammer. Railway products are
used primarily to upgrade and expand the existing railway
network in India.
Structurals
Structural steel products are produced through a process oI
hot rolling in the section or structural mills. They are long steel
products with cross sections oI various shapes. I-beams, channels
and angle steel are used in mining, the construction oI tunnels,
Iactory structures, transmission towers, bridges, ships railways and
other inIrastructure projects.

Bars and Rods

The company produces steel bars and rods through a
process oI hot rolling billets in the Iinishing mills.
ReinIorcement steel and wire rods are primarily used by the
construction industry. The company is one oI the largest
producers oI reinIorcement bars in India which are primarily
sold to the construction industry.
Merchant Products

Merchant products are the products which are used in many oI structural and constructions. The
merchant products are the channels, rounds, angles, TMTs, TMT Channels, and Ilats etc.


Specialty Products

Specialty products include electrical sheets, tin plates and pipes. Electrical sheets are cold
rolled products oI silicon steel Ior electrical machinery. Tin plates are cold rolled steel
electrolytically coated with tin Ior Iood packaging. Pipes are longitudinally or spirally welded
Irom hot rolled coils Ior conveying such things as water, oil and gas.
Alloy and Stainless Products
In addition to the steel products indicated above, SAIL produces a wide range oI 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 Ior sophisticated applications, including in the automobile, railway and
deIense industries.

!RODUCT !ROFILE
Shop !7oducts !7oduct !7ofile End use / consume7s
Rail & Structural
Mill
Rails
Heavy Structural


Crane Rails
Crossing sleepers
Rails
Beam
Channel
Angle
CR80,100 & 120
Indian Railways, Export
InIrastructure Projects


Cranes
Broad gauge sleepers
Merchant Mill Lt. Structural

TMT
Round
Angle
Channel
TMT
Rounds (Plain)
Engineering and
InIrastructure Projects
Wire Rod Mill Wire Rods(Plain)
Wire Rods (TMT)
Electrodes ManuIacture
InIrastructure Projects
Plate Mill Plates Boilers, DeIense , Railways,
Ship building, LPG
cylinders, Irrigation &
Export
Semis Finished
Products
Irom BBM, CCS
Bloom, NWS Slab
& Billets
HC Bloom
Slab
Billets

Blooms
Re-rollers
Pig Iron Foundry
By Products Coal Chemicals




Processed Slag
Ammonium Sulphate,
Tar products,
Benzol products (NG
Benzene, Toluene, Xylene,
Solvent oil, Heavy Benzol)
Granulated slag Irom CHSG
Plants & SGP Ior cement
manuIacture
ORGANISATIONAL STRUCTIRE OF BILAI STEEL !LANT

CHIEF EXECUTING OFFICER
GM (F&A)
GM (IT)
GM (M&SP)
GM (IA)
GM I/C
(MINES)
DIR (M&HS)
ACVO
COC
ED (PROJECTS)
GM (PROJECTS)
GM (PP&E & BEDB)
GM I/C (SERVICES)
GM (SAFETY)
GM I/C (M&U) (REFR)
GM (P MILL & MILLS-LP)
GM (CO, CCD & SP, OHP)
GM I/C (PE,EN & STEEL)
GM (QUALITY)
GM (CCS) - SMS-II
ED
(WORKS)
ED (P&A)
GM (TS)
GM (PERS)
GM (HRD)
GM (MS)
DGM (L & A)
ED (MM)
GM (MM)
Marketing Department
Marketing Department oI Bhilai Steel Plant is known as marketing and strategic planning
department. It deals with the activities oI marketing oI prime products and secondary products
etc.

The marketing is done in two ways.
Marketing oI prime product where activities are co-coordinated by central marketing
organization.
Marketing oI secondary product and coal chemicals are done directly by sale oI product
by SAIL (BSP) marketing oI these products are conducted by various sections by
marketing department oI Bhilai Steel Plant through e-Auction process.

Marketing Department oI SAIL (BSP) is being divided under various sections as:-
Market Development and strategic planning
Secondary product
Coal chemicals
Merchant mill
Wire rod mill
Rail and structural mill
Billet and bloom mill
Plate mill
Export.

Functions oI Marketing Department
To monitor the orders issued by CMO so that these orders IulIilled in time.
Coordinate with CMO to get orders Ior an underutilized mill.
To sell the entire secondary product directly i.e. directly by SAIL (BSP).


OBJECTIVES
The objectives oI the study are:
To understand the marketing strategies oI Bhilai Steel Plant.
To understand the export and import oI the Bhilai Steel Plant.





ARKETING STRATEGIES

Marketing oI Bhilai Steel Plant (SAIL) is mostly done by the Central Marketing
Organization (CMO) and Ior the some kinds oI products as secondary products and the
marketing oI Prime products is done by the Branch Sales OIIice (BSO) as well Sales Residence
Manage (SRM). The marketing and the order processing handle by the CMO with the speciIic
marketing strategies. Exports oI BSP and SAIL take care by the CMOs division as International
Trade Division (ITD) New Delhi.
Marketing Strategies oI BSP
1. Ensuring dominant position in the Indian steel market
2. Maintaining continuous global presence (around 10 by sales value)
3. Building & enhancing Brand Value` oI SAIL products
4. Further thrust on Key Account Management process
5. Gradual shiIt towards more oI customers sales, as against 'traders sales
6. Trading oI steel by sourcing Irom international sources, to enable packaging Ior key
customers
7. Popularizing SAIL products in the rural market
8. Maximizing IT enabled customers service and interactions
The seven c`s oI SAIL
Consistent Quality

Committed Delivery

Customized product

Competitive Price

Complaint Settlement

Contemporary Products

Culture oI Customer Service

Central Marketing Organization (CMO)
The Central Marketing Organization (CMO), with its head quarters at Kolkata,
coordinates the country-wide marketing and distribution network. Central Marketing
Organization (CMO) is India`s largest industrial marketing set-up. It markets carbon steel
produced by the Iive integrated steel plants oI SAIL. CMO through its joint venture partner M/s
Metal Junction has simpliIied steel buying by providing internet based Iacilities through its on
line e sto7e`, providing door delivery Iacilities to small house-builders. The customer-Iriendly
approach oI CMO is backed by practical aIter-sales service. Through the process oI Key Account
Management, CMO provides single-window service to key customers across the country Ior
every business transaction Irom enquiry to order booking, order tracking to delivery, and even
consultancy and AIter-Sales Service.
Major Function oI CMO
Market research,
Demand Assessment,
Segment prioritization,
Product planning,
Sales planning and aIter sales services,
Developing business plans,
Analyze competitive position, etc.
CMO has a network oI sales oIIices and stockyards within the country Ior purpose oI
distribution oI materials outlets. The other aspects controlled by CMO are planning, customer
services, shipping and transport data inIormation system etc. The distribution oI iron & Steel
products is done by the CMO through 45 branches and stockyards located in all important steel
consuming centers in the country. For administration purposes, the branches are grouped under 6
regions. The distribution through the stockyard is oI the order oI 69 and through direct
dispatches by the plant 31. They operate various schemes oI the products is Iast and the
customer are satisIied.
Divisions oI CMO
CMOs various division and departments which are conducting the export & import
perIormance as well as in domestic market which are as Iollows as the major divisions:
International Trade Division (ITD)
Central Planning & Products Division
Market Management Division
Marketing Services Divisions (MSD)
Commercial Division
Fertilizers and Chemicals Divisions
Market Research Division
Transport & Shipping Department
Finance & Accounts Department
Legal Cell
International Trade Division (ITD)
CMO`s International Trade Division (ITD): In New Delhi manages exports oI iron &
steel products oI Sail`s integrated steel plants and maintains close liaison with buyers abroad.
ITD has successIully established SAIL`s reputations as a producer oI quality steel products and
a consistent supplier across the Iive continents. Among the notable destinations are China,
Korea, UAE, Europe (UK, Italy, Spain & Germany), Taiwan, Japan, Thailand and Singapore as
well as neighboring countries like Sri Lanka, Myanmar, Nepal and Bangladesh, etc. The critical
Iunction oI ensuring eIIicient and proper dispatch oI export materials and timely import oI raw
materials to maintain the pace oI production oI the SAIL plants is perIormed by CMO`s
Transport & Shipping Division (T & S) headquartered at Kolkata, T&S has branch oIIices at
Haldia, Paradip and Vizag ports.
Branch Sales OIIice (BSO)
It is a part oI CMO various BSO oIIices are located all over India which perIorms the job
oI marketing oI SAIL products throughout the India. Its Iunctions are demand Iorecasting,
developing business plans, does market research, analyze competitive position, receives the order
Irom various customers, and making sales plans etc.
Sales Resident Manager (SRM)
BSO cannot directly contact with the plant Ior various dispatches & order, So SRM is
basically a coordinator between BSO and plan, each plant has their SRM oIIices located near the
plant premises Ior access oI the orders.

Functioning oI Marketing & Strategic Planning Department oI BSP
Marketing & Strategic planning department oI BSP acts as an interIace between Plant &
CMO Ior coordinating marketing activities with CMO Ior sale oI prime products. Apart Irom
this, it also carries out direct sale oI secondary products and by-products generated in plant.













unctioning of M&SP Department

Prime Product Area
The various activities in prime product sale namely Iinalizing monthly sales plan , order
management, monitoring and review as well as the CSI review and complaint handling are co-
ordinate through M & SP department as detailed below.

Co-ordination
with CMO/ITD
Ior sale oI Prime
Products
Direct Sale oI
Secondary/by
products
Key Activities oI
M & SP dept
Sales
Planning
Order
Mgmt
Key A/c
Mgmt
ComplainL
Handling
Secondary
I & S items
Coal Chemical,
Fertilizer
Granular
Slag, Misc
items
Making Sales Plan
Although annual sales plan is made in the beginning oI the year based on the demand
projection by MRG/CMO, month-wise sales plan is worked out based on the actual demand
indication Irom CMO. The plan is Iinalized in the sales co-ordination meeting jointly with CMO
representatives Irom diIIerent regions. The plan takes into account the product-wise, proIile-
wise, quality-wise supply capability oI plant and the most productive/proIitable product mix in
demand is Iinalized.

Order Management
It is one oI the structured and core processes with logistics managed by ulspaLch co-
ordination/ TraIIic department. IT is the key enabler oI the process. Customers` requirements are
clearly understood, compiled and documented and compared with Technical Delivery Conditions
(TDC). Based on the TDC, the orders are classiIied as:
Standard orders
Standard orders are executed as per the laid out quality plan Irom steel making to
dispatch.
Standard order with special conditions
The accepted special conditions are mentioned in the steel order and rolling programme
so that they are communicated down the line and the customer requirements are taken care oI.
Special /Customized orders
In case oI special orders, a separate protocol is made which is the quality plan Ior that
order Irom steel making to dispatch. All export orders are treated as special orders. Protocol and
TDC together ensure delivery oI customized products.
In case oI Ilat products, each order is examined beIore its acceptance by a cross-
Iunctional team comprising oI executives Irom Plate Mill, SMS-II, RCL, PPC and M&SP
departments. Plate enquiry committee examines the Ieasibility oI acceptance oI orders in terms
oI size, grade oI steel, TDC and other requirements oI the customers and conIirms the delivery
schedule. The process oI 'Order Processing and Delivery
Process Ilow oI BSP

CUSTOMER BRANCH SRM MARKETING PPC HEAT
MAKING
&
PROD.


PLANNONG


DISPATCH SHIPPING SHOPS INSPECTION BAY ROLLING
(RAIL/ ROAD) TESTING (RCL)

rder Processing Cycle

As regards products oI BSP, which are primarily standard products, campaign rolling is
done Ior various proIiles and qualities as per demand projection by CMO in the sales co-
ordination meeting. Orders are provided by CMO as per the commitment against which supply is
made to the desired destinations.
Order Review Mechanism
Review oI status oI availability oI orders and planning Ior heat making is done on daily
basis. For plates, it is done by PPC (Programming) in consultation with Plate Mill, SMS-2 &
RCL. For long products, planning oI heat making and review oI daily perIormance is done by
head oI BBM in association with representatives Irom Iinishing mills, SMS-1, RCL and PPC.
Timely delivery in line with the customer`s requirement/commitment is planned in the
daily dispatch co-ordination meeting in which SRM is present Irom CMO Ior deciding the
destinations Ior rake dispatches. Review oI plate order IulIillment (Irom heat making stage to
dispatch oI material) on weekly basis is done by head oI Plate mill along with representatives
Irom all concerned agencies. Quality related issues and IulIillment oI special steel orders/
committed deliveries are reviewed by ED (Works) on weekly basis. For plate orders which
cannot be serviced due to any constraint, revised delivery schedule is worked out and
communicated to the customer through SRM.
The network oI CMO includes Branch Sales OIIices, Warehouses and Customer contact
oIIices. This network is supported by a strong network oI SAIL dealers to ensure Bhilai steel
reaches even in the remotest areas oI our country.
M & SP department Iacilitates in eIIective implementation oI various strategies adopted by
BSP in enhancing customer satisIaction that are enlisted below
A. Market segmentation
B. Internal customer satisIaction
C. New product development
D. Quality Improvement
E. Customization
F. Customer service through IT
G. Maximizing Value added products
H. Partnership with customers
I. Key Account Management
Pricing oI products
Factor considered Ior pricing oI Secondary Steel Product
O CMO`s price
O Price oI sister concern
O Market Ieedback
O Last 12 month`s price trend, stock and dispatch
O Current demands, stock storage capacity and market trend
O Quality and actual condition oI material
O Decisions in meeting
O Any other related Iactors (seasonal, item, etc.)

The methods used Ior pricing the secondary steel product: -
Fixed Price Method
O By a pricing committee as per corporate guidelines.
O At price review meeting which is held once at the beginning oI the month.
O As per the market condition.

E-Auction Pricing System
E- Auction Pricing reIers to theirs auction, which is conducted through the internet with
the bidders Irom one or more location. In other words, the venue Ior auction is on internet
website/the 'Service Provider`s website assigned by 'Service Provider would constitute venue
Ior the purpose oI online auction. In this method the price Ior the product in decided.
At metaljunction, SAIL pioneered the concept oI eAuctions Ior steel by moving the entire
process oI auctions to the Internet. With state-oI-art technology and unique services to support
buyers and sellers in the decision making, Iinancing and logistics stages we make sure that our
auction tools help enterprises realize their sales and procurement goals with considerable cost
savings.
We auction a diverse range oI products ranging Irom Secondary Steel, Iron, and
Chemicals to Automobiles and Idle Assets. We have also auctioned specialty metals like
Platinum and other products in the past.

EX!ORT !ERFORANCE
The steel sector in India was setup to meet its domestic needs and support inIrastructure
development oI the nation. Steel exports Irom India started aIter 1964, the Iirst time India's
supply dominated its domestic needs. Though the Indian exports are quite vulnerable to domestic
demand conditions, the export market has been doing reasonably well in the past Iew years. In
spite oI the Iact that India has done well, it still Iaces stiII competition, holding the twenty-IiIth
rank in the global export markets Ior steel.
Export oI products Irom BSP
BSP exported a wide range oI its product which are mostly semis (billets, blooms,& pig
iron) Ilat products (plates) and long products (rails, wire & rods) to over 75 countries and ranked
in global market through its quality products. BSP exported 213682 tonnes in FY10 and 124679
tonnes steel products in FY09.
Export section:
Bhilai Steel Plant has an export section to take care oI the requirement oI
International Trade Division (ITD). The export enquiry received by International Trade Division
is sent over to Bhilai Ior detail discussion. AIter the conIirmation Irom Bhilai International Trade
Division initiates action on commercial settlement and enter into a contract with the Ioreign
buyer. The work order then issued by International Trade Division is distributed to various
agencies likes Purchase, Finance and GM Services. Soon aIter subsequent rolling takes place.
AIter inspection is made the consignment is sent through railways to Vishakhapatnam port, with
these salient Ieatures oI exports by sea are:
Orders are booked by the ITD (International Trade Division) at New Delhi.
Nomination oI vessel by buyer (FOB)/Chartering oI vessel (CFR) Ior exporting the
materials wherever required as per contract.
Coordination with SRM Ior timely dispatch to the ports.
Arranging Third party inspection wherever required as per contract.
Preparation oI Stowage plan and loading sequence.
Physical loading oI material within allowable time in the vessel by the contractor.
Coordination with the concerned agencies and related documentation.
Settlement oI dues with the buyer and the vessel owner as per requirement.
Realization oI export proceeds Irom the bank.
Disposal oI Export surplus material on payment oI duty by Plant.
Claim and Realization oI Export beneIits (there are certain export beneIits/incentives
allowed Ior exporters Export promotion measures by the Ministry oI Commerce).
In case oI export to Nepal, The consignment is moved by wagon either to Patna, Kanpur or
Bhilai Ior onward dispatch to the buyer in Nepal and etc, with Salient Ieatures oI exports by land:
Orders are booked by the ITD (International Trade Division) at New Delhi
Related documentation at customs point
Pre shipment inspection wherever necessary
Realization oI export proceeds Irom the bank
Claim and Realization oI Export beneIits.

Bhilai Steel Plant exports various products to various countries. BSP exports in the Iorm
oI product mix in the year 2010-11.
PRODUCT-MIX EXPORT (t/a)
Semis 5213
Plates (up to 3600 mm wide) 181665
Wire Rods (TMILLION TONNES, Plain &
Ribbed)
169070
Rail & Heavy Structural 9383
Merchant Products
(Angles, Channels, Round & TMILLION
TONNES bars)
514
Total Export In 2010-11 365845


Semis
The semi Iinished steel including blooms, billets and slabs, which are converted into
Iinished products in the BSP's processing plant and, to a lesser extent, sold to re-rollers Ior
conversion to Iinished products. Semis were exported many oI the previous years as in FY06 it
was 64825tonnes, 45859t in FY07, 15364t in FY08, 25545t in FY09 and 5213tonnes in FY10.
Semis are exported Irom previous years to many countries in large amount. Export oI
semis are shown through graph-

Export of Semis in b/w Y06 to Y10

Semis are exported in between FY06 to FY10 to various countries like United Arab
Emirates, Myanmar, Bangladesh, Sri Lanka, and Nepal. Semis as Billets, blooms, slabs are also
sale in Indian domestic markets.

0
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Flat Products
Plates are used mainly Ior the manuIacture oI bridges, steel structures, ships, large
diameter pipes, storage tanks, boilers, railway wagons and pressure vessels. The company also
produces weatherprooI steel plates Ior the construction oI railcars. With diIIerent measurement
and quality.
Flat products are exported Irom previous years to many countries broadly
as126476 tonnes in FY06, 125640t in FY07, 95949t in FY08, 69582t in FY09 and 181665t in
FY10. Export oI plates are shown through graph-

Export of Plates in b/w Y06 to Y10

Company exports plates broadly to diIIerent countries Ior many oI previous years as well
as sale in domestic market. Bhilai Steel Plant is the major producer and exporter among the all
plants oI SAIL.


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Export oI Ilat products
Wire & Rods
Wire & rods are the long products which are only exported by BSP and no other plant oI
SAIL were contributed in the export oI wire & rods. Wire and rods are mainly exported to Japan,
Korea, Taiwan, Vietnam, the Philippines, and Singapore etc.
Wire & rods like TMTs, plain rods etc are exported Irom BSP 21946t in FY06, 22413t in
FY07, 13156t in FY08, 27050t in FY09 and 15321t in FY10 which are represented through
graph-

Export of wire & rods in b/w Y06 to Y10

Rails & Heavy structurals
Rails & structurals were exported in only FY10which was only 8578 tonnes in year 2010-
11. The reason Ior the export only in one year is that the Tie-up between the SAIL & Indian
Railways. That why rails and other heavy structure related to railways are only going to the
Indian Railways. Rails are produces with various measurements.
BSP produces 867509 tonnes in the year 2010-11 but it exported only 8578 tonnes in the
whole year. Rails are comes under the long products as well as beams, but the wheels, axels are
also produces with rails.
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Wire & rods export
Production and export details are as Iollows in the Iorm oI graph-

Export of Rails & Structurals in b/w Y06 to Y10
Merchant Products
Merchant products are those products which are used in the engineering & in
inIrastructures projects. Merchant products are like LT structural (Angles, Channels) TMT,
Rounds, & Round TMTs, etc. are used in the structural in the supporting oI long and Ilat
products. Which are exported in FY07 306tonnes, in FY09 566t and in FY10 118tonnes.

Export of Merchant Products in b/w Y06 to Y10
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Export oI Rails & Structeral's
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Years
Export oI Merchant product export
Export Irom oI BSP with comparison oI other plant as well as SAIL`s all over
export

Bhilai Steel Plant is the largest producer oI rails, Ilat products and many other products
and other Plants oI SAIL are also contribution a large quantity in SAILs allover production and
export that detail is as Iollows-

Export from BSP, SAILs other plants & all over SAIL

The export Irom BSP in the FY06 was 19940tonnes, other plants exported 285470t, and
then SAIL`s total exports were 479490 t. In FY07 BSP exported 230204t, other plants 241842t,
and then SAIL`s total exports were 472046 t. In FY08 BSP exported 230204t, other plants
202002t, and then SAIL`s total exports were 472206 t. In FY09 BSP exported 182773t, other
plants 282162t, and then SAIL`s total exports were 464965 t. In FY10 BSP exported 32500t,
other plants 11900t, and then SAIL`s total exports were 44400 t. It shows the export Irom BSP
and other plant and also SAIL has a down Iall in the export oI its products.
0
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300000
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200607 200708 200809 200910 201011
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Export Irom BSP, SAIL & other plants
8S
CLher lanLs
SAlL
Global Market
The iron and steel sector is highly diversiIied, with products ranging Irom basic raw
materials to semi Iinished and Iinished products. The present study integrates on two broad
categories- iron and steel and iron and steel articles. Iron and steel includes a wide category oI
products such as alloys, bars and rods, Ilat-rolled products whereas iron and steel articles mostly
comprises oI consumer goods like tables, tubes, pipes, track etc.

World`s top steel exporters & producers:
Ranking
(2010)
2010
(mt)
2009 2008 2007 Company eadqua7te7
1 98.2 77.5 103.3 116.4 ArcelorMittal Luxembourg
2 52.9 40.2 33.3 31.1 Hebei Iron and Steel China
3 37.0 31.3 35.4 28.6 Baosteel Group China
4 36.5 30.3 27.7 20.2 Wuhan Iron and Steel China
5 35.4 31.1 34.7 31.1 POSCO South Korea
6 35.0 26.5 37.5 35.7 Nippon Steel Japan
7 31.1 25.8 33.0 34.0 JFE Japan
8 23.2 20.5 23.3 22.9 Jiangsu Shagang China
9 23.2 26.4 21.8 -
Shandong Iron and Steel
Group
China
10 23.2 20.5 24.4 26.5 Tata Steel India
11 22.3 15.2 23.2 21.5
United States Steel
United States
Corporation
12 22.1 20.1 16.0 16.2 Ansteel China
14 18.3 14.0 20.4 20.0 Nucor Corporation United States
15 18.2 16.7 19.2 17.3 Severstal Russia
16 16.4 11.0 15.9 17.0 ThyssenKrupp Germany
17 16.3 15.3 17.7 16.2 Evraz Russia
18 15.4 14.8 15.0 14.2
Maanshan Iron and Steel
Company
China
19 14.9 15.1 12.2 12.9 Shougang China
20 14.0 11.3 16.0 17.9 Gruppo Riva Italy
21 13.6 13.5 13.7 13.9
Steel Authority oI India
Limited
India
23 13.3 11.0 14.1 13.8 Sumitomo Metal Industries Japan
24 12.9 8.4 9.9 10.0 Hyundai INI Steel South Korea
25 12.7 8.9 11.0 10.9 China Steel Taiwan
1,413 1,219 1,329 1,351 Worlds total

SWOT ANALYSIS

St7ength:

StaIIing: StaIIing as being a Govt. venture it is looked upon Ior generating and oIIering
employment.

Prizing oI steel: SAIL oIIers subsidized prize oI steel and hence caters to high volume oI clients
Market position: Market position oI SAIL which is on a very successIul level and thus there is no
hesitation in its clients.
Sales Channels are strength as it uses all possible channels Ior promotion and Sales.

Financial Resources: Financial Resources also acts as strength as it can use Govt. Iunds Ior
ventures.
ProIitability is strength as SAIL records astounding proIit Iigures in spite oI providing social
beneIit.


Weakness:

Competitive Vulnerability: Competitive Vulnerability is another weakness as competitors
include private players with better quality manpower, strategies and policies.

Production oI a single vertical (Steel) and no diversiIication.

Also a major Weakness is completely answerable to the Central Govt. and hence exposed to
corruption and mismanagement.


Oppo7tunities:

SAIL is aIIiliated to the Central Govt. oI India and hence expansion and growth is possible.

Also SAIL being Iinancially sound can undertake merger and acquisition projects with weaker
counterparts.

It can also involve in production oI Iorward integration products and by-products apart Irom its
core product (Steel) with the help oI its healthy brand image


Th7eats:

Change in Govt. policies and Economy trend which can have a direct impact on the Iunctioning
oI SAIL.

Also emerging and existing private sector competitors who can steal market share.

Also late implementation oI technology and modern machinery as compared to counterparts can
pose a potential threat.

Apart Irom the above major threats, labour turnover can also cause problems due to existence oI
higher paying jobs with better beneIits in the sector.


DISCUSSION
Thus it can be discussed that the above reason that there is a downIall in export oI steel &
iron component to the world market Irom the BSP/SAIL it may be because the no. oI players are
increased & due to India`s own consumption domestic use oI steel is increases in the
inIrastructure and constructions.
The competition Irom the worlds steel producer. The prizing oI the steel products is the
one most important reason Ior the downIall.
The high excise duty paid by the importers that may be the reason Ior the downIall. And
the number oI producer in the world is increases and the productivity oI the various countries
Steel plants in India as well as in the world.
In the previous year the export oI the Bhilai Steel Plant & SAIL got the good export
values to their diIIerent counties as New Zealand, Iraq, Singapore, Malaysia, Thailand,
Indonesia, Australia, Mexico, Europe, Sudan, Oman, the United Arab Emirates, Myanmar,
Bangladesh, Sri Lanka, and Nepal etc.



CONCLUSION & RECOMMENDATIONS
I think BSP/SAIL should implement these strategies -
1. Contract with other Ioreign companies.
2. Concentrate on small countries those who have less iron & steel companies.
3. DiversiIication on other industries.
4. Concentrate on branding equities.
5. Make promotion strong on int. markets.
6. Reduced raw materials expenses.
7. Concentrate on proper target markets and market segments.
8. Reduced or do less promotion wherever they established market.
9. Concentrate on those places with services n quality delivery.
10. Give some credit Iacilities to their existing customers & credit Iacilities to those
customers who have govt. authority.
11.Acquire some small industrial units in other countries n give their names this will help in
branding.
12.II they want to promote then take a best comp. on that country those have strong brand
value.
13.II any company wants to take entry in India give their brand names. This will help to inc.
market share.
LIMITATIONS
There are some hurdles in doing internship based research and trainings.
While studying a public sector there are many problems that the vocational trainees have
to Iace e.g. those oI obtaining permission to collect inIormation etc. BSP is very big organization
it is not possible to cover & to go through all marketing aspects oI plant within a short span oI
six weeks.
Time bound is there as in the organization like BSP. It is not possible to know every
working style oI marketing department.

REFRENCES

Books:
1. Kotler, Philip, Principal oI Marketing Management, New Delhi, Prentice Hall oI
India, Millennium Edition, 1999.
2. Willium J. Santon, Michel J. Etzel and Bruce J. Welker, Fundamentals oI
Marketing Management, New York, McGraw Hill, 10
th
Edition, 1995.
Websites:
www.sail.co.in
www.bhilaisteelplant.com
www.steelworld.com
www.mateljunction.com
SAIL Annual Journal 2009-10
Annual report oI BSP 2006-11
Working notes M & SP Department