A PROJECT REPORT ON

SUBMITTED BY

RADHAKRUSNA NAYAKRegd. No: 0906287013

Internal Guide Mrs. S.S.mohanty Asst. Prof. Marketing GITA,BBSR

External Guide Mr. I.M. Panda Sr.Manager Marketing RSP

DECLARATION

I, hereby declare that this project report entitled

Marketing

Strategy of Secondary products Of Rourkela Steel Plant with special reference to marketing of secondary steel products of Rourkela Steel Plant, SAIL, Rourkela is the result of my own efforts in the plant training which I have undergone as a part of the curriculum in Master Of Business Administration (MBA), in GITA,BBSR . I had undergone my summer training under the guidance of my external guide Mr. I.M.Panda, Manager (Marketing), Rourkela Steel Plant (RSP), Orissa. I thereby declare that I have fulfilled all the provisions of industry training in Rourkela Steel Plant (RSP) and based on the training I had acquainted my self to the best in the knowledge of marketing of the secondary steel products of RSP. This project report has not been submitted to any other Institute/ University for the award of any degree or diploma.

RADHAKRUSNA NAYAK MBA (4thTrimester) GITA,BBSR

ACKNOWLEDGEMENTI express my deep sense of gratitude to my Institution GITA,BBSR my project co-ordinator as well as my internal guide Mrs. S .S Mohanty for extending me the necessary permission to complete the project work in Rourkela Steel Plant. I am thankful to Mr. I. M. Panda, Manager (Marketing) RSP, my external guide who has guided me throughout the project in order to complete the project smoothly. I had a wonderful experience of working with him as he had tried his best in providing every possible information regarding the project. His support and valuable information had made this project much simpler. I would like to pay my gratitude to Rourkela Steel Plant (SAIL), which had given me opportunities to undergo the summer training programme in its Marketing Department, RSP. Finally I wish to express my thanks to all of my trainee mates, friends and my family members for their kind co-operation in this project..

RADHA KRUSNA NAYAK MBA (4th Trimester) GITA,BBSR

EXECUTIVE SUMMARY

This project entitled Marketing Strategy of Secondary Products of RSP is undertaken as a partial completion for my MBA in GITA,BBSR ;ORISSA. This project revolves around the process of how the secondary products are disposed off, in the project the Marketing Strategy of Secondary products Of RSP system as a process for sale of secondary products is studied and gives us a ready reference to one who is interested to take part in this auctioning process. The main purpose of this project is to sale the secondary steel products of Rourkela Steel Plant through online auction and how this process is very helpful as compared to the previous system that is Order Booking System. During the production of prime products some scraps and defectives items are generated in course of production. These are generally used by different small-scale industries for different purposes. Therefore these secondary products are to be marketed in various ways and to all type of vendors, and it is very tough task for Rourkela Steel Plant to satisfy all the vendors by giving equal preferences to all. This project makes a deep study on the system followed for marketing in Rourkela Steel Plant so as to make the company as well as the customers (small scale Industries) beneficiary.

CERTIFICATEThis is to certify that the summer project entitled in Marketing strategy at Rourkela Steel Plant, is an original piece of work done and submitted by RADHAKRUSNA NAYAK has been carried out under my guidance and supervision.

I wish his a successful career in future

Mrs. S. Sagarika Mohanty Asst. prof. Marketing GITA , BBSR

CONTENT

1. 2. 3. 4. 5.

Introduction to project topic Scope Objectives Limitation

An Introduction to RSP . 6. Steel Authority of India Limited (SAIL). 7. Business planning of RSP. 8. T Q M. 9. Joint Ventures. 10. Major Units of SAIL. 11. Central Marketing Organization (CMO). 12. Rourkela Steel Plant. 13. Major Units of RSP. 14. Products of RSP. 15. Marketing Department of RSP. 16. Organizational structure of Marketing Dept.of RSP. 17. Marketing Section. 18. Secondary Steel Stock Yard (SSSY). 19. Central disposal yard. 20. Secondary products. 21. Online marketing system. 22. Auction of Materials. 23. Metaljunction.com and RSP. 24. Auction of the material. 25. SWOT Analysis on RSP 26. Suggestions 27. Findings. 28. Conclusion. 29. Bibliography

INTRODUCTION TO TOPICIn today s competitive world where cutthroat competition exists, every one wants to know their position, their strength and weaknesses. So it is very essential to know opportunity to target the potential market, capture the market, evaluate and form the marketing strategies. Marketing strategy is an element of the overall strategy of organization. It is a way through which companies achieve their goal, or in others words, it is the complete unbeatable plan designed especially for attaining the marketing objective of the firm. The marketing objective indicates what the firm wants to achieve. The marketing strategy provides the path and design for achieving them. They are normally arranged in accordance with the guidelines provided by the company objective and company budgets. Rourkela Steel Plant is the steel manufacturing plant. The main products of plant are Rail Tracks, Billets, Blooms, Plates, Wire Rods, and Angles. While the production of primary products there are generation of some byproducts or secondary products. These secondary products also sold in the market and make a huge amount of revenue. The quantity of these materials is very high therefore it needs totally different marketing strategy to sell in the market. This project was basically concerned to the Marketing & Strategic Planning of Secondary Product and collecting view of customer of secondary product, like problems face by them while purchasing these product, what are there expectation from Marketing Department. Overall, this project suggests in the improvement of the existing marketing strategy of secondary product and helps in eliminating the flaws in sale policy of Rourkela Steel Plant. .

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SCOPE OF WORKThis project is dealing with one of the largest steel plant in India. Although it only concern with marketing department of Rourkela Steel Plant but it s itself a big opportunity for anyone to cover the every single corner of marketing department because Rourkela Steel Plant has vast number of employees, working in marketing department. The scope of this project is not only concentrated on marketing department of Rourkela Steel Plant but also deal with its existing industrial customers

OBJECTIVE OF PROJECTThe objective of this project is to analyze the working condition in a government organization. Apart from this, other major objectives are

To Analyse secondary products. To understand Marketing strategy of secondary products. To Know the Sales planning for secondary products. To Know the Distribution methods of secondary products. To Collect the Customers Feed Back

LimitationDue to limited time ,I cannot able to collect more data. The employees couldnt provide sufficient information because of their busy office schedule.

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An Introduction to Rourkela Steel PlantRourkela steel plant was the torchbearer for Public Sector Steel Industry in India andcarried the banner of the industrial revolution for the nascent Republic of India. TheSteel Plant, now a unit of the Steel Authority of India Limited (SAIL), was a startedduring the mid-fifties of the 20th century in collaboration with the leading steelmakers from the Federal Republic of Germany. The units at 1.0 MT stage were commissioned between December 1958 andearlypart of 1962. With a view to meet the additional demand for flat products in thecountry, it was decided to increase the capacity of the Blooming& Slabbing Mill, HotStrip Mill and Plate Mill RSP. Accordingly, capacity of ingot steel was increased to1.0 MT to 1.8 MT between the years 1965 to 1969. Besides expansion of the units, thescheme also envisaged additional unit of new units like Electrical Steel Mill (fordynamo and transformer grade steel) and galvanized lines (for corrugated and plaingalvanized sheets). Subsequently to the expansion of the steel plant a number of unitswere added to enhance the product quality, production, productivity and to meet themarket needs. These units included Blast Furnaces, Spiral Weld Pipe Plant, Silicon Steel Mill, Captive Power Plant-II, Mechanical Shop, Structural & Fabrication Shop,Heavy Loco Repair Shop, Slag Granulation Plant and Coke Oven Battery number 5. In order to overcome technological obsolescence and to remain competitive in themarket place, even internationally, RSP went in for modernization, which wasconceived in the year 1988. Phase-I of modernization, which emphasized on

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improving the quality of raw materials, consisted of new Oxygen Plant at Blast Furnace-4, Raw Material Handling System, Coal Handling Plant (in Coke Ovens) andpower Distribution system, was completed in the year 1994. Phase-II consisted o f anew Sinter Plant, basic Oxygen Furnace and Slab Casting Shop-II, modificationof Plate Mill and Hot Strip Mill and installation of Slab Casting Shop in SMS-I, exceptfor Hot Strip Mill, which was completed in the year 1999, all the other areas werecompleted in the year 1997. Rourkela Steel Plant is one of the unique steel plants under the SAIL umbrellawith a wide variety of special purpose steels. The use of its plates in Ship building andhigh pressure vessels, Silicon Steel in electrical industries, Corrugated galvanizedsheets for roofing including industrial roofing, Pipes in the oil & gas sectors, TinPlates in packaging industries and Special Plates in the defense of the nation is wellknown.Most of the Production and Services units of Rourkela Steel Plant have beencertified by M/s RWTUV, Germany to ISO 9001:2000 Quality Management System.American Petroleum Institute (API) also certifies the Pipe Plants of RSP to API Q1Quality Assurance System Sixth Version in August 2000. The units certified under ISO 9001:2000 QMS are as follows:

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STEEL AUTHORITY OF INDIA LIMITEDSteel Authority of India Limited (SAIL) only the name is sufficient gives a brief idea about the Organization. As we know Mr. Jamshedji Tata sowed the seeds of modern steel industry in 1907. When Tata Iron & Steel Company Ltd (TISCO) was established. I the year 1939 production of steel started in another private steel company called the Indian Iron and Steel Company, now a subsidiary of the Steel Authority of India. After the independence (SAIL) Steel Authority of India Limited became a major player of steel and iron and a major supplier to all the fields. 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. SAIL owns and operates eight manufacturing plants five integrated steel plants at Bhilai,Durgapur,Rourkela,Bokaro and Burnpur producing carbon steels, and three special steel plants at Salem,Durgapur and Bhadravati, SAILs subsidiary at Chandrapur is a bulk producer of Ferro-alloys. 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. 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. Besides, SAIL has its own in-house11

Center for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organization at Ranchi. Our captive mines are under the control of the Raw Materials Division in Calcutta. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Calcutta. Almost all our plants and major units are ISO Certified. With the capacity of 12 million tones (MT) of crude steel, the Steel Authority of India Limited (SAIL) is Indias largest and among the leading steel producers in the world with a turnover of over Rs 32,280 Crores. Going beyond steel production, SAIL has formed several joint ventures in different areas ranging from power plants to e-commerce. Three are with NTPC and DVC for taking care of steel plants captive power requirements, one with USX engineers and consultants, a subsidiary of US steel corporation, for prompting IT in steel sector, and one with Bansal mechanicals works for a service center at Bokaro. SAIL and TATA steel have also jointly set up metaljunction.com Pvt. Ltd, company managing ecommerce activities in steel and related areas.The SAIL corporate office in New Delhi manages and overseas these vast business.

BUSINESS DEVELOPMENTThe company is presently implementing a growth plan, which aims at increasing steel production to the level of 22 MT by 2010, an increase of nearly 60%. Compared to the existing levels.

CORPORATE SOCIAL RESPONSIBILITYApart from providing primary medical, health and educational facilities to the people living in and around its townships, SAIL has been undertaking several initiatives to promote art and culture of the country ,With four spots academies under its fold, SAIL continues to promote spots as an integral part of the companys corporate philosophy.

SAIL - Into the FutureModernization and Expansion Plan of SAIL Corporate Plan, 2012

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Corporate Plan, 2012 (CP12) was formulated in 2004 for 4 integrated steel plants for increase in Hot Metal production to 20 Mt by 2012. After merger of in IISCO Feb 06, the Hot Metal production Plan was revised to 22.5 Mt by 2012. Expansion of Special Steel Plants was also included. Besides capacity enhancement, the plan also addresses the need of SAIL Plants towards eliminating technological obsolescence, energy savings, enriching product mix, pollution control, developing mines & collieries to meet higher requirement of key raw materials, introduce customer centric processes and have matching infrastructure facilities in the Plant to support higher production volumes. Investment to the tune of Rs 34,982 crore was envisaged under the Corporate Plan. It was envisaged to take up the Projects in segregated manner based on the Techno-economic viability of each project. Objectives of CP12 100% production of steel through Basic Oxygen Furnace (BOF) route . 100% processing of steel through continuous casting. Value addition by reduction of semi finished steel. Auxiliary fuel injection system in all the Blast Furnaces. State-of-art process control computerization/ automation. State-of-art online testing and quality control. Energy saving schemes. Secondary refining. Adherence to environment norms. The Corporate Plan, 2012 was reviewed by Honble Minister of Steel in Jul06, wherein it was decided to take up the Expansion of Integrated Steel Plants and Special Steel Plant in one go based on Composite Project Feasibility Report (CPFR). By that time Expansion of IISCO Steel Plant and Salem Steel Plant was already approved in-principle based on the Techno-Economic Feasibility Report (TEFR) of MECON. For the Expansion of other four integrated Steel Plants, MECON was assigned the job of Preparation of CPFR in Aug06. The CPFR for the four integrated steel plants was prepared by MECON. In principle approval has been accorded by SAIL Board for the expansion plans of IISCO Steel Plant13

(Jul06), Salem Steel Plant (Jun06), Bokaro Steel Plant (Dec06), Bhilai Steel Plant (Apr07), Rourkela Steel Plant (May07) and Durgapur Steel Plant (Jul07).

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BUSINESS PLANNINGPlanning set up in August 1979, was renamed as Business Planning in the perspectiveyear 1989. The purpose of the department is to formulate long term divisional Item 2006-07 Capacity as plaforour (Actual) per Expansion plant Plans 2010 covering the Hot 14.61 26.18 areas of Metal production, purchase, Crude 13.51 24.59 Steel finance and sales. It Saleabl 12.58 23.13

e Steelconcernswith the planning of the total resources of the Organisation for the achievement ofquantified objectives within specified time. The main objectives of the department are: To identify the mission of RSP. To define its objectives and adopt suitable policy. To prepare long term and short term business plan. To identify the gaps between the standards and actual performance in critical areas. To anticipate changes that affect production and external environment. This has brought a better understanding of the inter-relationship between the variousinput resources required for the conversion of these inputs into profitable products tomeet the needs of our customers

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VISION OF ROURKELA STEEL PLANT To be a respected world-class corporation and the leader in Indian Steel business in quality, productivity, profitability and customer satisfaction.

MOTTO OF ROURKELA STEEL PLANTRSP has several mottoes. But major mottoes are: Customers satisfaction Quality control Less Scrap Better facility & Adaptability

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TOTAL QUALITY MANAGEMENTTotal Quality Management (TQM) Department started functioning independentlysince January 1992 with an objective to establish company wide Total QualityMovement in RSP. TQM has been adopted in RSP on the business philosophy andtoday forms the core of all our business strategy. No other strategy can be predictiveof success in todays competitive environment. We have been able to realize thecustomer first approach and percolate down upto the workmen level with associatedchange in our attitude towards quality of our work in general and quality of product inparticular. Our first endeavour was to implement ISO 9002 QAS in both the PipePlants. Accordingly M/s TUV INDIA (PVT) LTD., New Delhi, the Indian counterpart of M/s RWTUV, Germany, has been appointed as certifying body. Pipe Plantswere certified to ISO 9002 QAS (International Organisation for Standardisation 9002Quality Assurance System) in December 1993. Subsequently Plate Mill was certifiedto ISO 9002 QAS in December 1994. ERW & SWPP have been certified to API Q1(American Petroleum Institute Q1) since inception.So far 24 units/departments have been certified to latest version of ISO 9001:2000Quality Management System (QMS). In line with the policy of our Corporate office,Silicon Steel Mill and Environment Engineering Department were certified to ISO14001 Environment Management System (EMS) by M/s Bureau of Indian Standards(BIS) in the year 2000. Subsequently SP-II, HSM, PM have been certified to latestversion of ISO 14001:2004 EMS. Quality 17

Policy, Environment Policy of RSP have been developed with approval of MD, RSP and it is being reviewed from time to timeby Steering Committee. To implement, document and maintain QMS in RSP theThree Tire Management Review is held regularly by HODs, GMs and ED(Works).To continually improve the TQM culture, Quality Improvement Teams (QITs) havebeen formed in major departments including Medical with HODs as chairman . Different sectional heads of departments have taken up Quality Improvement Projects (QIPs) for overall improvement of the process and that have also yielded good results. To inculcate TQM culture among the employees of RSP, Quality MonthCelebration are held regularly. Quality Essay, Quality Debate & Quality QuizCompetitions are held every year among employees to bring Quality Awareness andmotivation. RSP participated in Quality Awards in 1991-92, organised by CII, Eastern Region, where certificate of appreciation have been awarded for making a meritorious beginning in the introduction of TQM.

Marketing StrategyDefinitionWritten plan (usually a part of the overall corporate plan) which combines product development, promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how

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they will be achieved within a stated timeframe. Marketing strategy determines the choice of target market segment, positioning, marketing mix, and allocation of resources. See also strategic plan

JOINT VENTURESSAIL has promoted joint ventures in different areas ranging from power plants to e-commerce. The important joint ventures of the company are; 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 Rourkela Steel Plants which have a combined capacity of 240 MW. UEC SAIL Information Technology LimitedThis 40:60 joint venture between SAIL and USX Engineers & Consultants, a subsidiary of the US Steel Corporation, promotes information technology in the steel sector.

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MAJOR UNITS OF SAILSTEEL PLANTSBhilai steel Plant Bokaro Steel Plant Durgapur Steel Plant Rourkela Steel Plant IISCO Steel Plant

LOCATIONBhilai, Chhattisgarh. Bokaro, Jharkhand Durgapur,West Bengal Rourkela , Orissa West Bengal

SPECIAL STEEL PLANTS Alloy Steel Plant Salem Steel Plant Visvesvaraya Iron&Steel Ltd Durgapur, West Bengal. Salem, TamilNadu. Bhadravati, Karnataka.

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CENTRAL MARKETING ORGANIZATION (CMO)All SAIL s products except alloy, special steels and stainless steels are marketed directly by CMO through units in co-ordination with rail, roads and shipping sector to ensure quality and promote dispatch of products. The main functions of CMO are as follows. Marketing of Steel products and fertilizers. Production planning and dispatch co-ordination with plants. Export of steel. Import of coal and other consumables. Market research. Information System.

SAIL IRON ORE MINES PROFILE Mines Kiribru Meghahatuburu Bolani Barsua Kalta Chiria State Jharkhand Jharkhand Orissa Orissa Orissa Jharkhand Capacity (MTPY) 4.25 4.30 4.20 2.01 1.10 0.7

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ROURKELA STEEL PLANT

The public sector integrated steel plants, conceived by Pandit Nehru, are a tribute to his vision. They epitomize the industrial renaissance that was ushered in soon after independence. Rourkela steel plant (RSP), the first temple of modern India stands proud as a symbol of the visionary zeal of the founding fathers. The plant, which was started in the mid- fifties in collaboration with the leading steel makers of Federal republic of Germany, carried the banner of industrial revolution for the nascent republic. Over the years, RSP has made immense contribution in almost every facet of nation building

SPECIAL FEATURES OF RSP 1. 2. 3. 1st Public Sector integrated Steel plant to be set up in the country. Exclusively producing flat products. Finest Plant in India to adopt L.D. Process of Steel making.

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4. 5. 6. 7..

It has got an electrical sheet mill capable of producing both Dynamo and Transformer grade electrical sheet. It has a special plate plant where special alloy Steel Plates are shaped to different shapes as per requirement in the defense sector. RSP has the distinction of being the unique Steel Plant in India with an integrated Fertilizer Complex. It has two captive power plants (CPP-I & CPP-II) with a generation capacity of around 120 mw. PRODUCT-MIX CAPACITY (TONNES/ANNUM) Plate Mill Plates 325,000 HR Plates 130,000 HR Coils 746,000 ERW Pipes 45,000 SW Pipes 55,000 CR Sheets & Coils 220,000 Galvanized Sheets (GP& GC) 1,80,000 Electrolytic Tin-Plates 60,000 Silicon Steel Sheets (CRNO) 75,500 Special Steel Plates 3,000 Total Saleable Steel 1,839,000

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RSP PRODUCTSHR COILS Available in Indian standard or equivalent international specification for wide range of engineering and also to suit specific requirements such as tube making and cold rolling of low carbon DD and EDD quality, medium carbon, high carbon hot rolled coils for strap making after cold reduction etc.Hot rolled coils are also used for general purpose sheet applications like telephone poles. Light plates in 5 & 6 mm thickness are available in Indian Standard specifications for diverse engineering applications including railway coaches and auto body components.

PLATES

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Available in Indian standard and equivalent international specifications for welded and riveted structural applications, fired and unfired pressure vessels or low temperature application, high strength needs, abrasion resistant usages , automobile chassis and almost every other general purpose requirement. GALVANISED SHEETS Available in a variety of coating light range according to IS 227 specifications and also our own Rougal specification. The galvanized sheets find extensive usage in roofing, panelling, industrial sheeting, air conditioning ducts and structural applications. GP sheets are also available in lock forming quality.

ELECTROLYTIC TIN PLATEST P A EL E IN L T IN

Available in equal and differential coating range from 5.6 gm/m 2 to 22.4 gm/m2 coating weight and a variety of tempers suitable for the manufacture26

of beautifully printed and plain containers for packaging of all kinds of products. ERW PIPES Available in API and other international specifications and also works tested commercial qualities fro applications ranging from high pressure crude oil and petroleum products transportation to water supply systems and also for the tube wells and irrigation purposes. The ERW pipe plant has high frequency welding system and seam normalizing facility. Available in API and other international specifications as also in works tested commercial quality for applications Ranging from high pressure transportation of crude oil, natural gas, slurry transport, water supply and sewage disposal to civil engineering pilings ELECTRICAL STEEL

The Silicon Steel mill designed for the manufacture of Cold Rolled NonOriented and Cold Rolled Grain Oriented high Silicon steel sheet is now complete and the products are being manufactured with the know-how of ARMCO Steel Corporation, U.S.A Electrical Steels from this new mill are available in the form of full width coils, slit coils, and cut sheets in coated condition (C4/C3) in case of CRNO and C5 over C2 in case of CRGO Available in hot rolled condition as per customers requirement and in a range of watt loss from 4.00 watt/kg to 9.00 watt/kg at 1.5 tesla and 50 HZ. For works specification the material is tested at 1.0 tesla and watt loss from 1.70 to 5.00 w/kg. SPECIAL STEELS27

The broad spectrum of flat and tubular products from RSP has widened perceptively with the addition of various special quality steels giving it the distinction of a bulk producer of special purpose steel.

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PRODUCTS

APPLICATIONS

LPG Cylinders, automobile, railway wagon chassis and many types of high-strength applications HR Coil Pressure vessels, ship building and engineering structures

Plates

Chequered Plates

Flooring and staircases in industrial sectors and railway platforms

Steel furniture, white goods, railway coach paneling, drums, barrels, deep drawings and extra deep CR Sheets drawings and Coils

Galvanized Sheets

Roofing, Paneling, industrial sheeting, air condition ducting and structural

Container for packaging of various products including edible oils and confectionary items Electrolytic Tin Plates Small generators, starters for high efficiency rotating Silicon Steel equipment and relays etc. Sheets and Coils SW Pipes High pressure transportation of crude oil, natural gas 29 and slurry transportation

Performance Of Direct Plant Sales: 2001-02 To 07-08 I &S SCRA P 2001-02 2002-03 2003-04 2004-05 S2005-06 2006-07 2007-08 568.24 185.28 240.01 244.56 198.93 179.31 311.73 277.50 SPECIA L PLATE 27.16 21.30 14.50 23.23 37.59 101.52 106.97 PIG IRO N _ _ _ _ _ _ B.F SLA G 17.12 18.37 18.71 19.24 23.32 24.00 50.89 COKE FRAC T 11.97 20.19 22.00 20.17 12.18 7.23 15.91 FER T FERT INTE R 32.50 20.85 _ _ _ _ 9.12 COA L CHE M 32.22 37.35 39.11 39.17 40.03 74.59 _ WASTE PRODUC T 1.84 2.29 3.14 2.51 4.96 5.04 79.73 AUCTIO N & DISPOSA L 17.60 28.73 26.60 17.21 24.31 25.06 3.18 IDLE ASSET S 8.76 20.31 6.66 2.85 3.64 9.99 21.70 TOTAL

5.22 5.74 4.84 6.57 6.38 7.64 2.54

339.67 415.14 379.12 330.42 334.70 567.60 0.70

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MARKETING DEPARTMENT OF RSPThe marketing department of RSP was earlier called as the Order Department. It is only deal with the secondary product of RSP. The Managing Director Mr. B.N Singh heads the marketing department of RSP, General Manager Mr. A.P Mohanty and other executives are also in charge of the department. We can see the hierarchy of the Board of Directors and officers in the diagram below. During past few years the Marketing Department of RSP had a huge work force of employees. But due to modernization and introduction of the computer technology the work force have been reduce to less number of employees. After the implementation of Single Window System the work process is minimized. This system is a new system and it has been introduced in 1st April 2004 and for last two years it has been running successfully. There are

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two major departments under RSP as the Secondary Steel Stockyard and central disposal yard. .

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ORGANIZATIONAL STRUCTURE OF MARKETING (RSP)Mr. B.N Singh Managing Director (RSP)

Mr. S.S. Mohanty (EDMM) Mr. D.P. Roy GM (Marketing) Mr. D. Saha. DGM, I/C (Marketing)

Mr. P. Sen. AGM (Marketing)

Mrs. M. Kumar Sr.Manager (Marketing)

Mr. A. Gupta. DGM (Marketing).

Mr. S.K. Behera Manager Mr. R. Panda. Jr. Manager

Central Disposal yard Mr. J. Nayak Manager (Marketing)

Ideal Assets Mr. I.M. Panda Manager (Marketing)

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MARKETING SECTIONSMarketing section of RSP has four major sections they are as follows.

Secondary Steel Stock yardCentral Disposal Yard.

SECONDARY STEEL STOCK YARD (SSSY)The secondary steel stockyard is the main stockyard of RSP where the secondary products are kept for sale. It is constructed outside the grill gate along the Bisra Road with an initial investment of about 1.5 crores in the year 1991-92 and it came into operation on 02/03/1992. Subsequently, the yard has been expanded suiting to the requirement and necessity of RSP. ALLOTMENT OF MATERIALS AT SSSY Everyday SSSY sends the lists of plots/lots available for allotment .The plots/lots are fed to the computer. All the items and valid sale orders of those products are separately randomized through computer on that day and lists are generated. Based on random list the senior plot/lot of the senior. Item is allotted to the senior valid sale order. There are certain things, which are taken into account. After all the customers have been considered the next round for allotting materials is started. The following aspects are checked through computer: The concerned sale order should be valid w.r.t to expiry date, suspension of sale order, cancellation etc. The party should have submitted the revised price acceptance. The sale order should be sufficient (i.e. minimum 10 tonne) for allotment of one wagon. A unique SSSY no. is assigned (5 digits) to the materials on entry to the stockyard. The materials coming through truck (10 tonnes) are allotted lot nos. that is of 4 digits. The materials coming through wagons are more in quantity and are allotted plot nos. that are of three digits. For entry of trucks into the stockyard identification of the driver, helper & R.C no. of the vehicle is required.33

A private contractor is appointed for loading and unloading the material at SSSY. After the payments have been made the release order is issued, which is a financial document of sale. This contains party name , award price , details, and last date of lifting . Materials going out of SSSY, an invoice will be made-then dispatch advice will be given on which one can take out the material. On the last day lifting the material DCR (delivery completion report) is issued for each lot, which come to the finance department. This DCR is required for refunding EMD money to the customer.

CENTRAL DISPOSAL YARD 2Central disposal yard indicates the area where the materials of different shape and size declared as scrap of unserviceable or absolute are stored. The materials are collected from different units of plants as per Executive Director (Works) procedure order; these are collected daily basis and recorded in a registered called DAY BOOK. The scope of this procedure order is restricted to all arising of RSP except for those which are sold by marketing department to ancillary industries and unused arising of RSPs own products.

SECONDARY PRODUCTS. IRON STEEL SCARPS CR Steel Items HR Steel Items Scarp of pipes Semi Rolled Plates Short plates Coil End cutting Def. HR Coils Def. CR Coils Def. GP Sheets Def. Plates/HR Plates Def. CRNO Sheets

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Def. chequered Plates Pig Iron SPECIAL PLATES Misc Iron and Steel Items BF Granulated Slag COAL CHEMICALS HP Napthalene Anthracene Oil LCO GR-II Carsolic OilR FERTILIZER AMM. Sulphate WASTE PRODUCTS Ferrous Sulphate U/R FCLY Bricks Cal. Lime-10mm Cal. Dolofine Mag Carbon Bricks LD Slag

ONLINE MARKETING SYSTEMOnline Marketing is marketing on the Internet. It is a type of e-marketing, which in turn is a type of e-commerce. While at first the confusion of experiments, beta versions of websites, search engines and other online devices cause marketers to consider this world of the Internet unknowable and perhaps too unpredictable, there is now a growing body of work to which marketers are now paying attention in order to develop online marketing programs. The most known tools to marketers in the mid 2000s are currently tools grouped into 2 fields: Online advertising and search engine optimization. E-marketing tools used to drive visitors to a web site include.

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Purpose of Online MarketingWhen marketing online, the general four step process of marketing is still the guiding idea, in the online world the character of marketing becomes more deeply a conversation between a marketer and a market-of-one a concept that is central to The cluetrain manifesto. In such a role as a communicator, the online marketer is in a position to build awareness of her/his company or business in more personal terms than otherwise, and in so doing enables a more human conversation. Such conversations tend to be more warts and all and should establish confidence of the potential purchaser in the potential vendor Smith and Chaffey (2001) claim that Internet technology can be used to focus marketing on the customer, while at the same time linking to other business operations so as to achieve profitability. This can be done by Identifying The Internet can be used for marketing research to find out customers needs and wants. Anticipating The Internet provides an additional channel by which customers can access information and make purchases - understanding this demand is key to governing resource allocation to e-marketing. Satisfying A key success factor in e-marketing is achieving customer satisfaction through the electronic channel, this raises issues such as is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched?

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Detractors of this concept of human-to-human contact through online conversations suggest that companies are going to be careful about marketing in this manner and perhaps will never really have honest and open conversations as the interests of companies and businesses are not the interests of potential purchasers. The cluetrain manifesto allows for this type of thinking suggesting that businesses when marketing in this manner need to be thinking about more than just making money; if a business is thinking only about making money, it will become apparent in close online conversations and the market will treat that business in whatever manner it may as markets can now talk to each other through the same means marketers talk to potential customers.

AUCTION OF THE MATERIALS The materials after getting their respective plot and lot numbers are placed for the auction. It includes the secondary and scrap products. For scrap items they are invited open tenders from the venders and for the secondary products they are taking the help of the Metaljunction.com, which is doing auction through, online. Before this online auction process they used to followed the Order Booking System, in this process 50% of the secondary product material is placed for auction to small scale Industries (SSI) of ORISSA, while the remaining 25% for open sale and 25% for registered traders. In this system the venders were not in a position to accept the material at any cost and RSP was forced to sale the less defective secondary product at a chipper rate. Due to limited capacity of stock RSP sale the chemicals at a very chip rate to the local venders. RSP still follow the open sale auction in some cases, If secondary items are fails to make raise any demand then those material are sale through open auctions.

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TERMS AND CONDITIONS OF ORDER BOOKING SYSTEM SSI auction It refers to the Small-Scale industries in ORISSA. According to the rule passed by the Directorate of Industries of Orissa, 50% of the material should be kept for SSI. There was a security deposit of Rs 50,000 to take part in the auction and that amount will be adjusted from the material price. Open Sale It refers to all the parties through out the India, so that all the venders who are interested in auction can participate. The tender notice issued through leading newspapers, chambers of commerce etc. Those customers who bids in auction sale, they have to deposit Rs 50,000 as security before 7 days of the auction sale. Registered traders RSP adopted a policy of enlisted registered traders in the year 1976. During 1979- 80 to 1993 94 there was 59 registered traders. Again in 1994 95 another 58 traders were enlisted. For registered traders 25% of the total amount availability of the material is kept reserved, and the security of Rs 50,000.

But now the system has changed completely. As it has mentioned that they are followed online auction to their secondary products. For this system Rourkela Steel Plant has to pay 1% as a commission to it. The system provided by metaljunction.com generates maximum revenue for Rourkela Steel Plant with least outlay of the materials. This system has been effect of use to RSP from the year 2003 04 . We can compare the revenue generation and sales of material by the old system with out metaljunction.com and the system of metaljunction.com (new system).

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PRICING The various categories of secondary products, which are homogenous in nature, are sold on a Fixed price basic. A high-powered standing pricing committee fixed the prices. MD constituted this committee; this committee plays a vital role because the customers are very much depend upon their decisions. While fixing the price of such scraps, a number of factors are taken into account by the pricing committee. a) Marketed feedback from 5 RSPs zonal officers located in New Delhi, Mumbai, Chennai, Kolkata and Bangalore. b) Order position of individual items. c) Stock position of all the items in SSSY as well as in mills. d) Pricing of comparable items of sister steel plants. e) General feed back from market, including representation, if any receive from recognized bodies like Rourkela Chamber of commerce and industries, Rourkela. f) Bids received against plots/lots offered for sale through best offer. The prices are revised periodically that is usually once every month taking into consideration the prevailing conditions, feed back from zonal Offices and feed back from the local market. SALE ORDER / OFFER LETTERS Sale order is issued in the name of the customer after receive the Earnest money deposit (EMD) is deposit. Offer letters were issued for only to Registered Traders, these offers were valid for a period of 10 days for in side ORISSA customers. The customers within the validity of the offer should submit all commercial formalities and all requisite documents.

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METAL JUNCTION SERVICES LIMITED Metaljunction.com private, Ltd (MJ) is a 50:50 joint venture of TATA Steel and SAIL. Founded in February 2001, it is today India's largest e-commerce company (with e-transactions worth Rs 9,131 crore) and runs the world's largest e-marketplace for steel. The steel supply chain in India has been transformed by the company, which has improved the efficiency, transparency and convenience with the way in which steel, especially secondary steel, is bought and sold. Over 3,500 buyers and scores of public sector and private sector companies today buy and sell products using the convenience, transparency and efficiency offered by metaljunction. In September 2005, metaljunction was awarded ISO 9001:2000 certification by Det Norske Veritas, Netherlands. The certification covers the quality management system standards of the company for e-sales, e-sourcing, channel financial services and software solution services.

www.metaljunction.com Provides e-selling services for the following materials: Steel Ferro alloys, minerals and metallic Non-ferrous metals Obsolete capital goods (idle assets) Also provides e-selling services on a BPO mode. Has sold 3 million tonnes for its clients, since inception up to September 30, 2005. Provides finance to distribution channels / direct end users in association with leading banks. Has arranged finance of Rs 28.7 billion till September 30, 2005

METALJUNCTION AND RSPNow RSP is doing their secondary stock marketing online through Metaljunction.com. Though Rourkela Steel Plant does not have the system of online auction facility they are going through this process. Terms and Conditions for Online Auction:

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In online auction every one can take participate in India, so there is a big chance of false registration, for that there are some conditions. Before take participate in the auction the vender should deposit Rs 1, 00,000 as security deposit that is called earnest money deposit (EMD). After receiving the security the vender is eligible to get the password. All quotations submitted by the Supplier/his authorized agent/representative by logging on to the above web site for Enterprise Procurement System using the User Identification provided by the Service Provider and password by which the person logging into the Enterprise Procurement System is authenticated and filling up the structured on-line forms available against each Invitation to Tender, shall be considered as legal and binding documents having in all opinions the same legal validity as a physically signed quotation by the Tenderer/His authorized agent/representative. In the event of the Tenderer having submitted more than one quotation against an Invitation to Tender, only the latest quotation submitted by him shall be considered as the valid quotation for consideration of opening of the quotation and issuance of Acceptance of Tender by the company. All earlier quotations submitted in the Enterprise Procurement System shall be deemed to be superceded and invalid and will remain un-opened in the System and also not available for viewing the details by the Tenderer or the company or the Service Provider once the valid quotations against the said Invitation to Tender are opened on the scheduled date and time by the companys authorized representative. Once the quotations against an Invitation to Tender submitted in the Enterprise Procurement System are opened, the Tenderer/s shall be legally bound to honour the contract, which may arise out of the acceptance of the said quotation. In the event of non-acceptance of the contract so awarded and arising out of such quotations (including any subsequent confirmations on price, technical and commercial grounds from the Tenderer) the company shall have access to all and same legal remedies available for enforcement of the contract as available had the quotations been submitted by the Tenderer on paper attested with a signature of an individual so authorized. Once the quotations are opened, the Tenderer shall have no claim to withdraw the quotations on the grounds that he had not understood any part/total of the web posted Invitation to the Tender and/or that he had not submitted the quotations and/or that his user-id and password had been wrongly used by someone else not authorized by him and/or that the authority of the personnel who41

had been entrusted with the user-id and password had since ceased and/or that the prices, technical parameters and terms and conditions which are available on-line in the Enterprise Procurement System are not the ones that the Tenderer had submitted originally. The maintenance and security of the user-id The responsibility of the Tenderer. The Company and Service Provider shall not be in any way responsible for the loss/misuse of the same. For any disputes arising during the course of submission of the quotations on- line or for any matters subsequent to acceptance of such on-line quotations, the method of settlement shall be through the process of Arbitration by a Sole Arbitrator appointed by the MD/Chief Executive of Steel Authority of India Limited, Rourkela Steel Plant. Legal Jurisdiction: Any Contract with the Company, arising out of the Enterprise Procurement System shall be deemed to have been formed entirely at Rourkela, notwithstanding the place from which tender has been submitted. Subject to clause 7 above, legal proceeding shall be trialed by the Civil Courts having territorial jurisdiction over Rourkela. We understand that the company and Service Provider disclaim all warranties and conditions, either express or implied, including, but not limited to, implied warranties or conditions of merchantability, fitness for a particular purpose, and non-infringement. We are also aware that problems related to bandwidth, connectivity etc., are beyond the control of company and Service Provider, and hence no responsibility can be taken by Company or Service Provider for the same. That the above transmission, retention and retrieval of Invitations to Tender, Submission of quotations by the Interested Tenderers etc will be handled through the Secure Servers of the Service Provider. That the Tenderer who will be participating in the above Enterprise Procurement System will be registering themselves with the Buyer/ Service

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Provider for obtaining the required User Identification and passwords for authentication for the Enterprise Procurement System, which thereafter will be maintained by the Tenderers authorized personnel. That after the said registration in the Enterprise Procurement System with the Service provider, the Tenderer will be able to Log on to the Enterprise Procurement System of the Service Provider and View, Download and see all the Invitations to Tenders, which are transmitted by the Company to them through the Enterprise Procurement System. That the Tenderer can thereafter, subject to their agreement to the terms and conditions stipulated for each of the Invitation to Tenders posted by the company, submit their quotations in the Structured Formats available for the purpose in the Enterprise Procurement System web site indicating the Prices, Taxes and Duties, Freight and all relevant Technical and Commercial contractual information as applicable and desired by them. That once the Tenderer fills up the on-line forms for submission of quotations, the data contained in these forms will be stored in the Service Providers Servers in a secure encrypted form neither available or visible to any agency including the Service Provider or the company till the time and date of opening of the Invitation to the Tenders against which such quotations are submitted, or till such extended time and date of submission as may be indicated against the tender, subsequent communications at the discretion of the Company. That the Tenderer can during the time and date for which the Invitation to Tender is valid for submission of Quotations, submit fresh quotations in super cession of his earlier quotations, in which event the latest quotation submitted by the Tenderer only will be considered as Valid. That the quotations so submitted on-line through the medium of Internet will be opened on/after the scheduled opening date and time (including the extended date and time, if any) by an authorized officer of the company, at which time the quotations Bid part submitted by all Tenderers against the relevant Invitation to Tender will be available for Viewing in the Enterprise Procurement System by all the Interested Tenderers who have responded with a valid quotation to the said Invitation to Tender.43

After receiving the above documents and terms signed by the vender, RSP give them the password; so that they can access and take participate in that auction.

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AUCTION OF THE MATERIALSAlso known as ON-LINE FORWARD AUCTION of the materials. The materials after getting their respective plot and lot numbers are placed for the auction. They include the secondary and scrap products. For scrap items they invite open tenders from the venders and for secondary products they take the help of the Metaljunction.com, which helps in online auctioning. Earlier, there was the process of Order Booking System, in this process 50% of the secondary product material is placed for auction to small scale Industries (SSI) of ORISSA, while the remaining 25% for open sale and 25% for registered traders. In this system the venders were not in a position to accept the material at any cost and RSP was forced to sale the less defective secondary product at a cheaper rate. Due to limited capacity of stock, RSP sold the chemicals at a very cheap rate to the local venders. RSP still follows the open sale auctioning in some cases. If the secondary items fail to make any rising demand, then those materials are sold through open auctions. PAYMENT PROCEDURE After receive the sale order, which contains the detail information about the materials, vender name, and dispatch date, payment conditions. The venders get some stipulated period for lifting the materials as followed. 10 Days for lifting Next 7 days with Another 7 days with - No penalty - 1% penalty - 3% penalty

CONDITIONS UNDER REFUND OF MONEY The EMD has to pay by the customer to take part in the auction. Those who do not get any allotment for the material their EMD has refunded by RSP, but for those who got allotted of material but failed to make payment for them some penalties are there. The penalty will be charged to the total amount of material left in the stockyard. If the party fails to make payment in respect to the total amount of material, then the party will be banned for a period of 345

months to take any part in the online auction plus from the financial aspects 5% will be charged on the total lot value subject to Rs 1, 00,000 and the rest amount will be refunded to the vender after deduct the 5% penalty. ADVANTAGES OF THIS SYSTEM More customers are created through this online auction. Since they can participate any where across India. Through this online auction Rourkela Steel Plant getting good price for their secondary products and it helps to create a good and healthy competition. Better consumer satisfaction because all the activities done under one roof that is called Single Window System. Through this they are able to generate very high revenue. This process is very useful as compared to order booking system.

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SWOT ANALYSIS ON ROURKELA STEEL PLANTSTRENGTHS RSP has a dedicated and hardworking team on the marketing. RSP marketing strategy is very much efficient in marketing the secondary products. RSP has a very large secondary steel stockyard of 80,000 sq.mts, which has all the facilities that helps the stocking, and delivering of secondary products made easy. The computer networking system use by the RSP is one of the best system in the industry, it make-work easy. Metaljunction.com/ on line marketing system adopted by RSP is one of the biggest strength of RSP marketing RSPs most production units are ISO-9001 certified which helps increasing customer confidence, and improve efficiency effectiveness. Single window concept adopted by SSSY WEAKNESSES Lack of internal customers orientation inhabits implementation of plans to a substantial extent. Near to RSP there are less number of cement industries. So RSP can not sell their BF granulated slag. RSP does not compromise much on the reserved price fixed for the secondary products due to which many material remain blocked and day by day their value depreciates.

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OPPORTUNITIES In the globalized world there is huge demand of steel for the nations infrastructure development. Increasing demand of steel at the international level has raised hopes for the export of steel from India. Due to economic boom many small-scale industries have come up, so for that reason small industries demand more steel from SAIL. THREATS Due to open economy public sectors are facing more competitors in their marketing fields. Likewise TATA, JINDAL, ESSAR, MUKUND, NIPPON ,ELIGEN STEEL, Etc, provide goods at lower cost. Good qualities of coals are not available in The use of plastic and aluminum as a India. for that SAIL depends upon other countrys. substitute for steel is posing a major threat to steel industry.

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FINDINGSRSP has taken lots of steps in marketing quality steel. New players have entered into the steel market. Each player would like to gain in terms of market share. As a forward step, lots of innovations of products have been made to occupy an important market share. RSP gives priorities to various customers problem, its pricing and distribution policy. RSPS now emphasis is making oriented strategies. The marketing division of RSP is doing lot of credit worthy job in handling various customers oriented and market oriented problems. They have acquired a lot of talents and those are able to deal with various customers diplomatically. The various works are systematically executed and also documented by the marketing division. Greater market orientation has percolated across the organization. The marketing set up itself has undergone change with re-organization along product lines, bifurcation of sales and warehousing functions, use of dealer channel and improving its effectiveness. Many new technologies have been introduced like- online auctioning, through which it can market its products throughout the country through Internet marketing .

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Considering all the facts I think there should be some changes in the marketing policies of RSP. Some of the suggestions are given below: The marketing strategy of RSP should be customer oriented. so it has to be improved more. Proper measures should be taken to identify and avoid fake bidders in the process of Auction. The practice Just In Time Delivery should be thoroughly internationalized

to give RSP the strength to grow under the competitive scenario. The dispatch to the destination with the railway in this regard should be given priority. Customer database should be maintained for incorporating product wise / zone wise requirements. RSP should develop its sales promotion strategy to attract more customers. It should look after the growth of small-scale industries, which depends on the secondary products from RSP. RSP should develop its production units so that it will help to reduce productions of secondary products and produce more primary products. RSP should concentrate on minimization of the inventories and need proper planning and scheduling. Continuous efforts should be made to develop the marketing system and policies in order to satisfy the customers and maintaining their reliability. An ERP system should be installed for better result and smooth functioning of each activity in the plant.

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CONCLUSIONRourkela Steel Plant has completed six decades of existence and during this period there has been complete shift, moving from a monopolistic state to a totally competitive market environment. Over the years many changes were initiated. It being the pioneer in production of wide varieties of iron & steel and also produces diversified varieties of secondary products during the production process. RSP caters to a varied and wide spectrum of consumers. There is hardly any industry, which does not utilize its products either directly or indirectly. Customers are the beginning and end all business pursuits. Total satisfaction of customers requirement in all aspects is therefore the key to success of any business organization. Hence RSP now aims at devoting it energies towards producing quality and creating value for customers. Every operation, however small or big is carried out for keeping the customers and his expectation in mind. RSP is taking a lot of steps in marketing of steel. New payers were entered into the steel market. Each player would want to gain in terms of market share. As a forward step, a lot of innovations of products have been made to occupy an important market share. RSP gives priorities to various customers problems, its pricing and distribution policy. RSP now gives emphasis on making market oriented and customer oriented strategies. The marketing division of RSP is doing a lot of credit worthiness job in handling various customer oriented problems. Marketing division has acquired a lot of talents and these talents are able to deal with various customers needs. These various needs are collected by the talents of marketing department and take proper steps to meet the requirement of costumers demand as well as face the current challenges of the market. Greater marketing orientation has percolated across the organization. The marketing set up itself has undergone change with re-organization along with product lines, bifurcation of sales & ware housing functions, use of dealer channel and improving its effectiveness. So, from the above discussions, RSP has a hope of bright and prosperous future from its marketing division.

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BIBLIOGRAPHY

www.sail.co.in www.metaljunction.com

SAIL annual report 2008-09 RSP Diary. Office documents. Sahayog Journal. SAIL News.

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