1. Summer Training Project Report
On
“Study on Selling Of Secondary Product of
Steel Authority of India”
Submitted to C.C.S.University, Meerut
For the part in Partial Fulfillment for the Award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
(Session 2010-13)
Submitted To Submittted By:
MS. CHHAVI SINGH Sansaptak Mazumdar
Faculty Guide Roll No: 8424663
BBA-6th
SEM
JAIPURIA INSTITUTE
INDIRAPURAM, GHAZIABAD
1

2. PREFACE
I, Sansaptak Mazumdar, student of Jaipuria Institute, Ghaziabad is pursuing B.B.A. course
and towards the partial fulfillment of it, I have undergone a summer project for the period of
five weeks. I have put my endeavor to make the objective accomplished in the stipulated
time. Despite all the limitations, obstacles, hurdles and hindrances I have toiled my hand to
achieve the goal desired. Being a neophyte in the highly competitive world of business and
in cooperate world, I have come across difficulties to make the objective a reality. Anyhow
with the kind help and genuine interest formally supported by extreme support of my guide
and college authorities, I am presenting this hand carved efforts.
The purpose of this project is to test the level of competency of an employee based on the
above aspects. Competencies comprise the knowledge, skills, values, and attributes
demonstrated through behavior that results in competent and superior performance.
Competency describes what superior performance actually do on a job that produces superior
results.
If anywhere something is found unacceptable or unnecessary to the theme you are welcomed
with your valuable suggestions.
2

3. ACKNOWLEDGEMENT
An endeavor is not complete and successful till the people who make it possible are given
due credit for making it possible. I take this opportunity to thank all those who have made
the endeavor of mine successful for me and for all.
I would like to give a special thanks to Ms. Chhavi Singh, my guide, for the inputs that came
in from you at all points critical in the making of this project.
I would also thanks to Mr. P.K.Sahay (A.G.M.) and Mr. Ranjan Banik (Senior Manager)
of Training Department who provided me the way for my project.
Sansaptak Mazumdar
3

4. DECLARATION
I, Sansaptak Mazumdar hereby declare that the project work entitled “Study on Selling of
Secondary Product of steel authority of india” is an authenticated work carried out by me
at BSL, Bokaro
Under the guidance of to Ms.CHHAVI SINGH for the partial fulfillment of the award of
Bachelor of Business Administration and this work has not been submitted for
Similar purpose anywhere else except to Jaipuria Institute, Ghaziabad.
Sansaptak Mazumdar
4

5. EXECUTIVE SUMMARY
The present study was undertaken to see the mode of sale of Secondary Product of SAIL.
Marketing department is the newest genesis from the SAIL and attempts to reach their where
no corporate has ever ventured so far. The survey was conducted in Marketing Department
and Sales Coordination department. I was to find how auctions, fixed price and tenders
are used for marketing purpose BSL.
Various steps involved are as follows. To know about the E-auctions of marketing
departments. How they use this technique and 60% marketing and selling is done through
auction and rest will be taken through fixed price selling and tenders.
Data were mainly collected by marketing department of BSL.
BSL is the largest Steel manufacturing sector of India and is top ranked in the global fortune
500 companies.
During my training I had to find out mode of sale of secondary products of BSL. Primary
products are sold by CMO, Delhi. I passed through various stages of problems and
difficulties to accomplish the task of project work but it was a privilege for me to take this
opportunity a challenging work to study and observe "marketing of Secondary products in
B.S.L", which is a unit of SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in competition
environment. Customer's satisfaction like quality is a journey and not a destination. It is
essential that everyone in the company have a clear understanding of what customer
satisfaction means if the plant aim to achieve leadership in customer satisfaction. While
improved customer satisfaction is necessary for ensuring prosperity of the company must also
be recognized that ability of the company to satisfy its customers would depend on its ability
to continuously improve its profit and growth.
The basic objective behind the study carried out by me is to study the major contribution of
Secondary product to total sale, which is pre-determining for the success of the company. By
selling the Secondary product in local market company is earning profits. It is also creating a
employment in small scale industries and developing the economy.
5

6. INDEX
LIST OF CONTENTS
Sl. No. Subject Page No
1. 4
2. Declaration 5
3. Acknowledgement 6
4. Synopsis
5. Chapter-1 Executive Summary 8
6. Objectives 9
7. Literature Review 10
8. Chapter-2 About SAIL 11-45
9. About Bokaro Steel Plant 46-53
9. Chapter-3 Marketing Department of BSL 54-67
10. Marketing Network 68-71
11. Chapter-4 Secondary Product 72-78
12. Procedure of Secondary Product 79-84
13. Chapter-5 Sales and Distribution 85-93
14. Chapter-6 Mode Of Sale 94-122
15. Chapter-7 Review of Study 123-124
16. Findings 125-126
17. Suggestions 127
18. Conclusions 128-129
19. Word of Thanks 130
20. Bibliography 131
6

7. OBJECTIVE OF THE STUDY
Every project work has certain objective behind it with any proper objective one cannot plan
were. One heads to have properly well behind objective. If the objective of the study is not
proper that the whole research is of in use.
In Bokaro steel plant there is various section of marketing department. Since I have choose
"Marketing of secondary products in B.S.L." my main objectives are:-
its 1. Market study of secondary product in BSL.
2. To know what is secondary product and why is it necessary to sell the secondary product.
3. To know the pricing of secondary product.
4. Ensuring timely dispatch of material, products, scrap etc to the potential customers.
5. To know the use of secondary product.
6. To know the others terms and conditions for marketing of secondary products.
7

8. RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation.
The Advanced Learner’s Dictionary of Current English lays down the meaning of research as
“a careful investigation or inquiry specially through search for new facts in
any branch of knowledge.” research as a “systematized effort to gain new knowledge.
Some people consider research as a movement, a movement from the known to the unknown.
It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for,
when the unknown confronts us, we wonder and our inquisitiveness makes us probe and
attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all
knowledge and the method, which man employs for obtaining the knowledge of whatever the
unknown, can be termed as research.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organising and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson in the
Encyclopaedia of Social Sciences define research as “the manipulation of things, concepts or
symbols for the purpose of generalising to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art.”
METHODOLOGY ADOPTED
The methodology adopted by me during the project on "Marketing of
Secondary Product on B.S.L" can be divided into two parts:
(A) To know about the organization
(B) To know about the procedure and working of Marketing Department and Secondary
Section.
To know about the organization. Information / data has been
collected from:-
(i) Government Publications.
(ii) Books of organization.
(iii) Journal.
8

9. (iv) Company's Website.
(B) To know about the procedure and working of Marketing Department and Secondary
Section information has been collected by:
(a) Observation Method
(b) Personal Interview with
(i) AGM
(ii) Senior managers
(iii) Managers
(C) Document provided by them.
9

10. LITERATURE REVIEW
Doing training was really an opportunity before me when I could convert my
theoretical knowledge into practical and of real world type. Fortunately, the company I got is
a true follower of the various principles of management and also is the largest company in its
segment of the industry. The working environment that I was being provided was
extraordinary and helped me a lot in delivering my work properly and with full potency of
mine. During struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister, had a
very clear vision about the role of Steel in the development of our country. Although TATA
Iron & Steel Company (TISCO) has been establishment in 1907 marking the beginning of
Indian Steel Industry followed by Indian Steel Co. (1918), they were too small to meet the
development requirements of a big country like Ours. Therefore, in the 1st
Industrial Policy
Resolution of the Govt., soon after independence, Govt. decided to establish Steel Plants in
Public Sector. However, work could be started at fast pace only in 1954, when Hindustan
Steel Ltd., was formed and three Steel Plants of 1 MT capacity each, were established with
provision of further expansion at Bokaro, Rourkela and Durgapur with assistance from
USSR, West Germany and U.K. respectively.
To improve the functioning of Steel Industry, Govt. decided to form a holding company
during 1972, which was named as Steel Authority of India Ltd., (SAIL) and the same was
incorporated on January 24, 1973, with an authorized capital of Rs. 2000 crores.
10

11. CHAPTER-2
INTRODUCTION TO SAIL
HISTORY
During struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister, had
a very clear vision about the role of Steel in the development of our country. Although TATA
Iron & Steel Company (TISCO) has been establishment in 1907 marking the beginning of
Indian Steel Industry followed by Indian Steel Co. (1918), they were too small to meet the
development requirements of a big country like ours. Therefore, in the 1st
Industrial Policy
Resolution of the Govt., soon after independence, Govt. decided to establish Steel Plants in
Public Sector. However, work could be started at fast pace only in 1954, when Hindustan
Steel Ltd., was formed and three Steel Plants of 1 MT capacity each, were established with
provision of further expansion at Bokaro, Rourkela and Durgapur with assistance from
USSR, West Germany and U.K. respectively.
11

12. VISION
To be a respected world–class corporation and the leader in Indian Steel business in quality,
productivity, profitability and customer satisfaction.
CORE VALUES OF SAIL
 Customer Satisfaction
 Concern for People
 Consistent Profitability
 Commitment of Excellence
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 defence industries and for sale in
export markets.
Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL
manufactures and sells a broad range of steel products, including hot and cold rolled sheets
and coils, Organization sheets, electrical sheets, structurals, railway products, plates, bars and
rods, stainless steel and other alloy steels. SAIL produces iron and steel at four integrated
plants and three special steel plants, located principally in the eastern and central regions of
India and situated close to domestic sources of raw materials, including the Company’s iron
ore, limestone and dolomite mines.
SAIL’s wide range of long and flat steel products are much in demand in the domestic as well
as the international market. This vital responsibility is carried out by SAIL’s own Central
Marketing Organisation (CMO) and the International Trade Division. CMO encompasses a
wide network of 38 branch offices and 47 stockyards located in major cities and towns
throughout India.
12

13. With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL’s Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
WHO OWNS SAIL
SAIL is a public sector undertaking of the Government of India which holds 85.82% of
equity. Other major shareholders are Financial institutions with 7.57% stake and individuals
with 3.68% stake. For complete details see Shareholding pattern.
THE NEW MILLENIUM
SAIL today is one of the largest industrial entities in India. Its strength has been the
diversified range of quality steel products catering to the domestic as well as the Export
markets and a large pool of technical and professional expertise.
Having achieved the initial goal of laying the foundation for the industrial development of the
country. SAIL took up the new challenge of facing the era of liberalized economy and the
emerging competitive scenario in the steel market. On the eve of entering the new
millennium, SAIL launched its Financial and Business restructuring program. The strategy
for the company is to emerge as the lowest cost producer in the global steel market with its
continuous upgrading of a technology and skill manpower. SAIL is moving up steadily in its
competitiveness in the global market. It has the potential to utilize the opportunities and meet
the needs of demanding customers.
UNITS:-
 Central Marketing Organization (CMO), Kolkata.
 R&D center for Iron and Steel, Ranchi.
 Center for Engineering & Technology, Ranchi.
 Raw Material Division, Kolkata.
 SAIL Consultancy Division, Delhi.
 Environment Management Division, Kolkata.
 Central Coal Supply Organization, Dhanbad.
13

14.  Central Growth Work in Kulti, West Bengal.
MARKETING STRATEGY OF SAIL :-
 Qualitative improvements in service besides the products.
 Marketing channel optimization to take advantage of logistic.
 Demand for small lots and in remote area.
THE SEVEN C’s OF SAIL:-
 Consistent Quality.
 Committed Delivery.
 Customized Product Mix.
 Contemporary Products.
 Competitive Price.
 Complaint Settlement.
 Culture of Customer Service.
GROWTH OF STEEL INDUSTRY IN INDIA:-
Formation of Hindustan Steel Ltd. 19th
Jan 1954
Formation of SAIL 24th
Jan 1973
Production Started at BSL 4th
Feb 1959
Production Started at RSP 3rd
Dec 1958
Production Started at DSP 18th
Dec 1959
Production Started at BSL 29th
Jan1964
Production Started at Salem Steel plant March 1982
14

15. BOARD OF DIRECTORS
Shri S.K. Roongta Chairman
Dr. V.Shyamsundar Managing Director, Durgapur Steel Plant
Dr. B.N. Singh Managing Director, Rourkela Steel Plant
Shri V.K. Srivastava Managing Director, Bokaro Steel Plant
Shri R.P. Singh Managing Director, Bhilai Steel Plant
Mr. Sain Dittamal Nagpal Director
Shri Anil Kumar Director
Shri Vipin Y. Puri Director
15

16. BANKERS
State Bank of India
Central Bank of India
UCO Bank
State Bank of Mysore
IDBI Bank Ltd.
Bank of Baroda
State Bank of Patiala
Canara Bank
Punjab and Sind Bank Ltd.
Punjab National Bank
Allahabad Bank
United Bank of India
Jammu & Kashmir Bank
Syndicate Bank
State Bank of Saurashtra
Union Bank of India
State Bank of Hyderabad
Bank of India
Bank of Maharashtra
Indian Overseas Bank
State Bank of Indore
Oriental Bank Of Commerce
16

17. INTEGRATED STEEL PLANTS
BOKARO STEEL PLANT
India’s largest flat steel producer in the public sector, Bokaro Steel Plant (BSL) was designed
to produce flat products like Hot Rolled Coils/Plates/Sheets, Cold Rolled Coils/Sheets, Tin
Mill Black Plates and Galvanised Plain/Corrugated Sheets (GP/GC). Bokaro’s world class
hot rolled products enjoy excellent acceptance in the international market.
With a saleable steel production capacity of 3.78 milloins tones, the plant has been
modernized with continious casting facilities and has been operating above rated capacity for
tha last two years. It is also equipped with a state –of- the-art Hot strip Mill that produce
quality steels of international standards. A range of special steel products like DMR 249A, E-
460/500/550, IS-8500 Fe540B, SAILCOR, SAILPROP, SAILMEDSi, SAILRIM, API grade
steel, HRNO, SAILMA,WTCR,BSL-46 for auto sector etc., have been introduced after
modernization. The plant’s Steel melting shop, continuous casting shop, slabbing Mill, Hot
strip Mill,Hot Rolled Coil Finishing and Cold Rolling Mill complex are accredited to
ISO9001:2000 QMS standards. The coke and iron zone will also be brought under the fold of
the ISO system before the end of this Financial year.
BHILAI STEEL PLANT
Five-time winner of the Prime Minister’s Trophy for Best Integrated Steel Plant in the
country. Bhilai Steel Plant (BSP) is a major producer of rails, heavy and wide (upto 3600 mm
) steel plates as well as structural’s. With an anneal production capacity of 3.153 MT of
saleable steel, the plant also specializes in other items such as wire rods and merchants
products, including TMT bars and rods branded SAIL-TMT. Facilities for production of long
rails have been installed at the plant’s Rail & Structural’s Mill with capabilities enhanced to
produce rails in rolled lengths of 80 meter and welded panels up to 260 meters.
Since BSP is accredited with ISO9001:2000 Quality Management System standards, all
saleable products of the plant come under the ISO umbrella. BSL’s Plate Mill, Dalli
Mechanized Mines, Rail Mill, Steel Melting Shop 1, Wire Rod Mill and Merchant Mill have,
17

18. in addition, received ISO14001:1996 certification for their Environment Management
Systems.
DURGAPUR STEEL PLANT
Durgapur steel plant (DSP) with a saleable steel capacity of 1.586 million tones produces
medium structural’s , merchant products, scalp and continuously cast billets. Its extra high
strength thermo mechanically treated Bars, branded sales TMT, have proven market
acceptability, DSP is also a major producer of railway producer like forged wheels and axels.
The modernized plant is equipped with state of the atr of the technology for quality steel
making. DSP’s primary areas comprising Raw Materials Handling Plant, Sinter Plant, Coke
Oven & Coal Chemicals, Blast Furnaces & Steel Melting Shop and entire mills zone
consisting of Blooming and Billet Mills, Merchant Mills , Skelp Mills, Wheel & Axle Plant
and various other faculties are covered under ISO9001:2000 quality assurance certification.
MAJOR UNITS OF SAIL
STEEL PLANTS
1. Bokaro Steel Plant (BSL) in Chhattisgarh
2. Durgapur Steel Plant (DSP) in West Bengal
3. Rourkela Steel Plant (RSP) in Orissa
4. Bhilai Steel Plant (BSP) in Jharkhand
SPECIAL STEEL PLANTS
1. Alloy Steel Plant (ASP) in West Bengal
2. Salem Steel Plant (SSP) in Tamil Nadu
3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka
18

19. SUBSIDIARIES
1. Indian Iron & Steel Company Limited (IISCO) in West Bengal
2. Maharashtra Electro smelt Limited (MEL) in Maharashtra
OTHER UNITS
 Raw Material Division (RMD) at Kolkata, West Bengal
 Central Marketing Organisation (CMO) at Kolkata, West Bengal
 SAIL Consultancy Division (SAILCON) at New Delhi
 Research & Development Centre for Iron & Steel (RDCIS)
 at Ranchi, Jharkhand
 Centre for Engineering & Technology (CET) at Ranchi, Jharkhand
 Management Training Institute (MTI) at Ranchi, Jharkhand
 Central Power Training Institute (CPTI) at Rourkela, Orissa
 SAIL Safety Organisation (SSO) at Ranchi, Jharkhand
 Environment Management Division (EMD) at Kolkata, West Bangal
 Growth Division (GD) at Kolkara, West Bengal
 Central Coal Supply Organisation (CCSO) at Dhanbad, Jharkhand
SAIL CONSULTANCY DIVISION
SAIL’s high level of expertise and vast experience in building, operating, and maintaining a
chain of integrated and mini steel plants and associated facilities encompassing diverse
technologies, equipment and product mix enables it to provide a wide range of consultancy
services. The SAIL Consultancy Division(SAILCON) based in New Delhi is the single
window provider of design, engineering, technical, managemnt and training consultancy and
services in iron & steel and related areas to clients at home and abroad. An ISO 9001:2000
19

20. certified unit, SAILCON is equipped to render quality services from concept to
commissioning.
The range of services on offer include:
 Design and Engineering Services: Feasibility Studies; Project proposal for Financial
Institutions; Detailed Project Reports; Basic/Detailed Engineering; Tender
Specification Preparation; Bid Evaluation.
 Project Management Services: Project Planning, Monitoring & Supervision;
Procurement & Inspection; Plant Eraction & Supervision; Start up, Testing &
commissioning; Post Commissioning Stabilization.
 Technical Services: Plant Operation & Maintenance; Technology Up gradation;
Quality, Productivity & Performance Improvement; Environment Management &
Pollution Control; Energy Conservation & Audit; Mine Planning & Development.
 HR/Training Services: Training needs Assesment; Setting up Training
Systems/Facilities; Training for operations, Maintenance & Management of
Steel/Power Plants; Engineering & Technical Skills Training; Management
Development Programmes; Training for Trainers; Recruitment Services; Appraisal &
Reward Systems; Preparation of Personnel & Training Manuals.
 Management Services: TQM & ISO9001:2000 Certification Assistance; Corporate
Planning; Benchmarking; Corporate Restructuring; Marketing & Distribution;
Software Development & System Design.
20

21. Company Profile
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 defence industries and for sale in
export markets.
Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL
manufactures and sells a broad range of steel products, including hot and cold rolled sheets
and coils, galvanised sheets, electrical sheets, structurals, 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's wide range of long and flat steel products are much in demand in the domestic as well
as the international market. This vital responsibility is carried out by SAIL's own Central
Marketing Organisation (CMO) and the International Trade Division. CMO encompasses a
wide network of 38 branch offices and 47 stockyards located in major cities and towns
throughout India.
With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients worldwide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steel
industry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET),
Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines
are under the control of the Raw Materials Division in 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.
21

22. PRODUCTS
SAILS MAJOR PRODUCTS
SAIL has a wide range of steel products - both Long and Flat.
Among Long products are: Structurals, Crane Rails, Bars, Roads & Rebars, and Wire Rods;
and Flat products covering the range of HR Coils, Sheets & Skelp, Plates, CR Coils & Sheets,
GC Sheets/GP Sheets and Coils, Tinplates, Electrical Steel. SAIL also produces Tubular
products and Railway products such as rails, wheels, axles and wheel sets.
Other products of SAIL include Pig iron and Fertilizers such as Calcium Ammonium Nitrate
("Sona"), Ammonium Sulphate ("Raja") and Coal Chemicals like Benzene, Toluene, Xylene
etc.
Product Wise
Semis
Blooms, Billets & Slabs
Long Products
Structurals
Crane Rails
Bars, Rods & Rebars
Wire Rods
Flat Products HR Coils, Sheets & Skelp
Plates
CR Coils & Sheets
GC Sheets GP Sheets and Coils
Tinplates
Electrical Steel
Tubular Products Pipes
Railway Products Rails
Wheels, Axles, Wheel Sets
22

23. Plant Wise
Bokaro Steel Plant HR Coils & Sheets
Plates
CR Coils & Sheets
GP Sheets & Coils/ GC Sheets
Pig Iron, Chemicals & Fertilizers
Durgapur Steel Plant Blooms, Billets & Slabs
Joists, Channels, Angles
Bars, Rods & Rebars
Skelp
Wheels, Axles, Wheel Sets
Pig Iron, Chemicals & Fertilizers
Rourkela Steel Plant
HR Coils
Plates
CR Coils & Sheets
GP Sheets/ GC Sheets
Tinplates
Electrical Steel
Pipes
Pig Iron, Chemicals & Fertilizers
Bhilai Steel Plant Blooms, Billets & Slabs Beams
Channels, Angles
Crane Rails
Plates
Rails
Pig Iron, Chemicals & Fertilizers
23

24. Products
Hot Rolled Coils, Sheets and Skelp
Hot rolled coils, sheets and skelp (narrow coil), are the
largest product category of the company in terms of
both sales volume and revenue. Hot rolled coils are
primarily used for making pipes and have many
direct industrial and manufacturing applications,
including the construction of tanks, railway cars,
bicycle frames, ships, engineering and military equip-ment and automobile and truck wheels,
frames and body parts. Hot rolled coils are also used as feedstock for cold rolling mills where
they undergo further process-ing. Hot rolled coils are also delivered to the company's own
cold rolling mills and silicon sheet mill and pipe plant in a wide range of widths and
thicknesses as the feedstock for higher value-added steel products. The company is the largest
producer of hot rolled coils, sheets and skelp in India.
Semi-Finished Products
The company produces semi-finished products,
including blooms, billets and slabs, which are
converted into finished products in the company's
processing plant and, to a lesser extent, sold to rerollers
for conversion to finished products.
Plates
Steel plates are used mainly for the manufacture of bridges, steel structures, ships, large
diameter pipes, storage tanks, boilers, railway wagons and pressure
24

25. Cold Rolled Products
Cold rolling of hot rolled products produces a
superior surface finish, improves the physical
properties of the steel, such as tensile strength, and
reduces its thickness to precise gauges. As a result,
cold rolled products generally command higher
prices thanhot rolled products. The products of the cold rolling mill include cold rolled sheets
and coils, which are used primarily for precision tubes, containers, bicycles, furniture and for
use by the automobile industry to produce car body panels. Cold rolled products are also used
for further processing, including for colour coating, galvanising and tinning. The company
also produces further processed cold rolled products, including galvanised sheets and tin
plates.
KEY DEVELOPMENT
05/20/2008
25

26. The Government of India, under pressure from the left parties has decided that Navaratna
companies like NTPC Ltd., Bharat Heavy Electricals Limited, Indian Oil Corp. Ltd., ONGC
Ltd. and Steel Authority of India Limited will not be allowed to raise funds from the equity
market. Finance ministry has recently rejected NTPC’s capital raising plans which involved
the dilution of 4.75% of the Government’s holding in order to raise INR 60 billion. As per a
merchant banker if NTPC is not allowed to raise the funds through a public offer then the
government should allow a rights issue. The banker added that this decision by the
government would hamper expansion plans of most Navaratna companies.
Steel Authority of India Ltd. Reports Standalone Earnings Results for the Fourth Quarter and
Full Year of Fiscal 2008; Recommends Final Dividend for Fiscal 2008
05/16/2008
Steel Authority of India Ltd. reported standalone earnings results for the fourth quarter and
full year of fiscal 2008. The company reported profit company climbed 24.97% to INR
23,767.60 million from INR 19,018.80 million in the same quarter, previous year. Net sales
for the quarter rose 29.78% over prior year period to INR 134,779 million as against INR
103,850.80 million for the same period of last year. Total income for the quarter climbed
30.42% to INR 138,552.50 million compared with the prior year period. The company
reported earnings of INR 5.75 per basic share during the quarter, registering 25% growth over
INR 4.60 in the prior year period. For the financial year 2008 , the company reported 21.76%
rise in consolidated net profit to INR 75,680.30 million from INR 62,153.30 million in the
previous year. Consolidated total income for the year climbed 17.69% to INR 415,714.50
million compared with the prior year. The board of directors has recommended a final
dividend of 18% on paid up equity share capital, in addition to the interim dividend of 19%
already paid, for the financial year 2007-08, thus taking the total dividend to 37% on paid-up
equity share capital.
Steel Authority of India Ltd. Set to Enter Himachal Pradesh with Processing Unit
05/16/2008
Steel Authority of India Ltd. is all set to come up with a processing unit in Kangra district,
Himachal Pradesh. The initial investment in the plant is estimated at INR 1,000 million. The
company has identified 200 canals in Kandrori village and the Himachal government is in the
process to transfer the land.
Sail Current Status
26

27. 4QFY08 Result Highlights
1. Higher realization and strong volumes resulted in 29.8% rise in net sales to Rs
134,779 mn as against Rs 103,851 mn during the corresponding quarter last year.
2. Provisioning for sixth pay commission lead to 431 bps decline in EBITDA margin to
24.8%. Therefore EBITDA increased just 10.6% to Rs 33,437 mn as against Rs
30,240 mn during the correspondingquarter last year.
3. Thanks to higher other income and one time exceptional gain of Rs 3,133 mn, PAT
grew 25.0% to Rs 23,768 mn as against Rs 19,019 mn for the corresponding quarter
last year.
4. EPS was Rs 5.75 for this quarter.
FY08 Result Highlights
1. Net sales grew 16.7% to Rs 402,142 mn as against Rs 344,680 mn last year.
2. Higher value added products and better productivity helped the company to improve its
EBITDA margin 43 bps for full year. EBITDA increased 18.5% to Rs 113,390 mn as against
Rs 95,693 mn last year
.
3. PAT increased 21.5% to Rs 75,368 mn as against Rs 62,023 mn last year.
4. Diluted EPS was Rs 92.4 for the full year.
Virtually Debt-free Company:
The company continues to be virtually debt free as its debt stood at Rs 30,450 mn as against
its cash deposit of Rs 131,350 mn. SAIL's debtequity ratio came down to the lowest-ever
level of 0.13x at the end of the 4QFY08. The company paid interest amounting to Rs 2,509
mn, while it earned interest to the extant of Rs 11,848 mn for the quarter.
Operational Highlights:
 SAIL recorded highest-ever saleable steel production of 3.5 MT during Q4FY08, an
increase of 6%. Therefore, annual production touched new peak of 13.0 MT during
FY08 with a capacity utilization of 118%.
 The company also achieved highest ever production of crude steel and hot metal of
14.0 MT and 15.2 MT respectively during FY08.
27

28.  The company’s continued focus on special quality/value-added products resulted in
30% increase in production to 3.5 MT during FY08.
 The company achieved best-ever sales of 12.3 MT during FY08 with substantial
growth in sales of value-added products like long rails, plates and structurals.
 Cost Reduction:
• Lowest ever energy consumption at 6.95 giga calories/tonne of crude steel
• Lowest ever coke rate consumption at 533 kgs/tonne of hot metal
• Total reduction of 4,169 employees in the workforce during FY08, bringing down SAIL's
manpower further to a level of 128,804 as on March 2008.
Expansion Process:
 The company is working to increase its crude steel capacity from 14.0 MT to 24.5 MT
by 2010 with a capital outlay of Rs 530 bn.
 During FY08, SAIL's modernization & expansion programme were running at very
great pace.
 Orders were placed for investments of over Rs 200 bn for projects at IISCO Steel
Plant and Salem Steel Plant, besides some key packages at Bokaro, Rourkela and
Durgapur Steel Plants.
 The company took a number of other strategic initiatives during FY08, primarily to
ensure security of raw material supplies and expand business. These included equity
participation in International Coal Ventures Ltd, a special purpose vehicle formed
with four other PSUs for acquisition of coal assets in overseas territories, and MoUs
with Manganese Ore India Ltd and Tata Steel.
28

29. The Actual Material By Different Plant Of SAIL IN 2007-08
29

30. After Expansion Of Material By Different Plant Of SAIL IN 2007-08
30

31. CAPITAL PROJECTS
Corporate Plan 2012 envisages implementation of a number of projects in phases. These
include both brown and greenfields activities. Thrust is being given to implement the
schemes on the basis of the directional schedule drawn in CP-2012.
A number of major projects were completed during 2005-06 at a total cost of around Rs. 400
crore:
♦ Long Rail Mill schemes at BSL costing Rs. 320 crore were completed and the facilities
brought onstream. These facilities will enable production of long rails and welded rail
panels up to a length of 260 meters.
♦ Commissioning of turbo alternator (32 crore) in RSP’s CPP-1 has helped step up
generation of power.
♦ CDI installed in BF # 7 at BSL at a cost of 10 crore.
♦ Tar injection technology introduced in 2 BFs at BSL and in 1 BF as BSL (Rs. 15 crore).
♦ BF relining (Rs. 37 crore) at BSL and VISL.
♦ Replacement of palm oil system in Tandem Mill at RSP (Rs. 4 crore).
♦ Replacement of corroded gas pipeline at BSL (Rs. 9 crore).
31

32. RESEARCH & DEVELOPMENT
R&D projects undertaken during 2005-06 focussed on process improvement, cost
competitiveness, product quality, product development and basic research for improvement in
techno-economic parameters to increase capacity utilisation. Major initiatives aimed at cost
competitiveness included:
♦ Improvement in lining life of converter to 2,000 heats in SMS-II at RSP including steel
ladles at RSP & BSL by technological initiatives.
♦ Raising productivity of DSP Sinter Plant to 1.36 tonnes/m/hr (peak 1.6 tonnes).
♦ Increase in BF productivity at RSP by process changes in furnace working from
peripheral working, reversal off BLT matrix and other changes in charging system.
♦ Technological initiatives like hot charging of wheels, modification of ingot design, etc.,
helped in record production of wheels & excles at DSP.
♦ Reduction in HSM roll spalling at BSL.
♦ Measures to obtain increased campaign length and reduced roll consumption at BSL.
♦ Installation of automation of hot saws in BSL’s Rail & Structural Mill.
Cast products at BSL received attention by RDCIS for quality improvement. The initiative
helped in improving production as well. Similarly, measures were developed to reduce off-
corner cracks in cast billets at DSP.
Product development efforts by RDCIS included the following :
♦ SAIL-HITEN 690 AR grade plates at BSL.
♦ Spring steel at DSP.
♦ High strength cold rolled steel (HSCR-35) at BSL.
♦ Steel noise barriers for roads/highways.
♦ DMR-249 for Indian Navy warships.
32

33. ENVIORNMENT MANAGEMENT
SAIL is committed to providing a healthy enviornment in and aroung its steel plants. Over 2
lakh trees planted in 2005-06 added further substance to the company’s efforts in this
direction. Around 13 million trees have been planted so far by SAIL at different
plant/unit/mine locations.
The SAIL plants/units maintained their thrust on controlling pollution during the year. Some
of them even received awards for excellence in pollution control measures. They are :
♦ Gold award in metal sector for outstanding achievement in enviornment menagement for
2003-04 by Greentech Foundation/New Delhi to BSL and RSP.
♦ Indira Gandhi Memorial National Award-2004 for Excellent Pollution Control
Implementation Gold Award by International Greenland Society (IGS)/Hyderabad to
BSL and RSP.
♦ Indira Gandhi Memorial National Award for Excellent Enviornment and Ecological
Implementation Gold Award by IGS to Barsua Iron Mine.
33

34. SALES
Prices remained generally stable during the year. Average sales realisation also remained
almost consistent on a quarter-to-quarter basis during the year. Increase in demand for steel
throughout the year gave SAIL the opportunity to register all-time high sales of steel at 10.7
MT. The company’s domestic sales grew 8% over the previous year to reach a level of 10.3
MT. SAIL consciously contained exports of steel at 4.6 lakh tonnes as against the 11 lakh
tonnes shipped during 2003-04 in order to make more steel available in the country.
The company’s thrust on enhancing revenue from value-added products paid rich dividends.
Production of special steels from the integrated steel plants rose to a level of 1.9 MT during
2005-06, recording a growth of 25% over the previous year. The company supplied 7.3 lakh
tonnes of rails to the Indian Railways, 5% higher than the volume in 2003-04. SAIL’s supply
to the Railways also included long rails measuring up to 65 metres in length.
Share Holding Pattern (SAIL)
Category Number of Share
holders
Amount
Rs. Crores
% of
Equity
Government of India 01 3544.69 85.82
Financial Institutions 13 312.63 7.57
Global Depository Receipts 2 3.51 0.09
Individuals 207155 151.82 3.68
Mutual Funds 29 41.65 1.01
Foreign Institutional 45 41.49 1.00
Domestic Companies etc. 3359 28.65 0.69
Banks Demat in Transit 22 5.95 0.14
Total 210626 4130.40 100.00
INVESTMENT
34

35. SAIL has estimated that the measures to be taken to achieve the targeted levels of growth and
sustain higher levels of cost and quality competitiveness will require investment in the region
of Rs. 25,000 crore by 2011-12. The immediate priority schemes, to be taken/completed by
2006-07, have been estimated to be around Rs. 4,300crore
The capital expenditure envisaged will be financed mainly through internal accruals, and will
be supplemented by market borrowing if the need arises. Care will be taken to ensure that the
company’s debt-equity ratio attains, and is maintained at, a level of 1:1.
The plan for capital expenditure covers up gradation/modernization of some existing assets as
well as installation of some new facilities. The areas broadly identified for investment pertain
to:
• Development of iron ore mines
• Rebuilding Coke Oven Batteries at BSL, DSP
• Revamping of iron & steel making facilities at BSL, DSP and BSL
• Installation of one blast furnace at RSP
• Installation of auxiliary fuel injection systems in all blast furnaces in a phased manner
PRODUCTS
Product Wise
Semis
Blooms, Billets & Slabs
Long Products
Structurals
35

36. Crane Rails
Bars, Rods & Rebars
Wire Rods
Flat Products HR Coils, Sheets & Skelp
Plates
CR Coils & Sheets
GC Sheets GP Sheets and Coils
Tinplates
Electrical Steel
Tubular Products Pipes
Railway Products Rails
Wheels, Axles, Wheel Sets
Plant Wise
Bhilai Steel Plant Blooms, Billets & Slabs Beams
Channels, Angles
Crane Rails
Plates Rails
Pig Iron, Chemicals & Fertilizers
36

37. Bokaro Steel Plant HR Coils & Sheets
Plates
CR Coils & Sheets
GP Sheets & Coils/ GC Sheets
Pig Iron, Chemicals & Fertilizers
Durgapur Steel Plant
Blooms, Billets & Slabs
Joists, Channels, Angles
Bars, Rods & Rebars
Skelp
Wheels, Axles, Wheel Sets
Pig Iron, Chemicals & Fertilizers
Rourkela Steel Plant
HR Coils
Plates CR Coils & Sheets
GP Sheets/ GC Sheets
Tinplates Electrical Steel
Pipes Pig Iron, Chemicals & Fertilizers
ACHIEVEMENTS
SAIL’s record breaking financial performance in April-December of 2004-05 assumes
special significance in view of the coal crisis arising out of force majeure conditions than
hampered production for the major part of the last calendar year.
37

38. Continuing with its record-breaking spree, SAIL put up yet another grand show in the first
nine months of the current financial year, supported by superlative performance during
October-December 2006. The company’s profit before tax (PBT) for Q3 of 2005-06
increased by more than 250% to touch a record Rs. 2,711 crore, as against Rs. 767 crore in
the corresponding quarter of the previous year. Net profit for the quarter at Rs. 1,514 crore
was 105% higher than the Rs. 738 crore earned by the company for the corresponding period
during the previous financial year.
During April-December of FY’07, the company achieved progressive improvement in
performance with saleable steel production increasing by 17% in Q2 over Q1 and further by
8% in Q3 over Q2. The company’s sales turnover reached a new high of Rs. 21,558 crore in
the first three quarters, recording a growth of 27% over the Rs. 16,934 crore achieved during
the corresponding period of the previous year. Progressive improvements in PBT were
recorded in tandem, increasing from Rs. 1,205 crore in Q1 to Rs. 1,823 in Q2 and further to
Rs. 2,711 crore in Q3 although steel prices remained stable during this period. At Rs. 4,139
crore, SAIL increased its net profit during the April-December 2004-05 by 176% over the Rs.
1,498 crore achieved in the corresponding period the previous year.
All seven production units of SAIL showed substantial improvement in financial
performance. With the exception of Alloy Steels Plant (which reduced its loss to Rs. 10 crore
in Q3 of FY ’07 from Rs. 31 crore in the same period of the previous year), all other
production units are now operating with profit. After six years of entering the SAIL family,
the loss-making Visvesvaraya Iron & Steel Plant (VISL) entered the profit zone in Q3 of FY
’05. VISL had recorded a lost of Rs. 19 crore in Q3 of 2005. Another special steel plant of
SAIL, Salem Steel Plant, also earned profit in Q3.
OPPORTUNITIES & THREATS FOR SAIL
Opportunities
38

39. SAIL has four main integrated Steel Plants (ISPs) which have a combined capacity of
10.2 million tonnes of saleable steel with modernized facilities available to meet
diverse customized requirements in the terms of quality, size, grade, delivery etc.
The per capita consumption of steel in the country is just about 30 kgs as compared to
the world average of about 144 kgs. There is therefore scope for substantial increase
in domestic steel consumption through better utilization of existing capacity and
enhancement of production capacity.
Given the substantial investments taking place in infrastructural development in the
country in the form of construction of highways, bridges, seaports and airports etc.
And the fact that SAIL’s long products are preferred for their superiors quality, there
is sufficient opportunity to increase the production and sales of long products.
Threats
During the fourth quarter of 2005-06 custom duties on steel have been reduced from
25% to 15% and imports have also been excempted from levy of Special Additional
Duty (SAD), thereby effectivvely reducing the customs duty by about 50%. As and
when international prices go down there could be an increase in imports. Furthermore,
any downward trend in international market prices may result in consequential
reduction in realization in domestic market.
Anti-dumping measures continue to be held in place of USA and the European Unin
and experts to these countries still remain largely affected. Further, the growth in
global steel demand, which has been powered by the high demand from China, may
not be maintained at the present level and, in due coarse, could get reversed when
Chinese demand comes down of production capacity of China increases.
RISKS AND CONCERNS
Given the increasing globalisation of the Indian economy, high volatility of
international prices has a direct effect on domestic steel prices, particularly in respect
39

40. of flat products. Also, the decline in international prices would lead to lower margins
on exports.
Inadequate availability and higher prices of key raw materials such as coal, ferro-
alloys etc. In the required quality coupled with infrastructutal constraints, like wagon
availability, port congestion etc. Would greatly impact operations at SAIL Plants as
well as their operating margins.
MARKETING OF SERIVICES
SAIL Consultancy Division (SAILCON) is the nodal agency for marketing of
technical, management and training services available from SAIL plants and units to clients
globally.
During the year SAILCON conducted market surveys jointly with local associates in
Saudi Arabia and Bahrain and identified a number of potential clients. Efforts were also made
in non-potential clients. Efforts were also made in non-steel sectors and consultancy orders
were procured from petroleum, chemicals and power sectors besides steel sector. In addition
to executing consultancy projects in India, projects were executed during 2003-04 by
SAILCON in Iron, Egypt and Georgia.
About Metal Junction
Corporations across the world have realized that in a world without boundaries, certain
regions and people with distinct competencies will be more efficient than others and therefore
the visible trend in the world today is outsourcing. Companies are outsourcing manufacturing
activities, customer services, back office operations and a host of other activities, either
because there is someone else who can do the same thing for less, or, there is specialist who
can offer services of higher quality. Industry has recognized that whilst it has to concentrate
on growth, a prerequisite is to become globally competitive. Industry has to, on the one hand,
concentrate on its core competencies of bringing about efficiencies in manufacturing and on
the other hand look at bringing about efficiencies in their Supply Chain which is their buying
40

41. and selling process. Metal junction operates at the extreme ends of the value chain and hence
it was essential to segregate the organization into two Major Business Units (Commerce
junction and Metal junction) so as to independently focus on:
Specific Requirements of Clients/Customers
Specific procedures for both the functions
Knowledge and Information management for the two functions
41

42. BOKARO STEEL PLANT - A PARTNER IN
NATION BUILDING
History
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape in
1965 in collaboration with the Soviet Union. It was originally incorporated as a limited
company on 29th January 1964, and was later merged with SAIL, first as a susidiary and then
as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous
Provisions) Act 1978. The construction work started on 6th April 1968.
The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum
indigenous content in terms of equipment, material and know-how. Its first Blast Furnace
started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on 26th
February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage
have already been commissioned and the 90s' modernisation has further upgraded this to 4.5
MT of liquid steel.
42

43. The new features added in modernisation of SMS-II include two twin-strand slab casters
along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th
September, 1997 and the Continuous Casting Machine on 25th April, 1998. The
modernisation of the Hot Strip Mill saw addition of new features like high pressure de-
scalers, work roll bending, hydraulic automatic gauge control, quick work roll change,
laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient
pusher type furnaces. A new hydraulic coiler has been added and two of the existing ones
revamped. With the completion of Hot Strip Mill modernisation, Bokaro is producing top
quality hot rolled products that are well accepted in the global market.
.
INTRODUCTION
Bokaro Steel Plant was originally incorporated as a limited company on 29th January 1964.
With the formation of the Steel Authority of India Limited (SAIL) on 24 January 1973, it
became a wholly owned subsidiary of SAIL and on 1st May 1978 it was eventually merged
with SAIL through the Public Sector Iron & Steel Companies (Restructuring &
Miscellaneous Provisions) Act 1978.
The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum
indigenous content in terms of equipment, material and know-how. Its first phase of 1.7 MT
ingot steel commenced on 2nd October 1972 with the commissioning of the first Blast
Furnace and completed on 26th February 1978 with the commissioning of the third Blast
Furnace. All units of 4 MT stage have already been commissioned.
To keep pace with the latest trends in steel making first phase of modernisation was
sanctioned on 23rd July 1993. The new features in SMS-II include Continuous Casting
Machines and Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th
September, 1997 and the Continuous Casting Machine on 25th April, 1998. The
modernisation of the Hot Strip Mill saw addition of new features like high pressure de-
scalers, work roll bending, hydraulic automatic gauge control, quick work roll change,
laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient
pusher type furnaces. A new hydraulic coiler has been added and two of the existing ones
revamped. With the completion of Hot Strip Mill modernisation, Bokaro is producing top
quality hot rolled products that are well accepted in the global market. The capacity of the
plant has gone up to 4.5 MT of liquid steel post.
BOKARO STEEL PLANT - FACILITIES
Raw Materials & Material Handling Plant
43

44. The Raw Materials and Material Handling Plant receives, blends, stores and supplies
different raw materials to Blast Furnace, Sinter Plant and Refractory Materials Plant as per
their requirements. It also maintains a buffer stock to take care of any supply interruptions.
Some 9 MT of different raw materials viz. Iron ore fines and lumps, Limestone (BFand SMS
grade), Dolomite lumps and chips, hard Coal and Manganese ore are handled here every year.
Iron ore and fluxes are sourced from the captive mines of SAIL situated at Kiriburu,
Meghahataburu, Bhawanathpur, Tulsidamar and Kuteshwar. Washed coal is supplied from
different washeries at Dugda, Kathara, Kargali and Giddi, while raw coal is obtained from
Jharia Coalfield.
Coke Ovens & By-product Plant
The Coke Oven Complex at Bokaro convers prime coking coal from Jharia, Dugda and
Moonidih and medium coking coal form Kargali, Kathara and Mahuda, blended with
imported coal, into high quality coke for the Blast Furnaces, recovering valuable by-products
like Anthracene Oil, Benzene, Toluene, Xylene, Light Solvent Naphtha, Ammonium
Sulphate and Extra-hard Pitch in the process. Bokaro is situated in the prime coal belt of the
country
Blast Furnaces
Bokaro has five 2000-cubic metre Blast Furnaces that produce molten iron - Hot Metal - for
steel making. Bell-less Top Charging, modernised double Cast Houses, Coal Dust Injection
and Cast House Slag Granulation technologies have been deployed in the furnaces
Steel Melting Shops
Hot Metal from the Blast Furnaces is converted into steel by blowing 99.5% pure Oxygen
through it in the LD converter. Suitable alloying elements are added to produce different
grades of steel.
Bokaro has two Steel Melting Shops - SMS-I and SMS-II. SMS-I has 5 LD converters of
130T capacity each. It is capable of producing Rimming steel through the ingot route. SMS-II
has 2 LD converters, each of 300 T capacity, with suppressed combustion system and
44

45. Continuous Casting facility. It produces various Killed and Semi-Killed steels.
Continuous Casting Shop
The Continuous Casting Shop has two double-strand slab casting machines, producing high
quality slabs of width ranging from 950 mm to 1850 mm. CCS has a Ladle Furnace and a
Ladle Rinsing Station for secondary refining of the steel. The Ladle Furnace is used for
homogenizing the chemistry and temperature. The concast machines have straight moulds,
unique in the country, to produce internally clean slabs.
Argon injection in the shroud and tundish nozzle prevent re-oxidation and nitrogen pick-up,
maintaining steel quality. The eddy current based automatic mould level control, unique in
the country, gives better surface quality. The air mist cooling and continuous straightening
facilities keep the slabs free from internal defects like cracks. The casters are fully automated
with dynamic cooling, on-line slab cutting, de-burring and customized marking. The shop is
equipped with advanced Level-3 automation and control systems for scheduling, monitoring
and process optimization.
SlabbingMill
Slabbing Mill transforms ingots into slabs by rolling them in its 1250 mm Universal Four-
High Mill. The rolling capacity of the Mill is 4 MT per annum. The shop has Hot and Cold
Scarfing Machines and 2800 T Shearing Machine. Controlled heating in Soaking Pits, close
dimensional accuracy during rolling and hot and cold scarfing help produce defect free slabs.
Hot Strip Mill
Slabs from CCS and Slabbing Mill are processed in the state-of-the-art Hot Strip Mill. The
fully automatic Hot Strip Mill with an annual capacity of 3.363 million tonnes has a wide
range of products - thickness varying from 1.2 mm to 20 mm and width from 750 mm to
1850 mm. The mill is equipped with state-of-the-art automation and controls, using advanced
systems for process optimisation with on-line real time computer control, PLCs and
technological control systems.
Walking Beam Reheating Furnaces provide uniform heating with reduction in heat losses,
ensuring consistency in thickness throughout the length. High-pressure De-scaling System
helps eliminate rolled-in scale. Edgers in the roughing group maintain width within close
tolerance. The roughing group has a roughing train of a Vertical Scale Breaker, one 2-high
Roughing Stand and four 4-high Universal Roughing Stands. The finishing group consists of
a Flying Shear, Finishing Scale Breaker and seven 4-high Finishing Stands. Hydraulic
Automatic Gauge Control system in the finishing stands ensures close thickness tolerance.
The Work Roll Bending System ensures improved strip crown and flatness. The rolling speed
45

46. at the last finishing stand is between 7.5-17.5 metres per second. The Laminar Cooling
System is a unique feature to control coiling temperature over a wide range within close
tolerance. The Hydraulic Coilers maintain perfect coil shape with On-line Strapping system.
On-line Robotic Marking on the coil helps in tracking its identity.
Hot Rolled Coil Finishing
All the Hot Rolled coils from the Hot Strip Mill are received in HRCF for further distribution
or despatch. HR Coils rolled against direct shipment orders are sheared and finished to
customer-required sizes and despatched to customers. The material is supplied as per Indian
specifications and many international/ foreign specifications. The shop has two shearing lines
with capacities of 6,45,000 Tonnes/ year and Rs. 4,75,000 tones per year respectively.
Cold Rolling Mill
The Cold Rolling Mill at Bokaro uses state-of-the-art technology to produce high quality
sheet gauge material, Tin Mill Black Plate and Galvanised Products. Cold rolling is done to
produce thinner gauge strips of very smooth and dense finish, with better mechanical
properties than hot rolling strips. Rolling is done well below re-crystallization temperature
without any prior heating of the material. The products of CRM are used for deep drawing
purposes, automobile bodies, steel furnitures, drums and barrels, railway coaches, other
bending and shaping jobs and coated steels. The CRM complex comprises of two Pickling
Lines (including a high speed Hydrochloric Acid Pickling Line with re-generation facilities),
Hot Dip Galvanising Complex
The Hot Dip Galvanizing Complex integrated with the CRM produces zinc-coated Cold
Rolled strips resistant to atmospheric, liquid and soil corrosion. The Continuous Coil
Corrugation Line in the HDGC produces corrugated sheets and the Galvanised Sheet
Shearing Line produces galvanized plain sheets for a variety of applications. The first shop of
Bokaro Steel to get the ISO-9001 certification way back in 1994, this complex has
maintained a high-standard of coating quality and its SAILJYOTI branded products enjoy a
loyal market.
Services - a valuable support network
46

47. The service departments like Traffic, Oxygen Plant, Water Management and Energy
Management provide invaluable support to this gigantic plant. Bokaro Steel has a vast
networked of railway tracks and over 40 diesel locos to smoothly run its operations
PROFIT FIGURE OF SAIL BOKARO 2007-08
Material Opening
stock as on 1st
day of the
month QTY
in MT
During the
month
Closing
stock as on
last day of
the month
in MT
Cumulative
QTY
sold
in
MT
Sales
Value
in Rs.
Lakh
QTY
sold
in
MT
Sales
Value
in Rs.
lakh
Iron &
Steel
scrap
57522 2614
1
5288 57840 1897
10
42991
Chem
&BP
9148 6486 1037 7130 4819
8
5815
Slag 45154 1311
62
446 60041 7986
48
3045
Pig Iron 5708 874 3720
2
5341
Others 6665 177 5742
1
1888
Total
111824 1761
62
7822 125011 1131
179
59080
47

48. CHAPTER-3
“ MARKETING DEPARTMENT OF
BSL"
Marketing at Bokaro Steel Plant; SAIL
48

49. Objective:
To maximize the revenue from sale of secondary products, by-products, idle or used material
and other waste products and to keep the pool of customers satisfied.
Functions:
 To take stock of various items on regular basis.
 To take disposal action as per procedure.
 To gather market information; feedback from customers.
 To review and fix the price.
 To ensure smooth execution of order.
 To settle refund claims.
 To create awareness in the market about various products.
Bokaro Steel Plant made its own marketing policies based on the market terms, quality of the
products, quantity demanded, and price of their competitor’s products. At present, plant is
following the basis of marketing as under:
 Product knowledge
 Market demand awareness and sensitivity
 Quick response to market situation
 Direct contact with the customers
 Innovative strategy
 Attractive and competitive pricing
 Resource utilization
 Customer satisfaction
 Assumed delivery
 Prompt after sales service, complaint, settlement
 Sales realization
Marketing department of Bokaro steel plant:
In the steel plant, while producing core steel products a number of strategically important and
commercially profitable by-products and secondary products are obtained. The defective core
products (which cannot be delivered against an order) are also churned out in large quantity.
Some of them are recycled and rest is made available in the open market to earn revenue.
These products are highly in demand in metallurgical industries, cement industries, chemical
industries etc.
Except core products all the other secondary and by-products are marketed by the marketing
department of Bokaro steel plant. It has been recognized that proper disposal of waste
products can generate huge revenue for the company and hence this area has found the
increased interest of the policy makers of the company.
49

50. MARKETING
SAIL/Marketing
Product
Primary (Specific parameter) Secondary/By-Product
CMO (HQ-Kolkata)
Units-BSL, BSP, RSP, DSP, etc
BSL Marketing
Products list
Method of selling
E-auction Sale Fixed price
sale (90%)
(Item like Slag,
Carbide
sludge,
Ferrous
sludge.)
ORGANIZATION:
BSL Marketing
Main section
Steel chemical Slag Idle Assets Pricing MIS
& &
By Products Waste products
50

51. MARKETING DEPARTMENT OF BSL IS BEING DIVIDED
UNDER VARIOUS SECTIONS AS
1. Market Development and strategic planning
2. Secondary Product
3. Coal Chemicals.
4. Merchant Mill / Wire Rod Mill
5. Rail and Structural Mill.
6. Billet and Bloom Mill.
7. Plate mill.
FUNCTION OF MARKETING DEPARTMENT
 Developing marketing strategies
 Capturing marketing insights
 Connecting with customers
 Building strong brands
 Shaping market offerings
 Delivering value
 Communicating value
 Creating long-term growth
1. To monitor the orders issued by CMO, So that these orders can be fulfilled in time.
2. Put pressure on CMO, to get orders for an under utilized mill.
3. To sell all the secondary products directly i.e. directly by BSL and by CMO.
4. On day to day basis it takes care of the dispatches i.e. daily dispal are checked.
51

52. PLANNING BEFORE SALES OF MARKETING DEPARTMENT
 Motivation
 Perception
 Buyer’s behavior
 Product Attributes
 Environmental Forces
Marketing Department exchange with other party with:-
 There are at least two parties.
 Each party has something that might be of value to the other party.
 Each party is capable of communication and delivery.
 Each party is free to reject the exchange offer.
 Each party believes it is appropriate or desirable to deal with the other party.
Steps to Improve Marketing Intelligence
 Train and motivate sales force
 Motivate channel members to share intelligence
 Network externally
 Utilize customer advisory panel
 Utilize government data resources
 Purchase information
 Collect customer feedback online
52

53. ORGANIZATION CHART OF MARKETING DEPARTMENT
GM (Marketing)
Jr. Executive (Secretary)
Cord admn. & Est
Training officer
53

54. FLOW CHART OF ONLINE REFUND OF CLAIM
54
REGISTRATION OF CLAIM IN MKTG
DEPTT
GROUND CLEARANCE
REPORT/LIFTING DETAILS
RECONCILATION OF RECORDS
FORWARDING OFCANCILLATION
PIM TO SALES &EXCISE
SETTLEMENT OF CLAIM AMOUNT BY
SALES ACCOUNT
REFUND OF CLAIM AMOUNT TO THE
PARTY
SUBMISSION OF CLAIM FORM BY
THE PAYRT
PREPARATION OF CANCILLATION
PIM
MKTG DEPTT
S&E DEPTT
INTIMATION OF SETTLEMENT TO
MKTG DEPTT BY F&A DEPTT

55. F
COKE OVEN & BY-PRODUCTS PLANT
PRODUCTION OF BY-PRODUCTS IN BOKARO STEEL PLANT
Products 2006-07 2005-06 2004-05
Crude tar TONNE 1,06,764 1,09,308 1,03,676
Amm. Sulphate TONNE 31,530 32,858 27,920
Sulphuric Acid TONNE 36,839 40,078 39,221
Pressed naphthalene TONNE 3,213 2,710 3,645
Hard medium pitch TONNE 1,840 2,910 6,410
Road tar TONNE 1,410 3,010 2,810
Total Pitch TONNE 38,259 33,498 44,997
Pitch Cresote Mixture TONNE 55,350 44,369 59,240
Still Bottom Oil TONNE 608 1,035 801
Extra Hard Pitch TONNE 2,505 1,705 1,735
N. G. Benzene KL 2,653 4,873 4,140
Crude Benzol KL 5,310 9,736 8,579
Benzene KL 5,110 9,346 14,123
N.G. Toluene KL 562 1,123 1,367
Anthracene Oil TONNE 2,945 2,525 2,060
Granulated slag cast
house
TONNE 3,34,261 3,43,890 2,55,650
Granulated slag SGP TONNE 3,77,210 3,88,875 7,40,546
Ferrous sulphate TONNE 5,674 5,310 4,193
55

56. DESPATCH OF BY- PRODUCTS
PRODUCTS QUANTITY 2006-07 2005-06 2004-05
BF Coke TONNE 0 0 0
BFSR Mixed
coke
TONNE 0 0 0
Coke Breeze TONNE 0 0 0
Sulphuric Acid TONNE 0 0 0
Hard Medium
Pitch
TONNE 5885 3594 1834
Extra Hard
Pitch
TONNE 2219 1644 1606
Anthracene Oil TONNE 2946 2536 2061
Amm.Sulphate TONNE 34714 30218 24731
S.B.Oil TONNE 983 612 804
H P
Naphthalene
TONNE 3294 2967 2995
Ferrous
sulphate
TONNE 6426 1418 3845
Granulated
slag
TONNE 730500 724351 557195
N G Benzene KL 2180(tone) 4963 4693
N G Toluene KL 546(tone) 1117 1422
L S Naphtha KL 185(tone) 401 652
56

57. PRICES OF BY-PRODUCT
PRICE OF COAL CHEMICALS 2008-09.
S.No PRODUCTS. QUANTITY. PRICE/ UNIT
QTY
VALUE.IN CRORES
1 AMMONIUM
SULPHATE
39095 5200 203294000
2 N.G.BENZENE 13289 30000 398670000
3 N.G. TOLUENE 3322 30000 99660000
4 L.S.N. 1278 20000 25560000
5 S.B.OIL 2555 12000 30660000
6 E.H.PITCH 3600 18000 64800000
7 H.M.PITCH 3300 15000 49500000
8 ANTH.OIL 3100 12000 37200000
9 H.P.NAPHTHALENE 4250 35000 148750000
57

58. PRODUCTION FIGURE OF BY-PRODUCTS
PRODUCTS 2006-07 2005-06 2004-05 2003-04
N.G BENZENE (KL) 5110 4140 4973 2653
N.G TOLUENE (KL) 1565 1367 1123 362
L.S NAPTHA (MT) 585 601 474 202
S.B OIL (MT) 700 801 1035 608
ANTHRACENE OIL 1198 2100 2600 2949
E.H. PITCH (MT) 1830 1735 1705 2505
H.P NAPTHALENE 3962 3645 3000 3205
H.M.PITCH 4615 6460 3910 1833
AMMONIUM
SULPHATE 30204 27920 32858 34713
58

59. Market
SWOT Analysis
STRENGTH
It has countrywide network of stockyard and dockyard, branches, customer can take materials
from any location.
Customer perception of SAIL is fair and of reliable supplier.
SAIL product has international standard.
SAIL has a customer friendly approach and improved customer orientation.
SAIL is in the market from last three years having long term relation from the customer.
WEAKNESS
Quality of the product, which is slightly inferior as compared to competitors who are having
latest technology.
Sometimes products are not supplied as per requirement of customer.
OPPORTUNITIES
Since SAIL has a wide range of stockyard / branch offices, it can supply its products directly
to customers without any difficulty.
SAIL has a very strong base it can diversify it self into the production of different goods as
per market requirements.
THREATS
Increased competition in market with other domestic producer.
Obsolescence of exiting technology.
High cost of input materials.
Tight money market situation.
59

60. “MARKETING NETWORK”
60

61. CENTRAL MARKETING ORGANIZATION
Central Marketing Organization (CMO) is India's largest marketing home. It has spread its
wings far and wide from Srinagar in the North to Cochin in the South and Dhimapur in East
to Ahmedabad in the west.
All SAIL Product are marketed in India through C.M.O. to ensure quality and prompt
dispatch of product, CMO keeps in touch with producing units as well as the transport and
shipping sectors. It operates through the network of stockyards, dockyards, Branch sales
offices, consignment agents and Extension counter.
CMO has got responsibility to sell pig iron and mild steel products manufacture by BSL,
DSP, RSP, and BSL, having its headquarters at Ispat Bhavan 40 Chouringee Road, Kolkata
71. CMO has got 40 Branches spread through out the country with stockyards for storing and
selling Iron & Steel materials of the plants.
Branch manager having other colleagues including finance executive to help B.M. in day-to-
day operations.
The network of branches is divided into Four regions as given below : -
Reaions Branches Attached
Northern region,
New Delhi
Agra, Allahbad, Faridabad, Gaziabad,
Kanpur, Lucknow, Delhi, Chandigarh,
Jalandher, Jammu
Ludhiana and Mandi Govindgarh.
Western Reason,
Mumbai
Ahmedebad, Baroda, Pune, Mumbai,
Nagpur,Bokaro, Indore, Gwalior, Jabalpur,
Jaipur & Kota.
Eastern Region,
Kolkata
Bhubaneshwar, Bokaro, Kolkatta,
Durgapur Guwahati, Howarh, atna, New
Bongaigoan & Rourkela.
Southern Region,
Chennai
Bangalore, Chennai, Cochin, Coimbatore,
Hyderabad, Pondicherry, Trichy & Vijayawada
61

62. In addition to above, one zonal office is functioning in Guwahaati. CMO has got transport
and shipping department at Visakhapatnam to handle the export and import consignment at
the different ports. These ports are:-
Kolkata
Paradeep Haldia
Visakhapatnam
SALES RESIDENT MANAGERS OFFICERS (SRM)
To coordinate about production & dispatches in different steel plants, CMO has got SRM
offices at the following places.
1. Bokaro.
2. Bhilai.
3. Rourkela.
4. Durgapur.
FUNCTIONS OF BRANCHES
Booking of orders from the customers on long term and short-term basis.
Passing on details of booking to the concerned SRM Office.
Ill) Receipt of materials at stockyard by wagons/trucks
IV) Issuance of offers and delivery orders to customers against there booking.
After sale services to customers.
With increasing competition and business scenario, it is their endeavor to increase the market
share and customer satisfactions have appointed KAMs- Key Account Managers at the
branch level and operations at branch level have been segmented on the type of product-Flat
or long. CMO is divided on Long and Flat basis as both types of products have to be dealt in
different manner due to nature of application and varied uses.
62

63. FUNCTION OF STOCKARDS
i) Keeping records with regards to receipt of materials with description of
Size, quality and quantity etc.
ii) Issuance of loading slip on receipt of delivery order from the branch.
iii) Loading of materials in the customer truck/trailer free of cost.
iv) Issuance of delivery challans-cum-invoice for the quantity delivered.
v) Handing over T.C. to customer along with challans.
vi) Submission of stock statement to the branch.
INTERNATIONAL TRADE DIVISION (ITD)
SAIL'S ITD looks after exports and imports, maintains close liaison with buyers which helps
establish SAIL'S reputation as the maker of finest steel products in so many countries around
the globe. Notable among them are Australia, Japan, South Korea, China, Egypt, Iran, Iraq,
UK, USA and Russia. Continuous co-ordination with the production units is of up most
importance for a key executive of ITD.BSL supplies around 25,000-30,000 tones of products
every month for export.
63

64. CHAPTER-4
SECONDARY PRODUCTS
64

65. SECONARY SECTION- AN INTRODUCTION
Secondary section started functioning after the commencing of Bokaro steel plant. The
secondary products section of the marketing department is solely responsible for the selling
of secondary products and by products of B.S.L
All the defectives/ rejected items; this department except the rejected/ defective plates
sells scrap. The defective plates are sold by CMO (Central Marketing organization) since
December 2001.
The secondary products are sold by auction sale, Tender and fixed price sale. The in charge
of the secondary products section is Mr. Sukharnoy Ghosh (AGM) . He looks the marketing
procedure of the secondary product.
LIMITATIONS OF STUDY
The study deals with only B.S.L. point of view.
As the major customers of B.S.L products are not an individual person. It was very difficult
to get formal feedback from them.
TYPES OF PRODUCTS
In Bokaro Steel Plant, the finished products are categorized into three parts:
1 Prime Products: - These are the actual products, which are originally produced for example,
blooms, billets, channels, rounds, angles etc .
2 By Products: - These products are not originally produced by Bokaro
Steel Plant, but are outcomes while producing the prime products.
3 Secondary Products: - These are the defectives or rejected materials due to improper mixing
of chemical components or fail to meet the optimum requirements. Scraps generated inside
plant are also termed as Secondary products. The secondary products used here in after will
mean ferrous materials generated from various production units which can either suitably
beused for re-melting to produce iron and products or offered for sale if rendered surplus in
65

66. production process for example Defective Heavy blooms, Defective Rails, Rail cutting, Rod
cutting, Scrap etc.
WHAT ARE SECONDARY PRODUCTS?
In the case of manufacturing process, in every stage of production, always there will be
certain percentage of products, which do not confirm to the standard quality, size and
specifications. Such products are termed as "Secondary Products". Moreover, while shaping
the prime products, both ends and sides are cut. These cutting are also categorized as
"Secondary Products" in Bokaro Steel plant, as they are re-rollables .
Following Items fall under the category of Secondary Products.:
(A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG
1. MS SLAB END CUTTING WITHOUT FISH TAIL
2. MS THICLE PLATE CUTTING (25-40 MM) MIXED W.FR.
3. SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS.
4. LIQUID NITROGEN.
5. FINE IRON CHIPS FROM IMP (FE-70% APP).
6. FERROUS SIELPHATE – LOOSE.
7. BE GRNAULATED SLAJ (BOTH BY FIXED PRICE AND TENDER).
8. LIQUID ARGON.
9. PIG TRON.
(B) OTHERS
1. CARBIDE SLUDGE.
2. U/R AMC/MCB BRICKS.
3. U/R MAJ CHROME MAJ BRICKS.
66

67. (C) COAL CHEMICALS AND BY PRODUCT
1. MG BENZENE
2. NG TOLUENE
3. LS MAPTHA
4. SB OIL
5. HP NAPHTHALENE
6. ANTHRANCENE OIL
7. EXTRA HARD PITCH
8. HARD MEDIUM PITCH – SOLID STATE
9. HARD MEDIUM PITCH – LIQUID STATE
(A) REROLLABLE AND IRON & STEEL SCRAP AND BFG SLAG
1. MS INJET (RE/RMON ROLLLABLE AT BSC)ASP
2. SIDE TRIMMING (STEEL SCRAP)
3. SMS SPLASHING – ASP ONLY
4. LD SLAJ FOR IISCOMS THICK PLATE CUTTING (25.40 MM) MIXED W.FT –
FOR ASP
5. U/S SL MILL ROLL # (PER ROLL) IISC/CENT GOVERNMENT /PSU/SISTER
COMPANY
(B) OTHERS
1. USED REJECTED WODDEN PALLETS – FOR BRL
2. USED REJECTED SIDE GATE PLATE – FOR BRL
3. USED REJECTED HA-BRO 62 BRICKS – FOR BRL
4. USED REJECTED ALUMINUO SILICATI BRICKS – FOR BRL
5. USED REJECTED MAJNESIA CARBON BRICKS – FOR BRL
6. BREEZE COKE ASH – FOR BRL
7. SLAG POL FOR DSP
67

68. Opening Stock of Secondary Steel Items in Stores as on 1st
of Every
Month(2007-08)
Month Stock
Apr 16679
May 21981
June 28295
July 39695
August 47458
September 43379
October 44467
November 50321
December 57221
January 64366
Stock
16679
21981
28295
39695
47458
43379 44467
50321
57221
64366
0
10000
20000
30000
40000
50000
60000
70000
Apr
M
ay
June
July
August
Septem
berO
ctoberN
ovem
berD
ecem
berJanuary
Stock
NECESSITY OF SELLING THE ''SECONDARY PRODUCTS
68

69. The net sales realization from all the Secondary products, by products and co-products of
BSL is around Rs. 600 crores which is quite more than money the big industries. Out of this
Steel Scarp arising itself brings about Rs. 15200 cores of money every year. Re-production of
main products from the; secondary products requires re-melting it again for the required
composition of the materials as per the desired specification.
By selling it to the different Mills/traders/Processors the plant earn around Rs.4000 per tones
of the direct profit than by re-producing it to the main product.The traders /processors/re-
rollers, use these as a raw materials for different finished products making huge profits, the
plant is also not losing anything.
Profit is the main aim of every business, and when the realization of these products for the
finished products proves to be costlier, the management plant decided to sell it to the local
market.
By selling secondary Products to the Local market new industries are
developed for re-rolling the Secondary materials to make finished products. It has also
increased the small-scale industries and employment opportunities.
MARKETING OF SECONDARY PRODUCTS
During the seventies and sixies when the plant was one million-tonnes and2.5 million-tonnes
capacity respectively, arising of secondary products were limited and such arising were
recycled for re-melting. Therefore there was no scope for marketing in other words it was not
economical. The plant capacity has been increased from 2.5 million tons to 4 million tones in
the late sixies. New technology has been adopted while increasing the capacity of-the plant
where by the use of arising for re-melting drastically reduced. This has given more impact to
the making of secondary product.
In the nineties we have seen lot of changes in the economic scenario of the country. The
concept of more employment in Public Sector Enterprises has changed to more profits. There
by the plant also has geared up its strategy towards this end. One of the strategies adopted by
the plant for increasing the profit is marketing of secondary products.
69

70. "PROCEDURE OF SECONDARY
PRODUCTS”
DETAILS OF SCRAP
70

71. There are various types of scrap, which is generated from the particular prime products. Some
brief summaries are given here: -
1. PCM SCRAP
This is a scrap generated in the pig-casting machine and consists of
splashing, PCM runners and fires is in the wsix range of up to 1.0 tonnes per piece.
2. BF RUNNER SCRAP
Generated in the blast furnace cast houses in the form ofrunnerjams etc the maximum wsix
per piece is up to 2 tonnes. This scrap contain amount of slag.
3. UNPROCESSED STEEL
Generated in the steel melting shops in slag cups and metal ladles. As the skulls are quite
broad in dimensions, some of them are required to be cut into sizes suitable for loading into
trucks. These skulls are sold in the wsix ranges up to 2 tones per piece.
4. SBIM SCRAP
This consists of semi broken in got mould and bottom part as scrap and is in wsix range up to
2 tons per piece.
5. COBBLED SCRAP
The cobbled scrap arises from wire rod mill and includes some rejected coils and binding
wires also.
6. REJECTED ROLLS.
Cast iron rolls rejected steels rolls.
7. MILL CUTTINGNS
Rail and structural mill cuttings, merchant mill cuttings, rail cuttings, plate end sharing
rejected slabs, Slabs cuttings, miss rolled slabs, and wire rod cuttings are included in this type
of scrap
COLLECTION OF SCRAP
71

72. 1. All scraps identify the metallic scrap generated in the production, process and lying in the
shop. The shops collected the scrap with the help of overhead cranes and stock them for
loading into wagons.
2. Rejected rails and sleepers lying near the railways track inside the plant are collected at
such points from where loading and collection by truck is possible.
3. Crane facility is provided for loading the scrap into the truck whenever cutting or
processing not possible on the spot.
4. Marketing recovery department is responsible for overall coordination of scrap collection
from the entire plant. For this each shop nominate one executive for ensuring the clearance of
scrap from the shop.
5. Head of Marketing and customer service department requires the progress on scrap
collection on weekly basis.
6. Marketing recovery department makes suitable schedule for collection of scraps and
intimates the date of collection to respective shops.
PROCESSING OF SCRAP
1.All the scrap, which is collected, is not sold some of the scrap portion is used for the re-
melting purpose, MRD identifies such scrap. It arranges collection, handling and processing
of all such scrap at various stockyards before sending in required quantity to the steel
melting shop, converter shop and foundary.
2.After such processing, MRD arranges supply of required scrap to respective.
Consuming shops.
DEMAND REGISTRATION OF BSL
72

73. Marketing department of BSL sales homogeneous steel scrap at fixed price. For this purpose
the procedure for registration of demand and offers is as below:
1. Preference for sale of material given to local parties and those, which are actual customer.
Material is not sold for trade.
2. Sale of material made to re-rolling mills and scrap processing units and the lots of sale
between them maintained at 67:33.
3. Based on the above consideration "offer letter" issued to the party offering a quantity,
which has been lifted by them during the last preceding year or allocated by the state
industries, Department. In the offer letter party is advised to complete commercial formalities
e.g. submission of " Die Registration Certificate " etc.
New party gets an offer of minimum quantity of 300 for made.
PROCESS OF RE-ROLLING
1. NAME OF THE MACHINERIES:
The steel re-rolling mill requires the following machinery to products
rolling materials form the mild steel scrap.
a. Main motor connected with pulley and V-Belts.
b. Fly-wheel as per the requirement and size of the mill.
c. Pinion Gear Box consisting of three gears.
d. Five stands which are situated in the shed for rolling of hot scrap upto the finished
products.
e. Furnace the size of the furnace varies from 30ft to 40ft in length, 6ft width and 8ft in
hsix with a coal fired chambers or oil-fired chamber.
2. MAN POWER REQUIREMENT
a. in each re-rolling mill a foreman is very necessary to maintain the machines and to
produce a good quality product. To assist him there should be one section man and one fitter.
b. Furnace requires one worker for pushing the material inside the furnace two workers
for pulling out the material and two for shifting the materials from furnace to the rolls.
c. From stand 1 to stand 5 nine workers are required for pushing the hot metal in the rollers.
They work for only four-hour out of six hours. So about sixeen workers are needed to work
on one shift.
73

74. 3. PROCESS OF MANUFACTURING
The scrap for the re-rolling is generally received from BSL railways. These materials are not
directly re-rollables so first it is required to make a re-rollable and of proper size as per the
requirement of the finished products. In the recent years a number of foundries and re-
rolling mills came into existence throughout the country. These small scale sector need the
"Secondary Products" as input raw material for their production. The company has engaged
in educating them the use of Secondary Products for different kinds of end products for
consumption of general public. This material is then continuously passed from one stand to
the other unit the finished product comes out. The rolls are provided with the grooves as per
the requirement of the finished products.
PRODUCTS OF THE RE-ROLLING MILLS
Over the years a number of re-rolling mills/steel processing mills and trading companies have
come up in an around Bokaro. The plant is meeting the raw material need of these mills and
the availability of the re-rollables has increased the re-rolling mills to develop very fast. The
plant extends ail types of facilities and assistance to these small-scale units, which in turn
give scope for more employment opportunity.
1. M.S.Squares, Angles, Channels, Flats, Rounds, Z-Sections, Li- Sections, T-Sections,
2. Cold Twisted Deformed (C.I.D) Bars.
3. TOR Steels,
4. Beams.
5. Strips.
6. Hooks.
PROCEDURE APPLIED FOR SALE OF SECONDARY PRODUCTS
74

75. 1. After obtaining approval of quantity and price for sale, Marketing department scrutinizes
the demand from various parties, examine the Priorities and issue "offer letters" to respective
parties. The terms and conditions for sale are also enclosed with the "offers Letter"
2. About one third of the quantity of material to be sold during the year is offered to the
actual users, subject to registration of demand.
3. For the balance quantity to be sold at prices fixed by pricing committee, preference is
given to actual users over traders. If there are no actual users, the material may be offered to
traders giving preference to registered traders over others.
4. First preference is given to the actual users for allotment of scrap against particular
category of users. Scrap processing units are given second preference for such allotments.
5. The amount received from the party towards advance payment and security deposit is
forwarded to finance department by marketing department after recording the details in the
register.
6. Parties are allowed to visit the respective location disposals site, and inspect the scrap
offered for sale.
.
CHAPTER-5
”SALES AND DISTRIBUTION"
75

76. SELLING OF SECONDARY PRODUCT
This involves a direct marketing process. The management of BSL in consultation with the
official of the market development and customer service department work as group for the
sale of these items.
There are two methods of selling these re-rollables defective materials:
By Auction Sale.
By Marketing Department (Fixed Price).
AUCTION SALE
In this method the defective materials from all the mills is arranged in
heaps of 100-150 tones to be sold by auction. Generally auction sale
takes place ones in a month. Representative from all the re-rolling mills turn up during
auction and they bid for the available material. The raw material need of this mill is being
made by the plant and the availability of the re-rollables have increased the re-rolling mill to
develop very fast. The plant extends all types of facilities and assistance to this small scale
units, which to turn give scope for more employment, then the material is lifted on the terms
and conditions as mentioned in the tenders.
FIXED PRICE SALE
76

77. The re-rollable material is also sold through marketing department. The percentage of
material to be sold by auction or by marketing depends upon the management decisions.
There are different re-rollables coming from 4 different mills that can be sold. The pricing
committee depending upon carries out the pricing of these materials:
1. The price offered by the customers during auction sale.
2. The quantity to be sold.
3. The approval of the managing director.
PRICING POLICY OF SECONDARY PRODUCT
The policy adopted by the marketing department for pricing of materials is largely guided by
the price offered by the bidders during the auction. The various factors taken into
consideration while pricing the re-rollable items can be enumerated as follows: -
(a) Prices offered in the auction sales.
(b) Quantity of material to be lifted.
(c) Managing director's approval.
The average of the prices offered by the bidder during auction is taken as the basis to fix the
prices of materials to be sold through marketing department. Further the techniques of break-
up-pricing are adopted i.e. the larger the quantity purchased lower will be the prices. This
technique encourages the buyers to purchase larger quantity. Finally the managing director
approves the prices set by the pricing committee. On this basis, a price list is prepared for all
the potential buyers. Price list also indicates the sales tax and Excise duty to be levied. Thus
the interested parties place their orders with the marketing department on the basis of price
list reviewed every month. Every customer is required to have a security deposit amount of
Rs 1.00 lakh. The payment for the material required is to be in advance. The material is
supposed to be lifted on the specified date on account of delay the party has to pay the
difference in the prices, if there is any increase in subsequent month.
TENDER DOCUMENT
TERMS & CONDITIONS
77

78. 1)The parties desirous of purchasing the material have to quote for entire quantity of the
material.
2) The tenderers are advised to inspect the material at B.F. Slag Dump, if so desired, before
submitting the quotations.
3) Terms of sale: On " As is where is basis ", " No complaint basis " and " Ex-works basis"
No PICK and CHOOSE shall be allowed other than sorting out Iron/Steel pieces found, if
any.
4) The conditional quotations are liable to be rejected.
5) EARNEST MONTEY:
EMD (Earnest Money Deposit) Rs 100000/- for the item to be deposited in the form of
DD/BC/PAY ORDER in favour of SAIL/ Bokaro Steel Plant payable at Bokaro from any
Nationalised / Scheduled banks along with the quotations. Any variation / demand in such
taxes, duties, levies, and charges and / or any fresh imposition of such taxes, duties, levies
and charges shall also be to the account of the bidder to whom the tender is awarded. The
tenders should quote their rate in per cubic meter against the total quantity as asked for in the
tender document both in words and figures. In case of any mismatch / ambiguity between the
two the higher of the two rates only shall be considered.
The tender should be submitted in the TENDER BOX placed inside the CONFERENCE
HALL OF MARKETING AND STRATEGIC PLANNING DEPARTMENT on the 5th
floor of ISPAT BHAWAN.
The general terms and conditions of lifting by road and safetystipulations in force shall be
applicable.
6). PAYMENT TERMS:
The successful bidder has to make payment for the quoted quantity in 12 (twelve) equal
installments of 1000 Cu.m each. 1st installment is to be deposited within 10 (Ten) days from
date of issue of sale order inclusive of the date of issue of sale order. Subsequent installments
are to be deposited within 30 (Thirty), 50 (Fifty), 70 (Seventy), 90 (Ninety), 110 (One
hundred ten), 130 (One hundred thirty), 150 (One hundred fifty), 170 (One Hundred
seventy), 190 (One hundred Ninety), 210 (Two Hundred ten) & 230 (Two Hundred Thirty)
days from the date of issue of sale order (inclusive of the date of issue of sale order).
78

79. However, lifting of entire quantity of material has to be completed within the validity period
of 300 (Three Hundred) days from the date of issue of sale order (inclusive of the date of
issue of sale order). Payments shall be in the form of DD/BC/Pay order or
acknowledgement note from SBI, IFB commercial, Branch of Raipur / Bokaro payable at
Bokaro from any of the Nationalised / Scheduled banks in favor of SAIL / Bokaro Steel
Plant. Incase of failure of payment as mentioned above and or failure in lifting of material
within the validity period of lifting, the Management reserves the right to cancel the sale
Order and forfeit the security deposit.
7) LOADING AND TRANSPORTATION:
Loading and transportation of the material in the tenderer vehicle has also to be done by the
tenderer at their own cost and arrangements. Successful customer will be allowed to lift the
material only 4 days in a week. 8) Bokaro Steel Plant reserves the right to accept or reject
any of the tenders or all the tenders or award contract to any other customer fully or partially
without assigning any reason.
9) The management reserves the rights to divide the quantity offered for sale and allot the
material to more than one tenderer.
10) VALIDITY OF LIFTING:
The successful tenders have to complete the lifting of the allocated quantity of material
within 300 (Three hundred) days from the date of issue of sale order.
11) The offer of the customer would remain valid for a period of 90 (Ninety) days from the
date of opening.
12) Loading will be done under the supervision of MRD, the operating agency of the
contract.
13) Evaluation criteria are the highest price for whole quantity (12000 Cu.) subject to the
price being acceptable to the management of Bokaro Steel Plant.
14).The standard Arbitration Clause of BSL as per the Arbitration and
Conciliation act 1996 would be applicable.
LIFTING OF MATERIALS
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80. TERMS & CONDITIONS
1) Speed limit of the trucks plying in the plant premises for lifting the material should be
restricted to 15 km. per hour. Drivers who will also adhere to slow and safe driving inside the
plant and township area will strictly adhere to this limit.
2) The weighment taken at the road weigh Bridge of BSL Will be final and binding for all
purposes.
3) The date of delivery is the date of actual physical delivery.
4) The price applicable will be the price prevailing at the time of delivery /dispatch,
irrespective of the price quoted in the sale order.
5) The customer can send their representative with appropriate authority / identification
letter and a copy of this sale order for taking delivery.
6) Loading of any material by the customer belonging to company which is not contracted
to be sold or any wrongful and / or unauthorized removal of the company's property or
any attempt to do so will amount to breech of contract and company without any prejudice to
remedies available in the civil and/ or criminal Law for such act shall have the right to
terminate the contract and impose any penalty as deemed fit by competent Authority.
7) In the event of any suspicion about wrong material being carried away by a customer or
his representative. They will be asked to off- load the material for investigation and customer
will not be entitled in such case to any compensation with regard to any hire charges of the
truck or any other expenditure incurred by the customer during loading and reloading.
DELIVERY
a) On receipt of release order, MRD plans about the number of trucks/trailers to be
entertained each day. After ascertaining quantum of different types of scraps to be issued per
day, number of trucks/ trailers expected, loading and we ghment facilities available etc. MRD
in consultation with marketing, intimates to the parties, the likely date of collection so as to
deploy their fleet on the dates.
b) Wsix of each truck/trailor is taken before and after loading under strict supervision.
c) Gate passes and other related documents are prepared by MRD to help, facilitate the
delivery process.
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81. ACCOUNTING
a) Finance department scrutinizes each related document and prepare; choice in the
prescribed format.
b) MRD prepares daily stock and sale report and sends its copies to marketing and finance
department.
REFUND OF SECURITY DEPOSITS
a) Party has to give an application for closing or canceling of sale order to marketing
department.
b) After receiving the application-marketing department prepares
closing/cancellation order within three days of receipt of application and issue to all
concerned agencies.
c) Concerned department and central industrial security force (CISF) issue No dues
certificate (NDC) and send to marketing department. If NDC is not received in marketing
department within 10 days, it will be considered that the concerned department has no claim
on the party, and marketing department takes further necessary steps accordingly.
d) After receiving NDC from concerned departments, marketing department issues
letter of refund of security deposit to finance department.
e) Finance department verifies documents and ensures issue of cheques to party against
refund of security within 7 days.
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82. DISTRIBUTION OF SECONDARY PRODUCT
The current procedure being adopted by Bokaro Steel Plant for the distribution of re-rollables
against the fixed price can be explained as follows: -
Nearly 80% of the material available is offered to the actual consumers/ re-rollers and 20% to
scrap processors and others. However, in the event of poor off-take by re-roller/scrap
processor, the surplus available is offered to the ~ trader as well but to a very limited extent.
The status of actual users/ re-rollers is decided on the basis of the necessary certificate issued
by the Director of industries of the state.
Whenever there is surplus quantity available and the material is heterogeneous in nature,
the same is sold through auction/tender on all India basis without making any distinction
between the actual users and traders.
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83. CHAPTER-6
Mode Of Sale
1. E-Auction.
2. Fixed Price.
3. ITPR.
4. Long Time Arrangement.
DEFINITION OF KEY TERMS
Auction.
Auction refers to a forum where the requirement for one/more lots of an item is stated
and the participants (bidders) are required to bid down the price to be selected to supply the
requirement.
Online Auctions.
Online auctions refer to those auctions conducted through the Internet with the
bidders (from one or more locations) simultaneously bidding to be selected for supplying the
item/s on auction. In other words, the venue for the auction is on an Internet website/
platform. The "Service Provider's" website assigned by "Service Provider" would constitute
venue for the purpose of the online auction.
Award at the Auction.
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84. In a single winner format, only one bidder (normally the bidder who quotes the
highest price) is awarded all the units of the item being auctioned. The bidder quoting the
highest price is normally allotted the item.
Client.
Client is the individual/business entity who has contracted "Service Provider" to
conduct such auction. In case of auction, the purpose would be the genuine intent to sell the
selected items/Lot to the bidders desiring to buy these items from the Client.
Bidder.
Bidder is the individual/business entity participating in the auction, intending to buy
the items/Lots from the Client. To be become a Bidder in the auction, a business entity has to
secure client approval for participation and also provide written assent to the General Rules
and Regulations
Auction Engine.
Auction Engine refers to the software that encapsulates the entire auction
environment, processing logic and information flows. "Service Provider" is the sole owner of
the auction engine and retains exclusive right over the utilization of the same.
Timings of the Online Bid.
All the timings of the Online Bid shall be based on the time indicated by the Server
hosting the Auction Engine. It shall be the endeavor of "Service Provider" to ensure that the
Server Time reflects as closely as possible the Indian Standard Time (IST) i.e. GMT + 0530
hrs. However, in the event of any deviations between the Server Time and the Indian
Standard Time, the functioning of the Auction Engine
(Launch, operation, and closure) would be guided by the Server Time. Bidders are advised to
refresh both the windows of the Auction Module check the exact Server Time (displayed in
both the windows).
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85. Preview Time.
Preview Time refers to the period of time that is provided prior to the commencement
of bidding. This is to facilitate approved participants to view the auction details such as item
specifications, bidding details and bidding rules. The purpose is also to familiarize
participants with the functionality and screens of the auction mechanism. It is not mandatory
for "Service Provider" to provide Preview Time.
Start Time.
Start time refers to the time of commencement of the conduct of the online auction. It
signals the commencement of the Price Discovery process through competitive bidding.
Duration of the Auction.
It refers to the length of time the price discovery process is allowed to continue by
accepting bids from competing bidders. The duration of the auction would normally be for a
pre-specified period of time. However, the bidding rules may state the conditions when the
pre-specified duration may be curtailed/ extended. The conditions include:
Curtailment of auction duration in the event of no bids for a specified period of time
(Inactivity Time)
Automatic extension in the event of bids being entered towards the end of the scheduled
duration to facilitate the other bidders to view and react to the bid.
Auto Extension of the Auction Timings.
In the event of bids in the last few minutes of the scheduled bid time, the Bid Timings
are automatically extended for a specified period from each such bid. Such Auto Extension
shall continue until no bids are placed for the specified period (Engine remains inactive for
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