Bhushan Steel Ltd Project

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COMPETITORS ANALYSIS & DEALERS PERCEPTION TOWARDS BHUSHAN STEEL LTD SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION (Affiliated To Ch. Charan Singh University, Meerut) Academic Session [2012-2015] Submitted by: DARPAN AGARWAL Roll No: - 9356572 UNDER THE GUIDANCE OF: External Supervisor - Internal Supervisor MR. NEERAJ AGARWAL Ms. AKANSHA TYAGI D.G.M MARKETING ASSISTANT PROFESSOR 1

Transcript of Bhushan Steel Ltd Project

  1. 1. 1 COMPETITORS ANALYSIS & DEALERS PERCEPTION TOWARDS BHUSHAN STEEL LTD SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION (Affiliated To Ch. Charan Singh University, Meerut) Academic Session [2012-2015] Submitted by: DARPAN AGARWAL Roll No: - 9356572 UNDER THE GUIDANCE OF: External Supervisor - Internal Supervisor MR. NEERAJ AGARWAL Ms. AKANSHA TYAGI D.G.M MARKETING ASSISTANT PROFESSOR BHUSHAN STEEL LTD. IMS GHAZIABAD IMS GHAZIABAD (University Course Campus)
  2. 2. 2 NH-24, ADHYATMIK NAGAR GHAZIABAD. PREFACE Summer Training assignment is a part of Bachelors of Business Administration program of the Institute of Management Studies, Ghaziabad. Summer assignment not only gives an opportunity to deal with real life situations in a business / industrial environment but also gives a student of management of first hand opportunity to put his theoretical inputs into practice . The project report mentions the honest efforts to understand the marketing concepts in real life situations. This report is being prepared for the study of competitor analysis & dealers perception toward Bhushan Steel Ltd along with the analysis of major flat Steel producers like TATA STEEL, JINDAL STEELS and SAIL in terms of preference, cost, quality, after sales service etc. Besides this, the report also puts on to compare market share of Bhushan Steel Ltd and other organizations. DARPAN AGARWAL
  3. 3. 3 i ACKNOWLEDGEMENT I am thankful to the BHUSHAN STEEL LIMITED, Sahibabad industrial area, Dist. Ghaziabad for allowing me to undergo my summer Training for partial fulfilment of the requirement for the degree of Bachelors of Business Administration. The accomplishment of the present study became possible by invaluable assistance and guidance of our professional guides and colleagues to whom we are gratefully indebted. First of all I wish to express my special thanks to Mr Neeraj Agarwal (DGM Marketing) of BSL. His cheerful induction on my first visit to companys office helped me to know about BHUSHAN STEELS as a company and the activities I had to perform. I am thankful to Mr Manish Sharma (Marketing Manager) for providing the necessary orientation throughout the project. I wish to thank and pay regard to all my teachers specially Ms. Akansha Tyagi (Assistant Professor, IMS Ghaziabad) without their guidance and blessing this project could not be completed. I am also thankful to all the other people of marketing department, all the dealers, shopkeepers and all the people who have already used the flat Steel products whom I met during the survey, for their cooperation throughout the project. Last but not the least we are indebted to our parents for their moral support during the course of study. Date: - 8/5/2015 DARPAN AGARWAL ii
  4. 4. 4 DECLARATIONS I Darpan Agarwal (Roll No. 9356572) student of Institute of Management Studies, Ghaziabad hereby declare that the project entitled COMPETITORS ANALYSIS & DEALERS PERCEPTION TOWARDS BHUSHAN STEEL LTD is the original work done by me and the information provided in the study is authentic to the best of my knowledge. This study report has not been submitted to any other institutions or university for the award or any other degree. DARPAN AGARWAL iii
  5. 5. 5 EXECUTIVE SUMMARY Through this project we came to know about the sales & competitor analysis & consumer behavior towards Bhushan Steel Ltd. This report looks into a steel industry, well famous for its steel products. Bhushan Steel Ltd. is one of the names in steel industry which has high reputation and brand value in the market. So far research is concerned and survey is done on 100 Respondents. The survey was done to create data base for the company and also do the analysis of the project report. The result which we found out through surveys helped the company to redesign some of its policies. The objective of the product is to do competitor analysis in comparison to the brand preferred in the market in terms of product range, pricing, availability, supply, quality and after sales services and also to understand the Marketing mix and sales analysis of the flat Steel products. Bhushan Steel Ltd. serves the interest of their consumers and also it a competitive organization. The major finding indicates that Bhushan Steel Ltd. should take some more initiative to expand their business overseas and adopt more advertising principles to popularize their products. iv
  6. 6. 6 TABLE OF CONTENTS S.No. Topic Page no. CERTIFICATE i PREFACE ii ACKNOWLEDGEMENTS iii EXECUTIVE SUMMARY iv 1. OVERVIEW OF INDIAN & WORLD STEEL INDUSTRY 1-4 2. ABOUT THE COMPANY 5-19 3. 5Ps of Marketing- 3.1 Product 3.2 Price 3.3 Place 3.4 Promotion 3.5 Packaging 20-34 20-27 28-29 29-33 34 34 4. APPLICATIONS 35-36 5. RESEARCH METHODOLOGY 5.1 RESEARCH OBJECTIVE 5.2 SAMPLE & RESEARCH DESIGN 5.3 DATA COLLECTION 37-41 38 39-40 39 6. DATA ANALYSIS 42-58 7. FINDINGS 59 8. SUGGESTIONS 60 9. LIMITATIONS 61 10. BIBLIOGRAPHY 62 11. ANNEXURE 63-64
  7. 7. 7 OBJECTIVES OF THE STUDY To understand the Marketing mix of Bhushan Steel Ltd. Sales analysis of the flat Steel products of Bhushan Steel Ltd. To do competitor analysis in comparison to the brand preferred in the market in terms of product range, pricing, availability, supply, quality and after sales services. To know about Dealers Perception for flat steel products of Bhushan Steel Ltd.
  8. 8. 8 OVERVIEW OF THE INDIAN & WORLD STEEL INDUSTRIES
  9. 9. 9 INTRODUCTION Steel is essential to the modern world, and its use is critical in enabling man to move towards a sustainable future. Whether in lighter, more efficient vehicles or renewable energy generation, steel is a fundamental part of a greener world. SAIL and Tata Steel have been the major steel industries of India. Since 1990, a huge investment has been made into the industry. Indian Steel Industry also went through a rough phase but improved after 2002. India has now emerged as one of the largest producers of steel in the entire world. Almost all varieties of steel are now being produced in the country. India has also emerged as a net exporter of steel and Indian steel is being increasingly accepted in the global market. World Steel in Figures 2014:- The World Steel Association (world steel) has published the 2014 edition of World Steel in Figures. COUNTRY PRODUCTION (MT) CHINA 739 JAPAN 110.2 UNITED STATES 92.6 INDIA 82.3 RUSSIA 73.8
  10. 10. 10 Industry trends: Indian and Global perspectives, recent happenings. Steel is the back bone of human civilization, it is very crucial in development of a modern economy. The per capita consumption of steel shows the living standard of people in any country. Global Perspective: The industry directly employs about more than two million people worldwide, with a further two million contractors and four million people in the supporting industries. Considering steels position as the key product supplier to industries such as automotive, construction, transport, power and machine goods, and using a multiplier of 25:1, the steel industry is at the source of employment for more than 50 million people. World crude steel production has increased from 851 mega tonnes (Mt) in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900).World average steel use per capita has steadily increased from 150 kg in 2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have all entered the top 10 steel producers list in the last 40 years. Indian Perspective: At the time of independence, India had a small Iron and Steel industry with production of about a Million tonnes (mt). In due course, the government was mainly focusing on developing basic steel industry, where crude steel constituted a major part of the total steel production. Many public sector units were established and thus public sector had a dominant share in the steel production till early 1990s. Mostly private players were in downstream production, which was mainly producing finished steel using crude steel products. Capacity ceiling measures were introduced. Basically, the steel industry was developing under the controlled regime, which established public sector steel companies in various segments. Till the early 1990s, when economic liberalization reforms were introduced, the steel industry continued to be under the control of Indian regulation were constituted such as large plant capacities were reserved only for public sector under capacity control measures; price regulation; for additional capacity creation
  11. 11. 11 Producers had to take license from the government; foreign investment was restricted; and there were restrictions on imports as well as exports. But after liberalization many reforms and regulation were changed which brought the new era for development in steel industry. Some of the major developments were: 1. Large plant capacities that were reserved for public sector were removed; 2. Export restrictions were eliminated; 3. Import tariffs were reduced from 100 percent to 5 percent; 4. Decontrol of domestic steel prices; 5. Foreign investments was encouraged, and the steel industry was part of the high priority industry for foreign investments implying automatic foreign equity participation up to 100 percent; and 6. System of freight ceiling was introduced in place of freight equalization scheme. Due to this, the domestic steel industry has since then, become market oriented and integrated with the global steel industry. This has helped private players to expand their operations and bring in new cost effective technologies to improve competitiveness not only in the domestic but also in the global market. The Indian steel industry comprises of the producers of finished steel, semi-finished steel, stainless steel and pig iron. Indian steel industry, having participation from both public sector and private sector enterprises, is one of the fastest growing markets for steel and is also increasingly looking towards exports as driving the growth of the industry. Indian steel Industry Structure: Indian iron and steel industry can be divided into two main sectors: Public sector and Private sector. Further on routes of production it can be classified as: Integrated producer which convert iron ore into steel e.g. SAIL, TISCO, etc and Secondary producer which make steel from sponge iron or scrap e.g. ISPAT Industries, Essar.
  12. 12. 12 ABOUT THE COMPANY
  13. 13. 13 ABOUT THE COMPANY Bhushan Steel Ltd formerly known as Bhushan Steel & Strips Ltd. is a part of the Bhushan Group and is one of the leading prominent players in Steel Industry. Indias 3rd largest Secondary Steel Producer with 2 million tons per annum (approx.), production capacity. Bhushan Steel was the brain child of Mr. B. B. Singhal, and it first marked its presence in Sahibabad (Uttar Pradesh) in 1987. The company has three manufacturing units in the state of Uttar Pradesh (Sahibabad Unit), Maharashtra (Khopoli unit), and Orissa Plant (Meramandali unit) in India and sales network is spread across the Globe. POLICIES Integrated Quality Policy. Environment, Occupational Health Policy. Safety Management System Policy.
  14. 14. 14 MISSION Our mission is to grow our companyby providing innovative strong and high performance products and solutions to meet our globalcustomer needs. , Is the motto of BhushanSteel. Bhushan Steel Ltd. commits to produce cold rolled and galvanized Steel sheets of world class quality in a safe, healthy and clean environment by involving employees with continual improvements in system implementation, technological advancement, operational integration, Prevention of pollution & hazards maintaining VISION Thevision of evolving into a totally Integrated Steel Producer by committing to achieve the highest standardsof Quality through Cutting-EdgeTechnologyand ensuring minimum wastage. BSLs vision of total integration is a lot closer to realization today. Through seamless backward integration, BSL is consolidating its position on the entire Steel value chain from iron ore to specialized is surging ahead
  15. 15. 15 BUSINESS OVERVIEW OF Bhushan Steel Ltd Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Sales 9,940.96 7,000.46 5,640.35 4,957.56 4,203.95 Operating profit 3,003.70 2,037.17 1,452.74 1,033.44 832.60 Interest 1,046.07 414.04 210.01 252.96 136.85 Gross profit 1,985.87 1,688.21 1,360.51 798.40 749.20 EPS (Rs) 48.24 48.65 39.83 19.44 19.36 SHAREHOLDERS PATTERN Shareholders Percentage Promoters 64.20% Corporate Bodies 25.10% Individuals 7.80% Institutional Investors 2.90% Total 100%
  16. 16. 16 ADMINISTRATION SET UP OF BHUSHAN STEEL LTD :- MANAGING DIRECTOR Mr. Neeraj Singhal ANGUL PLANT HEAD SAHIBABAD PLANT HEAD KHAPOLI PLANT HEAD FINANCE DEPARTMENT HUMAN RESOURCE DEPARTMENT MARKETING DEPARTMENT TECHNICAL DEPARTMENT ACCOUNTS DEPARTMENT CHAIRMAN Mr. B.B. Singhal
  17. 17. 17 MARKETING DIVISION OEM DOMESTIC TRADING EXPORT VICE PRESIDENT (Mr. D.K. SHARMA ) D.G.M. (Mr. Neeraj Agarwal)
  18. 18. 18 INTEGRATING VALUE Bhushan Steel's Cold Rolled Steel activity produces and markets an extensive range of value added Products such as CRCA (cold rolled closed annealed), Galume, Color coated sheets, High tensile Steel straps, Hardened and tempered Steel, drawn tubes etc. CRCA, produced at Sahibabad facility caters to customers like Maruti and other OEMs. Its galvanizing plants are located strategically close to the ports of Mumbai, helping it to cater to the global demand at competitive prices. After having grown to a size of approximately 1 MTPA in cold rolled and coated products, the company has embarked on its Orissa project to integrate backward into the production of HR Coil and billets, so as to meet current and future internal requirements. Also, it plans to develop various EDD (extra deep drawing) grades used in the automobile's critical applications like outer body panels of cars (these are currently imported). With a strong presence in Indian Steel market, Bhushan Steel Limited offers effective Steel solutions to the automotive, construction and household appliance industries. A combination of technical expertise and sales service fosters a close relationship between Bhushan Steel and its customers. Clinching on its quest for excellence, the Group meets the automotive and white goods industry expectations with new products that are distinctive and ahead of the competition.
  19. 19. 19 TECHNOLOGY Bhushan Steel unwavering focus on acquiring and leveraging the best available technology has engendered a period of unprecedented growth and progress. The state of art Khopali Plant has fully commenced and is playing pivotal role in the tremendous growth of exports as well as in the production of a much larger variety of value added Steel like coloured coated sheet. High tensile Steel strapping, hardened & tampered strips, spring Steel, precision tubes and the soon to be manufactured for the first time in India Galume Value Added Steel. The Sahibabad plant is operating at full capacity and giving a substantial volume thrust to the organisation. The Khopoli plant which operates with the very latest technology becomes fully operational has the production capacity of 450000 MT per annum of cold rolled Steel which includes 250000 MT of galvanised Steel. Bhushan Steel is now Indias third largest secondary Steel producer after SAIL and TISCO. BSSL had the distinction of being the only producer of widest width of CR sheet. The biggest landmark on its growth path is of course the Orissa plant. This integrated Steel and power plant will put BSSL firmly in the path of progress transforming BSSL into a completely self-reliant organisation. BHUSHAN has set up the technology of manufacturing a very new coated product called BHUSHAN GALUME being the brand name. This alloy coating consists of 55% Aluminum and 43% Zinc and the balance contains Silicon around 1.5% to affect excellent adhesion to the Steel substrate. TECHNOLOGICAL BACKUP The coater technology is the latest from GFG, USA and thermo Radiometric Germany and special high jet cooling tower from UK. We have tie up with M/s Henkel Chembond Surface Technologies Ltd for the supply of chromating chemicals and acrylic coating and 0n line continuous monitoring for the coating control and salt spray analysis in addition to our on line monitoring by quality control dept.
  20. 20. 20 RESEARCH & DEVELOPMENT Company R&D activities consists of carrying on normal qualities testing of its raw materials , work in progress and finished goods . It does not involve development of new products. We have full-fledged laboratory with test equipments- Emission spectroscope for the chemical analysis, computerized Universal testing machine with stress-strain graph for tension tests, surface finish tester, Hardness testers using both Vickers and Rockwell scales, LFQ testing machine, Cupping tester, on line Radiometric and off line chemical lab for coating mass, salt spray tester for corrosion resistance, and Humidity chamber. The company has a latest state of the art R&D Center and has many first to its credit including development of panel grade material for Refrigerator, Visi Coolers & chest Coolers of Coca- Cola & Pepsi, ultra-thin CR Steel for Picture tube & battery application etc. For continuous marketing of our product quality , we keep carrying out testing from outside laborites. This has resulted in continuous upgrading of the process parameters conforming to any international standards. Further we have online backup SGS inspection for all test parameters upto the point of dispatch. NEW PRODUCT DEVELOPMENT Bhushan Steel is pioneer in the industry to develop new products which can substitute the imported material to reduce cost of purchase/sourcing for domestic industry. In this direction Bhushan has developed new products, viz., Outer Skin Panels for cars, HLGP Coated material for fuel tanks and High Tensile Strength Colled Rolled and Galvanized Steel for Automobile Industry.
  21. 21. 21 OUTER SKIN PANELS FOR CARS Bhushan Steel has emerged as leading supplier to all passenger cars, multi utility vehicles manufacturers car skin panels which call for a combination for mechanical properties shape and dent free surface of leading automobiles are made from our product which result in lesser inventories. The basic raw material i.e. HR Coils used to produce skin panels imported from Japan, Korea, France & UK. HIGH TENSILE STEEL FOR AUTOMOBILE INDUSTRY Reduction in automobile weight and thereby improvised fuel economy and passenger safety required Steel that could offer high degree of formability with increased strength. Interstitial free high strength Steel offered by Bhushan Steel combine these factors. Bhushan Steel offers Interstitial free-high strength Steel with tensile strength as high as 550MPa. The common grades used by Automobiles are SPRC 340, SPRC 390, SAPH 390, SAPH 410, and SAPH 450. Bhushan Steel is also in the Bake Hardening Steel and TRIPP Steel.
  22. 22. 22 Manufacturing Process RAW MATERIAL Remove Surface Impurities. To get desired Thickness H.R. COIL (HOTROLLED COIL) PICKLING H.R. COIL PICKLED COLD ROLLING C.R. COIL COLD ROLLED COIL
  23. 23. 23 Cycle-1 Cycle-2 Cycle -3 Soft Hard C.R. COIL COLD ROLLED COIL Annealing (To get desiredphysical & chemical properties) C.R.C.A. COIL (Cold Rolled Coil Annealed Cut to length Packaging Dispatching Galvanizing (Zn , Al Alloy ) G.P. Coil (Galvanized plane Coil) Galvanized Corrugated Sheet Packaging Dispatching G.P.Sheet G.P.Coil Packaging Packaging Dispatching Dispatching Cut to length C.R. SHEET ---F/H-------- Annealing (To get desiredphysical & chemical properties) B.P. SHEET Packaging Dispatching Cut to Length Cut to Length Corrugate
  24. 24. 24 OVERVIEW OF THE 5Ps OF MARKETING FOR BHUSHAN STEEL LTD.
  25. 25. 25 A BRIEF ABOUT 5Ps OF BSL (3.1) PRODUCT:- Its Product can be classified as below: PRODUCTS Long ProductsFlat Products Cable Tapes Precision Tubes Black Pipes G P Coil G P Sheets Wire Rods Bar MillsSteel Coil Corrugated Sheets Cold Rolled sheets Galvanized Coil Narrow C R Coil Galume
  26. 26. 26 FLAT PRODUCTS:- 1. Cable Tapes:- These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering Applications etc. Precision Tubes are made at our Chandigarh and Kolkata plants. 2. GP Coils:- These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering etc. 3. Steel Coils :-
  27. 27. 27 These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering Applications etc. 4. GP Coil Sheets :- Applications: Galvanised Coils and Sheets are used to make Boxes, Containers, Ducting, Cooler Body, etc. GP Coils are manufactured at our Kolkata Plant. 5. Corrugated Sheets:- Corrugated sheets are extensively used for Industrial sheds, housing, temporary structures etc. Corrugated Galvanized Sheets are manufactured at Our Kolkata plant.
  28. 28. 28 6. Cold Rolled Sheets :- Cold Rolled Sheets are used in the manufacture of Automobiles, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and general engineering products. CR Sheets are produced at our Chandigarh, Kolkata and Orissa plants 7. Narrow CR Coils:- Narrow Cold Rolled Coils are used in the manufacture of Automobiles, Precision Tubes, Cable Tapes, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and general engineering products. Narrow CR Coils are produced at our Chandigarh, Kolkata and Orissa Plants. 8. Galvanized Pipes:-
  29. 29. 29 Galvanized Pipes find its uses in a number of applications including domestic, agriculture and Industrial. Galvanized Pipes are available in the sizes ranging from 10mm NB to 100 mm NB, Strip thickness 1.80 mm 5.40 mm We manufacture GI Pipes at our Derabassi (Punjab) Plant. 9. Black Pipes:- Black pipe is used for transportation of air, gas, fabrication of structure, automobiles, cycles and general furniture industries. Varnished pipes are used for general engineering industries. Black pipe is manufactured at our Chandigarh, Derabassi and Kolkata plants. 9. Precision Tubes :- These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering Applications etc. Precision Tubes are made at our Chandigarh and Kolkata plants.
  30. 30. 30 11. GALUME:- BHUSHAN has set up the technology of manufacturing a very new coated product called BHUSHAN GALUME being the brand name. This alloy coating consists of 55% Aluminum and 43% Zinc and the balance contains Silicon around 1.5% to affect excellent adhesion to the Steel substrate. Galume Production Technology: This coating is given on the cold rolled substrate processed from selective Hot rolled coils with selective chemistry for getting the desired mechanical properties specified by the customers. The Galume product is made by the continuous hot dip process. The cold rolled coils are welded end to end and passes through 3 stage degreasing section for achieving excellent cold rolled strip surface. The coating system is 2 pot system- premelting pot and the main coating pot. The bath chemistry is continuously controlled and monitored at the pre melting pot which continuously feeds the main coating pot through the refractory tunnel. Galume market We have produced about 50000 MT as on date from the commissioning of our Galume production. Our line is fully booked and hopes to produce continuously about 15000 MT per month. In India, we are supplying Galume and Pre-painted Galume to reputed companies. To mention few of them, we supply to Kirby, Trigger Steels, Lloyds Insulation, Multicolor, GSP Power, ERA Metal, Unimet Profiles, Isolloyds Engineering, Color Roofing, Havels India Ltd, MG Industries, Ganga roofers, Century wells and others . Our 80 % of production is exported to various counties all over the world, USA, European Countries and Spain, South Africa, Italy and South East Asian countries. There are no Indian
  31. 31. 31 standards for this product. We have established our product in international market against ASTM / EURO and AS standards. It is imperative to mention to you that now our product or brand is preferred over Arcelor and Blues cope. Some of our Global direct customers are Defer co-USA, NOVO Steel USA, Toyota Tshuho, America Nialco SA Belgium, Savogni Italy, Gibbs Steel, South Africa, Arcelor Barba DOS, Global Roofing-Durban and others. GALUME Properties: Due to bright surface & fine spangles, excellent heat reflectivity up to 315 c, & due to high Aluminum content, Galume has heat (oxidizing) resistance up to > 320 c without discoloration and without impairment of its alloy coating. PRE-PAINTED GALUME SHEETS Coil coating is the most advanced techniques used in the continuous application of an organic coating on to a flat metal substrate in the coil form Bhushan Steel is the only company in India which is producing colored sheet first time in India. Coil Coating Process: * CLEANING OF SHEET * CHEMICAL COATING * DRYING * PRIMER APPLICATION (ON BOTH TOP & BOTTOM) * CURING OF PRIMER * TOP COAT & BACK COAT APPLICATION * CURING OF TOP & BACKING COAT
  32. 32. 32 LONG PRODUCTS:- 1. Wire Rod and Bar Mill:- With the introduction of most technologically advanced special and alloy steel long product rolling complex for manufacture of value added bars and coils, a new dimension has been added in BPSL's long history in the steel business. The Long Product Rolling Complex consists of a most modern 0.5 million tpa multiproduct Wire Rod and Bar Mill (18 pass Horizontal & Vertical Continuous Mill) supplied by Danieli Morgardshammar, Italy and KOCKS, Germany (4 pass mill). The state of the art Wire Rod & Bar Mill, one of the most modern plants of this type in the world, will produce: Straight Bars Bar in Coil form Wire rods
  33. 33. 33 (3.2) PRICE:- Price is one of the most crucial elements behind a successful product. It is more pragmatic & fact oriented in industrial marketing as compared to pricing for consumer product. Factorinfluencing pricing strategyof Bhushan SteelLtd are:- 1. Production cost:- It includes the cost of the raw materials, cost of transportation, cost of all other things which are involved in the production of the various products. Production cost highly influences the pricing policy of various goods at Bhushan Steel. Bhushan Steel aims at reducing its production cost by having its own power plant and its own raw material which helps as a major factor in reducing the overall production cost and supplies goods at the best price in market. The production units of BSL are situated at very good locations and near to the consumer centers of North and South so its distribution cost is thereby reduced. 2. Market demand:- The demand of the various products in the market also plays a key role in developing the pricing policy of bhushan steel as if market demand is huge then there will be bulk production of goods which will reduce the overall cost and if the market demand is less and then production cost per unit increases. 3. Competition:- Bhushan Steel also keep in mind the competitors price of the products while formulating its pricing policy. Bhushan steel provides goods at reasonable rates than its competitors
  34. 34. 34 as it has its own material and electricity which plays a vital role of steel production process. 4. Government regulations:- Price also fluctuates by various government rules and regulations. Government policies keep changing from time to time which affects the pricing strategy and principles of Bhushan Steel. (3.3) PLACE:- Place represents the location where a product can be purchased. But in industrial marketing place is often referred to as the distribution channel. Channels of Distribution:- Direct Marketing Channel (or Zero Level):- This type of channel has no intermediaries. In this distribution system, the goods go from the producer directly to the consumer, e.g., Eureka Forbes Indirect Marketing Channel:- 1. One-level Channel: In this type of channel there is only one intermediary between producer & consumer. 0 Level Producer Consumer 1 Level Producer ConsumerRetailer
  35. 35. 35 Distribution Channel at BSL OEM (0 Level) DOMESTIC TRADING (1 Level) EXPORT (0 Level) Delivering of Schedule Order Payment in form of L.P. Totally based on projections. No Payments No Order Payment as per agreement Order in form of schedule
  36. 36. 36 MARKETING NETWORK
  37. 37. 37 MAJOR CUSTOMER AND CLIENTELE
  38. 38. 38 (3.4) PROMOTION The promotional activities at Bhushan Steel Ltd. are done basically through advertisements, personal selling and Direct Marketing. BSL give advertisements in the power and steel magazine of India and also in some of the newspapers.The public relation of BSL is also high as it has build trust and goodwill over the years among their customers which leads to good word of mouth and which also helps in promoting their products. At BSL Direct marketing is involved in which the customers contact BSL directly and place orders of the products .This direct marketing takes place through the image and goodwill of BSL. (3.5) PACKAGING HIGH TENSILE STEEL STRAPPING -FOR PACKAGING The Cold Rolled High Tensile Steel strapping is specially heat treated to provide high strength and toughness for packaging application. On this high speed and high precision online heat treatment line, the special strap paints are applied for strapping and cured by wave curing system using quartz lamps. For tension transmission high gloss wax is applied and cured by infrared wave curing system. The allied products such as whole variety of metal seals and strapping tools are also available to our customers, confirming to the International Standards ASTM D-3953 All variety of seals like, Snap-on seals, Push type seals, Nestack seals are available for various applications
  39. 39. 39 APPLICATIONS Flat springs for automobile clutches, Woodworking saws, Masonry & Argo. Tools, Gang saws blades, for marble cutting, Doctor Blades, for paper industries, leather splitting knives, Drop pins for textile industries etc. BENEFITS TO CUSTOMERS 1. EXCELLENT SURFCE FINISH Auto shape control on both side of the mill. Mill clean system with a synthetic coolant to avoid any coolant mark on the strip. Electrolytic cleaning line to remove IRON FINES form strip, which helps in improving the life of salt-spray test after painting and avoids carbon soot completely. It also increases the tools life in Press shop. Latest and sophisticated EDT machine from Waldrich Siegen, Germany, to provide controlled texture for better paint adhesion and to achieve surface roughness in close tolerances. On-line Tension-Leveling equipment for better flatness and controlled elongation. Computerized Inventory Control Management and independent skin-pass mill to avoid any unwanted storage in between annealing and skin-pass process. KATHABAR STORAGE SYSTEM is commissioned to avoid oxidation through dehumidifier to prevent rusting during storage. Electro-static rust preventive oil spray for controlled oil coating on CRCA surface. Oil coating can be maintained in between 0.50gms/m2 to 4.0gms/m. 2. EXCELLENT MECHANICAL PROPERTIES Practically, no variation in mechanical properties due to HICON 100% Hydrogen annealing furnace from EBNER, Austria.
  40. 40. 40 The raw material selection is done by dedicated software for different applications. 3. CLOSE TOLERANCE TO THICKNESS, WIDTH & LENGTH X-RAY thickness gauge to measure thickness in fraction of a micron from DMC, U.S.A. X-RAY thickness scanner across control from DMC, U.S.A Shim less tooling on slitting lines with computerized setting correct width in close tolerance, form Germany. Precision Cut-to-length lines to ensure length tolerances better then +/-0.75mm. Automatic Electromagnetic Stacker on shearing lines to produce scratch free,. OTHER ADVANTAGES Better width combination facility to customers. Higher yield in standard width material, i.e., up to 92.45%. Thickness, length & width tolerances as per customer requirements. The equipment is capable enough to maintain all these tolerances in the lower side of International Standards like JIS, BIS, ASTM and EN. The largest service center in the country available with Bhushan Steel enables it to accept the orders in different sizes and service the same in the shortest possible time. Well located on the map of the country for smooth supply of finished Goods.
  41. 41. 41 RESEARCH METHODOLOGY
  42. 42. 42 RESEARCH OBJECTIVES To understand the Marketing mix of Bhushan Steel Ltd. Sales analysis of the flat Steel products of Bhushan Steel Ltd. To do competitor analysis in comparison to the brand preferred in the market in terms of product range, pricing, availability, supply, quality and after sales services. To know about Dealers Perception for flat steel products. Why are we doing competitors analysis? Competitor analysis is an essential component of corporate strategy, we are doing competitor analysis to know the market share of Bhushan Steel Ltd among the major producer of flat Steel products in the Indian Steel industry. This competitor analysis will show the major areas of strength and weakness of the Bhushan Steels Ltd and other major producers. This will reveal the major opportunities in the industry that can help in the improvement of the Bhushan Steels Ltd. Competitor analysis will also show that which companys flat Steel product is mostly preferred by the customer.
  43. 43. 43 RESEARCH METHODOLOGY Methodology is the specifications of the method for acquiring the information needed to structure the study. 1. Problem Formulation: - This refers to transformation of the management problems into a research problem. 2. ResearchMethod: - It involves choosing Experimental or Non Experimental Research. This research was non experimental. 3. ResearchDesign: - It is the plan structure and strategy of investigation convinced so as to obtain answer research question. It is purely and simply the framework or plan for study that guides the collection of analysis of data. It is a blue print that is followed on completing the study. Designing of a research plan calls for decision on the Data sources, Research approaches, Research instruments, sampling plan. For this Research the Descriptive Research method was used. This is because it is marked by the prior formulation of specific research questions. It has a preplanned and structure design. For Descriptive Research study proposed data analysis and project output are critical aspects. SAMPLE DESIGN Sampling Method:- The Basic idea of sampling is that by selecting some of the element in a population in order to get first hand information of study. There are 2 types of sampling, probability sampling & non-probability sampling and in this research, Researcher has taken probability sampling.
  44. 44. 44 Simple Random Probability Sampling Method- Probability sampling is the most commonly associated with survey based research where you need to make inferences from your sample about a population to answer your research question or to meet your objectives. The process of probability sampling can be divided into 4 stages :- 1. Identifying a suitable frame based on your research questions or objectives. 2. Decide on a suitable sample size. 3. Select the most appropriate sampling technique and select the sample. 4. Check that the sample is representative of the population. The objective of probability sampling depends on the research questions & on the objectives Sampling Location:- Our Target population was the steel distributors and the companies where steel is used as a raw material We collected the information from the dealers located mainly in the Delhi/NCR region namely Ghaziabad, Faridabad and Naraina. Sampling Size :- The data for the sampling was collected from 100 people- 60 Customers & 40 Dealers Sampling Unit :- Dealers and customers which use and sell flat steel products.
  45. 45. 45 METHODS OF COLLECTION OF DATA Data collection is a key activity of Research. Data collection method is the backbone of research design. Collection of Primary Data :- Data was collected from the dealers and customers. Data was collected through questionnaires, Observations and Interviews. Questionnaire was made according to our requirements i.e. type of data required in our research. Analysis and Interpretation of Data Data which has been obtained are seldom useful to anyone, if it is not analyzed and interpreted in order, the breaking down of constituent parts are the manipulating of the data and to obtain answer to the research questions. Interpretations involves taking the result of analysis, making inferences relevant to the research relationship studied and drawing conclusions about these relationships. Technique used for analysis & Interpretation of data :- Pie - Charts Percentage analysis Research Report The culmination of the research process is research report. Methodology, report and recommendation for course of action are presented. The 2 critical attributes of reports are completeness and conciseness.
  46. 46. 46 DATA ANALYSIS AND FINDINGS
  47. 47. 47 DATA ANALYSIS 1. Interested in which Flat Steel products? a). CR COILS b). CR SHEETS c).GP & GC d). OTHERS PRODUCTS INTERESTED IN (Fig. no. 1) Interpretation It is found that 68% of people are interested in GP & GC products .These products are the most preferred and highly demanded products in the market. Then comes 22% of people are interested in CR SHEETS , 8% in CR COILS and 2% Others. 68% 22% 8% 2% PRODUCTS GP AND GC CR SHEETS CR COILS OTHERS
  48. 48. 48 2. Which aspect of product do you give most priority? a). PRICE b).PRODUCT RANGE c). QUALITY d).SUPPLY ON WHAT BASIS BRAND IS SELECTED (Fig. no. 2) Interpretation It is found that 29% of people select the brand on the basis of Price, 26% on basis of supply, 24% on basis of Quality and 21% on basis of Product range. Most of the people select the brand on basis of the price. 29% 26% 21% 24% BASIS OF SELECTION OF BRAND PRICE SUPPLY QUALITY PRODUCT RANGE
  49. 49. 49 3. Which companys flat Steel products you sell maximum annually? a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL SALE PERCENTAGE OF MAJOR PRODUCERS (Fig. no. 3) Interpretation It is found that dealers sell maximum Flat steel products of SAIL i.e. 38% which is the highest sales share. Then comes Bhushan Steel with 29% sales share, then TATA Steel with 20% sales share and last Jindal steel with 13% sales share. 20% 29% 13% 38% SALES SAIL JINDAL STEEL TATA STEEL BHUSHAN STEEL
  50. 50. 50 4. Rank 1-4 the following brands in terms of product range (1 max variety and 4 min variety) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF PRODUCT RANGE (Fig. no. 4) Interpretation It is found 48% of people prefer Bhushan Steel in terms of product range. It has the largest product range available in the market. Then comes TATA Steel on 2nd rank with 22% , then SAIL on 3rd rank with 18% and the 4th rank is of Jindal steel with only 12% of product range available in market. 22% 2nd Rank 48% 1st Rank 12% 4th Rank 18% 3rd Rank PRODUCT RANGE BHUSHAN STEEL JINDAL STEEL SAIL TATA STEEL
  51. 51. 51 5. Selectthe brands in terms of best price offered. a).TATA b).BHUSHAN STEEL c). JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF BEST PRICE OFFERED (Fig. no. 5) Interpretation It is found that SAIL offers the best price to its customers and the brand preferred in terms of price is 39% which signifies that it is the most preferred brand in terms of price, then comes 29% for TATA steel, then 20% for Bhushan steel and lastly 12% for JINDAL steel. 29% 20% 12% 39% BEST PRICE JINDAL STEEL BHUSHAN STEEL TATA STEEL SAIL
  52. 52. 52 6. Select the brands in terms of better Supply. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF SUPPLY (Fig. no. 6) Interpretation It is found that Bhushan Steel is the most preferred brand in terms of better supply with percentage share of 47%, then comes SAIL with 34% share, then TATA steel with 11%, then JINDAL steel with 8%. 11% 47% 8% 34% SUPPLY BHUSHAN STEEL SAIL TATA STEEL JINDAL STEEL
  53. 53. 53 7. Select the brands in terms of quality of flat Steel products. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF QUALITY (Fig. no. 7) Interpretation It is found that Bhushan Steel and TATA steel are the most preferred brand in terms of Quality of Product with 30% of market share on basis of quality, then comes SAIL with 26%, then JINDAL steel with 14%. 30% 30% 14% 26% QUALITY JINDAL STEEL SAIL TATA STEEL BHUSHAN STEEL
  54. 54. 54 8. Rank 1-4 in terms of the after sale services and complaint handling. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF AFTER SALE SERVICES (Fig. no. 8) Interpretation It is found that SAIL is the most preferred brand in terms of after sales service followed by Bhushan steel, followed by TATA steel and JINDAL steel at the last rank in terms of after sales service. 21% 3rd Rank 30% 2nd Rank17% 4th Rank 32% 1st Rank AFTER SALE SERVICE SAIL BHUSHAN STEEL TATA STEEL JINDAL STEEL
  55. 55. 55 9. Select the brands in terms of overall satisfaction level. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF OVERALL SATISFACTION (Fig. no. 9) Interpretation It is found that Bhushan steel is the most preferred brand in terms of overall satisfaction to its consumers with 51%, then comes SAIL with 29%, then TATA Steel with 12%, then JINDAL steel with 8%. 12% 51%8% 29% OVERALL SATISFACTION JINDAL STEEL BHUSHAN STEEL SAIL TATA STEEL
  56. 56. 56 10. Rank 1-4 the following brand in terms of the product availability. (1 most preferred and 4 least preferred) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF PRODUCT AVAILABLITY Interpretation It is found that Bhushan steel is the most preferred brand in terms of Product availability to its consumers with 36%, then comes SAIL with 30%, then TATA Steel with 21%, then JINDAL steel with 17%. 21% 3rd Rank 36% 1st Rank 17% 4th Rank 30% 2nd Rank PRODUCT AVAILABILITY JINDAL STEEL BHUSHAN STEEL SAIL TATA STEEL
  57. 57. 57 11. Select the brands with whom you are dealing the most. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL Interpretation It was found that Bhushan steel was the most preferred brand for the dealers whom they was dealing with due to its wide range of products at cheaper rates, then comes SAIL, then TATA steel followed by JINDAL steel. 20% 35% 15% 30% JINDAL STEEL BHUSHAN STEEL SAIL TATA STEEL
  58. 58. 58 SALES AND PRODUCTION ANALYSIS PRODUCTION STATSOF FLAT STEELPRODUCTS IN 000 TONNES IN INDIA *ESTIMATED FIGURE (Table no.1) YRS COMPANY 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TATA STEEL 3193 3231 3192 3586 3671 3798* SAIL LTD 9849 10288 9846 9736 9931 10403* JINDAL STEEL 2246 2361 2178 2321 2540 2610* BHUSHAN STEEL 2416 2498 2331 2357 2554 2663* OTHERS 7193 7765 7278 10504 10253 9154*
  59. 59. 59 SALES STATS OF FLAT STEELPRODUCTS IN 000 TONNES IN INDIA *ESTIMATED FIGURE (Table no.2) YRS COMPANY 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TATA STEEL 1671 1746 1684 1978 2080 2177* SAIL LTD 5436 5748 5110 4983 5518 5734* JINDAL STEEL 1648 1713 1332 1849 2278 2304* BHUSHAN STEEL 1614 2178 2083 2106 2267 2310* OTHERS 6034 6802 6111 8215 8006 6975*
  60. 60. 60 PRODUCTION AND SALES CHART OF THE YEAR 2007-2008 (Fig. no. 1) PRODUCTION AND SALES CHART OF THE YEAR 2008-2009 (Fig. no. 2) 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT
  61. 61. 61 PRODUCTION AND SALES CHART OF THE YEAR 2009-2010 (Fig. no. 3) PRODUCTION AND SALES CHART OF THE YEAR 2009-2010 (Fig. no. 4) 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT
  62. 62. 62 PRODUCTION AND SALES CHART OF THE YEAR 2011-2012 (Fig. no. 5) PRODUCTION AND SALES CHART OF THE YEAR 2012-2013 (Fig. no. 6) 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL OTHERS PRODUCTION* SALES* EXPORT
  63. 63. 63 FINDINGS BSL is the most efficient Flat steel producer from 2010-2013. In 2008-2009, Steel industry faced a downfall in their production and sales due to the great recession of 2011-2013. Bhushan Steel performed well in domestic sales during recession. Industry has minimized the gap between production and sales and thus reducing the wastage and inventory level thus improving the efficiency of the Steel industry. It was found that BSL makes a large variety of products with better technology and advancements strategies. BSL plants are situated near to the consuming centers which help in BSL in easy and fast delivery of products. The tie-ups that BSL has with the foreign companies for research and development is very beneficial for the BSL. BSL is also improving its image in terms of quality, supply, and price and after sales service. BSL wide range of products is a major advantage which helps them to be a market leader. GP & GC are the products which are most demanded in the market. SAIL is the largest producer of steel from 2008-2013.
  64. 64. 64 SUGGESTIONS The recommendations which are to be suggested is as follows:- Overseas expansion of their business Focus on New Research and Development Increase the Sales network and sales promotional activities in India and outside India. Improve its transportation facilities and after sales service BSL should focus on generating more power Retail outlets in India and abroad BSL should improve its quality and pricing strategy to be a sole leader in market Offer replacement of defected products instead of settlement. Increase s production of GP and GC Company should focus on making new dealers. And giving them more advantage Time-to-Time survey to be conducted
  65. 65. 65 Limitations Every study has its own limitations in terms of methodology and the resources available for its conduct. This study has no expectations to it and has been carried under following limitations:- There arose difficulty in collecting data as people were not there at their respective places, so we had to meet them even twice or thrice the same place. There were some companies who denied filling the questionnaires A number of dealers were biased towards a particular brand which was giving them better returns. Respondents lack of time to give information and their casual attitude was a big hindrance in the study. As 100% accurate data is not possible, and we have to rely on the information received through questionnaire, than 0.2-0.4% of error was allowed.
  66. 66. 66 SWOT ANALYSIS WITH REGARDS TO BHUSHAN STEEL LTD. STRENGHTS Adopting latest world class technologies. Technical tie-up with Sumitomo Metals, Japan. Location Advantage. Availability of its own iron ore and coal. Abundance of quality manpower at low cost. WEAKNESSES BSL lacks aggressive sales promotion activities. Lack of export market activities. Unscientific mining. Low productivity. Inadequate infrastructure. Low R&D investments. Power shortage is there at BSL. OPPORTUNITIES Since BSL is a major consumer of electricity which is almost 30 % of total product costing, it should have power plants which can produce a large amount of electricity for its own consumptions. Export Market Penetration Consolidation
  67. 67. 67 THREATS Government policies, this results in up and down in Steel prices. Technological change. Price sensitivity & Demand volatility. Slow Industry Growth.
  68. 68. 68 BIBLIOGRAPHY BOOK REFERENCE 1. Aaker,D.A. Marketing Research Johnwiley Publications, 7th Edition. 2. Philip Kotler Marketing Management Pearson Publications, 12th Edition. 3. Bery G.C Marketing Research Tata Macgraw hill Publications 3rd Edition WEB SITES 1. http://en.wikipedia.org/wiki/Bhushan_Steel 2. http://www.bhushan-group.org/ 3. http://www.bpsl.net/ 4. http://economictimes.indiatimes.com/bhushan-steel-ltd/stocks/companyid- 10434.cms
  69. 69. 69 ANNEXTURE QUESTIONNAIRES Dear respondent, I am a student and conducting a survey for consumers preference and competitors analysis for Steel products of major Steel producing companies in Delhi and NCR regions. We request you to answer the following questions. The information provided will be used for academic purpose only . Thank you 1. Interested in which Flat Steel products? a). CR COILS b).CR SHEETS c).GP & GC d). OTHERS 2. Which aspect of product do you give most priority? a). PRICE b).PRODUCT RANGE c).QUALITY d).SUPPLY 3. Which companys flat Steel products you sell maximum annually? a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 4. Rank 1-4 the following brands in terms of product range (1 max variety and 4 min variety) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 5. Select the brands in terms of best price offered. a).TATA b).BHUSHAN STEEL c). JINDAL STEEL d).SAIL DATE - .. NAME - .. ADDRESS - ..
  70. 70. 70 6. Select the brands in terms of better Supply. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 7. Select the brands in terms of quality of flat Steel products. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 8. Rank 1-4 in terms of the after sale services and complaint handling. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 9. Select the brands in terms of overall satisfaction level. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 10. Rank 1-4 the following brand in terms of the product availability. (a most preferred and 4 least preferred) a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 11. Select the brands with whom you are dealing the most. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL
  71. 71. 71