Long Product 10 Final

8/4/2019 Long Product 10 Final

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PRESIDENCY BUSINESS SCHOOL, BANGALORE

A

PROJECT REPORT

ON

LONG PRODUCTS IN BHILAI STEEL PLANT

AND THEIR MARKETING AND SALES STRATEGY

(An Integrated unit of Steel Authority of India Ltd.)

Internship/Industrial Training ReportSubmitted For Partial Fulfillment of MBA

in Marketing Management

GUIDED BY: PREPARED BY:

Prof: BRAHM SHARMA ABHISHEK KUMAR

Director: Presidency business MBA, 3rd Sem

school Bangalore

1



Acknowledgement

I take this opportunity to thank our Internship/Industrial Training

Organization STEEL AUTHORITY OF INDIA LIMITED,

BHILAI for giving us an excellent platform to build our practical

knowledge pertaining to the Steel Industry.

I am very grateful to Prof. BRAHM SHARMA who guided us

throughout the course of training and was always our support and

inspiration.

Abhishek Kumar

MBA 3rd SEM

2



PREFACE

There’s a little bit of SAIL in everybody’s life….

“STEEL is the basic framework which has built nations, and it is on thisstrength that nation stand apart. This man-made metal has an extraordinaryquality of contributing to every aspect of life while it keeps the wheels of industry turning. It also lends ever-lasting quality to all kinds of structure and

infrastructure.”

‘SARDAR VALLABH BHAI PATEL’

Many students may have done work on this project in different ways/styles. I

have also tried to work on this project in a different way. It was for the first

time I got the opportunity to work in such a prestigious and well-known

organization and things which I have experienced in my training period are

going to help me through out my life time. I have worked on this project with

great enthusiasm and zeal. I have tried to cover almost all the things, which I

have experienced and learned during the training period. To run a giant

organization each and every department has to play its role effectively. In this

era of cut-throat competition there is no room for complacency. Steel is the

basic framework which has built nation, it contributes every aspect of life.

The main goal of my project is the “Long Products in BSP (Bhilai Steel

Plant) and Their Marketing and Sales Strategy” Bhilai. It would be my

great pleasure, if this project can help this company to achieve its goal higher.This project has been undertaken to study the procedures and practices

followed in Finance and Accounts department. The Finance & Accounts

Department of Bhilai Steel Plant is divided into various sections and each

section specializes in different activities. This report is prepared on the basis of

the extensive study carried out at Finance & Accounts Department of SAIL,

Bhilai Steel Plant.

3



TABLE OF CONTENTS

4

Chapter

No. CONTENTSPAGE

No.

CERTIFICATE 2

ACKNOWLEDGEMENT 3

PREFACE 4

1. INTRODUCTION OF SAIL 8

2. BRIEF HISTORY OF BSP 16

3.LONG PRODUCTS (RAIL AND STRUCTURAL

MILLS) OF BSP41

4. MARKETING AND SALES FLOW IN BSP 54

5. PRODUCTIONS OF LONG PRODUCTS IN BSP 65

6. SWOT ANALYSIS, LIMITATION 68

7. SUGGESTION 72

BIBLIOGRAPHY 74



5

glimpses of new india

“Bhilai and other great project in India

one being built with the hunger of the

country. The reason why we carry this

burden today is the hope that tomorrow we

may be aid of a burden...........”

- Pt. Jawaharlal Nehru

“............. As I travel in the country and

see such project that picture of new India

forms before me. I shall not be able to see

the whole of the new India but I am

begining to see the glimpse of it and even

that makes me happy ......”

- Pt. Jawaharlal Nehru



6



Chapter-1

Company Profile

Steel Authority of India Limited

(SAIL)

7



STEEL AUTHORITY OF INDIA LIMITED (SAIL) -

A MAHARATNA

INTRODUCTION

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. SAIL is also among the five Maharatnas of the country's Central Public

Sector Enterprises.

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. The company has the distinction of

being India’s second largest producer of iron ore and of having the country’s second largest

mines network. This gives SAIL a competitive edge in terms of

8

http://sail.co.in/pdf/maharatna.pdf






captive availability of iron ore, limestone, and dolomite which are inputs for steel making.

SAIL's wide range of long and flat steel products are much in demand in the domestic aswell as the international market. This vital responsibility is carried out by SAIL's own

Central Marketing Organisation (CMO) that transacts business through its network of 37

Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42

Consignment Agents and 27 Customer Contact Offices. CMO’s domestic marketing effort is

supplemented by its ever widening network of rural dealers who meet the demands of the

smallest customers in the remotest corners of the country. With the total number of

dealers over 2000 , SAIL's wide marketing spread ensures availability of quality steel in

virtually all the districts of the country.

SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited

unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five

integrated steel plants.

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.

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 Organization at Ranchi. Our

captive mines are under the control of the Raw Materials Division in Kolkata. The

Environment Management Division and Growth Division of SAIL operate from their

headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

9



10



11



VISION

To be a respected world Class Corporation and the leader in Indian steel

business in quality, productivity, profitability and customer satisfaction.

CREDO

We build lasting relationships with customers based on trust and mutual benefit.

We uphold highest ethical standards in conduct of our business.

We create and nurture a culture that supports flexibility, learning and is proactive to change.

We chart a challenging career for employees with opportunities for advancement and rewards.

We value the opportunity and responsibility to make a meaningful difference in people's lives.

12



MAJOR UNITS

INTEGRATED STEEL PLANTS

• Bhilai Steel Plant (BSP) in Chhattisgarh

• Durgapur Steel Plant (DSP) in West Bengal

• Rourkela Steel Plant (RSP) in Orissa

• Bokaro Steel Plant (BSL) in Jharkhand

• IISCO Steel Plant (ISP) in West Bengal

SPECIAL STEEL PLANTS

• Alloy Steels Plants (ASP) in West Bengal

• Salem Steel Plant (SSP) in Tamil Nadu

• Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

SUBSIDIARY

• Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

JOINT VENTURES

• NTPC SAIL Power Company Pvt. Limited (NSPCL):

• Bokaro Power Supply Company Pvt. Limited (BPSCL):

• Mjunction Services Limited:

• SAIL-Bansal Service Centre Limited:

• Bhilai JP Cement Limited:

• Bokaro JP Cement Limited:

• SAIL & MOIL Ferro Alloys (Pvt.) Limited :

• S & T Mining Company Pvt. Limited:

• International Coal Ventures Private Limited: SAIL SCI Shipping Pvt. Limited:

• SAIL RITES Bengal Wagon Industry Pvt. Limited:

• SAIL SCL Limited:

13

http://sail.co.in/pnu.php?tag=bhilai

http://sail.co.in/pnu.php?tag=durgapur

http://sail.co.in/pnu.php?tag=rourkela

http://sail.co.in/pnu.php?tag=bokaro

http://sail.co.in/pnu.php?tag=iisco

http://www.sail.co.in/pnu.php?tag=special

http://www.sail.co.in/pnu.php?tag=special_salem

http://www.sail.co.in/pnu.php?tag=special_visvesvaraya

http://www.sail.co.in/pnu.php?tag=subsidiaries

http://www.nspcl.co.in/

http://www.bpscl.in/

http://www.metaljunction.com/

http://icvl.in/

http://sail.co.in/pnu.php?tag=bhilai

http://sail.co.in/pnu.php?tag=durgapur

http://sail.co.in/pnu.php?tag=rourkela

http://sail.co.in/pnu.php?tag=bokaro

http://sail.co.in/pnu.php?tag=iisco

http://www.sail.co.in/pnu.php?tag=special

http://www.sail.co.in/pnu.php?tag=special_salem

http://www.sail.co.in/pnu.php?tag=special_visvesvaraya

http://www.sail.co.in/pnu.php?tag=subsidiaries

http://www.nspcl.co.in/

http://www.bpscl.in/

http://www.metaljunction.com/

http://icvl.in/



OWNERSHIP & MANAGEMENT

The government of India owns about 86% of SAIL’s equity & retains voting control of the

company. However ,SAIL by virtue of its ‘navratna’ status, enjoys significant operational &

financial autonomy.

BACKGROUND & HISTORY

A Rich heritage

SAIL traces its origin to the formative years of an emerging nation – India. After

independence the builders of modern India worked with a vision- to lay the infrastructure for

rapid industrialization of the country. The steel sector was to propel the economic growth.

Hindustan Steel Private Limited was set up on January 19, 1954. The president of India held

most of the shares of the company on behalf of the people of India.

Expanding horizon(1959-1973)

Hindustan steel (HSL) was initially designed to manage only one plant that was coming up

at Rourkela. For Bhilai & Durgapur Steel Plants, the preliminary work was dine by the Iron

& Steel Ministry. From April 1957, the supervision & control of those two steel plants were

also transferred to Hindustan Steel. The registered office was originally in New Delhi. It

moved to Calcutta in July 1956 & ultimately to Ranchi in Dec.1959. A new steel company,

Bokaro Steel Limited , was incorporated in Jan 1964 .

Holding company

The Ministry of Steel & Mines drafted a policy statement to evolve a new model for

managing industry, which had the concept of creating a holding company to manage inputs

& outputs under one umbrella was mooted. This led to the formation of Steel Authority of

India Ltd.

14



The company, was incorporated on Jan 24 , 1973 with an authorized capital of Rs.2000

crore, was made responsible for managing 5 integrated steel plants at Bhilai , Bokaro ,

Durgapur, Rourkela & Burnpur, the Alloy Steel Plant & the Salem Steel Plant. In 1978

SWAIL was restructured as an operating company. SAIL has immensely contributed to the

development of technical & managerial expertise. SAIL has triggered the secondary &

tertiary waves of economic growth by continuously providing the inputs for the consuming

industry.

SAIL Today

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.

Today, the accent in SAIL is to continuously adapt to the competitive business environment

and excel as a business organization, both within and outside India.

SAIL into the Future

Much has happened ever since SAIL’s Corporate Plan was announced in 2004. Investment

plans for the three specialty steel plants have been firmed up. Company has grown in size

with the amalgamation of IISCO (now renamed as IISCO Steel Plant). Production targets

have been revised from 19 million tones (MT) of steel to about 24 MT. Estimatedinvestments has increased from Rs 25,000 crore to around Rs 40,000 crore. And the time

period has been squeezed by two years, bringing the targeted year of completion of major

projects from 2010 to 2012.

15



SAIL’S Growth Plan 2010

Much has happened ever since SAIL’s Corporate Plan was announced in 2004. Investment

plans for the three specialty steel plants have been firmed up. Company has grown in size

with the amalgamation of IISCO (now renamed as IISCO Steel Plant). Production targets

have been revised from 19 million tones (MT) of steel to about 24 MT. Estimated

investments has increased from Rs 25,000 crore to around Rs 40,000 crore. And the time

period has been squeezed by two years, bringing the targeted year of completion of major

projects from 2012 to 2010.

16



Chapter-2

BRIEF HISTORY OF

BHILAI STEEL PLANT

(BSP)

17



BRIEF HISTORY

Bhilai Steel Plant (BSP) is a unit of the Steel Authority of India Limited (SAIL).

Bhilai Steel Plant is a pulsating giant in the glorious Industrial context of India. It came into

existence on 10th June 1957. When concreting of the foundation of 1st Blast Furnace, but its

original story started on 2nd February 1955 when the agreement with USSR Government

prove the possibility of dreams come true. BSP the functionary of SAIL is a symbol of Indo-

Soviet Techno economic collaboration, is one of the first three integrated steel plant set up

by the Government of India to build up a sound base for industrial growth of the country.

The agreement was signed on 2nd February, 1955 for 1 MT production capacity,

which rose to than 2.5 MT (1967), and then to 4MT in 1988. Production of Crude Steel Per

year.

On 4th February 1959, our the then President, Dr. Rajendra Prasad dedicated Bhilai to

the Nation, by inaugurating the Blast Furnace No. 1 for production. Since then Bhilai has

never looked back and has steadily grown and modernised day by day.

18



Bhilai has all along been giving special attention to the employment to the weaker

section. Bhilai has contributed significantly to meet the Iron & Steel requirements of the

country.

The steel plant has 10 coke ovens batteries and 7 Blast Furnace. The plant get his

requisition of raw materials and necessary resources by various adjoining centers. The Iron

ore is met from the captive mines of the plant which is situated at Dalli-Rajhara, the

mechanised iron ore mines, 100 kms. South from BSP. Lime stones also come from the

manual mines of Nandini about 25 kms. to the North of the plant. The need of Dolomite is

fulfilled from the quarries of Hirri in Bilaspur District.

Steel plant requires various forms of energy, viz electricity, fuel (solid, liquid & gaseous),

steam oxygen, compressed air, chilled water, air blast etc. At Bhilai the main source of

electricity in the C.S.E.B. grid from the NTPC Korba Station, about 250 Kms. away.

The steel Plant has have their own capacity of generating electricity of 36 MW and 74 MW

by power plant I & II respectively as the alternative source of power supply to meet

emergency loads in case of interruption(s).

The water source of the Tandula irrigation system from Sheonath River together with the

Gondli and Kharkhara water reservoirs, situated about 70 Km. South of the plant. In

addition, water works has started on Mahanadi project for meeting the increased requirement

of the plant after expansion..

There exist an extensive communication system at the works which include Auto Telephone

Exchange dispatched communication system, shop-floor loudspeaker system, gas and fire

signaling and blocking system of the plant rail transport facilities etc.

19



THE PEOPLE

Bhilai Steel Plant has consistently endeavored to be a model employer. It has striven to give

social benefits to its employees in a good measure. In its role as an employer, BSP has

performed to fulfil certain statutory obligations, such as contribution to the compulsory

Provident Fund. Beyond this BSP provides social benefits could be, and have been evaluated

in memory terms, the more important aspects is the attitude of the management towards its

employees, which is more important. Bhilai has maintained a friendly approach tinged with

human touch. This human element has been responsible, for creating and sustaining over

very many years, a cordial atmosphere between the management and the employees of the

Bhilai collectively. This has resulted in an environment of peaceful and healthy industrial

relations, leadings to, creating a peaceful atmosphere.

PROFILE

Nine time winner of Prime Minister’s Trophy for best Integrated Steel Plant in the country,

Bhilai Steel Plant (BSP) is India’s sole producer of Rails and Heavy steel plates and major

producer of Structural designs. With an annual production capacity of 3,153 MT of saleable

steel, the plant also specialises in other products such as Wire rods and Merchant products.

All saleable products of Bhilai Steel Plant are under the ISO umbrella as per BSP’s accredit

ion with ISO 9001: 2000 Quality Management System Standard. The Plant’s Plate Mill,

Dalli Mechanised Mines and Rail Mill have also received ISO : 14001 certification for their

Environment Management System.

20



PRODUCT-MIX TONNES/ANNUM

Semis 5,53,000

Rails & Heavy Structures 7,50,000Merchant Products

(Angles, Channels, Rounds & TMT bars)

5,00,000

Wire Rods (TMT), Plain & Ribbed) 4,00,000

Plates (up to 3600 mm wide) 9,50,000

Total Saleable Steel 31,53,000

MAJOR BSP PRODUCTS & THEIR END APPLICATION

Product End Use

Light

Structurals

Capital Goods, Fabrication, TLT, Construction Wagon/Coach

Building, Points & Crossing Forgings

Wire Rods Construction, Wire Drawing, Electrode Manufacturing.

Fastners

Rails Rail Lines

Heavy

Structurals

Fabrication, TLT, Construction, Wagons/ Coach Builders

Plates Construction, Fabrication, Capital Goods, Pipe Makers,

Boiler/Pressure Vessel, Sluice Gates, Heavy Machinery, Ship

Building

Coal

Chemicals

Road Making, Industrial Use, Fertilisers, etc

Coal

Chemicals

include

Ammonium Sulphate; Sulphuric Acid; Benzene; Toluene;

Xylene; Solvent Naphtha; Heavy oil ; Anthracene oil & pitch;

Sodium phenolate, Dephenolised Oil, etc.

21



FACILITIES AVAILABLE IN BHILAI STEEL PLANT

Sl.

No

Department Unit Capacity

1 Coke Oven 8 batteries of 65 ovens

and 4.3 m high

2 batteries of 67 ovens of

7.0 M high

3.3.

million

ton of BF

Coke

2 Sinter

plants

1) 3 Machine of 50 Sq M

hearth area2) 3 Machine of 75 sq M and 1

machine of 80 sq M hearth

area

3) 1 Machine of 320 sq M

hearth area

8.3 mt of

sinter

3 Blast

Furnace

3 Furnaces of 1033 Cum

3 Furnaces of 1719 Cum1 Furnaces of 2000 Cum

4.71 mt of

hot metal

4 SMS-1 4 Tims Hearth Furnaces 2.5 mt of

steel

5 SMS-2 3 BOF of 100/130 T

capacity

1.425 mt

of

6 Concast 3 Singal Strand & 1

Combi caster

1.425 mt

of

7 Blooming

&

Billet Mill

1150 mm Blooming Mill

1000/700/500 mm Cont. Billet

Mill

2.15 mt of

bloom

22



8 Rail &

Structural

Mill

950/800 2 high reverseing

Mill

.75 mt

of

product

9 M Mill 350 mm Cross Country

Mill

.5 mt of

product

10 Wire rod

Mill

4 strand continuous Mill .4 mt of

product

11 Plant Mill 3600 mm 4 high reversing

mill

0.95 mt of

product

Bhilai Steel Plant symbolises Indian Industrial Growth. Many laurels were bestowed on Bhilai Steel Plant. It has been honored five times with coveted

“Prime Minister’s Trophy” as best Integrated Steel Plant of the country.

Corporate Plan 2012

As the largest steel producer in the country, Steel Authority of India Limited (SAIL) hasalways believed in structured planning for achieving organizational

growth. This has also contributed significantly to national interests, given the steel sector’s

strong backward and forward linkages.

Changes in business environment call for periodical review of long-term plans. In the

backdrop of the upheavals faced by the global steel business in the recent past, the general

perception that the current phase of buoyancy in the market will last for a longer time-span,

and market growth projections of around 8%, SAIL felt it necessary to prepare a long-term

perspective plan for itself, superceding the last such plan drawn up in 1992. ‘Corporate Plan-

23



2012’, which has been drawn up as a consequence, provides a

blueprint for the company’s growth in the coming years, in tandem with a growing market.

By 2012, the consumption of steel in India is expected to reach around 55 to 60 million

tonnes (MT), nearly double the current level. Given its available infrastructure and skill

base, SAIL has the comparative advantage to supply additional volumes at the most

competitive cost to the nation. Besides, the Centre for Policy Research, in its November

2002 report dealing with perspectives up to 2025, indicates that the Construction, Cold-

reducing and Oil & Gas Transportation segments are poised for major growth in India. TMT

Bars & Rods, Structurals, HR/CR Coils, Plates and Pipes have been identified as the key

growth products for the domestic steel industry. For SAIL, which is an established andsignificant player in these product segments, the scenario holds a huge potential for growth.

Corporate Plan-2012 envisages enhancement in SAIL’s domestic market share from the

current level of around 26% (it is estimated that in 2003-04 steel consumption in the country

crossed 30 MT) to around 27% (of the projected 55-60 MT) through a mix of measures,

including stepped-up production, further intensification of market-orientation, and improved

cost and quality competitiveness, supported by rational investment and multiple managerial

interventions to optimize resource utilization. For realistic achievement, the plan has been

split into two stages – Stage-1 pertaining to the period up to 2006-07 and Stage -2 upto

2011-12.

BSP’s Modernization and Expansion plan aims at:

• Capacity Enhancement

• Phasing out of low yield and energy intensive units

24



• Broadening and value addition in product-mix

• Meeting the requirement of Indian Railways up to 1.5Mtpa of class A heavier

rails

•

Adoption of environmental-friendly technology

• Improvement in logistics

Some new units coming up are:

• Universal Rail Mill (1.2 MT)

• Universal Beam Mill (1.0 MT)

• Bar & Rod Mill (0.9 MT)

• Steel Melting Shop (SMS-III) of 4 MTPA

• Higher Capacity Blast Furnace of 4080 cum (BF-8)

• Coke Oven Battery No. 11 - 7 M tall

Existing Technology and Future Road Map

There have been rapid advancements in all areas of iron and steel technology in the

world. BSP has a mix of old and new technologies. Its 55% production is through outdated

twin hearth furnace route. Initially priority was given to modernization of other steel plants

and later due to resource crunch faced by SAIL; modernization of the BSP had to be

deferred.

A new Sinter Plant, secondary refining technology in steel making , long rail

technology for rolling and finishing and installation of optical fiber network (ATM)

throughout the plant are some of the new technologies embraced by the plant in recent

past. Now that resources for modernization have been committed to BSP under

Modernization and Expansion Plan, BSP is set to embrace new state of the art

25



technologies for improvement in productivity, yield and

quality and for reducing operational costs. Plans have been drawn where BSP is destined

to be a 7 MT hot metal plant by 2010-11.

MILESTONES IN BHILAI STEEL PLANT’S JOURNEY

Date

Event

February 2, 1955 Signing of Indo-Soviet Agreement.

May 6, 1956 Commencement of work at site

Jan. 31, 1959 Commissioning of Coke Oven Battery # 1

February 4, 1959 Blast Furnace 1 commissioned.

Jun. 4, 1959 Commissioning of Power & Blowing Station

Oct. 11, 1959 Commissioning of Steel Melting Shop O.H. Fce # 1

Nov. 12, 1959 Commissioning of Blooming Mill 1150 stand

Dec. 24, 1959 Commissioning of Billet Mill

Oct. 27, 1960 Commissioning of Rail & Structural Mill

Feb. 2, 1961 Commissioning of Merchant Mill

February 22, 1961 1 MT Plant completed.

Jul. 3, 1961 Commissioning of Sintering Plant # 1

Sep. 1, 1967 Commissioning of Wire Rod Mill

September 1, 1967. 2.5 MT expansion completed

March 17, 1976 Cumulative production of 25 MT Steel.

Aug. 1, 1979 Commissioning of Sintering Plant # 2

March 29, 1983 Hot Trial of 3600 mm Plate Mill.

Mar. 31, 1983 Commissioning of Plate Mill

Jul. 29, 1984 Commissioning of Converter # 1

26



July

1984

Hot Trial of Converter and Continuous

Casting.

Mar. 15, 1986 Commissioning of Continuous Casting Shop M/C # 1

September 12, 1986 First Twin Hearth commissioned.

August 30, 1987 Blast Furnace 7 blown in.

March 31, 1988 4 MT expansion completed.

Mar. 31, 1988 Commissioning of Coke Oven Battery # 9

Jan. 1, 1990 Commissioning of Second Twin Hearth

Jan. 17, 1991 Commissioning of VAD unit at SMS-2

Jun 29, 1992 Commissioning of Third Twin Hearth

November 5, 1996 CO Battery – 10 commissioned.

Jan 21, 1998 Commissioning of Fourth Twin Hearth

Dec 23, 1999 Commissioning of Ladle Furnace at SMS-2

Mar. 30, 2000 Commissioning of RH Degasser Unit at SMS-2

Dec. 12, 2001 Commissioning of Sintering Plant # 3

February 4, 2002 SP-3 Dedicated to the Nation.

June 27, 2004 Long Rail Project Commissioned.

May 2005 Cumulative Saleable Steel production surpasses 100 MT

mark.

March 2006 1st steel plant to surpass 5 MT annual Crude Steel

production.

February 4, 2008 Golden Jubilee Year of Commencement of Production

begins.

ISO CERTIFICATE FOR DIFFERENT BRANCH

27



January 1994: ISO: 9002 Certification for SMS II &

plate Mill.

Jan. 24, 1997: ISO: 9002 Certification for SMSI, Blooming & Billet Mill& Rail & Structural Mill.

July 25, 1997: ISO: 9002 Certification for Merchant Mill & Wire

Rod Mill.

July 23, 1998: ISO: 9002 Certification for recommendation of coke ovenand Blast furnace.

Plant Level Policies

QUALITY POLICY

To make Quality as the hallmark of every process and activity and enhance

customer satisfaction through Innovation, Product Differentiation and Effective

Quality Management System.

HR POLICY

28



• To enhance employee productivity attuned to

business goals of Bhilai Steel Plant.

• To promote a work culture which encourages the employees to contribute

their best.

• To strive for making a meaningful difference in the quality of life of

employees.

• To develop proactive and customer focused HR team engaged in continual

innovation and change management.

ENVIRONMENTAL POLICY (WORKS AREA)

Bhilai Steel Plant (BSP), Steel Authority of India Limited, is an integrated

steel plant with an annual production capacity of 4.0 million tones of steel and

progressing towards 7MT, specializing in production of rails, heavy

structurals, merchant products, wire rods and plates. Bhilai Steel Plant

collective re-affirms its commitment to protect environment and shall strive to:

• Introduce sound environmental management practices for minimizing

pollution and its impact on air, water, land, flora, fauna and human beings.

• Conduct operations in an environmentally responsible manner for

complying with legislation and regulations related to its environmental aspects.

• Conserve and optimally utilize raw materials, energy, water and other

resources.

• Minimize waste generation and promote its recovery, recycling and reuse.

• Achieve continual improvement in environmental performance by setting

and reviewing the objectives and targets periodically.

29



• Enhance environmental awareness amongst

employees and interested parties.

Communicate Environmental Policy to the persons working for or on behalf of

the organization and make it available to public on demand.

MAINTENANCE POLICY

• Maintenance of equipment for maximum availability and reliability.

Upkeep of other assets for infrastructural support and strength.

• Monitoring of equipment, health and vital parameters in a systematic /

scientific way and to devise appropriate maintenance strategy for each

equipment.

• To control / reduce cost of maintenance through innovation, design out,

revamping and reclaimation.

• To fully utilize and enhance the in-house facilities for repair and generation

of spares.

• Modernize and induct state-of-art technology to meet the present and future

needs of plant equipment.

SOCIAL ACCOUNTABILITY POLICY

BSP being a responsible corporate citizen shall continuously strive to enhance

value for its stakeholders by promoting a safe, healthy and socially accountable

work culture by :

• Adhering to Social Accountability Management System based on

internationally recognized SA:8000 Standards.

30



• Positively influencing its Suppliers & Contractors in

adhering to the SA Management System requirements Complying with all

applicable laws.

OCCUPATIONAL HEALTH & SAFETY POLICY

BSP is committed to :

• Create work site free from Occupational Health & Safety hazards for its

employees.

• The Safety of the people associated with it, those living in the neighborhood

of its plants, mines & units,

• Pursue the safety efforts by adhering to Occupational Health & Safety

Management system based on the requirements of internationally

recognized OHSAS: 18001 Standard and its periodic review at Works.

• Demand accountability for safety performance & provide the resource to

make safety programme work,

• Involve all employees for continual improvement in OH&S,

Comply with the applicable legislation & other requirements of OH&S.

ENVIRONMENTAL POLICY (TOWNSHIP)

Town Services Department of Bhilai Steel Plant caters to infrastructure

facilities and civic amenities for the residents of Bhilai Township, covering an

area of about 40 square KM. TSD in their operation and activities, commit to

demonstrate environmental leadership by :

31



• Implementing environmentally sound practices

that minimize/prevent air, water and land pollution.

• Ensuring compliance with all applicable legal and other requirements

related to its environmental aspects.

• Promoting continual improvement in environmental performances by

setting and reviewing objectives and targets periodically.

• Minimising waste generation and implementing sound waste disposal

practices.

• Conserving and optimally utilizing water, energy and other resources.

• Promoting green belt development and enhancing green cover of township.

• Enhancing environmental awareness amongst citizens & interested parties.

• Communicating Environmental Policy to all the persons working for or on

behalf of the Town Service Department and making it available to public

on demand.

Energy Management Policy

• Introduce sound Energy Management practices.

• Operate in an energy efficient manner for complying with legislation and

regulation. Conserve and optimally utilise raw materials, petroleum fuels,

steam, power, compressed air, water and other resources.

• Minimise Energy losses, promote usages of by-product fuels and waste

energy recovery.

32



• Achieve continual improvement in energy

performance by settling and reviewing the objectives and targets

periodically.

Energy conscious employees.

THE BEST INTEGRATED STEEL PLANT

The prestigious prime minister’s trophy for the best integrated

steel plant in India for the year 1992-93, 1993-94, 1995-96,

1996-97, 1997-98, 2003-04 and 2004-05 2005-06, 2006-07

had been awarded to Bhilai Steel Plant of Steel Authority of

India Ltd.

33



PRODUCTION OF BSP PRODUCTS AS PER THEIR

CURRENT AND PROPOSED PLAN

1. Iron Ore Production

Unit: million tonnes

34



2. Hot Metal Production


35



3. Crude Steel Production


36



4. Finished Steel Production


37



5. Coke Rate in Blast Furnaces

38



6. Specific Energy Consumption

39



Chapter 2

ORGANIZATION STRUCTURE

40



41



Chapter-3

LONG PRODUCT IN BSP

42



LONG PRODUCTS

(RAIL AND STRUCTURAL MILLS) OF BSP

Rail and Structural Mill of Bhilai Steel Plant, SAIL is the world’s largest

producer of rails with an installed capacity to produce 500 000 tons of rails and

250 000 tons of structurals. Bhilai is also the sole supplier of the country'slongest rail tracks of 260 metres. The length of rails produced so far since

inception is sufficient to encircle the globe more than 8 times. The major

profiles produced in the mill are:

43



Rails

Bhilai Steel Plant

ProfileSectional Wt

Kg/MStandard

Length(Metres)Mill

R – 45 44.61 13 Rail & Structural Mill, Bhilai

R – 52 51.89 13, 26, 130, 260 Rail & Structural Mill, Bhilai

R – 60 60.34 13, 26, 130, 260 Rail & Structural Mill, Bhilai

Product nomenclature for 13 m & 26 m is “RAIL” and for 130 m & 260 m is “LONG RAIL PANEL”.

Specification

Specifications GradeApplication(Speed of Train

Km/Hr)

A) Prime QualityRails

IRS-T-12/2009 880 >50

Head Hardened

(HH)1080 >50

Chromium (Cr) 1080 >50

44



B) Special Rail Steel

Niobium (NB) 880 >50

Vanidium ( VN) 880 >50

C) Corrosion Resistant Rail Steel

Copper-Molybdenum (CM) 880 >50

Nickel, Chromium, Copper (NC) 880 >50

D) Industrial use

IRS-T-12-IU 880 <50

IU 880 <50

1. RAILS

a. IRS 52 Kg/m

b. UIC 60

c. Thick Web Asymmetric Rail Zu1-60

2. HEAVY BEAMS

a. 600 * 210 * 12mm

b. 500 * 180 * 10.2 mm

c. 450 * 150 * 9.4 mm

d. 400 * 140 * 8.9 mm

e. 350 * 140 * 7.5 mm

f. 250 * 125 * 6.9 mm

3. CHANNELS

a. 400 * 100 * 8.8 mm

b. 300 * 90 * 7.6 mm

c. 250 * 82 * 7.6 mm

45



4. ANGLES

a. 200 * 200 * 20/16 mm

b. 150 * 150 * 20/16 mm

5. CRANE RAILS

a. CR 120

b. CR 100

c. CR 80

6. CROSSING SLEEPERS

The steel grades produced in these products are

• IRS T-12/ 96 Grade 880 (90 UTS)

• Cu Mo corrosion resistant rails

• High Conductivity Metro Rails

• High YS/UTS Vanadium Micro-alloyed Rails

• Copper-Chromium alloyed High strength Rails

Heavy Structural’s:

• IS 2062 Grade A & B

• SAILMA 300,350,410(with & without Hi)

STEEL INPUTS OF RSM: Rail steel is made in BOF converters at

SMS 2 and processed through RH degasser and ladle furnace etc. The steel

thus obtained is very clean and has hydrogen in liquid steel less than 1.6 ppm a

world benchmark.

46



It is continuously cast into blooms, which are

flame cut to specified length & weight, and sent to Rail and Structural Mill for

rolling. Steel for structural is made at SMS 1 in twin hearth furnaces and is cast

into ingots, which are rolled into blooms at the blooming mill.

ROLLING MILL AREA :

It constitutes of the following areas:

1. Reheating furnaces

2. Roughing Stand

3. Intermediate Stands

4. Finishing Stands

5. Hot saws, Stamping Machine & Cooling beds

1. Reheating Furnaces : Blooms from BBM route and continuous casting

route are supplied to charging roll table of Reheating Furnaces, through 3 nos.

of Bloom Feeders. The blooms are the reheated in three reheating furnaces of

75 T / hr capacity each. The furnace is divided into three zones: the preheating

zone, the heating zone and the soaking zone. Bloom enters the preheating zone

and in the process of passing through heating zone attains desired temperature.

In soaking zone (which has solid hearth) the temperature of bloom is equalized

throughout its length & cross section.

2. Roughing Stand : The blooms after re-heating are rolled in the 950 mmroughing stand. This is a 2 high reversing stand and the reduction to the bar is

given in forward as well as backward directions. The roll gap for each pass is

47



adjusted by top roll screw down and the blooms

guided into the passes by manipulators.

The rolling schemes for different profiles employ different number of passes

and different pass gaps. The maximum reduction to the bloom is given in this

stand and the rough shape of profile is made.

3. Intermediate Stands The 800 mm intermediate mill is the only one of its

kind in India in that, that it is a 3 high non- reversing mill. The mill has two 3

high stands coupled together and driven by a single drive motor. The scheme

employs 3 passes in each stand. Lifting tables lift the rolling bar up to the

upper passes for reversal of direction.

4. Finishing Stand The 2 high finishing stand provides the final shape and

dimensional accuracy to the rolled profile. Rails are branded with month, year,

profile, grade of steel and manufacturer’s name here. The working rolls are

mounted on anti friction bearings and have hydraulic roll balancing and a

closed top housing to minimize mill spring and roll gap variations

5. Hot Saw, Stamping Machine and Cooling Bed : Rails and structurals after

rolling are cut to specific lengths by rotary hot saws with tempered tips. Rails

are cut in 13.5, 27,65 and 78 metre lengths and structurals to ordered lengths.

The end crops, samples for destructive tests and for profile measurement are

also cut here. Rails & Structurals after cutting are stamped by a hot stamping

machine. The stamping data supplied by the bloom tracking system consisting

of the cast number of the bloom, the strand number of the caster which

48



produced the bloom, CC/CO is stamped on the web of

the rail. Structurals are stamped with the cast number at the web.

IV) RAIL FINISHING AREA : There are two rail finishing areas one for

finishing of 13 & 26 m rails and one for finishing long rails. The details of both

are elaborated below:

A. 13/26 M finishing area constitutes of the following areas:

1. Rail straightening

2. Online NDT

3. Rail finishing and inspection

1. Rail Straightening Rails after cooling are straightened in a bi-planer

straightening machine, which consists of six horizontal rollers and six vertical

rollers. The semi automatic machine has digital thyristor converters supplying

to the drive motors of the rolls.

2. Online NDT :The rails after straightening are tested by on-line eddy current

tester (ECT) for surface defects and by ultrasonic testing machine (UTM) for

internal defects. The ECT uses eddy current loops generated on the rail surface

by probe windings to check the surface finish. Any defect on the surface causes

a distortion of the eddy current loops which is sensed by the detection probes.

The ultrasonic testing machine has piezo-electric probes mounted on a housing

to check all the areas of the rail profile. The ultrasonic pulses produced by the

probe travel through the steel and get reflected at the end of the path.

49



Any inside defect causes a pre-mature reflection and

an extra echo is generated and detected. The defects sensed by the testing

systems are paint marked with color codes in the region of the fault. The

defective rails are rejected.

3. Rail Finishing & Inspection : Rails are sent to Indian Railways in 13 metre

and 26 metre lengths. The rails after online testing are processed in six

finishing groups where the ends are milled and cut to length by carbide tipped

milling and cutting machines. This ensures fine end surface finish and square-

ness.

Each rail produced at RSM is inspected by RITES - the inspecting agency

for Indian Railways before classification and shipping. Rails are visually

inspected for surface defects, measured by gauges for dimensional accuracy,

checked with straight edges and feeler gauges for end straightness. Rails are

classified as accepted, rejected or marked for end straightening or cutting.

Accepted rails are color coded as per length, stamped on the end with the seal

of the inspecting agency and sent to shipping section. In case of defects the

rails are either cut or refinished to salvage the rails. Straightening is done in 4

directional hydraulic presses and end cutting at carbide saws in the re-finishing

area

B. LONG RAIL FINISHING AREA

The Long rail complex of Bhilai Steel Plant has the most modern rail

processing equipment from all over the world. The rail straightening machine

50



from Germany, the ultrasonic and eddy current rail testing systems from

Canada, the laser based straightness measurement and 4 directional hydraulic

press from Germany, precision cut to length carbide saws from Austria and the

computer controlled automation and rail mapping systems designed by VAI,

Austria are the best in the world.

Why long Rails : Concerns of safety and economy of operations have

necessitated railroads the world over to switch to long rails with very few weld

joints. The longer the length of the rail, the lesser the number of welds per

kilometer length. The commuter enjoys a safe and bump-less ride and the

railroad company saves on track life and maintenance.

Bhilai Steel Plant has established long rail production facilities at a cost of Rs

400 crore to cater to the demand for long rails from Indian Railways. Long rail

complex produces rails upto 80 meter length and welded rail panels of upto

260 meter lengths, for ready use at site.

Milestones in supply of Long rail

o Inauguration of long Rail complex-27.6.04

o Dispatch of 65 m rail-20.9.04




51



Long Rail finishing complex constitutes of the following areas:

1. Precambering and walking beam cooling bed

2. Rail straightening

3. Online NDT

4. End finishing/ straightening and inspection

5. Welding

6. Rail Handling

1. Precambering and walking beam cooling bed : The process flow line

starts with the insulated roll tables taking the hot rails to the cooling bed. Rail

has asymmetrical shape. Maximum mass is at head and the foot is thin. When

the hot rail cools down the foot gets cold very fast and the head cools very

slowly. During cooling the head shrinks and the foot gets elongated, & the rail

acquires a parabolic camber after cooling. In longer rails this camber is very

large. So rails are given a pre-camber in opposite direction while they are hot

so that they become almost straight after cooling.

2. Rail Straightening : To meet straightness requirement, the rails are

straightened by roller straightening machine wherein the rails are passed

through series of rollers This bi-planar straightening machine has 9 horizontal

rollers and 8 vertical rollers. These horizontal and vertical roller machines

collectively are capable of straightening in vertical as well as horizontal plane.The machine with off-line straightening model enables development of

straightening parameters and straightening models.

52



3. Online NDT : Non-destructive test carried out for

long rail comprise of

Ultrasonic, Eddy Current and Laser Geometry test. Ultrasonic test is carried

out to detect any sub-surface anomalies. Eddy Current test is used to detect

surface defects. An integrated paint marking station indicates the position of

the defect found. The Laser Geometry test measures the straightness and top

flatness of the rail.. This system comprises of a laser beam incident on the

railhead and a CCD as a receiver capable of highly accurate displacement

measurement, and generation of the test results. The top flatness of the rail is

measured using thru beam laser sensor.

4. End Cutting/ Straightening & Inspection : Rails are cut to length by

carbide saws which cut downwards from head, give a good finish without

inducing any out of square defect. They are automated to cut rails in any

length. The rails are then visually inspected and tested for dimensions with

gauges at two online visual stations equipped with mirror inspection. If

required the rails are sent to hydraulic presses to ensure 100 percent

straightness of the rail ends in all directions.

5. Welding :Rails of 65 m are welded to 130 or 260 m The anti twist clamps

and automatic alignment ensure perfect profile matching of rail ends while

welding. The distributed clamping ensures highly rigid and slippage free

clamping of rails while welding. The profile-grinding machine grinds both the

running faces and top of the rail with a very high precision and finish.

Ultrasonic testing ensures flawless joints.

6. Rail Handling : Handling and loading of rails upto quarter a kilometer

requires specialized equipment. The rails are handled by an automatic

computer controlled telphers. The rails are loaded in special rakes of flatbottom

wagons called EUR’s(End unloading rakes).

53



PROCESS FLOW OF RAIL & STRUCTURAL MILL

54



Chapter-3

MARKETING AND SALES FLOW

IN BSP

55



Marketing Department of Bhilai Steel Plant is known as

marketing and strategic planning department. It deals with the activities of

marketing of prime products and secondary products etc.

The marketing is done in two ways.

1. Marketing of prime product where activities are co-coordinated by

central marketing organization.

2. Marketing of secondary product and coal chemicals are done directly

by sale of product by SAIL (BSP) marketing of these products are

conducted by various sections by marketing department of Bhilai

Steel Plant through e-Auction process.

Marketing Department of SAIL (BSP) is being divided under various sections

as:-

• Market Development and strategic planning

• Secondary product

• Coal chemicals

• Merchant mill

• Wire rod mill

• Rail and structural mill

• Billet and bloom mill

• Plate mill

• Export.

56



Functions of Marketing Department

• To monitor the orders issued by CMO so that these orders fulfilled in

time.

• Coordinate with CMO to get orders for an underutilized mill.

• To sell the entire secondary product directly i.e. directly by SAIL (BSP).

Works Visit note on the functioning of

Marketing & Strategic Planning Department

Of Bhilai Steel Plant

Marketing & Strategic planning department of BSP acts as an interface

between Plant & CMO for Co-coordinating marketing activities with CMO for

sale of prime products. Apart from this, it also carries out direct sale of

secondary products and by-products generated in plant. The activity frame

work is given below in Fig-1

57



FLOW CHART OF MARKETING AND SALES

DEPARTMENT

58

Co-ordination

with CMO/ITD

for sale of Prime

Products

Direct Sale of

Secondary/by

products

Key Activities of

M & SP deptt.

Sales

Plannin

Order

M mt

KeyA/c

Compl-

aint

Handling

Secondar

y I & SCoal

Chemical,

Granu.slag,

Misc items

Fig-1



I) Prime Product Area: The various activities in prime product sale namely

finalizing monthly sales plan , order management, monitoring and review as

well as the CSI review and complaint handling are co-ordinate through M &

SP department as detailed below.

1. (a) Making Sales Plan: Although annual sales plan is made in the

beginning of the year based on the demand projection by MRG/CMO, month-

wise sales plan is worked out based on the actual demand indication from

CMO. The plan is finalized in the sales co-ordination meeting jointly with

CMO representatives from different regions. The plan takes into account the

product-wise, profile-wise; quality-wise supply capability of plant and the most

productive/profitable product mix in demand is finalized.

1. (b) Order Management: It is one of the structured and core processes

with logistics managed by Dispatch co-ordination/ Traffic department. IT is

the key enabler of the process. Customers’ requirements are clearly understood,

compiled and documented and compared with Technical Delivery Conditions

(TDC). Based on the TDC, the orders are classified as:

Standard orders: Standard orders are executed as per the laid out quality plan

from steel making to dispatch.

Standard order with special conditions: The accepted special conditions are

mentioned in the steel order and rolling program so that they are communicated

down the line and the customer requirements are taken care of.

Special / Customised orders: In case of special orders, a separate protocol is

made which is the quality plan for that order from steel making to dispatch.

59



All export orders are treated as special orders. Protocol and TDC

together ensure delivery of customised products.

In case of flat products, each order is examined before its acceptance by

a cross-functional team comprising of executives from Plate Mill, SMS-II,

RCL, PPC and M&SP departments. Plate enquiry committee examines the

feasibility of acceptance of orders in terms of size, grade of steel, TDC and

other requirements of the customers and confirms the delivery schedule. The

process of “Order Processing and Delivery” of BSP products is given in Fig -2.

Order Processing and Delivery

60

Fig-2

Custo

mer Branch

SR

M

Market

ing

PPC

Dispatc

h

Shipping

Bay

Inspection,

Testing

Rolling

(Shop)

Heatmaking

/production

Plannin

DocumentsOrder processing cycle



As regards long products, which are primarily

standard products, campaign rolling is done for various profiles and qualities as

per demand projection by CMO in the sales co-ordination meeting. Orders are

provided by CMO as per the commitment against which supply is made to the

desired destinations.

Order Review Mechanism

Review of status of availability of orders and planning for heat making is

done on daily basis. For plates, it is done by PPC (Programming) in

consultation with Plate Mill, SMS-2 & RCL. For long products, planning of

heat making and review of daily performance is done by head of BBM in

association with representatives from finishing mills, SMS-1, RCL and PPC.

Timely delivery in line with the customer’s requirement/commitment is

planned in the daily dispatch co-ordination meeting in which SRM is present

from CMO for deciding the destinations for rake dispatches. Review of plate

order fulfillment (from heat making stage to dispatch of material) on weekly

basis is done by head of Plate mill along with representatives from all

concerned agencies. Quality related issues and fulfillment of special steel

orders/ committed deliveries are reviewed by ED (Works) on weekly basis. For

plate orders which cannot be serviced due to any constraint, revised delivery

schedule is worked out and communicated to the customer through SRM.

(c) Key Account Management:

BSP is continuously striving to improve customer sales and service

relationship through creativity and innovations. Categorising customers into

61



National Key Accounts and Branch Key

Accounts and making individual Key Account Manager accountable for each

Key Account customer is one of the major initiatives taken in this direction.

The system has been further strengthened by identifying Plant Information

Coordinator (PIC) and Plant Account Coordinator (PAC) from senior level

executives of BSP. This system provides the customer a single window

support through KAM and a strong responsive system at the plant to take care

of his needs. Regular follow-up on sales and services is done by the Key

Account Managers and

feedback is sent to the plant to take corrective action, wherever required.

If felt necessary, meeting of plant experts are also arranged with customers to

solve their problems. The Regional Managers (RMs) of CMO posted in all 4

regions also keep a close watch on product and services provided to the

customers of their respective region. They personally interact with the

customers.

Plant leadership is in regular touch with RMs and EDs in CMO and

appropriate actions are taken by Plant / CMO to enhance customer satisfaction

by organizing customer meets in the different regions with all important/key

customers for improvement action at plant.

The various parameters on which customer satisfaction index (CSI) is

received and monitoring and reviews are made at plant level on monthly basis

includes:

62



1) Quality of product- Physical & Chemical etc.

2) Delivery – Lead time, adherence to delivery schedule, information on

order status.

3) Service- Performance of cross functional teams

In the CSI measurement process, the rating given by customer based on his perception on the product and service received. The weightage given for

different parameters is decided by the customer himself depending on the

importance of the parameter for him.

The CSI is reviewed at plant level every month by PAC and PIC every month

along with concerned shop personel and SRM and by GM (M&SP) on

quarterly basis. Suitable corrective actions are formulated and implemented to

enhance the customer satisfaction level .

63



A flowchart of CSI monitoring and review process is given in Fig-3.

Fig-3

1. (d) Complaint Reddressal Mechanism: Apart from taking regular

feedback from the customers on our products and service, there is also a well

documented and structured customer complaint handling procedure which is

given below. The procedure for taking corrective / preventive action is audited

for checking its effectiveness regularly by Internal Quality Auditors during

scheduled Internal Quality Audits as well as by the auditors from M/s LRQA,

our certifying agency for ISO: 9001 QMS, during surveillance audits. The

complaint data are systematically compiled, analysed and reported

64

SRM

CSI Improvement

Process

Key Customer

SRM

Reviews

CSI Reports

Corrective Actions

PIC/PAC (BSP)

Key a/c Mgr

SRM

Check for Improvement



Management Review meeting held quarterly. This is a closed loopsystem where the customer is given the feedback on the corrective action taken

at plant to avoid recurrence of the problem.

In reaching out to customer, Central Marketing Organisation (CMO) is

our partner for marketing of our products.

• The network of CMO includes Branch Sales Offices, Warehouses and

Customer contact offices. This network is supported by a strong network of

SAIL dealers to ensure Bhilai steel reaches even in the remotest areas of

our country.

• Our Export market is catered to by International trade Division

M & SP department facilitates in effective implementation of various

strategies adopted by BSP in enhancing customer satisfaction that are enlisted

below.

Market segmentation Internal customer satisfaction New product development Quality Improvement Customisation. Customer service through IT Maximising Value added products. Partnership with customers Key Account Management

65



Chapter-5

PRODUCTIONS OF LONG

PRODUCTS IN BSP

66



Main items

The capacity utilization for Hot Metal, Crude Steel and Saleable Steel

production was 121.4 %, 135.8% and 144.8% respectively.

Unit: Million T

Item 2009-10 2010-11% Rated

Capacity

Hot Metal 5.37 5.71 121.4 #Crude Steel 5.11 5.33 135.8

Saleable

Steel

4.37 4.57 144.8

Record production of 5.71 million tonnes of Hot Metal, exceeding previous

best of 5.39 million tonnes in 2008-09 and registering a growth of 6.3% over

the previous year.

4816.8

5267.75387.2

5370.0

5707.9

4500

4800

5100

5400

5700

2006-07 2007-08 2008-09 2009-10 2010-11

Production of Hot Metal ('000 T)

67



Record production of 5.33 million tonnes of Total Crude Steel, surpassing the

previous best of 5.18 million tonnes in 2008-09 and registering a growth of 4.3

% over the previous year.

4798.5

5054.65183.5

5109.1

5328.6

4000

4350

4700

5050

5400

2006-07 2007-08 2008-09 2009-10 2010-11

Production of Total Crude Steel ('000 T)

Record production of 4.57 MT of Saleable Steel, surpassing the previous best

of 4.49 T achieved in ‘08-09 and registering a growth of 4.5 % over previousyear.

68

4222.9

4428.9 4491.64370.4

4565.5

3600

3850

4100

4350

4600

2006-07 2007-08 2008-09 2009-10 2010-11

Production of Saleable Steel ('000 T



Chapter-4

SWOT ANALYSIS OF BSP

69



SWOT ANALYSIS OF BSP

Steel Authority of India Limited (SAIL) - SWOT Analysis company profile is

the essential source for top-level company data and information. Steel

Authority of India Limited (SAIL) - SWOT Analysis examines the company’s

key business structure and operations, history and products, and provides

summary analysis of its key revenue lines and strategy.

Steel Authority of India (SAIL) is engaged in the business of manufacturing

and marketing steel and its allied products. It is a fully integrated iron and steel

maker, producing both basic and special steel products for construction,

engineering, power, railway, automotive, and defense industries. The company

primarily operates in India. SAIL is headquartered in New Delhi, India and

employed about 116,950 people as of March 2010. The company recordedrevenues (gross sales) of INR439,973.1 million ($9,287.8 million) during the

financial year ended March 2010 (FY2010), a decrease of 9.9% compared to

FY2009. The operating profit of the company was INR59,072.1 million

($1,247 million) during FY2010, an increase of 21.8% over FY2009.

70



The net profit was INR68,461.2 million ($1,445.2 million) in FY2010, an

increase of 9.6% over FY2009.

Scope of the Report

• Provides all the crucial information on Steel Authority of India Limited

(SAIL) required for business and competitor intelligence needs

• Contains a study of the major internal and external factors affecting Steel

Authority of India Limited (SAIL) in the form of a SWOT analysis as

well as a breakdown and examination of leading product revenue

streams of Steel Authority of India Limited (SAIL)

• Data is supplemented with details on Steel Authority of India Limited

(SAIL) history, key executives, business description, locations and

subsidiaries as well as a list of products and services and the latest

available statement from Steel Authority of India Limited (SAIL)

Reasons to Purchase

• Support sales activities by understanding your customers’ businesses

better

• Qualify prospective partners and suppliers

•

Keep fully up to date on your competitors’ business structure, strategyand prospects

• Obtain the most up to date company information available

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LIMITATIONS IN BSP

While studying a public sector there are many problem that the vocational trainees

has to Face e.g. those of obtaining permission to collect information etc. BSP is

very big organization it is not possible to cover & to go through all marketing

aspects of plant within a short span of 4 weeks.

The study deals on the limited size of the respondent which is near to BSP or

visiting to plant during my project.

As major customers of the plant scrap are small industries it was very difficult to

get feedback from that customers.

Time bound is there as in the organization like BSP. It is not possible to know

every working style of marketing department.

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Chapter-5

SUGGESTIONS

73



SUGGESTION

1) Contract with other foreign companies.

2) Conc. on small countries those who have less Iron &Steel companies.

3) Diversification on other Ind.

4) Conc. On branding equity.

5) Make promotion strong on International market.

6) Reduced raw material expenses

7) Conc. on proper target markets.

8) Do marketing with brochures, catalogues n mail orders.

9) Use furnishing.

10 Reduced or do less promotion wherever they established market.

11) Concentrate on that places with services n quality delivery.12) Give some credit facilities to their existing customer & credit

facilities to those customers who have govt. authority.

13) Acquire some small industrial units in other countries n give their names

this will help in branding.

14) If they want to promote then take a best comp. on that country those

have strong brand value.

15) If any company’s wants to take entry in India give their brand names,

this will help to inc. market share.

74



BIBILOGRAPHY

• PHILIP KOTLER – MARKETING MANAGEMENT

• WILLIAM J. STANTON- MARKETING MANAGEMENT

• Getway, BSP

• www.sail.co.in

• www.sailbhilaisteel.com,

• www.sail.com

http://www.sailbhilaisteel.com/

http://www.sail.com/

http://www.sailbhilaisteel.com/

http://www.sail.com/

Long Product 10 Final

Documents

Transcript of Long Product 10 Final