“REGULATION OF MARKETING ACTIVITIES THROUGH E-AUCTION IN BOKARO STEEL

PLANT”

BY : -

SANJAY KUMAR

SANJEEV BANKIRA

ROLL No.:-PGIB/04/39

STEEL AUTHORITY OF INDIA LIMITED

BOKARO STEEL PLANTA PROJECT REPORT ON

There’s A Little Bit of Sail In Everybody's Life

Largest company in India. Ranked 13th largest company in the world in

crude steel production. 2nd largest steel producing company in India.

NET SALES TURNOVER Rs 40,551 Crores.

PRODUCTION OF SALEABLE STEEL 11.714 million Metric Tonns.

SAIL AT PRESENT……..

1) PRIMARY PRODUCTS HOT ROLLED (HR) – COIL. HOT ROLLED (HR) – SHEET. HOT ROLLED (HR) – PLATE. GALVANISED PLANE (GP) - SHEET. GALVANISED PLANE (GP) – COIL.

2) SECONDARY PRODUCTS Def. CR-SHEET. Def. HR-COIL. COBBLE PLATE. Def. HR-PLATE. CR-BABY COIL. Def. HR-SHEET. Def. GP-SHEET.

BSL PRODUCT MIX

3) BY - PRODUCTS Benzene, Toulene. Anthracene. Naphthalene. Still Bottom Oil. Hot pressed Naphthalene. Ammonium Sulphate. Ferrous Sulphate.

Cont'd……

Process flow of E-Auction……

Advertisement of data/type of material

On SAIL website/newspaper

Posting of Lot details to be

Auctioned on SAIL/MJ website Pre auction

Inspection of Lots

By customers

INTRODUCTION TO TOPIC

Auction conducted on

metaljunction.com

Report of auction by During auction

Metal junction to BSL

DURING AUCTION……….

Reserve Price Opening

Committee Meeting

Recommendation and

Approval for Sale Post Auction

Issue of Offer

POST AUCTION…….

OBJECTIVE SETTING…

1) To find out the reasons for problem of E-Auction in Bokaro Steel Plant.

2) To know how E-Auction helping Bokaro Steel Plant to improve its selling mechanism & increasing its sales revenue.

3) To analyze the perception of potential customers of BSL towards E-Auction.

RESEARCH METHODOLOGY

1) Questionnaire. 2) Survey Method.

SAMPLE SIZE : - 15 SAMPLING UNIT : - BSL Customers.

SAMPLING METHOD : - Non Random Sampling (Quota Sampling)

METHODOLOGY ADOPTED

1) PRIMARY DATA COLLECTION

Primary data is collected from 15 major potential customers of Bokaro Steel Plant through questionnaire.

2) SECONDARY DATA COLLECTION

Secondary data is mainly collected from various concerned department heads through survey(personal interviews).

DATA COLLECTION………….

PRIMARY DATA ANALYSIS…….SOURCE : - 15 major potential customers of BSL.AREAS OF PROBLEM WITH RESPECT TO E-AUCTION

DATA ANALYSIS AND INTERPRETATION

PROBLEMS RESPONDED BY

Material cost payment clearing time is too short.

10

Delayed information about the new auction items.

7

No material lifting facility. 9

Rate of interest for extended payment clearing period is very high.

8

PROBLEMS /INCONVENIENCE RESPONDED BY

Complex documentation. 5

No in time stock maintenance.

4

Lack of awareness/knowledge about e-auction.

1

Stock damage problem. 2

CONT'D…………….

The above table shows that these are the major problems or inconvenience faced by the customers with respect to e-auction at Bokaro Steel Plant. Out of all the 15 major customers I interviewed these are the responses I got from them about the problem.

  Majority of the customers (10) says that the material cost

payment clearing time is too short. Some have problem regarding the lack of their material lifting facility from the material site. Some customers say that the rate of interest for extended payment period is very high i.e. 24%, some said that they get delayed information about the new auctioned items and so on.

   

INTERPRETATION………….

PROBLEMS/INCONVENIENCES.

NO. OF CUSTOMERS

%DISSATISFACTION LEVEL

AVG DISSATISFACTION% LEVEL.

Dissatisfied

satisfied

Material cost payment clearing period.

10 5 67 % 34 %

Material lifting facility.

9 6 60 % 30 %

Rate of interest for extended period of cost payment.

8 7 53 % 26 %

Other factors. 3 12 20 % 10 %

CUSTOMER PROBLEM ANALYSIS…………

Since majority of the customers(34%) are dissatisfied or having inconveniences regarding the material cost payment clearing time. This problem occurs more frequently, Hence it needs immediate attention from the company in order retain its existing customers as well as to attract new customers.

INTERPRETATION…….

34%

30%

26%

10%

Avg. Dissatisfaction level

MATERIAL COST PAYMENT CLEARING TIME

MATERIAL LIFTING FACIL-ITY

SOURCE : - Concerned Dept. Heads Through Interviews.

BEFORE INTRODUCTION OF E-AUCTION(2004-2005)

SECONDARY DATA ANALYSIS

PRODUCT AVG QTY.(MT)

AVG PRICE.

(Rs PMT)

AVG SALES.(Rs)

Def CR-SHEET

84.66 28,460.33 24,09,451.53

Def HR-COIL 81.78 33,350.83 27,27,430.87

Def CR-BABY COIL

103.22 31,300.81 32,30,869.60

Def HR-PLATE 73.08 36,650.88 26,78,446.31

COBBLE PLATE

108.33 29,366.66 31,81,290.27

Def.C

R SHEET

Def.H

R-COIL

Def.C

R-BABY

COIL

Def.H

R-PLA

TE

Def.C

OBBLE

PLA

TE

0

1000000

2000000

3000000

Avg. Sales Revenue

Avg. Sales Revenue

INTERPRETATION……………

PRODUCT AVG QTY.(MT)

AVG PRICE.

(Rs PMT)

AVG SALES.(Rs)

Def.CR-SHEET

94.73 32,450.83 30,74,067.10

Def.HR-COIL 90.23 39,700.67 35,82,191.50

Def.CR-BABY COIL

110.22 35,700.89 39,34,927.90

Def.HR-PLATE 98.88 40,050.45 39,60,188.50

Def. COBBLE PLATE

112.34 36,550.82 41,06,119.10

AFTER INTRODUCTION OF E-AUCTION

Def.C

R-SHEET

Def.H

R-COIL

Def.C

R-BABY

COIL

.

Def.H

R-PLA

TE

Def.C

OBBLE

PLA

TE0

1000000

2000000

3000000

4000000

Avg. Sales Revenue Each Auction

Avg. Sales Revenue Each Auction

INTERPRETATION…….

INTERPRETATION…..

AVG SALES REVENUE : - 30% - 35%

AVG MATERIAL DISPATCH : - 10% - 15%

ANALYSIS………

Def.C

R-SHEET

Def.H

R-COIL

Def.C

R-BABY

COIL

Def.H

R-PLA

TE

Def.C

OBBLE

PLA

TE0

1500000

3000000

4500000

After E-AuctionBefore E-Auction.

According to the primary data analysis the major findings that came into highlight are listed below.

The time period alloted for paying the total cost for the material to the concerned customer is too short. i.e.7 days.

Potential customers gets late Information about the new auctioned items.

No material lifting facility available for the issued material to the customers.

FINDINGS…………

Rate of interest for extended payment clearing period is very high.i.e. (24 % pa)

Some customers finding the documentation process of e-auction a bit complex and time taking.

Once the material is issued, there is no sufficient stock maintenance till its lifting.

Few customers find that they are less awareness about e-auction.

Sometimes stock damage problem also arises.

Cont'd………….

After complete analysis of data, the main conclusion and recommendation thet can be made out are listed below.

The time period alloted for paying the total cost for the material should increase, atleast 5-7 days.

Rate of interest for extended cost of material payment period should come down to respectable level. i.e. 10-12 %.

Sufficient material lifting facility should be available to the customers at the rate of 0.5%-1% of the total cost of the material to maintain its extra occurring cost.

CONCLUSION AND RECOMMENDATION

There should be adequate stock maintenance of the issued material till its lifting by the concerned customer.

There should be easier and simpler documentation process of e-auction so as to hold several minor customers.

Extra focus should be given to the market makers and make them potential enough to tap the untapped market, which would finally result in market development and high turn-over.

Cont'd………..

THANK

YOU………