CHAPTER-1 THEORETICAL FRAMEWORK ABSTRACT
Distribution channels are behin e!er" #rouct an ser!ice that consu$ers an business bu"ers #urchase e!er"%here& 'suall"( 'suall"( co$bination on institutions institutions s#eciali)in* in $anu+acturin*( $anu+acturin*( %holesalin*( retailin* an $an" other areas ,oin +orce in Distribution channels&
A Distribution Distribution channel is a set o+ intere#enent or*ani)ation or*ani)ation in!ol!e in the #rocess o+ $ain* a #rouct or ser!ice a!ailable +or use or consu$#tion&
Distribution channels channels ecisions #la" a role o+ .trate*ic .trate*ic i$#ortance in the o!erall #resence an success a co$#an" en,o"s in the $aret #alace&
This #ro,ect re#ort entitle /A .tu" on Distribution Channel %ith .#ecial Re+erence to 0isaha#atna$ steel #lantRI2L in 0isaha#atna$ District/& To eter$ine the ealer satis+action o+ the #rouct an +uture e$ans(nees(%ants&
2
The stu" starts %ith an introuction introuction o+ the the Distribution Distribution Channel( co$#an" co$#an" #ro+ile( #ro+ile( i$#ortant o+ the .tu" an ob,ecti!es are set out +or the stu"& ata anal"sis( +inin*s an su**estions o+ the stu" +ollo%&
INTRODUCTION&INDUSTRY PROFILE PROFILE OFIRON & STEEL INDUSTRY .teelisa!ersatile(constantl"e!elo#in*$aterialthatuner#insall$anu+acturin* acti!it"&I acti!it"&I+a#ro +a#rouct uct is not $ae+ro$ $ae+ro$ steel(the steel(thenitis nitis certainl"$aeusin* certainl"$aeusin* steel atso$e#oin atso$e#ointt in the$anu+acturin*#rocess&
OVERVIEW OFIRON ANDSTEEL INDUSTRY .teeliscrucialtothee!elo#$ento+an"$oernecono$"anisconsieretobe thebacboneo+hu$anci!ili)ation&Thele!elo+#erca#itaconsu$#tiono+steelistreateas oneo+thei$#ortantiniceso+thele!elo+socio-econo$ice!elo#$entanli!in*stanar o+the#eo#l o+the#eo#leinan"co einan"countr"& untr"&Itis Itisa#rouc a#roucto+al to+alar*ea ar*eantec ntechnolo*i hnolo*icall"co call"co$#le3 $#le3inus inustr" tr"
ha!in*
stron* +or%ar an an bac%ar %ar lina*es in ter$s o+ $ater terial +lo%s an inco$e *eneration& *eneration&All$ All$a,ori a,orinustr nustrialec ialecono$ie ono$iesarech sarecharact aracteri)e eri)e
b"thee3iste b"thee3istenceo+a nceo+astro stron* n*
inustr"anthe*ro%tho+$an"o+theseecono$ieshasbeenlar*el"sha#eb"thestren*th o+theirsteel inustries intheirinitial sta*es o+ e!elo#$ent&
HISTORICAL PERSPECTIVE The+inishesteel#rouctioninIniahas*ro%n+ro$a$ere1&1$illiontonnesin
steel
2
The stu" starts %ith an introuction introuction o+ the the Distribution Distribution Channel( co$#an" co$#an" #ro+ile( #ro+ile( i$#ortant o+ the .tu" an ob,ecti!es are set out +or the stu"& ata anal"sis( +inin*s an su**estions o+ the stu" +ollo%&
INTRODUCTION&INDUSTRY PROFILE PROFILE OFIRON & STEEL INDUSTRY .teelisa!ersatile(constantl"e!elo#in*$aterialthatuner#insall$anu+acturin* acti!it"&I acti!it"&I+a#ro +a#rouct uct is not $ae+ro$ $ae+ro$ steel(the steel(thenitis nitis certainl"$aeusin* certainl"$aeusin* steel atso$e#oin atso$e#ointt in the$anu+acturin*#rocess&
OVERVIEW OFIRON ANDSTEEL INDUSTRY .teeliscrucialtothee!elo#$ento+an"$oernecono$"anisconsieretobe thebacboneo+hu$anci!ili)ation&Thele!elo+#erca#itaconsu$#tiono+steelistreateas oneo+thei$#ortantiniceso+thele!elo+socio-econo$ice!elo#$entanli!in*stanar o+the#eo#l o+the#eo#leinan"co einan"countr"& untr"&Itis Itisa#rouc a#roucto+al to+alar*ea ar*eantec ntechnolo*i hnolo*icall"co call"co$#le3 $#le3inus inustr" tr"
ha!in*
stron* +or%ar an an bac%ar %ar lina*es in ter$s o+ $ater terial +lo%s an inco$e *eneration& *eneration&All$ All$a,ori a,orinustr nustrialec ialecono$ie ono$iesarech sarecharact aracteri)e eri)e
b"thee3iste b"thee3istenceo+a nceo+astro stron* n*
inustr"anthe*ro%tho+$an"o+theseecono$ieshasbeenlar*el"sha#eb"thestren*th o+theirsteel inustries intheirinitial sta*es o+ e!elo#$ent&
HISTORICAL PERSPECTIVE The+inishesteel#rouctioninIniahas*ro%n+ro$a$ere1&1$illiontonnesin
steel
3
1451to 1451to 64&67 $illion tonnes in 6888-6881& 6888-6881& Durin*the+irst Durin*the+irst t%o ecaes o+#lanne o+#lanne econo$ic econo$ic e!elo#$ent(i&e&1458-98an1498-78(thea!era*eannual*ro%thrateo+steel#rouction e3ceee:;&Ho%e!er(this*ro%thratecoulnotbe$aint e3ceee:;&Ho%e!er(this*ro%thratecoulnotbe$aintaineinthe+ollo%in*ecaes& aineinthe+ollo%in*ecaes& Durin*1478-:8(the*ro%thrateinsteel
#rouctionca$eo%nto5&7;#erannu$an
#iceu#$ar*inall"to9&<;#erannu$urin*14:8-48(
%hichincreaseto9&95;#er
annu$urin*1448-6888&Thou*hIniastartesteel#rouctionin1411(steele3#orts+ro$ Iniabe*anonl"in149<&E3#ortsinthe+irst+i!e"ears%ere$ainl"uetorecessioninthe o$esticironansteel$aret&Onceo$estice$anre!i!e(e3#ortsecline&Iniaonce a*ainstartee3#ortin*steelonl"in1475touchin*a+i*ureo+1$illiontonneso+#i*iron e3#o e3#ort rtan an1 1&< &<$i $ill llio ion n
tonn tonnes eso+ o+st stee eele le3# 3#or orti tin1 n147 4799-77 77&T &The here rea+ a+te terr(e3#o e3#ort rtsa sa*a *ain ine ecl clin ine eto to
#icu#onl"in1441-46(%henthe$ain#roucerse3#orte=&:7lahstonnes(%hichroseto #icu#onl"in1441-46(%henthe$ain#rouce rse3#orte=&:7lahstonnes(%hichroseto 6&74$illiontonnesin1445-49&Thesteele3#ortsin1444-6888%ere6&=9$illiontonnesan in6888-81it%as6&57$illiontonnes&The*ro%thinthesteelse in6888-81it%as6&57$illiont onnes&The*ro%thinthesteelsectorintheearlierecaes ctorintheearlierecaes sinceIne#enence%as$ainl"inthe#ublicsectorunitssetu#urin*this#erio&The sinceIne#enence%as$ainl"inthe#ublicsectoruni tssetu#urin*this#erio&The situation has chan*e chan*e ra$aticall" ra$aticall" in the ecae 1448-6888 %ith $ost o+ the *ro%th ori*inatin* ori*inatin* in the #ri!ate
sector&
The
sh ar e o+# o+ # u b l i c sector
an
#ri!ate
sector
in
the
#rouctiono+steelurin*1448-41%as<9;an5<;res#ecti!el"(%hileurin*6888-81the #rouctiono+steelurin*1448-41%as<9;an5<;res#ecti!el"(%hile urin*6888-81the sa$e sa$e%a %as= s=6; 6;an an9: 9:;r ;res es#ec #ecti ti!e !el"& l"&Th This isch chan* an*e% e%as as
brou* brou*ht htab abou outb" tb"e ere* re*ul ulat atio iona nan n
econtrolo+theInianironansteelsectorin1441&Anu$bero+#olic"$easuresha!ebeen taensince1441+orthe*ro%thane!elo#$ento+theInianiron>steelsector& Re$o!alo+iron>steelinustr"+ro$thelisto+inustriesreser!e+orthe#ublic sectoranalsoe3e$#tion+ro$the#ro!isionso+co$#ulsor"licensin*unertheInustries ?De!elo#$ent>Re*ulation@ Act( 1451( ere*ulation o+ #ricean istribution o+ iron > steel( incl inclus usio ion n o+ iron iron an stee steell inu inust str" r"in in the the list list o+ hi*h hi*h #rio #riori rit" t"in inus ustr trie iess +or +or auto$ auto$at atic ic a##ro!al+or+orei*neuit"in!est$entsu#to7<;(lo%erin*o+i$#ortut"onca#ital*oos a##ro!al+or+orei*neuit"in!est$entsu#to7<;(l o%erin*o+i$#ortut"onca#ital*oos an ra% $aterials etc& TheIniansteelsector%asthe+irstcoresectortobeco$#letel"+ree+ro$the licensin*re*i$eanthe#ricin*anistributioncontrols&This%asone#ri$aril"because o+theinherentstren*thsanca#abilitiese$onstrateb"theInianironansteelinustr"& Durin*1449-47(+inishesteel#rouctionshotu#toarecor66&76$illiontonnes%itha *ro% *ro%th thra rate teo+ o+9& 9&6; 6;(% (%hi hile lein in14 1447 47-4 -4:( :(th the+ e+in inis ishe hes ste teel el
#ro #rouc ucti tion onin incr crea ease set to6 o6=& =&=7 =7
$illiontons(%hich%as6&:;$orethanthe#re!ious"ear& $illiontons(%hich%as6&:;$ orethanthe#re!ious"ear&The*ro%thratehasrasticall" The*ro%thratehasrasticall" ecreasein1447-4:an144:-44bein*6&:;an1&4;res#ecti!el"asco$#areto68;in 1445-49an9&6;in1449-47&The*ro%thratein6888-6881hasi$#ro!etoahealth" 4&98;%iththetotal#rouctiontouchin*64&67$illiontonnes&The#rouctiono++inishe stee steel lur urin in* *
68816881-86 86ha hasb sbee een= n=8& 8&91$ 91$il illi lion onto tonn nnes es(% (%hi hich ch$e $ean ansa salo% lo%er er*r *ro% o%th thra rate teo+ o+
4
about<&5;co$#aretothe#re!ious"ear&This+allinthe*ro%thrateo+steel#rouctionhas brou*ht about
been
b" se!eral +actors that( inter-alia( inclue *eneral slo%o%n in the
inustrial#rouctionanconstructionacti!itiesinthecountr"cou#le%ithlaco+*ro%thin $a,orsteelconsu$in*sectors&Thetotal#rouctiono++inishesteelantheshareo+$ain
an
seconar"#roucersurin*48Bs anu# to 6886-8= are *i!en in the anne3ure&
THEINTEGRATED STEEL PLANTSIN INDIA ARE:
Rourela .teelPlant
hillai.teelPlant
oaro .teelPlant
Dur*a#ur.teelPlant
Tata Iron an .teelCo$#an"?TI.CO@
0isaha#atna$.teelPlant? 0.P@
E..AR.teel Co$#an"
I2DAL .teelCo$#an"
IRON ANDSTEEL PROMOTION IN INDIA Althou*h iron an steel is one o+ the $ost i$#ortant inustries in the Inian $anu+acturin*sector(Iniaisonl"the15thlar*eststeel#roucerinthe%orl&Ori*inatin* +ro$the+irstsetu#o+asin*lesteel#lantin1411-16(theironansteelsectorinclue7 inte*rateironansteel#lantsin1445-49&Duetothere*ulator"an#oliticale!elo#$ent o+thesectoronl"oneo+these#lantsisin#ri!atehansaccountin*+orabout15;o+total steel#rouction&Theinte*ratesteelunitsusuall"usetheblast+urnacebasico3"*eno#en hearth+urnace#rocessroute+orironansteel#rouction&Inaition(thereareabout1:8 seconar"#roucerse$#lo"in*theelectricarc+urnace#rocess&Another588$ostl"s$aller unitsrel"on
other#rocessessuchasinuction+urnace#rocess($eltin*b"re-rollers(an
breain*units&
PROJECTEDPRODUCTION OFIRON& STEEL(Mt/annu! Crue.teel Prouction ?Mtannu$@base on
Crue.teel Prouction ?Mtannu$@ ear
GDPtotal
GDPinustr"
base on A!era*e
shi#
5
6881
6:&71
64&5=
64&16
6885
=5&=:
=9&4=
=9&15
6818
<5&45
<4&87
<7&51
Thou*hcurrentl"theironansteelsectorsee$stobeonanu#%ar#athina%orl o++ree$aret
co$#etitionan#rices(therearese!eralra%bacsthreatenin*theInian
inustr"&Fore3a$#le(thestateo+technolo*"(es#itethee++ortsto%ars$oerni)ationan u#*raation(isstillin+eriortothatinothercountries&Lo%costso+#ri$ar"in#utsha!eso +arletolo%costso+#rouctionanecono$ic!iabilit"o+Iniansteel&Thesea!anta*es( ho%e!er($a"beeroeinthenear+uture$ain*Iniansteellessco$#etiti!e&There+ore( technolo*ical#ro*ressantheao#tiono+$oree++icientani$#ro!etechnolo*iesneeto continuesu##orte b"#olic"anecono$icincenti!es to the e3tent #ossible&
OBJECTIVEOFSTEEL POLICY G'a:Thelon*-ter$*oalo+thenationalsteel#olic"isthatIniashoulha!ea
St"at#$%
$oernane++icientsteelinustr"o+%orlstanars(caterin*toi!ersi+iesteele$an& The+ocuso+the#olic"
%oul
there+orebetoachie!e*lobalco$#etiti!enessnotonl"in
ter$so+cost(ualit"an#rouct-$i3butalsointer$so+*lobalbench$arso+e++icienc" an#roucti!it"&This%illreuireini*enous#rouctiono+o!er188$illiontonnes?$T@ #erannu$b"6814-68+ro$the688<-85le!elo+=:$T&Thisi$#liesaco$#ouneannual *ro%th o+7&= #ercent #erannu$& Ta)#*: P"'+ut%'n,I-'"t., E-'"t.an+C'n.u-t%'n '0 St##
2019-20 2004-05 CAGR*
Production 110 38 73!
Imports 6 2 71!
Exports 26 4 133!
Consumption 90 36 69!
?in $illion tones@ Consu$#tion o+ .teel ProuctionI$#orts-E3#orts
INDUSTRYSTRUCTURE Theironansteelinustr"inIniaisor*ani)einthreecate*ories !i)&$ain#roucers( ‟
other$a,or
#roucersantheseconar"#roucers&The$ain#roucersanother$a,or
#roucersha!einte*ratesteel$ain*+acilit"%ith#lantca#acitieso!er8&5$Tanutili)e ironoreancoal*as+or#rouctiono+steel&
In
688<-85(the$ain#roucersi&e&.AIL(
TI.COanRI2Lhaaco$bineca#acit"o+aroun14&=$Tanca#acit"utili)ation%as 18<#ercent&Theother$a,or#roucersco$#risin*o+E..AR(I.PATan0.Lhaa ca#acit"o+9&
an
6
?a@ ac%arlina*e+ro$about168s#on*eiron#roucersthatuseironoreannon- coin* coal( %ith a ca#acit" o+ aroun 1= $T( #ro!iin* +eestoc +or steel #roucers& Theca#acit"utili)ation in 688<-85 %as 75 #ercent& ?b@ About958$iniblast+urnaces(electricarc+urnaces(inuction+urnacesanener*" o#ti$i)in*+urnacesthatuseironore(s#on*eironan$eltin*scra#to#roucesteel&
Their
ca#acit"is aroun1<&7 $T( an ca#acit"utili)ation in 688<-85 %as 5: #ercent& ?c@ For%arlina*e%ithabout1(688re-rollersthatrolloutse$isinto+inishesteel #roucts+orconsu$eruse&Theseares$allan$eiu$enter#rises(%hosere#orte ca#acit"is aroun15$T( an ca#acit"utili)ationin 688<-85 %as 55 #ercent&
SWOTANALYSISOFTHEINDUSTRY Thestren*ths(%eanesses(o##ortunitiesanthreats+ortheIniansteelinustr" ha!e beentabulatebelo%&Thenationalsteel#olic"la"so%nthebroaroa$a#toeal%ithall o+the$&
St"#n$t1.
W#a2n#..#.
1& 'nscienti+ic$inin* 1& A!ailabilit"o+ironore an coal
6& Lo%#roucti!it"
6& Lo%labour%a*e rates
=& Coin*coali$#orte#enence
=& Abunance o+ualit"$an#o%er
<& Lo%R>Din!est$ents
<& Mature#rouctionbase
5& Hi*hcosto+ebt 9& Inaeuate in+rastructure
O--'"tun%t%#.
T1"#at.
1& 'ne3#lore rural$aret
1& China beco$in*nete3#orter
6& Gro%in*o$estic e$an
6& Protectionis$inthe West
=& E3#orts
=& Du$#in*b"co$#etitors
<& Consoliation
INDIANSTEEL INDUSTRY3A SWOT ANALYSIS St"#n$t1. Iniahasrich$ineralresources&Ithasabunanceo+ironore(coalan$an"other ra%$aterialsreuire+orironansteel$ain*&Ithasthe+ourthlar*estironorereser!es ?18&=billion@a+terRussia(ra)il(anAustralia&There+ore($an"ra%$aterialsarea!ailable atco$#arati!el"lo%ercosts&Ithasthethirlar*est#oolo+technical$an#o%er(ne3tto 'nite.tates an the erst%hile '..R( ca#able o+ unerstanin* an assi$ilatin* ne% technolo*ies& Consierin*ualit"o+%or+orce(Iniansteelinustr"haslo%unitlabour
7
cost(co$$ensurate%ithsill& Iniaco$#areto$an"
This*etsre+lecteinthelo%er#rouctioncosto+steelin a!ancecountries?Table=@&Withsuchstren*tho+resources(alon*
%ith!asto$esticunta##e$aret(Iniansteelinustr"
hasthe#otentialto+acechallen*es
success+ull"&
W#a2n#..#. En+#% D#0%%#n%#. These are inherent in the ualit" an a!ailabilit" o+ so$e o+ the essential ra% $aterials a!ailable in Inia( e*( hi*h ash content o+ ini*enous coin* coal a!ersel" a++ectin*the#roucti!ee++icienc"o+iron-$ain*anis*enerall"i$#orte&A!anta*eso+ hi*hFecontento+ini*enousareo+tenneutrali)eb"hi*hbasicit"ine3&esies(certain in*reients
o+ steel
$ain*(
e*(
nicel(
+erro-$ol"benu$ is also
ini*enousl"&."ste$icDe+icienciesHo%e!er($osto+the
e"
una!ailable
%eanesseso+theIniansteel
inustr"canbeclassi+ieass"ste$ice+iciencies&.o$eo+theseareescribehere&Hi*h Costo+Ca#ital.teelisaca#italintensi!einustr"steelco$#aniesinIniaarechar*ean interestrateo+aroun1<;onca#italasco$#areto6&<;ina#anan9&<;in'.A&Lo%
labour
Proucti!it" In Inia the a!anta*es o+ chea# labour *ets o++set b" lo% labour #roucti!it"e*(at
co$#arableca#acitieslabour#roucti!it"o+.AILanTI.COis75
t$an"earan188t$an"ear(+orPO.CO(Koreaan2IPPO2(a#anthe!aluesare1=<5 t$an"earan4:8t$an"ear&Hi*hCosto+asicIn#utsan.er!icesHi*ha$inistere #riceo+essentialin#utslieelectricit"#utsIniansteelinustr"ata isa!anta*eabout <5;o+thein#utcostscanbeattributetothea$inisterecostso+coal(+uelanelectricit"( e*(costo+electricit"is=centsinthe'.Aasco$#areto18centsinIniaan+rei*htcost +ro$a$she#urtoMu$baiis58tonco$#aretoonl"=<+ro$Rottera$toMu$bai& Ae to this are#oorualit"ane!er increasin* #rices o+ coin* an non-coin* coal& Other s"ste$ice+iciencies inclueJ •
Poor ualit"o+ basic in+rastructure lieroa( #ortetc&
•
Lac o+e3#eniturein researchan e!elo#$ent&
•
Dela"in absor#tion in technolo*"b"e3istin*units&
•
Lo% ualit"o+ steel ansteel #roucts
•
•
Laco++acilitiesto#rouce!arioussha#esanualitieso++inishesteelon-e$an suchassteel+orauto$obilesector(#arallel+lan*eli*ht%ei*htbea$s(coatesheets etc& Li$iteaccesso+o$estic#roucersto*ooualit"ironores%hicharenor$all" ear$are +or e3#orts( an
•
Hi*h le!el ta3ation
esies these Inian steel $aers also lace in international co$#etiti!eness on
8
eter$inants lie #rouct ualit"( #rouct esi*n( on-ti$e eli!er"( #ost sales ser!ice( istribution net%or( $ana*erial initiati!es( research an e!elo#$ent( in+or$ation technolo*" an labor#roucti!it" etc& As is e!ient in Table <( the %eanesses *ets re+lecteinInia’s#oorstanin* inthe*lobalco$#etiti!enessas$easureinter$so+ inicate #ara$eters&
O--'"tun%t%#. Thebi**esto##ortunit"be+oreIniansteelsectoristhatthereisenor$oussco#e+or increasin*
consu$#tiono+steelinal$ostallsectorsinInia&Table9*i!esa*li$#seo+
unta##e#otentialo+increasin*steelconsu$#tioninIniae*(e!entoreachtheco$#arable e!elo#in*anlatel"e!elo#eecono$ieslieChinaanotherEuro#e(auantu$,u$#in
steel
consu$#tion %ill be reuire&
Un#-'"#+Ru"a Ma"2#t TheInianruralsectorre$ains+airl"une3#osetotheir$ulti-+aceteuseo+steel& Therural$aret%asienti+ieasa#otentialareao+si*ni+icantsteelconsu$#tion%a"bac inthe"ear1479itsel+&
Ho%e!er(+orce+ulste#s%erenottaento#enetratethisse*$ent&
Enhancin*a##licationsinruralareasassu$esa$uch*reatersi*ni+icanceno%+orincreasin* #erca#italconsu$#tiono+steel&Theusa*eo+steelincoste++ecti!e$anneris#ossibleinthe areao+housin*(+encin*(structuresanother#ossiblea##lications%heresteelcansubstitute other$aterials%hichnotonl"coulbrin*abouta!anta*estousersbutisalsoesirable+or conser!ationo++orestresources&Other.ectorsE3cellent#otentiale3ist+orenhancin*steel consu$#tion in other sectors such as auto$obiles( #aca*in*( en*ineerin* Inustries( irri*ationan%atersu##l"inInia&2e%steel#rouctse!elo#etoi$#ro!e#er+or$ance si$#li+"$anu+acturin*installationanreliabilit"isneeetoenhancesteelconsu$#tionin thesesectors&Mainob,ecti!ehereha!etobei$#ro!e$ento+ualit"+or!alueaitionin use(reuire$ento+less$aterialb"reucin*the%ei*htanthicnessan+inall"reuction o !e ra ll co st +o r th ee n u se r&
Latest
in
t ec hn ol o* " $u st be a o# te b " In i an st ee l
$anu+acturers+or#rouctiono+su#eriorualit"o+steel+orthesea##lications&Fore3a$#le(
#re-
coatesheetscanbeusein$anu+actureo+a##liances(+urnishin*s(electric*oosan #ublictrans#ort!ehicles&Prouctionansu##l"o+su#erior*raeso+steelinesiresha#es ansi)es%ille+initel"increasethesteelconsu$#tionasthis%illreuce+abricationnee thereb"reucecosto+usin*steel&Fe%other#ercei!eo##ortunitiesareJE3#ortMaret Penetrationitisesti$atethat%orlsteelconsu$#tion%illoubleinne3t65"ears&ualit" i$#ro!e$ento+ Iniansteelco$bine%ithitslo%costa!anta*es%ille+initel"hel#in substantial *ain in e3#ort $aret&
9
THREATS S'4In+u.t"5G"'4t1 Thelina*ebet%eentheecono$ic*ro%tho+acountr"anthe*ro%tho+itssteel
inustr"
isstron*&TheIniansteelinustr"isnoe3ce#tion&The*ro%tho+theo$esticsteel inustr"bet%een1478an1448%assi$ilartothe*ro%tho+theecono$"(%hichasa%hole %asslu**ish&Thisslu**ish*ro%thinthe a$on*e3istin*+ir$s&Astheinustr"isnot*ro%in*the
steelinustr"hasresulteinenhanceri!alr" onl"other%a"to*ro%isb"
increasin*
one s$aretshare&Conseuentl"(theIniansteelinustr"has%itnesses#urtso+ ‟
#rice%arsanhea!"traeiscounts(%hichhasoneIniansteelinustr"no*ooasa
%hole&
Threato+ .ubstitutesPlasticsanco$#osites#oseathreattoIniansteelinoneo+its bi**est$arets& Fortheauto$obileinustr"(theother$aterialat#resent%iththe#otential tou#sta*esteelisalu$inu$&Ho%e!er(at#resentthehi*hcosto+electricit"+ore3traction
an
#uri+ication o+ alu$inu$ in Inia %ei*hs a*ainst !iable use o+ alu$inu$ +or the auto$obileinustr"&.teelhasalrea"beenre#lacein
so$elar*e!olu$ea##licationsJ
rail%a"slee#ers?RCCslee#ers@(lar*eia$eter%ater#i#es?RCC#i#es@(
s$allia$eter
#i#es
?P0C #i#es@( an o$estic%atertans?P0C tans@&
T#1n''$%aC1an$# Technolo*icalchan*eso+ten+orcetheinustr"structuretochan*e&Forae!elo#in* countr"lieInia%hereca#italitsel+iscostl"(technolo*icalobsolescenceisa$a,orthreat& Price.ensiti!it"anDe$an0olatilit"Thee$an+orsteelisaeri!ee$ananthe #urchase uantit" e#ens on the en-user reuire$ents& The traers iscounts& This !olatilit" o+e$ano+tena++ectstheinte*ratesteel$anu+acturersbecauseo+theirinabilit" to tunetheir#rouction in line %ith the $aret e$an Fluctuations& .o$e other threats areJ •
E!er ecreasin*i$#ort ut"on steel&
•
Du$#in*o+ steel b"e!elo#ecountries&
•
Hi*h ualit" #roucts +ro$ e!elo#e countries a!ailable +or i$#ort at !er" co$#etiti!e #rices&
•
2on-a!ailabilit"o+ ca#ital +ro$ +inancial institutions +oriron an steel sector&
STRATEGIC RESTRUCTURING
10
A C'-a"at%6# Ana5.%. Thee++ecto+*lobali)ationonsteelinustriesini++erentre*ionsorcountrieshasnot beenuni+or$&Eachre*ionisuniueinitso%n%a"inter$so+ra%$aterialsa!ailabilit"( technolo*"ao#te($aret
conitions(train*#olicies(etc&Conseuentl"restructurin*o+
steelinustriesini++erentre*ionsha!ebeenoneina$annerthatbestsuitstheneesan o + t h e co u n t r " or r e *i o n ? Table
7 @&
The
i!er*ent
situations
s t r a t e * ie s a o # t e + o r
restructurin*b"steel inustries in i++erentcountriesre*ions #ro!iethe ri*ht #ers#ecti!e +or builin*aturnarounstrate*"+orInian steel inustr"
STEEL DEMAND
Urban Areas: The#resentsteelconsu$#tion#erca#ita#erannu$isabout=8*in Inia(co$#areto158*inthe%orl(an=58*inthee!elo#e%orl& The esti$ate urban consu$#tion #er ca#ita #er annu$ is aroun 77 * in the countr"( e3#ecte to reach a##ro3i$atel" 195* in 6814-68( i$#l"in* a CAGR o+ 5 #ercent& A#art +ro$ the antici#ate *ro%th in the construction( auto$obile( oil an *as trans#ortation( an in+rastructure sectors o+ the econo$"( conscious #ro$otion o+ steel usa*e a$on* architects( en*ineers an stuents b" the institute o+ .teel De!elo#$ent an Gro%th ?I2.DAG@ an the lar*e #roucers %ill ri!e this aitional consu$#tion& .te#s %oul be taen to encoura*e usa*e o+ steel in bri*es( crash barriers( +l"o!ers an builin* construction& ene+its o+ steel usa*e %oul be ae to the technical eucation curricula in the countr"&
RuralAreas:Theruralconsu$#tiono+steelinIniare$ainsataroun6*#er ca#ita#er annu$(#ri$aril"becausesteelis#ercei!etobee3#ensi!ea$on*the!illa*e +ols&ase on the #ro$otional e++orts $entioneabo!e( anan acti!e +ocus on o#enin*ne% blocle!elruralstoc#oints(atar*etisset+orraisin*the#erca#itaruralconsu$#tiono+ steel to < *#er annu$ b"6814-68( i$#l"in* aCAGR o+ <&< #ercent&
Exports:Althou*hthe+ocuso+Iniansteelinustr"isontheo$estic$aret( e3#ort%illbeanother%ino%onthee$ansie&The*ro%tho+e3#ortso+steel+ro$Inia hasbeenaroun18#ercent#erannu$o!erthe#astecae&Thats#eas+ortheinternational costco$#etiti!enesso+thesteelsector&Ittaes
assiuouse++orttocreate(anholonto
11
e3#ort$arets&Whilethebusinessecisiontoe3#ort%ille#enonthe#re!ailin*relati!e #rices(theGo!ern$ent%oulencoura*estrate*icalliances%ithbu"bacarran*e$entsan eicatee3#ort#rouctionthrou*h188;e3#ort-orienteunits&A*ro%thrateo+aroun1= #ercent#erannu$isen!isa*eu#to6814-68&Theissuesrelatetoe3#ortsha!ebeen iscusse in section 1= on TraePolic"&
INDUSTRYPERFORMANCE
The#er+or$anceo+Iniansteelinustr"hasbeenanal"seinthe$eiu$ter$+ro$ 1447to6811&Thesa$#le+oranal"sisincluesata+ro$.AILanTata.teela$on*the I.Ps an0.L(Is#at( Essar anLlo"s a$on*theseconar"$a,ors7& Cate*or"%ise esti$atee$an +orironan steelallInia 6886-688=
Cat#$'"5
7uant%t5,8*9 t
arsan ros
18588
.tructural
6588
Rail%a" $aterials
:<5
Plates
HRcoilssel#
6658
9988
HRsheets
588
CRcoilssheets
GPGCsheets
==88
14=8
Electricalsteel sheets
688
Tin#lates
=65
Pi#es
:58
Total+inishesteel
;<=99
UNE>PLOREDRURAL MAR?ETS
TheInianruralsectorre$ains+airl"une3#osetotheir$ulti-+aceteuseo+steel& Therural$aret%asienti+ieasa#otentialareao+si*ni+icantsteelconsu$#tion%a"bac inthe"ear1479itsel+&
Ho%e!er(+orce+ulste#s%erenottaento#enetratethisse*$ent&
Enhancin*a##licationsinruralareasassu$esa$uch*reatersi*ni+icanceno%+orincreasin* #erca#italconsu$#tiono+steel&Theusa*eo+steelincoste++ecti!e$anneris#ossibleinthe areao+housin*(+encin*(structuresanother#ossiblea##lications%heresteelcansubstitute other$aterials%hichnotonl"coulbrin*abouta!anta*estousersbutisalsoesirable+or
12
conser!ation o++orest resources&
STEEL PRICES
Follo%in*e-re*ulationo+#rices+orinte*ratesteel#lantsin1441-46(theo$estic #rices o+ steel ha!e beco$e $aret-eter$ine& Maret #rices re$ain in ste# %ith international #rices(
thou*h
*enerall"lo%er&
Durin*
urin*u#turns(the"rise&Whilerationali)ation
inustr"
o%nturns(
#rices
+all
o+thecusto$sane3ciseut"structureis
an ai$e
#ri$aril"at reucin* +iscal an re!enue e+icits( it has an inirect in+luence on consu$er#rices&At#resent(therearearounthreethousanunits$anu+acturin*steelan steel#roucts(%hichare$areteb"o!er188(888traers+orulti$ateconsu$ers&Thisis#ersal o+ theistribution
chain
has
beenthe
#rinci#al
reason
%h"no#ricere*ulation
o+
the
steeltraehase!erbeenin+orce&Go!ern$enthasrecentl"setu#aCo$#etitionCo$$ission to loo into co$#laints o+ $ono#olistic#ricin*&
Steelfutures:Thec"clicalnatureo+thesteelinustr"eters+reshin!est$entsueto risso+recession&The$is$atchbet%eene$anansu##l"alsoleasto#rice!olatilit" %itnesseurin*recentti$es&.ta*nationinsteel#rices+orlon*#erios+ollo%eb"suen s#urtalsoa++ectstheconsu$ersanthein+rastructureinustr"&There+ore(thee++ortso+ !ariousstaeholerstoe!elo#ris-he*in*instru$entslie+uturesaneri!ati!es%oul besu##orte&
HUMANRESOURCES Theantici#atesteel#rouctiono+118$Tb"6868%oulreuireanaitional %or+orceo+668(888a+teraccountin*+orthee3#ecte#roucti!it"i$#ro!e$ents&7Further thecreationo+1$an-"earo+e$#lo"$entinthesteelinustr"*eneratesanaitional=&5 "earso+e$#lo"$entelse%hereinthe
$an-
econo$"uetoitsstron*lina*es%ithother
sectorssuchastrans#ort($inin*(construction($achiner"(
an
steel+abrication&Thetotal
aitionale$#lo"$ent*enerateintheecono$"uetoe3#ecte#rouctiono+118$Tb" 6868%oul be aroun1$illion& The#ro+ileo+thereuirehu$anresources%illha!ealar*ershareo+thesillean sillelabour+orce&It
isa$attero+concernthat
a!ailabilit"o+
scientists(
se$i-
en*ineersan
technicians#erthousano+#o#ulationinIniais7&85co$#areto11=ina#an(48in'&K&( 5=inKorea(5
13
technolo*"antheneeso+*lobali)ation&Thee3istin*trainin*anresearchinstitutesuner theMinistr"o+.teel%oulbebrou*htuneranu$brellaor*ani)ation%ithre#resentation +ro$eachse*$ento+theinustr"&The+unctionso+thisor*ani)ation %oulinclue?a@ suitabletrainin*#ro*ra$$eses#eciall"+ortheseconar"s$allscaleunits(?b@#ro$otiono+ steel consu$#tion throu*h isse$ination o+in+or$ation on a!ailabilit"an suitabilit"o+ steel +or!ariousa##lications(an?c@collectionananal"siso+ataoni$#ortant#ara$eterso+ the inustr"&
TECHNOLOGIES, RESEARCH AND DEVELOPMENT Thou*h the choice o+ technolo*"%ill be eter$ine b"
entre#reneurs base on
techno-econo$icconsierations(theGo!ern$ent%oulencoura*eao#tiono+technolo*ies( %hichJ NHa!es"ner*"%ith thenatural resourceeno%$ents o+ the countr"& N The" are conuci!e to #rouction o+ hi*h-en an s#ecial steel reuire +or so#histicate inustrial an scienti+ic a##lications NMini$i)ea$a*eto the en!iron$ent at !arious sta*es o+ steel $ain*an $inin*& NO#ti$i)e resourceutili)ation& NFacilitate$oerni)ation o+thesteel inustr"so as toachie!e*lobal stanarso+ #roucti!it"ane++icienc"& NDe!elo#$ent o+ +ront en an strate*ic steel base $aterials& Inia’se3#enitureonResearchanDe!elo#$enthasbeenne*li*iblenotonl"in absoluteter$s
butalsoasa#ercenta*eo+G2Pat8&:9;&Thiscanbeco$#aretothe
e!elo#e%orl%ithana!era*e ratioo+6&5;&Inthecaseo+steelinustr"(theratioo+ e3#enitureon R>D as a#ercenta*eo+ turno!ers is onl"8&69;& Thelo%#riorit"toini*enousR>Dhas*i!enrisetoao#tiono+technolo*iesthat
are$ore
suitetoconitions#re!ailin*inthee!elo#e%orl&Fore3a$#le(resource #ositiono+ra%$aterials
reuirese!elo#$ento+technolo*ies(%hichcanuseini*enous
coin*coalsannon-coin*coalsan+ori$#ro!e$entinualit"o+hi*halu$inaInian ironore&utlaco+inno!ationanaa#tationtoInianconitionsisresultin*inlar*e-scale i$#orto+coin*coalanlo%#er+or$anceiniron$ain*&A**ressi!eR>De++orts%oul( there+ore(be$ountetocreate$anu+acturin*ca#abilit"+ors#ecialt"#eso+steel(substitute coin*coal(enrich$entana**lo$erationo+ironore+ines(e!elo#ne%#rouctssuiteto ruralnees(enhance$aterialanener*"e++icienc"(utili)e%aste(anarresten!iron$ental e*raation&Publicsectorsteelco$#anies%oulenhanceR>De3#enitureintheco$in* "earsto+inanceinternalR>De++orts ans#onsoroutsieresearch(%hich$a"#ro!iea +ra$e%or + o r i n t e r -isci#linar" c o o # e r a t i o n % i t h the
#ri!ate s e c t o r a c r o s s n a t i o n a l
14
bounaries& Go!ern$ent’scontribution to +osterin*basican a##lie R>D%illbe enhance& STEEL INDUSTRY3MAJORPROBLEMSAND CONCERNS
TheIniansteel$anu+acturersare+ace%ithso$e$a,or#roble$sanconcerns( %hich%oras
inhibitin*+actorstotheire++ortto%ars*ainin*theco$#etiti!ee*e&A+e%
o+theseareJ'nre$unerati!e
Prices.ta*natin*e$an(o$estico!ersu##l"an+allin*
#ricesinthelast+our"earsha!ehitIniansteel$aers&arrin*thes#oraicriseine$an
in
the
recent $onths( it has su++ere +ro$ '2 re$unerati!e #rices to the e3tent that co$#aniesha!ebeen+inin*iti++icultto$aintainca#italcosts&.ta*natin*
De$an+or
.teelAccorin* toMcKinne" anCotheo$esticsteelinustr"issetto%itnessa==;o!er ca#acit"in thehot rollecoil&
THEORETICAL ACKGRO'2D OF DI.TRI'TIO2 CHA22EL
15
Pa#, +%.t"%)ut%'n, 1ann# '" %nt#"#+%a"5
A channel o+ istribution co$#rises a set o+ institutions %hich #er+or$ all o+ the acti!ities utili)e to $o!e a #rouct an its title +ro$ #rouction to consu$#tion& uclin - Theor" o+ Distribution Channel .tructure ?1499@ Another ele$ent o+ 2eil H& orens Maretin* Mi3 is Place& Place is also no%n as channel( istribution( or inter$eiar"& It is the $echanis$ throu*h %hich *oos anor ser!ices are $o!e +ro$ the $anu+acturer ser!ice #ro!ier to the user or consu$er& T1#"# a"# .% )a.% @1ann#@ ecisionsJ
16
NDo %e use irect or inirect channels ?e&*& BirectB to a consu$er( BinirectB !ia a %holesaler@ N.in*le or $ulti#le channels N Cu$ulati!e len*th o+ the $ulti#le channels N T"#es o+ inter$eiar" ?see later@ N2u$ber o+ inter$eiaries at each le!el ?e&*& ho% $an" retailers in .outhern .#ain@& NWhich co$#anies as inter$eiaries to a!oi Qintra channel con+lict S##t%'n C'n.%+#"at%'n 3 1'4 +' 4# +#%+# u-'n a +%.t"%)ut'"
Maret se*$ent - the istributor $ust be +a$iliar %ith "our tar*et consu$er an se*$ent& Chan*es urin* the #rouctli+e c"cle- i++erent channels can bee3#loite ati++erent #oints in the PLC e&*& Fola%a" scooters are no% a!ailable e!er"%here& Once the" %ere sol !ia a +e% s#eci+ic stores& Proucer - istributor +it - Is there a $atch bet%eentheir #olices( strate*ies( i$a*e( an "ours Loo +orB s"ner*"& uali+ication assess$ent - establishes thee3#erience an trac recor o+ "our inter$eiar"& Ho% $uch trainin* an su##ort %ill "our istributor reuire
T5-#. '0 C1ann# Int#"#+%a"%#.
There are $an" t"#es o+ inter$eiaries such as %holesalers( a*ents( retailers( the Internet( o!erseas istributors( irect $aretin* ?+ro$ $anu+acturer to user %ithout an inter$eiar"@( an $an" others& The $ain $oes o+ istribution %ill be looe at in $ore etail(
* C1ann# Int#"#+%a"%#. 3 W1'#.a#".
The" brea o%n BbulB into s$aller #aca*es +or resale b" a retailer&
The" bu" +ro$#roucers anresell to retailers& The" tae o%nershi# or BtitleB to *oos %hereas a*ents o not ?see belo%@&
The" #ro!ie stora*e +acilities& For e3a$#le( cheese $anu+acturers selo$ %ait +ortheir #rouct to $ature& The" sell on to a %holesaler that %ill store it an e!entuall" resell to a retailer&
Wholesalers o++er reuce the #h"sical contact cost bet%een the #roucer an consu$er e&*& custo$er ser!ice costs( or sales +orce costs&
A %holesaler %ill o+ten tae on the so$e o+ the $aretin* res#onsibilities&
Man" #rouce their o%n brochures an use their o%n telesales o#erations&
17
; C1ann# Int#"#+%a"%#. 3 A$#nt.
A*ents are $ainl" use in international $arets& An a*ent %ill t"#icall" secure an orer +or a #roucer an %ill tae a co$$ission& The" o not ten to tae title to the *oos& This $eans that ca#ital is not tie u# in *oos& Ho%e!er( a Bstocist a*ent %ill holconsi*n$ent stoc ?i&e& %ill store the stoc( but the title %ill re$ain %ith the #roucer& This a##roach is use %here *oos nee to *et into a $aret soon a+ter the orer is #lace e&*& +oostu++s@& A*ents can be !er" e3#ensi!e to train& The" are i++icult to ee# control o+ ue to the #h"sical istances in!ol!e& The" are i++icult to $oti!ate&
=& C1ann# Int#"#+%a"%#. 3 R#ta%#".
Retailers %ill ha!e a $uch stron*er #ersonal relationshi# %ith the consu$er&
The retailer %illhol se!eral other brans an #roucts& A consu$er %ill e3#ect to be e3#ose to $an" #roucts&
Retailers %ill o+ten o++er creit to the custo$er e&*&( electrical %holesalers( or tra!el a*ents&
Proucts an ser!ices are #ro$ote an $erchanise b" the retailer&
The retailer %ill *i!e the +inal sellin* #rice to the #rouct&
Retailers o+ten ha!e a stron* BbranB the$sel!es e&*& Ross an Wall-Mart in the '.A( an Alisu#er( Moelo( an u$bo in Portu*al <& C1ann# Int#"#+%a"%#. 3 Int#"n#t
The Internet has a *eo*ra#hicall" is#erse $aret&
The $ain bene+it o+ the Internet is that niche #roucts reach a %ier auience e&*( .cottish .al$on irect +ro$ an In!erness +isher"&
There are lo% barriers lo% barriers to entr" as set u# costs are lo%&
'se e-co$$erce technolo*" ?+or #a"$ent( sho##in* so+t%are( etc&@
There is a #arai*$ shi+t in co$$erce an consu$#tion %hich bene+its istribution !ia the Internet
18
CHAPTER-6 COMPA2 PROFILE
19
20
COMPANY PROFILE V%.%'n •
To bea continuousl"*ro%in*%orl class co$#an"%eshall
•
Harness our*ro%th #otential an sustain #ro+itable *ro%th&
•
Deli!er hi*h ualit" an cost co$#etiti!e #roucts an be the +irst choice o+ custo$ers&
•
Create an ins#irin*%oren!iron$ent to unleash the creati!e ener*"o+ #eo#le&
•
Achie!ee3cellencein enter#rise $ana*e$ent&
•
eres#ecte cor#orate citi)en( ensureclean an *reen en!iron$ent an e!elo# !ibrant co$$unities aroun us&
M%..%'n •
Toattain19$illiontonliuisteelca#acit"throu*htechnolo*icalu#-*raation( o#erational e++icienc"ane3#ansionto#roucesteelatinternationalstanarso+ cost an ualit" an to$eet the as#irations o+ thestaeholers&
O )# t%6 #.
E3#an#lantca#acit"to9&=Mtb"688:-84(%iththe$issiontoe3#an+urtherin subseuent #hases as #erthe cor#orate #lan&
.ustain *ross $ar*in to turno!er ratioS65;&
e a$on*st to# +i!elo%est cost liui steel #roucers in the %orl b"6884-18&
Achie!ehi*her le!els o+custo$er satis+action than co$#etitors&
Instill ri*ht attitue a$on*st e$#lo"ees an +acilitate the$ to e3cel in their #ro+essional( #ersonal an social li+e&
ereco*ni)e as ane3cellent business or*ani)ation b"688:-84&
e #roacti!e in conser!in* en!iron$ent( $aintainin* hi*h le!els o+ sa+et" an aressin*social concerns&
PROFILE OF VIAGSTEEL PLANT To$eetthe*ro%in*o$esticneeso+steel(theecision
o+theGo!ern$ento+Inia
tosetu#aninte*rate.teelPlantat0isaha#atna$%asannounceb"thePri$eco$$ittee choosesthesitenearalacheru!ucreeanthe#ri$e$inisterithe+or$alinau*uration anlaithe+ounationstoneon68
th
anuar"1471&Theconsultant(MsM&2&Dasturan
Co$#an"lt&(sub$itteatechno-econo$ic+easibilit"re#ort+orthe#lant(%ithanannual ca#acit"o+about=$illiontoneso+liuisteel(inOctober1477&Theser!icee3a$inethe
21
etaile#ro,ectre#ort#re#areb"DasturCo$#an"ano++ereTechnicalanEcono$ic o#eration+orthesa$e&The*o!ern$entanerst%hile'..Rsi*nea*ree$entonune16
th
1474( +or co-o#eration in settin* u# a =&< $illion tones inte*rate steel #lant at 0isaha#atna$&Inter$so+thisa*ree$ent(so!ietsanInianesi*nor*ani)ationre!ise theearlieretaile#ro,ectre#orto+DasturCo&(,ointl"anaco$#rehensi!ere!iseetaile #ro,ectre#ort+or0.P%as
sub$ittein2o!e$ber14:8&Ane%co$#an"i&e&Rashtri"a
Is#act2i*a$Lt&?RI2L@%asincor#orate
to
ha!eine#enentecisiontain*+acilit"
%ith$oreconcentrationonthis#articularunit&Theconstructiono+the#ro,ectco$$ence in14:6%ithascheuleo+
an
ti$e
o!erruns&
In
a
bi
to
reuce
the
ca#ital
in!est$ent
Rationali)econce#t%asao#tein14:5&As#erthisonesteel$eltsho#anonerollin* $illi&e&theuni!ersalbea$$ill%erero##e&Theothersteel$eltsho#o+6&6MTPAo+ liui %ithout
an"
aitional
+acilities&
.ri&P&0&2arasi$haRaoeicatethe#lanttothe2ationon1
The st
Honorable
Pri$e
steel
Minister
Au*ust1446&'nlieother
inte*ratesteel#lantsinthecountr"&2e%technolo*"(lar*e-scaleco$#uteri)ationan auto$ationetc&(areincor#orateinthe#lant&Too#eratethe#lantatinternationalle!elsan attainssuchlabor#roucti!it" the total$annin*o+theor*ani)ationhasbeenli$iteto 17588e$#lo"ees&The#lanthasaca#acit"o+#roucin*=&8MTo+liui.teelan6&959 MTsaleable steel&
HISTORY OFTHEVIAGSTEEL PLANT Theecision o+ the *o!ern$ent o+ Inia to set u# an inte*rate steel #lant at 0isaha#atna$%asannouncein#arlia$entb"thePri$eMinister.$t&IniraGanhion th
17
A#ril1478&Theselectionco$$itteechosethesitenearbalacheru!ucreaanthe
$inister
i
the +or$al inau*uration on anuar"
M.&M&2&DA.T'R>co$#an"
#ri$e
68( 1471& The Consultant(
#ri!ateli$itesub$itteatechnoecono$ic+easibilit"
re#ortinFebruar"1476(anaetaile#ro,ectre#ort+orthe#lant(%ithanannualca#acit" o+about=$illiontoneo+liuisteelinOctober(1477&Insettin*u#the=&<$illiontones inte*ratesteel#lantat0isaha#atna$&Inter$so+thisa*ree$enttheearlierDPRo+ Dastur >Co %as re!ise ,ointl" b" .o!iets an Inia esi*n or*ani)in* an a co$#rehensi!ere!ise DPR?CRDPR@ +or0.P%as sub$itte in 2o!e$ber1471& The#ro,ect%asesti$atetocostRs&:=47&6:corers(baseon#ricesasinthe<
th
22
uartero+14:1&Ho%e!er(urin*thei$#le$entationo+the#ro,ectit%asobser!ethatthe cost has increase substantiall"
#ro,ect
o!er the sanctione cost( $ainl"ue to #rices
escalationsanuner#ro!isiono+
DPResti$ates&In!ie%o+theseanthecritical+un
situation(alternati!es+ori$#le$entationo+the#ro,ect%ithrationali)ationo+thea##ro!e conce#t%erestuiein14:9&'nertherationali)econce#t
=&8
$illiontoneso+liui
steeltobe#rouceina"earanthe#ro,ectisesti$atetocostRs&5:66&17crason+ourth
uarter
o+14:7&
REASONSFORESTABLISHMENT Allthesteel#lantsinInia%erelocateinthenoncoastalareao+thecountr" becauseo+thatreasonthe#lantauthorities%ereincurrin*hi*hi$#ortane3#orte3#enses inthe+or$o+ta3besiesthe
trans#ortationcosto+thera%$aterials(+inishe#roucts(
s#aresanothereui#$ents+or!arious#ur#oses&Theconcernauthorit"has*oneinee# iscussiontoreucethist"#eo+cost+oratleasttothelateststeel#lant+orthisreasonan the #olitical threat +or locatin* the steel #lant in 0isaha#atna$ are the $ain #oints& st
Co$#are to theothersteel #lants inInia it is the 1 shorebase steel #lant& •
•
•
In the"ear 1474-:8 +ollo%in*"eari&e&
the
construction
too
hi*h
s#ee
an
in
14:1contractsi*ne%ith.o!iet'nion+or#re#arationo+%orin*ra%in*+orcoe
o!ens(
blast +urnace ansinter #lant& 14:6(there%ererasticchan*es in the$ana*e$ent o+ 0.Pi&e& +ro$ .AILto RI2L&
Durin* the "ear 14:5( Go!t o+ Inia thou*ht o+ is#ensin* %ith the sche$e o+ installin*o+steel#lantat0isaha#atna$once+orall(becauseo+hi*hca#italcosto+the e3ercisean!er"o%n#hase *ettin*returnsonthein!est$ent&Athissta*ethere%ere aroun =8 to =5 thousan contract labours %orin* in the construction uner !arious contract ,obs&
Intheearl"sta*es(theGo!t&has*i!enassurancestothe#eo#lethatthe"%illbe *i!en,obsinthesteel#lant%hoselansarelostintheacuisition&Thetotalarea*athere b"thesteel#lant(authorit"is67888acres&Thelano%nersinthisarea%ere$osto+the$ +ar$ers&Mosto+the+ar$ersareuneucate&
Thist"#eo+#eo#leisaroun9888thatis
#er+or$in*i++erent nontechnical( ine3#ensi!e an trans#orti!e etc&
INFRASTRUCTURE OFVISA?HAPATNAMSTEEL PLANT a!L'at%'nan+G#n#"a a5'ut
23
The#lantislocateonthecoasto+a"o+en*al(19$sto
the.outh
Westo+the
0isaha#atna$#ort&Itla"sbet%eenthenorthernbounarieso+thenationalhi*h%a"2o&5 +ro$ Chennai to Kolataan 7 $s to thesouth %est Ho%rah Chennai rail%a"line& )! C%at#
0isaha#atna$has%ar$anhu$icli$ate&A#riltouneisthe%ar$est$onthso+the "earan
Dece$bertoFebruar"arethecolest$onths&Thebene+its+ro$he.outh%est
$onsoonanhenortheast$onsoons&Thea!era*eannualrain+allis:7=&9$$&hi*hest
$ean
$onthl"$a3i$u$te$#eratureis =7&: e*&C&
MAJORPLANTFACILITIES VSP1a. t1# 0''4%n$ -"'+ut%'n 0a%%t%#. Threecoeo!ens batteries o+ 97o!ens( each ha!in*<1&9 $= !olu$es& T % o sinter $achines o+ =16 s&$area& T % o blast +urnaceo+ =688 $= use+ul !olu$es& . t e e l $eltin*sho#%iththreeL&D&con!erters?t%oo#eratin*anonestanb"b"o+158
tons
each o+ca#acit"each an 9nos& o+ +our stran continuous bloo$s casters@ L i * h t an $eiu$$erchant $ill ?LMMM@ o+7( 18(888tones #er"ear ca#acit" W i r e ro $ills ?WRM@o+:( 58(888 ones #erca#acit"&
AM'+#"nT#1n''$5 0.Pisthe$ostso#histicatean$oern#lantinthecountr"&Moerntechnolo*" hasbeenao#tein$an"areaso+#rouctionso$eo+the$+orthe+irstti$einthecountr"& A$on*the$ are • • • • • • • • •
.electi!e crushin* o+ coal 7 $eter tall coe o!ens Dr" uenchin* o+ coe On *roun blenin* o+ sinter base $i3 Con!e"or char*in* an bell less to# +or blast +urnace 188; continuous castin* o+ liui steel Gas e3#ansion turbine +or #o%er *eneration utili)in* blast +urnace to# *as #ressure Hot $etal esul#huri)ation E3tensi!e treat$ent +acilities o+ e++luents +or ensurin* #ro#er en!iron$ental #rotection
BC'2# O6#n. &C'a 1#%a.Pant Coin*coala+terselecti!ecrushin*an#ro#erblenin*issub,ectetoestructi!e istillation ?heatin*in the absenceo+ air@ in theCoeO!ens&A+terheatin* +or nearl"a#erio o+19-1:hoursatate$#eratureo+about1188e*reeC(Coeisobtaineanisuseasa
24
+uelas%ellasreucin*a*entinthelastFurnace&TheCoeO!enso+0.Pareen*ineerin* +eatsb"the$sel!es&The"arethetallesto!ens$eterconstructeinthecountr"&ThePlant has=batterieso+7$eter&Another +eatureisther" coolin* o+coe carrieoutb"theinert*as nitro*en
thus ( reuc in*#ol lution consierab l"&
se#aratel"
esies
bio-che$ical #lant
unertaesthetreat$ento+e++luents(b"
#rouctslieben)ene(toluene(3"lene(na#hthalene(
coaltar(creosote
oil(#itch(ana$$oniu$*as(0.P#rouces(a$on*otherb"-#roucts(
#ushala
a#ri$e+ertili)er baseon a$$oniu$sul#hate&
C St## M#t S1'-&C'nt%nu'u. Ca.t%n$ ThereareTo#blo%ncon!erterseacho+1==cu&$0olu$e(#rouceatotalo+6&7 $illiontoneso+
liuisteel#erannu$&Thisliuisteelthus#rouceiscasteinsi3-<
stran
bloo$casters& As#ecial+eatureinener*"conser!ationisthecollectiono+Con!erter*astobeuse asa+uelinthe#lant&Theentire$oltensteelas0.Piscontinuousl"castattheraialt"#e continuouscastin*$achines
resulteinsi*ni+icantener*"conser!ationanbetterualit"
steel&188;Continuouscastin*onsuchalar*escalehasbeenconcei!e+orthe+irstti$ein Inia&
D . R'%n$ M%. Thecast bloo$s +ro$continuous castin*e#art$ent areheatean rollein thethree hi*hs#eean+ull"auto$aterollin*$illsna$el"li*ht>Meiu$MerchantMill(Wire RoMillanMeiu$Merchant
>.tructuralMill(to#rouce!ariouslon*#rouctslie
Rein+orce$ent bars( rouns suares( +lats( an*les( channels billets( %ire ros etc& Technolo*ies ao#teat Rollin*Mills inclue%orl class .teel %or an Te$ core #rocess&
SWOT ANALYSIS The.WOTanal"siso+RI2Lbrin*s+orththeo##ortunitiesanthreats+acin*RI2L( %itha!ie%tobuilin*su#onthestren*ths(e3#loitin*theo##ortunitiesi$#ro!in*u#onthe %eanessancon!ertin*threats
intoo##ortunities&Thestren*ths(%eaness(o##ortunities
threats o+ RI2Lareas uner&
S3St"#n$t1. 1& .tateo+-the technolo*" 6& Hi*h co$$it$ent to achie!e ca#acit"le!els =& Areas e3cellence
o+
<& Econo$ies scale
o+
an
25
5& Hi*h #otential
e3#ansion
9& .tron*co$$it$ent to conser!een!iron$ent
W3W#a2n#..#. 1& Hi*h ca#ital ratechar*es 6& Lo%return #rouct$i3 =& Proucti!it"belo% international le!els <& Practices not as #er %ithinternational stanars
O3O--'"tun%t%#. 1& .horebase 6& .i)eablee3#ort $arets =& Access to i$#ort resources <& Pro3i$it"to southern $arets 5& Increasin*o$estice$an ueto thrust on in+rastructuree!elo#$ent&
T3T1"#at. 1& A!ailabilit" o+ iron ore an coal 6& Risin* in#ut an costs =& Increasin* co$#etition <& .ensiti!e to e3chan*e rate !ariation 5& Possibilit" o+ i$#ort uties eclinin* +urther 9& E3cise uties continue to be hi*h 7& Lac o+ alternati!es sources +or $a,or ra% $aterials :& Ma,or $aret #lace ?north>%est@ locate +ar o++ 4& In+rastructure continues to be inaeuate 0.P‟s.tateo+thearttechnolo*"(hi*he3#ansion#otentialanecono$ieso+scale %oulbe utili)e+oro++settin*theisa!anta*eso+lo%return#rouct$i3anhi*h ca#italrelatechar*es& .hore baselocationo+theco$#an"%oul#ro$otee3#ortan i$#orto+ualit"ra%$aterials&Pro3i$it"o+0.Ptosouthern$aecanhel#inca#turin* lar*er$aretshareinsouth&0.P%oul$eettheincreasin*co$#etitionthrou*hitsualit" #roucts an custo$er orientation&
26
DESIGN ANDENGINEERING Theso!iet esi*n or*ani)ation( GIPROMET. esi*ne the coe o!en an coal che$ical#lant
?e3cluin*the7-$etertallbatter"#ortion@sinter#lantanblast+urnace&
MECO2o+Ranchien*ineere
the7-$etertallcoeo!enbatteries%ithr"uenchin*&
Dastur
>Co& has esi*ne the re$ainin*+acilities&
a Ra4Mat#"%a Ra4Mat#"%a
S'u"#
Iron orelu$#s>+ines&
ailailla( MP&
Fli$estone&
a**a""a#eta( A&P&
.M.li$e .tone&
Dubai
FDolo$ite&
Mahara$( A&P&
.M.Dolo$ite&
Mahara$( A&P&
Man*aneseore&
Chi#uru#alli( A&P&
oiler coal&
Talcher(Orissa&
Cocin*coal&
Australia&
Meiu$Cocin*coal ?MCC@
Giis%an* ra,ara##aar*li&
) E-'5#nt O--'"tun%t%#. At+ullo#erationalsta*e(no%0isaha#atna$.teelPlanthase$#lo"eabout17=94 technicalsta++&
Theinirecte$#lo"$entueto!ariousancillar"units ‟e!elo#$entan
otherser!ices is$uch $ore&
T"a%n%n$ an+D#6#'-#nt •
RI2Lbelie!esthatthee$#lo"eesareitsassetsanstri!estoreali)etheir#otentialin
+ull
+or$utual a!anta*e& •
Atrainecareo+technicalo#erati!e#ersonnelan$ana*erialcareare#ro!ie
+orthe
success+ul co$$issionin*an o#eration o+alar*esteel #lant lie 0.P& •
Atrainin*ane!elo#$entcentre%ith+acilitiesisa!ailabletoe!elo#trainecare o+technical #ersonnel an $ana*erialcare&
•
E$#lo"eesaresenttoothersteel#lantsonshorturationtoursto+insolutionstothe !arious issues +acin*theco$#an"&
•
E$#lo"eesare also sent to su##liers $anu+acturin*units&
•
0.P#ro!ies trainin*#ro*ra$$er +or enhancin* theirno%le*e&
27
+ T'4n.1%AMoernto%nshi#%ithalla$enitieshasbeene!elo#ea,acenttothesteel#lant site(tohousethe#lante$#lo"ees&Theto%nshi#isha!in*#rotecterinin*%atersu##l"( %aterbornesanitation(blacto#roas(schoolshos#itals(%el+arecenters(sho##in*centers( co$$unit"+acilities( #ars etc&
#& Wat#".u--5 O#erational%aterreuire$ento+=9$*isbein*$et+ro$theeleru%atersu##l" sche$e&
0 P'4#".u--5 O#eration#o%erreuire$ento+1:8to688MWisbein*$etthrou*hca#ti!e#o%er #lant&Theca#acit"o+the#o%er#lantis6:9&5$%0.Pise3#ortin*aroun98MWPo%er
to
AP.E&
$A+6#"t%.%n$ 0isaha#atna$.teelPlantisalso+ollo%in*a!ertisin*(%hichisonea$on*the #ro$otional strate*ies& Print $eia rochures anboolets Posters anlea+lets Directories ."$bols o+ lo*s ill boars Dis#la"s
MAR?ETINGACTIVITIES 'ner inte*rate $aretin* so$e o+ the i$#ortant acti!ities o+ the $aretin* $ana*e$ent areas+ollo%sJ C o l l e c t i o n o+necessar"in+or$ation re*arin*$aretin* A n a l " s i s o+ theata anra%in*conclusion . e a r c h an e!elo#$entsta*eo+ ne% $aretin*techniues T o chal outetaile $aretin*#ro*ra$$e T o i$#le$ent that $aretin*#ro*ra$$e T o coorinate bet%een the%ants o+ thecusto$ersan theirsatis+action&
CHANNELSOF DISTRIBUTION Distributionchannelscanbecharacteri)eb"thenu$bero+channelle!els&Each
28
$ile$an%ho#er+or$sso$e%orinbrin*in*the#rouctantitlecloserto+inalbu"er constitutes a channels le!el&
PROMOTION Pro$otionisthescienti+ictechniueso+co$$unicationre*arin*theualit"o+ #rouctsthrou*h%hichconsu$ers*ettono%aboutthe$eritane$eritsto$ort*a*e antoo!erallin+or$in* the#otentialcusto$ers#ro$otionaltechniuesi&e&a!ertisin* #ublicit" an #ersonal sellin* shoul be use& These are the real an $a,or tools o+ #ro$otionalacti!ities&Accorin* toW&&.tantionQ#ro$otionisane3ercisetinin+or$ation an in+luence&
MAJOR AWARDS WON BY VSP •
•
•
Inia Pri"aarshini 0rish$aitra +or$assi!e+orestation o+ RI2L1446-4=& 2ational Ener*"conser!ation A%ar 6886( +irst #ri)ein inte*rate sector& A%ar+ro$AnhraPraesh#ollutioncontroloar+orsi*ni+icant%oroncalenar Prouction technolo*ies&
•
.econ #ri)e +or RI2L sstallsat international Trae Fair&
•
.uccess+ul Re-Certi+icateorI.O 4881-6888
•
'"o*E3cellence*ol$eal a%ar +ore3cellencein .teelInustr"
•
Golen Peacoc ?1st Pri)e@ Q2ational ualit"A%ar-1449&
•
‟
2ehru Me$orial 2ational A%ar +or Pollution control 1446-4= >144=-4<&
•
est Mana*e$ent A%ar
•
Is#act .urashaPurasar?1st #ri)e@ +orlon*est accient +ree#erio( 1441-144<&
•
Rollin*shiel +or QEcolo*ical #rotectionb"$inistr"o+ in+or$ation >roa Castin*&
•
Greensticsa+et"sil!erA%ar+or6886-688=in.teel.ector+ori$#le$entin*best sa+et"stanars&
•
I2.AA2Or*ani)ationalE3cellenceA%arinstituteb"theIniannationalsu**estion .che$es associate+orthe"ear 688<&
•
PM sTro#h"+or ‟
688<-6885&
29
30
MAR?ETING DEPARTMENT 0I.AKHAPAT2AM .TEEL PLA2T
I
THE FOLLOWING STEPS ARE FOLLOWED FOR PROCEEDING WITH ANY SALE
1& Maintainin* o+ atabase o+ $aterials( s#eci+ication o+ $aterials ( stora*e +acilities( loain* +acilities( #ricin* ( uties( le!ies( co$#laints( test certi+icates( +or$ats etc &in res#ect o+ iron > steel #roucts 6& uil u# o+ custo$er atabase throu*h $aret in+or$ation ( ,ournals( in+or$ation on co$#etitors( a##lications o+ the #roucts etc&& An $aintain a atabase o+ #rices o+ our co$#etitors& =& .tu" an anal")e the custo$er reuire$ents an *i!e +eebac to #rouction units re*arin* #rouct s#eci+ications ualit"& <& For$ulate annul #rouction #lan base on custo$er reuire$ents b" the $ile o+ Februar" +or the ne3t +inancial "ear& 5& For$ulate annual #rouction #lan base on annul $aretin* #lan b" the en o+ Februar"( +or the ne3t +inancial "ear b" *i!in* $onthl" $ill%ise brea u#s& 9& Dis#atch o+ $aterials to branch stoc"ars as #er their reuire$ents to $eet their $onthl" tar*ets&
II
'+# '0 .#%n$ : .ellin* the +inishese$i +inishe #roucts b" an" one o+ the +ollo%in* $oes& a& b& c& & e& +& *& h&
III
Free sales .hortlon* ter$ contracts Tener sales .ales uner a##ro!e $aretin* tools?iscountcreit sales@ .ales on ne*otiate basis e- auction sales DLD sche$e C.A sche$e
SERVICE OF CONTRACTS/SALES:
ase on #rouction #lan( stoc holin*s an lon* ter$ contracts on han( o++er letters are sent to the lon* ter$ custo$ers& For the balance $aterials( inti$ation letters are sent to #ros#ecti!e custo$ers re*arin* the a!ailabilit" o+ the $aterials an issue o++er letters( i+ the custo$ers are intereste to li+t the $aterial& The o++er inicates the #rice o+ the $aterial an
31
also inicates concessional rate o+ sales ta3 a!ailable on sub$ission o+ statutor" +or$s an +ull rate o+ sales ta3 a##licable other%ise&
IV DELIVERY ORDER: The custo$er #a"s the a$ount b" %a" o+ e$an ra+t #a" orer cheue etc& to +inance e3ecuti!e o+ branch sales o++ice& Once the +inance e3ecuti!e is satis+ie %ith the +inancial arran*e$ent he issues $one" recei#t to custo$er& In case o+ letter o+ creit an *uarantee( the e3ecuti!e scrutini)es it +or acce#tabilit" an co$$unicates to $aretin* e3ecuti!e +or issue o+ eli!er" orer&
V COORDINATION WITH PPM AND PRODUCTION DEPT J Maretin* is#atch #lannin* section hols $eetin* %ith the #ersonnel o+ PPMTra++ic an $ills at the sho# +loor e!er"a"& The stocs( is#atches( %a*on a!ailabilit"( clearances reuire +or $aterials at sho# +loor are iscusse& Rail inents are inicate to PPM > Tra++ic& Tra++ic in turn raises inent on Rail%a"s on ail" basis& Dis#atch o+ $aterial b" roa $o!e$ent to !arious stoc"ars also iscusse& Internal $o!e$ent o+ $aterial to C&Gate ( 2E an 2. are also iscusse& esies the abo!e ( %eel" coorination $eetin* is conucte at the le!el o+ ED ?Wors@ alon* %ith GM ?Mt*@&
VI CUSTOMER SATISFACTION: At 0.P( custo$er satis+action is no lon*er the ulti$ate %atch%or& 0.Ps business strate*ies to-a" +ocus on e!elo#in* custo$er lo"alt"& Custo$er satis+action is ,ust the be*innin* o+ this #rocess &0.P +ocuses on a +e% critical issues in #ursuit o+ this ne% lo"alt" centere a##roach( %hich hel# in satis+"in* custo$er an achie!in* #ro+itabilit" +or the co$#an" & The co$bination o+ #rouct ualit"( su##ortin* ser!ices an the abilit" to #ro!ie inno!ati!e an ualit" #roucts an ser!ices e+ine !alue &0.P stri!es to e++icientl" control an strie a
32
balance bet%een the #rice( ualit" inno!ation an i$a*e( %hich *o a lon* %a" in eter$inin* custo$er lo"alt" as %ell as co$#an"s +inancial #er+or$ance &besies these( 0.P also taes into consieration e3ternal +actors such as business en!iron$ent an custo$er characteristics&
VII DISTRIBUTION NETWOR?: 0.P has branch o++ices an stoc"ar at all $a,or consu$in* centers in Inia( $anne b" e3#erience $aretin* #ro+essionals& The +iel #ersonnel unertae e3tensi!e custo$er contact #ro*ra$$es incluin* +reuent !isits to custo$er #re$ises in the area +or iscussion an assessin* their i$$eiate an +uture reuire$ents& the branch $ana*ers re*ularl" or*ani)es custo$er $eets at branch o++ices an these $eets are attene at least once in three $onths b" re*ional $ana*ers an .r&E3ecuti!es +ro$ H& The branches( throu*h this e3ercise ( sen re*ular +eebac to H re*arin* the current an e$er*in* reuire$ents an e$an #atterns in their res#ecti!e areas& uarterl" an $onthl" #rouction an is#atch #lans are $ae base on these #ro,ections as %ell e3#ort orers&
VIII NEW MAR?ETS: 0.P continuousl" interacts %ith structural esi*ners +abricators an consultants all o!er the countr" an #ro,ects an construction authorities o+ central an state Go!ts&+or broa banin* custo$er base as %ell as assess the $aret +or construction steel in the countr"& An inter isci#linar" *rou# has been constitute +or the e!elo#$ent o+ s#ecial steel *raes to $eet the s#eci+ic reuire$ents o+ selecte custo$ers& Thus 0.P +unnels in+or$ation on custo$er reuire$ents into the business s"ste$s an culture o+ the or*ani)ation& Lastl"( %ith a !ie% to ascertain the e++ecti!eness o+ 0.Ps !arious initiati!es( custo$ers o#inion sur!e" is carrie out e!er" "ear throu*h an e3ternal re#ute a*enc"& These sur!e"s brin* a%areness about the stren*th an %eanesses o+ 0.P %ith re*ar to e" areas eter$inin* custo$er satis+action le!el& Concerte e++orts are taen to i$#ro!e on the reuire areas& esies this( 0.P also ee#s trac o+ co$#etitors e++orts to%ars custo$er satis+action&
33
I> STOC?YARD ITS ORGANISATION & FUNCTIONS .toc"ars #la" an i$#ortant role in the $aretin* o#erations& The" hel# storin* the co$#an"s $aterials at s#eci+ic locations an subseuent istribution so that $a3i$u$ nu$ber o+ custo$er coul be ser!e easil"& The" hel# in #ro$#t $o!e$ent o+ $aterials +ro$ the #lant to the custo$er( there b" ensurin* continuous #rouction an a!ailabilit" o+ $aterials&
BROAD OBJECTIVES OF STOC?YARD: A@ To ensure $o!e$ent o+ $aterial #rouce at the #lant( thereb" ensurin* continuous #rouction at +ull ca#acit"& @ To +acilitate econo$ic rollin* at the #lant as #er the #lan an $o!e$ent o+ $aterials in bul +ro$ the #lant to consu$#tion centers& C@ To store $aterials recei!e +ro$ the #lant an su##l" to consu$ers in con!enient lots an in the $i3 reuire b" the$& D@ To a!oi %aitin* ti$e o+ the custo$er an to ensure #ro$#t +ul+ill$ent o+ e$an& E@ To istribute $aterial uni+or$l" so as to a!oi acute shorta*es hea!" sur#lus&
TYPE OF STOC?YARDS
i@
O%n stoc"ars- the co$#an" #rocures lan ( e!elo#$ents it ( arran*es +or rail%a" siin*( %ei*hbri*e an other +acilities an *enerall" o#ts +or a hanlin* contractor & In such cases the hanlin* a*ent is res#onsible +or recei#t( stora*e eli!er" an custo" o+ $aterials&
ii@
.toc"ar %ith consi*n$ent a*ents in this case the consi*n$ent a*ents arran*es +or lan an +acilities +or hanlin* an stora*e o+ $aterials incluin* sa+e custo" $aterials&
34
iii@
.toc"ar %ith consi*n$ent sales a*ents in this case( the consi*n$ent sales a*ents is res#onsible +or recei#t( stora*e( sellin*( o+ $aterials& This stoc"ar an in+rastructure belon*s to hi$&
HANDLING OF MATERILAS IN STOC?YARDS Hanlin* o+ $aterials in stoc"ars is *enerall" one b" a hanlin* contractor consi*n$ent a*ent usin* his o%n eui#$ent an labour& As#ects consiere in hanlin*J 1& T"#e o+ the #rouct sha#e ( si)e ( len*th ( bunle i$ensions ( %ei*ht #er #iece #acet ( ualit" etc& 6& La"out o+ siin* an its ca#acit"& =& Possible eterioration urin* stora*e& <& T"#e o+ %a*ons liel" to be recei!e & 5& a!era*e ail" eli!eries 9& .ha#e an si)e o+ stoc"ar area& 7& 2ee to ensure a!ailabilit" o+ siin* at all ti$es to recei!e in co$in* consi*n$ents& :& Location o+ a##roach roa to the stoc"ar&
FUNCTIONS CARRIED OUT IN THE STOC?YARD 1& Recei#t o+ $aterials +ro$ the #lant (or +ro$ other stoc"ar b" railroa 6& .ortin* o+ $aterials =& .tacin* in easil" ienti+iable an oerel" $anner (#rouct %ise (lot %ise ( si)e an ualit" %ise <& Wei*h$ent an eli!er" o+ $aterials to custo$ers& 5& Prouction o+ $aterials +ro$ a$a*e eterioration in stora*e 9& 'tili)ation an $aintenance o+ assets& 7& Control o+ o#eratin* cost in the stoc"ar& :& Maintainin* recors Uaccounts o+ recei#ts( eli!er" an stoc o+ $aterials
35
4& Ph"sical !eri+ication o+ stocs 18& I$#le$entation o+ !arious statutor" acts an rules 11& Furnishin* #erioical re#ortsUreturns 16& .ecurit" o+ the $aterials
RECIEPT OF MATERIALS THROUGH OWN SIDING 1&
Acti!ities #rior to arri!al o+ %a*onJ Maretin* H sens tentati!e $onthl" is#atch #lan an %eel" is#atch a!ice to branch throu*h re*ion& With these ocu$ents eli!er" can be taen e!en %ithout ori*inal ocu$ents b" e3ecutin* ine$nit" bon %ith the rail%a"s
6& Penin* %a*ons =& Arri!al o+ %a*ons <& 'nloain* o+ $aterials 5& Wei*h$ent o+ inco$in* $aterials in stoc"ar
RECIEPT OF MATERIALS THROUGH PUBLIC SIDING 1& Acti!ities #rior to arri!al o+ %a*ons& 6& 'nloain* at #ublic siin* =& Trans#ortation o+ $aterials to stoc "ar&
STAC?ING OF MATERIALS 1@ Pre#aration o+ stacin* #lan 6@ Metho o+ stacin* =@ Mini$isin* cost o+ stacin* <@ De$$ura*e 5@ Internal trans#ortation +or stacin* 9@ .i*n boar#aintin* 7@ .ortin* :@ Docu$entation
36
STOC? ACCOUNTING The ob,ecti!es o+ stoc accountin* are to ocu$ent the recei#ts issues an stoc on han a@ To ienti+" #erioical shorta*es an sur#luses( i+ an" -Lot car -Fillin* recei#ts in Lot car -Fillin* issues in Lot car -Fillin* balance in Lot car -.u$$er" car +or ail" $onitorin* -.toc cu$ sales state$ent ?.C..@
STOC? VERIFICATION .toc 0eri+ication hel#s in the +ollo%in* a@ To e3ercise chec an control on stocs b@ To ienti+" in ti$e( the iscre#ancies i+ an" in stoc an ascertainin* reasons +or the sa$e an to# ensure reco!er" +ro$ consi*n$ents a*entsUhanlin* contractors c@ To arri!e at true > +air !aluation o+ stoc +or the #ur#ose o+ stoc #ro+it > lose account an @ To co$#l" %ith statutor" obli*ations
DIVERSION OF MATERIAL & ACCOUNTING OF DIVERSIONS Di!ersion o+ $aterials +ro$ one stoc"ar to another a@ Due to %ron* eli!er" b" rail%a"s b@ Materials i!erte to $eet critical situations c@ Inter stoc"ar trans+er o+ stoc
STRUCTURE OF MAKRKETING DEPARTMENT, RINL:
Marketing System at RINL
37
HQ Sales •
•
•
•
Co""#ction o% &on#' Cr#dit Contro" ()"#s o% r)d#s ()"# to pro+#ct
MS Func!"ns •
• •
•
#$%&"'ucs Sales
Product Cod#s contro" ()"#s R#ports ()"#s An)"'sis &( R#ports to ,P
•
•
• •
Co""#ction o% &on#' Cr#dit Contro" ()"#s on #rm
Re(!"nal Sales O)ce •
#C GATE • •
•
•
(toc r)ns%#r to r)nc#s ()"#s isp)tc#s #ic"# #ntr
•
5 R#.ions /AR (R ER R R Contro" o% pric#s Administr)tion
#&anc* Sales O)ce +- #&anc*es.
#&anc* s"c/$a&' +- s"c/ $a&'s. • • • •
)ndin. o% R#c#ipt ()"#s disp)tc#s (toc r)ns%#r (t)tutor' R#.ist#rs
THE NETWORK OF VSP
• • • • •
Co""#ction o% &on#' Cr#dit Contro" ()"#s to r)d#rs ()"#s to r)d#rs ()"#s to Pro+#ct Custom#rs
38
The 0.P $aretin* e#art$ent has *ot total $an#o%er o+ =81 out o+ %hich 18: $an#o%er is at Hea uarters an the rest are in !arious branches&
39
For +acilitatin* the sales an increasin* the custo$er base b" sho%in* the #resence all o!er( the %hole count" is i!ie into +i!e re*ions an each re*ion has
a re*ional o++ice %hich coorinates %ith the branch sales o++ices in their
res#ecti!e re*ions& Follo%in* are the re*ions %ith their hea-uartersJ 2orth ?Delhi@ .outh ?Chennai@ East ?Kolata@ West ?Mu$bai@ Anhra ?0isaha#atna$@ Alto*ether there are 6< branches& esies the" also ha!e consi*n$ent sales a*encies at three #laces a$$u( Gu%ahati an in Ranchi& It is also e3#ortin* the #roucts to !arious estinations such as .ri Lana( '.( an*laesh( Mile East( .in*a#ore an other& E3#ort o+ $aterials also taes #lace +or 2e#al but throu*h roa onl"&
Prouction De#art$ent +or !arious #roucts as #er e$an in the $aret( %hich %ill be assesse throu*h !arious $oes& Once the #rouction is co$#lete( $aterial #rouce is to is#atch to the esi*nate estination at the ri*ht ti$e throu*h !arious $oes o+ trans#ortation&
7UALITY MANAGEMENT SYSTEM: Welco$e to the ualit" Co$#laint ."ste$?C.@ o+ 0isaha#atna$ .teel Plant& This s"ste$ is use +or re*isterin* an settlin* the custo$erBs co$#laints& ualit" co$#laint is base on $an" +actors lie i$ension( ualit"( uantit" o+ the $aterial etc&( Custo$ers are reueste to $ae use o+ this s"ste$ to settle ualit" Co$#laints o+ the #urchase $aterial &About C.J Custo$er has to enter all the etails o+ the $aterial then co$#laint nu$ber %ill be *enerate& C. has total : sta*es incluin* the re*istration sta*e& A+ter each an e!er" sta*e custo$er %ill be inti$ate %ith the u#ate status o+ the co$#laint an at an"ti$e custo$er can trac his co$#laint status %ith the co$#laint nu$ber&
40
CHAPTER-= METHODOLOGY
METHODOLOGY
41
SIGNIFICANCEOFTHESTUDY
Thestu"is!er"si*ni+icanttounerstantheistributionchannels& Thestu"isi$#ortanttono%theealerssatis+actionle!el+orthe ealershi#& Thestu"isi$#ortanttono%theealerssatis+actionle!elinthe#riceo+ thesteel& Thestu"isi$#ortanttono%theealers#re+erence +ortheualit"& Thestu"is!er"i$#ortanttono%thesales!olu$e& Thestu"isalsoanal"sesthee++ecti!e$eia+ori$#ro!in*thesales& Thestu"isi$#ortanttono%a!ailabilit"o+thesteel Thestu"isi$#ortanttono%$ar*insinthesteelinustries
OBJECTIVES OF THE STUDY
OBJECTIVES:
To +in out the istribution channels o+ !i)a* steel #lant in 0isaha#atna$ istrict& To co$#are the istribution s"ste$ o+ !i)a* steel %ith other steel co$#anies& To +in out the a!ertise$ent e++icienc" o+ 0i)a* steel& To +in out the $aretin* situation o+ 0i)a* steel +ro$ others& To +in out the #resent #roble$s +ace b" ealers& To +in out the an" ne% sche$e reuire b" the ealers& To *i!e !aluable su**estions to the co$#an" +or increase the sales !olu$e&
42
SCOPE OF THE STUDY
Thesco#eo+thestu"iscon+ir$etoistributionchannel%iths#ecialre+erenceto the/VISA?HAPATNAM STEELPLANT/ in0isaha#atna$ istrict&
Thestu"canhel#tothe$ana*e$ent tono%the+actors%h"theirsales!olu$es&
DATA ANALYSIS:
43
RESEARCH DESIGN: .ince the #o#ulation runs into se!eral thousans( it is not #ossible to conuct a census sur!e"& There+ore a sa$#le sur!e" is conucte usin* a uota sa$#lin*&
SAMPLE SIE: The total sa$#le si)e is 58&
SOURCES OF DATA To #ursue the $entione ob,ecti!es( reuire ata ha been collecte throu*h a@ Pri$ar" Data& b@ .econar" Data&
P"%a"5 Data is the ata( %hich is collecte irectl" b" irect #ersonal inter!ie%( inter!ie%( inirect oral in!esti*ation( In+or$ation recei!e throu*h local a*ents( ra+tin* a scheule( ra+tin* a uestionnaire&
S#'n+a"5 Data is the ata( %hich is collecte +ro$ the !arious boos( $a*a)ine an $aterial( re#orts( etc& The ata %hich is store in the or*ani)ation an #ro!ie b" the HR #eo#le are also seconar" ata( !arious in+or$ation %ere taen out re*arin* that sub,ect as %ell other sub,ect +ro$ !arious sources an store&
DATA COLLECTION METHOD The in+or$ation +or the stu" has been obtaine +ro$ t%o sources na$el"J
Pri$ar" Data .econar" Data
P"%a"5 Data: In the ue course o+ the research stu" the #ri$ar" ata %as collecte throu*h a structure uestionnaire& The uestionnaire is the one in %hich all uestions an ans%ers are s#eci+ie& Here there %ill be less sco#e +or co$$ents $ae in the o%n %or o+ the res#onents&
S#'n+a"5 Data: The seconar" ata is collecte +ro$ !arious sources lie $a*a)ines( co$#an" recors( internet %ebsites(boos&
44
LIMITATION OF THE STUDY
One o+ the i$#ortant o+ the stu" %as lac o+ ti$e thou*h the res#onent to the stu"
%as !ast ue to the ti$e constraints the sa$#le si)e %as li$ite& The researcher has i++icult" %ith $ost o+ the res#onents %ho %as not %illin* to
coo#erate %ith stu"( as the" %ere !er" bus" %ith their o%n %or& The research ha also i++icult" %ith the res#onents because the" i not +ill u# the
uestionnaire in #ro#er ti$e& Another li$itation o+ the stu" %as con+ine %ith not onl" retailers but also consu$ers +or sur!e" o+ this stu"&
45
CHAPTER3 DATA ANALYSIS & INTERPRETATION
TABLE NO:*
46
ANALYSIS OF THE STUDY STEEL DEALERSHIP TA?EN BY DEALERS BRAND
NO OF RESPONDENTS
PERCENTAGE
RO'RKELA .TEEL PLA2T HILAI .TEEL PLA2T DH'RGAP'R .TEELPLA2T OKARO .TEEL PLA2T 0I.AKHAPAT2AM .TEEL PLA2T TOTAL
9 4 : 4 1:
16 1: 19 1: =9
58
188
INFERENCE:
Fro$ the abo!e table( it is in+erre that 16; o+ the res#onents are ha!in* the Rourela steel #lant ealershi#(1:; o+ the res#onents are ha!in* the bhilai steel #lant ealershi#(19; o+ the res#onent are ha!in* the hur*a#ur steel #lant ealershi#(1:; o+ the res#onents are ha!in* the boaro steel #lant an =9; o+ the res#onents are ha!in* the 0isaha#atna$ steel #lant ealershi#&
47
STEEL DEALERSHIP TA?EN BY DEALERS 50 45 40 35 30 25 20 15 10 5 0
TABLE NO:;
48
HIGH SALES VOLUME IN STEEL INDUSTRY BRAND RO'RKELA .TEEL PLA2T HILAI .TEEL PLA2T DH'RGAP'R .&P OKARO .&P 0I.AKHAPAT2AM .&P TOTAL
NO OF RESPONDENT 7 11 7 18 15 58
PERCENTAGE 1< 66 1< 68 =8 188
INFERENCE: Fro$ the abo!e table(it is in+erre that 1<; o+ the res#onents +eel that Rourela steel #lant is *ettin* hi*h sales !olu$e(66; o+ the res#onents +eel that bhilai steel #lant is *ettin* hi*h sales !olu$e(1<; o+ the res#onents +eel that huru*a#ur steel #lant is *ettin* hi*h sales !olu$e(68; o+ the res#onents +eel that boaro steel #lant is *ettin* hi*h sales !olu$e an =8; o+ the res#onents +eel that 0isaha#atna$ steel #lant is *ettin* hi*h sales !olu$e&
49
HIGH SALES VOLUME IN STEEL INDUSTRY 45 40 35 30 25 20 15 10 5 0
50
TABLE TABLE NO: NO : MOST VALUABLE SUPPLIERS BRAND
NO OF RESPONDENT
PERCENTAGE
RO'RKELA .&P HILAI .&P DH'RGAP'R .&P OKARO .&P 0I.AKHAPAT2AM .&P TOTAL
5 18 11 4 15 58
18 68 66 1: =8 18 8
INFERENCE: Fro$ the abo!e table( it is in+erre that 18; o+ the res#onents +eel that the Rourela steel #lant is $ost !aluable su##lier(68; s u##lier(68; o+ the res#onents +eel that tha t the bhilai steel #lant is $ost !aluable su##lier(66; o+ the res#onents +eel that the hur*a#ur steel #lant $ost !aluable su##lier(1:; o+ the res#onents +eel that the boaro steel #lant is $ost !aluable su##lier an =8; o+ the res#onent +eel that the 0isaha#atna$ steel #lant is $ost !aluable su##lier &
51
MOST VALUABLE VALUABLE SUPPLIERS 35 30 25 20 15 10 5 0
TA#LE NO 0 7UALITY OF THE VIAG STEEL
52
OVERALL RATE
NO OF RESPONDENTS
PERCENTAGE
EVCELLE2T 0ER GOOD GOOD A0ERAGE POOR TOTAL
1< : 1< : 9 58
6: 19 6: 19 16 1 88
INFERENCE:
Fro$ the abo!e table (it is in+erre that 6:; o+ the res#onents +eel that ualit" o+ the #rouct is e3cellent(19; e3cellen t(19; o+ the res#onents +eel that ualit" o+ the #rouct # rouct is !er" *oo(6:; *oo (6:; o+ the res#onents +eel that ualit" o+ the #rouct is *oo(19; o+ the res#onents +eel that ualit" o+ the #rouct is a!era*e an 16; o+ the res#onents +eel that ualit" o+ the #rouct is #oor&
7UALITY OF THE VIAG STEEL
53
35 30 25 20 15 10 5 0
TABLE NO:=
54
PRICE OF THE VIAG STEEL LEVEL OF SATISFACTION
NO OF THE RESPONDENTS
PERCENTAG E
HIGHL .ATI.FIED .ATI.FIED A0ERAGE DI..ATI.FIED HIGHL DI..ATI.FIED TOTAL
1< 11 9 : : 58
6: 66 16 19 19 18 8
INFERENCE:
Fro$ the abo!e table ( it is in+erre that 6:; o+ the res#onents are hi*hl" satis+ie %ith #rice(66; o+ the res#onents are satis+ie %ith #rice (16 ; o+ the res#onents +eel that a!era*e(66; o+ the res#onents are issatis+ies %ith #rice an #rice o+ the res#onents are hi*hl" issatis+ies %ith #rice&
PRICE OF THE VI1AG STEEL
55
30 25 20 15 10 5 0
TABLE NO :
56
FAST MOVING BRAND IN STEEL INDUSTRY
BRAN BRAND D
NO OF TH THE E RESP RESPON ONDE DENT NT
PERC PERCEN ENT TAGE
RO'RKELA .&P HILAI .&P DH'RGAP'R .&P OKARO .&P 0I.AKHAPAT2AM .&P TOTAL
7 7 18 4 17 58
1< 1< 68 1: =< 1 88
INFERENCE Fro$ the abo!e table (it is in+erre that 1<; o+ the res#onents +eel that Rourela steel #lant is +ast $o!in* in steel inustr"(1<; o+ the res#onents +eel that bhilai steel #lant is +ast $o!in* in steel inustr"(68; o+ the res#onents +eel that hur*a#ur steel #lant is +ast $o!in* in ste steel el in inus ustr tr" " (1:; (1:; o+ o+ the the res# res#on one ent ntss +eel +eel tha thatt boa boaro ro ste steel el #la #lant nt is is +ast +ast $o! $o!in in* * in steel inustr" an =<; o+ the res#onents +eel that 0isaha#atna$ steel #lant is +ast $o!in* in steel inustr"&
57
FAST MOVING #RAND IN STEEL INDUSTR2 40 35 30 25 20 15 10 5 0
58
TABLE NO : ORDER AND REPLACEMENT WITH VIAG STEEL LEVEL OF SATISFACTION
NO OF RESPONDENTS
PERCENTAG E
IG: (AI(;IE (AI(;IE AERAGE I((AI(;IE IG: I((AI(;IE ,A
17 6 11 8 8 50
34 12 22 16 16 100
INFERENCE:
Fro$ the abo!e table(it is in+erre that =<; o+ the res#onents are hi*hl" satis+ie %ith orer an re#lace$ent o+ the !i)a* steel (16; o+ the res#onent are satis+ie %ith orer an re#lace$ent o+ the !i)a* steel(66; o+ the res#onents +eel that a!era*e %ith orer an re#lace$ent o+ the !i)a* steel(19; o+ the res#onents are issatis+ie %ith orer an re#lace$ent o+ the !i)a* steel an 19; o+ the res#onents are hi*hl" issatis+ie %ith orer an re#lace$ent o+ the !i)a* steel&
59
ORDER AND REPLACEMENT WITH VI1AG STEEL
40 35 30 25 20 15 10 5 0
TABLE NO: AVAILABILITY OF THE VIAG STEEL
60
LEVEL OF SATISFACTION
NO OF RESPONDENTS
HIGHL .AT.IFIED .ATI.FIED A0ERAGE DI..ATI.FIED HIGHL DI..ATIFIED TOTAL
16 1< : : : 58
PERCENTAG E 6< 6: 19 19 19 188
INFERENCE:
Fro$ the abo!e table it is in+erre that 6<; o+ the res#onents are hi*hl" satis+ies %ith a!ailabilit" o+ the #rouct(6:; o+ the res#onents are satis+ies a!ailabilit" o+ the #rouct(19; o+ the res#onents are a!era*e %ith a!ailabilit" o+ the #rouct( 19; o+ the res#onents are issatis+ie %ith a!ailabilit" o+ the #rouct an ( 19; o+ the res#onents are hi*hl" issatis+ie %ith a!ailabilit" o+ the #rouct
61
AVAILA#ILIT2 OF THE VI1AG STEEL
35 30 25 20 15 10 5 0
TABLE NO:< MARGINS OFFERED BY VIAG STEEL PLANT
62
LEVEL OF SATISFACTION
NO OF RESPONDENTS
PERCENTAGE
HIGHL .ATI.FIED .ATI.FIED A0ERAGE DI..ATI.FIED HIGHL DI..ATI.FIED TOTAL
15 : 1= : 9 58
=8 19 69 19 16 188
INFERENCE
Fro$ the abo!e table it in+erre that =8; o+ the res#onents are hi*hl" satis+ie %ith $ar*ins o++ere b" the #rouct( 19; o+ the res#onents are satis+ie %ith $ar*ins o++ere b" the #rouct( 69; o+ the res#onents are a!era*e %ith $ar*ins o++ere b" the #rouct(19 ; o+ the res#onents are issatis+ie %ith $ar*ins o++ere b" the #rouct( 16; o+ the res#onents are hi*hl" issatis+ie %ith $ar*ins o++ere b" the #rouct&
MARGINS OFFERED #2 VI1AG STEEL PLANT
63
35 30 25 20 15 10 5 0
TABLE NO:*9
64
SATISFIED WITH VIAG STEEL DEALERSHIP
SATISFIED
E. 2O TOTAL
NO OF RESPONDENT 6: 66 58
PERCENTAGE
59 << 188
In0#"#n#
Fro$ the abo!e table( itisin+erre that59;o+the res#onents s a t i s + i e %iththe0i)a*steelealershi#(another=:;o+theres#onentsnotsatis+ie%ith the0i)a*steelealershi#&
65
SATISFIED WITH VI1AG STEEL DEALERSHIP
60 50 40 :E(
30
,
20 10 0 1
66
TABLE NO : ** ADVERTISEMENT OF THE VIAG STEEL ADVERTISMENT
NO OF THE RESPONDENT
PERCENTAGE
TOO HIGH HIGH MODERATE LOW TOO LOW TOTAL
15 4 : 4 4 58
=8 1: 19 1: 1: 188
I;ERECE Fro$ the abo!e table it is in+erre that =8; o+ the res#onents +eel that a!t& o++ere b" !i)a* steel is too hi*h( 1:; o+ the res#onents +eel that a!t& o++ere b" !i)a* steel is hi*h( 19; o+ the res#onents +eel that a!t& o++ere b" !i)a* steel is $oerate( 1:; o+ the res#onents +eel that a!t& o++ere b" !i)a* steel is lo%( 1:; o+ the res#onents +eel that a!t& o++ere b" !i)a* steel is too lo%&
67
ADVERTISEMENT OF THE VI1AG STEEL 35 30 25 20 15 10 5 0 ,, IG
IG
&,ERAE
TABLE NO:*;
,
,, ,
68
SALES PROMOTIONAL EFFORTS OF THE VIAG STEEL OVERALL RATE
NO OF RESPONDENT
PERCENTAGE
EVCELLE2T 0ER GOOD GOOD A0ERAGE POOR TOTAL
1< 7 11 7 11 58
6: 1< 66 1< 66 188
I2FERE2CE Fro$ the abo!e table it is in+erre that 6:; o+ the res#onents +eel that sales #ro$otional is e3cellent( 1<; o+ the res#onents +eel that sales #ro$otional is !er" *oo( 66; o+ the res#onents +eel that sales #ro$otional is *oo( 1<; o+ the res#onents +eel that sales #ro$otional is a!era*e( 66; o+ the res#onents +eel that sales #ro$otional is #oor
69
SALES PROMOTIONAL EFFORTS OF THE VI1AG STEEL
30 25 20 15 10 5 0 E
G,,
TABLE NO:*
AERAGE
P,,R
70
LIFETIME OF THE OVERALL STEEL BRAND
NO OF RESPONDENTS
PERCENTAGE
RO'RKELA .&P HILAI .&P DH'RGAP'R .&P OKARO .&P 0I.AKHAPAT2AM .&P TOTAL
7 1= < 18 19 58
1< 69 : 68 =6 188
I2FERE2CEJ Fro$ the abo!e table (it is in+erre that 1<; o+ the res#onents +eel that Rourela steel is ha!in* $ore li+e ti$e( 69; o+ the res#onents +eel that bhilai steel is ha!in* $ore li+e ti$e( :; o+ the res#onents +eel that hur*a#ur steel is ha!in* $ore li+e ti$e( 68; o+ the res#onents +eel that boaro steel is ha!in* $ore li+e ti$e( =6; o+ the res#onents +eel that 0isaha#atna$ steel is ha!in* $ore li+e ti$e
71
LIFETIME OF THE OVERALL STEEL 35 30 25 20 15 10 5 0
TABLE NO: * RELIABILITY OF THE VIAG STEEL OVERALL RATE
NO OF RESPONDENTS
PERCENTAGE
EVCELLE2T 0ER GOOD GOOD
15 4 11
=8 1: 66
72
A0ERAGE POOR TOTAL
7 : 58
1< 19 188
I2FERE2CEJ Fro$ the abo!e table( it is in+erre that =8; o+ the res#onents +eel that reliabilit" o+ the #rouct is e3cellent( 1:; o+ the res#onents +eel that reliabilit" o+ the #rouct is !er" *oo( 66; o+ the res#onents +eel that reliabilit" o+ the #rouct is *oo( 1<; o+ the res#onents +eel that reliabilit" o+ the #rouct is a!era*e( 19; o+ the res#onents +eel that reliabilit" o+ the #rouct is #oor&
RELIA#ILIT2 OF THE VI1AG STEEL
73
35 30 25 20 15 10 5 0 E
G,,
AERAGE
P,,R
TABLE NO : *= PAYMENT TERMS OF THE VIAG STEEL OVERALL RATE
NO OF RESPONDENT
PERCENTAGE
EVCELLE2T 0ER GOOD GOOD A0ERAGE
19 : : 11
=6 19 19 66
74
POOR TOTAL
7 58
1< 188
INFERENCE:
Fro$ the abo!e table it is in+erre that =6; o+ the res#onent +eel e3cellent %ith #a"$ent ter$s o+ the !i)a* steel(19; the res#onent +eel !er" *oo %ith #a"$ent ter$s o+ the !i)a* steel( 19; the res#onent +eel *oo %ith #a"$ent ter$s o+ the !i)a* steel(66; the res#onent +eel a!era*e %ith #a"$ent ter$s o+ the !i)a* steel( 1<; the res#onent +eel #oor %ith #a"$ent ter$s o+ the !i)a* steel
PA2MENT TERMS OF THE VI1AG STEEL
75
35 30 25 20 15 10 5 0 E
G,,
AERAGE
P,,R
TABLE NO: * MAR?ET RESEARCH IN THE STEEL INDUSTRY BRAND
NO OF RESPONDENTS
PERCENTAGE
76
RO'RKELA .&P HILAI .&P DH'RGAP'R .&P OKARO .&P 0I.AKHAPAT2AM .&P TOTAL
4 18 : 18 1= 58
1: 68 19 68 69 188
I2FERE2CEJ Fro$ the abo!e table it is in+erre that 1:; o+ the res#onents +eel that Rourela steel #lant is oin* $aret research in steel inustr"( 68; o+ the res#onents +eel that bhilai steel #lant is oin* $aret research in steel inustr"( 19; o+ the res#onents +eel that hur*a#ur steel #lant is oin* $aret research in steel inustr"( ( 68; o+ the res#onents +eel that boaro steel #lant is oin* $aret research in steel inustr"(an 69; o+ the res#onents +eel that 0isaha#atna$ steel #lant is oin* $aret research in steel inustr"&
MARKET RESEARCH IN STEEL INDUSTR2
77
30 25 20 15 10 5 0
TABLE NO:* DELIEVERY PERIOD BY VIAG STEEL DELIEVERY PERIOD 1-= DA. =-5
NO OF THE RESPONDENT 1< 11
PERCENTAGE 6: 66
78
5-18 18-1= 1=-15 TOTAL
: : 4 58
19 19 1: 188
I2FERE2CEJ Fro$ the abo!e table it is in+erre that 6:; o+ the res#onents ans%ere that %ithin 1-= a"s the" are *ettin* their #rouct( 66; o+ the res#onents ans%ere that %ithin =-5 a"s the" are *ettin* their #rouct( 19; o+ the res#onents ans%ere that %ithin 5-18 a"s the" are *ettin* their #rouct(19; o+ the res#onents ans%ere that %ithin 18-1= a"s the" are *ettin* their #rouct( 1:; o+ the res#onents ans%ere that %ithin 1=-15 a"s the" are *ettin* their #rouct&
79
DELIEVER2 PERIOD #2 VI1AG STEEL
30 25 20 15 10 5 0 1-3 A:(
3-5d)'s
5-10d)'s
10-13d)'s
13-15
CHAPTER -5 FI2DI2G.( .'GGE.TIO2. A2D CO2CL'.IO2.
80
FINDINGS OF THE STUDY =9; o+ the res#onents are ha!in* 0isaha#atna$ steel #lant ealershi#& =8; o+ the res#onents +eels that 0isaha#atna$ steel #lant is ha!in* hi*h sales !olu$e& =8; o+ the res#onents are consierin* $ost !aluable su##liers +ro$ the ealers #oint o+ !ie%& 6:; o+ the res#onents +eel that ualit" o+ the #rouct is e3cellent& An 16; o+ the res#onents +eel ualit" is #oor&
81
6:; o+ the res#onents satis+ie %ith #rice o+ the #rouct&an 19; o+ the res#onent not satis+ie %ith the #rice o+ the #roucts& =<; o+ 0isaha#atna$ steel #lant is $o!in* +ast bran in steel inustr"& =<; o+ the res#onent +eel that orer an re#lace$ent is hi*hl" sati+ie & an 19; o+ the res#onents +eel that hi*hl" issatis+ie& 6:; o+ the res#onents satis+ie %ith a!ailabilit" o+ the #rouct ( an 19; o+ the res#onents are hi*hl" issatis+ie& =8; o+ the res#onents hi*hl" satis+ie %ith $ar*ins o++ere b" the #rouct& An 16; o+ the res#onents +eel that $ar*ins o+ the #rouct are hi*hl" issatis+ie&
59; o+ the res#onents satis+ie %ith 0isaha#atna$ steel #lant ealershi#& An <<; o+ the res#onents not satis+ie& =8; o+ the res#onents +eel that a!ertise$ent o++ere b" 0isaha#atna$ steel #lant is too hi*h& An 1:; o+ the res#onents +eel that a!ertise$ent is lo%& 6:; o+ the res#onents +eel that sales #ro$otional e++orts o+ the 0isaha#atna$ steel #lant are e3cellent& 66; o+ the res#onents +eel that #oor& =6; o+ the 0isaha#atna$ steel #lant #roucts are ha!in* $ore li+e ti$e& An :; Dhur*a#ur steel #lant #rouct has less li+e ti$e +ro$ others& =8; o+ the res#onents satis+ie %ith reliabilit" o+ the 0i)a* steel& An 19; o+ the res#onents not satis+ie& =6; o+ the res#onents satis+ie %ith the #a"$ent ter$s o+ the 0i)a* steel an 1<; o+ the res#onents not satis+ie& 6:; o+ the res#onents satis+ie %ith eli!er" #erio o+ the #rouct %ithin = a"s& An 19; o+ the res#onents not satis+ie&
82
SUGGESTION
0isaha#atna$ steel #lant shoul concentrate in creit +acilit" o+ the ealers& 0isaha#atna$ steel #lant shoul concentrate on sales $an !isit +or %ie $aretin* 0isaha#atna$ steel #lant shoul o $ore $aret research an *et +ee bac& 0isaha#atna$ steel #lant shoul concentrate to +ul+il the ser!ice +or the ealers reuire&
83
CONCLUSION A+ter anal"sis o+ the ata %e ha!e conclue that 0isaha#atna$ steel #lant has conuere +irst #lace because the sales !olu$e o+ it is !er" hi*h co$#are than others an the a%areness o+ the 0isaha#atna$ steel #lant is !er" hi*h in 0isaha#atna$ istrict& Moreo!er !isha#atna$ has *oo ealershi# %ith ealers& 0isaha#atna$ steel #lant has to i$#ro!e its sales #ro$otional e++orts as %ell as +ollo% so$e strate*ies throu*h e++ecti!e $aret research an *et +eebac +ro$ their consu$ers an custo$ers?ealers@& An *i!e $ore a!ertise$ent so that $o!e #o%er+ul than others an +i3e the stanar #rice& At the sa$e ti$e ualit" (a!ailabilit" an elie!er" ti$e o+ the 0isaha#atna$ steel #lant is *oo& IN SIMPLE WORDS VISA?HAPATNAM STEEL PLANT IS IN DEVELOPED STAGE IN VISAHAPATNAM DISTRICTK
84
ILIOGRAPH
85
TE>T BOO?S •
•
•
• •
Phili# Kotler ?6886@( “Marketing Management” Prentice Hall o+ Inia( 2e% Delhi( Ele!enth Eition& Kotler an Ar$stron* ?6881@(Principles of Marketing” Prentice Hall o+ Inia( 2e% Delhi& .a$ars an arner ?14:7@( “Fundamentals of Marketing” Mc Gra% Hill Co$#an"( R"erson( Ei*ht Eition& C&R&Kothari ?688=@( “Research Methodology” Wish%a Praashan( Mu$bai& Leon G&.chi++$an > Leslie La)ar Kanu ?688=@( “Consumer Behavior” Pearson Eucation( 2e% Delhi&
W#).%t#. V%.%t#+: %%%&!i)a*steel&co$ %%%&iniansteelinustr"&co$ %%%&%ii#eia&co$ %%%&*oo*le&co$
86
A22EV'RE
87
7UESTIONNAIRE DECLARATIO2 J I(OM PRAKA.H A.RA2I #ursuin* M +ro$ Gita$ uni!ersit" ha!e unertaen research on the to#ic QA stu" on DI.TRI'TIO2 CHA22EL #ro+ile in 0I.AKHAPAT2AM .TEEL PLA2TRI2L& I hu$bl" reuest "ou to s#are "our !aluable ti$e in o++erin* "our o#inion on the !arious as#ects relatin* to the to#ic an thus hel#in* $e to co$#lete the stu"& This uestionnaire is entirel" +or the #ur#oses o+ eucational research its contents %ill be e#t strictl" con+iential( %ill not be $ae no%n to an"one no%n outsie o+ the research stu"( an %ill not other%ise be isclose or #ublishe e3ce#t in an a**re*ate +or$ in %hich ini!iuals cannot be ienti+ie 1& 2AME OF THE DI.TRI'TOR.J
6& ADDRE..J
WHICH .TEEL DEALER.HIP DO O' HA0E A&RO'RKELA .TEEL PLA2T
? @
&HILAI .TEEL PLA2T
? @
C&DH'RGAP'R .TEEL PLA2T
? @
D&OKARO .TEEL PLA2T
? @
E&0I.KHAPAT2AM .TEEL PLA2T
? @
<& WHICH COMPA2 GET. HIGH .ALE. 0OL'ME I2 .TEEL I2D'.TR
88
A&RO'RKELA .TEEL PLA2T
? @
&HILAI .TEEL PLA2T
? @
C&DH'RGAP'R .TEEL PLA2T
? @
D&OKARO .TEEL PLA2T
? @
E&0I.KHAPAT2AM .TEEL PLA2T
? @
5& I 2O'RPOI2TOF0IEWWHOI.THEMO.T0AL'ALE.'PPLIER. A&RO'RKELA .TEEL PLA2T
? @
&HILAI .TEEL PLA2T
? @
C&DH'RGAP'R .TEEL PLA2T
? @
D&OKARO .TEEL PLA2T
? @
E&0I.KHAPAT2AM .TEEL PLA2T
? @
9&WHAT I. O'R OP2IO2 AO'T 0IAG .TEEL A&
EVCELLE2T ? @
&
0ERGOOD ? @
C&
GOOD ? @
D&
A0ERAGE
E&
POOR ? @
? @
7&KI2DL GI0E O'R .'GGE.TIO2 RELATED TO THE PRICEOF 0IAG .TEEL A& HIGHL.ATI.FIED ? @ & .ATI.FIED
? @
C& A0ERAGE
? @
D& DI..ATI.FIED
? @
E& HIGHL DI..ATIFIED
? @
89
:&WHICH I.THEFA.TMO0I2GRA2DI2O'R TOW2
A&RO'RKELA .TEEL PLA2T
? @
&HILAI .TEEL PLA2T
? @
C&DH'RGAP'R .TEEL PLA2T
? @
D&OKARO .TEEL PLA2T
? @
E&0I.KHAPAT2AM .TEEL PLA2T
? @
4&PLEA.ERATETHEORDER A2DREPLACEME2TOF0IAG .TEEL A& HIGHL.ATI.FIED ? @ & .ATI.FIED
? @
C& A0ERAGE
? @
D& DI..ATI.FIED
? @
E& HIGHL DI..ATIFIED
? @
18&PLEA.ERATETHEA0AILAILIT OF0IAG.TEEL A& HIGHL.ATI.FIED ? @ & .ATI.FIED
? @
C& A0ERAGE
? @
D& DI..ATI.FIED
? @
E& HIGHL DI..ATIFIED
? @
11& AREO'.ATI.FIEDWITHTHEMARGI2. A& HIGHL.ATI.FIED ? @ & .ATI.FIED
? @
C& A0ERAGE
? @
D& DI..ATI.FIED
? @
E& HIGHL DI..ATIFIED
? @
OFFERED0IAG .TEEL
90
16& AREO'.ATI.FIEDTOTAKETHE0IAG.TEEL DEALER.HIP
A& es? @ & 2o
? @
1=&PLEA.EME2TIO2 AD0ERTI.EME2T OFFERED 0IAG.TEEL A&
TOOHIGH
? @
&
HIGH ? @
C&
MODERATE ? @
D&
LOW ? @
E&
TOOLOW
? @
1<& PLEA.E ME2TIO2 .ALE. PROMOTIO2AL EFFORT.OFTHE 0IAG .TEEL A&
EVCELLE2T ? @
&
0ERGOOD ? @
C&
GOOD ? @
D&
A0ERAGE
E&
POOR ? @
? @
15&WHICH.TEELGI0E. MORELIFETIMEFROMOTHER. A&RO'RKELA .TEEL PLA2T
? @
&HILAI .TEEL PLA2T
? @
C&DH'RGAP'R .TEEL PLA2T
? @
D&OKARO .TEEL PLA2T
? @
E&0I.KHAPAT2AM .TEEL PLA2T
? @
19&WHATDOO''2DER.TA2DTHERELIAILITOFTHE 0IAG.TEEL A&
EVCELLE2T ? @
