directly to the customer. Businesses that create or assemble a product will have two options: selling directly to consumers or selling to a vendor.
18
Direct Sales:
As a producer, you must decide if supplying direct is appropriate for your product, whether it be sales through retail, doorto- door, mail order, e-commerce, on-site, or some other method. An advantage of direct sales would be the contact you gain by meeting customers face to face. With this contact you can easily detect market changes that occur and adapt to them. You also have complete control over your product range, how it is sold, and at what price. Direct sales may be a good place to start when the supply of your product is limited or seasonal. For example, direct sales for many home-produced products can occur through homebased sales, markets, and stands. However, direct sales require that you have an effective retail interface with your customers, which may be in person or electronic. If developing and maintaining this retail interface is not of interest to you or you are not good at it, you should consider selling through an intermediary. Reseller Sales (Sales Through an Intermediary)
Instead of selling directly to the consumer, you may decide to sell through an intermediary such as a wholesaler or retailer who will resell your product. Doing this may provide you with a wider distribution than selling direct while
19
decreasing the pressure of managing your own distribution system. Additionally, you may also reduce the storage space necessary for inventory. One of the most important reasons for selling through an intermediary is access to customers. In many situations, wholesalers and retailers have customer connections that would not be possible to obtain on your own. Market Coverage:
No matter whether you sell your product direct or through a reseller, you must decide what your coverage will be in distributing your product. Will you pursue intensive, selective, or exclusive coverage? Intensive distribution is widespread placement in as many places as possible, often at low prices. Large businesses often market on a nationwide level with this method. Convenience products—ones that consumers buy regularly and spend little time shopping for, like chewing gum—do better with intensive (widespread) distribution. Selective distribution narrows distribution to a few businesses. Often, upscale products are sold through retailers that only sell high-quality products. With this option, it may be easier to establish relationships with customers. Products that people shop around for sell better with selective distribution.
20
Exclusive distribution restricts distribution to a single reseller. You may become the sole supplier to a reseller who, in turn, might sell only your product. You may be able to promote your product as prestigious with this method, though you might sacrifice sales volume. Specialty products tend to perform better with exclusive distribution. Other Place Decisions Product characteristics and sales volumes will dictate what inventories to maintain and how best to transport products. Additionally, the logistics associated with acquiring raw materials and ensuring that final product is in the right place at the right time for the right customers can comprise a large percentage of total costs and needs careful monitoring. You may decide to have a combination of all the distribution methods. Whatever you decide, choose the method which you believe will work best . Promotion:-
“Promotion” refers to the advertising and selling part of marketing. It is how you let people know what you’ve got for sale. The purpose of promotion is to get people to understand what your product is, what they can use it for, and why they should want it. You want the customers who are looking for a product to know that your product satisfies their needs. To be effective, your promotional efforts should contain a clear message targeted to a specific audience reached via an appropriate 21
channel. Your target audience will be the people who use or influence the purchase of your product. You should focus your market research efforts on identifying these individuals. Your message must be consistent with your overall marketing image, get your target audience’s attention, and elicit the response you desire, whether it is to purchase your product or to form an opinion. The channel you select for your message will likely involve use of a few key marketing channels. Promotion may involve advertising, public relations, personal selling, and sales promotions. A key channel is advertising. Advertising methods to promote your product or service include the following. •
Radio: Radio advertisements are relatively inexpensive ways to inform
potential local customers about your business. Mid-to-late week is generally the best time to run your radio ad. •
Television: Television allows access to regional or national audiences, but
may be more expensive than other options. •
Print: Direct mail and printed materials, including newspapers, consumer
and trade magazines, flyers, and a logo, allow you to explain what, when, where, and why people should buy from you. You can send letters, fact sheets, contests, coupons, and brochures directly to new or old customers on local, regional, or national levels. 22
•
Electronic: Company Web sites provide useful information to interested
consumers and clients. Password-protected areas allow users to more
5
Purdue
extension •
Knowledge to go intimately interact with you. Advertisements allow broad
promotion of your products. Direct e-mail contact is possible if you have collected detailed customer information. •
Word of Mouth: Word of mouth depends on satisfied customers (or
dissatisfied customers) telling their acquaintances about the effectiveness of your products. •
Generic: Generic promotion occurs when no specific brand of product is
promoted, but rather a whole industry is advertised. For instance, generic advertising is commonly found for milk, beef, and pork. Public relations (PR) usually focuses on creating a favorable business image. Important components of a good public relations program include being a good neighbor, being involved in the community, and providing open house days. News stories, often initiated through press releases, can be good sources of publicity. Personal selling focuses on the role of a salesperson in your communication plans. Salespeople can tailor communication to customers and are very important in building relationships. While personal selling is an important tool, it is costly. 23
So you should make efforts to target personal selling carefully. Sales promotions are special offerings designed to encourage purchases. Promotions might include free samples, coupons, contests, incentives, loyalty programs, prizes, and rebates. Other programs might focus on educating customers through seminars or reaching them through trade shows. Your target audience may be more receptive to one method than another. Additional sources of promotion may be attending or participating in trade shows, setting up displays at public events, and networking socially at civic and business organizations. Final Comment
The four P’s—product, price, place, and promotion—should work together in your marketing mix. Often, decisions on one element will influence the choices available in others. Selecting an effective mix for your market will take time and effort, but these will pay off as you satisfy customers and create a profitable business. The worksheets that follow will help you construct your marketing plans. Once you have a good marketing mix—the right product at the right price, offered in the right place and promoted in the right way—you will need to continue to stay on top of market changes and adopt your marketing mix as necessary. Marketing is a part of venture that will never end. 24
Extended Marketing Mix (3 P's)
More recently, three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix. People: All people involved with consumption of a service are important. For
example workers, management, consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular class of people for whom the product or service is made available. Process: Procedure, mechanism and flow of activities by which services are used.
Also the 'Procedure' how the product will reach the end user. Physical
Evidence:
The
marketing
strategy
should
communicating their satisfaction to potential customers.
Four Cs: CONSUMER COST CONVENIENCE COMMUNICATION
25
include
effectively
Robert F. Lauterborn proposed a four Cs classification in 1993. [2] The Four Cs model is more consumer-oriented and attempts to better fit the movement from mass marketing to niche marketing. Product part of the Four Ps model is replaced by 'Consumer' or Consumer Models, shifting the focus to satisfying the consumer needs. Another C replacement for Product is Capable. By defining offerings as individual capabilities that when combined and focused to a specific industry, creates a custom solution rather than pigeon-holing a customer into a product. Pricing is replaced by 'Cost' reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service. Placement is replaced by 'Convenience'. With the rise of internet and hybrid models of purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.
26
Promotions feature is replaced by 'Communication' which represents a broader focus than simply Promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. 4ps
4cs
Product
Customer needs and wants
Price
Cost of the customer
Place
Convenience
Promotion
Communication
27
Marketing Mix
Product
Price
Promotion
Place
Product
Sales promotion
Advertising
Coverage
Sales force
Channels
Variety
Discount
Quality
Allowances
Design
Payment period
Features
Credit terms
Public relations
Direct
Marketing
Brand name Packaging Sizes Services Warranties Returns
28
Assortment
Location
Inventory
INDUSTRY PROFILE
29
The history of steel-making in India can be traced back to 400 BC when the
Greek emperors used to recruit Indian archers for their army who used arrows tipped with steel. Many more evidences are there of Indians’ perfect knowledge of steel-making long before the advent of Christ. Archaeological finds in Mesopotamia and Egypt testify to the fact that use of iron and steel was known to mankind for more than six thousand years and that some of the best products were made in India. Among the widely-known relics is the Iron Pillar near Qutab Minar in Delhi. The pillar, built between 350 and 380 AD, did not rust so far -----an engineering marvel that baffles the scientists even today. Yet another engineering feat is the famous Sun Temple at Konark in Orissa, built around 1200 AD, where steel structurals were used for the first time in the world. These were the halcyon days when India flourished in all directions and when its prosperity was a matter of envy for the foreigners. But as ill luck would have it, India’s prosperity gave way to poverty after the advent of the foreign rule. India’s indigenous industry languished because of a deliberate policy of the colonial rulers to make the country only a supplier of raw materials.
30
Steel Role plays a vital role in the development of any modern economy. The per capita consumption of steel is generally accepted as a yardstick to measure the level of socio-economic development and living standards of the people. As such, no developing country can afford to ignore the steel industry. Beginnings
The first notable attempt to revive steel industry in India was made in 1874 when the Bengal Iron Works (BIW) came into being at Kulti, near Asansol in West Bengal. However, forty-four years before that, in 1830 to be precise, a foreigner, named Joshua Marshall Heath, had set up a small plant at Porto Novo on Madras Coast. Heath produced in his plant pig iron at the rate of forty tonnes a week. His method of iron-making needed approximately four tonnes of charcoal to produce one tonne of low quality pig iron which proved to be too expensive for Heath to carry on in the face of stiff competition from the British steel industry. The BIW made considerable improvement in the process of iron and steel making. It used coke as the fuel instead of charcoal. But the plant fell sick as the source of funds dried up. It was taken over by the Bengal Government and was rechristened as Barakar Iron Works. In 1889 the Bengal Iron and Steel Company acquired the plant and by the turn of the century the Kulti plant became a success story. It
31
produced 40,000 tonnes of pig iron in 1900 and continued to produce the metal until it was taken over by Indian Iron and Steel Company (IISCO) in 1936. For modern India’s iron and steel industry August 27, 1907 was a red-letter day when the Tata Iron and Steel Company (TISCO) was formed as a Swadeshi venture to produce 120,000 tonnes of pig iron. The TISCO plant at Sakchi (renamed Jamshedpur) in Bihar, started pig iron production in December 1908 and rolled out its first steel the following year. TISCO had expanded its production capacity to one million tonnes ingot by the time the country achieved freedom. The Tatas, as Gandhiji said, represented the "spirit of adventure" and Jamsetji Tata, in the words of Jawaharlal Nehru," laid the foundation of heavy industries in India". The British rulers disfavoured this and other attempts to start indigenous industry. It was chiefly with the help of American experts that the Tatas started their industry. Its childhood was precarious but the war of 1914-18 gave it a fillip. Again it languished and was in danger of passing into the hands of British debenture holders. But nationalist pressure saved it. In 1918, soon after the war, Indian Iron and Steel Company (IISCO) was formed. The then Mysore government also decided to start an iron works at Bhadravati. While IISCO started producing pig iron at Burnpur in 1922, the Mysore Iron and Steel Works took about 18 years
32
to start its plant. Meanwhile, the Bengal Iron Works went into liquidation and merged with IISCO. The Steel Corporation of Bengal (SCOB) formed in 1937, started making steel in its Asansol plant. Later in 1953, SCOB merged with IISCO. Prime Minister Nehru firmly believed that "no country can be jpolitically and economically independent unless it is highly industrialised and has developed its resources to the utmost". Nehru’s ideas about India’s development were broadly incorporated in free India’s first Industrial Policy Resolution adopted by the Contituent Assembly in 1948. The resolution officially accepted the principle of mixed economy. Industries were divided into four categories. In the first category were strategic industries which were made the monopoly of the Government. In the second category were six industries which included, among others, coal, iron and steel. It was decided that new units would be started exclusively by the government in the public sector without disturbing the existing ones in the private sector. Eighteen industries, including heavy castings and forings of iron and steel, ferro alloys and tool steel were covered by the third category and the rest of the industries by the fourth. In sum, the government committed itself to the development of basic steel industry while the private sector was to benefit through
33
the establishment of downstream units which would use pig iron, billets, blooms and flat products to be made by the public sector steel plants. In keeping with the spirit of the resolution the Government decided to start a chain of steel plants all over the country in the public sector. The first such plant was set up at Rourkela in Orissa. The second came up at Bhilai in Madhya Pradesh. It was followed by a third at Durgapur in West Bengal. Each of these three plants had an initial production capacity of one million tonne ingot. Durgapur was followed by a steel plant at Bokaro in Bihar. The onward march of Indian steel did not stop at Bokaro. The fifth public sector steel plant was set up at Visakhapatnam in andhra Pradesh. As a matter of fact, the country was dotted with steel and steel-related plants in public and private sectors, like Alloy Steel Plant, Salem Steel Plant, Kalinga Iron Works, Malavika Steel Ltd., Jindal Vijaynagar Steel Ltd., to name only a few. About the same time TISCO launched its twomillion-tonne expansion programme. The Government’s Industrial Policy had undergone changes ____ once in 1956 and then in 1991. The resolution modified in 1956 brought changes in the category pattern and listed more industries for the public sector than did the earlier one, though it was not harsher towards the private enterprise. In the new industrial
34
policy announced in 1991 iron and steel industry, among others, was included in the list of industries reserved for the public sector and exempted from the provision of compulsory licensing. With effect from May 24, 1992 iron and steel industry was included in the list of ‘high priority’ industry for automatic approval for foreign equity upto 51% (now 74%). Export-import regime for iron and steel has also undergone major liberalisation. The freight equalisation scheme was withdrawn removing freight disadvantage to States located near steel plants. The new policy has already borne fruit. The finished steel pdroduction in India has gone up from mere 1.1 million tonnes in 1951 to 23.37 million tonnes in 199798 despite overall economic slow-down in the country. It has been estimated that the demand for finished steel in 2001-02 would touch 38.68 million tonnes and the projected availability of 38.01 tonnes is almost adequate to meet the domestic demand along with export of six million tonnes. Similarly, by 2006-07, the final year of the tenth plan, the demand for finished steel would be around 48.80 million tonnes, providing adequate surplus for meeting the projected export potential of nine million tonnes. However, there is hardly any scope for complacence over the fact that India continues to be the 10th largest steel producer in the world. In 1997 India’s per capita steel consumption was only 22 kg which was much below the world average 35
of about 126 kgs. Even if the domestic demand grows up from 34.5 million tonnes to 100 million tonnes in 2025 the industry is unlikely to catch up with the production in the developed countries. The redeeming feature is the cost competitiveness of Indian steel in the global market. According to World Steel Dynamics, the total cost of steel production in the USA is $510 per metric tonne while in Japan it is $550, in Germany $557, in Canada $493 and in India it is $497. This is because of high material cost due to high excise and import duties. Reduction of cost on these accounts will make Indian steel more competitive in the world market. Indian steel can reasonably expect a good market in the neighbouring countries now that the Asian economy is looking up. Before the economic reforms of the early 1990s the Indian steel industry was a predominantly regulated one with the public sector dominating the industry. India's steel industry went through a rough phase between 1997 and 2001 when the overall global steel was facing a downturn and recovered after 2002. The major factors that led to the revival of the steel industry in India after 2002 was the rise in global demand for steel and the domestic economic growth in India. India has now emerged as the eighth largest producer of steel in the world with a production capacity of 35MT. Almost all varieties of steel is now produced 36
in India. India has also emerged as a net exporter of steel which shows that Indian steel
is
being
increasingly
accepted
in
the
global
market.
The growth of the steel industry in India is also dependant, to a large extent, on the level of consumption of steel in the domestic market. Steel consumption is significant in housing and infrastructure. In recent years the surge in housing industry of India has led to increase in the domestic demand for steel. More than 3500 different varieties of steel are available in the steel industry of India. These can however be classified into two broad categories Flat Products:
Flat products include plates and hot rolled sheets such as coils and sheets. Flat products are derived from slabs. One of the major uses of steel plates is in ship building. Long Products
Long products include bars, rods, wires, ropes and piers. These are called long products due to their shapes. Long products are made from billets and blooms. Long products are mostly used in housing and construction and also in rail tracks. Steel Industry in India is on an upswing because of the strong global and domestic demand. India's rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian 37
steel industry on the global map. According to the latest report by International Iron and Steel Institute (IISI), India is the seventh largest steel producer in the world. The origin of the modern Indian steel industry can be traced back to 1953 when a contract for the construction of an integrated steelworks in Rourkela, Orissa was signed between the Indian government and the German companies Fried Krupp und Demag AG. The initial plan was an annual capacity of 500,000 tonnes, but this was subsequently raised to 1 million tonnes. The capacity of Rourkela Steel Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group, is presently about 2 million tonnes. At a very early stage the former USSR and a British consortium also showed an interest in establishing a modern steel industry in India. This resulted in the Soviet-aided building of a steel mill with a capacity of 1 million tonnes in Bhilai and the British-backed construction in Durgapur
of
a
foundry
which
also
has
a
million
tonne
capacity.
The Indian steel industry is organized in three categories i.e., main producers, other major producers and the secondary producers. The main producers and other major producers have integrated steel making facility with plant capacities over 0.5 mT and utilize iron ore and coal/gas for production of steel. The main producers are Tata Steel, SAIL, and RINL, while the other major 38
producers are ESSAR, ISPAT and JVSL. The secondary sector is dispersed and consists of: 1) Backward linkage from about 120 sponge iron producers that use iron ore and non-coking coal, providing feedstock for steel producers; 2) Approximately 650 mini blast furnaces, electric arc furnaces, induction furnaces and energy optimizing furnaces that use iron ore, sponge iron and melting scrap to produce steel; and 3) Forward linkage with about 1,200 re-rollers that roll out semis into finished steel products for consumer use. Structural Weaknesses of Indian Steel Industry
Although India has modernised its steelmaking considerably, however, nearly 6% of its crude steel is still produced using the outdated open-hearth process. Labour productivity in India is still very low. According to an estimate crude steel output at the biggest Indian steelmaker is roughly 144 tonnes per worker per year, whereas in Western Europe the figure is around 600 tonnes. India has to do a lot of catching in the production of stainless steel, which is primarily required by the plant and equipment, pharmaceutical and chemical industries. 39
Steel production in India is also hampered by power shortages. India is deficient in raw materials required by the steel industry. Iron ore deposits are finite and there are problems in mining sufficient amounts of it. India's hard coal deposits are of low quality. Insufficient freight capacity and transport infrastructure impediments too hamper the growth of Indian steel industry. Strengths of Indian Steel Industry
Low labour wage rates Abundance of quality manpower Mature production base Positive stimuli from construction industry Booming automobile industry Role of Iron and Steel Industry in India
The Role of Iron and Steel Industry in India GDP is very important for the development of the country. In India the visionary Shri Jamshedji Tata set up the first Iron and Steel manufacturing unit called Tata Iron and Steel Company, at Jamshedpur in Jharkhand. Iron and steel are among the most important components required for the infrastructure development in the country.
40
Role of Iron and Steel Industry in India GDP-Facts.
The Iron and Steel Industry in India is one of the fastest growing sectors. The demand drivers for the Indian Iron and Steel industry are increase in the activities of the automobiles industry, real estates industry, transportation system, aircraft industry, ship building industry, etc. India ranks 5th in the world in terms of production of steel:
The amount of crude steel produced in 2006-07 was 50.71 million tonnes The amount of finished steel produced in 2006-07 was 51.9 million tonnes •
The production of finished steel was increased by 16.52%.
•
The production of finished carbon steel was 24.8 million tonnes in the year 2006-07.
•
It is expected that India would become the second biggest producer of steel within the year 2016 and the production per year would be 137 million tonnes.
•
The exports pertaining to the steel industry was 6.26 % during the period 2006-07.
41
Role of Iron and Steel Industry in India GDP-Consumption •
The domestic consumption of steel has grown by12.5% in the past three years.
•
The domestic steel consumption in the year 2006-07 was 41.14 million tonnes
•
The average growth rate of the Indian Iron and Steel Industry is 11.36%
•
The construction projects all over India are major consumer of steel
•
The per capita consumption of steel in India is 35kgs
•
As the per capita consumption of steel is lower than other countries, so the steel industry has huge opportunities in the future.
Role of Iron and Steel Industry in India GDP-Growth in Future
The Arcelor Mittal, which is the largest steelmaker in the world, has plans of establishing two Greenfield steel projects with capacity of 12 million tonnes annually, in India. Acerinox SA, one of the important stainless steel manufacturers in collaboration with Nisshin Steel, Japan is setting up a steel plant in India.
42
The Tata Steel ranks 5th in the world steel production and the company have plans of expanding its capacity by the year 2015. SAIL, India's biggest producer of steel has plans of increasing the production to 24.98 million tonnes annually. Sinosteel Corp, China are planning to invest US$ 4 billion to set up a 5 million tonnes capacity Greenfield steel plant. The acquisition of the Corus, the Anglo-Dutch steel manufacturer by the Tata Steel. The Algoma Steel, Canada was acquired by Essar Global for US$ 1.63 billion. RINL has its registered office at Visakhapatnam. Visakhapatnam Steel plant, under RINL, is the country's first shore-based and sixth public sector Integrated Steel Plant. SAIL with its corporate office in New Delhi operates and manages five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, a plant of the Indian Iron and Steel Co. Ltd. (IISCO), which is a wholly owned subsidiary of SAIL. SAIL also has four Special and Alloy Steel and Ferro-alloys units at Durgapur, Salem, Chandrapur and Bhadravati. The plants at Chandrapur and Bhadravati belong to the Maharashtra Elektrosmelt Limited and Visvesvaraya Iron and Steel Limited respectively which are also subsidiaries of SAIL. The IISCO43
Ujjain Pipe and Foundry Company Limited, a subsidiary of IISCO, manufactures cast iron spun pipes at its works at Ujjain. Besides, SAIL has seven Central Units viz. Research and Development Centre for Iron and Steel, Centre for Engineering and Technology, Management Training Institute, all located at Ranchi, Central Coal Supply Organisation located at Ranchi, Central Coal supply Organisation located at Dhanbad, raw materials Division, Growth Division and Environment Management Division all located at Calcutta. The marketing of products of SAIL plants is done through the Central Marketing Organisation, Calcutta which has a country wide Distribution Network. NMDC, with its headquarters at Hyderabad, is engaged in the business of developing and exploiting mineral resources, other than coal, oil, natural gas and atomic minerals. Presently, its activities are concentrated on mining of iron ore and diamonds. NMDC operates the largest mechanised iron ore mines in the country at Bailadila and Donimalai and the Diamond mines situated at Panna. J & K Mineral Development Corporation Limited (J&KMDC) is a subsidiary company of NMDC, incorporated for development of various minerals in the state of Jammu & Kashmir. The Tata Iron and Steel Company, located at Jamshedpur is the best known symbol of India's industrial growth. The company has exported products worth 44
more than US $ 182.3 million in 1996-97. Tata Steel remains India's largest single exporter of high quality, value added steel products. It is a blue chip company, and has successfully raised US $100 million through Euro Bonds. Tata Steel is India's single largest integrated steel works in the private sector with a market share of over 13%. It has, over the years, employed state-of-the-art know-how and processes to manufacture a wide range of steel and engineering products as well as minerals and ferro-alloys. Its steel products include HR coils, tubes, bars, rods, structurals, strips, sheets and bearings. The steel plant is integrated with activities ranging from mining of raw materials to finished rolling of steel. Over the years the company has promoted several associate companies in related areas such as engineering, refractors and rolls. OTHER COMPANIES IN INDIA
•
Bhilai Steel Plant (BSP)
•
Bokaro Steel Plant (BSL)
•
Durgapur Steel Plant (DSP)
•
Jindal Vijayanagar Steel Limited
•
Lloyds SteeI Industries Ltd
•
North Bengal Dolomite Limited
•
Rourkela Steel Plant (RSP) 45
•
Salem Steel Plant (SSP) In conclusion, it can be said with a certain measure of confidence that
India’s iron and steel industry which had a glorious past and now look forward to a bright future.
46
COMPANY PROFILE
SYMBOL OF RINL, VISAKHAPATNAM STEEL PLANT
47
Company Profile Steel occupies the foremost place amongst the materials in use today and pervades all walks of life. All the key discoveries of the human genius – for instance .steam engine ,railway ,means of communication and connection, automobile, aero place and computers, are in one way of other ,fastened together with steel and with its sagacious and multitude of useful properties making it indispensable for furthering and achieving continual growth of the – be it construction, manufacturing, infrastructure or consumables. The level of steel consumption has long been regarded as an index of industrialization and economic
maturity attained by a country. Keeping in
view the importance of steel, the
following integrated steel plants with foreign collaborations were set up in the public sector in the post-independence era: S no
steel plant
Collaborated by
1.
Durgapur Steel plant
Britain
2.
Bhilai Steel plant
Erstwhile USSR
3.
Bokaro Steel plant
Erstwhile USSR 48
4.
Rourkela Steel plant
Germany
Vision
•
Harness our growth potential and sustain profitable growth.
•
Deliver high quality and cost competitive products and be the first choice of customers.
•
Create an inspiring work environment to unleash the creative energy of people.
•
Achieve excellence in enterprise management.
•
Be respected corporate citizen, ensure clean and green environment and develop vibrant communities around us.
Mission
To attain 16 million ton liquid steel capacity through technological upgradation, operational efficiency and expansion; augmentation of assured supply of raw materials; to produce steel at international standards of cost and quality; and to meet the aspirations of the stakeholders.
49
Objectives
•
Expand plant capacity to 6.3Mt by 2011-12 with the mission to expand further in subsequent phases as per Corporate Plan
•
Revamping existing Blast Furnaces to make them energy efficient to contemporary levels and in the process increase their capacity by 1 Mt, thus total hot metal capacity to 7.5 Mt
•
Be amongst top five lowest cost liquid steel producers in the world
•
Achieve higher levels of customer satisfaction
•
Vibrant work culture in the organization
•
Be proactive in conserving environment, maintaining high levels of safety & addressing social concerns
Core values
•
Commitment
•
Customer satisfaction
•
Continuous Improvement
•
Concern for Environment
•
Creativity & Innovatio
50
Company Policies Quality, Environment and Occupational Health &safety policy:
Visakhapatnam steel plant has committed to meet the needs and expectations of customers and other interested parties,the occupational health and safety of our work force and to preserve the environment . •
Supply quality goods and services to customer’s delight.
•
Document , implement, maintain & periodically review the management systems including the policy ,objectives and targets.
•
Use resources efficiently and reduce waste &prevent pollution.
•
Comply with all relevant legal regulatory and other requirements applicable to products, activities and processes in respect of Quality, Environment Occupational health &safety and also ensure the same by contractors. Continually improve quality, environment, occupational health and safety
performance with respect to products, activities, processes, premises and services. Encourage development and involvement of employees. Maintain high level of quality environment, occupational health and safety consciousness amongst employees and contract workers by imparting education and training.
51
Customer policy •
VSP will Endeavour to adopt a Customer-focused approach at all times with transparency
•
VSP will strive to meet more than the Customer needs and expectations pertaining to Products, Quality, value for Money and Satisfaction
•
VSP greatly values its relationships with Customers and would make efforts at strengthening these relations for mutual benefit
HR policy •
Visakhapatnam Steel Plant, believe that employees are the most important resources. To realize the full potential of employees, the company is committed to :
•
Provide work environment that makes the employees committed and motivated for maximizing productivity.
•
Establish systems for maintaining transparency, fairness and equality in dealing the employees.
•
Empower employees for enhancing commitment, responsibility and accountability
52
•
Encourage teamwork, creativity, innovativeness and high achievement orientation
•
Provide growth and opportunities for developing skill and knowledge.
•
Ensure functioning of effective communication channels with employees
Energy policy •
Visakhapatnam Steel Plant, has committed to optimally utilize various forms of energy in a cost-effective manner to effect conservation of energy resources. To accomplish this …
•
Monitor closely and control consumption of various forms of energy through an effective Energy Management System.
•
Adopt appropriate energy conservation technologies.
•
Maximize the use of cheaper and easily available forms of energy.
IT policy
RINl/VSP is committed to leverage Information Technology as the vital enabler in improving the customer-satisfaction, organizational efficiency, productivity, decision-making, transparency and cost effectiveness, and thus adding value to the business of steel making. Towards this, RINL shall follow best practices in Process Automation & Business Processes through IT by in-house efforts / outsourcing and collaborative efforts with other organizations / expert 53
groups / institutions of higher learning, etc, thus ensuring the quality of product and services at least cost. Follow scientific and structured methodology in the software development processes with total user-involvement, and thus delivering integrated and quality products to the satisfaction of internal and external customers. Install, maintain and upgrade suitable cost-effective IT hardware, software and other IT infrastructure and ensure high levels of data and information security. Strive to spread IT-culture amongst employees based on organizational need, role and responsibilities of the personnel and facilitate the objective of becoming a world-class business organization. Enrich the skill-set and knowledge base of all related personnel at regular intervals to make employees knowledge-employees Periodically monitor the IT investments made and achievements accrued to review their cost effectiveness. Expansion plans
In the vision in National Steel policy envisaging 124 MT steel by 2019-20, Visakhapatnam Steel Plant has planned and proposed for increasing the capacity from existing 3.6MT to 6.3MT. On 28th October 2005, clearance has been
54
obtained from Govt. of India in record time of 10months for Go-Ahead. On 11th Feb.’2006. M/s MN Dastur Co was appointed as Consultant for the Expansion Project. On 20th May, Honorable Prime Minister Manmohan Singh launched the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6MT to 6.3MT at a cost of Rs. 8,692 Crores (Base June 05). Raw Material Handling Plant
55
R aw Material Handling plant is meant for transporting materials from Raw material yard/Base mix yard to various process units of the plant. The Major Raw materials required for Iron and Steel making are are Iron ore lump, Iron Ore fines, Sized iron ore, Flux limestone / dolomite, manganese, Quartzite coking coal, Non-coking coal ( for Boiler operation & For Pulverized coal injection )and coke. Lump iron ores, iron ore fines and flux such as limestone and dolomite received by railway rake are unloaded in wagon tippler and stored in open storage yard with help of various stockyard machines. Iron ore lump, flux such as limestone and dolomite, Coke is reclaimed by suitable stock yard machine and are crushed in Ore crushing plant, Flux crushing plant and coke crushing plant respectively to produce the size required. The above material is proportionately stacked by suitable stacking machine in base mix yard and blended while reclaiming by blender reclaimer, while preparing base mix which then transported to Sinter plant for sinter production. For feeding material to new blast furnace, sized ore and flux is reclaimed by stock yard machine from respective yard and conveyed by conveyor. Sinter produced in sinter plant and coke from existing/new coke ovens is transported directly to BF-3 stock house by conveyor. Purchased coke and necessary calcined lime from stock yard and new lime calcining plant 56 respectively is transported to SMS by Conveyor. The waste product from the
plant is mainly dust and method of their disposal is through dust suppression
.
Steel melt shop
Steel making capacity of the plant is correspondingly increased by utilizing higher availability of Hot metal. The Raw materials required for manufacturing process are – Hot Metal, Scrap,Flux, Ferro alloys. New Steel melt shop comprising of two(2) converters each of 150 cu.m capacity. 2Nos. Laddle Furnaces were envisaged to make the operation of the 2 converters independent of the requirements of continuous casting machines thereby acting as buffer between the converter and the caster.
The steel temperature and steel chemistry will be homonized in LF by inert gases and 1 No. RH degaussing system is envisaged for production of special grade with low gas contents. Three(3) 6 strand strand billet mill. Three casters are available for 200 days in a year and two casters are available for 165 days in a year. Cast Billets will be fed to new bar mill and wire rod mill. Part of rolled billets will also be for sale. The other major facilities installed are – Hot Metal Desulphurization Plant, Scrap Handling system,BOF Gas cleaning Plant, Secondary Emission control, Ferro alloy Handling Facilities, Ladle & tundish prepation facilities. New technology – Converter Shop - Combined Blowing, Secondary Fume Extraction system, Contour & bath level measurement and benefits derived are reduced consumption of 57
ferroalloys, better yield and quality, Cleaner environment and measurement of refractory lining. Continuous casting Machines - Auto mould level control & 100% Billet casting and benefits derived are reduced in break outs and energy saving. LF & RH - Electro magnetic stirrer and benefits derived are cleaner steel. Provision is made and tendering activities for award of Consultancy is in process for installation of 3rd converter and 4th caster. Wire rod mill
The mill will produce 6 ltpy of plain rounds in coil form. The wire rod size will be in range of 5.5 to 20 mm (dia). Provision is kept for the mill for producing 7.7 ltpy on the market demand. The rolling mill will use the cast billets of size 150 x 150 mm having length of about 12 m and rolled billets of size 125 x 125 x 9.7 to 10.2 M. The mill will roll Low carbon (85,000 tons/ yr), Medium carbon (93,000 tons/yr), High carbon (93,000 tons/yr), spring steel (25,000 tons/yr), cold heading (1,34,000 tons/yr), welding rod (85,000 tons/yr), Bearing steel (25,000 tons/yr), Free cutting steel (35,000 tons/yr) and case hardening (25,000 tons/yr). The billet will be charged into 200 ton / hr capacity reheating furnance one by one. The billets after heated upto 1200 deg C will be discharged. The billets will be rolled down in the breakdown mill and passes through pre –finishing mill. The finished product will come out of reducing and sizing mill in coil form. The output of 58
size wise product mix are - 5.5.mm dia(mm) – 1,50,000tons/ yr , 6.0-7.5 dia(mm) – 2,40,000 tons/ yr, 8.0-16 dia (mm) – 1,75,000 tons/ yr, 17-20.64 dia (mm) – 35,000 tons/ yr.
59
Purpose AWARDS & ACHEIVEMENTS OF VSPYear 1st Steel Minister's Trophy for VSP’s excellent Overall 2010 the year 2006-07 performance Best Management Practices' In recognition of VSP’s Award by Govt. of AP performance in the areas of Production, Productivity, 2010 Labour Practices, Industrial Relations and Corporate Social Responsibility Indira Gandhi Rajbhasha shield' For effective 2010 given by His Excellency Vice implementation of President of India Dr. Hamid ‘Rajbhasha’, Hindi in VSP Ansari 5S "Strong Commitment" for 5 S Excellence 2010 Award by CII Viswakarma Rashtriya Puraskar National level awards Awards, 6th time in a row instituted by Ministry of Labour, Govt. of India for the workmen in industries. Recognition for the innovative suggestions 2010 resulting in higher efficiency, productivity, quality, safety & working conditions, house-keeping and import substitution at enterprise level. 5 No.s of the prestigious Prime Given annually to the 2010 Minister Shram Awards, excellently performing 1'Shram Bhushan' and 4 'Shram workers Veer' awards,presented by Ministry of Labour and Welfare National Sustainability Award' Second prize amongst the 2010 integrated steel plants given by the Ferrous Division of Indian Institute of Metals
"Excellent Water Efficient Unit" for Excellence in Water award by CII Management- 2010 at National level
2010
"Change Agent & 60 Global HR Excellence award by Leadership Award" in World HRD Congress Global HR Excellence Awards 2010-11 given by World HRD Co
2010
The efforts of VSP have been recognized in various forms. Some of the major awards received by VSP are in the area of energy conservation , environment protection , safety, quality, quality circles ,M O U ,sports related awards and a number of awards at the individual level. Some of the important awards are indicated bellow: •
ISO 9002 for SMS and all the downstream units –a unique distinction in the Indian steel industry.
•
Nehru Memorial National Award for pollution Control:1992-93&1993-94.
•
CII (Southern Region) Energy conservation Award :1995-96.
•
Golden Peacock (1 st prize) “National Quality Award-96” IIM in the National Quality Competition 1996.
•
Selected for “world Quality Commitment Award- 1997 “ of J *BA N ,Spain.
•
ISPAT Surakha Puruskar(First prize ) for longest Accident free period 19911994.
•
SCOPE A ward for vest turnaround for 2001.
•
Best enterprise award from SCOPE .WIPS for 2001-02, besides.
•
Indira Priya Darshini Vrishka Mitra Award: 1992-93.
61
COKE OVENS IN VSP SLINTER PLANT
62
PRODUCT PROFILE
63
Product Profile:
Rashtriya Ispat Nigam limited. The corporate entity of Visakhapatnam steel plant is the only shore based integrated steel plant in the country. Visakhapatnam steel plant popularly known as Vizag steel has been a symbol of innovativeness and excellence right from its nascent stage and id=s consistently producing will above 305 MTPY. Basically along product manufactures Vizag steel pioneered several technological trends in the Indian steel Industry, be it the 7 Mtr. tall coke oven batteries 3200 cum. Blast furnaces. 100% continues casting , temporal and Stanmore thermal treatment processes. VIZAG Steel ‘s deep commitment to customers delight,quality health safety and environment is reiterated by being the first integrated steel plant in the country to certified for ISO 9001;2000,ISO 14001 and OHSAS standards. Total automation, timely up-gradation and seamless integration of facilities and processes enables VIZAG STEEL to produce a wide range of grades in dibverse shapes like TMT bars ,wire rod coils angles, channels ,beams, rounds, squares and villets to exaction natonal and international standards meeting the stringent demands of the discerning customers. 64
The external waves of the Bay of Bengal have become an intrinsic part of VIZAG STEEL culture to face the challenges of change through its technical know how to produce tailor made special steels to suri the Automobiles , Engineering and Qire drawing and railway sector.
Products of VSP
WIRE RODS STRUCTURALS WIRE ROD COILS PLAIN ROUNDS RE –BARS Fe 500 SQUARES BEAMS FLATS ANGLES CHANNELS BILLETS
65
Re – BARS
Produced from fully killed steel Size (mm)
Sectional Wt. (Range) Kg/m
8
0.363 to 0.426
10
0.567 to 0.666
12
0835 to 0.941
16
1.501 to 1.659
*18
1.940 to 2.060
20
2.396 to 2.544
*22
2.891 to 3.069
25
3.735 to 3.966
28
4.685 to 4.975
32
6.121 to 6.499
66
ROUNDS Special features:
Low carbon content and made fron fulyy killed steel Higher yield strength & ulitimate tensile strength couples with Higher percentage eolngation when compared to cold twisted bars Of same grade. Easy bend ability ,weld ability and excellent ductility ensure economy and safety of use. Advantages
Combination of high strength and high ductility Resistance to ageing Superior corrosion resistance Excellent bend ability and workability
67
AStandard
Grade
Remarks
Yield UTS % Strength (N/mm^2) Elongation (N/mm^2) Min min
IS 1786_1985 FE 415
-
415
485
14.5
IS 1786-1985
FE 500
-
500
545
12
IS 1786-1985
FE 550
-
550
585
8
Re-bars with Corresion Resistant element
CRM
415
485
14.5
500
545
12
Cu-cr+p= 0.75% Min HSCRM Cu-cr+p= 0.75% min
WIRE ROD COILS
5.5,6,6.5,7.5,8,9,10,11,12,12.7,13,14mm
ROUNDS
16,*16.5,*17.5,18,20,*20.64,22,25,28,32,33.5,34,36,38,40,42,45 46.5,48,50,53,56,60,63,35,71,75,77,80mm
REINFORCEMENT BARS 68
8,10,12mm 16,*18,20,*22,25,28,32,36mm
ANGLES
*50
×
50
×
5/6
mm
*60
×
60
×
5/6
mm
*65
×
65
×
6
mm
75
×
75
×
6/8
mm
90
×
90
×
6/8
mm
100 ×
100
×
8/10
mm
110 ×
110
×
8/10
mm
CHANNELS
MC
*40
×
32
×
5.0mm
MC
*75
×
40
×
4.8mm
MC
100
×
50
×
5.0mm 69
MC
125
×
65
×
5.3mm
MC
150
×
75
×
5.7mm
BEAMS
IPE-BEAMS
*180 ×
91
×
5.3mm
HE-BEAMS
*120 ×
114
×
5.0mm
ISMB BEAMS
125 ×
70
×
5.0mm
150 ×
75
×
5.0mm
175 ×
85
×
5.8mm
BEAMS
BLOOMS
245
×
245mm
-----
5.5
---
6.08mts
315
×
245mm
-----
6.0
---
6.40mts
BILLETS
70
125
×
125mm
---
8.0
---
10.4mts
90
×
125mm
---
6.0
---
12.0mts
75
×
75mm
---
6.0
---
12.0mts
65
×
65mm
---
6.0
---
12.0mts
GRADES
BLOOMS
:
Mild steel/Low, medium & High carbon steel, forging Quality
BILLETS
:
Mild steel ,Low, medium& High carbon ,spring steel High mm & forging Quality steels
ROUNDS
:
Mild steel ,Low, medium carbon ,bright bat & forging Quality
REBARS
:
Thermo Mechanically treated (TMT) bars of different yield strengths.
STRUCTURALS :
Structural steel and High Tensile steel.
WIRE RODS
Low carbon, Wire drawing, bright bar, Electrode Quality,
:
Cold Heading Quality, Tyre – be an other High Carbon 71
Grades.
72
STRUCTURALS
Special features
Piling and automatic styling of the structurals ensure minimum damage during handling and transport . Tension free rolling ensures closer tolerances and negative sectional weight. Universal beam rolled in medium merchant & structural mill is the most economical section which has got better sectional properties .has a simple symmetrical cross section providing more flexibility to designer. Fabricator and erector. This section can result in saving of 15% steel. Export products Angles
Size (mm)
Section Weight Kg / metre
100 X 100 X 8 / 10
12.10 / 14.90, +5% -3%
90 X 90 X 6 / 8
8.20 / 10.80, +5% -3%
75 X 75 X 6 / 8
6.80 / 8.90, +5% -3%
65 X 65 X 6 / 8
5.80 / 7.70, +5% -3%
73
Beam
Size
Web Thickness Sec. Wt Remarks
(mm) 180 X 91 120
5.3 +/-0.7% 18.80 +/- Flance Thickness : 8.0 +/4%
1.0%
X 5.0 +/-0.7% 19.90 +/- Flance Thickness : 8.0 +/-
114
4%
1.0%
Billets
Size (mm)
Chemistry
125 x 125 x 10,000 +/-400 See Note 2 below 65 X 65 X 6,000 +/-100
Is : 2830(C:0.12-0.23%; SI:0.40% Max
75 X 75 X 6,000 +/-100
Mn : 0.3-1.5 Mn:0.3-1.5
Channels
Size (mm)
Sec.Wt Kg/mtr
50 X 75 X 5.71
16.8 +/-2.5%
125 X 65 X 5.3
13.1 +/-2.5%
100 X 50 X 5
9.56 +/-2.5%
75 X 40 X 4.8
7.14 +/-2.5%
74
Pig iron
CHEMISTRY : C: 3.5 - 4.5%; Mn : 1% MAX; Si : 1.25% MAX; P : 0.15% MAX; S : 0.05% MAX.
SIZE: Pigs with upto two notches upto 45kgs in weight.chips/broken pieces below 25mm not exceeding 5%. dust, dirt and moisture exceeding 0.5% deductible from draft survey wt. Hot rolled rebars
SpecificationGradeSize (mm) JISG3112
SD35 16, 18, 20, 25
BS 4449
250
16, 18, 20, 25
BS 4449
460
16, 18, 20, 25
JISG3112
SD35 8, 10
Wire rods
Specification
Grade
Remarks
ASTMA510.96SAE 1008 (Si-0.30%Max)Tensile Strength 430 N/mm2 Max ASTMA510.96SAE 1010 (Si-0.40%Max)Tensile Strength 450 N/mm2 Max. ASTMA510.96SAE 1012 (Si-0.40%Max)Tensile Strength 470 N/mm2 Max. ASTMA510.96SAE 1015 (Si-0.40%Max)Tensile Strength 510 N/mm2 Max
75
By products
Granulated slag Lime fines Ammonium sulphate Crude coal tar Coal tea fuel /pitch creosote mixture Hot pressed naphthalene Drained naphthalene oil Phenol fractions Light solvent oil benzene Toluene Coal tar wash oil Anthracene oil Sol-110(Non Aromatics)
76
MARKETING SYSTEM AT RINL
77
To market the products of VSP marketing department has got total manpower of 301out of which108 manpower are at Head quarter and rest are in the various regions and branches. For facilitating the sales and increasing customer base by showing presence all over ,the whole country is divided into five regions and for each region having a regional office which coordinates with the branch sales offices in their respective regions.
North (Delhi) South (Chennai) East (Kolkata) West (Mumbai) Andhra (Vizag) Altogether have 24 branches. Besides VSP has consignment sales agencies at three places…. Jammu Guwahati Ranchi It also exporting the products to various destinations such as …. 78
Srilanka US Bangladesh Middle east Singapore and other. Export of materials also takes place for Nepal but through road only. Various branches under various regions which are spread all over the country are as follows…. North
Agra, Chandigad, Delhi, GZB, FBD, LUD, Jaipur, Kanpur, Dehradun. South
Chennai, Bangalore, Kochi, Coimbatore, Hubli. East
Kolkata, BBSR, Patna. West
Mumbai, Ahmadabad, Pune, Indore, Nagpur.
79
Andhra
Vizag, Hyd, By prod Here in head quarter marketing dept has the following different sections and each section has their own responsibility and area to look… MANAGEMENT INFORMATION SYSTEM SPECIAL STEEL & PRODUCT DEVELOPMENT HEAD – QUARTER SALES TENDER & SCRAP SALES DEPARTMENT PROJECT SALES BCSY NSY BC –GATE SERVICES EXPORTS CRM ADMINISTRATION.
80
MIS
The main function of MIS is to give all information pertaining go marketing as well as domestic and international sales data in desired format to the management . They prepared a daily sales report for cumulative sales of al over India .
They prepare a marketing performance report in which following details they give Sales performance Movement of stock Total sales Vs production Month wise total sales report Month wise domestic sales report Region wise , month wise product wise sales Branch wise month wise product wise sales East, North, west ,south HQ sales Region wise market share Sales value Saleable steel
81
Beside that they prepare all the presentations,which is required by the marketing department from time to time. Special steel &product development
This section deals with the sales of special steel products. Various branches send their requirement of special steel to special steel & product development section and here they consolidate all the data after discussing with the PPM department during the weekly coordination meeting, rolling plan is finalized. After production they also look for the dispatches of the material according to the requirement. road dispatch is looked by this section but for rail dispatch they co – ordinate with the planning & dispatch section. For a new product development they get the request from the branches and discuss with works dept. Regarding the feasibility of the production and accordingly it is decided to produce the grade. They also take the customer feedback about the new product developed. To interact with the customers directly, a team will visit the customer. Premises directly at regular intervals and take the feed back on the quality, required product availability and other issues. The section is also involved in the pricing of special steel product and generation of special report as required regularly.
82
HQ _ Sales
Head quarter sales come under Andhra region. Customers bring her requisition of material and contact the concern in – change. He will sanction it according to material availability and then offer letter is given to the customer. with the offer letter customer goes to finance section and deposit the money and comes back with receipt again to get the delivery order. At the start of the financial year they go in contract with existing as well as new eligible customers for the year and they are called as LTC . Tender & scrap sales department
In tender and scrap sales department two types of sales are being done: 1.Normal sales. 2.Tender sales. Normal sales
Iron PCM JAM , PCM M/F Steel
CT of billets(0.5-3.0mm) CE of billets (0.3-0.5mm) 83
MR rounds> 25mm (0.5-3.0mm) Tender sales E –auction procedure
First customer has to register himself with VSP by opening the site. Then he sends LOI( letter of interest) with EMD (earnest money deposit). After that various report generation takes place like 1. Bid history 2. Customer name ,lot no., price. 3. Out of these eligible candidate list is prepared . 4. Then eligible candidate participate in the tender. 5. Highest bidder i.e. H-1 list for each lot is prepared 6. Their prices are compared with reserved committee prices and those who qualify of 90% criteria are awarded with materials . 7. If for some lot there are no eligible candidates re –tendering is allowed .
Project sales
Since economy of India is growing and lot of investments is taking place in infrastructure development and new projects are coming up in different sectors like roads, housing, bridges, etc. to tap that market one special secton has been created 84
to increase the sales potential and to identify project customers. Some criteria are laid down to identify the project customer. This section keeps an eye on the ongoing projects and coming up projects through various newspapers, magazines, & journals and in turn contact with the region in which it is coming up. There are two modes of project sales: 1. Participating in tenders.. 2. MOU (memorandum of understanding) For participating in tenders various delegations of power is there depending on the ranks. BCSY
This stockyard is to facilitate the production taking place in mills area . for identifying the special steel grade materials various color codes are there. There are two modes of dispatch from BCSY: 1. Rail dispatch 2. Road dispatch In case of rail dispatch indents come from planning &dispatch section which first goes to PPM dept. which in turn raise indent to traffic dept.
85
Traffic dept .in turn raises the indent to railways and gets the required rakes according to availability. After After that that the send an online online placem placement ent memo memo for required required mater material ial to BCSY. In BCSY print out of it is taken and given to handling contractor which loads the material in the respective wagons which are mentioned in the placement memo. Afte Afterr load loadin ing g is ov over er ,all ,all the the wago wagons ns go goes es for for weig weigh h ment ment and and if any any adjustment is needed an adjustment memo is raised by the traffic dept and the fake goes to WRM by where necessary adjustment is made. After that TXR clearance certificate is obtained which is issued by train examiner then final weight is done. Then after final weighing forwarding note os handed over to the railways on the basis of which freight payment is made from finance dept. Rail ways then issues RR which is handed over to BC gate by courier. They inturn issue the STC (stock transfer challan) which goes to the respective branch online as well as by courier also. In case of road dispatch, dispatch, BCSY gives the clearance clearance of material material availability availability on the delivery orders. Then the vehicle in, inside the campus after getting LSGP 86
(loading slip cum gate pass ) from BC gate and the initial weighment of vehicle is done which is known as final challan and test certicicate is issued which is handed over to the concerned person. BC_gate
Function of BC –gate is of document generation for both rail and road dispatch . Incase of rail dispatch after getting the RR ‘s from railways STC s are generated and in case of road dispatch first LSGP is issued for entry of vehicle and then after loading final challan with test certificates are issued for exit of vehicle. NSY
In new stock yard all the crop ends of all the mill products came through internal wagons and all the defective materials like material containing surface defects , surface irregularities,, over and under sizes . the main functions going in NSY are receipts of materials and sales of materials. materials. Exports
This section looks for all the exports of the materials .at the start of the financial year based on past data analysis and target set quantities are allocated to various countries. Tenders are floated for the whole quantity allocated for the particular countries.sizes ,grades and chemistry are not mentioned in the tender . 87
for participating in tender EMD is required which was earlier 1% now ,US $ 4 per MT. accordingly the party is finalized by tender committee who qualifies all the criteria and intimated. After getting the confirmation from the party contract is sigend in which details about the quantity ,grade ,size and chemistry is mentioned and after that rolling program is finalized in consultation with PPm dept. and accordingl accordingly y material material is rolled . the buyer has has to give L C (letter (letter of credit) in the prescribed format of VSP. This LC may be issued from any bank of buyer ‘s choice which is called issuing bank but it should be advised from any Indian bank which is known as LC advising bank. Then this LC comes to RINL which is send to LC conf confir irm ming ing bank bank .thi .thiss LC conf confir irm ming ing bank bank lodg lodges es its its clai claim m to LC reimbursement bank. Balidity period of LC is normally given as 21 days payment is made . After loading the material following documents is generated: Invoice Packing list Bill of loding from captain of vessel Certificate of origin from local chamber of commerce Inspection certificate by BSI Woek test certificate from QATD 88
Shipping bill from customs Beneficiary certificate Copy of fax. CRM (cumsomer relationship managenent)
To give give thru thrust st to cust custom omer er serv servic icee acti activi viti ties es ,a cent centra rall CRM CRM cell cell is constituted at HQ marketing along with CRM cell in region and branch. They have adopted a customer policy and obtaining regular feedback from customer is also introdured. Some set guidelines and norms are adopted for various customer related acticities like issue of offer letter / delivery order, loading at stockyard and refunds etc. For expediting settlement of customer quality compalints , E- system has been inplelented on VSP’s intranet which eliminated lot of paper work in processing of quality quality complaints. For getting customer feed back one customer feed back form is there which customer can get from the concerned branch sales office,fill it and can send it here. On the basis of various parameters of feed back from customer’s satisfaction is Analzed and necessary actions are taken to improve the level of satisfaction. 89
They have also introduced system of E poll from customer which is under implementation . System of replying to customer queries on VSP portal with in 24 hours has also been implemented. This
section also looks for internal as well as external auditing, ISO
auditing ,&implementation and railway claims also taken care of by this section. Marketing administration
Monitiring of the budget allocation ,expenditure and budget projection for the subsequent year is looking after by this section. All the lease accommodation proposals from branches and purchase of office premises proposals for various branches are being processed by this section .attendance records of head quarters as well as of branches are maintained by administrationsection. All the medical bills of marketing department employes ,head quarter as well as branches are collected and send to personal dept. for clearance by administration section. Stationery requirement of all the branches as well as head quarter are consolidated by the section and send to finance for approval.
90
Over due out standing related to credit sales for various branches are also consolidated here and corresponding report is prepared .all the corrensondence i.e. receiving and dispatching of couriers and posts are also done by this section. Responsibility for the maintenance of conference halls and furniture is also on this section.
91
92
THE MARKETING MIX OF VIZAG STEEL PLANT
93
Marketing mix of Vizag steel plant
The mix of controllable variables that the firm/library uses to reach desired use/sales level in target market, including price, product, place and promotionFour P's
Product Price Place promotion 4 P’s. For a library this would be embodied in price of user’s time to access goods, a product would be a book or story time, place is a branch or bookmobile, and promotion is publicity, The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no
94
one else has tried.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use. Product mix:
“Product” refers to the goods and services you offer to your customers. Apart from the physical product itself, there are elements associated with your product that customers may be attracted to, such as the way it is packaged. Other product attributes include quality, features, options, services, warranties, and brand name. Thus, you might think of what you offer as a bundle of goods and services. Your product’s appearance, function, and support make up what the customer is actually buying. Successful managers pay close attention to the needs their product bundles address for customers. Your product bundle should meet the needs of a particular target market. For example, a luxury product should create just the right image for “customers who have everything,” while many basic products must be positioned for price conscious consumers. Other important aspects of product may include an appropriate product range, design, warranties, or a brand name. Customer research is a key element in building an effective marketing mix. Your knowledge of your target market and your competitors will allow you to offer a product that will If you are considering starting a new business or adding a new product, then make sure the product bundle will fit your business’s strengths and 95
weaknesses, and that it will provide an acceptable risk/return tradeoff. For instance, if your business is very good at timely response to customers, then timely service should be an important part of your product bundle. Think long term about your venture by planning for the ways you can deepen and broaden your product bundle. For instance, you may be able to take advantage of opportunities to add value through processing, packaging, and customer service. Other future growth may allow you to offer your product to different customers. Start-up businesses are most successful when they concentrate their efforts on one product or one market, like a restaurant or a car service center does. Later growth may occur in the same location or may be in different geographic regions. A different type of growth would be a diversification of products, with your business offering related products. Offering a whole range of products is most successful if the raw materials, production processes, and distribution methods are similar, which means you do not have to acquire new suppliers, skills and equipment, and distribution methods.
96
Product Varity:
WIRE RODS STRUCTURALS WIRE ROD COILS PLAIN ROUNDS RE –BARS Fe 500 SQUARES BEAMS FLATS ANGLES CHANNELS BILLETS
97
By products
Granulated slag Lime fines Ammonium sulphate Crude coal tar Coal tea fuel /pitch creosote mixture Hot pressed naphthalene Drained naphthalene oil Phenol fractions Light solvent oil benzene Toluene Coal tar wash oil Anthracene oil
98
RE BARS: Special features:
Low carbon content and made fron fulyy killed steel Higher yield strength & ulitimate tensile strength couples with Higher percentage eolngation when compared to cold twisted bars Of same grade. Easy bend ability ,weld ability and excellent ductility ensure economy and safety of use.
Advantages
Combination of high strength and high ductility Resistance to ageing Superior corrosion resistance Excellent bend ability and workability WIRE ROD COILS
5.5,6,6.5,7.5,8,9,10,11,12,12.7,13,14mm ROUNDS
16,*16.5,*17.5,18,20,*20.64,22,25,28,32,33.5,34,36,38,40,42,45 46.5,48,50,53,56,60,63,35,71,75,77,80mm. 99
REINFORCEMENT BARS
8,10,12mm 16,*18,20,*22,25,28,32,36mm
ANGLES
*50
×
50
×
5/6
mm
*60
×
60
×
5/6
mm
*65
×
65
×
6
mm
75
×
75
×
6/8
mm
90
×
90
×
6/8
mm
100 ×
100
×
8/10
mm
110 ×
110
×
8/10
mm
CHANNELS
MC
*40
×
32
×
5.0mm
MC
*75
×
40
×
4.8mm
MC
100
×
50
×
5.0mm
100
MC
125
×
65
×
5.3mm
MC
150
×
75
×
5.7mm
BEAMS
IPE-BEAMS
*180 ×
91
×
5.3mm
HE-BEAMS
*120 ×
114
×
5.0mm
ISMB BEAMS
125 ×
70
×
5.0mm
150 ×
75
×
5.0mm
175 ×
85
×
5.8mm
BLOOMS
245
×
245mm
-----
5.5
---
6.08mts
315
×
245mm
-----
6.0
---
6.40mts
BILLETS
125
×
125mm
---
8.0
---
10.4mts
90
×
125mm
---
6.0
---
12.0mts
75
×
75mm
---
6.0
---
12.0mts
65
×
65mm
---
6.0
---
12.0mts
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GRADES
BLOOMS
:
Mild steel/Low, medium & High carbon steel, forging Quality
BILLETS
:
Mild steel ,Low, medium& High carbon ,spring steel High mm & forging Quality steels
ROUNDS
:
Mild steel ,Low, medium carbon ,bright bat & forging Quality
REBARS
:
Thermo Mechanically treated (TMT) bars of different yield strengths.
STRUCTURALS :
Structural steel and High Tensile steel.
WIRE RODS
Low carbon, Wire drawing, bright bar, Electrode Quality,
:
Cold Heading Quality, Tyre – be an other High Carbon Grades.
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STRUCTURALS Special features
Piling and automatic styling of the structurals ensure minimum damage during handling and transport . Tension free rolling ensures closer tolerances and negative sectional weight. Universal beam rolled in medium merchant & structural mill is the most economical section which has got better sectional properties .has a simple symmetrical cross section providing more flexibility to designer. Fabricator and erector. This section can result in saving of 15% steel. PRODUCT BRANDING
Trade name: “a name given to a product or service” VSP started branding of its products with a vies to creating an image for itself improvig realizations .the rebar manufactured at VSP are at branding as Vizag TMT . Packaging Packing material
Any material used especially to protect something. The enclousure of something in apackage or a box. 103
Carrying something in a pack on the back ;”the backpacking of oxygen is essential for astronauts”. Bundle weights
4.5 tones
Bundle weights
4.5 tones to 10 tones
Nested and interlocked Compacted ,coil weight
1.2 MT approx..
Services
When the physical product cannot easily be differentained ,the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are Ordering ease , delivery, installation, customer training, customer consulting , and maintenance and repair. Delivery of goods of VSP
Delivery should be taken fron stockyard at ----on surrounded of order in original Delivery will be made to the customer /his representative authority in writing, on working days upto 4 pm providing this order is produced before stockyard executive before 3 pm. If the materials are to be bent /cut the charges thereon will be extra and required time should be given to enable the stockyard to keep the materials ready. 104
Delivery will be made as far as possible as pe rthe quantity indicated, but if there are any varition subject to maximum of 5 % the customer should accept the same. The customer shall be responsible for safe custody of the delivery order ,the company shall not be responsible for any consequences arising out of the loss of the delivery order by the customer and /or delivery against such delivery orders to the holder of the same. Warranties & returns
Complaints if any regarding quality may be lodged with the branch manager. With in 15 days from the data of delivery of the materials. A specifie form for filling cmpalints. Can be obtained from the branch office.VSP got a retail quality related issues detail procedure is layout to deal with quality components received from various customers in a time bound manner. All the quality components are to be settled in a time time frame given in the the policy. Price
.
“Pri “Price ce”” refe refers rs to to how how muc much h you you char charge ge for for yo your ur prod produc uctt or or serv servic ice. e.
Determining your product’s price can be tricky and even frightening. Many small business owners feel they must absolutely have the lowest price around. So they begin their business by creating an impression of bargain pricing. However, this 105
may be a signal of low quality and not part of the image you want to portray. Your pricing approach should reflect the appropriate positioning of your product in the market and result in a price that covers your cost per item andincludes a profit margin. The result should neither be greedy nor timid. The former will price you out of the market; pricing too low will make it impossible to grow. As a manager, you can follow a number of alternative pricing strategies. In the next column are eight eight commo common n pricin pricing g strate strategie gies. s. Some Some price price decisi decisions ons may may involv involvee comple complex x calculation methods, while others are intuitive judgments. Your selection of a pricing strategy should be based on your product, customer demand, the competitive environment, environment, and the other products you will offer. •
Cost-plus: Adds a standard percentage of profit above the cost of producing a product. Accurately assessing fixed and variable costs is an important part of this pricing method.
•
Value-based: Based on the buyer’s perception of value (rather than on your cost costs) s).. Th Thee bu buye yer’ r’ss perc percep epti tion on depe depend ndss on all all aspe aspect ctss of the the prod produc uct, t, including non-price factors such as quality, healthfulness, and prestige.
•
Competitive: Based on prices charged by competing firms for competing products. This pricing structure is relatively simple to follow because you maintain your price relative to your competitors’ prices. In some cases, you 106
can direct directly ly observ observee you yourr compet competito itors’ rs’ prices prices and respon respond d to any price price chan change ges. s. In othe otherr case cases, s, cust custom omer erss will will sele select ct vend vendor orss base based d on bids bids submi submitte tted d simult simultane aneous ously. ly. In those those cases, cases, gather gathering ing inform informati ation on will will be more difficult. •
Goin Goingg-ra rate te:: A pric pricee char charge ged d that that is the the comm common on or go goin ingg-ra rate te in the the marketplace. Going-rate pricing is common in markets where most firms have little or no control over the market price.
•
Skimming: Involves the introduction of a product at a high price for affluent consumers. Later, the price is decreased as the market becomes saturated.
•
Discount: Based on a reduction in the advertised price. A coupon is an example of a discounted price.
•
Loss-leader: Based on selling at a price lower than the cost of production to attract customers to the store to buy other products.
•
Psychological: Based on a price that looks better, for example, $4.99 per pound instead of $5.00 per pound. pound. After you decide on your your pricing strategy, the amount of money you will actually receive may be complicated by other pricing aspects that will decrease (or increase) the actual amount of money you receive. You will also have to decide how to determine: • Payment period: Length of time before payment payment is received. 107
•
Allowance: Price reductions given when a retaileragrees to undertake some promotional activity for you, such as maintaining an in-store display.
•
Seasonal allowances: Reductions given when an order is placed during seasons that typically have low sales volumes to entice customers to buy during slow times.
•
Bundling of products/services: Offering an array of products together.
•
Trade discounts (also called “functional discounts”): Payments to distribution channel members for performing some function such as warehousing and shelf stocking.
•
Price flexibility: Ability of salesperson or reseller to modify price.
•
Price differences among target customer groups: Pricing variance among target markets.
•
Price differences among geographic areas: Pricing variance among geographic regions.
•
Volume discounts and wholesale pricing: Price reductions given for large purchases.
•
Cash and early payment discounts: Policies to speed payment and thereby provide liquidity.
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•
Credit terms: Policies that allow customers to pay for products at a later date. The methods discussed here should be a base from which to construct your
price. options will vary depending on how choose to sell product. For instance, a product is made but don’t sell it directly to the customer, then you will want to know who sets the retail price and what margin they will require. Tracing the path of product from production to final purchase is a useful exercise to discover this information. The research needed to understand the pricing along the distribution path will be more than worth the time it takes. Whatever price may be, ultimately it must cover costs, contribute to image by communicating the perceived value of product, counter the competition’s offer, and avoid deadly price wars. Price is the one “P” that generates revenue, while the other three “P’s” incur costs. Effective pricing is important to the success of business. VSP PRICES AND PRICING PRICES
Prices of iron and steel materials are fixed by HQ pricing committee. VSP collecting the information on regular basis market trends on regular basis and data will be used on pricing , decision. 109
Pricing
The price and extra if any ,ruling at the time of delivery will be charged in the invoices . the finance executive /assistant ,while preparing the invoice will ensure that the following are charged. 1. Current stockyard prices ,as per stockyard pricelist circulated by the Head quarters. 2. Applicable extra additive any on stockyard price in case of materials which attract such extras. 3. Approved rebates whenever applicable under the approval of competent authority. 4. Octroi , entry tax and /or any other levy at appropriate rates. Central and state sales tax as applicable /concessional forms if any. 5. Surcharge on sales tax if any. 6. Bending and cutting charge as approved schedule of rates. 7. Forwarding charges in case of rail booking. 8. Siding charges. Price revision
Whenever there is a price increase announced , all further deliveries should be stopped ,simultaneously action should be immediately taken to collect 110
additional advances to the extend needed an all existing partially executed delivery orders .if this is not possible , BM may advise stockyard to reduce the quantity to be delivered , so that the value of the deliveries including taxes and levies are within the advance collected .VSP following monthly based pricing system.
Payment period
Payment from the customers shall be received in advance ,by DD/ pay order on any scheduled bank ,draw in favour of “RINL VSP Collection account” for the full amount mentioned in the offer letter. Cheques will be accepted only from those parties to whom the cheque facilities have been extended. Normally delivery shall be arranged on realixation of chequr. In exceptional cases, where deliveries are made on receipt of cheque ,realization of such cheques should watched and ensured. Payment by parties and scrutiny thereof. The customer has to submit the following documents
1. The copy of the offer letter duly accepted by the customer. 2. Sales tax declaration form. 3. Authorization for collection of DD by the authorized representative of the customer as provided in the offer letter. 111
4. DD/cheque as stipulated in the offer letter. 5. The dealing assistant shall accept only DD /PO tendered by the customer to whom the offer is made or its authorized representatives. The documents shall be put up for signature of concerned executive of the branch ,after the assistant shall prepare the money receipt for preparation of delivery order and to be furnished to the customer.
Acceptance of cheque
Payments will normally be accepted in the form of demkand draft or pay order. How ever in the same case of specific parties, branch manager may with the approval of the competent by cheque. The chequeshall be local .no out station cheques will be accepted. Extension of credit
Credit is often extended with approval of competent authority to affect sales during ‘difficult’ times – lack of demand ,competition, wrong/or excess dispatches leading to stock building up, genuine problems faced by valued customers who temporaily seeks relief in the form of credit etc…
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Credit is to be given only on approval by competernt authority. The period limits should be strictly enforced. All such credits by the customer on facour of VSP. promotion
“Promotion” refers to the advertising and selling part of marketing. It is how you let people know what you’ve got for sale. The purpose of promotion is to get people to understand what your product is, what they can use it for, and why they should want it. You want the customers who are looking for a product to know that your product satisfies their needs. To be effective, your promotional efforts should contain a clear message targeted to a specific audience reached via an appropriate channel. Your target audience will be the people who use or influence the purchase of your product. You should focus your market research efforts on identifying these individuals. Your message must be consistent with your overall marketing image, get your target audience’s attention, and elicit the response you desire, whether it is to purchase your product or to form an opinion. The channel you select for your message will likely involve use of a few key marketing channels. Promotion may involve advertising, public relations, personal selling, and sales promotions. A key channel is advertising. Advertising methods to promote your product or service include the following. 113
Radio:
Radio advertisements are relatively inexpensive ways to inform potential local customers about your business. Mid-to-late week is generally the best time to run your radio ad. Television:
Television allows access to regional or national audiences, but may be more expensive than other options. Print:
Direct mail and printed materials, including newspapers, consumer and trade magazines, flyers, and a logo, allow you to explain what, when, where, and why people should buy from you. You can send letters, fact sheets, contests, coupons, and brochures directly to new or old customers on local, regional, or national levels. Electronic:
Company Web sites provide useful information to interested consumers and clients. Password-protected areas allow users to more 5
Purdue extension
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Knowledge:
Knowledge to go intimately interact with you. Advertisements allow broad promotion of your products. Direct e-mail contact is possible if you have collected detailed customer information. Word of Mouth:
Word of mouth depends on satisfied customers (or dissatisfied customers) telling their acquaintances about the effectiveness of your products. Generic:
Generic promotion occurs when no specific brand of product is promoted, but rather a whole industry is advertised. For instance, generic advertising is commonly found for milk, beef, and pork. Public relations (PR) usually focuses on creating a favorable business image. Important components of a good public relations program include being a good neighbor, being involved in the community, and providing open house days. News stories, often initiated through press releases, can be good sources of publicity. Personal selling focuses on the role of a salesperson in your communication plans. Salespeople can tailor communication to customers and are very important in building relationships.
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While personal selling is an important tool, it is costly. So you should make efforts to target personal selling carefully. Sales promotions are special offerings designed to encourage purchases. Promotions might include free samples, coupons, contests, incentives, loyalty programs, prizes, and rebates. Other programs might focus on educating customers through seminars or reaching them through trade shows. Your target audience may be more receptive to one method than another. Additional sources of promotion may be attending or participating in trade shows, setting up displays at public events, and networking socially at civic and business organizations. Advertising of VSP products
RINL following the advertising in a form of paper advertisement and it is appointed the DLD’s (district level dealers ) development of VSP products in rural areas also. DLD’s appointed throughout country under various branches. It is a part of promoting different boarding’s in different junctions the main for DLD is increasing the productivity in rural areas. The boarding also contains details of the products being used in construction field, as part of promoting VSP products in hording painting are made and possible in different roots describing about the using of construction as TMT REBARS in this place they are mention contract number and address of the senior branch 116
manager, RINL promoting activities taken wild place in city’s also they are establishing hordings in railway stations, bus stand, air port etc… Public relations and publicity
Public relation encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and options an organization and its product. Unlike advertising and personal selling, it does not include specific sales manager. The targets may be customers, stock holders , the Government agencies or special interest group. Direct marketing
Direct marketing is any unsolicited contract business makes with existing or potential customers in order to generate sales or raise awareness. VSP following direct marketing system where as builders and constructers they are directly approach to the company this system is called as direct marketing. Place( distribution)
“Place” refers to the distribution channels used to get your product to your customers. What your product is will greatly influence how you distribute it. If, for example, you own a small retail store or offer a service to your local community, then you are at the end of the distribution chain, and so you will be supplying
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directly to the customer. Businesses that create or assemble a product will have two options: selling directly to consumers or selling to a vendor. Direct Sales
As a producer, you must decide if supplying direct is appropriate for your product, whether it be sales through retail, door to- door, mail order, e-commerce, on-site, or some other method. An advantage of direct sales would be the contact you gain by meeting customers face to face. With this contact you can easily detect market changes that occur and adapt to them. You also have complete control over your product range, how it is sold, and at what price. Direct sales may be a good place to start when the supply of your product is limited or seasonal. For example, direct sales for many home-produced products can occur through home based sales, markets, and stands. However, direct sales require that you have an effective retail interface with your customers, which may be in person or electronic. If developing and maintaining this retail interface is not of interest to you or you are not good at it, you should consider selling through an intermediary. Reseller Sales (Sales Through an Intermediary)
Instead of selling directly to the consumer, you may decide to sell through an intermediary such as a wholesaler or retailer who will resell your product. Doing this may provide you with a wider distribution than selling direct while 118
decreasing the pressure of managing your own distribution system. Additionally, you may also reduce the storage space necessary for inventory. One of the most important reasons for selling through an intermediary is access to customers. In many situations, wholesalers and retailers have customer connections that would not be possible to obtain on your own. However Market Coverage
No matter whether you sell your product direct or through a reseller, you must decide what your coverage will be in distributing your product. Will you pursue intensive, selective, or exclusive coverage? Intensive distribution
It is widespread placement in as many places as possible, often at low prices. Large businesses often market on a nationwide level with this method. Convenience products—ones that consumers buy regularly and spend little time shopping for, like chewing gum—do better with intensive (widespread) distribution. Selective distribution
It narrows distribution to a few businesses. Often, upscale products are sold through retailers that only sell high-quality products. With this option, it may be
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easier to establish relationships with customers. Products that people shop around for sell better with selective distribution. Exclusive distribution
It restricts distribution to a single reseller. You may become the sole supplier to a reseller who, in turn, might sell only your product. You may be able to promote your product as prestigious with this method, though you might sacrifice sales volume. Specialty products tend to perform better with exclusive distribution. Other Place Decisions Product characteristics and sales volumes will dictate what inventories to maintain and how best to transport products. Additionally, the logistics associated with acquiring raw materials and ensuring that final product is in the right place at the right time for the right customers can comprise a large percentage of total costs and needs careful monitoring. You may decide to have a combination of all the distribution methods. Whatever you decide, choose the method which you believe will work best .
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selling to the wholesalers:
There may be four or five sport articles wholesalers in Arizona. you sell your fun boards to these big men. On turn the wholesalers se the fun boards to the retailers which finally sell to their customers. The choice of distribution channel heavily depends on your product and place in the productive process. Distributing channel:
VSP appointed the DLDs (district level dealers ) in every district. They are distributing the VSP products in rural areas. Every district DLDs doing their activities and this number will be increasing two or more then. DLDs appointed only selling for TMT bars. VSP also directly producing materials through yield users.
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VSP channels and distribution Direct marketing ↓
Indirect marketing ↓
Seller
seller
↓
↓ Trader user ↓ User
Inventory managements
Thrust will be on reduction of inventory at lease at the rate of 5% every year. The aim would be to work towards just in time inventory for spares and consumable. Tor high value and regular consumption items will be increased for inproving reliability and reducing procurement cost. It is proposed to reduce the number of indents through standardization. Transport
The transportation logistics cover receipt of principal raw materials, dispatch of finished products and internal transportation of in process material and other products.
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Rail :
Barring a few minor raw materials, the bulk of the inward raw materials is received by rail, at present the imported raw materials, received at the VPT, are also moved to the plant by rail. Since railways had already acquired land to cater up to 10 mt expansion of vsp no major changes are equired in their yards to meet the enhanced plant requirements , however, for movement of iron ore from bailadilla , some minor matching facilities are needed. Port
Presently, the imported raw materials are received through VPT. As per the government decision , construction of a port of gangavaram, adjacent to the plant .this enable VSP to shift its imports and exports from VPT to gangavaram port and avoid surface transportation. The material received at gangavaram port transport into the plant through a conveyor system. The port at gangavaram help in avoiding the rail transportation cost from VPT to VSP and also avoid cost og tipping of imported coal and SMS limestone wagons.
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SUMMARY & FINDINGS
124
FINDINGS
The following are the findings from the project done in Vizag steel plant .
•
In production department VSP following high level technology.
•
The marketing conditions are very good.
•
VSP producing qualitative products with intermational standards and it is producing wild verities of products.
•
Pricing of the done monthly basis .
•
Pricing of the products is quite satisfactory.
•
Customer care services are also recognizable.
•
There is regular interaction between the customer to company
•
Customer feedback system is existed
•
Present market conditions favor able to VSP products
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SUGGESTIONS:
Already sufficient demand in the market of the VSP products.
More utilization of available human resources & supply more products .
VSP introducing the new products and they want to produce different sizes of products.
They producing Angles and they want to increase more sizes to increase sales and set the market demand.
The market pricing feedback more reach basis users and middlemen’s in a structured manner to make the pricing decision effectively and to ensure competitive price.
More distribution centers like DLDs for various branches include TMT bars are to be appointed. This will help to reach the rural markets.
They want increasing more publicity by way of advertisements ad using various sources like media, radios newspapers to done in specific location where VSP present is poor awareness level are look.
This helps to increase the production of VSP. 126
BIBLIOGRAPHY
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