VOCATIONAL TRAINING

REPORT ON
BHILAI STEEL PLANT

PREPARED BY:-
- VINAY DEWANGAN

ACKNOWLEDGEMENT
Training is one of the most important aspects for an engineering student's career. It is to
strength the theoretical step.. Through training a student is acquainted with the latest
technology and recent development.

Firstly I convey my sincere thanks to all the BSP Employees.

Their guidance was omnipotent and incompatible throughout the training period.

I also convey our special thank to Mr. SHOBRAJ SINHA (Training officer)

or providing us this opportunity to under this training.

We also express our regards to all member of H.R.D in BSP.

would like to express my thanks to all departments for valuable suggestion, guidance,

support encouragement and providing necessary intonation for the project.

Name of Student-VINAY DEWANGAN

 CERTIFICATE
this is to certify that the project work entitled 'MARKETING OF PRIMARY &
SECONDARY PRODUCTS AT BHILAI STEEL PALNT" in bhilai project has been can.

Out by MBA 3. SEMESTER during the session 2019-20.

ICFAI University Raipur (C.G.), has won works and has been prepared under,guidance.

I wish the best h future walk of life.

Project guide
MR. Prakash kumar sahu
MANAGER
(MARKETING &BUSINESS PLANNING)
Bhilai Steel Plant

Sr. Contents
no.
1. About BSP
 Company profile
 Organization chart of BSP
 Project objective and scope

2. Products
 Introduction
 Necessity of selling products
 Central marketing organization (CMO)

3. Marketing and Bussiness planning

 Marketing department

4. Metal juction
5. SWOT Analysis
6.  Conclusion
 Limitation of the study
 Bibliography
 About Company
Eleven times winner of Prime Minister's Trophy for Best Integrated Steel Plant in the
country,Bhilai Steel Plant (BS, is India's sole producer & supplier of world class rails for Inffian
Railways including 260 metre long rails, and a major producer of large variety of wide and
heavy steel plat. and structural steel. With an annual production capacity of 3.153 MT of
saleable steel, the plant also specializes in other products such as wire rods and merchant
products. The entire range of TMT products (Bars & Rods) produced by the Plant is of
earthquake-resistant grade and superior quality. The plant also produces heavy structural
including channels and beams.
Since BSP is accredited with ISO 90012000 Quality Management System Standard, all
saleable products of Plant come under the ISO umbrella. The Plant's HR Dep’t is also ceMiled
with ISO 9001:2000 QMS Standard. ISO:14001 has been awarded for Environment
Management System in the Plant, Township and Dalli Mines. The Plant is accredited with SA:
8000 certification for social accountability and the OHSAS-18001 ceMfication for
Occupational Health & Safety.
BSP has received Integrated Management System (IMS) Certificate by a single certifying
agency (M/s DNV), integrating QMS, EMS, OHSAS & SAMS - becoming the first SAIL unit and
among few comorate houses in InMa to achieve this unique distinction. Among the long list
of national awards it has won, Bhilai has bagged the CII-ITC Sustainability award for three
consecetive years. BSP won 1st prize in National Energy Conservation Award 2013 in
Integrated Steel Sector in recognition of major energy saving initiatives in 2011-12 and '1,13.
The Plant again won this award for Year 2014 for achieving a 5, saving in thermal energy
consumption and savings of 2% in electrical energy consumption over the previous year.
 Managing director: Mr. Malakai Naiyaga

VISION STATEMENT OF BSP

“ TO BE RESPECTED WORLD-CLASS CO-OPERATION AND THE LEADER IN INDIAN STEEL
BUSINESS IN, QUALITY,PRODUCTIVITY,PROFITAILITYAND CUSTOMER SATISFACTION "

 BHILAI STEEL PLANT is one of the largest steel plants in INDIA. It has an
installed capacity of more than 4 million tones of crude steel per year and
covers an area of about 36 sq.kms.It was built by RUSSIAN COLABORATION.

 SAIL is Indias largest steel producing company with a turnover of 48,681 crores.
The company is among the top 5 highest profit earning corporate of the
country. SAIL steel is widely used by sectors such as defense, railways,
construction, automotive etc..
 Achievements

 Eleven-times winner of the P.m Wis., Trophy for be. integrated steel plant in
the country.
 Greentech Safety Gold Award by Greentech Foundation for outstanding
achievement in Safety Management to Bhilai Steel Plant.
 National Safety Award to Bhilai Steel Plant.
 announced by the Ministry of Labor 8, Employment, Government of India –
2008.
 BSP bagged the prestigious Golden Peacock National Quality Award 1 conferred
by institute of Directors on 28th january,2011.
 BSP has been awarded the Golden Peacock Eco-unnoyati On Award instituted
by World Environment Foundation.

Bhilai Rails
 Bhilai is the sole supplier of the country's longest rail tracks of 260 meters.
 Largest producer and leading rail maker of the world.
 Four and a half decades of experience in rail making.
 Produced over 15 million tones of rails; 2.7 lakh k in length.
 Indian Railways— World’s second largest rail company moves exclusively on
Bhilai rails.
 Rails exported to 10 countries with exports to South Korea, New Zealand,
Argentina, Turkey, Iran, Egypt, Ghana, Bangladesh and Malaysia
 Summary :-
s.no week shop Learn skill
1 1st week Document verification & Learn All information
safety class about safety in plant
2 2nd week Sintering plant Learn which material
use in plant
3 3rd week BBM Learn about bloom and
blade mill
4 4th WEEK Orientation Learn from marketing
department officers
M
  BHILAI STEEL PLANT Bhilai,Chhattisgarh Specialty:
Rails, plates, heavy structural, wire rods.
 BOKARO STEEL PLANT Bokaro, Jharkhand Specialty :
Coils, galvanized sheets.
 DURGAPUR STEEL PLANT Durgapur, West Bengal Specialty:
Wheels and axel
 ROULKELA STEEL PLANT Rourkela, Orissa Specialty:
Pipes, sheets & plates.

SPECIAL STEEL PLANT

 ALLOY STEEL PLANT Durgapur, West Bengal
 SALEM STEEL PLANT Salem, Tamilnadu
 VISHESVARAYU IRON & STEEL PLANT Bhadrawati Karnataka
BHILAI STEEL PLANT
Captive mines
 Iron-Ore- Dalli-Rajhara Iron Ore Complex, 8o kms from Bhilai
 Limestone- Nandini, 23 kms from Bhilai Dolomite- Hirri, 15o kms from Bhilai
 COAL COMES FROM AUSTRALIA AND NEWZEALAND
 The Blast Furnace department consists of 7 Blast Furnace.
 Three of them are of 1033 cu.m. useful volume
 Three of them are 1719 cu.m.
 BF 7 is of 2000 cu.m.
 There are 3 main sections of the department:

1. Raw Material Section

2. Furnace Section

3. Auxiliary section
(A )Extrenal Traffic:

Bringing in Raw Materials and dispatch of finshed products in association with

Indian Railways.The Work Linked up on one side with Bhilai Exchange yard and on
the side with maroda Railway Station both of South Eastern Railway.All raw
materials For the plant except ferro alloy and manganese of ferro alloy&Minig ore.
Empty wagons for outward loading and dispatch of finshed and semi finished
products are carried out through Bhilai Exchange Yard link, Works Station is the
main exchange yard of our plant connected with double lines to bhilai Exchange
Yard.

(B) Internal traffic:

It is mainly for inter-shop movement of various finished and semi finished

goods,raw material,scrap,and all other miscellaneous traffic

inside the plant.lt is organized in a modern style of contact schedule system.

 All activities are controlled by five stations and one Peripheral Yard
a) Works Station and Rolling Mills Post

b) Raw Material Station &Plate Mill Post

c) Blast Furnace Station and Cold Pig Yard

d) Steel Station

e) Open Hearth station and Muck Dump

f) Peripheral Yard

Production in plant :-
Product mix Tones/annum
Semis 533,000
Rail & heavy structural 750,000
Merchant Products (angles, 500,000
channels, & TMT bars)
Wire Rods (TMT, plain & ribbed) 420,000

Plates (up ton wide) 950,000

Total saleable steel 3,153,000

Plate Mill

 Plates of wide variety, in any required size, and strength, chemical and physical
properties, can be produced here LI capacity to produce high pressure, boiler
quality and high tensile steels Bhilai has the widest plate tell in the country, and
it uses continuously cast slabs as input.
 On 29. March,19133 , First Plate was produced from this Mill
 it has three Reheating furnace

Production

Capacity 9,50,000 TON

Plates thickness 8-120 mm
Width 1500-3270 mm
Length 5-12.5 M
Rail and Structural Mill
Capacity - 7, 50,000 T Products
• Rails - F252 Kg/m & F260 Kg/m ; UTS 880 N/mm2 rails as per 1RST-12/96
specifications . Euro norms and international standards.
• Thick web asymmetric rail Zu 1-60
• Beams - 600.500.450,400.350,300 & 250.
• Channels - 400.300 & 250.
• Angles - 200 & 150.
• Crossing Sleeper.
• Crane Rails - KP80. 100,120 & 140.

Blast Furnace

 type of metallurgical furnace used for smelting to produce industrial metals .

 fuel, ores and flux (limestone) are continuously supplied through the top of the
furnace. a hot blast of air(sometimes with oxygen enrichment) is blown into
the lower section of the furnace through a series of pipes.
BLOOMING & BILLET MILL ,

Blooming. Billet Mill popularly known as "Mother Mill", is a primary mill designed to
roll 2.5 MT/ Annum of ingots into semies in t. fonn of bboms & billets. A two high
reversing blooming mill and 12 stanth continuons billet mill are part of this
department. The 1150mm two high reversing Blooming Mill is designed to roll steel
ingots into bboms for Continuous Billet Mill and Rail & Structural Mill. Average weight
of steel ingots which are used for rolling is 8 to 9 Ton. Major sections are described
below
SOAKING PITS

Heating of the ingots and soaking at a particular temperature is done in the soaking
pits. There are 14 groups of recuperative type soaking pits. Each group consists of 2
pits. Each pit is heated by two bumers situated diagonally opposite in the upper pan
of the lateral wall of the pit. The fuel burnt is mixture of coke oven gas and blast
furnace gas with a cabrific value of .0 KCal./Cu.M. Air is preheated in ceramic
recuperators and the gas in the metallic recuperators. The ingots are placed in the
pits in such a way so that proper circulation of the flame around the ingot is ensured.
Generally 16 ingots are placed in one chamber at a time. Strict records are
maintained to avoid mix,. After 4th to 5th round of rolling, cleaning of the pit is done
by scrapper bar held by the tongs crane and bottom is made with two buckets of
Coke Breeze. ait of the 28 pits (14x2), 25 to 26 pits are under operation depending on
requirement and the balance are under repair/reserve. Operational data of Soaking
Pits Dimensions of the pit
Length : 6.7m
Withh :4.2m
Depth : 4.5m
Soaking temp. : 1300 °C
Pit pressure : .0.2/0.3mm w.c.
 PRODUCTS
In BHILAI steel plant. the Finished products are categorized to two parts.

PRIMERY PRODUCTS

These area actual products which are originally produced for blooms, channels.
round.. angels. TMT bars. Wire rods. Rails, structure etc.

SECONDARY PRODUCTS

This is defective and rejected materials due to improper mixing of chemicals

components or fail to meet the optimum requirements. Scrap generated inside Bhilai
steel plant is teemed as seem!, products. The secondary products are ferrous
materials generated from various production inks which can be used for remolding to
produce iron offered for sale if rendered surplus in the production process for ex-
Defective heavy blooms. Defective rails, Rail cutting, scrap etc.
Details of Second, products-
 Defective heavy blooms.
 Defective Billet
 Defective slabs
 Plate mil side shearing
 Defective rails
 Rail cutting
 Rod cutting
 Plate cutting
  NECESSITY FOR SELLING OF PRODUCTS
The net sales realization from the secondary products. by products and co-products of
bhilai steel plant around Rs. 1700 crores which is quite more than any of the big industries.
Reproduction of main products these secondary products requires remelting it again from
required composition of materials as per the designed specification.

By selling to different mils/processors the plant get around Rs. 4. crores per ton of direct
profit than by reproducing it to main product. By using the. materials traders/processors
make raw materials for different finished product., which also make huge profits and plant
is not losing anything.

PROCEDURE FOR SALE

 By February, the availability for next financial year is estimated.

 A List of customers of coal chemicals is prepared and the customers
intimate section about their requirements.
 According to requests submitted. tie various customers are told the
quantities that be provided to them
 To buy a product. a security has to be deposited.
 The buyer arrange, transport.

SECONDARY PRODUCTS AND BBM

Some of the secondary products are slag. Defective and refractory bricks, flue dust.
Scrap rolls etc. The sale of products is done by floating tenders and forward auction.
Due to surplus capacity of blooms and billets. they are sold in the market as semi-
finished products.
Sales and Distributions of Secondary products

This involve a direct marketing process. The management of BSP is consultation with
the officials of the market development and customer service department works as
gm, for sale of these items. 'There are two methods of selling these re-roll able
defective materials.

By E-auction.

E-Auction is internet based selling method of secondary products. In this method

there is online bidding auction done by company website. Applicants can offer their
price money with particular quantity they want. After closing the date of the auction
within 5 working days the final customer name is declared on the website based on
the price money offered by them They are ignited for further process of purchasing
material

MARKETING SCENEARIO
Without a perfect market goods can neither be purchased nor can it be sold. Market
is one of the major and crucial departments pillars of the every organization and it
can be used with the case of SAIL .

Customer Satisfaction and Quality Assurance. these are two motives of SAIL for
achieving the goals and establishing the market SAIL has wide network across the
country. IT is having its CMO for marketing division. It has headquarters situated in
Kolkata.
Bhilai Steel Plant has established its position through the better service. It has several
departments among which marketing division play a key role. Every plant has its owl
Branch Sales Office (BSO) who looks upon the orders of CMO. These orders are then
sent to the Plant for checking the availability and production for dispatch AI
departments are linked through Management Information System (MIS) from CMO
to each and every division of plant.

For marketing of different type of items policy are adopted by BSP are:-

 MOU is an agreement signed between the plant and customer for assured
quality and quantity.
 CENTRAL MARKETING ORGANIZATION

Central marketing organization ,(CM0), one of the largest marketing networks in .

country markets mid steel products from the four integrated plant of SAIL The CMO
headquarter is at Kolkata and the commercial directorate is at New Delhi A
nationwide network of regional offices. sale offices and several strategically placed
warehouses is further supplemented by consignment agent. and authorized dealers
to meet the demands of the smallest customers in the remotest corners of the
country. CMO maintains is aggressive marketing effort, order to retain market
leadership by meeting customer requirements and evolving to increase sales. In order
to strengthen the marketing approach and initiate the product and segment
specialization CMO has been reorganized on . basis of long and flat products. Key
account management process has been implemented in CMO to provide better
services. Quality.

This being followed by customer satisfaction index (CSI) to increase responsiveness to

the customer needs. Yet another significant development has been re-oriented of the
sale branches and warehouses. This wide range of network of authorized dealers also
help meet customers demand for steel in small quantities.

Regional offices of CMO

North region East region South region West region

Allahabad Sliguri Bangalore Ahmadabad
Chandigarh Bokaro Chennai Bhilai
Faridabad Jamshedpur Coimbatore Bhopal
New Delhi Patna Hyderabad Mumbai
Kanpur Guwahati Cochin Nagpur
 INTRODUCTION:-
Marketing Department
The marketing of prime products of BHILAI steel plants of SAIL is handled by CMO (Central
Marketing Origination), The marketing department of BSP is entrusted with a job of co-ordination
between the CM0 and the plants as when as the marketing of secondary products and by-
products for ease of functioning the market is divided into various functions: -

MARKETING AND STRATEGIC PLANNING

 Handing of Customer complain- In case of any complaints by a, customer. the complain is
sent to GM and the particular mill The CMO has an application engineer for commercial
settlement which inspects the material and if found defective adjustments are made
payments or material is taken back.
 Customer feedback-Customer feedback is taken by this section on a periodic basis in form
of customer satisfaction feedback reports. A four point feedback is taken for increasing the
market share and for customer retention. There is key accounts manager who handles
them This is done to provide single window service to customers.
 ISO actives- The various documents pertaining to ISO activities are handled and managed
here.
 Training-this section also overviews the trailing of new recruits summer trainees in
marketing department.
 Product development- The management and research group ate CM0 studies the market
demand and supplies. Feasibility for when is checked at plant and furthered for approval.
 Strategic planning-This section deals with the product nix. Quantum of exports. Monthly
tonnage. and for other parameters according to demand.
 EXPORTS
The International Trade division of CMO is main body that handles exports of steel it
SAIL BSP has been a major exporter in the past. Rail has been exported to over 50
countries. The procedure of

Exports is as follows:-

 The international buyer sends an enquiry, to ITD for the availability of goods.
 If response is positive then a letter of credit is sent in name of buyer and deal is
signed specifying the terms and conditions.
 ITD gives a contract to BSP b form of work order which is processed here and
sent to mill, for production.
 After production of goods Dispatch advice is sent to production department.
after which goods are verified and tested. The goods are sent to vizag for
export.
 At the ports the various formalities are completed relating to: Export license GR
form Marine insurance Bill of loading. After receipt of goods. Payment is
received through bank.
 INTERNATIONAL TRADE DIVISION
International trade division (ITD) of CMO manages exports of mild steel products and
maintain close liaison with buyers abroad. ITD has been successful in making SAIL
steel. a familiar name across the continents. Transport and shipping division (T&S) of
CMO performs the important functions of ensuring proper dispatch of export
materials and timely import of raw materials to keep SAIL plants going.
BRANCH SALES OFFICE

This office is related to the sales of prime products of the Bhilai steel plant. which has been acting
as interface between CMO and BSP. The different issues has been related to products and its
delivery is deal with BSP through this department. We can say it coordinates about the
production and dispatch different steel plants. CMO has got SRM offices in Bokaro, Durgapur and
Bhilai .

Functions of Branch sales office (PSO)

 Booking of order from customers on long term and short term basis.
 Passing details of booking to concerted sales resident manager office.
 The meeting related to the sale of product is done intermittently.
 The customer complaints are also handled by plant through this branch sales
office with proper channel of meeting.
 CREDO
1. We build lasting relationships with customers based on trust and mutual benefit.
2. We uphold highest ethical standards in conduct of our business.

3. We create and nature a culture that supports flexibility, learning and is proactive to
charge.

4. We chart a challenging career for employees with opportunities for advancement

and rewards.

5. We value the opportunity and responsibility to make a meaningful difference in

people's lives.
 Advantages for the seller :-

 Process efficiency through

- Reduce time to market.

- Reduce costs and manpower

- Reduced inventory due to shorter cycle time.-

 Increase renew through wide reach

 Better price discovery mechanism

Advantages for the buyer

 Convenience
 Transparency
 Lower costs due to intermediation
 Faster fulfillment through value-added services like e-payment and impaction
services.
 Dedicated support through various stages of auctions.
 SWOT ANALYSIS

Strength:-
1. It has country wise network of stockyard and dockyards.
2. Consistency in quality
3. Customer perception
4. SAIL products has international standards.
5. SAIL maintains a better customer relationships approach.

Weakness: -

1. Quality of the products are slightly inferior as compared to its competitors who are having
latest technology.
2. Not cors,tent to meet is market demand will supply.

Opportunities: -
1. Due to wile network customers demand can be meet up easily.
2. SAIL can diversify itself in production of various other products according to the market dement

Threats: -
1. Main threats are competitors Ike TISCO, ESSAR, JINDAL etc.

2. Obsolesce of existing technology.

3. Rigid decision making process.

 CONCLUSION
 BSP has faced large ups and down in terms of their productivity and profitability. Its
continuous improvement in terms of quality is one of the flagship for sale. Bhilai
contribution in terms of materials. money and men has been commendable.

 BSP has faced the problems of coal products in last year but still has maintained its
productivity as per the plants and schedules. BSP has gained huge margin profit of 2148
crore in year 2009-2010. thanks to modernization and maintenance that has changed the
fortune of BSP.

 With the new challenges. Changing market and environment BSP has sufficient capacity to
look further to gain profits. It is backed up by the chief asset and has a strong and capable
team who has caliber to face a, obstacles.

 BSP has implemented many steps for strengthening Ls fundamentals such as cast
reduction, technology increment lowering borrowing level. persistent effort’s to bring
about a positive attitude towards organizational goals among employees throw, planned
commutation. training. optimum utilization of resources.

 Commenting on the cost reduction strategy of organization managing director Mr. Rajendra
Prasad says . As the steel horizon brighten up after a long period of bloom Bhilai makes
most of it and emerges as leader.

 While studding the history of SAIL BSP is a part of SAIL I also history, about BSP. It was
established on 2,february 1955 with a capital of 1MT. raw is production has increased up to
7MT per year.

 Majority of the companies buy the steel scrape from BSP and also they buy ion scrape.
melting scrape etc.

 Most of the surveyed convenes are dealing with BSP since last 10 years and most of them
buy secondary products from BSP only.
 BIBLIOGRAPHY

Internet:-
https://sail.co.in/plants_bhilai.asp

company profile
https://sail.co.in/searchindex1.asp

about the sail

https://feildtofactory.ise.ac.uk/steelplanthistory.htm

Others:-
(BSP) Sail journals
(BSP) Sail brauchers
(BSP) Sail manuals