PROJECT REPORT

ON
“ONLINE MARKETING
AT
ROURKELA STEEL PLANT (RSP)”

Under the guidance of:

MR I.M PANDA, MANAGER, MARKETING,

(IA &CDY)

ROURKELA STEEL PLANT.

Submitted by:
Deepak Mohanta
3rd Semester MBA,
G.M.College(Autonomous),
SAMBALPUR.
 DECLARATION

I do hereby declare that the project report entitled “Online

Marketing in RSP” has been prepared by me under the guidance of
my external guide Mr. I.M.Panda, Manager (Marketing), Rourkela
Steel Plant (RSP), Orissa.
It is only for academic purpose and it has not been published or
presented any where else for the award of such degree.

DATE: Deepak Mohanta

PLACE: Dept. of Professional
Courses,

G.M College(auto),

SAMBALPUR
 ACKNOWLEDGEMENT

It is my privilege to thank all of them who have supported me in carrying

out this project successfully.

Firstly I would like to express my sincere thanks to two separate concerns

Department of Business Administration, G.M.COLLEGE and RSP, the former
for arranging and guiding me to start the project and the latter for
extending their noble help for its formation and completion.

I express my sincere gratitude to Mr. I. M. Panda, Manager (Marketing) RSP

for extending guidance and direction in preparing this project, without
whose cooperation the project may not be completed.

I would also thank all the staff of Marketing Department, RSP, who have
spared their valuable time and extended their kind cooperation for data
collection and preparation of this project.

Deepak Mohanta
Dept. of Professional

Courses, MBA 3rd SEM

G.M. COLLEGE
 CERTIFICATE

This is to certify that the summer project entitled, “Online

Marketing at Rourkela Steel Plant,” is an original piece of work done and

submitted by Akankhya Parida has been carried out under my guidance and

supervision.

I wish her a successful career in future

Mr. I. M Panda
Sr.Manager(Mktg)IA&CDY
Rourkela Steel Plant.
 CONTENTS
CHAPTER 1

Introduction to Online Marketing

CHAPTER 2

Brief write-up on SAIL

CHAPTER 3

Objective of the Study

ROURKELA STEEL PLANT (company profile)

CHAPTER 4

Marketing Department of RSP

CHAPTER 5

Questionnaire

Data analysis

Interpretation

CHAPTER 6

Findings

Recommendation

CHAPTER 7

Conclusion

Bibliography
CHAPTER 1
 INTRODUCTION TO ONLINE
MARKETING

INTRODUCTION
Online Marketing
Online- marketing, also referred to as i-marketing, web-marketing, Internet
marketing, Search Engine Marketing (SEM) or e-Marketing, is the marketing
of products or services over the Internet.

Since the Internet has now become a primary tool for the delivery of
information, businesses of all sizes are using online marketing to increase
awareness of their company's goods and services.

The Internet has brought media to a global audience. The interactive nature of
Internet marketing in terms of providing instant response and eliciting
responses is a unique quality of the medium. Internet marketing is sometimes
considered to have a broader scope because it not only refers to the Internet, e-
mail, and wireless media, but it includes management of digital customer data
and electronic customer relationship management (ECRM) systems.

Internet marketing ties together creative and technical aspects of the Internet,
including: design, development, advertising, and sales.

In its simplest form, the term online marketing refers to using the power of
Internet advertising to generate a response from your audience. Also known as
Internet marketing or web marketing, online marketing is used by companies
selling goods and services directly to consumers as well as those who operate
on a business-to-business model.

Online marketing, regardless of the exact method a company chooses to use,

offers several benefits. It's convenient, affordable, and provides the
opportunity for companies to track results as a campaign progresses. In
addition, Internet marketing allows even the smallest of companies to compete
in a global marketplace. Online marketing is often related to public relations,
customer service, sales, and information management.

Common areas of interest within the field of online marketing include:

  Affiliate Marketing: In affiliate marketing, a business recruits
associates to promote the company's products or services. The
associates receive a commission or other similar rewards for every sale,
visitor, subscriber, or customer they bring to the company.
Amazon.com Associates Central is an example of an affiliate marketing
program that Amazon.com uses to encourage private website owners to
bring traffic to its site.

 Display Advertising: Display advertising involves the use of web

banners or banner ads placed on a third-party website to drive traffic to
a company's own website and increase product awareness.

 Email Marketing: Companies that use email marketing send

promotional emails directly to customers. However, it can often be hard
to distinguish between spam and legitimate email marketing messages.

 Interactive Advertising: Interactive advertising involves the use of

animations and other graphic techniques to create ads that engage the
viewer and invite participation.

 Search Engine Marketing: Search Engine Optimization (SEO), paid

placement, and paid inclusion are search engine marketing techniques
that companies can use to increase their visibility in the search engine
page results from Google and its competitors.

 Viral Marketing: Viral marketing is a technique is which companies

encourage customers to pass along information about their products or
services. Company websites that let visitors email interactive games or
funny video clips to their friends are an example of a viral marketing
effort.

Advantage of Online Marketing

 i. Your store is open, 24 hrs a day, 7 days a week. Further, your
customers are worldwide in reach, and can shop anytime that they
want to.
ii. The cost of spreading your message is next to nothing. Emailing
your subscription base is more often cheaper than sending a letter
through the mail.
iii. Updating your subscribers can be done almost instantly through
email. Visitors to your website can get up to the minute information
on each visit. If you are having a sale, your customers can start
shopping at the discounted prices literally as soon as they open their
email.
iv. If you have an information sensitive business, such as a law firm,
newspaper or online magazine, you can deliver your products
directly to your customers without having to use a courier.

Disadvantages of Online Marketing

i. Online marketing is not free. The cost of software, hardware, wed

site design, maintenance of your site, online distribution costs and of
course, time, all must be factored into the cost of providing your
service or product.
ii. Easier to have outdated information on your site, thus timing of
updates is critical
iii. There is no replacement for good old fashioned customer service.
The majority of internet marketers lack customer service and inquiry
response programs. The majority of websites also have poor
navigation, which makes it difficult for your visitor to find what they
are looking for. Many sites were created with a marketing view, not
a customer service point of view.
CHAPTER 2
 BRIEF WRITE-UP ON SAIL
 MAJOR UNITS
 PRODUCTS PRODUCED
 CENTRAL MARKETING
ORG.(CMO)
STEEL AUTHORITY OF INDIA LIMITED

SAIL is India’s largest steel producing company. With a turnover of Rs.

48,681 crore, the company is among the top five highest profit earning
corporate of the country.

The year was 1973. The event – formation of India’s largest steel company
named steel Authority of India Limited (SAIL). A vibrant company, which
right from its inception, has dominated the Indian steel landscape. 

At present, the Government of India has 86% ownership of SAIL. The

company owns and operates nine manufacturing plants, including two
subsidiaries. The four main integrated steel plants of SAIL producing carbon
steel are located at Bhilai, Bokaro, Durgapur and Rourkela, while three plants
at Durgapur, Salem and Bhadravati manufacture a variety of special and alloy
steels. A subsidiary at Burnpur is a multi-product integrated plant; another at
Chandrapur is the country's largest bulk producer of ferro-alloys. SAIL has
the second largest mining operations in India. Its iron ore, coal, dolomite and
limestone mines provide a competitive edge in terms of captive raw material
availability

Today, SAIL is truly a market-driven company, making important structural

changes and continuous process improvements to meet the expectations of a
satisfied customer. It is now focusing on its business of carbon steel making,
exiting from areas outside its core competence. Moreover, the company is
moving towards becoming a leaner and flatter organization, highly responsive
to changing market dynamics. 

Technological improvements in the area of steel making and modernization of

the rolling mills have made the vast array of SAIL products a household name
in the country. SAIL is also a global player, with its products like Hot Rolled
Coils and Plates, being well accepted in the most sophisticated world markets.
SAIL has a well equipped Research and Development Center for Iron and
Steel (RDCIS) at Ranchi, which helps to produce quality steel and develop
new technologies for the steel industry. Besides, SAIL has its own in-house
Center for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organization at Ranchi. Our captive mines are
under the control of the Raw Materials Division in Calcutta. The Environment
Management Division and Growth Division of SAIL operate from their
headquarters in Calcutta. Almost all our plants and major units are ISO
Certified.

Major Units :

Integrated Steel Plants

 Bhilai Steel Plant (BSP) in Chhattisgarh

 Durgapur Steel Plant (DSP) in West Bengal


 Bokaro Steel Plant (BSL) in Jharkhand

 Rourkela Steel Plant (RSP) in Orissa

Special Steel Plants

 Alloy Steels Plants (ASP) in West Bengal

 Salem Steel Plant (SSP) in Tamil Nadu 

 Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Subsidiary

 Maharashtra Elektrosmelt Limited(MEL) in Maharashtra

 Indian Iron and Steel Company

(IISCO) in West Bengal
PRODUCT’S PRODUCED:
SAIL’s product range semi-finished and finished
material such as:
 Hot Rolled Sheets and  Rails, Wheels and Axles
Coils
 Cold Rolled Sheets and  Structurals, Bars and
Coils Rods
 Galvanized Sheets and  Pipes
Coils
 Plates  Billets/Blooms/Slabs
 Electrical Steel Sheets  Stainless/Alloy Steels
 Tin Plates  Pig Iron

Product Production:

To achieve international production standards and extend the range of

specialty steel products, SAIL has recently modernized its integrated steel
plants at Durgapur, Rourkela and Bokaro. Adoption of the latest steel refining
technology and the globally preferred process of Continuous Casting have
resulted in increased availability of superior quality steels from SAIL.
Increased automation and adherence to rigorous quality norms have enabled
SAIL to produce steel for sophisticated user segments and thus enlarge its
market base. To gain wider international acceptance of its products, SAIL has
introduced quality management systems and practices in its work functions.
All major production processes and services of SAIL are certified to ISO:
9000 standards.

Product Sale:

With the largest marketing network among Indian steel producers, SAIL has
the most penetrative market reach. Besides offering the facility of direct
dispatch of material from its plants to customers’ doorsteps, SAIL maintains
an extensive branch office and stockyard network at 44 locations and a
number of sales and customer contact offices spread all over the country.

Nodal stockyards with mechanized handling systems in select locations

provide SAIL with an edge over its competitors in making steel materials
readily available on just-in-time basis. Authorized dealers ensure supply of
SAIL steel in locations including those where stockyards do not exist.

Totally oriented towards customer care, SAIL has recently introduced new
processes like Key Account Management (KAM) in its marketing functions to
further strengthen customer relations and provide quality service. With long
and flat products being marketed by separate groups, customers now receive
focused attention and improved service. Every requirement of key customers
is fulfilled by specially formed groups comprising marketing and plant
personnel who have the responsibility of streamlining operations, from order
processing to fulfillment. This ensures that the customers receive their
supplies as per their requirements in time.

CENTRAL MARKETING ORGANIZATION

(CMO)
All SAIL ‘s products except alloy, special steels and stainless steels are
marketed directly by CMO through units in co-ordination with rail, roads and
shipping sector to ensure quality and promote dispatch of products. The main
functions of CMO are as follows.

Marketing of Steel products and fertilizers.

 Production planning and dispatch co-ordination with plants.

 Export of steel.
 Import of coal and other consumables.
 Market research.
  Information System.

CHAPTER 3
 OBJECTIVE OF THE STUDY
 RESEARCH METHODOLOGY OF THE STUDY
 ROURKELA STEEL PLANT(COMPANY PROFILE)
 PRODUCT MIX (RSP)
 PRODUCT & APPLICATION (of RSP)
 MAJOR UNITS OF RSP
 SPECIAL FEATURES OF RSP

OBJECTIVE OF THE STUDY

  To find the extent to which price affect the sales of secondary
products.
 To find the view of customers on selling methods of secondary
products adopted by RSP.
 To find customer satisfaction on marketing process at RSP.
 To find the effectiveness of e-marketing to the customer .
 To find the customers dealing with RSP.
 To find the procedure of e- marketing at RSP

SCOPE OF THE STUDY

The study was conducted over a period of one and half months
from
Mid April to May, 2010. The study includes the customers of secondary
product in INDIA.

RESEARCH METHODOLOGY OF THE STUDY

 Type of Research- Descriptive Research

 Data Source-
 Primary Data: Interview, Questionnaires.
 Secondary Data: Internet, previous and current records and
magazines published by RSP.
 Sampling technique- Convenience sampling
 Data collection Tools- Questionnaire method
 Area of study- SUNDERGARH district
 Population- Customers in INDIA
 Sample Size- 25 customers
 Data analysis and interpretations using percentage analysis

Company Profile
 ROURKELA STEEL PLANT (RSP)

Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector
in India, was set up with German collaboration with an installed capacity of 1
million tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes.

The plant was modernized in the mid-1990s with a number of new units
having state-of-the-art facilities. Most of the old units were also revamped for
effecting substantial improvement in the quality of products, reducing cost
and ensuring cleaner environment.

RSP was the first plant in India to incorporate LD technology of steel making.
It is also the first steel plant in SAIL and the only one presently where 100%
of slabs are produced through the cost-effective and quality-centric continuous
casting route.

RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9
million tonnes of crude steel and 1.67 million tonnes of saleable steel. It is
SAIL’s only plant that produce silicon steels for the power sector, high quality
pipes for the oil & gas sector and tin plates for the packaging industry. Its
wide and sophisticated product range includes various flat, tubular and coated
products.

Almost all major units of the plant, including its Personnel Department and
Steel Township, are certified to ISO: 9001 standards. RSP’s Silicon Steel
Mill, Sintering Plant II, Environment Engineering Department, Plate Mill, Hot
Strip Mill, ERW and SW Pipe Plants, Special Plate Plant as well as Steel
Township have been awarded ISO: 14001 certification for Environment
Management.
SPECIAL FEATURES OF RSP

1. 1st Public Sector integrated Steel plant to be set up in the country.

2. Exclusively producing flat products.

3. Finest Plant in India to adopt L.D. Process of Steel making.

4. It has got an electrical sheet mill capable of producing both Dynamo
and Transformer grade electrical sheet.

5. It has a special plate plant where special alloy Steel Plates are shaped to
different shapes as per requirement in the defense sector.

6. RSP has the distinction of being the unique Steel Plant in India with an
integrated Fertilizer Complex.

7. It has two captive power plants (CPP-I & CPP-II) with a generation
capacity of around 120 mw.
PRODUCT MIX TONNES/ANNUM

Plate Mill Plates 2,99,000

HR Plates 92,500
HR Coils 3,98,000
ERW Pipes 75,000
SW Pipes 55,000
CR Sheets & Coils 4,33,000
Galvanized Sheets (GP& GC) 1,60,000
Electrolytic Tin-Plates 85,000
Silicon Steel Sheets 73,500
Total Saleable Steel 16,71,000
Products and its Application
Products Applications
 LPG cylinders, automobile, railway wagon chasis and all types
HR Coils
of high strength needs.

Plates Pressure vessels, ship building and engineering structures

Chequered Flooring & staircases in the industrial installations, railway

Plates platforms, etc.
Steel furniture, white goods like refrigerators, washing
CR Sheets &
machines, automobile bodies, railway coach paneling, drums,
Coils
barrels, deep drawing and extra deep drawing, etc.
Galvanized Roofing, paneling, industrial sheeting, air conditioner ducting
Sheets and structural
Containers for packaging of various products including e
Major Units
Electrolytic Raw materials play the most vital role in RSP’s production
Tin Plates of 1.9 million tonnes (MT) of steel per annum. The annual
input requirement of the plant includes 2.3 MT of coking
coal, 1.5 MT of boiler coal, 1.8 MT of iron ore dible oils,
vegetables and confectionary items.
Silicon Steel Small generators, stators for high efficiency rotating equipment
sheets & Coils and relays, etc.
High pressure transportation of crude oil, natural gas and slurry
Spiral Weld
transportation, water supply, sewage disposals, grain silos, civil
pipes
engineering pilings, etc.

High pressure transportation of oil & water, sewage disposal,

ERW Pipes
tube wells, etc.

Major Units
Raw materials play the most vital role in RSP’s production of 1.9 million
tonnes (MT) of steel per annum. The annual input requirement of the plant
includes 2.3 MT of coking coal, 1.5 MT of boiler coal, 1.8 MT of iron ore
lumps, 1.5 MT of iron ore fines, 1.6 MT of fluxes and other materials like tin,
zinc, aluminium and Ferro-alloys.
 Ore Bedding and Blending Plant

RSP’s Ore Bedding & Blending Plant (OBBP) has a base mix
preparation system with on-ground bedding, blending and conveying
facilities. Set up under the earlier modernization programme to provide
pre-mix feedstock to Sinter Plant-I & -II, the plant has an annual
dispatch capacity of 500,000 tonnes of material.
The facilities in OBBP include major installations like wagon unloading
(tipplers & track hoppers), iron ore crushing and screening system, raw
material storage yard, rod mills and roll crushers for flux and coke
crushing, proportioning bins and elaborate conveying systems.
 Coke Oven

RSP has five 4.5-metre-tall coke oven batteries (COBs) that produce
coke as the input for blast furnaces. The coke ovens are equipped with
wagon tipplers, automatic handling and conveying facilities, coal
blending provisions, coke wharfage crushing together with screening
and conveying systems.

 Sintering Plant

RSP’S two sinter plants feed sinter to the blast furnaces with a
combined capacity of 3.07 MT per annum. Sinter Plant-II is operating
at more than its rated capacity since the year 2000. This has facilitated
the increased usage of sinter in blast furnace burden.

 Blast furnaces

The four blast furnaces of RSP, with a combined capacity of 2 MT,

produce hot molten metal for steel production.

 Steel Melting Shops

SMS-I
Apart from a computerized LD process which has enhanced shop
 capability, the LA Vacuum Metallurgy Technique has been also
adopted for secondary refining of steel. This facilitates production of
special steels for application in electrical machines, pipe making, tin
plate, boilers and auto chassis members. The shop was originally
designed to produce ingots for conversion to slabs through the Slabbing
Mill route. However, after the discontinuation of the ingot route, SMS-I
produces slabs through casting machines.
SMS-II
Provided with the latest steel making, secondary refining (ladle furnace
and argon rinsing) facilities and two single-strand slab casters to
produce 1,355,000 tonnes of steel slabs annually, the shop is equipped
with automation through three levels of computerized control, LD gas
cleaning and recovery, power distribution system, water and utility
services.

 Plate Mill

RSP’s 3.1 meter wide, 4 high reversing mills are equipped with online
thickness measurement facilities. Provision for inspection by
customer’s nominees, online ultrasonic testing and checking ensure
dispatch of higher quality plates to customers. The Plate Mill also has a
walking beam-type furnace with a capacity of 100 tones/hour for slab
heating. The mill has a production capacity of 299,000 tones per
annum.

 Hot Strip Mill

The facilities of the 1.44 MT per annum mill has:

• Two new walking beam type reheating furnace (225 TPH)

• Roughing/sizing stand RoVo with automation
• Automated coil box
• Quick roll change system in Roughing Stand-1 and finishing mills
• Coil marking, sampling and conveying systems.
 Cold Rolling Mill
Produces about 678,000 tonne of cold rolled sheets per annum, RSP’s
Cold Rolling Mill has a modern 5-stand tandem mill and a 4-high 1700-
mm reversing mill. The tandem mill is equipped with automatic gauge
control, x-ray gauge, data logging and thyristorisation.

 Electrolytic Tinning Line

The continuous electrolytic tinning line produces a shining tin-coated
surface in a variety of coating thicknesses. The tinplate shearing lines
are equipped with sensitive pinhole detectors and an automatic sorting
system.

 Galvanizing Lines
Two continuous hot-dip galvanizing lines are equipped with jet-coating
facilities. There are 2 multi-roller-corrugating machines as well which
produce corrugated sheets.

 Silicon Steel Mills

This unit produces steel for the electrical industry through various
operations carried out in sophisticated, continuous/semi-continuous
processing lines and a 4-high reduction mill. Advanced process control
and product testing facilities ensure product quality.

 Pipe Plants

A highly sophisticated Spiral Welded (SW) Pipe Plant is equipped with

submerged arc welding process and produces large diameter pipes.
Hydrostatic pressure testing, ultrasonic testing and eddy current testing
are some of the features which ensure quality control.
The Electric Resistance Weld (ERW) Pipe Plant caters to the smaller
diameter pipe consumers. This plant has been recently upgraded to
enable it to produce API grade pipes.

 Traffic & Raw Material

 The Traffic & Raw Material Department deals with procurement and
supply of raw materials to various user departments, internal movement
of in-process and other material from one unit to another and dispatch
of finished products in railway wagons to outside parties or SAIL
warehouses. The department maintains 350 wagons, 40 locomotives
and a network of 240 kms rail tracks across the plant.

 Computerization

Rourkela Steel Plant’s online Production Planning & Control (PPC)

system, developed and executed in-house, connects various functional
departments of RSP into a single network.

 Human Resource Development Centre (HRDC)

The Human Resources Development Centre (HRDC) of Rourkela Steel

Plant was set up in the late 1950s. It consists of a Management
Development Programme wing, auditoriums, well-equipped workshops,
skill upgradation shops, and lecture halls for apprentices and a well-
equipped library on a plethora of technical and managerial subjects. The
HRDC has received ISO 9001:2000 QMS certification.

 Central Power Training Institute (CPTI)

RSP’s Central Power Training Institute (CPTI) is a CEA-certified

category-1 institute that meets the statutory training needs of power
engineers of SAIL. Certified with ISO 9001:2000 QMS, CPTI conducts
training largely for operation and maintenance personnel of SAIL’s
captive power plants and Power Distribution Network departments.

SPECIAL FEATURES:

COMMUNITY
Caring, Sharing and Spreading Smiles

Rourkela Steel Plant has imbibed a credo to make

quality steel and spread lasting smiles amongst
the people living in its neighborhood. Going
beyond the realms of philanthropy or charity, RSP
has adopted a strategy of ushering in sustainable
development in its peripheral villages. The
objective of ‘spreading samriddhi’ finds its true
expression in the myriad activities taken up by the plant for the people living
in its periphery. From education to women's empowerment, providing
healthcare facilities to improving infrastructure, promoting advanced
techniques of agriculture to skill enhancement, land and water management to
livestock development – the multifaceted approach of RSP aims at touching
and shaping every aspect of life and living of its community neighbors.

Taking a unique step forward, the plant has set up the Institute for Periphery
Development that is functioning as the nerve centre of all the activities taken
up under periphery development. Villagers from nearby areas are being
trained in various income generation activities in this institute.

Adoption of 16 villages as Model Steel Villages is another significant stride

taken up by RSP to create sustainable models of economic development.

Partners in Progress

Rourkela Steel Plant has always considered the small scale industries (SSI)
operating in its neighborhood as its partners in progress. An exclusive wing –
Peripheral Industries and Vendor Development (PIVD) – has been set up in
RSP under its Materials Management Department for catering to the
development needs of local SSI units.

Scenic Steel Township

Rourkela’s Steel Township is a modern industrial habitation characterized by

extensive green coverage and aesthetic installations. Efforts to beautify the
township and upgrade its facilities never cease here. A number of artistically
crafted monuments not only add significant grace to the sylvan landscape of
the township but also showcase the innovative usage of steel for creating
objects of art. The Indira Gandhi Park in the heart of the steel city is another
effort made to highlight nature in all its glory and grandeur, and a musical
fountain enthralling visitors. A zoo in the park is the second biggest of its kind
in the state and is home for a diverse variety of animals and birds.

Creating a Healthy Environment

Rourkela Steel Plant’s concern for a healthy environment is symbolized by its

wide network of Medical & Health Services. Ispat General Hospital (IGH), a
685-bed hospital run by RSP for its employees is a premier medical centre in
the eastern region. In IGH the doctor-to-bed ratio is 1:4.8 and occupancy rate
is 87%. The hospital has several exclusive facilities like Burn Centre, Blood
Transfusion Centre, Intensive Care, Dialysis Unit, Nuclear Medicine, MRI
Scan, Cardiac Clinic, CT Scan, Thyroid Clinic, Bio-Medical Waste
Management System, etc. The hospital has a WHO-recognized Malaria
Research Centre. It also has the distinction of imparting postgraduate DNB
training in 11 disciplines.

Sports Hub

RSP strongly believes that one of the most fruitful investments that can be
made in the present generation is in the field of sports. The Biju Patnaik
Hockey Stadium in Rourkela is a full-fledged hockey stadium equipped with a
state-of-the-art synthetic turf. The Sports Department of Rourkela Steel Plant
has conducted several national, regional, steel plant, district and even school-
level tournaments to impart a fresh impetus to sporting activities, hone
budding talents and make Rourkela a sporting hub.

Environment Management
RSP has provided air pollution control equipment like ESPs, Bag Houses, Dry
Fog Dust Suppression systems & Wet Scrubbers in different units. RSP has
also provided dedicated Waste Water Treatment Units in different plant units
for treatment of wastewater. The treated wastewater is recycled back to the
process and blow down water is discharged only into drains for final treatment
at Lagoon before discharging into river. RSP has established a full-fledged
Environmental Engg. Department way back in 1989, along with Environment
Laboratory which is certified with IS/ISO14001. RSP has adopted 4R
(Reduce, Reuse, Recover & Recycle) strategy for enhancing the utilization of
wastes. With the dedicated efforts of RSP collective the pollutant levels have
shown drastic reduction.

CHAPTER 4
 MARKETING DEPARTMENT OF RSP
  SECONDARY STEEL STOCK YARD(SSSY)
 CENTRAL DISPOSAL YARD
 SECONDARY PRODUCTS
 MARKETING PROCESS AT RSP
 MARKETING PROCESS AT RSP
 ONLINE AUCTION OF MATERIALS
 Metaljunction.com & RSP
 OPEN SALE PROCESS

MARKETING DEPARTMENT OF RSP

The marketing department of RSP was earlier called as the Order Department.
It is only deal with the secondary product of RSP.

The Managing Director Mr. B.N Singh heads the marketing department of
RSP, General Manager Mr. A.P Mohanty and other executives are also in
charge of the department. During past few years the Marketing Department of
RSP had a huge work force of employees. But due to modernization and
introduction of the computer technology the work force have been reduce to
less number of employees.
After the implementation of “Single Window System” the work process is
minimized. This system is a new system and it has been introduced in 1st April
2004 and for last two years it has been running successfully. There are two
major departments under RSP as the Secondary Steel Stockyard and central
disposal yard.

MARKETING SECTIONS
Marketing section of RSP has four major sections they are as follows.
 Secondary Steel Stockyard
 Central Disposal Yard.

A) SECONDARY STEEL STOCK YARD (SSSY)

The secondary steel stockyard is the main stockyard of RSP where the
secondary products are kept for sale. It is constructed outside the grill gate
along the Bisra Road with an initial investment of about 1.5 crores in the year
1991-92 and it came into operation on 02/03/1992. Subsequently, the yard has
been expanded suiting to the requirement and necessity of RSP.

ALLOTMENT OF MATERIALS AT SSSY

Everyday SSSY sends the lists of plots/lots available for allotment .The
plots/lots are fed to the computer. All the items and valid sale orders of those
products are separately randomized through computer on that day and lists are
generated. Based on random list the senior plot/lot of the senior. Item is
allotted to the senior valid sale order. There are certain things, which are taken
into account. After all the customers have been considered the next round for
allotting materials is started.

The following aspects are checked through computer:

  The concerned sale order should be valid w.r.t to expiry date,
suspension of sale order, cancellation etc.
 The party should have submitted the revised price acceptance.
 The sale order should be sufficient (i.e. minimum 10 tonne) for
allotment of one wagon.
 A unique SSSY no. is assigned (5 digits) to the materials on entry to the
stockyard.
 The materials coming through truck (10 tonnes) are allotted lot nos. that
is of 4 digits.
 The materials coming through wagons are more in quantity and are
allotted plot nos. that are of three digits.
 For entry of trucks into the stockyard identification of the driver, helper
& R.C no. of the vehicle is required.
 A private contractor is appointed for loading and unloading the material
at SSSY.
 After the payments have been made the release order is issued, which is
a financial document of sale. This contains party name, award price,
details, and last date of lifting.
 Materials going out of SSSY, an invoice will be made-then dispatch
advice will be given on which one can take out the material.
 On the last day lifting the material DCR (delivery completion report) is
issued for each lot, which comes to the finance department.
 This DCR is required for refunding EMD money to the customer.

B) CENTRAL DISPOSAL YARD

Central disposal yard indicates the area where the materials of different shape
and size declared as scrap of unserviceable or absolute are stored. The
materials are collected from different units of plants as per Executive Director
(Works) procedure order; these are collected daily basis and recorded in a
registered called “DAY BOOK”. The scope of this procedure order is
restricted to all arising of RSP except for those which are sold by marketing
department to ancillary industries and unused arising of RSP’s own products.
These materials are collected & complete lots are formed. These
lots are offered to disposal. The pricing committee of RSP fixes
the prices for lots. These items are spare parts, surplus and
obsolete items. There are thousands of these types of products in
two different ways (a) store in open air (b) store in close air,
looking at the behavior of the items.

SECONDARY PRODUCTS

IRON STEEL SCARPS:

CR Steel Items Def. HR Coils

HR Steel Items Def. CR Coils
Scarp of pipes Def. GP Sheets
Semi Rolled Plates Def. Plates/HR Plates
Short plates Def. CRNO Sheets
Coil End cutting Def. chequered Plates
Pig Iron

SPECIAL PLATES:
 Misc Iron and Steel Items BF Granulated Slag

COAL CHEMICALS:

HP Naphthalene LCO GR-II

Anthracene Oil Carsolic Oil

FERTILIZER:

AMM. Sulphate

WASTE PRODUCTS:

Ferrous Sulphate Cal. Dolofine

U/R FCLY Bricks Cal. Lime-10mm
Mag Carbon Bricks LD Slag

Marketing Process at RSP

Process Followed:
 ONLINE AUCTIONING PROCESS
 FORWARD AUCTIONING
 REVERSE AUCTIONING
 OPEN SALE PROCESS

ONLINE AUCTIONING :

Online auctioning is the process whereby users log onto a website and bid for
items or services posted on this website by other users. The way online
auctioning works is similar to normal auctioning outside the cyber world, but
has allowed the auction to reach a much greater audience.

Like the traditional auctions, there is an auctioneer (the hosting website) that
receives a cut of the sale, there is a minimum bid that bidders must reach to
buy the product, there are people who fraudulently cheat the system, and each
day sales are made all over the world.

The process of both online auctioning and traditional auctioning, however, is

fundamentally different. For both the first step of the process is usually for the
seller to identify a product or service they want to sell, and then to find a
company to host the auction and act as the auctioneer.

This is where the process splits. The person opting to use a company based on
the web as the selling tool must log on, post a picture and description of the
item, and then conducts all transactions online or by phone. Although most
sites do provide a general tutorial helping new users set up an auction, most
likely these users will not receive any direct help from the auctioneer.

FORWARD AUCTIONING

Forward auction are electronic auctions, which can be used by sellers to sell
their items to many potential buyers. Sellers and buyers can be individuals,
organizations etc.

Two types of forward auctions are common:

a)Liquidate auction- Here buyers seek to obtain the lowest price for an item
they are interested in.

b) Marketing efficiency auction.-Here buyers wish to obtain a unique item.

Its offer effective mechanisms for offloading excess stock or capacity.

Bidders in these auctions can source non-critical goods cheaply.
ADVANTAGES:

1. For the auction holders:

Many types of business supply goods through online auctions. Retailers,

distributors, manufacturers and liquidators all benefit in different ways.

Forward auctions can help them to:

 acquire new customers and extend geographic reach

 test new products and establish price points
 dispose of excess inventory quickly
 price according to demand and stock levels
 reduce sales costs by minimizing marketing spend.

2. For bidders:

Buying through forward auctions reduces procurement costs.

Businesses can use them to:

 source non-critical supplies, like stationery and office furniture

 acquire specialist, second-hand equipment inexpensively
 reduce the time spent on procurement by setting up automated searches
and bid alerts

REVERSE AUCTIONING

A reverse auction is a type of auction in which the roles of buyers and sellers
are reversed. In an ordinary auction (also known as a forward auction), buyers
compete to obtain a good or service, and the price typically increases over
time. In a reverse auction, sellers compete to obtain business, and prices
typically decrease over time.
Reverse Auctioning refers to when a buyer submits a request for a product or
service and sellers submit bids. The buyer then chooses the cheapest or best
quality product out of the bids made from the sellers.

It generally results in quicker and cheaper procurement. Well-managed

auctions significantly reduce the time between the issuing and awarding of
contracts.

ADVANTAGES:

1. For the auction holder

The mechanism favors buying power - the bigger the business, the better the
saving.

 The auction mechanism replaces time-intensive negotiations with

suppliers.
 Procurement departments save time sourcing and negotiating with
suppliers.
 Materials can be sourced from a larger pool of suppliers.
 Cost reductions can be significant: 10%+ cost savings are frequently
reported.

2. For suppliers

Reverse auctions aren't just a popular cost-cutting option for large businesses.

 They are popular with major customers who have large budgets.
 Competing on price isn't the only way to win business - factors like
service, quality and reliability can count in your favor.
 You gain access to customers who are ready to buy quickly, without
having to launch a sales campaign.
 Bidding aggressively can be a quick way to offload stock or build
market share.
 Even unsuccessful bidders gain valuable market information.
Benefits of online auctions:

An online auction is a dynamic pricing environment. There are advantages for

purchasers and suppliers:

 The process is open and builds mutual trust.

 As it is a transparent process, under/over pricing is less likely.
 Buyers and sellers have access to global markets, irrespective of their
location.
 Participants have to specify their requirements very precisely.
 Enables sellers to promote their goods to an extremely large and diverse
range of customers.
 Easier to find information and records containing details of the previous
history of the seller.

ONLINE AUCTIONING AT RSP

This Online Forward Auction is being conducted for Rourkela Steel plant,
Steel Authority of India on the Auction Platform of mjunction services ltd.
The materials after getting their respective plot and lot numbers are placed for
the auction. It includes the secondary and scrap products. For scrap items they
are invited open tenders from the venders and for the secondary products they
are taking the help of the Metaljunction.com, which is doing auction through,
online.
Before this online auction process they used to followed the “Order Booking
System”, in this process 50% of the secondary product material is placed for
auction to small scale Industries (SSI) of ORISSA, while the remaining 25%
for open sale and 25% for registered traders. In this system the venders were
not in a position to accept the material at any cost and RSP was forced to sale
the less defective secondary product at a cheaper rate. Due to limited capacity
of stock RSP sale the chemicals at a very cheap rate to the local venders. RSP
still follow the open sale auction in some cases, if secondary items are fails to
make raise any demand then those material are sale through open auctions.
AUCTION OF THE MATERIALS

The materials after getting their respective plot and lot numbers are placed for
the auction. It includes the secondary and scrap products. For scrap items they
are invited open tenders from the venders and for the secondary products they
are taking the help of the Metaljunction.com, which is doing auction through,
online.

METAL JUNCTION SERVICES LIMITED

Metaljunction.com private Ltd (MJ) is a 50:50 joint venture of TATA Steel

and SAIL. Founded in February 2001, it is today India’s largest e-commerce
company (with e-transactions worth Rs 9,131 crore) and runs the world’s
largest e-market place for steel. The steel supply chain in India has been
transformed by the company, which has improved the efficiency, transparency
and convenience with the way in which steel, especially secondary steel, is
bought and sold.
Over 3,500 buyers and scores of public sector and private
sector companies today buy and sell products using the convenience,
transparency and efficiency offered by metaljunction. In September 2005,
metaljunction was awarded ISO 9001:2000 certification by Det Norske
Veritas, Netherlands. The certification covers the quality management system
standards of the company for e-sales, e-sourcing, channel financial services
and software solution services.

 Provides e-selling services for the following materials:

◙ Steel
◙ Ferro alloys, minerals and metallics.
◙ Non-ferrous metals
◙ Obsolete capital goods(idle assets)
  Also provides e-selling services on a BPO mode.
 Has sold 3 million tones for its clients, since inception up to September
30, 2005.
 Provides finance to distribution channels/direct ends users in
association with leading banks. Has arranged finance of Rs 28.7 billion
till September 30, 2005.

METAL JUNCTION AND RSP

Now RSP is doing their secondary stock marketing online through
Metaljunction.com. Though Rourkela Steel Plant does not have the system of
online auction facility they are going through this process.
ROLE OF SERVICE PROVIDER

1. “Service Provider’ is the agency (operator) primarily providing the service

of the Forward auction to the “client”.
2. Finalization of the auction items in consultation with the client.
3. Defining of bidding rules for each auction in consultation with the client.
a) Enhancing bidder awareness of and comfort with the auction
mechanism and bidding rules.
b) Input of the Auction items and defining the bidding rule in the auction
engine.
c) Enlarging the customer base by introducing new bidders.
d) Collection of EMD, Letter of Interest etc. from the willing bidders and
forwarding the same to the Client.
e) Providing access to the approved bidders to participate in the Auction.
f) Summarizing the Auction proceedings and communicate the outcome
to the Client.

ROLE OF BIDDER

1. The bidder would participate in the auction with the aim of bidding to
secure the auctioned item in the auction

2. The bidder would be provided access to the Auction through a “User ID”
protected by a “Password”.
The bidder needs to ensure that the “User ID” and “Password” is not revealed
to unauthorized persons.
Bidders are also requested to change the password allocated to them by the
“Service Provider” to keep their confidentiality.
Access to the auction mechanism shall be provided to all the approved bidders
subsequent to obtaining their written consent to the General Rules &
Regulations and the Letter of Interest.
Payment of Earnest Money Deposit (EMD) as decided by the client before the
start of the Forward auction will be one of the necessary conditions for
participating in the auction.

3. Bidders hereby confirm that they shall commit to lift the item (being bid
for) at the price entered by them in the auction engine AND at the terms and
conditions specified herein by the Client.
All Prices entered shall be legally binding on the bidders.
4. In the event of winning an allotment in the auction mechanism, the bidder
shall commit to fulfill outlined obligations under the contract.
5. The bidders shall bid on the terms specified by the client & place their bid
in the auction engine in the manner specified by “Service Provider”.

Timings of the Online Bid.

All the timings of the Online Bid shall be based on the time indicated by the
Server hosting the Auction Engine. It shall be the endeavor of "Service
Provider" to ensure that the Server Time reflects as closely as possible the
Indian Standard Time (IST) i.e.GMT + 0530 hrs. However, in the event of any
deviations between the Server Time and the Indian Standard Time, the
functioning of the Auction Engine (launch, operation, and closure) would be
guided by the Server Time. Bidders are advised to refresh both the windows
of the Auction Module check the exact Server Time (displayed in both the
windows).

Duration of the Auction.

It refers to the length of time the price discovery process is allowed to
continue by accepting bids from competing bidders. The duration of the
auction would normally be for a pre-specified period of time. However, the
bidding rules may state the conditions when the pre-specified duration may be
curtailed/ extended. The conditions include:

 Curtailment of auction duration in the event of no bids for a specified

period of time (Inactivity Time)
 Automatic extension in the event of bids being entered towards the end
of the scheduled duration to facilitate the other bidders to view and
react to the bid.
Terms and Conditions for Online Auction:

a) In online auction every one can take participate in India, so there is a

big chance of false registration, for that there are some conditions.

b) Before take participate in the auction the vender should deposit Rs 1,

00,000 as security deposit that is called earnest money deposit (EMD)
in the form of Demand draft (D.D.)/ Pay order (P.O.)/ Banker’s Cheque
( B.C.) drawn on any schedule bank, in favor of Steel Authority of India
Ltd., Rourkela Steel Plant.

c) The Service provider will provide a “user ID” and a “Password” to each
individual customer, who will submit required EMD and the documents
stated above, to enable them to participate in the dynamic auctioning
process of the items / lots of their choice to be conducted in the
Website.

d) Bidders shall bid for the TOTAL LOT VALUE basis

e) All quotations submitted by the Supplier/his authorized

agent/representative by logging on to the above web site for Enterprise
Procurement System using the User Identification provided by the
Service Provider and password by which the person logging into the
Enterprise Procurement System is authenticated and filling up the
 structured on-line forms available against each Invitation to Tender,
shall be considered as legal and binding documents having in all
opinions the same legal validity as a physically signed quotation by the
Tenderer/His authorized agent/representative.

f) In the event of the Tenderer having submitted more than one quotation
against an Invitation to Tender, only the latest quotation submitted by
him shall be considered as the valid quotation for consideration of
opening of the quotation and issuance of Acceptance of Tender by the
company. All earlier quotations submitted in the Enterprise
Procurement System shall be deemed to be superseded and invalid and
will remain un-opened in the System and also not available for viewing
the details by the Tenderer or the company or the Service Provider once
the valid quotations against the said Invitation to Tender are opened on
the scheduled date and time by the company’s authorized
representative.

g) Final Bids given by the successful bidders in the Online Auction

process shall be kept valid for 60 Days from the date of auction for the
acceptance by the Management.

h) Management reserves the right to accept or reject any or all the bids or
to apportion the materials in any manner deemed fit and this decision
shall be final.

i) For any disputes arising during the course of submission of the

quotations online or for any matters subsequent to acceptance of such
on-line quotations, the method of settlement shall be through the
process of Arbitration by a Sole Arbitrator appointed by the MD/Chief
Executive of Steel Authority of India Limited, Rourkela Steel Plant.

j) In case where the bids given by the customers in Online auction process
are not acceptable, the EMD for the one time participants shall be
 refunded within 10 (Ten) days. EMD of the permanent Customers shall
be retained by RSP for their participation in future Auctions

k) Letter of Acceptance / Sale Order (S.O.) will be issued to the successful

bidders whose bids are acceptable to the Management.

l) In case any customer backs out for one or more number of lots after
issue of sale order, EMD deposited by the party will be forfeited and
the party will be banned for a period of 3 months from participation in
FA.

m) PAYMENT PROCEDURE
After receive the sale order, which contains the detail information about
the materials, vender name, and dispatch date, payment conditions. The
venders get some stipulated period for lifting the materials as followed.
 10 Days for lifting - No penalty
 Next 7 days with - 1% penalty
 Another 7 days with - 3% penalty

n) CONDITIONS UNDER REFUND OF MONEY

The EMD has to pay by the customer to take part in the auction. Those
who do not get any allotment for the material their EMD has refunded
by RSP, but for those who got allotted of material but failed to make
payment for them some penalties are there. The penalty will be charged
to the total amount of material left in the stockyard. If the party fails to
make payment in respect to the total amount of material, then the party
will be banned for a period of 3 months to take any part in the online
auction plus from the financial aspects 5% will be charged on the total
lot value subject to Rs 1, 00,000 and the rest amount will be refunded to
the vender after deduct the 5% penalty.

ADVANTAGES OF THIS SYSTEM

  More customers are created through this online auction. Since they can
participate any where across India.
 Through this online auction Rourkela Steel Plant getting good price for
their secondary products and it helps to create a good and healthy
competition.
 Better consumer satisfaction because all the activities done under one
roof that is called “Single Window System”.
 Through this they are able to generate very high revenue.
 This process is very useful as compared to order booking system.

EXAMPLE OF AN ON-LINE AUCTION

Synopsis of Catalogue::
FA Number FA /08-09/ 005

FA Date 24.04.2008

Item Description Spares from CDY

Quantity & No. of Lots 13 Lots

EMD Amount & Last 1.Rs 5000/- for Group A

date of Submission 2.Rs 50000/- for Group B
Last date of submission of EMD is 23.04.08
Security Deposit EMD will be retained as SD in case of installment payment & will be
adjusted in the last installment

Payment in For DSO values;

Installment(s) -up to Rs1.00 lakh up to 10.00 lakh, single Installment.
-more than Rs 10,000/- installment in multiples of RS 10.00 Lakhs
Payment For DSO values;
Date/Schedule -up to Rs 1.00 lakhs- 7 days from DSO,
-up to Rs 10.00 lakhs- 14 days from DSO
-MORE THAN 10.00 lakhs:
1st installment 10.00 lakhs- 14 days
Thereafter equal installments of 10 lakhs every 10 days
 Delivery Time 20 days from release order date

Penalty for late 1% per week or part thereof

payment

Penalty For Delay in 1% per week or part thereof

Lifting

Inspection Time 9AM - 5 PM in all working days

Special remarks All customers may kindly furnish their TIN/SRIN no before making payment or
lifting/dispatches for incorporation of TIN/SRIN in the VAT invoices so that they
may avail input Tax credit wherever applicable

Sale is governed by SAIL-FA-1.

For further details please log on to: www.metaljunction.com
Visit us at www.sailtenders.co.in
For further details, please go through the terms & condition.
OPEN SALE PROCESS

It refers to all the parties throughout the India, so that all the venders who are interested in
auction can participate. The tender notice issued through leading newspapers, chambers of
commerce etc. Those customers who bids in auction sale, they have to deposit Rs 50,000 as
security before 7 days of the auction sale.

Price is fixed by a Price Fixation Committee.

Price is fixed depending on the market demand and supply curve.

RSP still follow the open sale auction in some cases, If secondary items are fails to make raise
any demand then those material nare sale through open auction.
CHAPTER 5
 QUESTIONARE
 DATA ANALYSIS
 INTERPETATION
CHAPTER 6
 FINDINGS
 RECOMMENDATION

SUMMARY OF FINDINGS
1. Most of the customers belong to the category of manufacturers i.e. they
are using secondary and by-products of RSP as a raw material.

2. Majority of customers prefer to purchase secondary and by-products

from Rourkela steel Plant because of local market and quality but they
find price is higher compared to the quality.

3. Majority of the customers are satisfied with the quality of the secondary
and by-products of RSP and that is a big advantage for RSP.

4. Low price, better service and high quality are the major concerns that the
customers looks into for preferring a particular steel plant for secondary
and by-products.

5. Majority of customers responded that other steel plants are providing

secondary and by-products at a lower rate.

6. Most of the Customers responded that they find difficulties while dealing
with RSP.

7. E-auction is the most reliable selling method and majority of customers

are happy with it. The other methods of selling adopted by RSP like
tender, fixed price are same as the other steel plant and customers are
satisfied with those selling methods.

8. Most of the customers don’t register complain about the problem they
faced during purchase but majority of customers who registered their
 complain get solution for that. So, RSP has to increase the confidence of
customers on them.

9. Roadways are the most common mode of transportation used by

customers because all belongs to local market. Some of the customers are
using Railways for the transportation because by-products are mainly
transported through railways.

10.Most of the customers are not happy with the volume limit that they
receive from RSP.

11.Most of the customers responded that they are satisfied with the
information provided by RSP about the bids to be taken place but few
customers are also not happy with the information provided by RSP.

12.Majority of the customers responded that they are happy with the order
handling procedures of RSP.

13.Majority of the customers responded that that they are satisfied with the
overall experience while dealing with Rourkela Steel Plant.

RECOMMENDATION:
 Some of the suggestions are given below:
 The marketing strategy of RSP should be customer oriented. So it has to be
improved more.
 Proper measures should be taken to identify and avoid fake bidders in the
process of Auction.
 RSP should develop its sales promotion strategy to attract more customers.
 RSP should concentrate on minimization of the inventories and need proper
planning and scheduling.
 Continuous efforts should be made to develop the marketing system and
policies in order to satisfy the customers and maintaining their reliability.
 RSP should develop its production units so that it will help to reduce
productions of secondary products and produce more primary products
CHAPTER 7
 CONCLUSION
 BIBLIOGRAPHY
CONCLUSION:

RSP has taken lots of steps in marketing quality steel. New players have entered
into the steel market. Each player would like to gain in terms of market share. As a
forward step, lots of innovations of products have been made to occupy an
important market share. RSP gives priorities to various customers problem, its
pricing and distribution policy. RSP’S now emphasis is making oriented strategies.

The marketing division of RSP is doing lot of credit worthy job in handling various
customers oriented and market oriented problems. They have acquired a lot of
talents and those are able to deal with various customers diplomatically. The
various works are systematically executed and also documented by the marketing
division. Greater market orientation has percolated across the organization. The
marketing set up itself has undergone change with re-organization along product
lines, bifurcation of sales and warehousing functions, use of dealer channel and
improving its effectiveness.

Many new technologies have been introduced like- online auctioning,

through which it can market its products throughout the country through Internet
marketing.
BIBLIOGRAPHY

 www.sail.co.in

 www.metaljunction.com

 SAIL News.

 Office documents.