EXECUTIVE SUMMARY

Through this project we came to know about the sales & competitor analysis & consumer
behavior towards Bhushan Steel Ltd. This report looks into a steel industry, well famous for its
steel products. Bhushan Steel Ltd. is one of the names in steel industry which has high reputation
and brand value in the market.

So far research is concerned and survey is done on 100 Respondents. The survey was done to
create data base for the company and also do the analysis of the project report. The result which
we found out through surveys helped the company to redesign some of its policies.

The objective of the product is to do competitor analysis in comparison to the brand preferred in
the market in terms of product range, pricing, availability, supply, quality and after sales services
and also to understand the Marketing mix and sales analysis of the flat Steel products.

Bhushan Steel Ltd. serves the interest of their consumers and also it a competitive organization.

The major finding indicates that Bhushan Steel Ltd. should take some more initiative to expand
their business overseas and adopt more advertising principles to popularize their products.

1
 TABLE OF CONTENTS

S.No. Topic Page no.

CERTIFICATE i
PREFACE ii
ACKNOWLEDGEMENTS iii
EXECUTIVE SUMMARY iv
1. OVERVIEW OF INDIAN & WORLD STEEL INDUSTRY 1-4
2. ABOUT THE COMPANY 5-19
3. 5P’s of Marketing- 20-34

3.1 Product 20-27

3.2 Price 28-29

3.3 Place 29-33

3.4 Promotion 34

3.5 Packaging 34
4. APPLICATIONS 35-36
5. RESEARCH METHODOLOGY 37-41

5.1 RESEARCH OBJECTIVE 38

5.2 SAMPLE & RESEARCH DESIGN 39-40
5.3 DATA COLLECTION 39
6. DATA ANALYSIS 42-58
7. FINDINGS 59
8. SUGGESTIONS 60
9. LIMITATIONS 61
10. BIBLIOGRAPHY 62
11. ANNEXURE 63-64

2
 OBJECTIVES OF THE STUDY

 To understand the Marketing mix of Bhushan Steel Ltd.

 Sales analysis of the flat Steel products of Bhushan Steel Ltd.

 To do competitor analysis in comparison to the brand preferred in the market

in terms of product range, pricing, availability, supply, quality and after sales
services.

 To know about Dealers Perception for flat steel products of Bhushan Steel
Ltd.

Chapter I

INTRODUCTION

Steel is essential to the modern world, and its use is critical in enabling man to move towards a
sustainable future. Whether in lighter, more efficient vehicles or renewable energy generation,
steel is a fundamental part of a greener world. SAIL and Tata Steel have been the major steel
industries of India. Since 1990, a huge investment has been made into the industry.
Indian Steel Industry also went through a rough phase but improved after 2002. India has now
emerged as one of the largest producers of steel in the entire world. Almost all varieties of steel
are now being produced in the country. India has also emerged as a net exporter of steel and
Indian steel is being increasingly accepted in the global market.
3
 World Steel in Figures 2014:-

The World Steel Association (world steel) has published the 2014 edition of World Steel in
Figures.

COUNTRY PRODUCTION (MT)

CHINA 739

JAPAN 110.2

UNITED STATES 92.6

INDIA 82.3

RUSSIA 73.8

Industry trends:

Indian and Global perspectives, recent happenings.

Steel is the back bone of human civilization, it is very crucial in development of a modern
economy. The per capita consumption of steel shows the living standard of people in any
country.
Global Perspective: The industry directly employs about more than two million people
worldwide, with a further two million contractors and four million people in the supporting
industries. Considering steel’s position as the key product supplier to industries such as
automotive, construction, transport, power and machine goods, and using a multiplier of 25:1,
the steel industry is at the source of employment for more than 50 million people.
World crude steel production has increased from 851 mega tonnes (Mt) in 2001 to 1,527 Mt in
2011. (It was 28.3 Mt in 1900).World average steel use per capita has steadily increased from
4
150 kg in 2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have all entered the top
10 steel producers list in the last 40 years.

Indian Perspective:
At the time of independence, India had a small Iron and Steel industry with production of about a
Million tonnes (mt). In due course, the government was mainly focusing on developing basic
steel industry, where crude steel constituted a major part of the total steel production. Many
public sector units were established and thus public sector had a dominant share in the steel
production till early 1990s. Mostly private players were in downstream production, which was
mainly producing finished steel using crude steel products. Capacity ceiling measures were
introduced. Basically, the steel industry was developing under the controlled regime, which
established public sector steel companies in various segments. Till the early 1990s, when
economic liberalization reforms were introduced, the steel industry continued to be under the
control of Indian regulation were constituted such as large plant capacities were reserved only for
public sector under capacity control measures; price regulation; for additional capacity creation

Producers had to take license from the government; foreign investment was restricted; and there
were restrictions on imports as well as exports. But after liberalization many reforms and
regulation were changed which brought the new era for development in steel industry.

Some of the major developments were:

1. Large plant capacities that were reserved for public sector were removed;
2. Export restrictions were eliminated;
3. Import tariffs were reduced from 100 percent to 5 percent;
4. Decontrol of domestic steel prices;
5. Foreign investments was encouraged, and the steel industry was part of the high priority
industry for foreign investments implying automatic foreign equity participation up to 100
percent; and
6. System of freight ceiling was introduced in place of freight equalization scheme. Due to this,
the domestic steel industry has since then, become market oriented and integrated with the global
steel industry. This has helped private players to expand their operations and bring in new cost

5
effective technologies to improve competitiveness not only in the domestic but also in the global
market.

The Indian steel industry comprises of the producers of finished steel, semi-finished steel,
stainless steel and pig iron. Indian steel industry, having participation from both public sector
and private sector enterprises, is one of the fastest growing markets for steel and is also
increasingly looking towards exports as driving the growth of the industry.

Indian steel Industry Structure:

Indian iron and steel industry can be divided into two main sectors: Public sector and Private
sector. Further on routes of production it can be classified as: Integrated producer which convert
iron ore into steel e.g. SAIL, TISCO, etc and Secondary producer which make steel from sponge
iron or scrap e.g. ISPAT Industries, Essar.

6
ABOUT THE COMPANY

Bhushan Steel Ltd formerly known as Bhushan Steel & Strips Ltd. is a part of the Bhushan
Group and is one of the leading prominent players in Steel Industry.

 India’s 3rd largest Secondary Steel Producer with 2 million tons per annum (approx.),
production capacity.
 Bhushan Steel was the brain child of Mr. B. B. Singhal, and it first marked its presence
in Sahibabad (Uttar Pradesh) in 1987.
 The company has three manufacturing units in the state of Uttar Pradesh (Sahibabad
Unit), Maharashtra (Khopoli unit), and Orissa Plant (Meramandali unit) in India and
sales network is spread across the Globe.

POLICIES

Integrated Quality Policy.

Environment, Occupational Health Policy.

Safety Management System Policy.

MISSION

“Our mission is to grow our company by providing innovative strong and high
performance products and solutions to meet our global customer needs.”
, Is the motto of Bhushan Steel.

Bhushan Steel Ltd. commits to produce cold rolled and galvanized Steel sheets of world class
quality in a safe, healthy and clean environment by involving employees with continual
improvements in system implementation, technological advancement, operational integration,
Prevention of pollution & hazards maintaining

7
VISION

“The vision of evolving into a totally Integrated Steel Producer by committing to

achieve the highest standards of Quality through Cutting-Edge Technology and
ensuring minimum wastage.”

BSL’s vision of total integration is a lot closer to realization today. Through seamless backward
integration, BSL is consolidating its position on the entire Steel value chain from iron ore to
specialized is surging ahead
BUSINESS OVERVIEW OF Bhushan Steel Ltd

  Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Sales 9,940.96 7,000.46 5,640.35 4,957.56 4,203.95

Operating profit 3,003.70 2,037.17 1,452.74 1,033.44 832.60

Interest 1,046.07 414.04 210.01 252.96 136.85

Gross profit 1,985.87 1,688.21 1,360.51 798.40 749.20

EPS (Rs) 48.24 48.65 39.83 19.44 19.36

ADMINISTRATION SET UP OF BHUSHAN STEEL LTD :-

8
 CHAIRMAN
Mr. B.B. Singhal

MANAGING DIRECTOR
Mr. Neeraj Singhal

ANGUL SAHIBABAD KHAPOLI

PLANT HEAD PLANT HEAD PLANT HEAD

FINANCE HUMAN MARKETING TECHNICAL ACCOUNTS

DEPARTMENT RESOURCE DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT

9
 MARKETING
DIVISION

OEM DOMESTIC EXPORT

TRADING

VICE

PRESIDENT

(Mr. D.K.
SHARMA )

D.G.M.

(Mr. Neeraj Agarwal)

10
 INTEGRATING VALUE

Bhushan Steel's Cold Rolled Steel activity produces and markets an extensive range of value
added Products such as CRCA (cold rolled closed annealed), Galume, Color coated sheets, High
tensile Steel straps, Hardened and tempered Steel, drawn tubes etc. CRCA, produced at
Sahibabad facility caters to customers like Maruti and other OEMs. Its galvanizing plants are
located strategically close to the ports of Mumbai, helping it to cater to the global demand at
competitive prices.

After having grown to a size of approximately 1 MTPA in cold rolled and coated products, the
company has embarked on its Orissa project to integrate backward into the production of HR
Coil and billets, so as to meet current and future internal requirements. Also, it plans to develop
various EDD (extra deep drawing) grades used in the automobile's critical applications like outer
body panels of cars (these are currently imported). With a strong presence in Indian Steel market,
Bhushan Steel Limited offers effective Steel solutions to the automotive, construction and
household appliance industries.

A combination of technical expertise and sales service fosters a close relationship between
Bhushan Steel and its customers. Clinching on its quest for excellence, the Group meets the
automotive and white goods industry expectations with new products that are distinctive and
ahead of the competition.

12
 TECHNOLOGY

Bhushan Steel unwavering focus on acquiring and leveraging the best available technology has
engendered a period of unprecedented growth and progress. The state of art Khopali Plant has
fully commenced and is playing pivotal role in the tremendous growth of exports as well as in
the production of a much larger variety of value added Steel like coloured coated sheet. High
tensile Steel strapping, hardened & tampered strips, spring Steel, precision tubes and the soon to
be manufactured for the first time in India Galume Value Added Steel.

The Sahibabad plant is operating at full capacity and giving a substantial volume thrust to the
organisation. The Khopoli plant which operates with the very latest technology becomes fully
operational has the production capacity of 450000 MT per annum of cold rolled Steel which
includes 250000 MT of galvanised Steel. Bhushan Steel is now India’s third largest secondary
Steel producer after SAIL and TISCO. BSSL had the distinction of being the only producer of
widest width of CR sheet.

The biggest landmark on its growth path is of course the Orissa plant. This integrated Steel and
power plant will put BSSL firmly in the path of progress transforming BSSL into a completely
self-reliant organisation.

BHUSHAN has set up the technology of manufacturing a very new coated product called
BHUSHAN GALUME being the brand name. This alloy coating consists of 55% Aluminum and
43% Zinc and the balance contains Silicon around 1.5% to affect excellent adhesion to the Steel
substrate.

TECHNOLOGICAL BACKUP

The coater technology is the latest from GFG, USA and thermo Radiometric – Germany and
special high jet cooling tower from UK. We have tie up with M/s Henkel Chembond Surface
Technologies Ltd for the supply of chromating chemicals and acrylic coating and 0n line
continuous monitoring for the coating control and salt spray analysis in addition to our on line
monitoring by quality control dept.

RESEARCH & DEVELOPMENT

13
Company R&D activities consists of carrying on normal qualities testing of its raw materials ,
work in progress and finished goods . It does not involve development of new products.
We have full-fledged laboratory with test equipments- Emission spectroscope for the chemical
analysis, computerized Universal testing machine with stress-strain graph for tension tests,
surface finish tester, Hardness testers using both Vickers and Rockwell scales, LFQ testing
machine, Cupping tester, on line Radiometric and off line chemical lab for coating mass, salt
spray tester for corrosion resistance, and Humidity chamber.
The company has a latest state of the art R&D Center and has many first to its credit including
development of panel grade material for Refrigerator, Visi Coolers & chest Coolers of Coca-
Cola & Pepsi, ultra-thin CR Steel for Picture tube & battery application etc.

 For continuous marketing of our product quality , we keep carrying out testing from
outside laborites.
 This has resulted in continuous upgrading of the process parameters conforming to any
international standards. Further we have online backup SGS inspection for all test
parameters upto the point of dispatch.

NEW PRODUCT DEVELOPMENT

Bhushan Steel is pioneer in the industry to develop new products which can substitute the
imported material to reduce cost of purchase/sourcing for domestic industry. In this direction
Bhushan has developed new products, viz., Outer Skin Panels for cars, HLGP Coated material
for fuel tanks and High Tensile Strength Colled Rolled and Galvanized Steel for Automobile
Industry.

14
 OUTER SKIN PANELS FOR CARS

Bhushan Steel has emerged as leading supplier to all passenger cars, multi utility vehicles
manufacturers’ car skin panels which call for a combination for mechanical properties shape and
dent free surface of leading automobiles are made from our product which result in lesser
inventories. The basic raw material i.e. HR Coils used to produce skin panels imported from
Japan, Korea, France & UK.

HIGH TENSILE STEEL FOR AUTOMOBILE INDUSTRY

Reduction in automobile weight and thereby improvised fuel economy and passenger safety
required Steel that could offer high degree of formability with increased strength. Interstitial free
high strength Steel offered by Bhushan Steel combine these factors. Bhushan Steel offers
Interstitial free-high strength Steel with tensile strength as high as 550MPa. The common grades
used by Automobiles are SPRC 340, SPRC 390, SAPH 390, SAPH 410, and SAPH 450.
Bhushan Steel is also in the Bake Hardening Steel and TRIPP Steel.

Manufacturing Process
15

H.R. COIL
 RAW MATERIAL

PICKLING Remove Surface

Impurities.

H.R. COIL
PICKLED
To get desired
COLD ROLLING Thickness

C.R. COIL

COLD ROLLED COIL

C.R. COIL

COLD ROLLED COIL

Cycle-1 Cycle-2 Cycle -3

Galvanizing Cut to length

Annealing
(Zn , Al Alloy ) 16
(To get desired physical
& chemical properties)
 C.R. SHEET
G.P. Coil ---F/H--------
(Galvanized plane
C.R.C.A. COIL Coil)
(Cold Rolled Coil
Annealed Annealing
(To get desired physical
Soft Hard & chemical properties)
Cut to length
Cut to Length Cut to Length
B.P. SHEET
Packaging
Corrugate
G.P.Sheet G.P. Coil
Packaging
Dispatching Galvanized
Packaging Packaging Corrugated
Sheet Dispatching

Dispatching Dispatching
Packaging

Dispatching

OVERVIEW OF THE
17
5P’s OF MARKETING
FOR
BHUSHAN STEEL LTD.

18
 A BRIEF ABOUT 5P’s OF BSL
(3.1) PRODUCT:-

Its Product can be classified as below:

PRODUCTS

Flat Products Long Products

Cable Tapes
Wire Rods
G P Coil

Steel Coil Bar Mills

G P Sheets

Corrugated Sheets

Cold Rolled sheets

Narrow C R Coil

Galvanized Coil

Precision Tubes

Galume
FLAT PRODUCTS:-
Black Pipes

19
 Cable Tapes:-

These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering
Applications etc.
Precision Tubes are made at our Chandigarh and Kolkata plants.

1. GP Coils:-

These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering etc.

20
 Steel Coils :-

These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering
Applications etc.

4. GP Coil Sheets :-

Applications: Galvanised Coils and Sheets are used to make Boxes, Containers, Ducting, Cooler
Body, etc.
GP Coils are manufactured at our Kolkata Plant.

5. Corrugated Sheets:-

21
Corrugated sheets are extensively used for Industrial sheds, housing, temporary structures etc.

Corrugated Galvanized Sheets are manufactured at Our Kolkata plant.

6. Cold Rolled Sheets :-

Cold Rolled Sheets are used in the manufacture of Automobiles, White Goods, Electrical Panels,
Furniture, Transformers, Oil barrels and drums and general engineering products.

22
 Narrow CR Coils:-

Narrow Cold Rolled Coils are used in the manufacture of Automobiles, Precision Tubes, Cable
Tapes, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and
general engineering products.
Narrow CR Coils are produced at our Chandigarh, Kolkata and Orissa Plants.

Galvanized Pipes:-
23
Galvanized Pipes find its uses in a number of applications including domestic, agriculture and
Industrial.
Galvanized Pipes are available in the sizes ranging from 10mm NB to 100 mm NB, Strip
thickness 1.80 mm 5.40 mm
We manufacture GI Pipes at our Derabassi (Punjab) Plant.

24
 9. Black Pipes:-

Black pipe is used for transportation of air, gas, fabrication of structure, automobiles, cycles and
general furniture industries. Varnished pipes are used for general engineering industries.
Black pipe is manufactured at our Chandigarh, Derabassi and Kolkata plants.

Precision Tubes :-

25
These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering
Applications etc.

Precision Tubes are made at our Chandigarh and Kolkata plants.

11. GALUME:-

BHUSHAN has set up the technology of manufacturing a very new coated product called
BHUSHAN GALUME being the brand name. This alloy coating consists of 55% Aluminum and
43% Zinc and the balance contains Silicon around 1.5% to affect excellent adhesion to the Steel
substrate.

Galume Production Technology:

This coating is given on the cold rolled substrate processed from selective Hot rolled coils with
selective chemistry for getting the desired mechanical properties specified by the customers. The
Galume product is made by the continuous hot dip process. The cold rolled coils are welded end
to end and passes through 3 stage degreasing section for achieving excellent cold rolled strip
surface. The coating system is 2 pot system- premelting pot and the main coating pot. The bath
chemistry is continuously controlled and monitored at the pre melting pot which continuously

26
feeds the main coating pot through the refractory tunnel.

Galume market

We have produced about 50000 MT as on date from the commissioning of our Galume
production. Our line is fully booked and hopes to produce continuously about 15000 MT per
month.

In India, we are supplying Galume and Pre-painted Galume to reputed companies. To mention
few of them, we supply to Kirby, Trigger Steels, Lloyds Insulation, Multicolor, GSP Power,
ERA Metal, Unimet Profiles, Isolloyds Engineering, Color Roofing, Havel’s India Ltd, MG
Industries, Ganga roofers, Century wells and others

. Our 80 % of production is exported to various counties all over the world, USA, European
Countries and Spain, South Africa, Italy and South East Asian countries. There are no Indian
standards for this product. We have established our product in international market against
ASTM / EURO and AS standards. It is imperative to mention to you that now our product or
brand is preferred over Arcelor and Blues cope. Some of our Global direct customers are Defer
co-USA, NOVO Steel USA, Toyota Tshuho, America Nialco SA Belgium, Savogni Italy, Gibbs
Steel, South Africa, Arcelor Barba DOS, Global Roofing-Durban and others.

GALUME Properties:

Due to bright surface & fine spangles, excellent heat reflectivity up to 315 c, & due to high
Aluminum content, Galume has heat (oxidizing) resistance up to > 320 c without discoloration
and without impairment of its alloy coating.

PRE-PAINTED GALUME SHEETS

27
Coil coating is the most advanced techniques used in the continuous application of an organic
coating on to a flat metal substrate in the coil form

Bhushan Steel is the only company in India which is producing colored sheet first time in India.

Coil Coating Process:

* CLEANING OF SHEET
* CHEMICAL COATING
* DRYING
* PRIMER APPLICATION (ON BOTH TOP &
BOTTOM)
* CURING OF PRIMER
* TOP COAT & BACK COAT APPLICATION
* CURING OF TOP & BACKING COAT

LONG PRODUCTS:-

1. Wire Rod and Bar Mill:-

With the introduction of most technologically advanced special and alloy steel long product
rolling complex for manufacture of value added bars and coils, a new dimension has been added
in BPSL's long history in the steel business.
The Long Product Rolling Complex consists of a most modern 0.5 million tpa multiproduct Wire
Rod and Bar Mill (18 pass Horizontal & Vertical Continuous Mill) supplied by Danieli
Morgardshammar, Italy and KOCKS, Germany (4 pass mill).

28
The state of the art Wire Rod & Bar Mill, one of the most modern plants of this type in the
world, will produce:

 Straight Bars
 Bar in Coil form
 Wire rods

(3.2) PRICE:-

Price is one of the most crucial elements behind a successful product. It is more pragmatic & fact
oriented in industrial marketing as compared to pricing for consumer product.

Factor influencing pricing strategy of Bhushan Steel Ltd are:-

1. Production cost:-

It includes the cost of the raw materials, cost of transportation, cost of all other things
which are involved in the production of the various products. Production cost highly
influences the pricing policy of various goods at Bhushan Steel. Bhushan Steel aims at
reducing its production cost by having its own power plant and its own raw material
which helps as a major factor in reducing the overall production cost and supplies goods
at the best price in market. The production units of BSL are situated at very good
locations and near to the consumer centers of North and South so its distribution cost is
thereby reduced.

2. Market demand:-
29
 The demand of the various products in the market also plays a key role in developing the
pricing policy of bhushan steel as if market demand is huge then there will be bulk
production of goods which will reduce the overall cost and if the market demand is less
and then production cost per unit increases.

3. Competition:-

Bhushan Steel also keep in mind the competitors price of the products while formulating
its pricing policy. Bhushan steel provides goods at reasonable rates than its competitors
as it has its own material and electricity which plays a vital role of steel production

process.

4. Government regulations:-
Price also fluctuates by various government rules and regulations. Government policies
keep changing from time to time which affects the pricing strategy and principles of
Bhushan Steel.

(3.3) PLACE:-

Place represents the location where a product can be purchased. But in industrial marketing
place is often referred to as the distribution channel.
Channels of Distribution:-
 Direct Marketing Channel (or Zero Level):-
This type of channel has no intermediaries. In this distribution system, the goods go from the
producer directly to the consumer, e.g., Eureka Forbes

30
 0 L e v e l

P ro d u c e r C o n s u m e r

 Indirect Marketing Channel:-

1. One-level Channel: In this type of channel there is only one intermediary between
producer & consumer.
1 L e v e l

P ro d u c e r R e ta ile r C o n s u m e r

Distribution
Channel at BSL

OEM DOMESTIC EXPORT

(0 Level) TRADING (0 Level)
(1 Level)

Order
No Order
Order in form of
schedule
Payment in
No Payments form of L.P.

Payment as per
agreement
Delivering of
Totally based on Schedule
projections.
31
MARKETING NETWORK

32
MAJOR CUSTOMER AND CLIENTELE

33
 (3.4) PROMOTION
The promotional activities at Bhushan Steel Ltd. are done basically through advertisements,
personal selling and Direct Marketing. BSL give advertisements in the power and steel magazine
of India and also in some of the newspapers.The public relation of BSL is also high as it has
build trust and goodwill over the years among their customers which leads to good word of
mouth and which also helps in promoting their products.

At BSL Direct marketing is involved in which the customers contact BSL directly and place
orders of the products .This direct marketing takes place through the image and goodwill of BSL.

(3.5) PACKAGING

HIGH TENSILE STEEL STRAPPING -FOR PACKAGING

The Cold Rolled High Tensile Steel strapping is specially heat treated to provide high strength
and toughness for packaging application. On this high speed and high precision online heat
treatment line, the special strap paints are applied for strapping and cured by wave curing system
using quartz lamps. For tension transmission high gloss wax is applied and cured by infrared
wave curing system. The allied products such as whole variety of metal seals and strapping tools
are also available to our customers, confirming to the International Standards ASTM D-3953

All variety of seals like, Snap-on seals, Push type seals, Nestack seals are available for various
applications

34
 APPLICATIONS

Flat springs for automobile clutches, Woodworking saws, Masonry & Argo. Tools, Gang saws
blades, for marble cutting, Doctor Blades, for paper industries, leather splitting knives, Drop pins
for textile industries etc.

BENEFITS TO CUSTOMERS

1. EXCELLENT SURFCE FINISH

 Auto shape control on both side of the mill.

 Mill clean system with a synthetic coolant to avoid any coolant mark on the strip.
 Electrolytic cleaning line to remove ‘IRON FINES’ form strip, which helps in improving
the life of salt-spray test after painting and avoids carbon soot completely. It also
increases the tool’s life in Press shop.
 Latest and sophisticated EDT machine from Waldrich Siegen, Germany, to provide
controlled texture for better paint adhesion and to achieve surface roughness in close
tolerances.
 On-line Tension-Leveling equipment for better flatness and controlled elongation.
 Computerized Inventory Control Management and independent skin-pass mill to avoid
any unwanted storage in between annealing and skin-pass process.
 KATHABAR STORAGE SYSTEM is commissioned to avoid oxidation through
dehumidifier to prevent rusting during storage.
 Electro-static rust preventive oil spray for controlled oil coating on CRCA surface. Oil
coating can be maintained in between 0.50gms/m2 to 4.0gms/m.

2. EXCELLENT MECHANICAL PROPERTIES

 Practically, no variation in mechanical properties due to HICON 100% Hydrogen

annealing furnace from EBNER, Austria.
 The raw material selection is done by dedicated software for different applications.

35
3. CLOSE TOLERANCE TO THICKNESS, WIDTH & LENGTH

 X-RAY thickness gauge to measure thickness in fraction of a micron from DMC,

U.S.A.
 X-RAY thickness scanner across control from DMC, U.S.A
 Shim less tooling on slitting lines with computerized setting correct width in close
tolerance, form Germany.
 Precision Cut-to-length lines to ensure length tolerances better then +/-0.75mm.
 Automatic Electromagnetic Stacker on shearing lines to produce scratch free,.

OTHER ADVANTAGES

 Better width combination facility to customers.

 Higher yield in standard width material, i.e., up to 92.45%.
 Thickness, length & width tolerances as per customer requirements. The equipment is
capable enough to maintain all these tolerances in the lower side of International
Standards like JIS, BIS, ASTM and EN.
 The largest service center in the country available with Bhushan Steel enables it to accept
the orders in different sizes and service the same in the shortest possible time.
 Well located on the map of the country for smooth supply of finished Goods.

36
 RESEARCH

METHODOLOGY

37
 RESEARCH OBJECTIVES

 To understand the Marketing mix of Bhushan Steel Ltd.

 Sales analysis of the flat Steel products of Bhushan Steel Ltd.

 To do competitor analysis in comparison to the brand preferred in the market

in terms of product range, pricing, availability, supply, quality and after sales
services.

 To know about Dealers Perception for flat steel products.

Why are we doing competitor’s analysis?

Competitor analysis is an essential component of corporate strategy, we are doing

competitor analysis to know the market share of Bhushan Steel Ltd among the major
producer of flat Steel products in the Indian Steel industry.
This competitor analysis will show the major areas of strength and weakness of the
Bhushan Steels Ltd and other major producers.
This will reveal the major opportunities in the industry that can help in the improvement
of the Bhushan Steels Ltd.
Competitor analysis will also show that which company’s flat Steel product is mostly
preferred by the customer.

38
 RESEARCH METHODOLOGY

Methodology is the specifications of the method for acquiring the information needed to
structure the study.

1. Problem Formulation: - This refers to transformation of the management problems into

a research problem.

2. Research Method: - It involves choosing Experimental or Non Experimental Research.

This research was non – experimental.

3. Research Design: - It is the plan structure and strategy of investigation convinced so as

to obtain answer research question. It is purely and simply the framework or plan for
study that guides the collection of analysis of data. It is a blue print that is followed on
completing the study. Designing of a research plan calls for decision on the Data sources,
Research approaches, Research instruments, sampling plan. For this Research the
Descriptive Research method was used. This is because it is marked by the prior
formulation of specific research questions. It has a preplanned and structure design. For
Descriptive Research study proposed data analysis and project output are critical aspects.

SAMPLE DESIGN
Sampling Method:-

The Basic idea of sampling is that by selecting some of the element in a population in order to
get first hand information of study.

There are 2 types of sampling, probability sampling & non-probability sampling and in this
research, Researcher has taken probability sampling.

39
 Simple Random Probability Sampling Method-

Probability sampling is the most commonly associated with survey based research where you
need to make inferences from your sample about a population to answer your research question
or to meet your objectives. The process of probability sampling can be divided into 4 stages :-

1. Identifying a suitable frame based on your research questions or objectives.

2. Decide on a suitable sample size.
3. Select the most appropriate sampling technique and select the sample.
4. Check that the sample is representative of the population.
The objective of probability sampling depends on the research questions & on the objectives

Sampling Location:-

 Our Target population was the steel distributors and the companies where steel is used as
a raw material

 We collected the information from the dealers located mainly in the Delhi/NCR region
namely Ghaziabad, Faridabad and Naraina.

Sampling Size :-

 The data for the sampling was collected from 100 people- 60 Customers & 40 Dealers

Sampling Unit :-

Dealers and customers which use and sell flat steel products.

40
 METHODS OF COLLECTION OF DATA

Data collection is a key activity of Research. Data collection method is the backbone of research
design.

Collection of Primary Data :-

 Data was collected from the dealers and customers.

 Data was collected through questionnaires, Observations and Interviews.
 Questionnaire was made according to our requirements i.e. type of data required in our
research.

Analysis and Interpretation of Data

Data which has been obtained are seldom useful to anyone, if it is not analyzed and interpreted in
order, the breaking down of constituent parts are the manipulating of the data and to obtain
answer to the research questions. Interpretations involves taking the result of analysis, making
inferences relevant to the research relationship studied and drawing conclusions about these
relationships.

Technique used for analysis & Interpretation of data :-

 Pie - Charts
 Percentage analysis

Research Report

The culmination of the research process is research report. Methodology, report and
recommendation for course of action are presented. The 2 critical attributes of reports are
completeness and conciseness.

41
 DATA ANALYSIS

AND

FINDINGS

DATA ANALYSIS

1. Interested in which Flat Steel products?

42
a). CR COILS b). CR SHEETS c).GP & GC d). OTHERS

PRODUCTS INTERESTED IN

PRODUCTS

2%
8%

22%

68%

(Fig. no. 1) GP AND GC

CR SHEETS
Interpretation
CR COILS
It is found that 68% of people are interested in GP & GC
OTHERS
products .These products are the most preferred and highly
demanded products in the market. Then comes 22% of people are
interested in CR SHEETS , 8% in CR COILS and 2% Others.

2. Which aspect of product do you give most priority?

a). PRICE b).PRODUCT RANGE c). QUALITY d).SUPPLY

43
ON WHAT BASIS BRAND IS SELECTED

BASIS OF SELECTION OF BRAND

PRICE
24%
29%
SUPPLY

QUALITY
21%
26%
PRODUCT
RANGE

(Fig. no. 2)

Interpretation

It is found that 29% of people select the brand on the basis of Price, 26% on basis of supply, 24%
on basis of Quality and 21% on basis of Product range. Most of the people select the brand on
basis of the price.

44
3. Which company’s flat Steel products you sell maximum annually?

a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

SALE PERCENTAGE OF MAJOR PRODUCERS

SALES

20%

38% SAIL

BHUSHAN STEEL

29%
TATA STEEL
13%
JINDAL STEEL

(Fig. no. 3)

Interpretation

It is found that dealers sell maximum Flat steel products of

SAIL i.e. 38% which is the highest sales share. Then comes Bhushan Steel with 29% sales share,
then TATA Steel with 20% sales share and last Jindal steel with 13% sales share.

45
4. Rank 1-4 the following brands in terms of product range (1 max variety and 4 min
variety)

a).  TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

BRAND PREFERRED IN TERMS OF PRODUCT RANGE

46
 PRODUCT RANGE

18%
22%
BHUSHAN STEEL

12%
TATA STEEL

SAIL

JINDAL STEEL
48%

(Fig. no. 4)

Interpretation

It is found 48% of people prefer Bhushan Steel in terms of

product range. It has the largest product range available in
the market. Then comes TATA Steel on 2nd rank with 22% ,
then SAIL on 3rd rank with 18% and the 4th rank is of Jindal
steel with only 12% of product range available in market.

5. Select the brands in terms of best price

offered.

a).TATA b).BHUSHAN STEEL c). JINDAL STEEL d).SAIL

BRAND PREFERRED IN TERMS OF BEST PRICE OFFERED

47
 BEST PRICE

29%
SAIL
39%

TATA STEEL

BHUSHAN STEEL
20%
12% JINDAL STEEL

(Fig. no. 5)

Interpretation

It is found that SAIL offers the best price to its customers

and the brand preferred in terms of price is 39% which
signifies that it is the most preferred brand in terms of price,
then comes 29% for TATA steel, then 20% for Bhushan steel
and lastly 12% for JINDAL steel.

6. Select the brands in terms of better Supply.

a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

48
 SUPPLY

11%

34%
BHUSHAN STEEL

SAIL

47%
TATA STEEL
8%
JINDAL STEEL

(Fig. no. 6)

Interpretation

It is found that Bhushan Steel is the most preferred brand in

terms of better supply with percentage share of 47%, then
comes SAIL with 34% share, then TATA steel with 11%, then
JINDAL steel with 8%.

7. Select the brands in terms of quality of flat Steel products.

a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

BRAND PREFERRED IN TERMS OF QUALITY

49
 QUALITY

26%
30%
BHUSHAN STEEL

TATA STEEL

14%
SAIL

30%
JINDAL STEEL

(Fig. no. 7)

Interpretation

It is found that Bhushan Steel and TATA steel are the most preferred brand in terms of Quality
of Product with 30% of market share on basis of quality, then
comes SAIL with 26%, then JINDAL steel with 14%.

8. Rank 1-4 in terms of the after sale services and complaint

handling.

a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

BRAND PREFERRED IN TERMS OF AFTER SALE SERVICES

50
 AFTER SALE SERVICE

21%
32%
SAIL

BHUSHAN STEEL

30% TATA STEEL

17%
JINDAL STEEL

(Fig. no. 8)

Interpretation

It is found that SAIL is the most preferred brand in terms of after

sales service followed by Bhushan steel, followed by TATA steel
and JINDAL steel at the last rank in terms of after sales service.

9. Select the brands in terms of overall satisfaction level.

a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

BRAND PREFERRED IN TERMS OF OVERALL SATISFACTION

51
 OVERALL SATISFACTION

12%

29%
BHUSHAN STEEL

SAIL

8% TATA STEEL
51%
JINDAL STEEL

(Fig. no. 9)

Interpretation

It is found that Bhushan steel is the most preferred brand in

terms of overall satisfaction to its consumers with 51%, then
comes SAIL with 29%, then TATA Steel with 12%, then
JINDAL steel with 8%.

7. Rank 1-4 the following brand in terms of the product availability.

(1 most preferred and 4 least preferred)

a). TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

BRAND PREFERRED IN TERMS OF PRODUCT AVAILABLITY

52
 PRODUCT AVAILABILITY

21%
32%

30%
17%

Interpretation
BHUSHAN STEEL
It is found that Bhushan steel is the most preferred brand in terms
of Product availability to its consumers with 36%, then comes SAIL
SAIL with 30%, then TATA Steel with 21%, then JINDAL steel
TATA STEEL
with 17%.

JINDAL STEEL

8. Select the brands with whom you are dealing the most.

a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL

53
 26%
30%

14%

30%

BHUSHAN STEEL

SAIL

TATA STEEL
Interpretation
JINDAL STEEL
It was found that Bhushan steel was the most preferred brand
for the dealers whom they was dealing with due to its wide
range of products at cheaper rates, then comes SAIL, then
TATA steel followed by JINDAL steel.

54
 SALES AND PRODUCTION ANALYSIS

 PRODUCTION STATS OF FLAT STEEL PRODUCTS IN ‘000 TONNES IN

INDIA

YRS 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

COMPANY

TATA 3193 3231 3192 3586 3671 3798*

STEEL

SAIL LTD 9849 10288 9846 9736 9931 10403*

JINDAL 2246 2361 2178 2321 2540 2610*

STEEL

BHUSHAN 2416 2498 2331 2357 2554 2663*

STEEL

OTHERS 7193 7765 7278 10504 10253 9154*

*ESTIMATED FIGURE

(Table no.1)

55
 SALES STATS OF FLAT STEEL PRODUCTS IN ‘000 TONNES IN
INDIA

YRS 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

COMPANY

TATA 1671 1746 1684 1978 2080 2177*

STEEL

SAIL LTD 5436 5748 5110 4983 5518 5734*

JINDAL 1648 1713 1332 1849 2278 2304*

STEEL

BHUSHAN 1614 2178 2083 2106 2267 2310*

STEEL

OTHERS 6034 6802 6111 8215 8006 6975*

*ESTIMATED FIGURE

(Table no.2)

 PRODUCTION AND SALES CHART OF THE YEAR 2007-2008

56
 12000

10000

8000

6000 PRODUCTION
SALES
4000 EXPORT

2000

0
TATA STEEL SAIL LTD JINDAL BHUSHAN OTHERS
STEEL STEEL

(Fig. no. 1)

 PRODUCTION AND SALES CHART OF THE YEAR 2008-2009

12000

10000

8000

6000 PRODUCTION
SALES
4000 EXPORT

2000

0
TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN OTHERS
STEEL

(Fig. no. 2)

 PRODUCTION AND SALES CHART OF THE YEAR 2009-2010

57
12000

10000

8000

6000 PRODUCTION
SALES
4000 EXPORT

2000

0
TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN OTHERS
STEEL

(Fig. no. 3)

 PRODUCTION AND SALES CHART OF THE YEAR 2009-2010

12000

10000

8000

6000 PRODUCTION
SALES
4000 EXPORT

2000

0
TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN OTHERS
STEEL

(Fig. no. 4)

 PRODUCTION AND SALES CHART OF THE YEAR 2011-2012

58
 12000

10000

8000

6000 PRODUCTION
SALES
4000 EXPORT

2000

0
TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN OTHERS
STEEL

(Fig. no. 5)

 PRODUCTION AND SALES CHART OF THE YEAR 2012-2013

12000

10000

8000

6000 PRODUCTION*
SALES*
4000 EXPORT

2000

0
TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN OTHERS
STEEL

(Fig. no. 6)

FINDINGS

59
 BSL is the most efficient Flat steel producer from 2010-2013.

 In 2008-2009, Steel industry faced a downfall in their production and sales due to the
great recession of 2011-2013.

 Bhushan Steel performed well in domestic sales during recession.

 Industry has minimized the gap between production and sales and thus reducing the
wastage and inventory level thus improving the efficiency of the Steel industry.

 It was found that BSL makes a large variety of products with better technology and
advancements strategies.

 BSL plants are situated near to the consuming centers which help in BSL in easy and fast
delivery of products.

 The tie-ups that BSL has with the foreign companies for research and development is
very beneficial for the BSL.

 BSL is also improving its image in terms of quality, supply, and price and after sales
service.

 BSL wide range of products is a major advantage which helps them to be a market leader.

 GP & GC are the products which are most demanded in the market.

 SAIL is the largest producer of steel from 2008-2013.

60
 SUGGESTIONS

The recommendations which are to be suggested is as follows:-

 Overseas expansion of their business

 Focus on New Research and Development 
 Increase the Sales network and sales promotional activities in India and outside India. 
 Improve its transportation facilities and after sales service
 BSL should focus on generating more power
 Retail outlets in India and abroad
 BSL should improve its quality and pricing strategy to be a sole leader in market
 Offer replacement of defected products instead of settlement.
 Increase s production of GP and GC
 Company should focus on making new dealers. And giving them more advantage
 Time-to-Time survey to be conducted

61
 Limitations

Every study has its own limitations in terms of methodology and the resources available for its
conduct. This study has no expectations to it and has been carried under following limitations:-

 There arose difficulty in collecting data as people were not there at their respective
places, so we had to meet them even twice or thrice the same place.

 There were some companies who denied filling the questionnaires

 A number of dealers were biased towards a particular brand which was giving them better
returns.

 Respondent’s lack of time to give information and their casual attitude was a big
hindrance in the study.

 As 100% accurate data is not possible, and we have to rely on the information received
through questionnaire, than 0.2-0.4% of error was allowed.

62
 SWOT ANALYSIS WITH REGARDS TO BHUSHAN STEEL LTD.

STRENGHTS

 Adopting latest world class technologies.

 Technical tie-up with Sumitomo Metals, Japan.
 Location Advantage.
 Availability of its own iron ore and coal.
 Abundance of quality manpower at low cost.

WEAKNESSES

 BSL lacks aggressive sales promotion activities.

 Lack of export market activities.
 Unscientific mining.
 Low productivity.
 Inadequate infrastructure.
 Low R&D investments.
 Power shortage is there at BSL.

OPPORTUNITIES

 Since BSL is a major consumer of electricity which is almost 30 % of total product

costing, it should have power plants which can produce a large amount of electricity for
its own consumptions.
 Export Market Penetration
 Consolidation

THREATS

 Government policies, this results in up and down in Steel prices.

 Technological change.
 Price sensitivity & Demand volatility.

63
 Slow Industry Growth.

CONCLUSION

64
 IT GIVES ME IMMENSE PLEASURE TO SAY THAT I HAVE SUCESSFULLY
UNDERGONE 30 DAYS OF INDUSTRIAL TRANING IN BHUSHAN STEEL LTD. IT WAS
A LIFETIME EXPERIENCE . I LEARNED A LOT OF NEW THINGS ,AND LOT OF NEW
WAYS OF SOLVING A PROBLEM. I WANT TO CONCLUDE MY REPORT ON A
POSITIVE NOTE AND I HOPE THAT THE EXPERIENCE WHICH I GOT WILL ALSO B
FRUITFUL IN MY CAREER AHEAD.

65
 BIBLIOGRAPHY

BOOK REFERENCE

1. Aaker,D.A. “Marketing Research” Johnwiley Publications, 7th Edition.

2. Philip Kotler “Marketing Management” Pearson Publications, 12th Edition.
3. Bery G.C “Marketing Research” Tata Macgraw hill Publications 3rd Edition

WEB SITES

1. http://en.wikipedia.org/wiki/Bhushan_Steel
2. http://www.bhushan-group.org/
3. http://www.bpsl.net/
4. http://economictimes.indiatimes.com/bhushan-steel-ltd/stocks/companyid-
10434.cms

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