INDEX

Chapter I : Introduction
Objectives of the study
Scope of the study
Need for the study
Research Methodology
 Data Collection
 Sample size
 Sample Method
 Questionnaire
Limitations
Chapter II : Industry profile
Chapter III : Company profile
Chapter IV : Theoretical framework
Chapter V : Data analysis and Interpretation
Chapter VI : Findings, Suggestions and Conclusion
Appendix : Questionnaire, Bibliography
 Chapter -1
Introduction

CHAPTER – I
Introduction
1.1 INTRODUCTION
Dealer is a person or firm engaged in commercial purchase and sale. Dealer may signify
firms that buy or resell products at retail or wholesale basis. A producer cannot sell all his
products directly to consumer, he has to depend upon intermediaries to push, off, his
products. A dealer is an intermediary who helps to market a product. A dealer is one who
purchase and sells products. A dealer may be a wholesaler or a retailer or a distributor or
any agents.
The volume of sales depends on the efficiency of a dealer who assesses the psychology of
consumers and takes appropriate steps to sell a product. It is the dealer who suggests to the
manufacturers the suitable media of advertisement and other promotional tools. Dealers are
searching for new marketing strategies to attract and hold customers. Dealers include all
activities involved in selling goods and services to those buying for resale or business use.
Dealers buy mostly producers and sell mostly to retailers or industrial consumers.
DEALER SATISFACTION
Dealer wants high marginal gain from manufacturers. The main objective of dealership is
earning profits. Dealership business is different from other business. The peculiar feature
of a dealer is dealing with one or more similar products. Dealers earn commission for
goods sold from the manufacturers. The commission depends upon the value of sales both
cash and credit. Now a days the demand for cement increases every year.
The manufacturers are not able to cover all the consumers directly. With the help of
dealers only they can reach the consumers. Dealer excepts income from business because
there is some guarantee of getting more commission from this business. Dealers demand
more commission from the manufactures, they cover the entire market within their locality.
They also sell cement in credit to regular customer.
PROMPT DELIVERY
For every business competition is inevitable, Knowledge, about the direct, reasonable
price, prompt delivery etc., are the only ways in which one can attract more consumers.
Delivery of every goods to the place of consumers will attract every consumer. When
there is a delay a small delay of one or two days or even hours may cause a great set back
in consumer satisfaction.
There are various ways we can satisfy the consumers. One among them is a regular supply
and prompts delivery of goods to customers. Even though quality is excellent and the price
is reasonable we cannot satisfy the consumers, unless there is prompt delivery of goods.
IMMEDIATE REALIZATION OF MONEY AFTER SALES
Dealers will get their commission immediately after every sale. This will motivate the
dealers to increase the sales volume. The sales are increased then income will also be
increased. Generally commission will be paid in every month or for every sale. “More
sales more commission and less commission” is the doctrine of dealership.
CREDIT FACILITIES
Business is based on bonafide good faith, confident and mutual trust. Long ago business
was based on cash basis. But now business is based on mercantile basis (Credit basis).
More over cash basis of business in also not possible for every business because of want of
funds. Mercantile basis of business is globally accepted and very easier for the business
people.
Credit facilities to regular customer and genuine consumers will enhance the business.
There some consumers who buy mostly in credit and make their payment at regular
intervals. There is some agreement between the buyer and seller for a credit purchase.
This agreement also covers terms of payment trade discount, cash discount etc., for the
smooth ant regular payment of cash. Credit facility system is beneficial to both the buyers
and sellers. There will be tremendous improvement on both the sides. Allowing credit to
consumers is also useful for growth and expansion.
GIFTS FROM THE COMPANY
Some reputed companies will provide a number of gifts to its dealers and distributors.
Their gifts are allowed to improved sales in all areas. Dealers will be much motivated
when gifts are offered by manufactures. Gifts are a special kind of incentives, which will
pursue the dealers to increase their sales.
The main objectives of offering gifts to dealer and distributors are to enhance or improve
sales to the maximum level. The competition can be easily managed when gifts are offered
to dealer, the number of types of gifts is as follows.
 Value of sales in Rupees.
 Value of sales in units
 Seasonal gifts.
Gifts to dealers will play a greater role in marketing. This will motivate the full dealers to
do better and this will also encourage better sales.
1.2 OBJECTIVE OF THE STUDY

 To study the level of dealer’s satisfaction.

 To assess the effectiveness of promotional tools to improve the sales as

Opined by the dealers.

 To analyze the factors that affects the dealer’s preference in dealing with steel

 To understand the strength and weakness of TATA STEEL distribution.

 To study the satisfaction of dealers towards dealer service, availability etc from the
dealer.

1.3 Scope of the study

The scope of this study Is only some dealers in Kurnool dist . It does not cover all the
dealers of the TATA STEELS. The result of the study is use full to assess dealers satisfaction
and let us know how the company provide services to the dealers. It helps in getting feedback
about the product quality. The project helps to put in to practice the theoretical aspects of the
study into reality.

1.4 Need for the study

 The researcher aims at finding ways of improving the market share of TATA ATEELS.

 In this case the actual users of STEELS are very much aware of TATA and other brands of
STEEL available in the market.

 Therefore the firm which wants to improve its market share should study the dealer’s
satisfaction.

1.5 Research methodology

RESEARCH METHODLOGY:

Research methodology is the systematic approach to the given problem. In other words, it is
the way in which we go for collection of data. Therefore, the better way of collecting data is
very important than the data collected because ultimately the data collected is depended upon
how we approach towards the data. The data has been collected by using the following tools.
 TOOLS OF DATA COLLECTION:

The information relevant for study was drawn from primary data collected through survey
method, which alone was not sufficient. Hence secondary data was collected successfully.

1) Primary data - Primary data was collected through Questionnaire by distributing

questionnaires to the respondents. Questionnaire consist of personal details and core
details. Seven personal details were included in the question which consisted of name,
age, income, sex, occupation, etc. Core details include questions relating to Bajaj
vehicles and the responses given by the respondents, which has formed a basis for
giving suggestions.

2) Secondary data – The secondary data collection involved internet search, browsing
magazines, newspapers and articles and papers related to the two-wheeler industry in
India. Numerous journals and books related to the topic were also browsed to
understand the dynamics of the industry.

Sample Design
:: Primary Data - From questionnaire and personal
Data Source interaction

Secondary data - Website, Magazine, Newspapers

and articles

:: Survey method
Research approach

Research Instrument :: Questionnaire

Sample plan : Personal Interview

Sample unit : Dealers on TATA STEELS

Sampling method : Convenient random sampling method

Sample Size : 50

Area of survey : The area selected for survey KURNOOL DISTRICT

1.6 Limitations of the study

 The study was carried out in kurnool Districts only, owing to time and cost limitations.

 Simple size who limited to 50 due to time and cost constrains

 This research was conducted among dealers only for obtaining consumer response,
further survey among users of TATA STEELS is suggested.

 The results of the study can be applied only to TATA STEEL and not for other similar
brands or geographical areas.
 Chapter -2
Industry profile

INDUSTRY PROFILE
The metal industries are the indispensible part of an economy; they form the
backbone of industrial development of any country.
Steel is crucial to the development of any modern economy and is considered to be
the backbone of human civilization. The level of per capita consumption of steel is
treated as an important index of the level of socioeconomic development and living
standards of the people in any country. It is a product of a large and
technologically complex industry having strong forward and backward linkages in
terms of material flows and income generation. All major industrial economies are
characterized by the existence of a strong steel industry and the growth of many of
these economies has been largely shaped by the strength of their steel industries in
their initial stages of development. Steel industry was in the vanguard in the
liberalization of the industrial Sector and has made rapid strides since then. The
new Greenfield plants represent the latest in technology. Output has increased, the
industry has moved up i n the value chain and exports have raised consequent to a
greater integration with the global economy. The new plants have also brought
about a greater regional dispersion easing the domestic supply position notably in
the western region. At the same time, the domestic steel industry faces new
challenges. Some of these relate to the trade barriers in developed markets and
certain structural problems of the domestic industry notably due to the high cost of
commissioning of new projects. The domestic demand too has not improved to
significant levels. The litmus test of the steel industry will be to surmount these
difficulties and remain globally competitive.
The story of steel industry dates back to the 19th century were in the first public
sector steel plant, India iron and steel plant was set up in India at Burnpur.
Jamshedji Tata became the first steel entrepreneur by setting up TISCO in 1907.
After independence the entry of new players was restricted in the infrastructure
segment because of the industrialization policy resolution 1956. The Indian
economy witnessed a shortage of steel and hence resorted to importing of finished
steel and hence resorted to import of finished steel for consumption. There was a
lift in the Indian steel industry with the advent of the second 5 year plan, wherein
there steel plants each with the capacity of one million tons, were installed at
Bhilai, Rourkela and Durgpur. The production of steel at this juncture was more
than 4 million tons, which was certainly a good figure. But the country failed to
capitalize private sector.
SAIL was set up in 1973 to take over the state owned steel enterprises. SAIL and
TISCO collectively contributed to nearly 80% of the steel production in the
country till de- control was ushered in the industry.
The 8th 5 year plan de-licensed the steel sector in 1992 encouraged more investors
into the steel sector. All these factors, along with the economic liberalization paved
the wave for the entry of new players, domestic as well as foreign.
The expansion of auto and white good industry gave a boost to the segment of
value added steel production. Along with the private sector, the public sector giant
SAIL‟s profit also, plunged by nearly 50%.
HISTORY OF STEEL
Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till
220 AD. Prior to steel, iron was a very popular metal and it was used all over the
globe. Even the time period of around 2 to 3 thousand years before Christ is termed
as Iron Age as iron was vastly used in that period in each and every part of life.
But, with the change in time and technology, people were able to find an even
stronger and harder material than iron that was steel. Using iron had some
disadvantages but this alloy of iron and carbon fulfilled all that iron couldn‘t do.
The Chinese people invented steel as it was harder than iron and it could serve
better if it is used in making weapons. One legend says that the sword of the first
Han emperor was made of steel only. From China, the process of making steel
from iron spread to its south and reached India. High quality steel was being
produced in southern India in as early as 300 BC. Most of the steel then was
exported from Asia only. Around 9th century AD, the smiths in the Middle East
developed techniques to produce sharp and flexible steel blades. In the 17th
century, smiths in Europe came to know about a new process of cementation to
produce steel. Also, other new and improved technologies were gradually
developed and steel soon became the key factor on which most of the economies of
the world started depending.
MAJOR PLAYERS OF STEEL IN INDIA
I. PUBLIC SECTOR
a) Steel Authority of India Limited (SAIL)
Steel Authority of India Limited (SAIL) is a company registered under the Indian
Companies Act, 1956 and is an enterprise of the Government of India. It has five
integrated steel plants at Bhilai (Chattisgarh), Rourkela (Orissa), Durgapur (West
Bengal), Bokaro (Jharkhand) and Burnpur (West Bengal). SAIL has three special
and alloy steel plants viz. Alloy Steels Plant at Durgapur (West Bengal), Salem
Steel Plant at Salem (Tamilnadu) and Visvesvaraya Iron & Steel Plant at
Bhadravati (Karnataka). In addition, a Ferro Alloy producing plant Maharashtra
Elektrosmelt Ltd. at Chandrapur, is a subsidiary of SAIL. SAIL has Research &
Development Centre for Iron & Steel (RDCIS), Centre for Engineering &
Technology (CET), SAIL Safety Organisation (SSO) and Management Training
Institute (MTI) all located at Ranchi; Central Coal Supply Organisation (CCSO) at
Dhanbad; Raw Materials Division (RMD), Environment Management Division
(EMD) and Growth Division (GD) at Kolkata. The Central Marketing Organisation
(CMO), with its head quarters at Kolkata, coordinates the country-wide marketing
and distribution network.
b) Rashtriya Ispat Nigam Ltd. (RINL)
RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore
based integrated steel plant located at Visakhapatnam in Andhra Pradesh. The
plant was commissioned in August 1992 with a capacity to produce 3 million tonne
per annum (mtpa) of liquid steel. The plant has been built to match international
standards in design and engineering with state-of- the- art technology incorporating
extensive energy saving and pollution control measures. Right from the year of its
integrated operation, VSP established its presence both in the domestic and
international markets with its superior quality of products. The company has been
awarded all the three International standards certificates, namely, ISO 9001:2000,
ISO 14001: 1996 and OHSAS 18001: 1999. RINL was accorded the prestigious
‗Mini Ratna‘ status by the Ministry of Steel, Govt. of India in the year 2006 and
the company is gearing up to complete the ambitious expansion works to increase
the capacity to 6.3 mtpa by 2009. RINL has prepared a road map to expand the
plant‘s capacity up to 16 mtpa in phases.
c) Metal Scrap Trade Corporation Ltd. (MSTC)
MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the 9th
September, 1964 as a canalizing agency for the export of scrap from the country.
With the passage of time, the company emerged as the canalizing agency for the
import of scrap into the country. Import of scrap was de-canalized by the
Government in 1991-92 and MSTC has since then moved on to marketing ferrous
and miscellaneous scrap arising out of steel plants and other industries and
importing Coal, Coke, Petroleum products, semi-finished steel products like HR
Coils and export primarily Iron ore. The Company has also established an e-
auction portal and undertakes e-auction of Coal, Diamonds and Steel Scrap and has
developed an e- procurement portal in house.
d) Ferro Scrap Nigam Ltd. (FSNL)
FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of Rs.
200 lakh. The Company undertakes the recovery and processing of scrap from slag
and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai, Bokaro,
Visakhapatnam, Durgapur, Dolvi, Duburi & Raigarh. The scrap recovered is
returned to the steel plants for recycling/ disposal and the Company is paid
processing charges on the quantity recovered at varying rates depending on the
category of scrap. Scrap is generated during Iron & Steel making and also in the
Rolling Mills. In addition, the Company is also providing Steel Mill Services such
as Scarfing of Slabs, Handling of BOF Slag, etc.
e) Hindustan Steelworks Construction Ltd. (HSCL)
HSCL was incorporated in June 1964 with the primary objective of creating in the
Public Sector an organization capable of undertaking complete construction of
modern integrated Steel Plants. HSCL had done the construction work of Bokaro
Steel Plant, Vizag Steel Plant and Salem Steel Plant from the inception till
commissioning and was associated with the expansion and modernization of Bhilai
Steel Plant, Durgapur Steel Plant, IISCO (Burnpur) and also Bhadravati Steel
Plant. With the tapering of construction activities in Steel Plants,the company
intensified its activities in other sectors like Power, Coal, Oil and Gas. Besides this,
HSCL diversified in Infrastructure Sectors like Roads/Highways, Bridges, Dams,
Underground Communication and Transport system and Industrial and Township
Complexes involving high degree of planning, co-ordination and modern
sophisticated techniques. The company has developed its expertise in the
areas of Piling, Soil investigation, Massive foundation work, High rise structures,
Structural fabrication and Erection, Refractory, Technological structures and
Pipelines, Equipment erection, Instrumentation including testing and
commissioning. The company has also specialized in carrying out Capital repairs
and Rebuilding work including hot repairs of Coke Ovens and Blast Furnaces and
other allied areas of Integrated Steel Plants.
f) MECON LTD
MECON is one of the leading multi-disciplinary design, engineering, consultancy
and contracting organization in the field of iron & steel, chemicals, refineries &
petrochemicals, power, roads & highways, railways, water management, ports &
harbors, gas & oil, pipelines, non-ferrous, mining, general engineering,
environmental engineering and other related/ diversified areas with extensive
overseas experience. MECON, an ISO: 9001- 2000 accredited company, registered
with World Bank (WB), Asian Development Bank (ADB), European Bank for
Reconstruction and Development (EBRD), African Development Bank (AFDB),
and United Nations Industrial Development Organization (UNIDO), has wide
exposure and infrastructure for carrying out engineering, consultancy and project
management services for mega projects encompassing architecture & town
planning, civil works, structural works, electric, air conditioning & refrigeration,
instrumentation, utilities, material handling & storage, computerization etc.
MECON has collaboration agreements with leading firms from the USA,
Germany, France, Italy, Russia, etc. in various fields. The authorized share capital
of the company is Rs. 10,400 lakh (previous year Rs. 4,100 lakh) against which the
paid up capital is Rs. 10,313.84 lakh (previous year Rs. 4,013.84 lakh). All the
shares are held by the Government of India.
II. PRIVATE SECTOR
The private sector of the Steel Industry is currently playing an important and
dominant role in production and growth of steel industry in the country. Private
sector steel players have contributed nearly 67% of total steel production of 38.08
million tons to the country during the period April-December, 2007. The private
sector units consist of both major steel producers on one hand and relatively
smaller and medium units such as Sponge iron plants, Mini Blast Furnace units,
Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-rolling Mills and
Coating units on the
other. They not only play an important role in production of primary and secondary
steel, but also contribute substantial value addition in terms of quality, innovation
and cost effective.
a) TATA STEEL LTD
Tata Steel has an integrated steel plant, with an annual crude steel making capacity
of 5 million tons located at Jamshedpur, Jharkhand. Tata Steel has completed the
first six months of fiscal 2007-08 with impressive increase in its hot metal
production. The hot metal production at 2.76 million tons is 4.6%more compared
to the corresponding period of the previous year. The crude steel production during
the period was 2.43 million tons which is marginally lower than the production of
2.45 million tons last year. The saleable steel production was at a lower level
during the period April September, 2007 (2.34 million tons) compared to the
corresponding period of last year (2.36 million tons). Tata Steel is continuing with
its programmer of expansion of steelmaking capacity by 1.8 million tons to reach a
rated capacity of 6.8 million tons. The Project is reported to be moving ahead of
schedule and is likely to be commissioned by May 2008 against the original
schedule of June 2008. The Company has planned to take the capacity to 10
million tons by the fiscal year 2010. Tata Steel‘s Greenfield projects in Orissa and
Chhattisgarh are progressing on schedule with placement of equipment order for
Kalinganagar Project in Orissa and commencement of the land acquisition process.
Jharkhand Project is awaiting announcement of Relief & Rehabilitation policy of
the State Government.
b) ESSAR STEEL LTD.

Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint
covering India, Canada, USA, the Middle East and Asia. It is a fully integrated flat
carbon steel manufacturer—from iron ore to ready-to-market products. ESHL has a
current global capacity of 8 million tonnes per annum (MTPA). With its aggressive
expansion plans in India and other parts of Asia and North America, its capacity is
likely to go up to 25 MTPA by 2012. Its products find wide acceptance in highly
discerning consumer sectors, such as automotive, white goods, construction,
engineering and shipbuilding. Essar Steel Ltd., the Indian Company of Essar Steel
Holdings Limited, is the largest steel producer in western India, with a current
capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA.
The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla,
Chattisgarh which has world‘s largest slurry pipeline of 267 km
to transport beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet
complex at Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India,
houses the world‘s largest gas-based single location sponge iron plant, with a
capacity of 4.6 MTPA. The complex also houses the steel plant and the 1.4 MTPA
cold rolling complexes. The steel complex has a complete infrastructure setup,
including a captive port, lime plant and oxygen plant. Essar Steel produces highly
customized value-added products catering to a variety of product segments and is
India‘s largest exporter of flat products, selling close to half of its production to the
highly demanding US and European markets, and to the growing markets of South
East Asia and the Middle East. The company‘s products conform to quality
specifications of international quality certification agencies, like ABS, API, TUV
Rhine Land and Lloyd‘s Register. Essar Steel is the first Indian steel company to
receive an ISO 9001 and ISO 14001 certification for environment management
practices. Essar Steel utilizes Hot Briquetted Iron-Direct Reduced Iron (HBIDRI)
technology supplied by Midrex Technology, USA along with four 150 tonnes DC
electric arc furnaces imported from Clecim, France. The Hazira unit of Essar Steel
is equipped with 5.5 million tonnes per annum (MTPA) hot briquetted iron plant,
4.6 MTPA electric are furnace, 4.6 MTPA continuous caster, 3.6 MTPA hot strip
mill and 1.4 MTPA Cold Rolling Mill. During the year 2007-08, Essar was
awarded costs ISO/TS 16949 and OHSAS 18000 certification.
c) JSW STEEL LTD.
JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting
broadly of Iron Ore Beneficiation – Pelletisation – Sintering – Coke making – Iron
making through Blast Furnace as well as Corex process – Steel making through:
BOF- Continuous Casting of slabs – Hot Strip Rolling – Cold
Rolling Mills, JSW Steel has a distinction of being certified for ISO-9001:2000
Quality Management System, ISO-14001:2004 Environment Management System
and OHSAS 18001:1999 Occupational Health and Safety Management System.
The capacity as on 1.11.2007 stood at 3.8 MTPA and the capacity is likely to rise
to 6.8 MTPA by 2008 and further to 9.6 MTPA by 2010.
d) JINDAL STEEL & POWER LTD. (JSPL)
Jindal Steel & Power Limited is one of the fast growing major steel units in the
country. The Raigarh plant of JSPL has a present capacity of 1.37 million tonne
per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop (SMS), 1.0
MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt
captive power plant. During the year 2006-07, the company produced 1.19 million
tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million
tonnes of hot metal and 0.21 million tonnes of rolled products. The performance of
JSPL during April-October 2007-08 was 0.68 million tonnes of sponge iron, 0.72
million tonnes of steel products (slabs/blooms/billets/rounds), 0.68 million tonnes
of hot metal, 0.27 million tonnes of rolled products and 0.11 million tonnes of
plates
e) ISPAT INDUSTRIES LTD. (IIL)
IIL has set up one of the largest integrated steel plants in the private sector in India
at Dolvi in Raigad District, Maharashtra with a capacity to manufacture 3 million
tonnes per annum of hot rolled steel coils (HRC). The Dolvi complex also boasts
of an ultra-modern blast furnace (setup by a group company Ispat Metallics India
Ltd.) capable of producing 2.0 million tonnes per annum of Hot Metal/ Pig Iron, a
2.0 million tonnes capacity Sinter Plant (newly commissioned) and a DRI plant
with a capacity of 1.6 million tonnes per annum. The complex boast of an ultra-
modern captive jetty which meets the plants ‘requirement with regard to import of
various raw material. In the coming years, after augmenting necessary
infrastructure facility, it has planned to export the goods from the captive jetty.
Further, the complex envisages adding a 110 MW captive power plant (which will
use the Blast Furnace gas) in near future. The integrated steel plant is using the
converter-cum-electric arc furnace route (CONARC process) for producing steel.
In this project, IIL have uniquely combined the usage of hot metal and DRI
(sponge iron) in the electric arc furnace for production of liquid steel for the first
time in India. For casting and rolling of liquid steel, IIL has the state-of-the art
technology called compact strip production (CSP) process, which was installed for
the first time in India and produces high quality and specifically very thin gauges
of Hot Rolled Coils.
In India the industrial development began with the setting up of TATA Iron and
Steel Company (TISCO) at Jamshedpur in 1907. It started its production in 1912.
Then come up bourn pour and
Bhadravathi Steel plants in 1919 and 1923 respectively. It was, however, only after
the independence that the steel industry has been able to find its feet. Barring the
Jamshedpur plant of the TATA all are on public sector and looked after by the
Steel Authority of India Ltd (SAIL)
Bhilali and bokaro plants were set up with the soviet collaboration. Durgapur and
Rourkela came up with the British and German technologies know how
respectively.
Iron and steel industry is by nature a heavy industry, proximity to raw materials
and access to efficient transportation network is crucial to this industry. The
Chotanagpur plateau bordering West Bengal, Bihar, Orissa, and Madhya Pradesh,
therefore has been the natural core of this industry.
Besides, Iron and Steel industry, heavy engineering and machine tools industries
are the main dealers of maters. These industries have witnessed a phenomenal
growth and produce whole range of capital goods and consumer durables. The
capital goods are required for textiles industry, fertilizer plants, mining,
construction and agricultural machineries such as equipment for irrigation projects,
diesel engines, pumps and tractors, transport vehicles, etc. are being produced
indigenously.
The heavy engineering corporation Ltd. set up at Ranchi in 1958 fabricates huge
machines required for the iron and steel industry. Locomotive are manufactured by
three units, via, locomotive works, Chittarangan (West Bengal), Diesel locomotive
works, Varanasi (Uttarpradesh) And TELCO Jamshedpur.
Most metal manufacturing produce some hazardous waste. If use any solvents,
strong acid and alkaline solution, plating solutions, paints, cyanide solutions or any
solutions containing heavy metals, is it likely that operation generates hazardous
waste.
Facilities that generate hazardous waste might be subject to Resource
Conservations and Recovery Act (RCRA) requirement’s covering the generation,
transportation, and management of hazardous waste.
The business is classified under metal manufacturing are:
 Metal furniture works, shelves, lockers, cabinets and fixtures.
  Primary metal products
 Fabricated metal products
 Storage or primary batteries.
 Motor vehicles parts and accessories.
 Measuring, analyzing, or controlling instruments.
 Machinery, including electrical and electronic machinery, equipment
supplies.
Other metal item like clocks and watches; costume and precious metal jewelry;
needles pins and similar notions sing advertising displays; burial caskets;
silverware or stainless flatware.

The Indian steel industry was in doldrums in the late nineties. The steel demand
growth rate was stagnated below 4 percent. Almost all the majors steel makers in
India with the exception of TISCO were making losses because of excess capacity
and low price levels. Analysts have even written off some of the major steel
makers. But things changed with the boom in the domestic steel demand in early
2002. The Infrastructure initiative taken by the government like the Golden
Quadrilateral highways project, an increase in housing activity and an
improvement in the off take of consumer durables and passenger cars were the
main reasons behind the demand pickup. This demand growth helped steel makers
to raise prices. The steel prices of Cold Rolled steel and the Hot Rolled steel were
almost doubled at the end of 2003 compared with the 2001 price levels. The result,
the steel majors were out of red and the steel stocks were showing a sharp
upswing. Added to the domestic boom was the upsurge in Chinese steel demand.
The steel demand in China was growing at a rate of more than 10 percent per year
and accounted for around 90 percent of the growth in global steel demand in
2002and 2003. This proved to be a good export opportunity for Indian steel
makers. In the first six months of 2003 alone, Indian steel makers exported steel
worth $621 million, which is 137 per cent more than the total exports worth $262
million during the whole of 2002.For a moment it looked there was no stopping for
the Indian steel makers. But fortunes of Indian steel makers changed dramatically
by the end of 2003. The same upsurge in steel demand in China which helped the
Indian steel makers to boost exports played the spoilsport. Coking coal (coke) and
Iron ore are the main raw materials for integrated steel producers (ISP) which
account for more than forty percent of the steel output in India. As around 900 kg
of coking coal is required to make one tones of steel, coke is among the high-value
inputs for steel making. Among the ISPs, TISCO has captive coalmines to satisfy
its input needs. But the government owned integrated
steelmakers SAIL and RINL (Ashtray I spat Nigam Ltd-which owns Visage Steel
Plant) depend on imported coke. They import around 15 million tons of coke every
year. China is one of the main suppliers of coke along with Australia, New Zealand
and Canada. Due to the strong domestic demand, China has more or less stopped
the export of the coke. The stoppage of coke exports from China has created
supply vacuum. As a result the coking coal prices quadrupled in one-year, from
around US $ 100 per ton in early 2003 to US $ 400 in March 2004. This shortage
forced SAIL and RINL to cut their production at the peak of steel demand. For
example, SAIL's Rourkela Steel plan To reduce the daily hot metal production
from 5000 tons to 4100 tons in early 2004.
The Durgapur Steel plant cut average daily production of hot metal from 6000
tones’ to 5000 tones. If the integrated steel makers faced the problem of coke
shortage, the secondary producers faced the problem of steel scrap shortage.
Typically, the secondary steelmakers use steel scrap as the raw material. The
booming steel demand in China resulted in a supply shortage for steel scrap in
Asia. The rising prices of steel raw materials have increased the cost of production
by 30 to 40 percent for the Indian steel makers in early2004 compared with 2002
levels. This has severely affected the bottom line steel makers as they were not
able harvest on the rising steel demand and prices in the domestic market. Some of
the steel companies seem to be awakening to the reality. Jindal group recently
announced that it is merging two of its steel companies Jindal Iron and Steel
Company (JISCO) and Jindal Vijaya Nagar Steel (JVSL). JISCO is the
manufacturer of value-added steel products and JVSL is making steel from iron.
Media reports speculate that TISCO and Is pat Industries are looking for
acquisitions. But these activities are negligible compared with pace of
consolidations happening in the rest of the world. The biggies have to come
together to form steel giants, who can challenge the global stars like Arcelor or
Ispat International. The industry during the late 1950s the government of India
encouraged the growth of mini steel plants in private sector to overcome shortage
in constructional steel. On the basis of new liberalized economic policies of the
government, there is dynamic increase in investments in mini steel plant. New
industrial policy 1991 was modified from the time to time for the faster
industrialization. New liberalized import or export policy, abolition of industrial
licensing for steels, deregulation of distribution and pricing of iron & steel etc are
examples.
The recent development in steel making by means of coreless induction furnace
has created a revolution in India. The technological advancement of induction
melting apart from improving the
equipment efficiency and reliability has widened the horizons of process
application. External influence has also had a marked effect on its application.
These influences include in plant and external environment relations, energy
conservation and a more rigid control of metal specification. Above all, it
consumes less electrical power than arc furnace. Also it absorbs the cheapest steel
turnings and borings and light bundle scrap. It requires minimum working space,
less capital investment, high operational efficiency, low production cost and low
installation cost.
The induction melting plants are ideal for developing countries where steel scrap
generated in the country can be converted into Mild Steel Ingot. In India one can
find hundreds of such micro steel plants participating in contributing to the
country’s economic growth and creating jobs for the local.
Employment is expected to continue to decline due to consolidation and further
automation of the steelmaking process. Employers staffing production and
maintenance jobs increasingly prefer individuals with 2-year degrees in mechanical
or electrical technology. Opportunities will be best for engineers, computer
scientists, business majors, and skilled production and maintenance workers.
Establishments in this industry produce steel by melting iron ore, scrap metal, and
other additives in furnaces. The molten metal output is then solidified into semi
finished shapes before it is rolled, drawn, cast, and extruded to make sheet, rod,
bar, tubing, beams, and wire. Other establishments in the industry make finished
steel products directly from purchased steel.
The policy planning for steel in India commenced during the second and third five
year plans. The first three public sector steel plants i.e. Bhilai, Rourkela &
Durgapur were set up in collaboration with three different countries. Naturally, the
equipment and other hardware installed in these plants were conforming to the
standards of the respective countries. Subsequently, Bokaro was commissioned in
early seventies. It was rightly called the Swadeshi Steel Plants as a substantial
percentage of indigenous machinery and equipment was used in Bokaro. With
TISCO & IISCO already having their own sets of specifications, there was a huge
proliferation of types, and even designs leading to high inventories, problems in
maintenance and difficulties in procurement.
With a view to overcoming the above difficulties, the ministry of steel appointed a
panel of experts on Standardization of Steel Plants Equipment which
recommended creation of a permanent body of experts to carry out the
standardization work.
IPSS Secretariat was created in 1975 to fulfill this objective. Members of the IPSS
were SAIL, TISCO, HEC, BHEL, MECON, and DASTURCO. It started
functioning under the Indian Standards Institution (now Bureau of Indian
Standards) premises. In 1990, the whole activity was taken over by SAIL and
placed under centre of Engineering & Technology (CET). Subsequently,
Vishakhapatnam steel Plant (RINL) also joined this forum. In addition to the above
mentioned member organizations.
India has emerged as the fourth largest steel producing nation in the world, as per
the recent figures release by World Steel Association in April 2011. In 2010, India
was the 5th largest producer, after China, Japan, USA and Russia had recorded a
growth of 11.3% in steel production as compared to 2009. Overall domestic crude
steel production grew at a compounded annual growth rate of 8.4% during 2005-06
to 2009-10. The Indian steel industry accounted for around 5% of the world’s total
production in2010.
Total crude steel production in India for 2010-11 was around 69 million tones and
it’s expected that the crude steel production in capacity in the country will increase
to nearly 110 million tons by 2012-13. Further, if the proposed expansion plans are
implemented as per schedule, India may become the second largest crude steel
producer in the world by 2015-16. The demand for steel in the country is currently
growing at the rate of over 8% and it is expected that the demand would grow over
by 10% in the next five years. However, the steel intensity in the country remains
well below the world levels. Our per capita consumption of steel is around 110
pounds as compared to 330 Pounds for the global average. This indicates that there
is a lot of potential for increasing the steel consumption in India.
Immense growth potential in Indian Steel Sector
 Domestic crude steel production grew at a compounded annual growth rate
of 8.4% in the last few years.
  Crude steel production capacity of the country is projected to be around 110
million tons by 2012-13.
 222 Memorandum of Understandings (MOU) have been signed with various
states for planned capacity of around 276 million tons by 2019-20.
 Investments at stake are to the tune of $187 billion in the Steel sector.
 Increase in the demand of steel in India is expected to be 14% against the
global average of 5-6% due to its strong domestic economy, massive
infrastructure needs and expansion of industrial production.
 Demand of steel in the major industries like infrastructure, construction,
housing, automotive, steel tubes and pipes, consumer durables, packaging
and ground transportation.
 Target for $ 1 trillion of investments in infrastructure during the 12th Five
Year Plan.
 Infrastructure projects (like Golden Quadrilateral and Dedicated Freight
Corridor) will give boost to the demand in the steel sector in near future.
 Projected New Greenfield & up-gradation of existing Airport shall keep the
momentum up.
 Increased demand of specialized steel in hi-tech engineering industries such
as power generation, automotive petrochemicals, fertilizers etc.

India is presently the fifth largest producer of steel globally and is likely to become
the second largest producer by 2015 – 16. The Indian Iron & Steel industry can be
divided into 2 types of producers:
Integrated producers: who convert iron ore into steel. The major players are Steel
Authority of India – SAIL, Tata Iron & Steel Company Limited (TISCO) and
Ashtray I spat Nigam Limited (RINL).
Secondary producers: Companies that produce steel such as Essar Steel, Ispat
Industries and Lloyd’s steel are amongst the largest producers of steel.
Growth Potential
The steel industry employs people with many different skills and diverse
knowledge, who have the ability to work in multi-disciplinary teams. These
include metallurgy, materials science, physics, chemistry, engineering as well as
mathematics, IT, languages, business, accountancy and many other subjects.
Most steel companies can offer
challenging and rewarding
careers, often in an international
context with opportunities for
employees to quickly gain
experience, responsibility and
leadership. Training and
recruitment opportunities are
available across various
functions, including
manufacturing & production,
engineering & process
development, technology,
R&D, product development and
logistics, among others.
Strengths Weaknesses
1. Availability of iron ore and 1. Unscientific mining
coal 2. Low productivity
2. Low labor wage rates 3. Coking coal import
3. Abundance of quality dependence
manpower 4. Low R&D investments
4. Mature production base 5. High cost of debt
6. Inadequate infrastructure
Opportunities Threats
1. Unexplored rural market 1. China becoming net exporter
2. Growing domestic demand 2. Protectionism in the West
3. Exports 3. Dumping by competitors.
4. Consolidation
EXPECTED GROWTH
The International Iron and Steel Institute(IISI) has forecasted that the steel demand
will go of from 1.12 billion ton to 1.19 billion ton in 2008.And this will further
increase in a higher rate up to 2010.In India the growth will be more prominent
because of the growth in Real estate, Aviation, Manufacturing, Automobile
sectors.
FACTORS HOLDING BACK THE INDIAN STEEL INDUSTRY
The growth of the Indian steel industry and its share of global crude steel
production could be even higher if they were not being held back by major
deficiencies in fundamental areas. Investment in infrastructure is rising appreciably
but remains well below the target levels set by the government due to financing
problems. 19
a) Energy supply

Power shortages hamper production at many locations. Since 2001 the Indian
government has been endeavoring to ensure that power is available nationwide by
2012. The deficiencies have prompted many firms with heavier energy demands to
opt for producing electricity with their own industrial generators. India will rely
squarely on nuclear energy for its future power generation requirements. In
September 2005 the 15th and largest nuclear reactor to date went on-line. The
nuclear share of the energy mix is likely to rise to roughly 25% by 2050. Overall,
India is likely to be the world‘s fourth largest energy consumer by 2010 after the
US, China and Japan
b) Problems procuring raw material inputs

Since domestic raw material sources are insufficient to supply the Indian steel
industry, a considerable amount of raw materials has to be imported. For example,
iron ore deposits are finite and there are problems in mining sufficient amounts of
it. India‘s hard coal deposits are of low quality. For this reason hard coal imports
have increased in the last five years by a total of 40% to nearly 30 million tons.
Almost half of this is coking coal (the remainder is power station coal). India is the
world‘s sixth biggest coal importer. The rising output of electric steel is also
leading to a sharp increase in demand for steel scrap. Some 3.5 million tons of
scrap have already been imported in 2006, compared with just 1 million tons in
2000. In the coming years imports are likely to continue to increase thanks to
capacity increases.
c) Inefficient transport system

In India, insufficient freight capacity and a transport infrastructure that has long
been inadequate are becoming increasingly serious impediments to economic
development. Although the country has one of the world‘s biggest transport
networks – the rail network is twice as extensive as China‘s – its poor quality
hinders the efficient supply of goods. The story is roughly the same for port
facilities and airports. In the coming years a total of USD 150 bn is to be invested
in transport infrastructure, which offers huge potential for the steel industry. In the
medium to long term this capital expenditure will lay the foundations for seamless
reight transport.
RECENT FINACIAL CRISIS OF INDIAN STEEL INDUSTRY
We have witnessed in last few months, the unfolding of financial crises starting
from United States and expanding world over. The exact magnitude and extent of
the crises is fiercely debated among the financial experts. However, this real
impact on economy can easily be observed across many, if not all sectors. The
steel industry has not been spared with the impacts of the financial crises. The total
market valuation of Arcelor Mittal, Nippon steel and JEE has dropped by approx
$165 billion. The price of billet in Dubai market has dropped from its height of
$125/ton in June 2008 to a recent low of $350 /ton. One of the steepest drops
witnessed in recent history. The wide spread drop in demand for all types of steel
required companies to cur production globally. Arcelor Mittal, one of the largest
steel producers, alone has recently announced more than 30% reduction in
production. It is only human to be frustrated and uncertain of the future. However,
over long term, do we really need to be? We explored the steel production data
going back to 1900 during last 100 years the worst drop (13.52%) in steel industry
accrued between 1979-82.
This four year drop in global steel production is horrendous. However, if we look
at year over year growth changes in steel industry during a 100 year period from
1900 to 2000 a more optimistic picture emerges. There is not even one instance
when industry saw a consecutive four year of negative year over year growth. The
worst case situation is three years of declining year over year growth during 1930-
32, 1944-46, and 1980-82. Extending the past patterns of data to predict future is
fraught with peril. It is none the less an important reminder to us that during
tumultuous 100 year period the steel industry has been able to successfully weather
world wars ,recession and crises of all the genre. Steel is a resilient industry. It is
not to say that the current financial crises should not be taken seriously. It should
be however, if history holds the chances the impact of current crises extending
beyond 2009 are low. The leading steel companies should take these opportunities
to improve their operational efficiency and effectiveness to better prepare
themselves for impending growth in coming years.
 Chapter -5
Data analysis
&
Interpretation
1.AGE – WISE CLASSIFICATION OF DEALERS
Age group No. of Dealers % of dealers
Below 25 6 12
26 – 45 35 70
Above – 45 9 18
Total 50 100

70

12 18

Below 25 26-45 Above 45

Interpretation
From the above table and chart, it infer that Out of the 50 dealers surveyed, a good
majority of 70% belongs to the age group of 26-45 years, while 18% is above 45
years of age, only 12% is below 25 years of age.
2.EXPERIENCE – WISE CLASSIFICATION OF DEALERS
Experience No. of Dealers % of dealers
5-10 33 66
10-15 8 16
16-20 2 4
20 above 7 14
Total 50 100

70

60

50

40
Axis Title
30

20

10

0
5 to 10 yr 10 to 15 yr 16 to 20 yr 20 above

Interpretation

From the above table and chart, it infers that Of the 50 dealers surveyed, a good
majority of 66% has an experience of 5/10 years. 16% has (10/15 years, 14% of the
dealers has above 25 years of experience.
3.MONTHLY SALES TURNOVER OF DEALERS
Sales (intones) per No. of Dealers % of dealers
month
10-50 9 18
51-100 3 6
101-150 8 16
150 above 38 60
Total 50 100

60

50

40

30

20

10

0
10 to 50 51 to 100 101 to 150 150 above

Interpretation

From the above table and chart, it infer that Out of the 50 dealers surveyed a good
majority of 60% enjoys monthly sales turnover of above 200 tones, while 18%
makes only (10-50) tones a month.
4.RESPONSE FOR FASTEST MOVING STEEL BRAND
Brand of steel No. of Dealers % of dealers
TATA 42 84
JSW 1 2
KAMADENU 3 6
JINDAL 4 8
Total 50 100

Jindal
Kamadenu 8%
Jsw 6%
2%

Tata
84%

Intepretation

From the above table and chart, it infer that Out of the 50 dealers surveyed a good majority of
84% claims the fastest moving steel brand is Jindal while 8% says it is Kamadenu 6% claims it
as Jsw and 2%
5.SATISFACTION TOWARDS THE QUALITY OF TATA STEEL
Brand of steel No. of Dealers % of dealers
Tata 38 76
Jsw 2 4
Kamadenu 4 8
Jindal 6 19
Total 50 100

Jsw Tata Kamadenu Jindal

4%
18%

7%

71%

Interpretation

From the above table and chart, it infer that more than three – fourth (76%) of the
dealers appreciate that the quality of tata steel tops, other brands like
jsw,kamadenu and jindal. Next comes jindal felt by 19% of the dealers.
6. PRIMARY FACTORS INFLUENCING DEALERSHIP OF TATA STEEL
Factors No. of Dealers % of dealers
Credit period 7 14
Agency support 4 8
Advertisment 9 18
Profit margin 30 60
Total 50 100

Chart Title

60

50

40

30

20

10

0
credit period agency support advertisment profit margin

Interpretation

From the above table and chart, it infer that more than half (60%) of the dealers
prefer Tata steel because of the profit margin enjoyed, while advertising, credit
period and agency support follow the order with a marginal score 8% to 18%
7.SATISFACTION TO WARDS THE DEALER SERVICE PROVIDED BY
TATA STEEL
Satisfied No. of Dealers % of dealers
Yes 43 93
No 7 7
total 50 100

yes no

7%

93%

Interpretation

From the above table and chart, it infers that all the dealers are satisfied with the
dealer service provided by Tata steel.
8.SATISFACTION TOWARDS TATA DEALERSHIP
Satisfied No. of Dealers % of dealers
Yes 48 96
No 2 4
total 50 100

No
4%

yes
96%

Interpretation
From the above table and chart, it infers that good majority of 96% of the dealers
are satisfied in general about the dealership of Tata steel, while dissatisfaction
prevails with the remaining 4%.
9.INTEREST TOWARDS CONTINUING WITH TATA STEEL
DEALERSHIP
Factors No. of Dealers % of dealers
Yes 46 96
No 4 4
total 50 100

no
4%

yes
96%

Interpretation

From the above table and chart, it infers that all the 50 dealers have expressed their
interest in continuity with Tata steel dealership.
 Chapter -6
Findings ,
suggestions&
Conclusion
FINDINGS
 70% of the respondents belong to the age group of 30-45, and 66% of the
respondents have 5-10 years experience.

 60% of the respondents say monthly sales turn over is above 200 tones

 84% respondents claims that the fast moving Steel brand is tata

 Out of the 50 dealers surveyed a good majority (60%) appreciates the

pricing of Tata steel, and 50% of the respondents claim that the brand
availability at the time of order for Tata steel is good.

 88% of the respondents do not have any problem and 8% of the respondents
have packaging problem and 6 % of the respondents have delivery problem.

 More than half (60%) of the dealers prefer tata steel because of the profit
margin enjoyed, while advertising, credit period and agency support follow
the order with a marginal score 8% to 18%.

 More than three – fourth (76%) of the dealers appreciate that the quality of
tata steel tops, other brands like kamadenu, jsw, and jindal. Next comes
jindal felt by 19% of the dealers.

All the dealers are satisfied by the dealership support provided by tata steel, and
everyone is interested in continuing with the dealership of tata. And the overall
satisfaction stands at 96% among the dealers.

SUGGESTIONS AND RECOMMENDATIONS

 Direct selling to builders and construction companies should be intensified.

 Dealers can be asked to under take their own promotional activities like
regional advertising etc., on a cost sharing basis.

 Promoting the brand through wall paintings can bring more awareness.
Such responsibilities can be given to the dealers themselves.

 Although brand availability is better for tata steel, it should be

improved as only 50% of the dealers appreciate it. This naturally will lead
to better sales and satisfaction of the dealers.

CONCLUSION

Steel industry is getting its own importance because construction industry

determines the economy of the country to a major extend also, only if the
construction industry flourishes, other industries flourish and it improves the
buying power of the common class. There are number of operators in the industry,
and this study helps to know more about dealer satisfaction for tata steel.

From the study it can be concluded that the overall satisfaction for tata steel in
good tata steel stands best a quality also. Dealers are satisfied about the price,
quality,channel of distribution, dealer sales support etc.,

But focus needs to the placed on credit period, advertising and promotional
activities and to some extent on brand availability. This is sure to improve the
success of tata steel .