Online Marketing of Steel

Online Marketing of Steel: A Case Study of Metaljunction.
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EXECUTIVE SUMMARY
This project entitled Online marketing of Steel: A Case Study on Metaljunction.com and RS ! is undertaken as a partial completion for my M"A degree in Center for Management Studies#$O%C& $"hu'anes(ar& The main purpose of this project is to find out the process to sale the secondary steel products of Rourkela Steel "ooking System!. *uring the production of prime products some scraps and defecti)es items are generated in course of production. These are generally used 'y different small+ scale industries for different purposes. There fore these secondary products are to 'e marketed in )arious (ays and to all type of )enders# and it is )ery tough task for Rourkela Steel lant to satisfy all the )enders 'y gi)ing e,ual (eight age to all. This project makes a deep study on the system follo(ed for marketing in Rourkela Steel lant so as to make the company as (ell as the customers $small scale industries& 'eneficiary. Rourkela Steel lant# one of the pioneering units of SA-. is a hallmark of e/cellence in the steel+making scenario of -ndia today. All SA-. products including products of Rourkela Steel lants are marketed through it0s Central Marketing *epartment $CMO&. To ensure ,uality and prompt dispatch of the products# CMO keeps - touch (ith producing units as (ell as the transport and shipping sectors. lant through online auction and ho( this process is )ery helpful as compared to the pre)ious system that is Order
Online Marketing of Steel: A Case Study of Metaljunction.com
Marketing itself a tough jo'# (hich re,uires proper planning# logic and strategic to 'e applied at correct time and place. -t includes also the (ay of selling the products. All the things isre applied in RS also. The marketing department RS is a com'ination of Auction and disposal. Secondary Steel Stockyard -ron and Steel Secondary. Coal Chemicals# 1aste roducts# S The secondary products of RS can 'e di)ided into 2 categories. -ron 3 Steel. Coke 4raction 3 Coal Chemicals. Other 1astes. Selling of these items is not just selling goods 'ut catering to the demand of the customers 'y adopting )arious changing strategies 'ut al(ays taking C5STOM%R 4-RST!# and the a'o)e secondary products are not manufacturing (ith a predetermined target. Marketing of secondary ha)e accounted for a sale of (orth 226.78 crores in the year 8667+69. 4or selling the secondary items RS 'lended (ith the moderni:ation aspect and follo( the follo(ing. Online Auction Single 1indo( System. Online auction refer to those auction conducted through -nternet# and they can access the auction (ith a )alid pass(ord# (hich they (ill recei)e after fulfill the conditions. The 'idders of different locations simultaneously 'idding for the selected items in the auction. After only one 'idder $normally the 'idder (ho 'id the highest price& is a(arded all the units of the items 'eing auctions.
-n single (indo( system# it is possi'le for the 'idder to get all the material and finish all the processes# (hich are re,uired# at the SSS; itself. 1hich has reduced time and gi)ing the customer east in dealing
INTRODUCTION
Steel Authority of -ndia .imited $SA-.& only the name is sufficient gi)es a 'rief idea a'out the company. As (e kno( Sir <amshedij Tata so(ed the seeds of modern steel industry in =>6? (hen Tata -ron 3 Steel Company .td $T-SCO& (as esta'lished. - the year =>2> production of steel started in another pri)ate steel company called the -ndian -ron and Steel company# no( a su'sidiary of the Steel Authority of -ndia. After the independence $SA-.& Steel Authority of -ndia .imited 'ecame a major player of steel and iron and a major supplier to all the fields. After the glo'ali:ation SA-. ha)ing 'ig opportunity to e/pand their sales glo'ally and 'ecame one of the major supplier of Steel and -ron. As (e kno( that (hat e)er is made that must 'e for some purpose and that must 'e sold 'ut the process may 'e different from one another.
ONLINE MARKETING
Online Marketing is marketing on the -nternet. -t is a type of e+marketing# (hich in turn is a type of e+commerce. 1hile at first the confusion of e/periments# 'eta )ersions of (e'sites# search engines and other online de)ices cause marketers to consider this (orld of the -nternet unkno(a'le and perhaps too unpredicta'le# there is no( a gro(ing 'ody of (ork to (hich marketers are no( paying attention in order to de)elop online marketing programs. The most kno(n tools to marketers in the mid 8666s are currently tools grouped into 8 fields: online ad)ertising and search engine optimi:ation. %+marketing tools used to dri)e )isitors to a (e' site include.
!"r#$%e $& Online Marketing

1hen marketing online# the general four step process of marketing is still the guiding idea# in the online (orld the character of marketing 'ecomes more deeply a con)ersation 'et(een a marketer and a market+of+one a concept that is central to The cluetrain manifesto. -n such a role as a communicator# the online marketer is in a position to 'uild a(areness of her@his company or 'usiness in more personal terms than other(ise# and in so doing ena'les a more human con)ersation. Such con)ersations tend to 'e more (arts and all and should esta'lish confidence of the potential purchaser in the potential )endor Smith and Chaffey $866=& claim that -nternet technology can 'e used to focus marketing on the customer# (hile at the same time linking to other 'usiness operations so as to achie)e profita'ility. This can 'e done 'y
I'enti&(ing + the -nternet 'e used for marketing research to find out customersA needs and (ants. Anti)i#ating + the -nternet pro)ides an additional channel 'y (hich customers can access information and make purchases + understanding this demand is key to go)erning resource allocation to e+marketing.
Sati%&(ing + a key success factor in e+marketing is achie)ing customer satisfaction through the electronic channel# this raises issues such as is the site easy to use# does it perform ade,uately# (hat is the standard of associated customer ser)ice and ho( are physical products dispatchedB
*etractors of this concept of human+to+human contact through online con)ersations suggest that companies are going to 'e careful a'out marketing in this manner and perhaps (ill ne)er really ha)e honest and open con)ersations as the interests of companies and 'usinesses are not the interests of potential purchasers. The cluetrain manifesto allo(s for this type of thinking suggesting that 'usinesses (hen marketing in this manner need to 'e thinking a'out more than just making moneyC if a 'usiness is thinking only a'out making money# it (ill 'ecome apparent in close online con)ersations and the market (ill treat that 'usiness in (hate)er manner it may as markets can no( talk to each other through the same means marketers talk to potential customers.
Online Marketing A)ti+itie%

Smith and Chaffey $866=& descri'e fi)e key online marketing acti)ities $the A9SsA& (hich can 'e applied 'y an organisation to implement )arious online marketing tactics# the 9Ss are: Sell + Dro( sales $acts as 'oth a customer ac,uisition tool and a retention tool &. or more in+depth information a'out your products or the industry sector& S#eak+Det closer to customers 'y creating a dialogue# asking ,uestions through online research sur)eys and learning a'out customersA preferences through tracking + (hich content are people most interested in. Sa+e + Sa)e costs $of print and post if you ha)e a traditional offline it cane/tend to those customers you canAt afford to communicate (ith& Si,,le+ %/tend the 'rand online. -t keeps the 'rand Afront+of+mindA and helps reinforce 'rand )alues. Added )alue can also 'e deli)ered 'y informing and entertaining customers. Ser+e +Add )alue $gi)e customers e/tra 'enefits online such as an online e/clusi)e offer
Market Strateg( $& RS!

Today in this Dlo'al market marketing strategy plays a )ital role in 'usiness acti)ities. 1ith the effecti)e 'usiness strategies a 'usiness can achie)e it0s target# mission and )ision. - ha)e o'ser)ed (hile undergoing my summer training in Rourkela Steel lant under marketing department# that they ha)e adopted the most effecti)e method of selling their secondary product since =st April 8667 that is Single 1indo( System!. This system allo( to sale the secondary product 'y Online auction through M%TA.<5ECT-OE.COM! (hich is joint colla'oration of 96:96 'et(een FSA-.0 and FTATA0. The most interesting part of this system is that the payment and deli)ery process is done under one roof# the customer need not to go t(o different places to do the formalities. The customer can lift the material from the stockyard 'y paying the ,uoted price. "etter marketing policies are considered as the 'ack'one of the sales. Rourkela Steel lant $RS & is doing "usiness to "usiness! marketing and here 'etter marketing policies plays the role of life 'lood for the 'usiness# and after glo'ali:ation it0s 'ecame )ery necessary for e)ery 'usiness to gi)e more stress on marketing strategies so as to retain more and more customers. *uring my training process - ha)e o'ser)ed that the Single 1indo( System! is the 'est method of selling the secondary product of RS and this method is also helps to reduce the trading formalities and middleman in delay the trade process. This project report clearly e/plains the selling of secondary product of RS through M%TA.<5ECT-OE.COM!.
STEEL INDUSTRY
-ron (orking can 'e traced as far 'ack as 2#966 ".C. in Armenia. The created independently 'y Genry "essemer in %ngland and 1illiam Helly in the 5nited States during the =I96s# allo(ed the mass production of lo(+cost steelC the open+hearth process# first introduced in the 5nited States in =III# made it easier to use domestic iron ores. "y the =II6s# the gro(ing demand for steel rails made the 5nited States the (orldAs largest producer. The open+hearth process dominated the steel industry 'et(een =>=6 and =>J6# (hen it con)erted to the 'asic+ o/ygen process# (hich produces steel faster# and the electric+arc furnace process# (hich makes it easier to produce alloys such as stainless steel and to recycle scrap steel. The 'usiness of processing iron ore into steel# (hich in its simplest form is an iron+car'on alloy# and in some cases# turning that metal into partially finished products or recycling scrap metal into steel. The steel industry gre( out of the need for stronger and more easily produced metals. Technological ad)ances in steel making during the last half of the =>th cent. layed a key role in creating modern economies dependent on rails# automo'iles# girders# 'ridges# and a )ariety of other steel products. Dlo'al steel production has no( crossed the = 'illion tones mark due to an upturn in steel demand during the last t(o years on the 'ack of reco)ery in the glo'al economy. The reco)ery has largely 'een led 'y increased demand for steel in China as the country focuses on strong infrastructure led gro(th and prepares for Olympics 866I. There has also 'een partial reco)ery in key sectors such as housing# construction and automo'iles in the 5SA and %urope and the <apanese economy is also promising to turn around after a prolonged phase of recession. -n 8668 China 'ecame the largest producer and consumer of steel in the (orld. The current Chinese demand is estimated at o)er 896 MT. China is no( follo(ed 'y <apan and the 5SA in terms of production. "ut at the 'ackdrop of this reco)ery has 'een one of the most tur'ulent phases for the glo'al steel industry. The industry (ent through one of its most difficult phases 'et(een =>>? and 866=# as it faced se)ere recession in the glo'al economy leading to im'alance 'et(een capacity# demand and production. After the 'reakup of 5SSR many ne( countries turned into net e/porters from net importers and the (orld market had an e/cess capacity of 96 MT. Steel started getting traded at lo(er and lo(er prices. The Asian economic meltdo(n in
Online Marketing of Steel: A Case Study of Metaljunction.com =>>?+>I had a further impact on steel demand and supply. *emand in Southeast and 4areast (as reduced 'y 29+76 MT. <apan (as faced (ith a (eak ;en and lo(er demand. These e)ents coupled (ith similar de)elopments across the (orld led to a situation (here producers had much higher capacity than they could sell. rices of steel during this period touched a 86+ year lo( $(ith GR Steel going 'elo( K866 mark in 866=& and most producers made hea)y losses. Many companies (ere forced to shutdo(n leading to loss of many jo's. Ee( capacities 'ecame uneconomical and surplus. 4resh e/pansion plans had to 'e a'andoned as 4inancial sector (ithdre( support from the steel sector. The period also (itnessed major steel producing nations resorting to tariff and non+ tariff 'arriers to safeguard their domestic industry. ushed to the (all# in 866= ad)anced countries (ere forced to call for a glo'al agreement organi:ed 'y the O%C* to limit the (orld output of steel and stem the slide in steel prices. Only in 8668 the glo'al steel industry (itnessed a turnaround led 'y gro(th in China and prices of steel reco)ered to realistic le)els once again.
0$rl' Cr"'e Steel !r$'")ti$n

!eri$' =>>9 =>>J =>>? =>>I =>>> 8666 866= 8668 8662 !r$'")ti$n 1MT2 ?98 ?96 ?>> ??? ?II I7I I96 >68 =666 Gr$3t4 +6.96L +6.26L J.96L +8.I6L =.76L ?.J6L 6.86L J.=6L >.?6L
A look at the (orld steel production figures sho(s the difficult phase 'et(een =>>9 and 866= $(ith 8666 'eing the e/ception& and reco)ery that took place 8668 on(ards. Another important de)elopment in the glo'al steel market in the last fe( years has 'een the emergence of steel intensi)e technologies in )arious user industries leading to increased usage of steel. The consumption is sho(ing a shift from long products to flat products and special ,uality steels.
Online Marketing of Steel: A Case Study of Metaljunction.com Dlo'al steel trade has no( increased to 296 MT. The industry though continues to 'e fragmented (ith top 9 players accounting for less than 86L of the total industry capacity. Dlo'al steel manufacturers are increasingly reali:ing the need to ha)e alliances and consolidation acti)ity has picked up all o)er the (orld during the last 8+2 years. Today# Arcelor $%urope& is the largest producer of steel in the (orld follo(ed 'y .EM+-spat Droup# Eippon Steel# <%% Goldings# osco and Shanghai.
Market S)enari$
After li'erali:ation# there ha)e 'een no shortages of iron and steel materials in the country. Apparent consumption of finished car'on steel increased from =7.I7 Million Tonnes in =>>=+>8 to 27.2I> million tonnes in 8667+69. Steel industry that (as facing a recession for some time has staged a turnaround since the 'eginning of 8668. %fforts are 'eing made to 'oost demand. China has 'een an important e/port destination for -ndian steel. The steel industry is 'uoyant due to strong gro(th in demand particularly 'y the demand for steel in China.
!r$'")ti$n

Steel industry (as delicensed and decontrolled in =>>= 3 =>>8 respecti)ely. -ndia is the >th largest crude steel producer of steel in the (orld. -n 8667+69# production of 4inished $Car'on& Steel (as 76.699 million tones $ ro)&. ig -ron production in 8667+69 (as 2.88I Million Tones $ ro)&. The share of Main roducers $i.e SA-.# R-E. and TS.& and secondary producers in the total production of 4inished $Car'on& steel (as J=.9L and 2I.9L respecti)ely during the period April+4e'ruary# 866J.
.ast 7 years production of pig iron and finished car'on steel is gi)en 'elo(:
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T4e Gr$3t4 !r$&ile

Steel
The li'erali:ation of industrial policy and other initiati)es taken 'y the Do)ernment ha)e gi)en a definite impetus for entry# participation and gro(th of the pri)ate sector in the steel industry. 1hile the e/isting units are 'eing moderni:ed@e/panded# a large num'er of ne(@greenfield steel plants ha)e also come up in different parts of the country 'ased on modern# cost effecti)e# state of+the+art technologies. At present# total $crude& steel making capacity is o)er 27 million tonnes and -ndia# the I th largest producer of steel in the (orld# has to its credit# the capa'ility to produce a )ariety of grades and that too# of international ,uality standards. As per the ratings of the prestigious M 1orld Steel *ynamicsM# -ndian GR roducts are classified in the Tier -- category ,uality products N a major reason 'ehind their acceptance in the (orld market. %5# <apan ha)e ,ualified for the top slot# (hile countries like South Horea# 5SA share the same class as -ndia.
I7#a)t
There (ill 'e no changes in the e/cise and customs duty for steel companies. The rationali:ation of the e/cise duty to a single central )alue added ta/ (ill ha)e no impact on the steel industry. The current e/cise duty of =JL for steel products (ill remain. The customs duty for steel products (ill continue at the present rates. The mo)e to ta/ the steel companies at factory prices rather than at the stockyards (ill ha)e a positi)e impact on companies like SA-. and Tisco# (hich ha)e )ery long lead distances. -nduction furnaces and re rollers (ill no( 'e co)ered under ad+)alorem C%EOAT at =JL$(ith mod)at 'enefit&. This (ill help the smaller players in the steel industry. The spending on rural housing is e/pected to mo)e up# 'ut as the correlation 'et(een steel usage and construction is lo(# (e do not e/pect the mo)e to ha)e any major positi)e impact for the steel industry. 1ith the e/cise duty on scrap going up to =JL# the position of sponge iron players can 'e e/pected to impro)e.
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Online Marketing of Steel: A Case Study of Metaljunction.com C$7#an( I7#a)t C$7#an( Na7e SA-. O+erall I7#a)t ositi)e Rea%$n% The mo)e to ta/ the goods at factory gates rather than at stock yards (ill ha)e a positi)e impact on the company The mo)e to ta/ the goods at factory gates rather than at stock yards (ill ha)e a positi)e impact on the company Eo change in %* Eo change in %* Eo change in %*
T-SCO %SSAR ST%%. <-SCO <OS.
ositi)e Eeutral Eeutral Eeutral
D"t( Rate%
C"%t$7% '"t(
C$77$'it( Na7e GR Coils CR Coils Semis ig -ron Sponge -ron Melting steel scrap Coking coal P=8L ash Coal@coke .ongs $gal)anised& 2L =6L 26L 155/855 26L 29L 89L 86L 86L 155582666 $e/isting& 266682661 $proposed& 89L 29L 89L =9L 89L 9L 9L =9L 29L 89L 29L 89L =9L 89L 9L 9L =9L 29L
E9)i%e 1$nl( :a%i) '"t(2

C$77$'it( Na7e Steel Nsemis and finished -tems. -ron ore Scrap 155/855 =9L 155582666 $e/isting& 266682661 $proposed& =JL =JL 6L IL 6L =JL
IL
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STEEL AUT;ORITY O< INDIA LIMITED

Steel Authority of -ndia .imited $SA-.& is the leading steel+making company in -ndia. -t is a fully integrated iron and steel maker# producing 'oth 'asic and special steels for domestic construction# engineering# po(er# rail(ay# automoti)e and defense industries and for sale in e/port markets. Ranked amongst the top ten pu'lic sector companies in -ndia in terms of turno)er# SA-. manufactures and sells a 'road range of steel products# including hot and cold rolled sheets and coils# gal)ani:ed sheets# electrical sheets# structural# rail(ay products# plates# 'ars and rods# stainless steel and other alloy steels. SA-. produces iron and steel at fi)e integrated plants and three special steel plants# located principally in the eastern and central regions of -ndia and situated close to domestic sources of ra( materials# including the CompanyAs iron ore# limestone and dolomite mines. SA-.As (ide ranges of long and flat steel products are much in demand in the domestic as (ell as the international market. This )ital responsi'ility is carried out 'y SA-.As o(n Central Marketing Organi:ation $CMO& and the -nternational Trade *i)ision. CMO encompasses a (ide net(ork of 2I 'ranch offices and 7? stockyards located in major cities and to(ns throughout -ndia. 1ith technical and managerial e/pertise and kno(+ho( in steel making gained o)er four decades# SA-.As Consultancy *i)ision $SA-.COE& at Ee( *elhi offers ser)ices and consultancy to clients (orld+(ide. "yproducts and Chemicals are marketed directly 'y the steel plants. SA-. has a (ell e,uipped Research and *e)elopment Center for -ron and Steel $R*C-S& at Ranchi# (hich helps to produce ,uality steel and de)elop ne( technologies for the steel industry. "esides# SA-. has its o(n in+house Center for %ngineering and Technology $C%T&# Management Training -nstitute $MT-& and Safety Organi:ation at Ranchi. Our capti)e mines are under the control of the Ra( Materials *i)ision in Calcutta. The %n)ironment Management *i)ision and Dro(th *i)ision of SA-. operate from their head,uarters in Calcutta. Almost all our plants and major units are -SO Certified.
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1ith the capacity of =8 million tones $MT& of crude steel# the Steel Authority of -ndia .imited $SA-.& is -ndia0s largest and among the leading steel producers in the (orld (ith a turno)er of o)er Rs 2=#I66 Crores. -n the -nternational steel market SA-. has earned a reputation for itself as consistent and relia'le supplier of (orld class ,uality products. SA-. products has 'een (ell accepted in more then ?9 countries in the (orld# helping the company (in recognition as major foreign e/change earner for the country. Doing 'eyond steel production # SA-. has formed se)eral joint )enture in different areas ranging from po(er plants to e+commerce. Three are (ith ET C and *OC for taking care of steel plants capti)e po(er re,uirements# one (ith 5SQ engineers and consultants# a su'sidiary of 5S steel corporation# for prompting -T in steel sector# and one (ith "ansal mechanicals (orks for a ser)ice center at "okaro. SA-. and TATA steel ha)e also jointly set up metaljunction.com related areas. The SA-. corporate office in Ee( *elhi manages and o)erseas these )ast 'usiness. "esides the sales chairman0s Sectt.# corporate office comprises of the company0s finance# operation# commercial# personnel and project directorates. Today# the accent in SA-. is to continuously adapt to the competiti)e the 'usiness en)ironment and e/cel as a 'usiness organi:ation 'oth (ithin and outside -ndia. )t. .td# company managing e+ commerce acti)ities in steel and
Central Marketing Organi,ati$n

All SA-. Fs products e/cept alloy# special steels and stainless steels are marketed directly 'y CMO through units in co+ordination (ith rail# roads and shipping sector to ensure ,uality and promote dispatch of products. The main functions of CMO are as follo(s. Marketing of Steel products and fertili:ers. roduction planning and dispatch co+ordination (ith plants. %/port of steel. -mport of coal and other consuma'les. Market research.
Online Marketing of Steel: A Case Study of Metaljunction.com -nformation System.
=$int Vent"re
SA-. has promoted joint )entures in different areas ranging from po(er plants to e+ commerce.
NT!C SAIL !$3er C$7#an( !+t> Lt'

Set up in March 866=# this 96:96 joint )enture 'et(een SA-. and the Eational Thermal o(er Corporation $ET C& operates and manages the Capti)e o(er lants+-- of the *urgapur and Rourkela Steel lants (hich ha)e a com'ined capacity of 876 M1.
?$kar$ !$3er S"##l( C$7#an( !+t> Li7ite'

This 96:96 joint )enture 'et(een SA-. and the *amodar Oalley Corporation formed in <anuary 8668 is managing the 268+M1 po(er generation and =II6 tonnes per hour steam generation facilities at "okaro Steel lant.
?4ilai Ele)tri) S"##l( C$7#an( !+t> Li7ite'

Another SA-.+ET C joint )enture on 96:96 'asis formed in March 8668 manages the ?7 M1 o(er lant+-- of "hilai Steel lant (hich has additional capacity of producing =96 tonnes of steam per hour.
UEC SAIL In&$r7ati$n Te)4n$l$g( Li7ite'

This 76:J6 joint )enture 'et(een SA-. and 5SQ %ngineers 3 Consultants# a su'sidiary of the 5S Steel Corporation# promotes information technology in the steel sector.
UEC SAIL In&$r7ati$n Te)4n$l$g( Li7ite'

This 76:J6 joint )enture 'et(een SA-. and 5SQ %ngineers 3 Consultants# a su'sidiary of the 5S Steel Corporation# promotes information technology in the steel sector.
1*
Metal@"n)ti$n>)$7 !ri+ate Li7ite'

A joint )enture 'et(een SA-. and Tata Steel on 96:96 'asis# this company promotes e+ commerce acti)ities in steel and related areas.
SAIL8?an%al Ser+i)e Center !+t> Lt'>

SA-. has formed a joint )enture (ith "M1 industries .td. on 76:J6 'asis to promote a ser)ice centre at "okaro (ith the o'jecti)e of adding )alue to steel.
N$rt4 ?engal D$l$7ite Li7ite'

A joint )enture 'et(een SA-. and 1est "engal Mineral *e)elopment Corporation ltd on 96:96 'asis (as formed for de)elopment of <ayanti *olomite *eposit# <alpaiguri for supply of *olomite to *S and other plants.
R$7elt8SAIL 1In'ia2 Lt'

A joint )enture 'et(een SA-.# Eational Mineral *e)elopment Corporation $EM*C& and Russian promoters for marketing Romelt Technology de)eloped 'y Russia for reducing of iron 'earing materials# (hich is carried out (ith car'on in single stage reactor (ith the use of o/ygen.
O3ner%4i# an' Manage7ent

The Do)ernment of -ndia o(ns a'out IJL of SA-.As e,uity and retains )oting control of the Company. Go(e)er# SA-.# 'y )irtue of its MEa)ratnaM status# enjoys significant operational and financial autonomy.
1-
!RODUCT 0ISE CLASSI<ICATION

Se7i% L$ng !r$'")t% ?l$$7%A ?illet% B Sla:%> Str")t"ralA Crane rail%A ?ar%A R$'%A Re:ar% B 0ire R$'%> ; R C$il%A S4eet%A Skel# !lat%A C R C$il% B S4eet%A G C <lat !r$'")t% T":"lar !r$'")t% Rail3a(% !r$'")t% S4eet%C G ! S4eet% B C$il%A Tin !late%A Ele)tri)al Steel> !i#e%> Rail%A 04eel%A A9le%A 04eel Set%>
!LANT 0ISE CLASSI<ICATION

?l$$7%A ?illet% B Sla:% ?ea7%A C4annel%A Angle% Crane Rail%A !late%A Rail%A !ig Ir$nA C4e7i)al% B <ertili%er% ; R C$il% B S4eet%A !late% C R C$il% B S4eet%A !late%A C R C$il% B S4eet%A G ! S4eet% B C$il% C G C S4eet%A !i#e%A !ig Ir$nA C4e7i)al% B <ertili%er%> ?l$$7%A ?illet% B Sla:%A =$i%t%A C4annel%A Angle%A ?ar%A R$'% B Re:ar%A Skel#A 04eel%A A9le%A 04eel% Set%A !ig Ir$n%A C4e7i)al% B <ertili%er%> ;R )$il%A !late%A CR )$il% B %4eet%A G!C GC S4eet%A Tin !late%A Ele)tri)al SteelA !i#e%A !ig Ir$nA C4e7i)al% B <ertili%er%>
?4ilai Steel #lant
?$kar$ Steel !lant
D"rga#"r Steel !lant
R$"rkela Steel !lant
1.
Ma@$r Unit% $& SAIL

ST%%. .AETS
"hilai steel lant "okaro Steel lant *urgapur Steel lant Rourkela Steel lant
.OCAT-OE
"hilai # hhattisgarh. "okaro# jharkhand *urgapur#1est "engal Rourkela # Orissa
S %C-A. ST%%. .AETS

Alloy Steel lant Salem Steel lant Ois)es)araya -ron3Steel .td *urgapur#1est "engal. Salem# Tamil Eadu. "hadra)ati# Harnataka.
S5"S-*-AR-%S
-ndian iron 3 steel .td. Maharashtra %lektrosmelt .td. "hilai O/ygen .imited $"O.&. "urnpur#1est "engal. Chandarpur# Maharashtra. Ee( *elhi.
1/
OT;ER UNITS
Ra( Material *i)isions $RM*& Central Marketing Organi:ation $CMO& Sail Consultancy *i)ision $SC*& Research and *e)elopment Center 4or -ron and Steel $R*C-S& Center 4or %ngineering and Technology $C%T& Management and Training -nstitute $MT-& Sail Safety Organi:ation $SSO& %n)ironment Management *i)ision $%M*& Dro(th *i)ision $D*& Central o(er Training Organi:ation $C T-& Central Coal Supply Organi:ation $CCSO&
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ROURKELA STEEL !LANT

RO5RH%.A RRourkelaS # city $=>>= pop. 2>I#IJ7&# Orissa state# % central -ndia# at the confluence of the Hoel and .ankh ri)ers. The city is 'uilt around a large iron and steel plant. Other products are hea)y machinery# fertili:ers# and chemicals. The Do)t. of -ndia under the a'lest leadership of the then rime Minister t. <a(aharlal Eehru# decided to set up large Steel lants 'y the Do)t. itself after the general election of =>98. Rourkela and its adjacent areas are rich in iron ores# manganese# dolomite and limestone0s# the 'asic materials for production of iron and steel. Considering Rourkela to 'e 'est place for a steel plant# the sur)ey (ork (as completed in the year =>97. The infrastructure (ork of the plant (as accomplished in 'et(een =>99 and =>J6. Almost thirty+ t(o )illages (ere alienated and the people of the )illages (ere resettled. The Repu'lic of Dermany e/tended technical kno(s ho( for the construction of the steel plant and the plant (as considered a joint )enture of the Do)ts. Of -ndian and Dermany. The initial production limit of one million tones steel per annum (as raised to =.I million tones in the su'se,uent years. The internationally reputed firms like the Hrrups# *imag# D.G.G. Sag# Scholomen# Cemens and Ooist %ipine etc. Supplied different machines and machinery parts to the plant at the 'eginning stage. The Rourkela Steel lant took the part of leadership in the process of steel production under ..*. techni,ues. -t could also esta'lished itself as one of the premier industries of the (orld under the system of 'asic o/ygen con)erter. The e/tension (ork of the plant (as o)er 'y the year =>JI. A circular (elding pipe plant and special plate plant (ere set up in the decade of se)enties for production of different ready+ made materials. To a)oid scarcity of po(er supply the plant set up a po(er plant 'y itself (ith a capacity of =86 M.1. The po(er plant is a'le to cater the re,uirement of po(er supply from the year =>IJ. The moderni:ation of Rourkela steel plant (as 'egun in the month of August =>II (ith a )ie( to producing ,ualitati)e materials and esta'lishing its importance in the (orld market. The process of moderni:ation entailed an e/penditure outlay of rupees 7966 cores. Some nine main packages including some ancillary packages (ere e/ecuted at the first phase. This phase re)amped the process of supply of ra( materials# ne( o/ygen plant# impro)ed techni,ues in 'last furnaces# selling of dolomite plant# Cast house slag glandular plant# supply of ra( materials t(o num'er of Sintering plant and coal handling plants etc. 26
Online Marketing of Steel: A Case Study of Metaljunction.com Similarly (ith the implementation of some sophisticated systems in the second phase of moderni:ation Rourkela Steel lant could get the status s,uo of a modern industrial unit in the (orld.The materials 'eing produced from the Steel lant are steel in gots# iron sheets# ultra thin plates# electric steel plates# cold rolled coils# hot rolled coils# tin plates and different kinds of pipes etc. The 'yproducts of the plant are fertili:er Sona!# 'itumen and 'enjol etc. Rourkela Steel lant is planning to dou'le its steel making capacity to 2.9 m tonnes in the ne/t fi)e years. Rap0s current steel making capacity is a'out =.I mt. This (as announced 'y RS 0s Managing *irector# Sanak Mishra recently.
S#e)ial <eat"re% O< RS!

=. 8. 2. =st u'lic Sector integrated Steel plant to 'e set up in the country. %/clusi)ely producing flat products. 4inest lant in -ndia to adopt ..*. rocess of Steel making. grade electrical sheet. 9. J. ?. -t has a special plate plant (here special alloy Steel lates are shaped to different shapes as per re,uirement in the defence sector. RS has the distinction of 'eing the uni,ue Steel lant in -ndia (ith an integrated 4ertili:er Comple/. -t has t(o capti)e po(er plants $C & (ith a generation capacity of around =86 m(.
7. -t has got an electrical sheet mill capa'le of producing 'oth *ynamo and Transformer
!RODUCT8MIX late Mill lates GR lates GR Coils %R1 ipes CR Sheets 3 Coils Dal)ani:ed Sheets $D 3 DC& %lectrolytic Tin+ lates Silicon Steel Sheets T$tal Salea:le Steel
TONNESCANNUM 8#>>#666 >8#966 2#>I#666 ?9#666 7#22#666 =#J6#666 I9#666 ?2#966

=J#?=#666
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!RODUCTS USES
Mainly (e ha)e identified certain products# (hich are primarily produced 'y RS . These products are generally are %R1 ipes# CREO Sheets# S1 ipes# etc. follo(ing are certain items and rele)ant use in different sectors. Steel as a 'asic 'uilding 'lock (ill determine gro(th o)er se)eral other sectors. %)ery attention# thus# needs to 'e gi)en to stepping up capacity for steel. There is an urgent need to 'alance the interests of the producers and the consumers of steel On flat products (idely used 'y a )ariety of consumer industries# the increase has 'een 'y around J6 per cent N from around Rs.=7# 666 to o)er Rs.88#666 per tones. On certain special steels used 'y automo'ile component manufacturers# the increase has 'een e)en steeper# 'y around ?9 per cent. rices of steel used in the construction industry ha)e increased from around Rs.=9# J66 per tones to around Rs.82#666 per tones during Eo)em'er 8668 N August 8662. 1ith the pressure on completing construction (ithin the stipulated time# on grounds of penalties for delays# this segment depends on the market for its daily re,uirement and hence# seems to suffer the most. GR Coils are used in num'er of engineering application. These coils are used in tu'e making 3 cold rolling of lo( car'on **3%** ,uality GR Coils are also used like telephone poles and also used in rail(ay coaches and auto poly components. S1 ipes are also used in transportation of crude oil# natural gas. 5sed in (ater supply# 3ci)il engineering piling. Cold Rolled Coils @ Sheets are the primary products of RS and used making steels furniture# refrigerator 'odies# automo'ile 'odies# rail(ay coaches# etc. Dal)ani:ed sheets are used in roofing paneling# industrial sheeting# air conditioning ducts and in structural constructions. %lectrolytic tin plates a)aila'le in e,ual and differential coating range from 9.Jgm@m8 coating (eight and )ariety suita'le for manufacture of 'eautifully printed and plan containers for packaging all kinds of products.
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MA=OR UNITS O< ROURKELA STEEL !LANT

Ra( Material RS
The ra( material di)ision $RM*& of SA-. (as found in the year of =>I> (ith its head,uarters at kolakata 3 all the capti)e mines of the steel plants in the eastern sector (ere gradually 'rought under it0s control to rationali:ed ra( materials supply to deferent steel plants. A SA-. spokesman said the production 'y RM* (as =8.2 per cent higher o)er the pre)ious year. Total production of iron ore from Hiri'uru# Meghata'uru# "olani# "arsua# Halta# Dua and Manoharpur in Chiria crossed =2.7J million tonne during the year. *uring the current financial year# RM* aims to step up production to =I million tonne to meet the enhanced iron ore re,uirements for SA-. units in "okaro# *urgapur# Rourkela and the --SCO steel lant.The com'ined target for hot metal production 'y the steel plants of SA-. e/cept "hilai is =6 million tonne.
Sail Ir$n Ore Mine% !r$&ile

Mines Hiri'ru Meghahatu'uru "olani "arsua Halta State <harkhand <harkhand Orissa Orissa Orissa Capacity $MT ;& 7.89 7.26 2.66 8.6= 6.I6
RM* has a centrali:ed (orkshop at "olani for repair@o)erhauling of engines 3 transmission of hea)y earth mo)ing machinery at mines. "esides the a'o)e. RM* has three customers ser)ice office at Rourkela# *urgapur and "okaro for co+ordination (ith the steel plants. T(o liaison are also maintained at "hu'anes(ar and Ee( *elhi for 'etter co+ordination (ith Do)ternment agencies and other statutory authorities.
COKE OVENS
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Online Marketing of Steel: A Case Study of Metaljunction.com The 7.9 MT coke o)ens produce metallurgical coke to feed the 'last furence. The coke o)en are e,uipped (ith (agon tripplers# automatic+ handling facilities# coal+'lending pro)ision# coke to feed the crushing and coke screening arrangements. The partial 'ri,uetting of coal change is an effecti)e process that ensures significant impro)ement in coke strength.
?LAST <URNACE
The "last furnace iron making process 'asically consists of the con)ersion of iron o/ide to iron in li,uid form. There are four 'last furnaces# (hich pro)ide the re,uired hot metal for steel production. "last furnace =#8 3 2 ha)ing the capacity of =666 tones (hile the capacity of 7th one is a'out =966 tones. This re,uires reductant for reduction of iron o/ide and heat for the a'o)e reduction reaction to take place and for melting the products of smelting. The primary source to fulfill 'oth these re,uirements is car'on $in the form of coke&# (hich shares major portion of cost of hot metal production.
STEEL MELTING S;O!S 1SMS2 SMS+Apart from a computeri:ed .* process# (hich has enhanced shop capa'ility# the .A Oacuum Metallurgy Techni,ue# has 'een also adopted for secondary refining of steel. This facilitates production of special steels for application in electrical machines# pipe making# tinplate# 'oilers and auto chassis mem'ers. The shop (as originally designed to produce ingots for con)ersion to sla's through the Sla''ing Mill route. Go(e)er# after the discontinuation of the ingot route# the SMS+produces sla's through casting machine.
SMS+-The Shop is pro)ided (ith the latest steel making# secondary refining $ladle furnace and argon rinsing& facilities and t(o single strand sla' casters to produce =#299#666 tonnes of steel sla's annually.This is the 'iggest unit set up under the moderni:ation programme. The shop is pro)ided (ith automation through three le)els of computerised control# .* gas cleaning and reco)ery# po(er distri'ution system# (ater and utility ser)ices.
!LATE MILL
This 2.= MT (ide# 7 high re)ersing mill is e,uipped (ith on+line thickness measurement facilities. 4acilities for inspection 'y customerAs nominees# on+line ultrasonic testing and checking ensure the ,uality of plates dispatched to the customers. A ne( (alking 'eam type furnace (ith a capacity of =66 Tonnes@hour (as installed during the moderni:ation programme for sla' heating. The mill has a production capacity of 8#>>#666 Tonnes per annum.
;OT STRI! MILL

The facilities of the =.776 Million Tonnes per annum mill (ere augmented during moderni:ation (ith the installation of: T T(o ne( (alking 'eam type reheating furnace $889 T G& T Roughing@si:ing stand RoOo (ith automation T Automated coil 'o/ T Uuick roll change system in Roughing Stand+= and finishing mills T Coil marking# sampling and con)eying systems.
COLD ROLLING MILL

This features a modern 9+stand tandem mill and a 7+high =?66+mm re)ersing mill. The tandem mill is e,uipped (ith automatic gauge control# /+ray gauge# data logging.-t produces a'out J#?I#666 tones per annum of cold rolled sheet.
ELECTROLYTIC TINNING LINE

The continuous electrolytic tinning line produces a shining tin+coated surface in a )ariety of coating thickness. The tinplate shearing lines are e,uipped (ith sensiti)e pinhole detectors and an automatic sorting system.
DA.OAE-S-ED .-E%S
T(o continuous hot+dip gal)ani:ing lines are e,uipped (ith jet+coating facilities. There are 8 multi+roller+corrugating machines# (hich produce corrugated sheets.
2*
SILICON STEEL MILLS

This unit produces steel for the electrical industry through )arious operations carried out in sophisticated# continuous@semi+continuous processing lines and a 7+high reduction mill. Ad)anced process control and product testing ,uality ensure product ,uality.
!I!E !LANTS
A highly sophisticated Spiral 1elded ipe lant $S1 & is e,uipped (ith su'merged arc (elding process and produces large diameter pipes. Gydrostatic pressure testing# ultrasonic testing and eddy current testing are some of the features# (hich ensure ,uality control. The %lectric Resistance 1eld ipe lant $%R1 & caters to the smaller diameter pipe consumers. This plant has 'een recently upgraded to ena'le it to produce A - grade pipes.
TRA<<IC B RA0 MATERIAL

The Traffic and Ra( Material department deals (ith procurement and supply of ra( materials to )arious user departments# internal mo)ement of in+process and other material from one unit to another and dispatch of finished products to outside parties or SA-. stock yards in rail(ay (agons. The department maintains 296 (agons# 76 locomoti)es and a net(ork of 876 kilometres rail tracks all o)er the plant.
ENVIRONMENT MANAGEMENT
RS has in)ested a'out Rs. 276 crores on en)ironment protection measures in >9 schemes# since =>>6+>=."y formulating and implementing a strategy of 2+R0s namely# Re+use# Recycle and Reduce# RS is no( a'le to achie)e the t(in o'jecti)es of generating resources as (ell as controlling pollution. Since its inception# RS has so far planted 2? lakh saplings in and around the steel city and in 8669 RS has planted ?6#666+sapling in and around Rourkela.
COM!UTERISATION
Rourkela Steel lant has introduced an on+line system named as roduction lanning and Control System $ CS&# (hich connects )arious functional departments of RS into a single net(ork system. *e)eloped and e/ecuted in+house 'y a team of dedicated professionals of
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Online Marketing of Steel: A Case Study of Metaljunction.com the -nformation Technology and roduction lanning and Control *epartment (ith the
support of the 1orks and rojects units.
;UMAN RESOURCE DEVLO!MENT CENTER 1;RDC2

The Guman Resources *e)elopment Centre of Rourkela Steel lant (as set up in the late =>96s and it consists of the Management *e)elopment rogramme (ing# auditoriums# (ell e,uipped (orkshops# skill up gradation shops# lecture halls for act apprentices and a (ell+ e,uipped li'rary on a plethora of Technical and Managerial su'jects.
CENTRAL !O0ER TRAINING INSTITUTE 1C!TI2

The Central o(er Training -nstitute $C T-& has facilities to impart training in operation and maintenance of po(er plants and po(er distri'ution systems. The -nstitute conducts training largely for operation and maintenance personnel of SA-. capti)e po(er plants and o(er *istri'ution Eet(ork departments.
!RE8TREATMENT O< ;OT METAL

Got metal from 'last furnaces is treated to remo)e undesired elements like sulphur # silicon or phosphorous 'efore 'eing transformed to steel. *esulphurising agents are applied to reduce sulphur content of the metal.
<ERTILIDER !LANT
The 4ertili:er lant (as set up in the year =>J7 (ith a )ie( to utili:ing the residue of the steel plant and the reutili:ation of the chemicals. There is a small hill called Sona ar'at! to(ards the south of Rourkela Steel lant. The 4ertili:er lant and the 4ertili:er To(nship (ere set up adjacent to the hill. The plant (as set up 'y the -ndian 4ertili:er Corporation .td. and (as handed o)er to the Steel Authority of -ndia .td. in the year =>?2. An impro)ed ,uality of fertili:er called Sona! $Eitrogen& is 'eing produced from the plant. The Rourkela Steel lant has pro)ided residential ,uarters and other accommodation facilities to the employees of 4ertili:er lant.
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ROURKELA STEEL !LANT MODERNISATION

This project (ith anticipated cost of Rs. 9687.86 crores (as appro)ed in <uly# =>II. The original date of commissioning (as April =>>9. The no( anticipated date of commissioning for all packages is March# 8666 and has already suffered a delay of 9> months. This project is di)ided in t(o phases (ith hase+- scheduled for commissioning in <uly# =>>2 and hase+-consisting of 9 glo'al 3 =6 indigenous packages. The hase - and almost all of the hase 8 packages ha)e 'een commissioned. Out of 9 glo'al packages# Concast lant package# "asic O/ygen furnace# Sinter plant --# plate mill and reheating furnace Eo.J ha)e 'een commissioned. 1ork on reheating furnace Eo. 9 has 'een delayed and it (ill 'e completed 'y March# 8666. 4or all practical purposes# modernisation project of Rourkela Steel lant is complete in all respects and production o'jecti)es achie)ed. The e/penditure# incurred till date is Rs. 727I.72 crores. The main constraints e/perienced $in the early years of its implementation& includeC the lack of full mo'ilisation of resources 'y contractors and late deli)ery of e,uipment at site# and need to (ait for shutdo(ns# for carrying out project (ork in an operating plant.
Re)$r' #r$'")ti$n in R$"rkela Steel !lant

The Rourkela Steel lant $RS &# a unit of the pu'lic sector Steel Authority of -ndia .imited $SA-.& achie)ed a record high in the production of hot metal touching =.?I million tonne. 1ith =.J8 MT total salea'le steel# the production of the Rourkela Steel lant $RS & has registered its 'est+e)er annual performance since inception in all its major areas during last fiscal. According to official sources# the despatches of salea'le steel during the period under re)ie( registered all time 'est figure of =.J MT. The company also sho(s significant gro(th o)er 8667+69 in the manufacture of products like plate mill plates $=2 per cent&# hot rolled plates $86 per cent&# gal)anised sheet $86 per cent&# cold rolled coil $=6 per cent& and a spiral (ield pipes $?J per cent&. The steel plant registered the highest e)er con)erter lining life of 2#266 heats in steel melting shop+-- and =#=66 heats in steel melting shop+-. .o(est e)er energy consumption of I.7I D Cal per tonne of crude steel (as also achie)ed during the year.
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Online Marketing of Steel: A Case Study of Metaljunction.com The specific (ater consumption and coke rate also came do(n 'y si/ per cent and four per cent respecti)ely during the year# all these factors resulted in 'ringing do(n its cost of production.
ROURKELA STEEL PLANT PRODUCTS

!r$'")t% ;R C$il% !late% C4eE"ere' !late% CR S4eet% B C$il% Gal+ani%e' S4eet% Ele)tr$l(ti) Tin !late% Sili)$n Steel %4eet% B C$il% S#iral 0el' #i#e% ER0 !i#e%
high strength needs. ressure )essels# ship 'uilding and engineering structures 4looring 3 staircases in the industrial sectors and rail(ay platforms etc. Steel furniture# (hite goods like refrigerators# (ashing machines# automo'ile 'odies# rail(ay coach paneling# drums# 'arrels# deep dra(ing and e/tra deep dra(ing etc. Roofing# paneling# industrial sheeting# air conditioner ducting and structural Containers for packaging of )arious products including edi'le oils# )egeta'les and confectionary items. Small generators# stators for high efficiency rotating e,uipment and relays etc. Gigh pressure transportation of crude oil# natural gas and slurry transportation# (ater supply# se(age disposals# grain silos# ci)il engineering pilings etc. Gigh pressure transportation of oil and (ater# se(age disposal# tu'e (ells etc.
A##li)ati$n%
. D Cylinders# automo'ile# rail(ay (agon chasis and all types of
!RODUCT MIX Classification of products

!ri7ar( #r$'")t%
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!et #r$'")t%
A& ipes %lectric Resistance 1elded ipes $1%R& Spirally 1elded pipes $S1& "& %lectrical Steel Sheets Cold Rolled Drain Oriented Steel Sheets $CRDO& Cold Rolled Eon oriented Steel Sheets $CREO& GR* Sheets
C& %lectrolytic tin lates
N$n 8 #et #r$'")t%

a& lates '& Got Rolled Coils c& Got Rolled Sheets d& rime sla' e& Cold Rolled Sheets f& Dal)ani:ed lane Sheets g& MS Sla' h& ipe lant Return $ R& Coils i& Cold Rolled Coils
<ertili,er%
a& Calcium Ammonium Eitrate $CAE& N FSOEA0 '& Ammonium Sulphate $AS&
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SECONDRY !RODUCTS
Ir$n an' Steel
a& Cast iron skull scrap. '& Cast iron 5@R ingot steel. c& MS turning and "urning O.S scrap. d& Tundish steel skull. e& Steel skull trimming scrap. f& -ron and steel "4 fines scrap. g& "f dumps iron. h& 5sed@rejected C- 'ottom plates scrap. i& 5sed@rejected C- mould scrap. j& Cast iron skull scrap.
Re F R$lla:le %)ra#G
a& Steel plates cutting scraps. '& Steel plates shearing scrap. c& Steel crop ends scrap. d& Concast steel short length sla'. e& Concast steel sla' crop end. f& C- skull scrap. g& 5R-E@-S. h& Steel skull scrap Dr+-. i& Side trimming. j& "4 fines. k& "4 drums iron. l& Steel skull
Steel Melting S)ra#

Steel skull scrap. Scrap 'ales $"undle scarp from rail lines press&. MS turning and 'oring. Side trimmimg.
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Online Marketing of Steel: A Case Study of Metaljunction.com Scrap sla'.
In'"%trial S)ra#
a& '& c& d& e& g& h& CR steel cutting scraps. CR steel coils end scraps. CR steel cut flat end scraps. CR steel 'as cut scraps. GR steel N cutting scraps. GR steel small coils scraps. GR steel gas cut scraps.
f&GR steel cut flat end scraps.
i& Semi Rolled steel plates. j& R@* tin plates scraps. k& m& n& o& p& ,& Steel pipes end+cutting scraps. Steel test piece scraps. Sticker coils. Steel short plates $'elo( =8 mm&. Steel short plates $=8 mm 3 a'o)e&. Rejected@damage tin plates scraps. l& Steel coils end+cutting scraps.
De&e)ti+e%
=. *%4%CT-O% GR CO-.S $8.6 MM& 8. *%4%CT-O% GR CO-.S $8.2 MM& 2. *%4%CT-O% GR CO.-S $8.9 MM& 7. *%4%CT-O% GR CO.-S $8.I MM& 9. *%4%CT-O% GR CO.-S $2.=9 MM& J. *%4%CT-O% GR CO-.S $A"OO% 2.=9 3 5 TO 9 MM& ?. *%4%CT-O% GR CO.-S $A"OO% 9 MM& I. GR 5@T CO-.S 4ROM CRM $"%.O1 2.=9 MM& >. GR 5@T CO-.S 4ROM CRM $2.=9 3 A"OO%& =6. *%4%CT-O% GR CO-. $ -CH.%*& $8.6 MM& ==. *%4%CT-O% GR CO-. $ -CH.%*& $8.2 MM& =8. *%4%CT-O% GR CO-. $ -CH.%*& $8.9 MM& 32
Online Marketing of Steel: A Case Study of Metaljunction.com =2. *%4%CT-O% GR CO-. $ -CH.%*& $8.I MM& =7. *%4%CT-O% GR CO-. $ -CH.%*& $2.=9 MM& =9. *%4%CT-O% GR CO-. $ -CH.%*& $A"OO% 2.=9 3 5 TO 9 MM& =J. *%4%CT-O% GR CO-. $ -CH.%*& $A"OO% 9 MM& =?. *%4%CT-O% CR CO-.S $6.7 MM& =I. *%4%CT-O% CR CO-.S $6.9 MM& =>. *%4%CT-O% CR CO-.S $6.J2 MM& 86. *%4%CT-O% CR CO-.S $6.I MM& 8=. *%4%CT-O% CR CO-.S $=.6 MM& 88. *%4%CT-O% CR CO-.S $=.89 MM& 82. *%4%CT-O% CR CO-.S $=.J@=.I MM& 87. *%4%CT-O% CR CO-.S $8.6 MM& 89. *%4%CT-O% CR SG%%TS $6.7MM& 8J. *%4%CT-O% CR SG%%TS $6.9 MM& 8?. *%4%CT-O% CR SG%%TS $6.J2 MM& 8I. *%4%CT-O% CR SG%%TS $6.I MM& 8>. *%4%CT-O% CR SG%%TS $=.6 MM& 26. *%4%CT-O% CR SG%%TS $=.89 MM& 2=. *%4%CT-O% CR SG%%TS $=.J@=.I MM& 28. *%4%CT-O% D SG%%TS $6.29 MM& 22. *%4%CT-O% D SG%%TS $6.7 MM& 27. *%4%CT-O% D SG%%TS $6.9 MM& 29. *%4%CT-O% D SG%%TS $6.J2 MM& 2J. *%4%CT-O% D SG%%TS $6.I MM& 2?. *%4%CT-O% D SG%%TS $=.6 MM& 2I. *%4%CT-O% D SG%%TS $=.89 MM& 2>. *%4%CT-O% D SG%%TS $=.J MM& 76. *%4%CT-O% CG%U5%R* .AT% $9 N =6 MM& 7=. *%4%CT-O% GR .AT%S 78. *%4%CT-O% .AT%S $J + 86 MM& 72. *%4%CT-O% .AT%S $A"OO% 86 MM& 77. *%4%CT-O% 5E*%R S-V%* .AT%S $.%EDTG 766 N J=6 MM& 79. *%4%CT-O% %.%CTRO.;T-C T-E .AT%S 7J. *%4%CT-O% CREO SG%%T 33
SEMIS
MS ingots $Eon N Silicon& ig iron.
?< %lag
"4 granulated slag $ET.&
C$ke <ra)ti$n
Gard coke. Mi/ed 'ree:e coke. Mi/ed coke. Eut coke.
C$al C4e7i)al%
CGT oil $AO W 1O& %/tra hard pitch. G Eaphthalene. Anthracene oil. Car'olic oil. .ight cresote oil. .ight oil. Ammonium sulphate. Crude o .i,uid ammonia. Ammonium Eitrate $melt&. Ammonium Eitrate $.ump&. Eitric Acid. Sodium Eitrate@ Eitric Acid.
0a%te !r$'")t%
4errous sulphate. .i,uid Argon. .i,uid O/ygen.
Online Marketing of Steel: A Case Study of Metaljunction.com .i,uid Eitrogen. 5sed@Rejected refractory 'ricks. 5sed@Rejected fire clay 'ricks. Calcimined fire clay 'ricks. Calcimined lime dust. .ime dust $dump&. .* slag. "4 flue dust. Cinder ash. Tar sledge. 5sed silica get. .ime sludge. 5sed@Rejected Manganese 'ricks.
5ses of products
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MARKETING DE!ARTMENT O< RS!

The marketing department of RS (as earlier called as the Order *epartment. -t is only deal (ith the secondary product of RS and the primary products of RS 0s is deal 'y the Central Marketing Organi:ation $CMO&. The Managing *irector Mr. R. Singh heads the marketing department of RS # Deneral Manager Mr. A. mohanty and other e/ecuti)es are also in charge of the department. 1e can see the hierarchy of the "oard of *irectors and officers in the diagram 'elo(. There are four major departments under RS as the Secondary Steel Stockyard# -ron and Steel Secondary# Coal 3 Chemicals 1aste roducts and Auction and *isposal. %arlier till =>?7 the Central Marketing *epartment $CMO& (as in charge of the marketing of the scrap products. Marketing of the defecti)e products (as also handle 'y the CMO till =>>I# and though they are also responsi'le for the marketing of primary products RS # they had produced primary products 'lindly due to that there (as a huge increase in scrap and defecti)e products. 4or that they ha)e faced huge loss in end nineties. "ut later the indi)idual plants (ere asked to handle the sale of secondary and the scrap products. *uring past fe( years the Marketing *epartment of RS had a huge (ork force of employees. "ut due to moderni:ation and introduction of the computer technology the (ork force ha)e 'een reduce to less num'er of employees. %arlier the documents and important papers (ere kept in lockers and re,uired 8 or 2 employees to maintain# this process make the entire sales process time taken and unsecured. "ut today the documents are stored in soft copies in computer system that makes more relia'le# easy to access and increase the efficiency of the organi:ation. After the implementation of Single 1indo( System! the (ork process is minimi:ed. This system is a ne( system and it has 'een introduced in = st April 8667 and for last t(o years it has 'een running successfully.
ORGANISATION STRUCTURE O< MARKATING DE!ARTMENT O< RS!>
3-
Online Marketing of Steel: A Case Study of Metaljunction.com MANAGING DIRECTOR Sri.R. .Singh
ED 1in )4arge2 Sri.".E.Singh
GM 17arketing2 Sri.A. .Mohanthy
DGM 17arketing2 Sri.G.S.*hiangra
SSSY AGM 1%%%(& Sri. .Sen
Ir$n B%teel %e)$n'ar( A%%t> 7anager 17kt2 Sri.R."anjare =">e9e)"ti+e 17kt2 Sri.R.E. anda
C$$l )4e7i)alA 3a%te #r$'")tA S!!B'e&en)e Sen> 7anager 17kt2 Sri.R.E.'ehera
A")ti$n 'i%#$%al AGM 17kt2 Sri.A.Dupta
IDLE ASSETS Sen> 7anager 17kt2 Sri.5.H. aul
CDY Manager 17kt2 Sri.S.H."ehera
3.
MARKETING SECTION
Marketing section of RS has four major sections they are as follo(s. Auction and disposal. Secondary Steel Stockyard -ron and Steel Secondary. Coal Chemicals# 1aste roducts# S
AUCTION AND DIS!OSAL

This section is concerned (ith the auction and disposal of the scrap and ideal assets and also deals (ith the disposal of secondary products. The secondary products are nothing the scraps those are generated in the process of steel making. A lot of scraps is generated 'y capital repair# periodical repair# construction and changing of machineries and also due to technological o'solescence. These are to 'e disposed off either 'y utili:ing it in plant or to 'e sold to a)oid holding huge in)entories as o'solete items. This auction and disposal deals (ith t(o (ith t(o sections. =. Central *isposal ;ard. 8. -dle Assets.
Central Di%#$%al Yar'

Central disposal yard indicates the area (here the materials of different shape and si:e declared as scrap of unser)icea'le or a'solute are stored# The materials are collected from different units of plants as per %/ecuti)e *irector $1orks& procedure order# these are collected daily 'asis and recorded in a registered called *A; "OOH!. The scope of this procedure order is restricted to all arising of RS e/cept for those (hich are sold 'y marketing department to ancillary industries and unused arising of RS 0s o(n products.
3/
IDEAL ASSETS
The ideal assets can 'e defined as the assets# (hich ha)e outli)ed its life. These are not economical )ia'le. These assets ha)e either gone o'solete due to change in technology# change in demand# and change in material or due to depreciation. Assets can 'e declared as ideal for the company 'y the department# (hich it 'elongs# (hen the department head+ in+ charge declared the assts are ideal. A committee is set for identifying the ideal assets should identify it# this committee is kno(n as the -*%A. ASS%TS 4-QACT-OE COMM-TT%%!. The committee has a chairman# (ho is the rank of a general manager. The selling of -*%A. ASS%TS! is also a )ery tough task for the company. 4or that Rourkela Steel lant ha)ing a tie up (ith Metallurgical 3 %ngineering Consultancy -ndia .imited! $MACOE&. The central disposal yard and idle assets ha)e earned Rs.26 crores and Rs.86 crores. er annum is the last fiscal year respecti)ely. The target for this year has 'een set at Rs.86 crores and Rs.=9 crores respecti)ely.
SECONDARY STEEL STOCKYARD

The secondary steel stockyard is the main stockyard of RS (here the secondary products are kept for sale. -t is constructed outside the grill gate along the "isra Road (ith an initial in)estment of a'out =.9 crores in the year =>>=+>8 and it came into operation on 68@62@=>>8. Su'se,uently# the yard has 'een e/panded suiting to the re,uirement and necessity of RS .
All$t7ent $& 7aterial% at SSSY

%)eryday SSS; sends the lists of plots@lots a)aila'le for allotment .The plots@lots are fed to the computer. All the items and )alid sale orders of those products are separately randomi:ed through computer on that day and lists are generated. "ased on random list the senior plot@lot of the senior . -tem is allotted to the senior )alid sale order . There are certain things # (hich are taken into account. After all the customers ha)e 'een considered the ne/t round for allotting materials is started. The follo(ing aspects are checked through computer: =. The concerned sale order should 'e )alid (.r.t to e/piry date# suspension of sale order# cancellation etc.
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Online Marketing of Steel: A Case Study of Metaljunction.com 8. The party should ha)e su'mitted the re)ised price acceptance. 2. The sale order should 'e sufficient $i.e. minimum =6 tonne& for allotment of one (agon. 7. A uni,ue SSS; no. is assigned $9 digits& to the materials on entry to the stockyard. 9. The materials coming through truck $=6 tonnes& are allotted lot nos. that is of 7 digits. J. The materials coming through (agons are more in ,uantity and are allotted plot nos. that are of three digits. ?. 4or entry of trucks into the stockyard identification of the dri)er# helper 3 R.C no. of the )ehicle is re,uired. I. A pri)ate contractor is appointed for loading and unloading the material at SSS;. >. After the payments ha)e 'een made the release order is issued# (hich is a financial document of sale. This contains party name # a(ard price # details# and last date of lifting . =6. Materials going out of SSS;# an in)oice (ill 'e made+then dispatch ad)ice (ill 'e gi)en on (hich one can take out the material. ==. On the last day lifting the material *CR $deli)ery completion report& is issued for each lot# (hich come to the finance department. =8. This *CR is re,uired for refunding %M* money to the customer.
IRON AND STEEL SECONDARY

Secondary steel products are generated during the process of primary products. -t is generated at )arious pieces in the plants. More the production (e do# more the secondary product (e (ill get. These defecti)e products cannot 'e )isi'le in necked eyes# 'ut they are defecti)e products. The defecti)e products are stored in the secondary steel stockyard and from there it is supplied to the different )enders of RS . This section deals (ith the marketing of -ROE and ST%%. secondary products generated in the process of steel making. *efecti)e Re+rolla'le scrap Melting scrap
-ndustrial scrap
COAL C;EMICALSA 0ASTE !RODUCTS

The (aste products generated is li,uid o/ygen# li,uid hydrogen# rejected fire clay 'ricks# 'last furnace flue dust# cinder ash and .* slag. 4errous sulphate is a (aste product that is generated from the cold rolling mill. -t is 'ase material for print industry. -t is also used as manure for opium plants. .* slag another (aste from SMS. -t is the steel slag and it0s primary customer are south eastern rail(ays. 4iue dust is also a kind of (aste generated from the 'last furnace. -t is a mi/ture of iron dust and coke dust used in small iron factories# coke 'ri,uette plants etc. The follo(ing are the coal chemicals produced 'y the plant =. %/tra hard pitch 8. Got pressed naphthalene 2. Anthracite oil 7. .ight kerosene oil 9. Car'olic oil J. Ammonium sulphate ?. .ight oil The coal chemicals are used as ra( material for the manufacture of dyes# pharmaceuticals# insecticides# pesticides# fla)ors# perfumes# ru''er chemical# car'on 'lack tires# plastics and many more products.
AUCTION O< T;E MATERIALS

The materials after getting their respecti)e plot and lot num'ers are placed for the auction. -t includes the secondary and scrap products. 4or scrap items they are in)ited open tenders from the )enders and for the secondary products they are taking the help of the Metaljunction.com# (hich is doing auction through# online. "efore this online auction process they used to follo(ed the Order "ooking System!# in this process 96L of the secondary product material is placed for auction to small scale -ndustries $SS-& of OR-SSA# (hile the remaining 89L for open sale and 89L for
Online Marketing of Steel: A Case Study of Metaljunction.com registered traders. -n this system the )enders (ere not in a position to accept the material at any cost and RS (as forced to sale the less defecti)e secondary product at a chipper rate. *ue to limited capacity of stock RS sale the chemicals at a )ery chip rate to the local )enders. RS still follo( the open sale auction in some cases# -f the secondary items are fails to make raise any demand then those material are sale through open auctions.
Ter7% an' C$n'iti$n% $& Or'er ?$$king S(%te7

=. SS- auction N -t refers to the Small+Scale industries in OR-SSA. According to the rule passed 'y the *irectorate of -ndustries of Orissa# 96L of the material should 'e kept for SS-. There (as a security deposit of Rs 96#666 to take part in the auction and that amount (ill 'e adjusted from the material price. 8. Open Sale N -t refers to all the parties through out the -ndia# so that all the )enders (ho are interested in auction can participate. The tender notice issued through leading ne(spapers# cham'ers of commerce ect. Those customers (ho 'ids in auction sale# they ha)e to deposit Rs 96#666 as security 'efore ? days of the auction sale. 2. Registered traders N RS adopted a policy of enlisted registered traders in the year =>?J. *uring =>?>+ I6 to =>>2 N >7 there (as 9> registered traders. Again in =>>7 N >9 another 9I traders (ere enlisted. 4or registered traders 89L of the total amount a)aila'ility of the material is kept reser)ed# and the security of Rs 96#666. "ut no( the system has changed completely. As it has mentioned that they are follo(ed online auction to their secondary products. 4or this system Rourkela Steel lant has to pay =L as a commission to it. The system pro)ide 'y metaljunction.com generates ma/imum re)enue for Rourkela Steel lant (ith least outlay of the materials. This system has 'een effect of use to RS from the year 8662 N 67 . 1e can compare the re)enue generation and sales of material 'y the old system (ith out metaljunction.com and the system of metaljunction.com $ne( system&.
!RICING
The )arious categories of secondary products# (hich are homogenous in nature# are sold on a 4i/ed price 'asic!. A high+po(ered standing pricing committee fi/ed the prices. M* constituted this committeeC this committee plays a )ital role 'ecause the customers are )ery much depend upon their decisions.
Online Marketing of Steel: A Case Study of Metaljunction.com 1hile fi/ing the price of such scraps# a num'er of factors are taken into account 'y the pricing committee. a& Marketed feed'ack from 9 RS 0s :onal officers located in Ee( *elhi# Mum'ai# Channai# Holkota and "angalore. '& Order position of indi)idual items. c& Stock position of all the items in SSS; as (ell as in mills. d& ricing of compara'le items of sister steel plants. recogni:ed 'odies like Rourkela Cham'er of commerce and industries # Rourkela. f& "ids recei)ed against plots@lots offered for sale through 'est offer. The prices are re)ised periodically that is usually once e)ery month taking into consideration the pre)ailing conditions# feed 'ack from :onal Offices and feed 'ack from the local market. e& Deneral feed 'ack from market# including representation # if any recei)e from
SALE ORDER C O<<ER LETTERS

Sale order is issued in the name of the customer after recei)e the %arnest money deposit $%M*& is deposit. Offer letters (ere issued for only to Registered Traders# these offers (ere )alid for a period of =6 days for in side OR-SSA customers. The customers (ithin the )alidity of the offer should su'mit all commercial formalities and all re,uisite documents.
SUS!ENSION C CANCELLATION
S"%#en%i$n
Eo suspension on dispatches is allo(ed under any circumstances after 'ooking the sale order. -n case of such instance# it (ill 'e presumed that the party is not interested to continue the sale order and such sale orders (ill stand cancelled.
Can)ellati$n
Eo cancellation of sale order is allo(ed once the material is allotted. Cancellation should 'e done at least one day prior to allotment. 4or open sale orders cancellation of order is not permitted and in case of insistence# the 4A (ill 'e forfeited. Such cancelled plots (ill disposed off 'y open sale first# in case not disposed (ithin I days# then through tender. -n case of e/piry of )alidity of sale order# the un ser)iced sale 3
Online Marketing of Steel: A Case Study of Metaljunction.com order may 'e e/tended at the discretion of RS and accordingly notice is displayed to su'mit such re,uest (ithin stipulated period mentioned therein. Apart from the a'o)e a customer is free to cancel the regular sale order for any item and time. Eo( RS has replaced the Order "ooking System! (ith Online Auction through M%TA.<5ECT-OE.COM! to sale their secondary products 'ut follo( the same channels for fi/ing the price of the secondary products.
METAL=UNCTION>COM
Corporations across the (orld ha)e reali:ed that in a (orld (ithout 'oundaries# certain regions and people (ith distinct competencies (ill 'e more efficient than others and therefore the )isi'le trend in the (orld today is outsourcing. Companies are outsourcing manufacturing acti)ities# customer ser)ices# 'ack office operations and a host of other acti)ities# either 'ecause there is someone else (ho can do the same thing for less# or# there is specialist (ho can offer ser)ice of higher ,uality. -ndustry has recogni:ed that (hilst it has to concentrate on gro(th# a prere,uisite is to 'ecome glo'ally competiti)e. -ndustry has to# on the one hand# concentrate on its core competencies of 'ringing a'out efficiencies in manufacturing and on the other hand look at 'ringing a'out efficiencies in their Supply Chain# (hich are their 'uying and selling rocesses. The Re+engineering of the 'uying and selling processes (ould focus on reducing total purchase cost for goods and ser)ices procured and higher reali:ation for the sale of finished goods and also include ,uicker process cycle times. The understanding of the a'o)e situation# led to the emergence of Metal<unction.com# a specialist in pro)iding procurement ser)ices and selling ser)ices. Metaljunction.com focuses on Supply Chain -mpro)ements through " O and also through de)eloping applications and offering them on an AS mode to its clients. The scope of (ork en)isages 'ringing a'out efficiencies to the entire Supply Chain# and emphasi:es importance on 'oth an online solution 'acked (ith a strong domain e/pertise. 1hen the t(o leaders of the Steel industry in South Asia + Steel Authority of -ndia .imited $SA-.& and The Tata -ron and Steel Company .imited $TATA Steel& decided to com'ine their strengths to launch a common e +commerce platform in 8666# to sale their secondary product# the foundation of Metaljunction.com had started.
Online Marketing of Steel: A Case Study of Metaljunction.com Metaljunction.com pri)ate# .td $M<& is a 96:96 joint )enture of TATA Steel and SA-.. 4ounded in 4e'ruary 866=# it is today -ndiaAs largest e+commerce company $(ith e+ transactions (orth Rs >#=2= crore& and runs the (orldAs largest e+marketplace for steel. The steel supply chain in -ndia has 'een transformed 'y the company# (hich has impro)ed the efficiency# transparency and con)enience (ith the (ay in (hich steel# especially secondary steel# is 'ought and sold. Metaljunction.com recently (ent glo'al 'y signing on its first international client# Eat4errous of Singapore# and conducted e+sales of their ferrous and non+ferrous scrap. rofita'le results deli)ered 'y metaljunction.com (ith transaction )alue gro(th of 896L $CADR& since inception in 6=.68.866=. -n 4; 69 the )alue of transactions of the company (as in e/cess of Rs. 7866 crores (hich makes it the largest eCommerce Company in the country for the second year in a ro(. 4urthermore ha)ing traded 8.2 million tonnes of Steel since its inception $and =.8 million tonnes in the last == months& has made metaljunction.com the largest e + marketplace for Steel in the 1orld. O)er 2#966 'uyers and scores of pu'lic sector and pri)ate sector companies today 'uy and sell products using the con)enience# transparency and efficiency offered 'y metaljunction. -n Septem'er 8669# metaljunction (as a(arded -SO >66=:8666 certification 'y *et Eorske Oeritas# Eetherlands. The certification co)ers the ,uality management system standards of the company for e+sales# e+sourcing# channel financial ser)ices and soft(are solution ser)ices. 333>7etal@"n)ti$n>)$7
ro)ides e+selling ser)ices for the follo(ing materials:

o o o o
Steel 4erro alloys# minerals and metallic Eon+ferrous metals O'solete capital goods $idle assets&
Also pro)ides e+selling ser)ices on a " O mode. Gas sold 2 million tonnes for its clients# since inception up to Septem'er 26# 8669. ro)ides finance to distri'ution channels @ direct end users in association (ith leading 'anks. Gas arranged finance of Rs 8I.? 'illion till Septem'er 26# 8669.
METAL=UNCTION>COM AND RS!

Eo( RS is doing their secondary stock marketing online through Metaljunction.com.
Though Rourkela Steel lant does not ha)e the system of online auction facility they are going through this process.
Terms and Conditions for Online Auction:

-n online auction e)ery one can take participate in -ndia# so there is a 'ig chance of false registration# for that there are some conditions. "efore take participate in the auction the )ender should deposit Rs =#66#666 as security deposit that is called earnest money deposit $%M*&. After recei)ing the security the )ender is eligi'le to get the Fpass(ord0. All ,uotations su'mitted 'y the Supplier@his authori:ed agent@representati)e 'y logging on to the a'o)e (e' site for %nterprise rocurement System using the 5ser -dentification pro)ided 'y the Ser)ice ro)ider and pass(ord 'y (hich the person logging into the %nterprise rocurement System is authenticated and filling up the structured on+line forms a)aila'le against each -n)itation to Tender# shall 'e considered as legal and 'inding documents ha)ing in all opinions the same legal )alidity as a physically signed ,uotation 'y the Tenderer@Gis authori:ed agent@representati)e. -n the e)ent of the Tenderer ha)ing su'mitted more than one ,uotation against an -n)itation to Tender# only the latest ,uotation su'mitted 'y him shall 'e considered as the )alid ,uotation for consideration of opening of the ,uotation and issuance of Acceptance of Tender 'y the company. All earlier ,uotations su'mitted in the %nterprise rocurement System shall 'e deemed to 'e superceded and in)alid and (ill remain un+opened in the System and also not a)aila'le for )ie(ing the details 'y the Tenderer or the company or the Ser)ice ro)ider once the )alid ,uotations against the said -n)itation to Tender are
Online Marketing of Steel: A Case Study of Metaljunction.com opened on the scheduled date and time 'y the company0s authori:ed representati)e. Once the ,uotations against an -n)itation to Tender su'mitted in the %nterprise rocurement System are opened# the Tenderer@s shall 'e legally 'ound to honour the contract# (hich may arise out of the acceptance of the said ,uotation. -n the e)ent of non+acceptance of the contract so a(arded and arising out of such ,uotations $including any su'se,uent confirmations on price# technical and commercial grounds from the Tenderer& the company shall ha)e access to all and same legal remedies a)aila'le for enforcement of the contract as a)aila'le had the ,uotations 'een su'mitted 'y the Tenderer on paper attested (ith a signature of an indi)idual so authori:ed. Once the ,uotations are opened# the Tenderer shall ha)e no claim to (ithdra( the ,uotations on the grounds that he had not understood any part@total of the (e' posted -n)itation to the Tender and@or that he had not su'mitted the ,uotations and@or that his user+id and pass(ord had 'een (rongly used 'y someone else not authori:ed 'y him and@or that the authority of the personnel (ho had 'een entrusted (ith the user+id and pass(ord had since ceased and@or that the prices# technical parameters and terms and conditions (hich are a)aila'le on+line in the %nterprise rocurement System are not the ones that the Tenderer had su'mitted originally. The maintenance and security of the user+id and pass(ord is strictly and solely the responsi'ility of the Tenderer. The Company and Ser)ice ro)ider shall not 'e in any (ay responsi'le for the loss@misuse of the same. 4or any disputes arising during the course of su'mission of the ,uotations on+ line or for any matters su'se,uent to acceptance of such on+line ,uotations# the method of settlement shall 'e through the process of Ar'itration 'y a Sole Ar'itrator appointed 'y the M*@Chief %/ecuti)e of Steel Authority of -ndia .imited# Rourkela Steel lant. .egal <urisdiction: Any Contract (ith the Company# arising out of the %nterprise rocurement System shall 'e deemed to ha)e 'een formed entirely at Rourkela#
Online Marketing of Steel: A Case Study of Metaljunction.com not(ithstanding the place from (hich tender has 'een su'mitted. Su'ject to clause ? a'o)e# legal proceeding shall 'e tria'le 'y the Ci)il Courts ha)ing territorial jurisdiction o)er Rourkela. 1e understand that the company and Ser)ice ro)ider disclaim all (arranties and conditions# either e/press or implied# including# 'ut not limited to# implied (arranties or conditions of merchanta'ility# fitness for a particular purpose# and non+infringement. 1e are also a(are that pro'lems related to 'and(idth# connecti)ity etc.# are 'eyond the control of company and Ser)ice ro)ider# and hence no responsi'ility can 'e taken 'y Company or Ser)ice ro)ider for the same. That the a'o)e transmission# retention and retrie)al of -n)itations to Tender# Su'mission of ,uotations 'y the -nterested Tenderers etc (ill 'e handled through the Secure Ser)ers of the Ser)ice ro)ider. That the Tenderer (ho (ill 'e participating in the a'o)e %nterprise rocurement System (ill 'e registering themsel)es (ith the "uyer@ Ser)ice %nterprise ro)ider for o'taining the re,uired 5ser -dentification and pass(ords for authentication for the rocurement System# (hich thereafter (ill 'e maintained 'y the Tenderer0s authori:ed personnel. That after the said registration in the %nterprise rocurement System (ith the
Ser)ice pro)ider# the Tenderer (ill 'e a'le to .og on to the %nterprise rocurement System of the Ser)ice ro)ider and Oie(# *o(nload and see all the -n)itations to Tenders# (hich are transmitted 'y the Company to them through the %nterprise rocurement System. That the Tenderer can thereafter# su'ject to their agreement to the terms and conditions stipulated for each of the -n)itation to Tenders posted 'y the company# su'mit their ,uotations in the Structured 4ormats a)aila'le for the purpose in the %nterprise rocurement System (e' site indicating the rices# Ta/es and *uties#
Online Marketing of Steel: A Case Study of Metaljunction.com 4reight and all rele)ant Technical and Commercial contractual information as applica'le and desired 'y them. That once the Tenderer fills up the on+line forms for su'mission of ,uotations# the data contained in these forms (ill 'e stored in the Ser)ice ro)ider0s Ser)ers in a secure encrypted form neither a)aila'le or )isi'le to any agency including the Ser)ice ro)ider or the company till the time and date of opening of the -n)itation to the Tenders against (hich such ,uotations are su'mitted# or till such e/tended time and date of su'mission as may 'e indicated against the tender# su'se,uent communications at the discretion of the Company. That the Tenderer can during the time and date for (hich the -n)itation to Tender is )alid for su'mission of Uuotations# su'mit fresh ,uotations in super cession of his earlier ,uotations# in (hich e)ent the latest ,uotation su'mitted 'y the Tenderer only (ill 'e considered as Oalid. That the ,uotations so su'mitted on+line through the medium of -nternet (ill 'e opened on@after the scheduled opening date and time $including the e/tended date and time# if any& 'y an authori:ed officer of the company# at (hich time the ,uotations0 "id part su'mitted 'y all Tenderers against the rele)ant -n)itation to Tender (ill 'e a)aila'le for Oie(ing in the %nterprise rocurement System 'y all the -nterested Tenderers (ho ha)e responded (ith a )alid ,uotation to the said -n)itation to Tender. After recei)er the a'o)e documents and terms signed 'y the )ender# RS gi)e them the pass(ordC so that they can access and take participate in that auction.
!ROCESS O< AUCTION

Rourkela Steel lant starts the auction on e)ery Tuesday# and it (ill start at =6.26 am for the con)inance of the customer# and it (ill continue until 'iding of the last lot. The process (ill start =6 days 'efore the start of the auction# so that the )enders can )erify the material for (hat they are going to 'id. At the time of auction the screen (ill display the no of plots that are in the 'idding process and display the plots num'er and si:e# so that the 'idder can 'id his
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Online Marketing of Steel: A Case Study of Metaljunction.com re,uired material. -t (ill also display the no of 'idders and one 'idder can participate in more then one items. Ma/imum 26 minutes has 'een pro)ided to all the lots that are display in the 'idding items screen. The 'id (ill comes to an end (hen they (ill get the highest 'idder $G=&. The 'id (ill continue until get the G= 'idder and according to that the time (ill 'e automatically e/tended to 2 minutes. The auto e/tension (ill carries until get the G= 'idder. After the auction the highest auction price comes to the RS 0s marketing department# and there they are going to decide (hether to sale or not. According to the guidelines they ha)e their o(n 'etter price for each items. The materials (ill 'e allotted to the 'idders (ho 'id for >6L or more than the 'etter price. -f the 'id fall 'elo( the >6L of 'etter price then the material is for(arded for the ne/t auction in the ne/t (eek. -f in the ne/t auction the G= price is less then the 'etter price then the 'etter price has re)ised for the ne/t auction. After recei)e the G= 'idder for that auction# the management held the meeting regarding the allotment of the material to the parties (ho has offered the highest price o)er and a'o)e the 'etter price. After the meeting a sale order is released and sends to the customer (ho has 'id the highest price a'o)e the 'etter price# it is signed 'y the Managing *irector of Rourkela Steel lant.
!AYMENT !ROCEDURE
After recei)e the sale order# (hich contains the detail information a'out the materials# )ender name# and dispatch date# payment conditions. The customers are re,uired to pay the amount of =68L of their )alue of material this is 'ecause of adjustment of amount if their is any e/tra ,uantity of material released to them else this amount (ill 'e refund to them# if they (ant to lift the material in small ,uantities then they ha)e to deposit the amount of the first ,uantity and 9L of the second ,uantity for security# and that amount (ill 'e adjusted at the end of the last material lifting. The )enders get some stipulated period for lifting the materials as follo(ed. =6 *ays for lifting Ee/t ? days (ith Another ? days (ith + Eo penalty + =L penalty + 2L penalty
CONDITIONS UNDER RE<UND O< MONEY

*1
Online Marketing of Steel: A Case Study of Metaljunction.com The %M* has to pay 'y the customer to take part in the auction. Those (ho do not get any allotment for the material their %M* has refunded 'y RS # "ut for those (ho got allotted of material 'ut failed to make payment for them some penalties are their. The penalty (ill 'e charged to the total amount of material left in the stockyard. -f the party fails to make payment in respect to the total amount of material# then the party (ill 'e 'anned for a period of 2 months to take any part in the online auction plus from the financial aspects 9L (ill 'e charged on the total lot )alue su'ject to Rs =#66#666 and the rest amount (ill 'e refunded to the )ender after deduct the 9L penalty.
A'+antage O& T4i% S(%te7

More customers are created through this online auction. Since they can participate any (here across -ndia. Through this online auction Rourkela Steel lant getting good price for their secondary products and it helps to create a good and healthy competition. "etter consumer satisfaction 'ecause all the acti)ities done under one roof that is called Single 1indo( System!. Through this they are a'le to generate )ery high re)enue. This process is )ery useful as compared to order 'ooking system.
S0OT ANALYSIS O< ROURKELA STEEL !LANT

Strengt4
=& RS has a dedicated and hard(orking team on the marketing. 8& RS marketing net(ork0s is )ery much efficient in marketing the secondary products. 2& RS has a )ery large secondary steel stockyard of I6#666 s,.mts# (hich has all the facilities that helps the stocking# and deli)ering of secondary products made easy. 7& The computer net(orking system use 'y the RS is one of the 'est system in the industry# it make+(ork easy. 9& Metaljunction.com@ on line marketing system adopted 'y RS is one of the 'iggest strength of RS marketing J& RS most production unites are -SO >66= certified (hich helps increasing customer confidence# and impro)e efficiency effecti)eness. ?& Single (indo( concept adopted 'y SSS;
*2
*3
0eakne%%
=& .ack of internal customers orientation inha'its implementation of plans to a su'stantial e/tent. 8& Eear of RS there are less num'er of cement industry so RS can not sale their "4 granulated slag s. 2& RS dose not compromise much on the reser)ed price fi/ed for the secondary products due to many material remain 'lockade and day 'y day there )alue depreciate
O##$rt"nit(
=& -n the glo'ali:ations (orld there huge demand of steel for the nation infrastructure de)elopment. 8& -ncrease demand of steel at the international le)el that has raised hopes for the e/port of steel from -ndia. 2& *ue to economic 'ooming many small+scale industry are open no( a days# so for that small industry are more demand steel from SA-..
T4reat
*ue to open economy pu'lic sector are facing moor competitors in there marketing fields like(ise TATA# <-E*A.# %SSAR# M5H5E*# Epro)ide goods in lo(er cost. =& Dood ,ualities of coals are not a)aila'le in -ndia. for that SA-. depends upon other country0s. 8& The use of plastic and aluminums as su'stitute for steel is posing a major threat of steel industry. OE#%.-D%E ST%%.# %tc# those are
SUGGEESTION
*
Considering all the facts - think there most 'e changes in policy of RS . Some of the suggestions are gi)en 'elo(. The marketing strategy of RS satisfaction# so it is most impro)e. The security deposits of =69L should 'e reduced to =6=L+=62L# as the )ariation in ,uantity of the allotted materiel during lording is minimum. The practice just in time deli)ery should 'e thoroughly internationali:ed to gi)es RS the strength to gro( under the competiti)e scenario. The dispatch destination (ith the rail(ay in this regard should 'e gi)en priority. Customer data'ase to de)elop incorporating product (ise @ :one (ise re,uirement. RS should 'e de)eloped their seal0s promotion for that customer attract to(ards to the RS . -t should look after the gro(th of small+scale industry0s# (hich depends on the secondary products from RS . RS should de)elop their production units so that it (ill help to reduce productions of secondary products and produce more primary products. -t should tray to reduce in)entories and need proper planning and scheduling. should circular depended upon customers
**
CONCLUSION
-n present era companies cannot sustain (ithout competiti)eness. -f the company has si/+ sigma efficiency then only it can sur)i)e in the competiti)e markets. -n the steel industry effecti)e# efficient and competiti)e players are T-SCO# <-E*A.# and <OS. etc. Rourkela steel plant has completed four decadesC during this period there has 'een a complete shift# mo)ing from a monopolistic state to a totally competiti)e markets en)ironment. O)er the year many changes (ere initiated. -t 'eing the pioneer in production of (ide )arieties of irons 3 steel also produces di)ersified )arieties of secondary arising during the production process. RS caters to a )aried and (ide spectrum of consumers. There is hardly any industry# (hich does not uses its products either directly or indirectly. Customers are the 'eginning and all 'usiness pursuits. Total satisfaction of costumer0s re,uirements in all aspects is there for the key of success of any 'usiness or any organi:ation. Gence# RS no( aims at de)oting it0s emerging to(ards producing ,uality and creating )alue to the costumers. The analysis of present system thus sho(s that RS has (ell managed marketing policies keeping the markets secondary products the customer mind. The system has come (ith process like online for(ard auction# and single (indo(s system. Customer satisfaction is one of most important aspects of marketing and detailed studies of present marketing system clearly depict this. The effecti)eness of the system is undou'tedly much more than the earlier system. The technological ad)ancement adopted is also much more fruitful. The study of marketing department clearly sho(s that any section of the department cannot 'e ignored# e)en if it is marketing of secondary products. Thus# 'atter sales can 'e generated from the secondary products also.
*-
?I?LIOGRA!;Y
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*.

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Online Marketing of Steel: A Case Study of Metaljunction.

Online Marketing of Steel: A Case Study of Metaljunction.com

Online Marketing of Steel: A Case Study of Metaljunction.com

Online Marketing of Steel: A Case Study of Metaljunction.com

Online Marketing of Steel: A Case Study of Metaljunction.com

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Online Marketing of Steel: A Case Study of Metaljunction.com

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Online Marketing of Steel: A Case Study of Metaljunction.com

Market Strateg( $& RS!

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Central Marketing Organi,ati$n

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!RODUCT 0ISE CLASSI<ICATION

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?$kar$ Steel !lant

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ROURKELA STEEL !LANT

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MA=OR UNITS O< ROURKELA STEEL !LANT

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COLD ROLLING MILL

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