A SUMMER TRAINING REPORT ON

MARKET RESEARCH AND MARKET AWARENESS PROGRAM ON RAILS, PARALLEL FLANGE BEAMS AND COLUMNS OF

JINDAL STEEL & POWER LTD

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) GURU JAMBHESHWAR UNIIVERSITY, HISAR

TRAINING SUPERVISOR MR. AMIT GUPTA MARKETING SALES MANAGER JSPL CORPORATE OFFICE

SUBMITTED BY KARAN NAGPAL ENROLLMENT NO. 05511242179

SESSION: 2005-08

GURU JAMBHESHWAR UNIVERSITY HISAR

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ACKNOWLEDGEMENT
The present work is an effort to throw some light on Market Research and Market Awareness Program On Rails, Parallel Flange Beams and Columns of JINDAL STEEL & POWER LTD. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Mr. Amit Gupta, Project Manager (JSPL corporate office). I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

KARAN NAGPAL

EXECUTIVE SUMMARY

The mission of present day Marketing is not telling or selling but satisfying customer needs and delight. The competition has increased tremendously and customer is offered with so many substitutes. The job of the marketer has become tough if they have to grow and survive in future. The new world is based on Digital Revolution and Management of information. Information has no. of attributes. It can be infinitely differentiated, customized, and personalized. Philip kotler quoted on marketingThe future is not ahead of us. It has already happened. Unfortunately it is unequally distributed among companies, Industries, and nations. The project report is humble attempt to explain role of Traders, Builders, Architects, and Designers in promoting Iron and Steel companies. Various measures have been suggesting to enrich marketing strategy and hypothesis has been tested.

TABLE OF CONTENTS
I. II.

INTRODUCTION About the Industry RESEARCH METHODOLOGY

1-6 2 7-12 7 9 9 9 10 12 13-51 14 19 24 51 52-61 62-64 65-67 68-69 70-73 74-75

Research objectives Data sources o Primary data o Secondary data

Sample design
III. IV.

Limitations of the research

COMPANY PROFILE About the company Market Presence Range of products and services SWOT Analysis

DATA ANALYSIS AND INTERPRETATION FINDINGS / OBSERVATIONS CONCLUSIONS RECOMMENDATIONS ANNEXURES BIBLIOGRAPHY / REFERENCES

V.
VI. VII. VIII. IX.

INTROD UCTION

INTRODUCTION

ABOUT THE INDUSTRY

National Steel Policy

OBJECTIVE
To have modern and efficient steel industry of world standards, catering to diversified steel demand. To achieve global competitiveness in cost, quality, product-mix, efficiency and productivity To attain Finished Steel production of 110 mTpa by 2019-20 Production 2019-20 CAGR (Base 0405) 110 7.3% Imports 6 7.1% Exports 26 13.3% Consumption 90 6.9%

STRATEGY
Demand Side Strengthening of delivery chain Interface between producers, designers of steel intensive products, Creating awareness about cost-effective and technically efficient end-

fabricators and ultimate user use of steel

Supply side

Enhanced and easy access to critical inputs iron ore & coking coal Expansion and improvement in quality of infrastructure Well developed financial market Increased focus on R&D, training of manpower and integrated information services

Strategies for Fuelling Demand

Facilitate Rural Consumption Increased usage in Bridges, Crash Barriers, Flyovers and Building Constructions Closer interaction between INSDAG / Large Producers and Architects/ Engineers/ Students

Huge potential upside in Per Capita Consumption

SAILS GROWTH PLANS

MT 2005-06 Hot Metal Crude Steel Saleable Steel 14.60 13.47 12.05 2011-12 22.5 21.6 20

-Planned Investments of US$ 7.7 bn. - Includes only growth in existing Units

INDIAN STEEL INDUSTRY A BRIGHT FUTURE

RESOURCES
Abundant Iron Ore reserves Strong Managerial skills in Iron and Steel making Large pool of skilled Man-power Established steel players with strong skills in steel making

OPPORTUNITIES
High economic growth driven increasingly by industry Faster Urbanisation Increased Fixed Asset Building Automobiles and component industry growth

POLICY
Pro-active stance of Govt. Encouragement for overseas investments

INDIAN STEEL INDUSTRY A QUICK OVERVIEW

8th largest steel producer in the world Production of Finished steel in 2005-06, 42.7 MT, a growth of 11%. Apparent Consumption of Finished Steel in 2005-06 - 38.1mT, growth of Largest producer of Sponge Iron - 12.8 MT in 2005-06 (a growth of 25%). Indias exports of Finished Steel in 2005-06, 4.4 MT, Imports 3.7 MT Huge Iron Ore reserves 23 bn. tonnes Private Steel Producers are opting for Forward as well as Backward Indian Steel Producers are increasingly looking for overseas acquisitions in

10.8%. Apparent consumption of Longs -16.2 MT, Flats - 21.8 MT.

Integration steel as well as raw materials. Iron and Steel industry is a core sector of Indian economy. It is the basic input and raw material for hundreds of industries and forms the basis for producing machines and spare parts. Steel is being used in Industrial Buildings, Multi-storey Buildings, Road bridge composite construction, Utility buildings and car parks, Technological structures, and Railways. The Iron and Steel sector has experienced challenges in the last 3 years. India is the eight largest steel producers in the world. Also, reconstruction activities in Afghanistan and Iraq are likely to impact the steel prices and the growth in domestic market in construction; infrastructure and automobiles are showing signs of pick ups. The project is important as Marketing is an extensive term comprising many specialized branches such as sales and advertising. Different companies adopt different style of marketing. To understand those it needs to be studied first is what marketing style is.

DESIGNING OF A MARKETING STYLE-

After completing the preparation a marketing style needs to be designed. The points that need to be taken into consideration before laying out one differ according to the company and the product. How marketing should be developed needs to be understood keeping into mind following points. The Targeted Market Unique Selling Proposition The Brand Image The Market Share The Competitors Strategies Product differentiation The companys philosophy and vision

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

OBJECTIVE OF STUDY
To bridge the gap between Traders & company by putting light on various aspects. To bring an awareness to Contractors, Builders, Promoters, Investors & Architects regarding H-Flanges beams & columns. Scanning and Understanding the marketing strategies. of the competitors. Finding the Unique Selling Proposition and image of JSPL H-Flanges Beams and Column. The research & analysis will give information of the market & recommendation & suggestion will lead to developing new strategy to capture the market.

HYPOTHESIS OF STUDY Null hypothesis

Companys name and Quality of the product plays a important rol~ in buying behavior of the Middle man or Traders

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ALTERNATIVE HYPOTHESIS
Quality means Sale for Traders

NATURE OF STUDY
The research for this project is exploratory in nature. The aim is focused on getting the actual happenings inside the market. The study would be characterized by high degree of flexibility and hence would rely on Secondary Data and Small Scale Survey.

The Data is collected from primary and secondary sources mainly from internet and personal dialogue with officers of the SAIL.

Primary Data
Personal meetings with respondents and administers Findings and suggestions are from the observations

Secondary Data
Internet, and sail websites Company literature National Journals, newspaper

Refereed Books

Research Design
The success of any study lies in its methodology. One has to present a clear idea of the research procedure used in the study since the value of any systematic research lies in its methodology.

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Methodology is the science of methods; it is indispensable because of its scientific pre-thought. It is an outcome of fact provided by the SAIL.

Sampling Process:
The basic idea of Sampling is that by selecting some of the elements in a population .We may draw conclusions about the entire population. A population element is the individual participants or object on which the measurement is taken. It is unit of the study. While an element may be a person, it can just easily be something else.

Sample Design
A study is inconsistent without right sample selection in terms of selection criteria, size, unit, and method of execution. A sample should be a subgroup of elements of the whole population selected for the participation of the study of else it will lead to sampling errors.

Methods of sampling
There are various methods of sampling like probability or non probability sample. If probability, is it simple random or complex random?

MEASUREMENT TECHNIQUE: QUESTIONNAIRE:

Two questionnaires were prepared one for Traders & other for builders and promoters.

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PERSONAL INTERVIEW:
During the personal interview, the presence of the interviewer, permits flexibility on procedure further explanations or classifications can be requested to the interviewer if desired.

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LIMITATION OF THE STUDY

Study suffers from various limitations that are natural to it. The information and the data provided by the respondents are based on their oral statements. Mentions may also be made to the limited time, single-handed effort in the field. The study is confined to the northern region of India on sampling basis. The study includes 7-8 traders of each Trade and almost all big Builders, Promoters and Architects in Delhi and NCR. As there was not much published literature available, therefore the study undertaken was exploratory in nature.

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COMPANY PROFILE JINDAL STEEL POWER LIMITED

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ABOUT THE COMPANY

A Tribute to shri O. P. Jindal

Shri Om Prakash Jindal more popularly known as O.P. Jindal was born on August 7, 1930 to a farmer Late Netram Jindal of village Nalwa of district Hisar in Haryana. Since his childhood the young Jindal had interested in technical work. He started his industrial career with a small bucket-manufacturing unit in Hisar. In 1964, he commissioned a Pipe Unit Jindal India Limited, followed by a large factory in 1969 under the name Jindal Strips Limited. Sh. Jindal always had the conviction that India should be self-reliant in every sector of industry. He visited several foreign countries to elicit latest industrial technical development and know-how. He acquired a great deal of knowledge, which he aptly applied to enhance production of his industrial establishments. At present, there are twenty factories under the flagship of the Jindal Organization, which are worth over Rs.17,500 crores, under whose umbrella thousands of families directly or indirectly benefit themselves.

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Sh. O.P. Jindal was the Chairman of the Jindal Organization. In November 2006, Sh. Jindal was conferred the prestigious "Life Time Achievement Award" for his outstanding contribution to the Indian Steel Industry by the Bengal Chamber of Commerce & Industry. According to the latest Forbes' List, Sh. O.P. Jindal has been ranked 13th amongst the richest Indians of the country and placed 548th amongst the richest persons of the world. His life's mission was to help others particularly the common man in every possible way. The list of his philanthropic activities is rather long. He was the Chairman of N.C. Jindal Charitable Trust, under whose auspices a 300 Bed N.C. Jindal Institute of Medical Care functions in Hisar Haryana. A 10+2 Girls Residential School in the name of Vidya Devi Jindal School is also run at Hisar. The girls school spreads over 40 acres of land. Another 10+2 school by the name of N.C. Jindal Public School for 4000 students is being run in Delhi. For his selfless social services and philanthropic contributions, he was unanimously nominated as the Chairman of the Maharaja Agarsen Medical Education & Scientific Research Society. He was also the custodian trustee of the Agroha Vikas Trust. Sh. Jindal was known for his unassuming generosity and donates crores of rupees annually not only to known but also to needy strangers. Numerous social and religious institution of India also received liberal donations from Sh. Jindal for noble causes. He was a successful industry visionary and would remain as a role model for others. On account of his dedicated services to various sections of society particularly, of the poor and backward classes, he was revered by all. In the recent years, he was dedicating his maximum time for alleviating poverty of the economically backward people. Sh. Jindal always advocated for granting a rightful place for weaker sections in politics. He was above caste politics and wanted all to come up regardless of their caste, colour and creed. For these qualities he commanded great respect amongst the masses. He firmly held the view that all differences in life that exist today can be amicably resolved with meaningful meetings and dialogues. Sh. Jindal's philosophy was that without the upliftment of weaker and backward sections of society our nation's dream of being a leading nation of the world shall 19

remain unfulfilled. To realize his this conviction he was motivated into politics. Like industry even in politics he had a successful story to tell. He received tremendous support and cooperation of people in the political arena and resultantly became a Member of the Haryana Legislative Assembly in 1991. Soon after in 1996, he was elected as a Member of Parliament in the 11th Lok Sabha from the Kurukshetra Parliamentary Constituency of Haryana with a landslide victory. Infact, he was the first industrialist of India to be elected as a Member of Parliament in Lok Sabha. As a Member of Parliament, he proved himself as a matured, seasoned and an honest parliamentarian who came up to the expectation of people, who had consigned faith in him. He liberally funded various welfare projects not only from the Government but also from his personal resources. Sh. Jindal was a sitting Congress MLA from the Hisar Legislative Assembly and was appointed Minister of Power, Govt. of Haryana. Sh. Jindal won the Hisar Legislative Assembly seat of Haryana consecutively thrice. Sh. Jindal's mantra was where others saw walls he saw doors. Then whether it was opening doors or breaking down walls he always led the way. The life journey of Sh. Jindal from a farmer's son to a successful industrialist, a philanthropist, a politician and a leader would serve as a great source of inspiration for generations to come

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GROUP PROFILE
In the world of business, the Jindal Organization is a celebrity. Ranked sixth amongst the top Indian Business Houses in terms of assets, the Group today is a US $2 billion conglomerate. Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multibillion, multi-locational and multiproduct steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. New directions, new objectives... but the Jindal motto remains the same- "We are the Future of Steel ". The group has been technology-driven and has a broad product portfolio. Yet, the focus at Jindal has always been steel. From mining of iron-ore to the manufacturing of value added steel products, Jindal has a pre-eminent position in the flat steel segment in India and is on its way to be a major global player, with its overseas manufacturing facilities and strategic manufacturing and marketing alliances with other world leaders. Jindal Organization aims to be a global player. In pursuance of its objectives, it is committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service.

O P JINDAL GROUP
JINDAL

STEEL & POWER LTD.

Sponge Iron Power Steel Slabs , Rounds & Blooms Ferro Alloys Steel Structure & Rails

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JINDAL STRIPS LTD.

Stainless Steel in the form of Slabs/Coils/Sheets High Carbon Ferro CR Coils/Sheets

JINDAL IRON & STEEL CO. LTD.

HR & CR Coils/Sheets GP/GC Sheets

JINDAL VIJAYA NAGAR STEEL LTD.

2.0 ml MTPA Integrated Steel HR Coils/Plates

JINDAL THERMAL POWER CO. LTD.

260 MW Power Plant

SAW PIPES LTD.

Submerged Arc Welded Pipe Pipe Coating Spiral Pipes

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MARKET PRESENCE
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create and exchange that satisfy individual and organizational objective. The marketing concept requires that customer satisfaction rather than profit maximization is the goal of the organization. In other words, the organization should be consumer oriented and should try to understand consumers requirement and satisfy them quickly and efficiently, in way that are beneficial to both organization and the consumer. This means that any research organization should try to obtain information on consumer need and gather marketing intelligence to help and satisfy these needs efficiently. Marketing research is a critical part of such a marketing intelligence system, it helps to improve management decision making by providing relevant, accurate and timely information. Every decision poses unique needs for information and relevant strategies can be developed based on the information gathered through marketing research. One of the major tasks in researching a market is to estimate its a current decisions hang on these estimates whether the market demand upon in future to justify the market entry. Once a company enters a market segment in order to allocate it resources effectively. Thus we can see that demand estimate is essential in carrying out three important functions: Analysis of market opportunities Planning of marketing efforts Control of marketing performance

A market is a set of all actual and potential buyer of a product. The actual or, available market is a set of buyer who has interest and access to a particular market offer.

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If the organization is not satisfied with its current sales or has some expansion plans, it could try to attract a large percentage of people from its served market by promoting the product to available market. Untimely it could try to expend the potential market by launching the campaign to convert uninterested buyer into interested buyer.

BY PRODUCT: In the steel industries we heated the coke we get some gas and tar product such as Ammonia, Tar, Benzene etc. These products are unwanted but we cant leave them vain. Because they are profitable as well as harmful for the environment and industries. So we go through the certain process and made some valuable product. Example: - When we heat the coke we get ammonia gas, we mix it in the sulfuric acid and made ammonia sulphate that use as a fertilizer with brand name RAJA.

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JINDAL STEEL POWER LIMITED

COMPANY INTRODUCTION
Jindal Steel & Power Limited (JSPL), part of the US$ 1.8 billion Jindal Organization; redefines dynamism. JSPL, an ISO-9002 and 14001 certified company with its obsession for excellence, is increasing its portfolio of value added products, bringing the worlds best to India and making. an international mark. Production capabilities expanding to serve the infrastructure sector, catalyzing economic development and growth. JSPL has its integrated steel plant (as approved by Joint Plant Committee) at Raigarh in the state of Chhattisgarh, India. The facilities including worlds largest coal based Sponge Iron Plant (installed capacity 650000 tpa) with six rotary kilns. Captive iron and coal mines make it one of the lowest cost producers of sponge iron. Growth and expansion plans include an additional 720000 MTPA capacity sponge iron plant comprising of four rotary kilns. The new plant is scheduled for commissioning by next year end. JSPL also has 150 MW power generation facility based on Waste Heat Recovery from rotary kilns, washery rejects and coal fines, which is being expanded to almost 300 MW by next year.

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BOARD OF DIRECTORS

Chairman Executive VC & MD VC & CEO Director

. : . .

Smt.Savitri Jindal Shri Naveen Jindal Shri Vikrant Gujral Shri Ratan Jindal Shri Amir Z. Singh Pasrich Shri Rajender Singh

Nominee Director Whole time Directors :

Shri Subir Bisht (ICICI) Shri Anand Goel Shri Sushil K. Maroo Shri M. L. Gupta

Company secretary

Shri T. K. Sadhu

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JINDAL STEEL AND POWER LIMITED

CORPORATE OFFICE : Jindal Centre, 12 Bhikaiji Cama Place, New Delhi-10066 Ph: 011 26188340-50, 26188360-75 Fax:011-2161271 MUMBAI : Jindal Enclave, New Prabhadevi Marg, Off. Appa Saheb Marathe Road, Mumbal 400025 Ph: 022 24328000, 24368742 Fax: 022 24327700 KOLKATA : 41, Shakespeare Sarani, Room No.2, 3rd Floor Kolkata 700017 Ph: 033 22473616/22477398 Fax: 033 22476203 CHENNAI : 4C Century Plaza, 560-562, Anna Salai, Chennai 60018 Ph: 044 52132334/52132134 Fax 044 24329146/52132334 WORKS RAIGARH : Kharsai Road, Post Box No. 16, Raigarh 496001 (Chhattisgarh) Ph: 07762 227001-05 Fax 07762 227021-22, 227030 RAIPUR :13 K.M.Stone, G.ERoad, Trader Hasaud, Raipur 492001 (Chhattisgarh) Ph: 0771 2471205-07 Fax: 0771 2471214

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PRODUCT PROFILE

HOT ROLLED PARALLEL FLANGE BEAMS AND COLUMN

Every product has at least one USP, which can become its strongest point-and help the product sell more. The USP helps you position your brand distinctively. Another important component in fostering a marketing style is Value Addition and Hot rolled parallel flange beams and column are most sought after sections by structural engineers, architects and construction companies the world over. Advantages of using Parallel Flanges Beams and Column over ISMIB Greater choice of profilewith universal rolling method, there will be choice of large no. of beams and column with different weight in kg/in and statically properties in comparison to traditional I-beams on account of caliber rolling method. Facilitate bolted or welded construction there is no taper in Hbeam flange. Flow drill and Hollo-bolt helps to produce bolted joints with hollow sections. Ensured quality of material and constructionthe Parallel Flanges Beams have superiority in terms of strength, sectional efficiency, load bearing capacity, workability and economy in comparison to traditional beams.

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Reduced steel consumptionwith the adoption of new technology the JSPL beams are cost effective because of less weight. The co. is able to save 15-30% of steel.

Time-saving construction-pre-forined steel frames saves on construction time, they can be erected very fast and metal decking at floors ensures fast track, formwork-free construction.

Efficiency in construction-pre-fabricated and sleek steel reduces construction time which in turn reduces related costs including reduced interest during construction and quicker revenue generation.

Fire safety-everyone knows material weaken in fire, yet JSPL ignore this fact in design calculation. These are based on the strength of structural members at 20 degree C, and not on their reduced strength at elevated temperature of 600,800,1000 degree C or more.

APPLICATIONS OF PARALLEL FLANGES BEAMS AND COLUMNS

Industrial Buildings Multi-storey Buildings Road bridge composite construction Utility buildings and car parks Technological structures Railways Material handling system Ports and harbors

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WORLDS LONGEST & INDIA S ONLY 120M LONG RAILS

JSPL believes in understanding the minutest of details of rail customer in order to provide them with foolproof solution, committed not only in supplying rails but in facilitating the building of a system of modern rail track for the Indian railways. JSPL has entered into a with technical N7KK

collaboration

agreement

Corporation, Japan for technology transfer to produce superior quality, worlds longest rails of 120m finished length, along with Parallel Flanges beams, column and Sheet piles for first time in the country. The agreement covers know-how transfer encompassing steel-making, secondary refining and continuous casting up to rolling and finishing of long, rails and universal beams; deputation of NKK multi-disciplinary specialists at the JSPL plant; and training of JSPL personal at NKK steel works in Japan. NKK is already supplying rails for high-speed bullet trains, Shinkansen in Japan. This technical collaboration shall enable production of long rails requiring far less joints in tracks, ushering a new era in rail travel safety and introduction of fast trains in India a reality. Railways, the backbone Indian economy covers 63,000 route kilometers. -It has the largest network in Asia and second largest in the world. Carrying 13 million passenger and over 1.3 million tones of freight daily, it is most important means of transport in the country. Efficient transportation system is essential for development of an industry, business and trade and brings synergy in the development of region across state boundaries. As a step toward forward integration JSPL is setting-up a rail & universal beam mill to produce superior quality worlds longest, 120m long, finished rail for the first time in India. A Flash-butt welding plant, with state-of-art technology, is also being 30

installed to produce long welded rails up to 480m for direct transportation to Indian Railways construction sites.

Advantages:
With the availability of 120 m long rails, there will be drastic reduction of weld population in Indian rail tracks (from 160 welds per track km presently to 17) resulting enhances safety and cost reduction. The performance of Indian Railways would improve on account of enhanced safety, increased reliability, comfort and prolonged rail life.

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RAIL STEELS QUALITY & PRODUCT RANGE:

Our comprehensive range of rail steels can be broadly classified as: Normal grade typified by 710 N/mm2 minimum UTS Wear resistant Grade typified by 880 N/ mm2 minimum UTS to 1080 N/mm2 UTS. Rails with higher UTS value as may be specified by international or domestic customers can be produced. Rail steels are produced in both standard carbon grades and micro-alloyed grades to meet the strength and quality requirement. The quality assurance system of JSPL today is certified by BSI-London for Quality BS:EN 9002:2000 and BS: EN 14001:1996 for Environmental Management System. Besides autonomous responsibility for self-checking, wherein products are qualified by self-certification, i.e. extensive internal and external inspection in conformity with customer requirements; we also follow the system of approval by third party inspections prior to dispatch. Today, the standard requirements of rails must meet the operating needs of the railways for at least 20 years. It is this stringent quality norm which guides the company to manufacture products of high standards, placing JSPL at the forefront in the supply of rails.

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Specifications of Rails: JSPL rails are being rolled to different sections ranging from BS-75R (37.1 Kg/m) to UIC-70 (70 Kg/m): conforming to Indian Railways as well as international specifications. Rails can be supplied in customized finished lengths ranging from 13 m to 120 m and flash butt welded rails from 240 m up to 480 m.

Some of the important specifications are listed below:

S. No. Rail Sections Sectional Weight (kg/m) Specification* 1. P-75 74.41 GOST 2. UIC-60 60.34 UIC 3. UIC-54 E 53.823 UIC 4. IRS-52 51.89 IRS 5. UIC-50 50.88 UIC 6. TCDD-49 46.303 S-49 7. 48 Kg SAS 47.60 SAS 8. BS-90R 44.65 BS 9. BS-75R 37.1 BS

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POWER
JSPL generates power to meet its captive

requirements. The surplus power is supplied to Chhattisgarh state Electricity Board. The current generation of power is 150MW. Work on another 55MW plant has also been completed. Building upon the strength of our unshakeable foundations, JSPL is poised for a quantum leap in the core sector of power, contributing to the growing needs of the nation. At JSPL, we generate power to meet our captive requirements. In 1991, we entered this vital core sector by utilising waste heat from the rotary kiln boilers and the coal rejects of the washery. JSPL has 255 MW power generation facility with a capacity expansion to 350 MW on anvil. JSPL is one of India's most economical power producers in the private sector. Jindal Power Limited has been established to sharpen our focus, leading to planned growth with a 1,000 MW. Thermal power plant being established in Raigarh district, about 40 kms from our existing plant. An MOU with the State Government has been signed and preliminary work on this project has already commenced. The serious intent of the JSPL foray into power can be gauged from its accelerated pace of expansion and meeting commitments not only on time but well in time. The thrust into this core sector is not only in keeping with our philosophy of creating opportunities where others see problems, but is also in complete synergy with the businesses we already are in. Our vision of utilising existing in-house strengths to fuel further growth has made us a force to reckon with. JSPL has a long-term commitment

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to this vital core sector. Jindal Power Limited will serve to further sharpen our focus on the power sector and thus lead to faster growth.

SPONGE IRON The world's largest coal-based sponge iron facility

JSPL is one of the lowest-cost producers of sponge iron in India. Backward integration has given JSPL the distinction of being the only sponge iron manufacturer with its own captive raw material resources and power generation. This has enabled JSPL to monitor both price and quality of its products. At Raigarh, JSPL has the world's largest coal-based sponge iron manufacturing facility, with an installed capacity of 1.35M TPA, using ten rotary kilns. Sponge iron was the first production facility at the Raigarh plant, commissioned in 1991. In India, JSPL is the market leader in coal-based sponge iron, enjoying a market share of 22%. Today a major portion of our production is used for in-house manufacture of steel at JSPL and the other companies in the Jindal Organisation. As a key raw material for the manufacture of steel, our focus on sponge iron continues. The increased production is geared to meet our expanding capacities for value-added steel products in the years ahead.

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MINING- IRON ORE, GOAL & COAL WASHING

JSPL has its own iron ore mines at Tensa; district Sundergarh, Orrisa which produces 550,000 million tonne per annum (mtpa) of iron ore to meet the part requirement of Sponge Iron Plant. The company has its captive coal mines at Dongamahua, District Raigarh, and Chattisgarh with a capacity of 2.0 mtpa. Since the coal is of very poor grade and quality, it has to be beneficiated. Hence, a coal washery with a capacity of 2.5 mtpa to wash 47-48% a coal ash to 26% has been commissioned and is operating successfully. The washery meets the requirements of sponge iron plant. Middling from the washery are being used for generation of captive power to tune of 100 MV. The captive mine is core strength of the company.

FERRO CHROME
Ferro chrome is an essential component in the manufacture of stainless steel and special steel. JSPL manufactures ferro chrome through the continuous smelting of chrome ore, coke, coal and quartz at the submerged arc furnace (SAF). At temperatures of 16001700oC, the chrome ore gets reduced by the carbon of the reductants. The SAF is tapped at regular intervals depending on the power input. Metal and slag come out together and by virtue of the higher specific gravity, the metal settles in the first receptacle. After solidification, the metal is removed from the receptacle and crushed to the required sizes. The emphasis on quality control is strict and in accordance with the stringent requirements of international standards. High-grade chrome ore is made available from captive chrome ore mines in Sukinda Valley of Orissa. Throughout the manufacturing process, special emphasis is laid on ensuring quality of the material at all levels. The plant is fully equipped with a state - of - the - art laboratory, complete with the latest high - tech testing facilities at 36 par with the best

manufacturers in the world. From each tapping, control samples are collected and analysed so as to maintain the international standards of product quality. Almost the entire production of ferro chrome(36,000 MTPA) is committed to India's leading manufacturer of stainless steel. An increase in production capacity is on the anvil and global markets are being tapped to sell the increased production.

STEEL Steel at our Raigarh plant is being manufactured using the Electric Arc Furnace. The steel melt shop (SMS) is equipped with ladle furnace and vacuum degassing and has continuous casting facilities for wide slabs, rounds and blooms. The capacity of SMS is 4, 00,000 MTPA. Steel at our Raigarh plant is being manufactured using the Electric Arc Furnace. The steel melt shop (SMS) is equipped with ladle furnace and vacuum degassing and has continuous casting facilities for wide slabs, rounds and blooms. The steel making capacity at present is 1.15 million TPA. JSPL has recently signed an MoU with the State Government of Orissa to set up a 2 million tonne steel plant with an investment of Rs.13,500 crores which would be expanded to 6 million tonne and another MoU has been signed with the State Government of Jharkhand to set up a 5 million steel plant with an investment of Rs.12,000 crores.

Product Range
Carbon & Alloy Steels confirming to National & International Standards like SAE, AISI, DIN,IS and ASTM

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SIZE RANGE
Billets : 150 x 150 mm squares. Length upto 12 Metres ; Rhomboidity 5mm (max) ; Bend 5mm per Metre ; Width across flat +4mm, -3mm ; Normal cast surface Bloom : 280mm x 320mm rectangle Round : 160mm diameter rounds Slabs : Width 1000mm to 1500mm ; Thickness 150mm & 200mm ; Length 5.0metre to 9.0metre in 1250mm width , 3.0metre to 6.8metre in 1500mm width ; Rhomboidity 5mm max ; Bulging - 2.5mm max; Camber 2mm per Metre ; Normal cast surface On the Anvil Blooms: 285mm x 390mm rectangle Rounds : 200mm & 220mm diameter

HEAVY MACHINERY
A wide range of machinery has been manufactured and supplied to prestigious Indian companies including L&T, Laffarge Cement, South Eastern Coal Field, SAIL, Jindal Strips, Jindal Steel & Power amongst others. The Division is ISO 9002 certified and is equipped with state-of-the-art quality testing and inspection facilities. Some of the machinery manufactured includes gear boxes up to weight of 17 MT, equipment of sponge iron plant, Cold Rolling and Hot Rolling mills; material preparation and handling equipment, etc.

38

BUILDERS, CONSTRUCTORS, ARCHITECTS AND DESIGNERS

Builders prefer RCC or concrete structure over H-flanges beams and column; small scale presentation can bring about a change in their ideology as there are hardly 8-9 builders in Delhi and National Capital Region. Architects play an important role in the construction of any building. They need to have sufficient knowledge about H-Flanges beams and columns but as the survey indicates there was not sufficient awareness about JSPL H-Flanges beams and column. Company should cover all the persons concerned in designing, architecture and users of beams and columns. Manufacturers of cranes should be included in the awareness programmes conducted by the company.

39

JINDAL STEEL PAYS 100 PERCENT INTERIM

DIVIDEND
Hindustan Times, November 01, 2006 Jindal Steel and Power Limited on Monday announced 18 per cent jump in its net profit at Rs 145.53 crore during the second quarter and paid 100 per cent interim dividend to its shareholders. The total income went up by 24 per cent to Rs 621.26 crore compared to Rs 501.74 crore in the same period last year. "At the end of second quarter declaration of 100 per cent dividend conveys our confidence in the company's growth in the time to come," JSPL Director (Finance), Sushil Maroo, told the agency.

JSPL PAYS 100 PC INTERIM DIVIDEND

The Pioneer, November 01, 2006 Jindal Steel and Power Limited on Monday announced 18 per cent jump in its net profit at Rs 145.53 crore during the second quarter and paid 100 per cent interim dividend to its shareholders. The total income went up by 24 per cent to Rs 621.26 crore compared to Rs 501.74 crore in the same period last year. "At the end of second quarter declaration of 100 per cent dividend conveys our confidence in the company's growth in the time to come," JSPL Director (Finance), Sushil Maroo, said.

JINDAL STEEL Q2 NET AT RS 145.53 CR

Business Standard, November 01, 2006 Jindal Steel & Power has announced net profit of Rs 145.53 crore for the quarter ended 30 September 2006 as compared to Rs 123.48 crore for the corresponding period previous year. Total income (net of excise) has increased from Rs 505.68 crore in Q2-05 to Rs 628.19 crore for the quarter ended 30 September 2006. The board has approved payment of interim dividend at the rate of 100% i.e. Rs 5 per equity share of Rs 5 each in respect of the paid-up equity share capital. 40

JSPL Q2 NET UP 18 PERCENT

Economic Times, November 01, 2006 PTI , NEW DELHI Jindal Steel and Power Limited on Monday announced 18 per cent jump in its net profit at Rs 145.53 crore during the second quarter and paid 100 per cent interim dividend to its shareholders. The total income went up by 24 per cent to Rs 621.26 crore compared to Rs 501.74 crore in the same period last year. "At the end of second quarter declaration of 100 per cent dividend conveys our confidence in the company's growth in the time to come," JSPL Director (Finance), Sushil Maroo, told the agency. Asked about the recent fall in steel prices, he said "our volume expansion will more than compensate the fall in steel prices." The shareholders would be getting Rs five as an interim dividend per share of face value of Rs five. According to company's information to stock exchange, ICICI Bank has nominated Ashok Alladi on the Board of the company in place of Subir Bisht besides appointing Suresh Baid as an additional Director of the company.

JSPL ANNOUNCES INTERIM DIVIDEND

The Tribune, November 01, 2006 New Delhi Jindal Steel and Power Limited (JSPL) today announced 18 per cent jump in its net profit at Rs 145.53 crore during the second quarter and paid 100 per cent interim dividend to its shareholders. The total income went up by 24 per cent to Rs 621.26 crore compared to Rs 501.74 crore in the same period last year. The shareholders will be get Rs 5 as an interim dividend per share of the face value of Rs 5.

41

SOME OF THE MAJOR EQUIPMENT MANUFACTURED INCLUDES

Gear boxes up to single piece weight 17 MT Equipment for sponge iron plant (shell, support roller assembly, base frames, tyres, girth gears, rotary feeders, etc Material preparation and handling equipment (coal crusher, roller crusher, jaw crusher, briquetting machine, E.O.T. cranes, scrap charging bucket, etc.) Cold Rolling mill equipment (side trimming machine, coil cars, looper car, strip separator assembly, steering assembly, bridle assembly, pinch roll assembly, deflector assembly Hot Rolling mill equipment (chocks, rolls, pinch roll assembly, manipulator assembly, etc.) Equipment for continuous casting (mould jacket, mould oscillator assembly, segment roll assembly, carrier frame dummy bar assembly, withdrawal and straightener assembly, roller table, cooling bed, etc.) Spares for mining equipment (dipper front wall, pulley, bucket, bowl and mantle liner, etc.) Spares for steel and other plants (peal stem, wear resistant bends, counter weight level, winch assembly, etc)

GROWTH AND EXPANSION PLANS

2004-05 Sponge iron plant: 6.0 lakh MTPA Rotary hearth furnace: 2.6 lakh MTPA 2005-06 Steel melting shop: 7.5 lakh MTPA Captive Power plant - 50 MW 2006-07 1,000 MW thermal power plant (by Jindal Power Ltd.) 42

INSTALLED CAPACITIES
At Raigarh Products Sponge Iron Mild Steel Ferro alloys Oxygen Gas Power Hot Metal/Pig Iron Rail & Universal Beam Mill At Raipur Machinery & Castings Ingots CF Castings 11,500 MTPA 30,000 MTPA Capacity 1,350,000 MTPA 1,150,000 MTPA 36,000 MTPA 14430 M Cum PA 255 MW 250,000 MTPA 750,000 MTPA

3,000 MTPA Future Plans 2006 JSPL has recently signed an MoU with the State Government of Orissa to set up a 2 million tonne steel plant with an investment of Rs. 13.50 crores which could be expanded to 6 million tonne and onther MoU has been singed with the State Government of Jharkhand to set up a 5 million steel with an investment of Rs. 12,000 crores. Year 2006 - 07 Project under expansion :

10.0 Lac MTPA capacity Plate Mill 75 MW Capacity Power Plant based on fuel gases of coke oven 7.0 Lac TPA Rebar, TMT and Wire Rod Mill 23.0 Lac MTPA Capacity Sinter Plant 8.0 Lac MTPA Coke Oven Plant 12.5 Lac MTPA Blast furnace 12.5 Lac MTPA Blast Melting Shop III 5.0 Lac MTPA Steel Melting Shop II 5.0 Lac MTPA Rail & Structural Mill

SPECIAL STEEL PLANTS

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ALLOY STEELS PLANT

The pioneer in the area of alloy and special steels production in India, Ally Steels Plant (ASP) was specially designed for casting special steels like Austentic and Ferritic stainless steel and a variety of non stainless steels, including bullet proof steel. ASP has one slab-cum-twin bloom continuous casting machine, the only one of its kind in India. ASP has the capacity to produce slabs, Blooms, Bars, Plates and Forged items of over 400 grades in a wide range of sizes, totaling 1.78 lakh tones of saleable steel annually. Among the value added items produced by the plant are CRM rolls, concast rollers, crane wheels, springs, hammers grate bars, hot saw blade, shear blade, bright bars, stainless steel liner plate, etc. ASP also supplies import substitution items to many customers through established conversion agents. The entire plant is certified to ISO9001:2000 standards.

SALEM STEEL PLANT Certified for ISO9001:2000 Quality Assurance and ISO 14001:1996 Enviornmental Management Systems, Salem Steel Plant (SSP), is one of Indias leading producers of quality stainless steels. The plant is capable of rolling 186200 tonnes of hot rolled carbon/stainless steel flat products and 70000 tonnes of cold-rolled stainless steel sheets/coils annually. SSPs products, branded Salem Stainless are well accepted in the domestic and international markets. The plant has gone beyond its designed capacity in producing thinner gauges and supplies value-added 0.13 mm thick stainless steel, as well as hot rolled carbon steel in thickness of 1.5,1.4 and1.25 mm. In hot rolled special grade carbon steel, SSPs boiler quality steel requires special mention. The plant also supplies LPG grade IS:6240 steel in sheet form. The plant has developed new applications of its products viz. LPG tanks for automobiles, stainless steel ceiling fans, corrugated sheets, water tanks, etc. 44

SSPs Blanking Line has an annual capacity to produce 4000 tonnes of ferritic grade coin blanks or 3600 tonnes of utility blanks. One rupee, 50p and 25p coins are minted from the blanks supplied by SSP to the Govt. Mints in Noida, Mumbai, Kolkata nad Hyderabad. The plant also supplies ferritic stainless steel strips to Govt. Mints. Industrial segment using Salem Stainless include hi-tech areas like atomic power stations, heavy engineering, chemicals & fertilizers, railways, automobile, construction, dairy & food processing, bulk solid handling, power, etc.

VISVESVARAYA IRON & STEEL PLANT

Visvesvaraya Iron & Steel Plant (VISL), which applies ISO 9001:2000 Quality Management System, has infrastructure facilities to produce over 700 grades of high quality hot rolled and forged alloy and special steel products through Blast FurnaceBasic Oxygen Furnace-Ladle Refining Furnace-Vaccume Degassing Ingot/Continuous cast (with Electro Magnetic Stirrer), Rolling Mills, Hydraulic Forging Press and Horizontal Long Forging Machine. It has an installed capacity of about 205000 tonnes of hot metal 130000 tonnes of saleable steel.

SUBSIDIARIES INDIAN IRON & STEEL COMPANY LIMITED

The Indian Iron & Steel Co. ltd. (IISCO), originally in the private sector, became a subsidiary of SAIL in 1977. The integrated steel plant in Burnpur has the capacity to produce 426,000 tonnes of saleable steel and 254,000 tonnes of pig iron annually. IISCO also has captive collieries at Chasnalla, Jitpur and Ramnagore. Its mines at Gua, Chiria and Manoharpur are considered to have Asias largest reserves of iron ore. The production facilities of Burnpur are currently being augmented under a plan approved by the Govt. Steps have been initiated to merge IISCO with SAIL.

45

IISCO produces a range of steel structurals and special sections as well as pig iron. The plant pioneered the production of center-sill-Z section used in the fabrication of wagons and Z type sheet pilling section used in the construction of barrages, bridge foundations and other projects and colliery Arch section used for roof support in the collieries. IISCOs Merchant & Rod Mill is equipped with ISO9001:2000 certification.

MAHARASHTRA ELEKTROSMELT LIMITED

Maharashtra Elektrosmelt Limited (MEL), the largest producer of manganese based ferro-alloys in the country with a capacity to produce 100,000 tonnes of ferro alloys, joined the SAIl family as a subsidiary in the 1980s. Among the major technological achievements of MEL are fast change over from high-carbon ferro manganese to silico-manganeese and vice versa in the Submergerd Arc Furnaces, production of midium low carbon Ferro Manganeese through Electric Arc Furnaces, sintering of Managaneese Ore fines through conventional and high pressure process, generation of 4.2 MW electric power by gainfully utilizing ferro-alloys furnace gases and production of building bricks from ferro-alloys slag. MELs ferro-alloys route has received ISO9001:2000 certification. MEL has plans to expand its production capacity to meet the demand of ferro alloys with the envisaged expansion plans of SAIL.

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OTHER UNITS OF SAIL

RAW MATERIAL DIVISION
The Raw Material Division(RMD) was formed in 1989 with headquarters in Kolkata for management of all the captive mines of the SAIL steel plant in the eastern sector. This has enabled rationalization of raw material supply to the different plants in the region and achievement of systematic reduction in purchase of iron ore hrom noncaptive sources. Presently, RMD manages five iron ore mines in Jharkhand and Orissa, and four limestone and dolomite quaries in Madhya Pradesh, Jharkhand and Orissa.

Iron Ore Mines Mines Kiriburu Meghahatuburu Bolani Barsua Kalta State Jharkhand Jharkhand Orissa Orissa Orissa 3.00 2.01 1.15 Annual capacity(MT) 4.25 4.30

RMD is planning to expand capacity in view of the enhanced production plans of the steel plants and cope with the requirement of high quality iron ore. The lime stone quaries under RMD are located at Kuteshwar, Purnapani and Bhawnathpur. Dolomite quarry is at Tulsidamar. RMD has centralized workshop at Bolani for repair/overhauling of engines & transmission of heavy earthmoving machinery operating at the mines. 47

Besides the above, RMD has three customer service office at Rourkela, Durgapur and Bokaro for coordination with the steel plants. Two liaison offices are also maintained at Bhubaneshwar and New Delhi for better coordination with government agencies and other statutory authorities.

CENTRAL COAL SUPPLY ORGANISATION

Situated at Dhanbad in Jharkhand, the Central Coal Supply Organisation(CCSO) of SAILs Operations Directorate, is entrusted with the vital responsibility of ensuring daily movement of around 12000 tonnes each of washed coking coal and power grade coal to all sail steel plants.

CENTRAL MARKETING ORGANISATION

The ISO 9001:2000 certified Central Marketing Organisation(CMO) is Indias largest industrial marketing set up that markets carbon steel produced by the four integrated steel plants of SAIL. Headquartered in Kolkata, it transacts business through its network of 34 branch sales offices spread across the four regions, 24 Warehouses equipped with mechanized handling systems, 11 Customer Contact Offices and 15 Consignment Agents. CMOs domestic marketing effort is supplemented by its ever widening network of authorized and rural dealers who meets the demands of the smallest customers in the remotest corners of the country. A strong IT support system enables real time network connectivity within the entire CMO network. Extensive customer contact, product and segment specialization, close monitoring of order servicing and feedback analysis through the Customer satisfaction Index are established norms at CMO. The customer friendly approach of CMO is backed by practical after sales service. Through the process of Key Account Managemnt, CMO provides single window service to key customers across the country for every business transaction from

48

enquiry to order booking, order tracking to delivery, and even consultancy after-sales service. CMOs International Trade Division(ITD) in New Delhi exports iron & steel products of SAILs four main integrated steel plants and maintain close liaison with buyers abroad. ITD has successfully established SAILs reputation as a producer of quality steel products and a consistent supplier across the five continents. Among the notable destinations are China , Korea, USA, Canada, Philippines, Indonesia, Malaysia, Saudi Arabia, Iran UAE, Europe(UK, Italy, Spain, Germany), Taiwan, Japan, Thailand and Singapore, as well as neighboring countries like Sri Lanka, Myanmar, Nepal and Bangladesh, etc. The critical function of ensuring efficient and proper dispatch of export materials and timely import of raw materials to maintain the pace of production of the SAIL plants is performend by CMOs Transport & Shipping Division(T&S). Headquartered at Kolkata, T&S has branch offices at Haldia, Paradip and Vizag ports. Both ITD and T&S are accredited with ISO 9001:2000 certification.

SAIL CONSULTANCY DIVISION

SAILs high level of expertise and vast experience in building, operating, and maintaining a chain of integrated and mini steel plants and associated facilities encompassing diverse technologies, equipment and product mix enables it to provide a wide range of consultancy services. The SAIL Consultancy Division(SAILCON) based in New Delhi is the single window provider of design, engineering, technical, managemnt and training consultancy and services in iron & steel and related areas to clients at home and abroad. An ISO 9001:2000 certified unit, SAILCON is equipped to render quality services from concept to commissioning.

49

THE RANGE OF SERVICES ON OFFER INCLUDE:

Design and Engineering Services: Feasibility Studies; Project proposal for Financial Institutions; Detailed Project Reports; Basic/Detailed Engineering; Tender Specification Preparation; Bid Evaluation. Project Management Services: Project Planning, Monitoring & Supervision; Procurement & Inspection; Plant Eraction & Supervision; Start up, Testing & commissioning; Post Commissioning Stabilization. Technical Services: Plant Operation & Maintenance; Technology Up gradation; Quality, Productivity & Performance Improvement; Environment Management & Pollution Control; Energy Conservation & Audit; Mine Planning & Development. HR/Training Services: Training needs Assesment; Setting up Training Systems/Facilities; Training for operations, Maintenance & Management of Steel/Power Plants; Engineering & Technical Skills Training; Management Development Programmes; Training for Trainers; Recruitment Services; Appraisal & Reward Systems; Preparation of Personnel & Training Manuals. Management Services: TQM & ISO9001:2000 Certification Assistance; Corporate Planning; Benchmarking; Corporate Restructuring; Marketing & Distribution; Software Development & System Design. In addition to increasingly widening its Indian customer base, SAILCON has satisfied clients in Egypt, Saudi Arabia, Iran, Qatar, Bangladesh, Oman, Philippines, Nepal, Taiwan, Thailand, Georgia, Azerbaijan and Nigeria.

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RESEARCH & DEVELOPMENT CENTRE FOR IRON & STEEL

SAILs corporate R&D unit is located at Ranchi. The ISO9001:2000 certified Research & Development Centre for Iron & Steel(RDCIS) undertakes R&D projects in diverse realms of iron & steel technology under the categories of Basic scientific Research, Plant Performance Improvement, Investigation & Consultancy Assignments, Equipment & Instruction Design and Major Technology Development. RDCIS has more than 300 dedicated & competent scientist and engineers and its laboratory is equipped with around 350 sophisticated diagnostic research equipment and 6 pilot plant facilities. The major efforts of RDCIS are directed towards cost reduction, quality improvement and value addition to products of the SAIL plants and providing application engineering support at customers end. Along with the steel plants, RDCIS has recently taken initiatives to pursue multi-disciplinary large projects with an aim to improve overall performance of the plants and to develop special steel products for prospective customers. RDCIS also offers technological services to organizations in the form of know-how transfer of technologies developed by it, consultancy services, specialized testing services, contract research and technology awareness pragrammes.

SAIL SAFETY ORGANISATION

SAIL Safety Organization(SSO) at Ranchi monitors and guide the activities for promotion of operational/fire safety and occupational health services undertaken at the different plants/units of the company. SSO formulates and prepares appropriate safety policies, procedures, systems, action plans, guidelines etc., and follows up their implementations, thereby helping in providing an accident free work environment. Consistent efforts are also being made by SSO for competence building in the area of safety management through HRD inventions covering heads of shops, line managers, 51

safety personnel and trade union leaders. The emphasis is now on systematic approach to safety management. A multi-disciplinary Safety Engineering Department exist in each of the steel plants and mines to look after their safety needs. SSO also manages the Secretariat of the Joint Committee on Safety, Health & Enviornment in the steel industry(JCSSI), a bipartite forum which addresses safety, health and environment issues in steel plants and mines with active involvement of their managements and central/plant level trade unions. The JCSSI also provides guidelines to its member organizations like SAIL, Tata Steel, RINL, HSCL, Dasturco, etc., on promoting safety, occupational health and pollution control measures.

CENTRE FOR ENGINEERING & TECHNOLOGY

The Centre for Engineering & Technology (CET), an ISO9001:2000 certified unit , is the design, engineering & consultancy hub of SAIL. It is also the nodal agency for acquisition and lateral transfer of technologies pertaining to iron and steel within the SAIL plants and units. Headquartered at Ranchi, CET has sub centers at Bhilai, Durgapur, Rourkela, Bokaro, Burnpur and Bhadravati, Unit Offices at Bangalore, New Delhi and Kolkata and an IPSS Secretariat at New Delhi for formulation of interplant standards for the steel industry. A solution provider for all projectneeds, CET has been rendering a complete range of services not only to the SAIL steel plantd but to various other clients both within and outside the country as well. The range of services provided by CET include conceptualization, project reports, project evaluation appraisal, project consultancy, design and engineering and project management. CET has been providing its services in all the areas of iron and steel making including in the related areas like mine planning and development, infrastructural development, industrial piping, industrial warehousing, material handling system, industrial pollution control and environment management systems. Water supply and sanitation, town planning, small power projects, etc.

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MANAGEMENT TRAINING INSTITUTE

Located in Ranchi, SAILs Management Training Institute (MTI) has an established reputation as a provider of management education, training , consultancy and research in HRD. With its emphasis on transfer of learning to actual job situations, it aids improvement of organizational performance. Accredited with ISO9001:2000 certification, MTI is committed to enhance the managerial competence of its customers through continual improvement in the quality of academic and related support services. MTI design and delivers appropriate HRD interventions to fulfill the managerial development needs of senior executives of SAIL and other companies. Considered as one of the finest inhouse facilities of its kind in India, it organizes and monitors companywide training schemes, coordinates regular training audits using documented training standards and conduct network meetings for selected important programmes. MTI also undertakes management research for diagnosing organizational issues and provides consultancy services in the area of management, organizational development and HRD within India and abroad. MTI also offers some selecyed programmes to executives of other organizations. MTI has conducted programmes for NTPC, NNTC, NALCO, Tata Steel, CPCB, MICOR(Egypt) and National Methanol Co. (IBN SINA), Saudi Arabia in the recent past.

ENVIORNMENT MANAGEMENT DIVISION

The Environment Management Division (EMD) is a corporate unit monitoring and facilitating the environment management and pollution control activities in the SAIL plants/units. Headquartered in Kolkata, EMD is certified with ISO9001:2000. Some of the EMDs main activities are updating the corporate environmental philosophy and implementing companies Enviornmental Policies adopted in June,1996; identifying areas of environmental concern in the SAIL plants/units, developing implementation strategy for mitigating measures and monitoring the execution of the projects ; conducting the performance of the pollution control devices 53

installed in the plants and evalution of the emission/discharge data; monitoring air, water and noise qualities of RMD group of mines as per the State Pollution Control Boards stipulations; conducting environmental awareness training programmes for plants/mines personnel at MTI and CPTI; internal evaluation of SAIL plants project proposals from environmental angle and according environmental concurrence; and coordinating with the Central and State pollution control authorities/ministries.

GROWTH DIVISION
Growth Division (GD) in kolkata functions as a nodal agency for manufacture and supply of various spare parts and equipment to the SAIl plants by utilizing available inhouse facilities and vendor base. The main objective of GD are effective utilization of captive engineering facilities of each steel plant; providing technical help to manufacture specialized equipment to cater to present requirement as well as long term expansion and modernization; and undertake projects within SAIL plants or outside.

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SWOT ANALYSIS

STRENGTHS
Brand Name Large Distribution Network Wide product offering at different price points Economic products Encouraging exports Awarded many awards Economy with technology

WEAKNESS
Lack of in house R & D New model introduction limited Dominance mainly at certain specific level only

OPPORTUNITY
Rise of Indian middle class and small cities A booming steel industry Rising exports

THREATS
Many players fighting for the same cake Entry of new players Cannibalism

55

DATA ANALYSIS

56

ANALYSIS OF DATA
1. Domestic Steel Sales by technology

Resin 0.5%

RO 20% Iron remover 1%

RO 34% Resin 0.5% Iron remover 2% UF 1% Chlorine 3% Softnizer 3%

UF 1% UV 63% Chlorine 14% Softnizer 1%

UV 57%

Volume 740,000 pcs

Value $ 117 Mn.

Eureka Forbes Aqua guard range dominates the market with 65% share in UV purifiers. HLL is the sole player in Chlorine based water purifiers currently launched only in TN market. In Resin based water purifiers Ion exchange dominates the market with 88% share. Softenizer & Iron remover for potable water filtration, Ion exchange controls 88% market.

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2. Domestic water purifier By players

HLL 14%

Ion Exchange 4% Kent RO 3% Usha 3% Alfa 2% Jaipan 2% Eureka 54%

HLL 2%

Eureka 51%

Ion Exchange 6% Kent RO 6% Usha 4%

Kenstar Others 2% 18% Power-H2O 1%

Alfa 2% Jaipan 1% Kenstar 2% Others Power-H2O 2% 21%

Volume 740,000 pcs

Value $ 117 Mn.

Eureka Forbes is strong in UV water purifiers, it has widest range of offerings. Ion Exchange strong in RO & resin based systems. Permioincs dominates in Ultra filtration (UF) systems. In Iron removal units & softeners Ion exchange & Morf India is a major player. Others include 160+ players like Luminous, Waterdoc, Sumeet appliances, Millipore, Hi-tech, Moniba, Sintex,etc.

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3. Domestic water purifiers: Comparative pricing

TECHNOLOGY HIGH

20 Organized players 60 + Unorganized players

RO

UF

Ion Exchange dominating the market 4+ Unorganized players

UV

Resin
PRICE LOW

3 Key players Kent RO is upcoming player No local player PRICE

Chlorine
15 Organized players 35 + Unorganized players

HIGH

HLL Sole player Recently launched in Tamilnadu market LOW TECHNOLOGY

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4. Institutional Segment: Sample Frame

Total No of Respondents : 100

F & B Units 6% indus trial units 28% Corporate 20%

Hotels 14%

Educational institutes 11% Malls 5% Airports 5%

Hospitals 11%

The major of the Corporates in areas like Delhi & Mumbai use 20/ 25 liters mineral water jars. The Small and medium size hotels prefers Point of use water filtration systems. In Big Hotels (5 Star) Potable water filtration system is the part of complete water treatment plant. Hospitals mainly use complete water filtration plant Potable filtration system is a part of it. Airports uses Point of use water filtration systems Major brand are Aquagaurd and Zero B. Most of the educational institutes in C grade cities directly uses supply water for drinking purpose. Large & Medium size Industrial units has complete water filtration plant, however small units uses Domestic range of water filtration systems. Food & Beverage units use complete water treatment plant Potable water filtration system is the part of it.

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5. Technology Usage

Type of Water Filters Used

POE 27.0% Resin 8.0%

RO (Reverse Osmosis) 30.0%

UV (Ultra Violet) 35.0%

UV water filtration systems are having good installed base, but RO systems are aggressively replacing the UV system market. POE Includes: Water softener, Activated carbon filters & Point of Entry RO & UV Plants. Resin based water filters are Preferred in B & C grade cities, due to lower costs.

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6. Purchase Details
77% of the respondents have either received sales call or a visit from the company, but only 23% have bought Through Dealers or Franchisee, there are chances of respondent becoming aware of the water filters by these sales calls. Majority of sales in Corporates & Educational institute segment through sales call. Sales in airport segment is through tenders Directly by the company. Institutional users prefers to purchase directly through the company.

No 23 %

From the sales Person 30 % Directly from the Co. 45 %

Yes 77 %

Franchises 4 %

Dealer 21 %

Sales Call/Visit from Company

Where do they buy Filters from

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7. Installations

Co. service personnel 55%

Private plum ber 4% Others 1% Dealer 30%

Service on call basis 25%

Service by private persons 5% Self service 15% Others 5% AMC 50%

Franchise 10%

Who did the Installations?

Current Service Engagement

Installation in majority of the cases done by company service personals. AMC service is available after warranty period. In Industrial & hospital segment, users prefers their own technical team. Corporates, Educational institutes, Airports uses AMC services through suppliers or Dealers. Average cost of AMC differs on Technology & category of product used. 4 to 6 service calls are made per year excluding services on immediate calls.

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8. Purchase Criteria

When asked about the key features the consumer is looking for while buying the water filter, the following where the result found, as can be seen quality is the most important feature an user is looking for while buying the product, followed by brand image, price & performance respectively.
Quality Brand image Price Performance After sales support Warranty Technical support Aesthetics Installation facility Delivery Sales person Presales service Range of products 0 6.7 6.6 5.7 5.3 4.7 4.5 4.3 4.2 4.1 5 10 15 20 25 9.4 9.4 11.5 23.6

Points given out of 100

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9. Expectations

Top 5 expectations on PRODUCT Product performance Product quality Design and compactness of the product Durability Brand name Top 5 expectations on SUPPORT Faster response Good sales service Monthly visit/ call to check on the product Better after sales service Personnel 32% 19% 9% 9% 5% 37% 22% 15% 10% 7%

Top 5 expectations on COMMERCIAL TERMS Competitive price Cash discounts Facility for payment to be made in installments Facility for credit system Better Warranty periods Top 5 expectations from the SUPPLIER Good Service Timeliness Relationship/ partnership Personnel attitude Delivery on schedule 16% 12% 11% 10% 10% 48% 13% 11% 4% 4%

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FINDINGS AND OBSERVATIONS

66

FINDINGS AND OBSERVATION:

The project revolves around the traders of Naraina Trade New Delhi, Faridabad Trade and Ghaziabad Trade. The survey was conducted over 7-8 Iron & Steel traders dealing in steel Beams & Columns of each Trade. A variety of questions were asked ranging from market size, primary and secondary players, major competitors, where does JSPL H-Flanges Beams and Columns stand in comparison to ISMB, additional benefits provided by other companies, sizes in demand, consumption of steel beams and column of size 200 and above etc. It was found that Quality of H-Flanges Beams and Column is comparatively high and it was adopted by all the traders. Also at the same time 90% of traders said that for them Quality means sale. 60% traders feel that JSPL produces odd sizes as compared to existing ones m the market. Customer shows little hesitation in buying sections that arent ISMB sections. There is a common felling in the market that loss of taper has reduced the strength of the product. 70% sales accounts for products of primary manufacturers like SAIL, JSPL, VSP etc. The rest 30% the Beams and Column is sold of secondary players among them MAHAMAYA, VANDANA and PRAIKASH holds the maximum share. Due to non-availability of raw material certain manufacturers, primary or secondary arent producing their sections. Hence, at present JSPL is the leader in sales. 90% of Traders seeked for additional facilities like

67

 Turn over discount (provided by SAIL) Interest free Credit (by SAIL) Quality discount (by SAIL) Pen, keychain, calendars etc for sale promotion (ESSAR) Authorized Dealers. Post-sales service (if any) Monthly turnover of Trade is between 3200-3500 tones for total structural and JSPL has approx. 35% share in the Naraina Trade. Some companies have their offices at their manufacturing units and also in or nearby places.

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CONCLUSION

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CONCLUSION
For Traders Quality means SALE

OEMS & STRUCTURAL CONSULTANTS &DESIGNERS The market research and market awareness program revolves around 5-6 top most builders, promoters, investors of Delhi and NCR like IJNITECH LTD., DLF IJMVIERSAL LTD., OMAXE CONSTRUCTION LTD. JAI KRISHAN ESTATE (P) LTD, ANSAL BUILD WELL LTD etc. It also includes 8-9 valued architects, planners, and designers like VASTUMDHI, MODERN (INDIA) ARCHITECTS, S. GHOSH AND ASSOCIATES, DIMIENTIONS ARCHITECTS, and AJAY BATRA ARCHITECTS etc. A variety of questions were asked like the area they deals in Academic institution, corporate architecture, factory, industrial projects etc, What all points you consider while using Beams and Column quality, easy availability, costs time of delivery etc, You prefer using or suggesting Primary player or Secondary players beams and column which one and why, have ever used or suggested H-flanges beams and column 80% of builders and contractors deals in academic and residential architecture Almost all the builders prefer RCC structure over Beams and Columns Everyone knew about Jindal and there was 70% awareness of product hot rolled parallel flanges beams and column among builders and constructors. Among Architects and Designers there was sufficient awareness of H-Flanges beams and column but only 40% knew about JSPL Hot rolled parallel flange beams and column. 70% of builders felt the loss of taper has reduced the strength.

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 15% of architects felt while 85% had sufficient knowledge about the strength of internationally approved H-Flanges beams and column. For builders easily availability and cost effectiveness is the priority for using beams and column. For architects quality and easily availability is the prime measure for suggesting beams and columns. For Government projects and size 200 and above primary player is taken into use and among them SAIL & JSPL dominate. Till the end of the project 6 out of 10 architects recommended H-Flanges beams and columns.

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RECOMMENDATIONS

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RECOMMENDATIONS
Frequency of Trade visit by the concerned people should increase. Proper steps should be taken to bring about a change in the feeling that loss of taper has reduced the strength. In comparison with Naraina & Ghaziabad Trade, there was little awareness in Faridabad. So company should increase its marketing effort in the city. Local players have their manufacturing units close to Delhi and can give the delivery in one or two days from the day order is placed. Primary and secondary players have their dealers and agents in Delhi and NCR who are regularly in touch .with the market and provide details of sections in demand to the company beforehand. And above all, traders are company customers and customer are seeking for value addition in terms interest free credit, quality discount, post-sale service etc the company should include certain steps to develop better customer relation.

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ANNEXURES

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ANNEXURES
QUESTIONNAIRE-A
(For Traders) This questionnaire is designed with the objective of analyzing the role of Traders in booming the companys sale. 1. NAME 2. LOCATION 3. Who are the Primary players of Steel Beams & Column and their distributing agent? 4. Who are the Secondary players of Steel Beams & Column and their distributing agents? 5. Monthly consumption of size 200 and above in tones? 6. What is the awareness of JSPL H-Flange Beams & Column in market? a. Good b. O.K. c. Poor If so, any suggestion ........................................................................ .............................. .......................................... 7. What are the Merits of JSPL H-Flange Beams & Column over competitors? a............................................................................................................................ b........................................................................................................................... c........................................................................................................................... 8. What is the De-merits of JSPL H-Flange Beams & Column over competitors? a............................................................................................................................ b........................................................................................................................... 9. Who holds the maximum market share and the reason behind it? a............................................................................................................................ b...........................................................................................................................

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QUESTIONNAIRE-B
(Architects and Builders) This questionnaire is designed with an objective to analyze the awareness of JSPL HFlanges Beams and Column between Builders, promoters, Planners, Architects and Interior Designers. 1. 2. 3. NAME LOCATION Deals in 4. 5. Academic institution Corporate architecture Factory Industrial Projects

What are the points you consider while using Beams and Column Quality Easy availability Costs Time of delivery

You prefer using or suggesting Primary player or Secondary players beams and column. Which one and Why........................................................................ .............................................................................................................................. ..............................................................................................................................

6.

Have ever used or suggested H-flanges beams and column Yes No

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If yes what is the performance level 7. Beams Very good Good O.K Poor and Good Moderate Low Column to Builders and Architects

Response scale after explaining the benefits of Hot Rolled Parallel Flanges

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BIBLIOGRAPHY

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BIBLIOGRAPHY
BOOKS
Kotler Philip, Marketing Management, New Delhi, Prentice Hall Of India Private Limited, 2003 Kothari C.R. Research Methodology, New Delhi, Wishwaw Prakashan Gurgaon Chamber of commerce & Industry Post Box No. 2 Khandsa Road, Gurgaon., Haryana Tel: 95124-2370303, 2370404 Various magazines, news letter on iron and steel industry

WEBSIDE ADDRESS

www.indiasteelpower.com www.google.com www.jindalsteel.com www.yahoo.com

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