PRESENTATION ON

‘’ONLINE AUCTION OF SECONDARY PRODUCTS’’

BHILAI STEEL PLANT

BHILAI STEEL PLANT

COMPANY PROFILE

SAIL is India's largest steel producing company.

With a turnover of Rs. 49,350 crore.

It is among the seven Maharatnas of the country's .

Central Public Sector Enterprises.

SAIL has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.

There are five Integrated Steel Plants of SAIL.

Five integrated plants of SAIL

Bhilai Steel Plant (BSP) in Chhattisgarh.

Durgapur Steel Plant (DSP) in West Bengal.

Rourkela Steel Plant (RSP) in Orissa.

Bokaro Steel Plant (BSL) in Jharkhand.

IISCO Steel Plant (ISP) in West Bengal

BHILAI STEEL PLANT

Ten time winner of the Prime Minister‘s Trophy.

Bhilai Steel Plant (BSP) is the flagship unit of Steel Authority of India Limited (SAIL).

 It produces high strength Rails, heavy structural, wide and heavy steel plates of different grades, merchant products, wire rods etc.

Bhilai has unique distinction of producing cleanest rail in the world.

Bhilai became the first integrated steel plant in the country to surpass the 5 MT mark in crude production in the year 2005-06

PRODUCT-MIX(TONNES/ANNUM)

Semis 5,33,000

Rail & Heavy Structural 7,50,000

Merchant Products(Angles, Channels, Round & TMT bars) 5,00,000

Wire Rods (TMT, Plain & Ribbed) 4,20,000

Plates (up to 3600 mm wide) 9,50,000

Total Saleable steel 31,53,000

ONLINE AUCTION

It is a service in which auction users or participants sell or bid for products or services via the Internet.

Virtual auctions facilitate online activities between buyers and sellers in different locations or geographical areas.

SAIL doing auctions through its department known as mjunction.

mjunction is joint venture of Tata Steel & SAIL.

METAL JUNCTION

MJUCTION started at 2001.

3rd largest e-commerce company.

Steel e-sales division.

Enables big as well as small consumers to buy steel directly from large corporate.

Generating simplicity.

Efficiency into the process.

It also helps e-sale of minerals such as iron ore and by-products generated from the steel making process.

SECONDARY PRODUCTS

Its is made from same raw material from which primary products are made.

Chemical composition is same only change in dimension is occurred .

SECONDARY PRODUCTS are sold through auctions.

In Bhilai steel plant auction is handle by with help of marketing department.

The whole pricing strategies is developed by marketing department of Bhilai steel plant.

The secondary product is stored in MRD department and disposal department.

Mjunction is only conduct auction.

          

                      

                       

DIFFERENT MILLS

MATERIAL RECOVERY DEPT DISPOSAL YARD

MARKETING DEPT

PRICE RESERVE COMMITTE

TENDER COMMITTEE REJECT

MJUNCTION

SALES ORDER

PAYMENT

MJUNCTION

DELIVERY ORDER

SOME IMAGES OF SECONDARY PRODUCTS

This is STEEL PLATE is which distortion occurred.

Secondary Product kept in MRD Department batch number is written over it.

TENDER FILLING PROCESS (PAGE-1)

TENDER FILLING PROCESS (PAGE-2)

uploading of auction document

in SAIL/ Mjunction site

inspection of material by

customer within 4 days befour

auction

payment of EMD amount 1 day befour auction

reserve price fixed 1 day prior to

auction

AUCTION DAY

tender commitee meeting , next day

of auction

sale order issue (of lot passed) same

day or next day of tender commitee

meeting

payment to be made within 7

working days of issue of sale order

material to be lifted within 14

days from issue of delivary order

extension can be given for the 7

days on customers request

THE AUCTION PROCESS

Swot analysis

Strength• It has country wide network of stockyards and dockyards.• Consistency in quality• Customer perception• SAIL products has international standards• SAIL maintains a better customers relationship approach

Weakness• Quality of the products is slightly inferior as compared to the Competitors who are having the latest technology• Not consistent to meet the market demand with its supply• Inconsistent delivery of secondary steel products regarding SAIL of BSP

Opportunities • Due to its wide network,SAIL can easily fulfill the demand of customers.• SAIL has a very strong base it can diversify.

Threats• Main threats are its competitor’s like-TISCO, RINL, ESSAR STEELS, JINDAL STEEL INDUSTRIES LTD.• Obsolescence of existing technology• High cost of input.• Tight money market situation

ADVANTAGE OF ONLINE AUCTION

No fixed time constraint.

Flexible time limits.

No geographical limitations.

Offers highly intensive social interactions.

Includes a large numbers of sellers and bidders.

Encourages a high-volume online business.

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