STRATEGIC PLANNING AND PRODUCT

POSITIONING OF STAINLESS STEEL INDUSTRY IN

NEW GLOBAL ENVIRONMENT

(A Case Study of Jindal Strips Limited)

Dissertation submitted for the Degree of

Master of Philosophy

In

Commerce

Under the Supervision of: Submitted by:

Dr. M.R.Bansal Pinki Jain
Lect. in Commerce Ref. No. 61558
Bhagwan Parshu Ram College Class: M.Phil (Commerce)
Kurukshetra
 University Centre for Distance Learning (UCDL)
Chaudhary Devi Lal University, Sirsa

UNIVERSITY CENTRE FOR DISTANCE LEARNING

CHAUDHARY DEVI LAL UNIVERSITY
Sirsa Haryana

Dated ..

CERTIFICATE

It is to certify that Ms. Rajni Goyal has completed her M.Phil

Dissertation, entitled STRATEGIC PLANNING AND PRODUCT
POSITIONING OF STAINLESS STEEL INDUSTRY IN GLOBAL
ENVIRONMENT under my supervision. This project has been
completed for the award of the degree of M.Phil and it is fit for the
submission for evaluation for the award of M.Phil. degree.

Dr. Renu Sharma

Lecturer,
S.D. College, Ambala
 Dedicated to

My Respected papa Ji (Mr.

Rajinder Goyal)

& Mummy Ji (Smt. Aruna

Goyal)
 PREFACE

In India, like other developing countries countries stainless steel Industries

oocupy a position of pride in terms of volume of output, exports and employment.
The environment is becoming increasing competitive, throwing fresh challenges to
Indian Industry. Stainless Steel Industry is also facing tough competition. But
despite extremely stiff competition, the markets of stainless steel have been
showing signs of economic recovery. Stainless Steel exports have increased by
31% in quantitative terms.
Stainless Steel is an environmentally friendly material & the most appropriate
one of the sustainable developments because it does not degrade during the life of
the product. It is also 100% recyclable. Stainless Steel has achieved worldwide
recognition for its corrosive resistance & for its easy to clean/hygienic surfaces.
The liberalization of the Indian economy has resulted an addition in foreign
investments in consumer durables, food processing, breweries & distilleries & heavy
industries. The foreign collaborators invariably bring with them their technology &
quality specifications, which more often than not, involves the replacement of
alternate material with stainless steel.
 The chemical processing, oil % gas, petrochemicals & food processing
industries are all expanding in a way to meet increasing demands. Naturally, a lot of
stainless steel will go into these sectors.
Stainless steel production in India is rapidly growing every year. Today 75%
of the end use market of stainless steel is still in kitchen segment. Now 95% of our
gas-stove market uses only stainless steel. India has emerged as the largest
producer of 200 low nickel stainless steel in the world. Annual production is nearly
5,50,000 tonnes of 200 seris steel which is 70% of total production of stainless
steel.
Keeping in view the increasing use of stainless steel in various sectors of the
economy and enhancing demand of the product of the stainless industry the
researcher has selected the topic Strategic Planning and Product Positioning of
Stainless Steel Industry in Global Environment for her project work.

ACKNOWLEDGEMENT

I am unable to find words to adequate beauty & meaning that could even
fractionally, express my deep sense of gratitude & genuine regard for my Supervisor
Dr.Renu Sharma, Lecturer in S.D.College, Ambala Cantt for his entire co-
operation,guidance. Iis due to his uncanny knock of touching & pointing out the root
of the problem, that it has been possible to complete this work.
My words would not suffice to express my deep gratitude to my
father,Mr.Rajinder Goyal and my Brother Pankaj Goyal,Kurukshetra who not only
blessed me but helped me also in completing the project and also extended his
moral support & enabling guidance.
I express my sense of gratitude to Shri Ratal Jindal for his M.D.of JSL, for
allowing me all co-operation at various levels within the industry which has been the
base of the project.
Other than the above mentioned my project work was not possible to get the
face and shapes virtually without the invariable and constant help of the library of
Aggarwal Samiti.
 Finally, what one can say in appreciation of the role of my family
members,must enivitably play in such an undertaking. My all family members have
given sincere encouragement and whole hearted support in completion of my work.

Rajni Goyal

CONTENTS

PAGE NO.
CHAPTER 1
INTRODUCTION

Strategic planning.
Product positioning.
Globalisation
Indian steel scenario
Past scenario.
Present scenario.
Future scenario.
Steel Global scenario

CHAPTER 2
STATUS OF INDIAN STAINLESS STEEL INDUSTRY

Steel Authority of India Ltd.

 Uttam Steel Ltd.
Essar Steel Ltd.
Mukund Steel Ltd.
Role of JSL in Indian Stainless Steel Industry.

CHAPTER3
CORPORATE PROFILE AND SWOT ANALYSIS OF JINDAL STRIPS
LTD.

Capacity and performance of JSL.

Group structure of JSL.
Strenght, weakness, opportunity and Threats of JSL.

CHAPTER 4
RESEARCH METHODOLOGY

Research objectives.
Research Methodology.
Significance and Need of the study.

CHAPTER 5
APPLICATIONS OF STAINLESS STEEL

Consumption pattern of Stainless steel.

Factors Affecting the Product Positioning of stainless steel.

CHAPTER 6
MARKETING STRATEGY OF JINDAL STRIPS LTD.

Production.
Marketing Mix of JSL.

CHAPTER 7
CONCLUSION AND SUGGESTIONS

Conclusions.
Important suggestions.
ANNEXURE

ANNEXURE-1
ANNEXURE-2
ANNEXURE-3
ANNEXURE-4
ANNEXURE-5
ANNUXURE-6
ANNUXURE-7
ANNUXURE-8
ANNUXURE-9
ANNEXURE-10
ANNEXURE-11

BIBLIOGRAPHY

STRATEGIC PLANNING

Strategic planning sets the long-term direction of the organization in which it

wants to proceed in future. It provides a sense of direction to the enterprise. It
defines the manner in which the strategic resources of the organization are to be
deployed.

Strategic planning is the process of deciding on objectives of the

organization, on changes on these objectives, on the resources used to attain these
objectives & on the policies that are to govern the acquisition, use & disposition of
these resources. *

Strategic planning is a process of deciding where an organization wants to

go and how it will get there. It involves understanding environmental opportunities
and threats and strength and weaknesses of the organization. It connects these
strengths and weaknesses to the perceived opportunities and threats.

Examples of strategic Planning:

As strategic planning in an organization may be : Planned growth rate in

sales, diversification of business into new lines, type of products to be offered, & so
on. This way, strategic Planning encompasses all the functional areas & long_term
framework of economic, political, technological &social factors.

Strategic planning involves developing a strategy for long survival and growth
of the product. Each company makes the strategic planning to increase the life of
cycle of product and to face the competition in the market. Strategic planning is also
must for the betterment of the positioning of the product in the domestic market and
global market. It consists of four steps:-

(i) Defining the companies mission;

(ii) Setting objects and goals;

(iii) Designing a business portfolio and

(iv) Developing functional plans.

STRATEGIC PLANNING OF STAINLESS STEEL INDUSTRY

The stainless steel sector has undergone structural changes in the post
liberalization era forcing the existing stainless steel producers to modernize,
upgrade, cut-costs and to adopt modern technologies to tackle the emerging
competition from within and out side major stainless steel exports. The stainless
steel producers had acquired the much-needed exposure to international
competition.

STRATEGIC PLANNING OF STAINLESS STEEL SERVICE CENTRES

 To keep pace with the impact of globalization; e-commerce; consolidation;
pricing; quality standards and other critical business trends; steel service centre
institute (SSCI) has implemented a comprehensive strategic plan to chart the
stainless steel industrys future.

As part of our new economy, service centres must continue to introduce new
business strategies in anticipation of sharper worldwide competition and soft profit
margins. According to recent forecast conference, The focus was to provide both
SSCI members and other business leaders with market-specific assessments in the
areas of stainless steel supply and demand.

It is also safe to say that many ongoing business developments in the

stainless steel industry have sparked a chain reaction which describes as the Five-
O formula expressed as under :-

* Nichols, Eugene H.Mc. : New Strategy for Steel Service Centres, www.
Steeltime.com

1. Overproduction:- There exists a fundamental imbalance between the

products and services available worldwide and potential to consume them.
Last year, stainless steel production and imports were both too high at a time
when the economy was cooling.

2. Overcapacity:- A global glut of advanced production facilities and excess

service capabilities have assured that the imbalance are likely to remain.
Today, stainless steel is a varied market that includes the global appliance
industry, with the conditions differing significantly depending on the product
mix of the individual service centres.

3. Open Markets:- The stainless steel industry is challenged as an integral

part of the supply chain to increase its overall value proposition, maintain
 cost containment and have enough funding available at the end of the
business year to invest in better technologies.

4. Over population:- A population of 6-billion-plus in which half the workers

make $ 2 per day, allows companies to dip into a global labor pool of
inexpensive help on a frequent basis.

5. Online:- The internet has facilitated the creation of purchasing alliances that
gives business and stainless steel industry the ability to secure the best
deals on manufacturing and raw materials procurement.

EXPECTATION FROM THE POLICY MAKERS OF STAINLESS

STEEL INDUSTRY

It is strongly felt that the govt. should levy additional customs duty/dumping
duty for second and defective stainless steel products (Cold Rolled and Hot Rolled)
to faced this threat. Also since the use of such products is internationally not
accepted, import of seconds and defective stainless steel should be removed from
the Open General License (OGL) list. Other non-tariff measures could be setting up
a minimum floor price for the import of seconds and defective material. It is also
expected from the policy makers that strategic planning should be such type, which
face the competition in ythe market and may make a sound position in the market.

STRATEGIES OF STAINLESS STEEL INDUSTRY

The stainless steel industry has adopted following strategies:-

1. Restructure strategy:- The restructuring strategies of the government is to

encourage plant mergers and the takeover of smaller, loss- making works by
larger profitable ones. This strategy is a risky one. The also raved loss
making plants could easily drag down the new entity and hit profits that would
otherwise be used for new investments.
2. Growth of Export strategy:- Exports are very valuable for every country as
far as its foreign exchange reserves are concerned. The rapid growth of
export business within and outside the country, as a result of liberalization,
has thrown open the door to good job opportunities for the person trained in
the exports transactions. Stainless steel Industry in India can increase
exports with major focus on China, which still imports 70% of its total
requirement of 1.4million tons. The 200 series developed in India has
potential in every developing country including value added products like
pipes and Tubes and kitchen utensils India also has good facilities for
stainless steel long products like bar, wire rod and wires which has good
prospects in USA and Europe.

3. Strong Relationships with customers:- Building and maintaining strong

relationship with key customers is a strategy of stainless steel industry.
Technological exchanges between customers and the companys operations
are strange then their working relationships.

4. Improvement in Productivity and Quality:- Now-a-days stainless steel

industry is very careful to improve productivity and quality of its products. To
gain a competitive advantage, productivity improvements are strategic in
nature to optimize operational flexibility while meeting the needs and
demands of customers.

5. Low Cost of Production:- Lowering cost of production will thrown

enhancement and promotional activities will enable steel to be positioned as
viable alternative to other matter closely with consumers to help find optimum
solutions will enhance the use of steel in general. Making steel with in remote
areas and catalyzing building of infrastructure are some activities which
would start a positioning development. The potential of India as a market has
already been recognized by international companies.
 PRODUCT POSITIONING

Product positioning is the act of seeking, placing and optimizing the product
of something in relationship to the competition and surrounding environment.
Product positioning is the mixture if two separate words-product and positioning.
Therefore to understand the meaning product positioning we have to understand
the separate concept of product and positioning.

Product :- A product is a bundle of utilities consisting of various product features. It

is a bundle of physical services and symbolic particulars expected to yield
satisfaction on benefits to the buyers.* The important fact is that product is mid-point
of all marketing activities. The bundle of utilities or the physical and psychological
satisfactions that the buyer receives is provided by the seller when he sells a
particular product. The customer does not buy merely the physical and chemical
attributes of a product. He is really buying want satisfaction. He will buy a product
which can offer hom expected satisfaction. In other words, what a buyer buys is a
mixture of expected physical and phycholoigical satisfactions. Therefore, the term
product does not mean only the physical product but the total product including
brand,package, label, status of manufacturer and distributor and services offered to
the customer, in addition to the physical product.

According to Philip Kotler.A product is anything that can be offered to a

market for attention, acquisition, use or consumption that might satisfy a want or a
need.

Classification of Products :- The products can be classified into following two

ways :-

1. Consumer Products

2. Industrial Products

* Kotler, Philip: Marketing Management

A- Consumer Products :-These products are of three types :-

(i) Convenient products

(ii) Shopping Products

(iii) Specially Products

B- Industrial Products :- These products are of following four types :-

(i) Fabrication products

(ii) Equipment products

(iii) Supplies products

 (iv) Raw products

Positioning :-

Positioning is based on a theory that strategy can only be planned in the

mind of the consumer, not the marketplace positioning is most important strategic
responsibility because it makes or breaks a company or product. Basically,
positioning is a strategy game of capture the concept. In other words, it is the
study of how the mind indexes the brands. Positioning strategy directly affects
market share.*

Types of positioning :-

There may be several types of positioning, which are given below :-

1. Product positioning

2. Advertising positioning

* Smith, Mark E.: Positioning Theory, www.hourglass.com

3. Brand positioning

4. Image positioning

5. Market positioning

6. Competitive positioning

7. Price positioning

8. Corporate positioning

9. Channel positioning

10. Career positioning

Product Positioning :-
 Product positioning deals with reality. It is a great comparison of product
features. New product development usually tries to create product differentiation
using quality control and production efficiency. The objectives of product positioning
is to capture a high-ranking position by optimizing the resources.

Product positioning includes to creates the image of product in the minds of

customers. It also inclines to available the products according to the needs of
customers, and to give best quality at right price, at right place and at right time.*

Product positioning is the act of seeking, placing and optimizing the product
of something in relationship to the comprtition and surrounding environment.
Product positioning is the mixture of two separate words-product and positioning.
Therefore to understand the meaning product positioning we have to understand
the separate concept of product and positioning.

* Smith, Mark E. : product positioning, www.hourglass.com.

Product positioning of stainless steel products :-

The Diversification of the consumption of stainless steel in new emerging

areas needs a successful and effective strategic planning for the betterment of the
positioning of the produce in the present global market of stainless steel. Product
positioning of stainless steel products in domestic and global environment may be
of following types:-

1- MARKET POSITIONING :- Market positioning is a trend analysis. Market

place dealing with the macro market forces as economic, political,
competitive, distribution technology, infrastructure and culture forces of
 various categories. Now-a-days, the user or the application areas of stainless
steel has increased so market positioning is very important positioning.

2- PRICE POSITIONING :- Price positioning is about perceived value. Price

also becomes an indicator of value to many customers. Being a industrial
product, price positioning of stainless steel products has also important
value.

3- CORPORATE POSITIONING :- Corporate positioning deals with perception

of an entire company. In many ways it is similar to product positioning but the
objectives is to great and transfer an image for an entire company.

4- IMAGE POSITIONING :- Image positioning of stainless steel products is an

evolution of advertising into total marketing communications. An integrated
marketing portrays a consistent image over all mediums creating a complete
identify including identifying trademarks functional attributes, emotional
attributes and distinctive imaginary.

In the product positioning of stainless steel products, it is great problem that

an image that exists in the media does not always transfer into the mind. It is easy
to create an image but hard to transfer.

GLOBALISATION

The world economy has been emerging as a global or transactional

economy. Globalisation is a process of development of the world into a single
integrated economic unit. Globalisation is an attitude of mind. It is a mind-set, which
views the entire world as a single market so that the corporate strategy is a based
on the dynamics of the global business environment.

In other words, globalization means adopting a global outlook for the

business and business strategies aimed to enhancing global competitiveness.
Companies in the global outlook Stop thinking of themselves as national marketers
who venture abroad and start thinking themselves as global marketers.

DRIVERS OF GLOBALISATION :-

In general, globalization represents the increasing integration of the world

economy based on five interrelated drivers of change* :-

(i) International trade

(ii) Financial Flows

(iii) Communication

(iv) Technological advances in transportation, electronics and related fields.

(v) Population mobility, especially of labour.

GLOBALISATION OF STAINLESS STEEL INDUSTRY

Steel Industry is a booming Industry in the whole world. The increasing demand for
it was mainly generated by the development projects that have been going on along
the world especially the infrastructural works and real estate projects that has been

*Sullivan, john D. :Preparing in the Global Economy, Economic Reform Today,

No.1,202.

on the boom around the developing countries. The Asian Countries have their
respective dominance in the production of the steel all over the world. India being
one among the fastest growing economics of the world has been considered as one
of the potential global steel hub internationally. Over the year particularly after the
adoption of the liberalization policies all over the world, the world steel industry is
growing very fast.*

NEED OF GLOBALISATION OF STAINLESS STEEL INDUSTRY

 Need of globalisation of Stainless Steel Industry can be understood in the
following way :-

(i) Doing, or planning to expand, business globally.

(ii) Giving us the distinction between the domestic market and foreign
market and developing a global outlook of the business.

(iii) Locating the production and other physical facilities on a consideration

of the global business dynamics, irrespective of national
considerations.

(iv) Basing product development and production planning on the global

market considerations.

(v) Global sourcing of factors of production, i.e. raw materials,

components, machinery/technology, finance etc. are obtained from the
best source anywhere in the world.

(vi) Global orientation of organizational structure and management

culture.

*Tata steel Final 13714930.

GLOBAL TRENDS OF STAINLESS STEEL INDUSTRY

The Indian Steel industry, in line with global trends, is at a cross roads witnessing a
resurgent phase of modernization, expansion and consolidation, mainly through
mergers and acquisition. Powered by an increased demand for steel from
neighbouring China, which has been clocking a 15% sectoral growth annually an
account of construction projects in preparation for the Olympics, the steel industry In
India has grown by about 10% in the past two years, compared with the global
growth rate of about 6% a year.*

STRATEGIES FOR GLOBALISATION OF STAINLESS STEEL INDUSTRY

We can divide these strategies in following four parts :-

1. PRODUCING THINNER, STRONGER STEEL :-

According to this strategy the stainless steel industry should move up the
value chain for delivering high value-added products. In production terms,
this means producing thinner, stronger steel as well as a greater proportion
of coated products, to add more value to production.

2. TO SCRAP INEFFICIENT PLANTS :- The second visible trend is to scrap

inefficient plants. By reducing the capacity overhand, this eases supply
pressures and there is a likelihood of price rise which would offset the
mistake of the past.

3. SCRAPPED PLANTS AT A BARGAIN AND THEN TURN THEM AROUND:-

The third visible trend is the strategy followed to pick up scrapped plants at a
bargain and then turn them around. Ispat international has become the
worlds largest EAF steel producer by picking up inexpensive stainless steel
assets at throwaway prices and then reworking the plant to make it
operationally efficient.

* Indian Steel Industry -13714930 Tata steel Final

4. TRY TO LOOK INWARDS INTO THE LOCAL MARKET:- The fourth visible
trend is try to look inwards into the local market rather than export or imports.
This is clearly seen in the synergy between the strategies pursued by China
and Japan.
 INDIAN STEEL SCENARIO

At present India is the tenth largest producer of steel in the world. In India a
major part of steel is consumed in engineering applications, followed by
automobiles and construction. The growth of steel, as well as is know, is dependent
upon the growth of the economy, Industrial production and infrastructure sectors.
 With the liberalization of the Indian economy, a number of industries like food
processing, transportation, heavy industries, pharmaceutical sector etc. are using
stainless steel in vast quantities for varied application which will further heighten the
potential of this new age material. The thrust area of stainless steel today includes
Architecture, Building and Construction, Indian Mint, Indian Railways and
Transportation in general.

Stainless steel is a value added steel and one of the most visible metal
alloys. Low long-term maintenance costs, durability, less environmental impact and
greater concern with life cycle costs make it the preferred choice of project
designers and engineers worldwide. Today only stainless steel has the strength and
dynamism to arrest the trend of plastic in various market segments and bring the
market back to steel family.

The metal industry in the world is quit old. Steel has a very specific place in
the metal industry. Almost 85% of all metals produced in the world accounted for
steel alone. This shows the relevance of steel both in terms of tonnage and
versatility of its quality in industrial application.

PAST SCENARIO

During the last four decades the Indian iron an steel has made significant
progress in a planned manner. Besides seven integrated steel plants, India today
has more than 160 steel producing units with crud steel production of around 18
million tones from these installations.
 India is one of the earliest manufactures and users of iron and steel in the
world. Till 18th century iron and steel making in India was at par with that of Europe
in the form of village crafts. The scene totally changes with the invention of
Bessemer process in 1856 and the basic open-hearth process in 1878. These
developments led to significant increase in the world steel production.

The modern Indian steel industry is due to J.N.Tata who made pioneering
efforts in setting up steel plants on modern lines in 1907. In 1981, the Indian iron
and steel co. started at Hirapur near Asansol. In 1936, this company acquired the
Bengal iron and steel co., Mysore iron and steel works came into existence in 1918
with a charcoal blast furnace at Bhadravati. With these three plants India produced
finished steel and attained more or less self-sufficiency in steel just prior to
independence in 1947.

After independence, in the first five-year plan, the govt. of India decided to
raise the ingot steel capacity by installing three integrated steel plants. Thus
Rourkela, Bhilai and Durgapur steel plant were setup.

PRESENT SCENARIO

Presently in India we have major public sector stainless steel producer SAIL,
having 5 stainless steel plants under its umbrella. We also have the large private
sector steel plants, which has undergone expansion and modernization recently.
 Besides these, there are a large number of mini mills utilising scrap and
sponge iron and producing various categories of finished products of stainless steel.

Many other producers of quality stainless steel have also come up in the
secondary sector. Of which few industries based on product categories can be
divided into the following:-

Flat Stainless Steel Products:- SAIL, Tata Steel, Essar Steel, Ispat Industries and
JVSL are the major producers of hot rolled coils(HRC) SAIL, Tata Steel, Ispat
Industries, Jindal Strips Ltd., Uttam Steel and Bhusan Steel are the big producers of
cold rolled coils/sheets(CRC)and galvanized sheets (GP/GC).

Long Products:- RINL, SAIL and Tata steel are the major producers of long
products.

Alloy Steel Products:- Mukand, Mahindra ugine and kalyani carpenter are some of
the largest producers of alloy steel in the country, which is primarily used, in
automotive, and engineering applications.

Based on the routes productions, the industry can be classified into the following
categories:-

Integrated Producers:- SAIL, RINL, Tata Steel and JVSLare the largest primary
steel producers.

Secondary producers:- Essar steel, Ispat Industries of Lioyds steel are the largest
producers of steel through the secondary route.

FUTURE SCENARIO

The environment is becoming increasingly competitive, throwing fresh

challenges to Indian Industry. The domestic scenario shows definite signs of further
improvement in stainless steel sector. Demand is up in sectors like construction,
commercial vehicles and passenger cars. All this well for the future of stainless steel
in India.

Demand for better and better quality stainless steel by consumers will
increase due to more and more automation in processing technology. Also
increased global competition will demand attention towards marketing aspect of
stainless steel. The Indian steel industry should, therefore innovate with respect to
product positioning, distribution and promotion and quality to survive in an
increasing competitive market.

The stainless steel Industry in India has a bright future with 75% of the usage
coming from domestic kitchen segments alone which includes utensils etc. However
the use in industrial and other segments is comparatively low which is indication a
huge increase in the coming years.

Modernization and technological up gradation of the existing facilities is a

more economical way for growth. Liberalization of economy, flow of international
technology, delicencing of steel sector, including iron and steel in high priority
industries with attractive facilities for Foreign investments will contribute significantly
in upgrading the rank of our country among the front line steel producers of the
world in the coming years.

STEEL GLOBAL SCENARIO

The biggest boom in history of steel industry is that of the 1950s and 1960s
when the steel industry was driven by the post-war boom in the developed world.
Where as the current boom is being led by growth in the developing world,
particularly china, India and Brazil. Instead, the china factor is huge and gives the
impression that the boom has a broader basis than it actually has. In 2005, China
produced 349 million tones of crude steel, according for almost one third of global
steel output. Even this was not enough to feed the countrys appetite for growth. It
was the biggest importer of steel and the sixth biggest exporter of steel in the world;
in 2005, its net imports amounted to 12million tones and its consumption of steel
also amounted to a little less than one-third of the world consumption in Asia,
increased from 41%in 1999 to 57% in 2005.

INDIAN STAINLESS STEEL INDUSTRY

Stainless steel is an environmentally friendly material and the most

appropriate one of the sustainable developments because it does not degrade
during the life of the product. It is also 100% recyclable. Stainless steel has
achieved worldwide recognition for its corrosive resistance and for its easy to
clean/hygienic surfaces.

The First Global Market Development Forum for stainless steel established in
1988 in London, an Australian company shared their experience of introducing
stainless steel auto LPG tanks in the country. Some time later, salem steel plant
(SAIL) approached the Bureau of Indian standards (BIS) and set the ball rolling to
have an Indian standard for the product.

Besides this there is a large number of small group of companies of stainless

steel as _ Essar company Ltd. Ispat Industries Ltd., Uttam Steel Ltd., Mukund Ltd.,
Bhusan Strips Ltd. Etc. Jindal Strips Ltd. is a large producer of stainless steel.

In the Indian stainless steel industry the main producers of stainless steel are
following :-

STEEL AUTHORITY OF INDIA LTD. (SAIL)

Steel Authority Of India Limited (SAIL) is the leading steel making company
in India. It is fully integrated iron and steel maker, producing both basic and special
steel for domestic construction, engineering, power, railway, automotive and
defence industries and for sale in export markets. It produced 9.5 MT of stainless
steel 8.5 MT of pig iron in 2002. Steel can be made in two ways-from primary
minerals or secondary process i.e. re-cycling scrap along with sponge iron. Primary
steel making entails higher initial capital cost and lower variable cost, whereas
secondary steel making process involves lower capital cost but higher direct cost.
Key inputs in primary steel making are iron ore and the same in the secondary
process are scrap/sponge iron and electricity.

SAILS International Trade Division (ITD), in New Delhi- an ISO 9001:2000

accredited unit of CMO, undertakes exports of Mild Steel Products and Pig Iron
SAILS five integrated steel plants.
Ownership and Management:- The Government of India owns about 86% of
SAILS equity and retains voting control of the company. However, SAIL, by virtue of
its Navratna status, enjoys significant operational and financial autonomy.

Financial Review:- The Financial Year 2008-09 started on a positive note with steel
demand and price reaching historic peaks. However, this upward trend for the
global steel, Industry was halted by the impact of a downswing in economic
activities and got reflected in the sharp decline in production by almost all the major
steel producers of the world in the second half. Though steel demand in the country,
which slided downward from September 2008, picked up from january2009 but
prices continued to remain low. A new record in achieving turnover of Rs 48,681cr.
During 2008-09 registering a growth of 7% over previous year.

Production Review:- The year 2008-09 has been unprecendented for steel
Industry Initially, the steel market showed increased demand and buoyancy in
prices along with sharp rise in input prices, followed by a sudden drop in the
demand since October,2008 due to overall slow down in the economy. SAIL- Plants
produced 12.5million tones of saleable steel, achieving 113% capacity utilization
during the year.

Sales and Marketing Review:- During the financial year 2008-09 company
achieved sales of 11.315million tones steel in spite of steel decline in demand from
sept.08. Exports of steel were limited to 2.5lakh tones to improve availability of steel
in the domestic market, during Apr.-Aug.08 when steel prices were very high. Sales
of special steel which constituted 29% of total domestic sales record 8% growth
over last year.

There was a significant increase in the sales of wire rod, structural plates, HR
coils, GP/GC sheet, pipes and railway material. The product mix was continuously
reoriented to keep pace with market demand. Hot rolling coils for cold reducing
segments etc. enabled SAIL to maintain and achieve larger market share in value
added segments. SAIL has endeavored to expand the customer base by entering
into Annual Tie up with major customers and project Authorities.

Raw Material :- During the year 2008-09, the prices of raw materials were at
unprecented peak. Coking coal in the coal blend and advancing part shipment of
imported coking coal for 2009-10, delivering period, which was at substantially lower
price as compared to price for 2008-09 delivery period, to Feb-March 2009. Select
plants by producing about 24.43million tones during 2008-09. The production of
limestone and dolomite from captive mines was at 2.45million tones. The
Production of coking and non-coking coal was at 1.015million tones during 2008-09.

Marketing of services:- Value of the order booked by SAIL consultancy division

SAILCON during the year posted an impressive increases of 71% over the last year
order indicating growing confidence of the customer in SAIL expertise and service.
In addition to the stainless steel Industry was also received and entry was made in
to Oman. The client appreciated SAILCON service and entrusted it with more
assignment.

Joint Venture:-

NTPC SAIL Power company Pvt. Ltd (NSPCL) : A 50:50 joint venture between
Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd.
(NTPC Ltd.), manages the captive power plants at Rourkela, Durgapur and Bhilai
with a combined capacity of 314megawatts (MW). It has installed additional
capacity by implementation of 500 MW(2 x 250MW units) power plant at Bhilai. The
commercial generation of 1st unit has commenced in April 2009 and 2 nd unit is likely
to start commercial generation by July 2009.

Mjunction Services Limited : A joint venture between SAIL and Tata steel on
50:50 basis. This company promotes e-commerce activities in steel and related
areas. New added services includes E- Assets sales, Events and conferences, coal
sales and logistics, publication etc.

International coal ventures private Limited : Towards achieving the target of

making steel PSUs self reliant in the area of coking coal, a joint venture company
has been incorporated comprising of five central PSU companies i.e. SAIL
Rashtriya Ispat Nigam Limited (RINL), coal India Limited (CIL), NTPC Limited and
NMDC Limited. The company is scouting for coal properties in Australia,
Mozambique and other target countries.

Major units:-

Integrated steel plants

i. Bhilai Steel Plant (BSP) in chattisgarh

ii. Durgapur steel plant (DSP) IN West Bengal

iii. Rourkela steel plant (RSP) in Orissa

iv. Bokaro steel plant (BSL)in Jharkhand

v. IISCO Steel plant (ISP) in West Bengal

Special Steel Plants

i. Alloy Steel Plants (ASP) in West Bengal

ii. Salem steel plant (SSP) IN Tamil Naidu.

iii. Visvesvaraya Iron & Steel plant (VISL) in Karnataka

Subsidiary
 i. Maharastra Electrosmelt Limited (MEL) in Maharashtra.

Growth Plan:-

Considering the fast growing demand for steel, the company is currently
implementing growth plan to enhance its Hot Metal capacity from the level of
13.8million tonnes progressively to 26.2million tones. Under the ongoing phase-1 of
modernization and expansion plan, Hot metal production capacity will get expanded
to 23.46million tones by 2012.

The state-owned Steel Authority Of India Limited (SAIL) also understand a

major exercise to retain its position as the leading integrated steel producer in the
country. The steel behemoth announces, its CORPORATE PLAN-2012. Envisaging
an outlay of Rs37,000 crores to upgrade its plants and modernize its operations.
Under the plan, expansion programmes are under way in various SAIL units to
enhance the total production capacity to 22.9million tones of hot metal present
12.5million tones by 2011-12.
UTTAM STEEL LIMITED
HISTORY:-

Uttam has crossed several milestones in its journey from a small beginning
with 30,000 MT per year of galvanizing capacity in the year 1985 to more than
750,000 MT per year capacity for galvanizing today. It has gone for backward
integration to cold rolling of steel and also for down-stream value addition such as
colour-coated products etc.

The plant has facility of cold rolling HR coils, with a capacity of 1,000, 000
Tons/Year and Galvanizing of 750 000 Tons/Year. It does additional value addition of
color coating on CR or Galvanized coils.

All these facilities are also supported by a service center, which tailor makes
the coils to customer requirements by slitting & cutting and by delivering sheets/
coils to customer specifications

The company is The 1650mm Super Galvanising Line is the widest line in
India. This adds to the product range capability making UGSL probably the only mill
in the world having galvanizing range from 0.13mm to 3mm thickness under one
roof.

Four cold rolling mills that consist of one 4-hi mill, two 6-hi mills (One Twin
Stand) and one 20 Hi mill, which can handle thickness of 0.15mm to 2.5mm and a
width up to 1650 mm. The total capacity of all these mills together is 1,000,000
MT/Year. All these mills are supported by HR side slitters, three hi - speed
continuous pickling line, skin passes and stretch leveling facility .
Turnover of Uttam Steels Ltd:-

Company has achieved a turnover of Rs. 4509.75 Crores as

againstRsRs.3288.47Crores in the previous year. Company has recorded Profit

Before Tax of Rs.101.36crores as against Rs. 124.33crores in the previous year.

Company has recorded the highest ever sales Turnover during the year.
 Owing to expansions and importance of timely execution of projects, coupled

with poor outlook of global economy, Board opinion that cash flow should be

conserved and hence has decided to plough back earnings for the being % not to

recommend dividend payout.

Export strategy of company:- The company has been following an export

lead growth strategies. It has given returns of sizeable quantum. To put it
statistically, the export growth has risen by 140% over the previous years export.
Realisation of margins is also slowly catching up with the selective approach in
export strategies on case-by-case basis. The company has successfully made its
entry in USA and Western Europe by regularly exporting its C and GP Products.

Company has exported to 140 countries across the globe and continue to expand

its wings. This year, company has serviced 333 export cusomers across the world,

of which 81 are new receipts of Uttam products. Inspite of global slowdown and

severe deterioration of apparent demand, our long term customer base has been

maintained globally and company has exported its highest ever quantity(in excess of

4,20,000 MT) in the Financial year 2008-09.* Company has registered growth in

exports to Europe by 50% & to USA by 27% mainly due to change in product mix

which came out of the new 64" Super Galvanizing Line (SGL).

Finance policy of company:-

As an exercise to improve profitability the company has initiated discussions

with ICICI to examine various means and ways to reduce interest and financial cost
in the light of latest trend in Financial Restructuring Prevalent in corporate systems.
Action has been initiated to reduce interest burden on bank finance also.
* Uttam-Annual-01092009 Final.
 ESSAR STEEL LIMITED

ISO 9002:-

The company is proud to announce recognition for its quality management of

products by virtue of ISO 9002 certificate for all its three plants.

Essar Steel, part of Essar Group, is a fully integrated flat carbon steel
manufacturerfrom iron ore to ready-to-market products. Essar Steel has a current
capacity of 4.6 million tonnes per annum (MTPA). Its products find wide acceptance
in highly discerning consumer sectors, such as automotive, white goods,
construction, engineering and shipbuilding. Essar Steel produces highly customised
products catering to a variety of product segments and is Indias largest exporter of
flat products to the highly demanding US and European markets, and to the growing
markets of South East Asia and the Middle East. It has invested in downstream
capabilities to evolve from being a product based company to becoming a value
added service provider. It has a global network of retail steel outlets, called Steel
Hypermarts, and offers services, like cutting, slitting and blanking of steel sheets,
through specialised Steel Service Centres worldwide.c

Essar Steel is close to achieving financial closure for its Rs 6,500 crore
second steel plant at Hazira, Gujarat. With the new plant to have capacity of 3.9
million tonne a year, Essar's total steel manufacturing capacity will go up to 8.5
million tonne. And, this will make it the largest steel maker in a single location in the
country.

The plant is being set up under the aegis of Essar Steel (Hazira) Ltd - a part
of the Essar group. The plant will produce long as well as flat products. The
feasibility of the project has been done by Mecon For the project the company has
acquired some initial equipment from INI Steel, Korea. It expects to implement the
project within 36 months.
 Over the last two decades, the Essar group has acquired substantial
expertise in setting up and operating a large integrated steel plant. The Hazira
location, where the project is coming up has the advantage of easy access to the
already well-developed infrastructure at the existing steel plant and availability of
key resources such as a captive port, power, natural gas and water. The layout of
the plant has been planned keeping in mind the need for smooth and uninterrupted
movement of raw materials and dispatch of finished products.

Domestic

Essar Steel's complex at Hazira, Gujarat, India is ideally located to serve

major domestic markets. Its location in Western India places it close to the highly
industrialised western region of India, home to the bulk of the demand for hot rolled
steel flat products. Major cold rolling mills and galvanizing mills, along with a host of
other industries including the automobile sector, oil and refinery installations, white
goods, general engineering, pipes and tubes are located in this region.

Essar operates the widest Hot Strip Mill (HSM) in India (2000 mm)

Houses the only mill in India offering skin pass material for high end steel
applications
 Cold Rolling Mill is strategically located adjacent to the Hot Strip Mill, yielding
significant competitive advantage.

There are certain customised lots and manufacture dimensions that only
Essar can produce to world-class quality standards. It has successfully replaced the
high-value, high-quality imports for cold rolling grades in the country and currently
enjoys a healthy market share. Essar's quality in boiler, API, corrosion resistant and
pressure vessel grades are well established in the domestic market.

Export policy of company:-

The company is the largest exporter of Hot Rolled coils for the fourth
consecutive year. The company developed several new segments in the overseas
market such as HSLA grade. API grades steel and wide width coils. The main
objectives is to fetch premium over the base grade steel and prevent crorion of price
realization during the downturn.

Expansion plan:-

Essar caters to a wide segment of industries that include infrastructure,

engineering, pipe making, and power among others. Essar has pioneered steel
retailing concept in India and has about 100 retail outlets across the country. We
target to achieve 25 per cent of total sales from this segment

Doubling the steel capacity from 4.6 million tonnes to 9 million tonnes at
Hazira. We are also setting up a 5-metre plate mill and a pipe mill. We expect that
25-30 per cent of the steel we produce will be consumed by downstream
businesses. We are looking at various distribution channels to penetrate
consumption points to boost our sales volume.
.
 MUKUND LTD

The history of Mukand Ltd is the history of its resilience, continual renewal
and resurgence. Mukand Iron & Steel Works Limited, re-christened Mukand Ltd.' on
and from March 23, 1989, was registered on November 29, 1937. The Company
then operated re-rolling mills and foundry in Lahore and at Reay Road, Bombay.
Two years later, Lala Mukand Lal who had the controlling interest in the Company
and had been doing constructive social work under the guidance of Mahatma
Gandhi, expressed his desire to leave the Company. The Mahatma asked Jamnalal
Bajaj and Jeevanlal Motichand to take over the Company which was then under
serious financial strain. They did so after some persuasion, in 1939.

Mukand Ltd. was the first in India to successfully adopt the vacuum oxygen
decarburisation technology for the manufacture of stainless steel. It was also the
first in the country to install an oxygen top and bottom blown converter for the
manufacture of stainless steel, there being only three other plants in the world that
used this technology.

Mukand's steel plant is the fourth in the world to introduce the easy draw
continuous cooling' system for wire rods.

Leadership in steel technology:-

Mukand Ltd.'s leadership in steel technology is built on a long history of

pioneering, kept alive by adaptive absorption of advanced technology's sustained
in-house research and development. It . was the first in India to successfully adopt
the vacuum oxygen decarburisation technology for the manufacture of stainless
steel. It was also the first in the country to install an oxygen top and bottom blown
converter for the manufacture of stainless steel, there being only three other plants
in the world that used this technology.
Export of the Company:-

The exports remained similar at Rs.1.63bilion as a compared to

Rs.1.75billion in the pregvious year.

Turnover of the company:-

The sales and other income of the company remained almost same at
Rs.21.50billion as against Rs.22.01billion on the previous year, despite the global
meltdown. The company is in the process of installing* a 15MW captive power
plant utilizing flue gases generated from the newly installed mini blast furnace to
reduce the cost of power by about 60% and it hopes to commence generation
power from this unit from November2009. The company has also acquired land for
its project for a captive coke oven plant which is expected to be completed during
FY2011.

Mukand Ltd.'s track record of unique firsts' in machine building in India

include :
The largest India-designed and manufactured gantry crane of 80-tonne capacity
and 60-metre span, with mono box girder and under slung trolley

Four girder ladle crane

Computer-controlled crane

Ship loader and ship unloader

A 34-metre long and 4.2-metre dia. rotary dryer, the largest now in use in Asia (for
Southern Petrochemicals Industries Corporation Ltd.)

* Annual report of Mukund 2008-09.

A 40-metre high structure that moves on wheels, weighing about 700 tonnes, with
multi-level folding platforms and remote-controlled doors for vertical assembly of
augmented satellite launch vehicle (ASLV) a vertical workshop' with an array of
electronically controlled equipment at various levels for the Indian Space
Research Organisaion.

Open gantry area : 6,000 sq.mtrs.

Role of JSL in Indian stainless steel industry

In the Indian stainless industry Jindal Strips Ltd. Is successful in integrating

the different states in the manufacture of stainless steel. Everything from the
conversation of raw material into billets and slabs, to hot rolling of strips, plates and
cold rolling was done in JSL.

JSL is Private sectors first DD and EDD grade Mild Steel Wide
Strips:-

To make Deep Drawing (EDD) grades of steel is no mean task. It calls for
technology of highest order. In the private

In The Indian Stainless Steel Industry The Role of JSL:-

In the Indian Stainless Industry Jindal Strips Ltd. Is successful in integrating

the different states in the manufacture of stainless steel. Everything from the
conversation of raw material into billets and slabs, to hot rolling of strips and plates,
and cold rolling was done in JSL.

JSL is private sectors first DD and EDD grade mild steel wide strips:-
 To make Deep Drawing(DD) and Extra Deep Drawing(EDD) grades of steel
is no mean task. It calls for technology of highest order. In the private sector, jindal
were the first to master it. Jindals Vasind (Bombay) plant, where such steel is
made, is one of the largest in the country.

Besides this jindal have established a 15000 ton capacity sponge iron plant
at Hissar. Jindal were the first to develop an indigenous Argon Oxygen
Decarbonisation (AOD) converter. Jindal have also pioneered Indias first continous
slab casting machine and Indias first Hot steckel Mill to produce hot rolled stainless
coils.

The list of Jindal break through is almost limitless. That is why from the
industry point of view it has become axiomatic to say : where there is a challenge ,
theres jindal. And If it jindal, it must be first class.

Whether it is designing and constructing a plant designing and engineering

machine etc. Jindal does it all in house all by itself. And this has enabled to it
respond qualitatively and cost efficient to market changes and opportunities

The Caring Spirit of Jindal Strips Ltd :-

Jindal were the first to introduce free housing subsidized meals, free
transport, medical benefits, recreational and other facilities for workers in the Hissar
Industrial belt. Jindal has also worked for the welfare of the community at large.
Jindal has made the aspiration of the town its own, specially in education and
health.
CORPORATION PROFILE OF JINDAL STRIPS LTD

Jindal Strips , now the largest producer of stainless steel in India, has its sight
set on brushing shoulders with the top 10 in the world. Jindal strips, the flagship
company of the Jindal group, has had to encounter two restructuring schemes.
Other than stainless steel, the company had power plants, a sponge iron plant and
a cold rolling facility.

Jindal In Earliar Days:-

In 1970 Jindal Strips Limited was established and mini steel plant was set up
at Hisar to manufacture coils and plates through the electric Arc furnace route. Near
about mid 70s huge chunk of Indias Stainless Steel requirements were met by
imports. The challenge was to produce high quality stainless steel at less the world
prices. In 1979-80, jindal were successful in using the Argon Oxygen Desalinization
converter, a stste of the art technology developed in house.

Jindal were also successful in integrating the different state in the

manufacturing of stainless steel.

As a result, everything forms the conversion of raw material into billets and
slabs; hot rolling of strips and cold rolling was done in house.
Jindal Strips Ltd :-

Indian Stainless Steel Development Association is currently working closely

with the bureau of Indian standards to get it as an approved standards grade with
AISI and ASIMC internation Standards of steel.

JSL has very little time to feel technological advancement in the field of
stainless steel. Manufacturing and processing have been taking place at a very
rapid pace and the advanced countries have been reaping profits by exploiting there
advances. To successfully remain in the competition the process of installation of
ISO-9001quality system and ISO-14001 Environment system T.P.M.etc. have been
observed and established.

Turnover of Jindal Stainless Ltd.

During year ended March31st ,2009, the company achieved a turnover of

Rs.5295.05crire and Net Loss after Tax and Extraordinary Item was Rs.579.82crore.
The detailed balance sheet, profit & loss account and other financial statement
forms part of this annual report.*

Performance of Jindal Stainless Ltd.

Jindal seeks Doors where other see walls
At Jindal, research is a self-imposed discipline, a challenge it has pursued
with a pioneers Zeal, exploring ideas, attempting breakthrough products and
processor.

For instance trading and adapting the latest in world technology anticipating
customer needs with CST efficient, reliable solutions and promoting engineering
skill and manpower caliber.

Jindals R&D investment is one of the highest in the industry together with its
R&D capability has given it a head start over the others.

Innovative Steps of JIndal Stainless Ltd.

With grouping competitions in the country, increased quality consciousness

of the consumers and the more importantly, the revolutionary liberal economic
policies of our country. JSL has very little time to feel complacement technological
advancement in the field of Stainless Steel. Manufacturing and processing have
been taking place at a very rapid pace and the advance countries have been
reaping profits by exploiting these advances. JSL has always been keeping its eyes
and ears wide open to these sea of changes and would never let opportunities of
continuing its leadership in the stainless steel sector to slip off. JSL has been
seriously working on revamping its entire set up. To successfully remain in the
competition the process of installation of ISC-9001 quality system and ISO-14001
environment system T.P.M. etc have been observed and established.

Sustaining Success: Key Points

INNOVATION

STRONG FINANCIAL DISCIPLINE

 COST COMPETITIVE MANUFACTURER

RIGHT MOVE AT AN EARLY STAGE OF CYCLE

CONSTANT CREATION/ADDITION OF VALUE

VALUED CUSTOMER BASE/RELATION

 SWOT ANALYSIS OF JSL

JSL is an industrial goods manufacturing company. It is a fact industrial

goods require marketing. SAIL, a public sector unit, has changed its goals and
strategies and has moved from the concept of sellers market to buyers market.
Jindal Stainless Steel has main emphasis on production and sales departments
rather than marketing department. From that it means that what has been produced
is to be sold. But if Jindal wants to compete in the domestic and international market
successfully it should change its outlook and way of functioning.

No Doubt JSL is a large producer of stainless steel. But there are some
strength and some weaknesses of JSL, which are following:-

Strengths of the Company:-

The company has gained a financial as well as operational strength due to its
specific achievements during the short span. Some important points supporting the
strength of the company are mark as follows

1. JSL has come very for from a single factory establishment strated in 1970.
Today JSL has seven factories under its wing. It is also largest integrated
manufacturer of stainless steel in India. It is single handedly meeting over a
1/3 of total demand for stainless steel in the nation with production capacity
of more than 4,00,000 TPA.

2. In 1996-97 they were awarded ISO-9002 certificate and it was renewed in

March,2000 and now it is also awarded with ISO-14001.

3. They are one of the major players in the steel sector and have a diversified
client base

They have adequate experience and expertise as an integrated steel producer

and have with stood the cyclic of fluctuations that have characterized the steel
industry in the past.

4 They are one of the low cost producers of Hot Rolled coils which forms a key
input for their CRM projects. They also use the corex-BOF route for making
steel which require less amount of coke.

5 They have sourcing arrangement with suppliers of power and oxygen which
reduces vulnerability to fluctuations in the prices of these raw materials.
Majors Reasons For Buying the Product From Company:-

There are following three reasons due the which different companies like to buy the
product from JSL:-

i. Good Quality of the product

ii. Low price of the product

iii. Good Market Image in the globalised scenario

Prime Consideration of Distributors/Dealers while Buying The Product:-

It has been observed and concluded during the study that the
distributors/dealers have primarily considered the following points while buying the
product of the company.

(i) Quality of the products

(ii) Service Commitments by the company

(iii) Delivery and payment terms

Various Advantages Enjoyed By JSL Over Competitors:-

JSL has certained specific characteristics as its product which has been
challenging the competitors and due to these specialties the competitors are
launching their scheme and changing their strategies to be successful in the global
market. The main peculiarities in Jindals product positioning are as follows:-

i. Better Finishing

ii. Better Quality

 iii. Brand Loyalty

iv. Consumer Oriented marketing strategies.

Weaknesses of company

The study will remain in complete without indicating the weakness of the
company so few weakness have also been highlighted along with the strength of
the company which are as follows:-

1. The debt/equity ratio or gearing is relatively high compared to some of the

other integrated steel producer in India.

2. The profitability of the company dependent on prices of key inputs such as

iron ore, coal and Zinc.

3. The company mitigated these risks by entering into strategies tie-ups/

sourcing contracts with raw material suppliers, any adverse fluctuations in
the input costs would affect the margin of the company.

4. Skilled labor is not trained up to the minimum standards.

5. Not so strong and transparent Marketing.

6. Delivery problem of goods is one of the major weaknesses.

Opportunities of company

1. Compared to the global per capita steel consumption average and the steel
consumption average for developed world. Indias per capita consumption of
steel is extremely low, to address this low consumption of steel the National
Steel Policy 2005 envisages steel production to grow at 7.3% CAGR to
110mtpa from the present levels of finished steel production at 38mtps. It
also envisages steel imports growing at 7% CAGR (compound Annual
growth rate) from the present level of 2mtpa to 6mtpa and steel exports to
 grow at 13.35 CAGR from the prevailing 4mtpa (Metric tons per annum) to
26mtpa leading to a healthy apparent steel consumption of 90mtpa by the
Financial year 2019-20, a 6.9% CAGR growth. Several initiatives taken by
government of India in the form of infrastructural development program as
such as the National Highway Development Programme.

2. The cold rolled products are used in the automobile sector. There is a major
opportunity for them to market their products on a large scale to the
automobile sector resulting from robust growth in the demand for
automobiles combined with stringent regulations on pollution control
pertaining to old vehicles.

3. India is perceived to be one of the manufacturing destinations for , steel

making globally and this may proper to meet the demand not only
domestically but also internationally.

Threats of company

1. The steel industry is charcterised by cyclical fluctuations in prices of finished

steel products as well as those of the key inputs. Any downward cyclical
movement in the steel sector could reduce the demand for steel and reduce
profitability.

2. Operating margins could come under pressure if there is a fall in the demand
for steel and increased in input costs. However, since JSW is one of the
lowest cost producer in the market they may still be able to maintain
reasonable operating margins for their products

3. .The Indian steel Industry is highly competitive. They face substantial

competition in the steel industry, both from Indian and International
companies. Domestic as well as international steel majors like Tata steel,
POSCO and Mittal Steel have announced play to set up manufacturing
 facilities in India. This could lead to excess capacity and consequently
downward pressure on the prices of finished steel products.
GENERAL IMAGE OF THE COMPANY
On visits to JSL the scholar met several authorities and personnel of the
company and made on attempt to have a survey about the general opinion and
views regarding the different aspects of the companies performance and
operational results and reached on conclusions. The general image of the company
has been expressed as satisfactory good and poor respectively. It is clear through
the following table:-
Element Satisfactory Poor Good
Product - - *
Pricing * - -
Delivery * - -
Payment Terms * - -
Service Commitment - * -

Jindal has the research and development department but their contribution
cannot be said to be satisfactory. The surface quality of stainless steel coils, flats
and M.S. Plates is found in rough surface and problems like search, scale pitting
and silvers are being experienced occasionally. Also there is a problem of thickness
variation in the finished product of the company. Thickness prone products cannot
get adequate market particularly in the present competitive era.

RESEARCH METHODOLOGY

Statement of problem;-

Stainless steel Industry is the basic industry for the development of any
economy. The infrastructure development, which is the backbone of industrial
development, depends upon the core industries, and Stainless steel is one of its
important parts. Prior to liberalization the industry has mainly focused on low value
areas and steel is used as one of the basic raw material for construction, Industrial
parts, Household products etc. With the increasing pase of liberalization and
globalization, the environment has opened new areas for its growth. There are
emerging opportunities in value added parts in India as well as global markets
products. To make use of the opportunities and to face the challenges, the industry
has to grow competitively. It is the right time for the Industry to change its focus
from low value production to value added products. This requires strategic planning
to prepare the industry for exploiting the opportunities. The present study will try to
explore how a steel company should decide its mission and prepare policies and
strategies to shift its focus to cater rich markets such as making steel for the
automobile industries, making steel for the white goods industries such as
Washing machines, Refrigerates, making auto components etc.

Keeping the above problem in mind, the researcher will focus more specially
on following objectives:-

Research Objectives

1. To give an overview of JSL & analyse it in the present environment.

2. To analyse the marketing mix of company.

3. To evaluate the marketing strategy of the company mission & objectives.

4. To conduct swot analysis of the company.

5. To analyse the product positioning strategies adopted by the company.

6. To study & analyse the trend of endues requirement of satainless steel

product.

7. To study the factors which affects the positioning of stainless steel products
in domestic & international market.

8. To study the problem faced by stainless steel industry.

 9. Offer various suggesions in current marketing strategy to improve the
position & to overcome various shortcomings.

Research Methodology:-

To attain the above objevtives and for getting first hand knowledge status of
Stainless Steel Industry in the new global environment, preliminary discussion had
been made with the managers, marketers and authorities of the industries in the
market. A survey about the positioning of stainless steel product had planned under
the study. The survey encompasses both the type of data i.e. primary and
secondary.

The secondary data from the official statistics, from books/articles in

journals/reports/dissertations and published and unpublished informations by the
Government and quarry from Government agencies. Independent organizations are
also the source of information.

Statistical method had been applied for interpretation of data in order to

make the results more effective and meaningful. As far as the period for
data/information related to study is concerned, efforts would be made to
universalize and to make it updated with current situation.

Need and Significant of the Project:-

The study will help in better understanding of the stainless steel business
environment. The company will be able to understand the emerging competition
areas, the customers requirements and the product market and buying behaviour
of customers, which can prove to be more fruitful. This project helps in making
familiar with market potentials, market share in design of market segmentation
study, distribution channel study etc. It also helps us in determine the competitive
information.
 This project will also helpful for consumers to know the various applications
of stainless steel and to know the main characteristics of stainless steel. The
consumers can know how the stainless steel is different from other steel. The
competition will increase in the market. It will be able to know the marketing mix of
company and the strategic, which are adopting for positioning in the domestic and
global market.

Scope Of The Project:-

After understanding the significance of the project it is must to describe the

scope of the project. Thus the scope of the project is as follows:-

1. Determination of Market Potential:-

The market potential is the total amount of a product or product group, which
could be sold to a market in a specified time period and under given
conditions. It is applicable in case of a new product, or an existing product to
be introduces in a new geographical market.

2. Study of Distribution channels:-

Market research can be used to determine the most effective and profitable
distribution channel for different types of products.

3. Determination of Competitive Information:-

Research can provide information on the marketing strategies used by

various competiting brands and unique selling proposition of each.

4. Product Research:-

Product Research can be used for evaluation of new product ideas and
testing for new product acceptance. Product Research is useful in testing for
product positioning.
5. Pricing Studies:-

It estimates the demand level at different prices. Such studies level those
limits for which customers are sensitive to price changes and provide
valuable dues to the market or in assessing the impact of price increase or
decrease in sales.

6. Common Behaviour Research:-

This type of the research can be used to know:-

1. Who customers of the product are?

2. Where the customers located?

3. The motivation of customers to purchase the brand of product.

4. Buying behaviour pattern in terms of identifying sources of information and

influence the sequence of purchase Decision.

5. The part purchase satisfaction level of customers.

CONSUMPTION PATTERN AND VARIOUS APPLICATIONS OF

STAINLESS STEEL

The first cost of stainless steel was used for the production of cutlery knives
in the year 1913. Subsequently the First World War was broken out in 1914 and it
found its application in the fighter plane components and various defense
equipments. Gradually the stainless steel applications invaded in almost all areas of
our home, office, industry, service and almost all sectors of human life.
 As on today stainless steel is being used from kitchen stoves to nuclear
reactors, bicycle component to spacecrafts, coins to large marine ships, orthopedic
implants to heavy structures, gynogenic equipments to high temperature furnace
components or any area you imagine you will find stainless steel in some form or
the other.

In the early 80s over 95% of stainless steel produced in India were being
used for the utensils, now gradually trend is positively shifting and as on today
about 80% goes for utensils and 20% goes for various industrial and service sector
applications. It means these there is tremendous potential of Stainless Steel
applications in areas of architecture, transportation, power generation, railways
mining etc.

THE FIELD OF IMPORTANT APPLICATIONS OF STAINLESS STEEL

ARE FOLLOWING :

A. UTENSILS SECTOR

Stainless steel utensils are the true consumption item in India and are used
across social, economic and geographical divides. Kitchen in middle class
households are dominated by stainless steel. Most of the storage boxes and cans,
all cooking vessels (including frying pans and pressure cookers), most of the sizes
of serving plates and cutlery are all made from stainless steel. It is estimated that
the average urban middle class household, especially in the south, easily have 30
to 40 kg or more of stainless steel household items.

Stainless steel products are common wedding gifts. Especially in the south;
these products help newly weds set up their homes. During Diwali, a very important
Hindu festival, a large tonnage of stainless household items changes hands in form
of gifts. Even corporate bodies use thousands of tones stainless steel as gifts for
employees.

B. KITCHEN SINKS AND GAS STOVE BODIES

 Although very much present in kitchen, they do not share the same history of
development as their counterparts in utensils. But, they have caught the imagination
of Indians. Until the late eighties, gas stove with painted carbon steel bodies and
latter the nickel-chromium plated ones, dominated the market. The stainless steel
bodies once introduce proved to be very popular because of their clean ability,
durability and competitive price. Now, almost 100% of our gas-stove market is
stainless steel.

The kitchen sink market for stainless steel made a very modest start in 1972,
but it began picking up only around 1984. Since then, especially in the last five
years or so, stainless steel has set itself to beat all competitive materials including
mineral resin composites, porcelain, marble, granite, etc., decisively. Kitchen sinks
also enjoy a very strong demand in the replacement market. Considering the
present trends, we are sure that future of the kitchen sink market is firmly in the
hands of stainless steel.

C. PROCESSING SECTOR

The Processing sectors (chemical, oil and gas, petrochemical, food and
beverage) are all expanding and naturally require a lot of stainless steel. The food
processing industry is critically important, as, unlike the developed world, India has
only recently begun manufacturing products like frozen and ready-to-cook foods.
The growth of this sector would lead to greater consumption of stainless steel. As
an indication of the projected growth of heavy industry, it is estimated that there will
be demand of over 103 millions tones for petroleum products, an increase of some
53%. This will of course require significant amounts of stainless steel. There are
presently thirteen refineries(state owned). The current domestic demand of
petroleum products is 67 million tones including 14 million tones import.

Stainless steel is widely used in paper industry to make grinder, water sprays
and showers, screening and dewatering equipment, cooking and washing towers,
pulper etc. The pulper is critical instrument in the paper recyling industry. It is a first
stage equipment, which literally makes pulp of waste paper raw material and has a
rotating component inside. The Jumbo pulper has been manufactured for ITC Ltd.,
Badrachalan, A.P. It is named Jumbo, as the units has a volume of 50 cubic meters
and uses stainless steel plates of 8,10,12,15,20 and 45 mm thickness.

D. AUTO INDUSTRY

The auto industry does not as yet use much stainless steel, but we anticipate
growth in near future, especially with exhaust systems. The reasons for this
optimism are government pollution control measures and the entry of North
American, European and far Eastern manufacturers into the Indian Market,
passenger cars are expected to grow from a base of 264,000 cars produced .* It is
expected that the quality standard of the developed world will eventually by applied
in India.

E. CONSTRUCTION AND ARCHITECTURE

As in developed countries India has also started using stainless steel for
solid construction and beautiful architecture. But this is only in the starting stage.
India has to go a long way in this field. So the demand of steel is going to increase
manifold with the growth of this sector.

* Financial Performance of JSL, www.indiainfoline.com

A bridge was built in 1993-95 in the town of Schaffhausen in Switzerland

crossing the river Rhine. Cognizance of the weakness of earlier designs and
consideration of future repairs and disruption costs led to the use of stainless steel
reinforcement for the vulnerable skin area of the splash zones, remedial treatment
and traffic disruption will be drastically reduced and maintenance minimized. The
critical performance requirements, which led to the specification of stainless steel,
were:

DURABILITY:
 Resistance to the effect of atmospheric corrosion and deicing salts over the
life the bridge of 80 years.

STRUCTURAL INTEGRITY:

To be maintained for the full design life.

MAINTENANCE:

To be minimized

Another examples is CPWD, Which has used about 70 tones of stainless

steel in the parliamentary Library building in Delhi. They have used stainless steel
for anchors, hand rails, domes and library furniture.

SESA Goa Limiteds corporate headquarters at panaji, eight storeys tall, has
used stainless steel for cladding the exterior walls (RCC Beams and columns
around the windows) sheets of S.S. 304 (0.9 MM thickness) were used for the
panels while the concealed fixtures for mounting the panels was of 430 grade. A
total of 12 tones of stainless steel was used in the building.

Stainless steel is highly preferable for hospitals. As stainless steel is highly

hygienic material and is durable, resistance to chemical reagents, easy to maintain
and is aesthetic in appearance.* It has also been used by many hospitals and

*Annual Report of JSL, December, 2008.

medical institutions for paneling of operation theater, intensive care units, wall trolley
height, scrub and toilet area for surgical instruments, sterilizers, disposable injection
needles, cots, bed pans, furniture, ducts etc.

Stainless steel has fascinated architects for its highly aesthetic appeal and
durability. Flexibility is design in considerably enhanced once the SS is coloured.
Now stainless steel items are produced in the form of tiles and plaques with
different designs, motifs and slogans.
MISCELLANEOUS

There are various other applications of stainless steel also:-

Playground slides

Hinges

Paper clips (stationery item)

Airport baggages trolleys

Furniture

Shaving blade

EMERGING TREND IN STEEL INDUSTRY:-

An increasing investment in infrastructure, construction and urbanization as

well as growth in automobiles, white goods and industrial sector is a further boost to
the optimum within the domestic steel Industry.

POWER:- Addition of 41,000 MW of power generating capacity between 2002 and

2007 and about 61,000 MW between 2007 and 2012 should drive steel off take,
leading to an incremental consumption of 0.4 million tones in FY 2006 itself.

ROADS :- The government intends to embark on the construction of 48 new

projects with a view to four lane about 10,000kms of roads in addition to the existing
ongoing programme of National Highway Authority Of India. With steel intensity in
the roads under construction being considerably higher than the legacy
infrastructure the outlook for increased steel consumption on this count appears to
be brighter.
HOUSING ;- Low interest rates and easy availability of housing finance has resulted
in a housing boom; the Housing and Urban Development Corporation intends to
add two million houses every year (35% in Urban areas), estimated to create an
additional annual demand of 0.6 to 0.8mtps of steel.

MALLS :- From 25 malls in 2003, India expects to commission more than 220 malls
by 2006 (estimated 40million sq. ft) and 600 malls by 2010 (100million sq. ft).

AUTOMOBILE AND ANCILLARIES :- In 2004-05, Indias auto industry consumed

about 2.8mt of steel (about 8% of Indias consumption). This is expected to grow at
11-12% over the next three years following Indias emergence as a global
outsourcing hub for the Auto Industry.

INDUSTRIAL PROJECTS :- Indias industrial growth is encouraging a number of

companies to reinvest leading to an increased consumption of steel, the steel
industry is expected to emerge as a major steel consumer itself. The positive out.

Special efforts to boost steel consumption in construction sector

To boost the consumption of steel in the country, particularly in the

construction sector, major stainless steel countries along with Government of India,
have come together to establish the institute for steel development Growth in
Calcutta. Some of roles of the institute are*

1. Creating an environment for better usage of Stainless Steel by acquiring and

disseminating knowledge about the practices.

2. Upgrading the skills of work force by offering better technical know how.

3. Creating awareness amongst potential users about benefits of steel usage.

4. Communicating the competitive of stainless steel Vis-a Vis other competitive

materials.
 5. Provide requisite thrust to increase steel consumption in rural areas.

Following actions have already been initiated :-

1. Distribution of metals bins at subsidized rates in different states of the

country.

2. Popularizing steel scaffolding in place of bamboo.

3. Designing of cycle driven trolley made of steel.

4. Designing and propagating the use of steel trunk body etc.

5. Fabrication and commercialization of stainless steel and GP/GC sheet water

tanks.

Sean Gupta, Sanjay: Development of Infrastructure essential for the growth of

Stainless Steel Industry, www.steelworld.com

CONSUMPTION OF FINISHED STEEL

In 1992, the total consumption of finished steel was 14.84million tones. In

2008 the total amount of domestic steel consumption was 43.925million tones. With
the increased demand in the national market, a huge part of the international market
is also served by this industry. Today, India is in seventh position among all crude
steel producing countries.

CONSUMPTION GROWTH

The NSP had conservatively estimated the countrys steel production to grow
by 7.3% with an annual consumption growth of 6.9%. Considering that the past two
years have already witnessed a demand growth of over 10%, the government
expects the healthy trends to continue during the Eleventh Plan period (2007_12),
provided an annual gross domestic product (GDP) growth of 9% is achieved during
the period as projected by the planning commission. Clearly the primary steel
producer, India is the place to be in as it has the greatest growth potential. There
are two other major factors. One, India is bestowed with the largest reserves of
high-quality iron ore in the world. Secondly the annual per capita consumption of
steel in the country is still one of the lowest in the world, at 35kilogram against the
global benchmark of 250-400kg. In effect the growth story in India is here to stay for
quite a few decades in view of the sheer disparity in consumption level.

If all the pledges materialize, the countrys installed steel production capacity
will surge to anywhere between 150million and 180million tones by 2014-15,
compared with the conservative NSP target of 110million tones by 2019-20

CONSUMPTION TREND : FORM WISE

Product Form Western World India

Cold Rolled Sheets and coils 57.00% 87.50%

Hot Rolled Plates and coils 18.30% 2.70%

Flat Products (57.00+18.30)=75.30% (87.50+2.70)=90.20%

Bars 9.50% 2.50%

Wire Rods 8.20% 6.40%

Semis 7.00% 0.90%

Long Products (9.50+8.20+7.00)=24.70% (2.50+6.40+0.90)=9.80%

Source:- International Stainless Steel Development Association (ISSDA)

S.S CONSUMPTION: SECTOR WISE

Application Sector World Average% India%

Catering 37.5 75.9

Construction 11.8 1.1

Transport 14.5 0.3

Process Industry 19.3 14.2

Tubing 12.1 1.9

Others 4.8 6.6

Source:- International Stainless Steel Development Association (ISSDA)

Consumption Trend of Stainless Steel In Domestic Marketing

The growth in domestic steel consumption is , by and large in keeping with

the International Iron and Steel Institute (IISI) forecast of a 10% increase in steel
use in 2006. While the IISI has projected the global demand for steel to grow by
4.95 in the medium term upto 2010, it has pegged its forecast for 2010-15 period at
4.25 annually for the entire world . The IISI Says India will lead the consumption
growth story with an annual demand of 7.7%, followed by China with 6.2%.

The Pattern of stainless steel end use consumption in India vis--vis the
western countries show an interesting comparison, which is as follows:-

Sector Western World India

Catering equipment 36.5% 75%

Construction 11.6% 0.5%

Process Industries 19.4% 11.0%

Welded and seamless tubes 11.8% 4.0%

Others 5.8% 9.1%

GLOBAL CONSUMPTION

World steel trade has expanded as global consumption has increased. In

1990 international steel trade was 167million tones and is forecast to grow to
353million in 2015. Global steel production has continued to increase but, at a
lesser rate of previous year. In 2005, the total world crude steel production was
1107.2million metric tons and was valued at over $700billion. This growth is
estimated to continue until 2015 at a rate of approximately 4% per year. Previously
from 1990 to 2000, the growth rate was only 1.6% per year.

Import and Export of Steel

Imports

India has been annually importing about 4.0 million tones of finished steel.
The imports mainly include hot rolled coils, cold rolled coils and semis. Import of
finished steel during 2008-09 (Provisionally was 5.72 million tones compared to the
7.03 million tones in 2007-08.

Exports

The total volume of finished (carbon) steel-exported during 2008-09

(Provisionally) was 3.66 million tones compared to the 5.08 million tones in
2007-08. Earliest exports consisted mainly of plates, structurals, bars and rods,
whereas now apart from these, hot rolled coils, cold rolled coils, colour coated
sheets, GP/GC sheets, Pig-iron and sponge iron are also being exported.

Important Role of ISSDA In increasing the Application Areas:-

Indian Stainless Steel Development Association (ISSDA) has identified the

new application areas like architecture, building and construction (ABC) and
automobiles, railways and transpiration (ART) which are the keys to increasing the
consumption of stainless steel in India, thus expanding on the extent of industrial
usage*. In the ABC sector, the basis of popularity for stainless steel could be as an
architectural material. In the building and construction sector, the prospects of
stainless steel reinforcement bars for concrete are good.

__________________________________________________________________

*R. Gopal : Market Development Initiatives of ISSDA, www.steelworld.com.

PRODUCTION, CONSUMPTION, EXPORT AND IMPORT OF

STEEL AND PIG IRON

Items 2005-06 2006-07 2006-07 2007-08

(April December)*

PRODUCTION

Finished Carbon Steel 48.9(10) 55.15(13) 39.29 41.7(6.1)

Pig Iron 4.69(45) 4.99(6) 3.67 3.96(7.9)

EXPORTS

Finished Carbon Steel 4.48(2) 4.89(9.3) 3.53 3.67(4)

Pig Iron 0.44(13) 0.71(61) 0.49 0.53(8.2)

IMPORTS

Finished Carbon Steel 3.85(82) 4.44(15) 2.94 4.7(60)

Pig Iron 0.03(-63) 0.03(0) 0 0.01

CONSUMPTION

Finished Carbon Steel 39.18(14) 44.33(13) 31.48 35.51(12.8)

Pig Iron 4.14(48) 4.34(4.8) 3.16 3.42(8.2)

Source: JPC
 FACTORS AFFECTING THE PRODUCT POSITIONING OF
SATINLESS STEEL PRODUCTS

What is product positioning for stainless steel Manufacturers

Positioning of stainless steel is altogether a different concept carrying distinct

in gradients within. It .As stainless steel is an industrial products and every time we
have to be less with the idea that our customer is not the consumer of the produce
so all the factors of positioning the product with aim to capture the market stands
different with what to the concept of the consumer product positioning.

In the stainless steel the product positioning is a strategy, which states

working from the initial stage of manufacturing the product. It is a essential part of
market forecasting and selling analysis without which we cant anticipate to stand in
the competition of market. The positioning generally means the strategy to mark our
product in the mind of the consumer, where as in the stainless steel the factors
which are important and which can effect to position the image of our product are as
under.

1. COST OF FUNDS :-

Setting up an internationally competitive steel mill in India require massive

investment in asset creation and for funding working capital requirements. If India
has to be a global player in the export market, it is essential that the component of
interest per ton of steel produced be kept to a minimum. And it becomes imperative
that steel makers are able to raise longer tenor and low cost debt. This will help
improves the competitiveness of Indian Steel Industry and help in positioning of
stainless steel in domestic and international market.

2. TECHNOLOGICAL UPGRADATION:

The developed countries have modernized their plants to optimize

productivity and produce more with reduced manpower. The technological
advances include moving away from the blast furnace route to other means of steel
scrap, the corex technology using non coking coal and iron carbide process of steel
making. These efforts have enabled the quality of the product beyond the Domestic
market which need not to ensure the off take of the entire production.

3. COST REDUCTION:

The main producers are increasingly laying emphasis on cost control and
cost reduction. The yields and the quality are being benchmarked with international
standards. Energy efficiency has been improving with contemporary technologies
being inducted. As already highlighted, the success of the stainless steel producers
lies in their ability to reduce their costs and remain competitive.
4. MARKET ORIENTATION :

With the export thrust, there has been a change of focus form being
production driven to becoming customer driven. The Stainless steel producers will
increasingly lose pricing power. The focus has to shift towards manufacturing and
providing the right quality and quantity of stainless steel to the customer at the right
price.

5. DEVELOPMENT OF INFRASTRUCTURE:-

Steel is classified as heavy industry with a large volume of inward/outward

movement. For ports are major bottlenecks and have further impact on our export
capabilities to the demanding international markets.

Infrastructure has become a major constraint for future development of the

stainless steel industry. The growing needs of end user industry have resulted in
revere bottlenecks and costs by way of displayed port clearances, displayed
dispatches etc. The Government may permit large stainless steel plants to develop
their own infrastructure facilities.

The Government, realizing the importance, has in the last two years taken
adequate steps to increase investment in the infrastructure sector by offering
numerous fiscal incentives.

6. QUALITY AND PRICE:-

Product positioning has forced the stainless steel producers to improve on

the quality to get a better realization and to be at par with certain developed
countries. The producers are building flexibility in the production process to suit
market niches. High degree of flexibility in the production process facilities quick
response to the customers diverse requirements related to quantity, quality grades
and delivery schedules.
7. TRADE POLICIES:-

Trade policies, rules and regulations in the banking system with respect to
the opening of Licensing and other related transaction can be eased to facilitate
faster adherence. Sooner or later, India will also develop service centers with added
services. It could also be beneficial to develop certain markets in the neighboring
countries which do not have the steel making facilities.

To capture the market and positioning of stainless steel in domestic and

global environment we have to be very careful about following things:-

Improvement in the process efficiencies

Implementation of cost effective technologies

Reducing cost of services by choosing cheaper transportation modes like

coastal movements and inland movements through waterways.

Both the government and industry will have to draft strategies to complement
each others efforts to achieve market share.

With the acceleration of reforms, massive push on investment in stainless

steel user industries and with growing consumer durables market, along with
opportunities for catering to the fast growing stainless steel needs of Asian market,
Indian stainless steel Industry is estimated to grow for many years to come. The
globalization, industrial liberalization and free market economy will eventually trigger
Domestic demand and pave the way for sustained export.
 THE PRODUCTS

CONTINUOUS CAST PRODUCTS:

SLABS: Cast in single strand slab caster of Steel Melt Shop 1. Liquid steel is
produced through Electric Arc Furnace-ASM convertor/VOD-Ladle Refining Furnace
Route.

BLOOMS: Cast from bloom casters both in Steel Melt Shop1and 2. Liquid steel is
produced through Electric Arc Furnace-ASM convertor-Ladle Refining Furnace
Route.
HOT ROLLED PRODUCTS:

HR COILS: As cast/ground slabs, they are first heated and soaked in reheating
furnace, rolled in roughing mill to intermediate thickness and to the final thickness in
the steckel mill.

HRAP COILS: Hot Rolled Annealed Pickled coils are produced after continuous
annealing and pickling.

HRAP PLATES: Plate are finished after annealing and pickling or by cutting Hot
Rolled Annealed Pickled coil to desired lengths.

COLD ROLLED PRODUCTS:

Cold Rolled Coils and sheets are produced after being processed in the 20
Hi mill, continuous anneal and pickle line, slitting line and cut to length lines.
Absolute flat sheets are produced after being put through the Voss Leveler. Sheets
and Hot Coils are available in different finish.

BLADE STEEL:

The company is the exclusive producer of stainless steel strips for making
Razor Blades and surgical Blades in India. The plant has a capacity to produce
15,000 metric tones per annum.

CUSTOMISED PRODUCTS:

Jindal Strips Ltd. Has developed the capability to supply customized products
for critical applications. This has helped customers in their indigenization efforts.
TAILOR MADE PRODUCTS:

Niobium stabilized grade austenitic stainless steel was developed for critical
components to be used in turbines and other engine components. This steel was
required to have specified chemical characteristics with mechanical and impact
properties.

FERRITIC STAINLESS STEEL FOR COINS:

Jindal strips produced Ferritic Stainless Steel AISI 430 for coin making.
These are plain chromium stainless steel with varying chromium content between
11% and 18%, but with low carbon content. They have a moderate to good
corrosion resistance, are not hard enable by heat treatment and always used in the
annealed condition. They are magnetic. The formability is not as good as the
austenitics. These are commonly used in computer floppy disk hubs (430),
automotive trim (430), automotive exhausts (409), material handling equipment
(3cr120 and is hot water tanks (444).

MARTENSTIC STAINLESS STEELS FOR BLADES:

Martenstic stainless steel, the first stainless steel commercially developed(for

cutlery) have a relatively high carbon content. They are plain chromium steel
containing between 12 and18% chromium. It is commonly used for knife blades,
surgical instruments, shafts, spindles and pins.

AUSTENITIC STAINLESS STEELS:

Most commonly austenitic stainless steel contains 18% chromium and 8%

nickel. They have an excellent corrosion resistance, weldability, formability, ductility,
cleanability and hygiene characteristics. These are non magnetic (if annealed). The
common use are in computer floppy disk shutters(304), computer keyboard key
springs(301), kitchen sinks(304D), pharmaceuticals, petrochemical industry, food
processing equipment, architectural applications and chemical plants.
 PRODUCTION OF JSL

At Hisar, Jindal Stainless Ltd. has Indias only composite stainless steel plant
for the manufacture of flat products, with a stainless steel melting capacity of
4,00,000 metric tones per annum and Hot Rolling production capacity of 4,00,000
metric tones per annum. The plant has a cold rolling capacity of 1,00,000 metric
tones per annum of Blade Steel.

The downstream expansion of cold rolling capacity is to be done in two

phases. Phase I involved the modification of the existing 30,000 TPA cold rolling
capacity to manufacture value added products and diversify its products mix to
improve profitability, which has already been commissioned. The phase II
expansion involved expansion of cold rolling capacity from 30,000 TPA to 90,000
TPA, which is under progress.

INSTALLED CAPACITIES* :-

Stainless Steel Melting 4,00,000 MTPA

Hot Rolled coils and Plates 4,00,000 MTPA

Cold Rolled and Sheets 90,000 MTPA

Blade Steel 10,000 MTPA

Coil Blank 3,000 MTPA

The Stainless Steel Industry is consolidating worldwide and the top five-
producer account for nearly 45% of the Stainless Steel produced globally. Jindal
Stainless Ltd. Is a ISO 9002 and ISO 14001 certified company it is the highest
producer of stainless steel in India.

* Metal Bulletin 2003

Rapid pace and the advanced countries have been reaping profits by
exploiting these advances. JSL has always been keeping its eyes and ears wide
open to these sea of changes and would never let opportunities of continuing its
leadership in the stainless steel sector to slip off. JSL has been seriously working on
revamping its entire set up, to successfully remain in the competition and in the
process of installation of ISO- 9000 quality system.

JSL has been investing around Rs.100crores, by june,1995 and massive

modernization-cum-expansion program, covering the steel melting shop, continuous
casting, steckel mill tandem mill and other supporting units such as self sustaining
power generating sets, oxygen plant etc*. The following improvement program at
Hisar works is in process of implementations.

Production Target

The production target of hot metal, crude steel and saleable steel after Expansion
is indicated below:

MILLION TONES PER ANNUM

Item Base Case (2006-07) After Expansion

Actual

Hot Metal 14.6 26.2 (23.5)

Crude Steel 13.5 24.6 (21.4)

Saleable Steel 12.6 23.1 (20.2)

Figures in bracket indicate capacity after implementation of ongoing Phase of

modernization and expansion to be completed by 2012.

__________________________________________________________________
Indian Stainless Steel Market Growth Perspectives, july,2002,
www.steelworld.com

STEEL MELTING SHOP:-

Presently, JSL is equipped with a 5 tones EAF and a 40 tones AOD converter,
with the production capacity of 72000 tones per year and 1,00,000 tones per year
respectively. The stainless steel production at JSL. By the EAF-AOD route, in the
last several years has been consistently more than 50,000 tones per year, which
consistently nearly about 20% of the stainless steel produced in India.
 The present 25 tones EAF to be augmented by installation of a more ultra high
power EAF of 35 tones capacity. This is being done to-

Increase production capacity to 150,000 ton/year

To keep the melt shop working for all 30 days during relining of furnace.

To produce nickel free stainless steel of 400 series.

Modernising the scrap handling area, with appropriate segregation and grade
wise strong facilities.

Modern slag handling and disposal system to copy with 150 tones of slag
produced per day.

Additional facility of 100 TON capacity EOT crane.

To introduce automatic raw material feeding mechanism.

AOD CONVERTER:-

To increase productivity and reduce refractory consumption, modernization of

AOD has been taken up. Mr. ULRICH GLADEMEYER (Germany) has been
appointed as consultant. Two proposals are under consideration from the present
side tuyer arrangement.

ASM technology (Bolton tuyers only)

Converter with top lance.

It will be finished soon and then we can accept better productivity for
increased production and less refractory consumption.

EAE-CONVERTER-VOD-CC:-
 In such case c burden will be reduced to around 30 in converters followed
by final treatment in VOD. With introduction of VOD there will be marked
improvement in the quality of steel with respect to gas content indusious. Availability
of converter will be thus bettered leaking to increased production. All this existence
in the steel melt shop is being done to increase the production from 7 heats/day of
38 tons to finally cost 150,000 ton/year of finished quality wise acceptance slabs
and blooms.

VACCUM OXYGEN DECARBURISATTION (VOD) SYSTEM:-

This 40-ton VOD is in the advanced stage of completion. STANDARD MESSO

GERMANY. By July, 1994 VOD will be commissioned. With the installation of VOD
the steel making route can be modified.

CONTINIOUS CASTING MACHINE:-

The continuous casting machine is going through a series of revamping to

make its worthy of producing the requisite tonnage, with dimensional accuracy and
surface finish which is essential for production of high quality acceptance coils. The
revamping job has been given to world leader in this field:

PIETRYKA INCORPORATED PITTTSBURG, USA:-

The following modifications are envisaged:-

1. The tundish which receives the hot metal is being redesigned from 3 ton
capacity to 5 ton will flow control like dams and weirs to improve steel
deanliness.
 2. Automatic mould level control is being introduced and is being supplied by
STERT, FRANCE.

3. To achieve dimensional accuracy the solls in the curved segments are being
replaced segments rolls. Rolls changing will be easier leading to low down
time is case of changing.

4. To give smooth movement to slab casting the dummy bar disconnection

system is also being incorporated.

5. More automation is being introduced through electronic control in the areas

of primary and secondary cooling and the mould scellating system to make it
competitive with the speed of casting.

ROUGHING MILL AND HOT STECKEL MILL :-

The entire job of refurbishing the hot mills have given to UNITED
ENGINEERING INCORPORATE, PITTSBURGH, USA They have studied the
entire plant and are engineering to update the technology to incorporate.

ROUGHING MILL :-

1. A new slab reheating zone furnace with full electronic control is already in the
March 1994 only.

2. Edgers will be shifted near to the roughing stand.

3. High pressure descending system at three places will be installed for better
surface finish.

4. New set of motors and electronic controls for main mill and conveyer tables
are being added.

5. To increase the production of MS/SS plates 72,000 ton/year

STECKEL MILL :-

1. Hydraulic------forced cylinders for automatic guage control.

 2. New set of motors and electronic controls for main mill and coilers are being
added.

3. The hot coiler furnace and coiler drums are being redesigned on modern
concept.

4. Crown in and crown out for roll behind are being incorporated.

5. To increase availability of mill quick work roll change system is being

introduced.

6. Laminar cooling of strip being provided.

7. A robust finish coiler with forming rolls is being installed.

All these are being done to give a boost to the quality commitment. These
programs will be able to deliver coils of :-

1. Lower thickness range.

2. With better dimensional accuracy.

3. Better surface finish with enhanced metallurgical and mechanical properties.

4. To increase the productivity of coils to 1,00,000 ton/year.

HOT STRIPS TANDEM MILL :-

To improve the dimensional accuracy increase the coil weight and increase
production capacity the hot strips tendon mill is going to be modernized from first
week of May,94 to July,94.

1. The existing reheating furnace is being modified to 3-zone furnace.

2. The three high mills is being replaced by two high slabing mill with forward
and pull head passes.

3. The finished train of stands in tandem is getting new motors and controls.

This being done to go in a big way for production of razor blade steel to the
tune of :-

1. Razor Blades steel H.R.coil

 2. S.S. coil 2.5mm thick or

3. S.S flat in coil 10mm x 20mm.

To meet the demand of the utensils manufacturers.

CHEQURED PLATE MILL :-

As you are aware, we have recently commissioned a chequred plate rolling

mill and already a sizable quantity to the tune of 400 ton/month is being offered to
consumers, the increased production of chequred plate will be a regular features
from may, 1994 to the tune of around 1500 to 2000 ton/month in thickness. Ranging
from 4mm to 10mm.

RAZOR BLADE COLD ROLLING MILL :-

The blue print for the razor blade cold rolling project to produce 12000
ton/year of finished strips has been finalized on a green field location at Hisar.

The equipments have been ordered and of erection is going to start shortly.

OXYGEN PLANT:-

To support the steel melting shop in achieving its capacity the present
oxygen plant is being replaced by a new oxygen plant of higher capacity from AIR
CRYO INC. New Jersey, USA. The salient features of the plant are given below-

1. The capacity to produce oxygen 75 ton/day of 99.6%purity which is thrice the

capacity of the present plant with very low power consumption.

2. Argon generation of 99.99% purity at the rate of 2.53 ton/day.

3. Nitrogen gas is generated as a byproduct.

D.G.SET :-

The power situation in Haryana is far from satisfactory. The power cut
averages to nearly 40% two additional D.G. sets of 6 MW each are being installed
to produce 20.6 MW when coupled to the existing two D G sets of 4.3 MW each.
The D.G. sets would have all the modern concept of fuel efficiency by using (H.P.S.)
and reliability of operation. The above modernization program which is likely to cost
over 100crores rupees, would definitely help us to improve our product quality and
market share with increased supply of finished products supply of finished products
from our plant.

JINDAL GEARING UP FOR THE CHALLENGES OF THE FUTURE

The 90s will see Jindal seek and scale even higher peak of endeavor, with
products and technology that will continues to give it a pioneers lead. And like a
true pioneer, it will continuous to open up new pointers, and move in new directions.

The 1st steps in direction have already been taken.

A 0.6 million ton capacity fully integrated iron and steel plant at Raigarh, Madhya
Pradesh for manufacturing sponge iron, pig iron, hot rolled steel strips.

MARKETING MIX OF JSL

Marketing mix is the term used to describe the combinations of the four
inputs, which constitute a companys marketing system, the product, the price
structure, the promotional activities and the place distribution system.*

Marketing mix is a dynamic concept because of its variation in accordance

with the change of the needs of the customers and the environmental factors. Thus
the purpose behind its determination is to meet the needs of the customers and the
organization in the most effective and economical manner. However, marketing mix
fundamentally concentrates on the customers who are the pivot around which all
the activities of the firm revolve.

In most of the firms marketing mix decision are led by the marketing
department but other functional areas play a key role. Research and development
management are significantly involved in product mix innovation finance, production
and other department influence pricing and distribution decision.

Marketing mix implies management of product, price, promotion and

placement. The marketing manager is responsible for taking decisions regarding
marketing mix. A proper marketing mix helps to meet the requirement of different
types of customers.

The elements of marketing mix as-product, price, place, and promotion are
called as the firms controllable variables. These are activities that an organization
plan, organize and control. Not all marketing mix variables can be adjusted in the
short run. They vary in their adjustability. Typically the firm can change its price,
sales force size and advertising expenditure in the short run. It can develop new
products and modify its distribution channels in long run. They marketing mix
variable are as follows :-
__________________________________________________________________

*Stanton, William J.: Fundamentals of Marketing, page-40

PRODUCT MIX OF JSL

The most basic marketing mix tool is product, which stands for the firms
tangible offer to the market including the product quality, design, features and
branding. A product mix is the set of all items that a particular seller offers for to
buyers. A companys product mix will have certain width, length, breadth and
consistency.
 JSL producers almost all principal grades of stainless steel at Hissar plant.
The specification of product mix of Jindal Strips is as under *:-

HOT ROLLED STAINLESS COILS

GRADES : AISI-201,202, JS-320

: AISI-304,304L, 316, 316L
SIZES :
Thickness : 2.8mm to 5.0mm
Width : 250 to 900
Coils weight : 300 kg to 400 kg
Finish : As Rolled Annealed and pickled

HOT ROLLED STAINLESS PLATES

Grades : AISI-304, 304L,316, 316I, 310
Sizes :
Thickness : 4.0 mm to 16 mm
Width : 1000-1250 mm
Length : 3000-6000 mm
Condition : Hot Rolled Black

__________________________________________________________________

* Stainless Post Journal Of JSL

HOT ROLLED STAINLESS FLATES

Grades : J1, J2, J3, J4, 304, 316

Sizes :

Thickness : 11.0 mm to 20 mm

Width : 180-350 mm

Length : 1-10 Mtrs.

Condition : Hot Rolled Black

HOT ROLLED CARBON STEEL PLATES

Grades : JS:2062, IS:226, IS 2083, ST:52

Sizes :

Thickness : 5,6,8-10/12-100MM

Width : 1000/1250/1500 mm

Length : 4-8 Mtrs (586 mm plates can be

Condition : As rolled leveled supplied in coil also and sheared.

HOT ROLLED STAINLESS STEEL PROCESS REHEATING

FURNACE :-

It is a pusher type, oil fired reheating furnace for heating of slabs(blooms)

Ingots with a through put of 30 Mt/HR for slabs/blooms and 15Mt/HR for ingots.

Product Details :-

1-Ingots: Grade- I Razor Blade Stainless Steel

II Austenitic Stainless Steel

Size- (500*500)* (430*430)* 1525 (U.MM)

COLD ROLLED STAINLESS COILS :-

Grades : AISI-201, 202, JS-320

: AISI-304, 304L, 316, 316L

Size :

Thickness : 0.20-3.5 mm

Width : 250-500 mm

Coil Weight : 50 kg-20 Kg

Finish : Annealed 2D, Full Hard, 3/4Hard, 1/2Hard, 1/4Hard

COLD ROLLING MILL :-

Cold Rolling Mill is separate sector or process under the Jindal Stainless Ltd.
There are basically three different processes under the cold rolling Mill section.
These processor are called basically.

(i) SMS-I

(ii) SMS-II

(iii) SMS-III

(1) SMS-I

Under the SMS-I, there are SS cold rolling process is done. Under this
section, there are austenitic steel is used for bright purpose. The main process is
basically in the SMS-I is this:-

(2) SLABS GRADE: I

I Razor blade stainless steel

 II Austenitic Stainless Steel

SIZE:- (250mm to 360mm)*CIIS M MT0120mm

(3) BLOOM: GRADE:-

Austenitic Stainless Steel Size (160* 160) SQ MM

ROUGHING MILL SECTOR:-

The 1100 mm two-high revering roughing mill is designed to roil ingots in to

slabs and slabs to flats/transfer bar for rolling in tandem mill. The capacity of mill is
around 12,50,000Mt per annum. The mill is powered by a 4000 hp/80 RPM
reversible duty D.C. Motor.

TANDEM MILL SECTION:-

Tandem Mill consists of live standard arranged in a row. The two high 457mm
mill is powered by 2000 HP D.C motors in first two stands and by 1800 D.C. Motors
in the remaining three stands. The mill is continue type with transfer bar from
roughing mill fed into first standard and finished coil being rolled out from the cast
strands. The mill drive is fully automated with PLC control.
 PRICE MIX OF JSL

Price is the only element in the marketing mix that produces revenue, the
other elements only include the cost but the price is also one of the most flexible
elements of the marketing mix and it can be changed quickly. The main objective
pursued by the JSL through pricing is to achieve maximum sales growth and hence
the maximum market share. A company can pursue any of six major objectives
through:

i. Pricing survival
ii. Maximum current profit
iii. Maximum current revenues
iv. Maximum sales growth
v. Maximum market skimming
vi. Product-quality leadership

ELEMENTS OF PRICE:-

The elements of the price in the marketing mix are-

i. List-Price
ii. Discounts
iii. Allowances
iv. Payments period
v. Credit terms

Product Price of JSL:-*

Steel Scrap : INR 500 Per tonne to INR 1421 per tonne

Sponge Iron : INR 733 Per tonne to INR 1500 per tonne

Pencil evigot : INR 533 Per tonne to INR 2700 per tonne

TMT : INR 1040 Per tonne to INR 2600 Per tonne

Indian Long Product Price (Per tonne)

Class 18 Dec. 21 Dec. Change %

ILPPI 6301 6662 361 5.7

IFPPI 7126 7207 81 1.1

INDSPI 6694 6922 228 3.4
ILPPI:- Long Product Price Index
IFPPI:- Flat Product Price Index
INDSPI:-Indian Steel Price Index

Long Product Price(per tonne)

Class 18 Dec. 21 Dec. Change %

PI-TMT 6146 6506 360 5.9

PI-WRC 6682 7066 385 5.8

PI-Angle 6010 6333 322 5.4

PI-Channel 6053 6384 331 5.5

PI-Joist 5553 5859 306 5.5

PI Product Index

__________________________________________________________________
www.Steelworld.com,23,Dec,2009

Flat Product price(per tonne)

Class 18 Dec. 21 Dec. Change %

PI-Narrow plates 6732 6796 64 0.9

PI-Wide plates 6874 6957 83 1.2

PI-Hot Rolled 6981 7061 80 1.1

PI-Cold Rolled 7736 7835 99 1.3

PI- Galvanized 7545 7610 66 0.9

PI (Product Index)

PAYMENT PERIOD:-

Jindal Stainless Ltd. has very tight credit standards that is it sell mostly on
the credit basis, and extend credit only to the most reliable and financially strong
customers. Such standards will result in no bad debt losers and less cost of credit
administration. Mostly the payment has to be done after the delivery of the goods.
So the payment period depends upon the delivery of the products.

PAYMENT TERMS FOR CONSIGNMENT AGENTS:-

(A) SS Flats:- 100% full payment within 7days from the date of dispatch from
Hisar unit.

(B) M.S. Plates:- Interest will be changed for the period starting from 3 rd day
from the date of receipt of material at destination up to the date of actual
payment @24% per annum on the invoices as applicable.

Also if some confirmed order is cancelled then the advance amount is

forfeited. No compensation is paid to the customer in case of delay in execution of
order.

PAYMENT TERMS FROM CUSTOMERS DIRECT ENQUIRY:-

30% payment in advance along with in purchase order by Demand Draft at

Hisar/New Delhi and balance against delivery through Demand Draft.

CHARGING OF OVERDUE INTEREST FOR DELAYED PAYMENTS

 A. Stainless steel Flats/Coils/Plates:- Interest will be changed for the period
starting from 8th day from the day of dispatch from Hisar unit upto the date of
actual payment@24%per annum on each invoice as applicable.

B. S.S. Coils:- 100% full payment in advance along with order confirmation.

C. S.S. Plates:- 100% full payment within 7 days from the date of dispatch from
Hisar unit.

D. M.S. Plates:- 100% full payment within 2 days from the date delivery of
material at destination.

INTERNATIONAL PRICING STANDARD AND POLICY OF J.S.L:-

Now when J.S.L had started to capture the global market places, in SS the
price factor involve is being taken very sentitive at the same time. JSL is working
just on the bred-butter basis, which mean the profit is being over sight. Only to

Enter the tough competition JSL makes the products price efficient by selling
the product (steel) on the cost to cost price only and the international pricing keeps
on fluctuating according to the circumstances and making trends.

INTERNATIONAL PAYMENT TERMS:-

Globally JSL do the basis on letter of creditAt sight for 100% of invoice value

i. Credit for 100% of the invoice value payable at 90 day from b/I date , freely
available

ii. Advance payments

iii. All the transactions will be done in US Dollars.

 PLACE MIX OF JSL

Place, another key marketing mix tool, stands for the various activities. The
company undertakes to make the product easily accessibly and available to target
customers decision such as which distribution channels to maintain between
producer and customer, which whole sellers and retailers to select, and how to gain
the cooperation of these intermediaries. The most important in the element of place
is the distribution channel in a steel industry.

Distribution channel adopted by J.S.L:-

 J.S.L. is the producers of industrial goods and that is why emphasis has
been laid on industrial marketing channels. Compared with the consumer market,
industrial market consists of fewer buyers, geographically concentrated buyers; the
demand is derived, relatively inelastic and more fluctuating. These characteristics of
industrial marketing of industrial goods vary different from that of consumer goods.

J.S.L. distributes the products in three ways:-

1. Direct Selling

2. Selling through agencies

3. Physical distribution

DIRECT SELLING:-

In direct selling the organization directly sells the products to the final
customers, which are mostly O.E.M such as BHEL, ISGEC, Metro Rail and Govt. of
India (Mint).

Which is generally a sight payment. Along with the following conditions:

SELLING THROUGH AGENCIES :-

Under this type of selling, the organization sells its products on consignment
basis. For this purpose the company has appointed a number of agencies spread
through out India. Some of these are:-

1. Sanjay Tubes Pvt. Ltd. Delhi

2. Singhal TRADING Co., Delhi
3. Reliable Enterprises, Bombay
4. Advanced Metals Private Limited, Jodhpur
5. Orbit Steels, Bombay
 6. Jindal Steels Agencies, madras
7. Apex Steels, Jodhpur
8. Reliable agencies, Bhiwani
9. Stainless Steel Private Limited, Ahmedabad.
10. Shiv Trading co., Madras

The stock is held on consignment by the agencies and the property remains
with the seller until it is sold. Such consignment agents are called consignees. They
charge some fixed amount of commission which usually varies between 2% to 4%
of sales.

The company has chosen this channel because steel being basic raw
materials for many industries is bought by number of buyers. Hence, it is difficult to
reach all them directly.

PHYSICAL DISTRIBUTION:-

Physical distribution consists of these marketing activities, which are related

to the physical handling of goods such as packing; order processing, inventory
management transportation and warehousing. Various studies have shown that total
marketing costs are about 50% i.e. about 255 of the price finished goods. Hence,
the important planning of physical distribution activities can substantially decrease
the cost of production.

The products of JSL are sent to various agent via road and rail this is
because road transportation highly flexible, fast and can deliver the goods to the
very doors of the customers where as rail transportation is cost effective only in the
cases where it is directly reachable and approachable to the customers.

Although the company has some of it own vehicle for this purpose yet many
private carrier are also attached to the company for this purpose.

But for the purpose of international marketing and for the shipment of the
goods we have a totally different route of logistics and supply chain management.
LOGISTICS ACTIVITIES OF JSL FOR EXPORT :-

For the export shipment JSL has altogether a different logistics route and
separate team to handle the physical distribution. Basically at JSL the factors, which
we are more concerned, are following

a- Cost factor
b- Time factor
c- Safety factor

Taking all the above factors in the consideration the logistics team, which is
a part of Export Deptt. Manages for the movement of the goods and ensure the
proper shipment of the international cargo. Which again is a out come of as smart
team work it self centrally the activities are monitored from the head (corporate
office). Where as manufacturing sights and regional offices are the real movements
operation centers for the activation of logistics plan.

Practically for any export shipment at JSL the safe supply of cargo is ensured
to the overseas customers and for the same keeping the above mentioned factors is
compared that:

a. Which mode will be more viable and effective i.e. by road, by rail, by road
and rail(containers) both.

b. Through which port sending the shipment will be more efficient (i) Bombay
port,(ii) Kandla port, (iii) Chennai port,

c. And from which sight (Plant location the cargo should be lifted up) as a part
from main plant JSL is sending the material for job work to various job
workers like SAIL(SALEM), Real strips (Ahamedabad Swastik Foils,
(Delhi)etc.

The logistic activities involved, takes care not only for the physical distribution
but also for the proper documentation and customs clearance etc. that is
sequentially defined below.
 In any Export Shipment following steps are followed:

a. Containers are moved to plant for factory stuffing.

b. After the stuffing and customs examination they are taken back to
I.C.D(International container Dept.)

c. In ICD after the inspection and customs clearances the containers are
handover to concore (containers corporation of India) a sub division of
Indian Railways.

d. Concore further rail out the container for the port of sailing.

e. Reaching on the port the shipping line take care of containers which are
further loaded on the vassal and sailed out.

f. After the vassal is sailed the Bill of Lading is issued by the shipping line,
on the basis of which the payments are released.

g. All the above activities of logistics are covered under the marine
Insurance policy which is again an important part of logistics and
distribution management.

So the international physical distribution management is most important

activity performed at JSL.

PROMOTION MIX OF JSL

Promotion refers to the efforts to inform and influence consumers. It involves

such advertising questions as how much to spend, what product and corporate
image to create and how to allocate advertising on distribution channel members
and consumers. Promotion includes how a company can increase its sales? What
should company do to increase sales and to increase profits?

Promotion is done for more than developing god products; pricing it

attractively and making it accessible to target customers companies must also
communicate with their potential customers. Every company is inevitably cast into
the role of communication and promoters.

To communicate effectively companies hire advertisements, sales-incentive

programs and public relations firm to develop the corporate image.

The marketing communication mix is also called promotion mix, which consists
of four major tools-
1. Advertising
2. Sales promotion
3. Public Relation
4. Personal Selling

The product of Jindal Stainless Ltd., being the industrial product the
emphasis is on the Direct Marketing and sales promotion tolls of the promotion mix.
In case of direct marketing they contact the consumers with mail telephone and with
non-personal contacts. Also the seminars, fairs, trade shows and workshops with
customers and agents are held at national and international level as a part of sales
promotion with help of these, customers are made aware of different products, their
unique features and their additional usages.

As far as advertising and hoardings only. Even this advertisements and to

enhance the image of the advertising is just to enhance the image of the group.

MAJOR STEPS TAKEN TO IMPROVE THE PROMOTION OF

STAINLESS STEEL BY JSL

The Jindal Stainless Steel Design center has been established by Jindal
Stainless Ltd. to introduce the increased the use of stainless steel in trend settings
and path breaking ways. It aims to work as a nucleus among designers, architects,
fabricators, and producers. Innovative steel products are designed and developed in
association with professional designers and premier design institutes, who are
involved in the conceptualization, design, fabrication, execution and installation over
50 designer products in the area of giftware, environmental are, stainless art bar
essentials, fusion with other material and utility products have been designed and
produced by the center.

The Indian Stainless Steel Development Association (ISSDA) was founded

in 1989 by seven stainless steel producing companies with the explicit purpose of
diversifying and increasing the use of stainless steel in India.

The founding of ISSDA was a very essential for the Industry to move forward
and begin catching up with the rest of the world by introducing stainless steel into a
whole new range of applications.

Thus the JSL is the member of the above association which is helping JSL in
the promotion mix and a part from this recently a utility and final product
manufacturing unit is established under the JSL at Tekri (Delhi Border) which also
working as a factory out let for retail customers and also a demonstrating unit to
further acknowledge the increasing use of and application of stainless steel.

This is the very first effort made by any S.S. Co. in India to get an other
breakthrough to enhance the product promotion.

MARKETING STRATEGY OF JSL

Developing world trends to be more steel intensive, than growth in developed

nations. As a result, steel plays a vital role in these new economics. The company
has developed strategies to sustain growth in a challenging environment. Moving
forward, the company has articulated three long-term financial priorities for Jindal
Stainless, firstly, we must continue to seek profitable growth opportunities, secondly,
the company must continue to improve its healthy and conservative Balance Sheet.
The stainless business will be a major enhancer of growth both in India & South
East Asia, particularly China. As both these countries are experiencing higher GDP
growth, which should result in higher stainless steel consumption.

The JSL has developed several strategies to capture the market, which are,
as following:-

1. Cost Reduction:- The JSL is giving main focus on cost reduction to

directly improve the bottom line rather than put up new plants to increase top
line sales. Its entire focus was on decreasing costs by going for more
automation & use of less energy per ton of steel production. In fact, JSL
spent Rs.12,000crore on the modernization program so that it can be utilized
for setting up new capacities with better plant layout. Even if the
management would have scrapped the original plants, the new outcome
would have resulted in higher sales & lower cost.

2. Capacity Additions:- The process of privatization also saw a lot of

private sector investment in the steel industry. Steel investment in the steel
industry. Steel prices were freed in a lot of countries. The advent of new
technologies allowed JSL at lower investment costs to venture into the steel
business.

3. Delivering High-Value Added Products:- JSL is trying to move up

the value chain for delivering high value added products. In production terms
this means producing thinner, stronger steel as well as a greater proportion
of coated products, to add more value to production.

4. Quality & price:- The JSL is giving more attention to improve on the
quality to get a better realization & to be at par with certain developed
countries. The JSL is building in flexibility in the production process to suit
market niches. High degree of flexibility in the production process facilitates
quick response to the customers diverse requirements related to quantity,
quality grades & delivery schedules.
 5. Globalisation:- The plan of JSL is to be globally competitive. The
winds of change sweeping across the world have seen the emergence &
acknowledgement of Indian exports by the global community. Reaping rich
benefits in the company markets. Exports registered a whooping 55%
increase over the previous year. This phenomental growth is the recognition
of the quality acceptance of products of JSL, which has resulted in repetitive
orders from overseas customers.

It is certain that the company has a robust strategy & are concentrating in
implementing it with excellence. In doing so the company have excellent &
dedicated employees, a vast network of trade & supplier partners as well as
goodwill of customers who believe in brand of company. The plan of JSL is to set up
Green Field Integrated stainless steel manufacturing facilities, in the state of Orissa,
which would start from the mining stage to production of Ferro Chrome, stainless
steel slab making facilities along with power generation. It is definite that this move
will make Jindal Stainless globally cost competitive & put the company in the league
of top ten producers.

CONCLUSION

As on today stainless steel is being used from kitchen stoves to nuclear

reactors, bicycle component to spacecrafts, coins to large marine ships, cryogenic
equipments to high temperature furnace components, milk tankers to corrosive
chemicals or any area you image you will find stainless steel is some form or the
other. Due to its wide-ranging applications, the production of stainless steel is
increasing very rapidly. The growth of stainless steel is dependent upon the growth
of the economy, industrial production & infrastructure sectors.
 During the study on the research topic of the case these were many
assessments, which we have observed while analyzing our aim and objective of the
study. Here we are giving our observations as the conclusion of the study based on
the various data and comprehensive discussion and bulletins and also on the
moving trends of the stainless steel markets & scenario.

Our observation based on various research objectives are as follows:-

1. Prospective growth of stainless steel requirements in the domestic &

global markets:-

With the context to our study we tried to find out the areas for the potential
markets for stainless steel sector in domestic & international perspective and
after the study made out we can conclude on this particular point that, just by
taking certain initiate to highlight the stainless steel and by showing a little
enthusiasm to cope up with the certain core competencies such as quality,
price, finish & by giving more research & development facilities to the
customers & to make the people more educated and introduced by the use of
stainless steel, we can definitely find the scope & growth in domestic &
international market. As the current trend of the market towards the stainless
steel is very positive. Taking care that we do not mess-up with the other
steels (M.S. & Hi Carbon steel, which are very low price steel) the stainless
steel is specialty steel due to the specified use. The demand of the stainless
steel cannot be substituted by any other type of steel or any other product.
Thus certainly there is a High potential of perspective growth in the domestic
& global market.

2. Jindal Strips Ltd :-

As our study is inspired and based on the Jindal Stainless Ltd. We have tried
to review that in comparison to the current steel trends what we have
observed in our study, how far the JSL is able to explore the market and to
move out to the different reasons in order to penetrate the different areas of
 stainless steel. And what are the fields where the JSL is lacking and
particularly how to company is doing best to make a mark to get it identified
as a unique different producer of stainless steel. As we have already
discussed in our report in the previous chapters that in India the Jindal is a
trendsetter for stainless steel. Apart from feeding the Domestic demands
Jindal has performed well to get noticed at the international charts. The
current trend shows that India is a largest exporter of stainless steel to china
in which the major shore is captured by Jindal Stainless Ltd. An other
breakthrough of Jindal is attracting the overseas co. to buy the stainless steel
from India. Getting an trial order of 200mt from Gillette International of Blade
steel is a an out standing achievement. A part from this the supply of
stainless steel. To Metro Rail Project, Government of India Mint for fifty
paise & 5Rs. Coins are example of market lead of JSL.

3. Marketing Strategy Of Company:- The Indian stainless steel sector has

undergone structural changes in the post-liberalisation. The stainless steel
producers are adopting modern technologies to table the emerging
competition in domestic & global market. Major stainless steel exporters had
quickly adjusted their strategy & captured new markets making a major gain
for the industry in the last few years.

4. End use requirements of stainless steel product:- In comparison to the

world trend we have still to do a lot, as we are not able to prove our self in
the high value steel in the European and U.S. market as we lack in various
fields. Technology, Quality, Research & Development facilities & comparative
International prices. India should always seek towards the potential market of
Europe & US which may definitely open the flood towards the different sea
as only by feeding the China & Middle east is the temporary trend of the
upwards market as to have a thrust of bulk quantity we have to be prepared
to create the market after and only this strategy will be workable lastly.
 In our conclusion we would like to discuss the major thing what the Indian
Steel Industry is constantly lacking is to attain the consumers attention. The big
draw back with such a huge sector is to that we have not still build the direct
relationship between the consumer & the product the companies are not able to
make the impression of their product direct on the consumers or end users. Besides
this there are some problems of stainless steel products, which are facing by Indian
Stainless Steel Industry.

These problems are as follows:-

PROBLEMS OF STAINLESS STEEL PRODUCTS

The Indian stainless steel industry is taking a terrible beating. Excess capacities
huge workforces and inefficient practices plague the sector. It is an industrial goods
manufacturing industry and no doubt, its marketing is industrial marketing. Stainless
steel is a profit making industry and from last few years the production of stainless
steel is increasing very rapidly. But there are some problems, which the stainless
steel industry has to face.

1. Problem of Increasing Price:-

The main problem is the industry has been increasing its price very
frequently. In the existing market dealing in cash term basis and frequent
price revision may effect the position of the company. Comparatively the cost
o stainless steel products is increasing very rapidly so it has to face many
problems to capture the market.

2. Areas of applications not known to the laymen:-

 There are various advancements in technology, which are taking place in the
stainless steel industry. There are several areas of application of stainless
steel products but customers are not familiar with new applications of
stainless steel products.

3. Lack of Demonstration and Display:-

Just like a consumer product stainless steel products cannot be displayed in

any show room or any fair or exhibition. No body tells about the use of
stainless steel products. There is lack of advertisement and sales promotion
in marketing of stainless steel products.

4. The nature of stainless steel is specified and made to order type:-

The nature of stainless steel is specified and it cannot be changed. These

products are made only according to order are produced and those products
may sold in market. It can be produced only according to order.

5. Threats of Different Substitute Products:-

It the competition of stainless steel products there are many substitutes like
simply steel, plastic, mild steel etc. No body understands the difference
between stainless steel and other steel. Due to lack of proper knowledge
nobody understand the importance of stainless steel products.

6. Unsatisfactory condition of Research and Development:-

The contribution of Research and Development cannot be said to be

satisfactory. The surface quality of stainless steel coils, flats and M.S. Plates
is found in rough surface and problems like search, scale pitting and silvers
are being experienced occasionally.
 SUGGESTION FOR STAINLESS STEEL INDUSTRY

Stainless steel industry is still in growth stage of product Life Cycle, so there
are tremendous growth opportunities. Only care should a taken to develop good
marketing strategies.

Here are some suggestions that can be beneficial for Industry:-

1. Stainless steel has a big international market. So, now the industry should
try to acquire it, as they have already made a good name in domestic
market. For competing internationally, they have to confirm to
international standards whether it is quality or service standards or price
etc.

2. There is a need for Advertising Stainless Steel and its various

applications to expand the total market. Advertisement should be
informative and educative in nature so as to create awareness, but the
industry should never forget to emphasize on specific brand along with.

3. The Pricing policies of the industry should be framed very cautiously. The
policy should be consistent along with flexibility in prices. There must be
provisions for changes in the prices in certain specific situations It will
enable the Industry to fix always the competitive prices.

4. The industry must improve its decision making system to such an extent
that it can be possible for the industry to make frequent decisions to cope
with the market conditions.

5. The industry should put continuous emphasis on Research and

Development for implementing and monitoring quality control. Here
continuous efforts must also be made for reducing cost of production of
New and existing products.

6. In case of Jindal developing a long-term relationship between company

and their channel partners can prove very effective.

7. Developing such a relationship between both requires a strategic concept

called Partner Relationship Management(PRM) PRM can be used to
reinforce relationship between the company and the channel partners that
can be prove very effective for Jindal.
8. JSL must have a proper Marketing Research System for making timely
surveys to have a knowledge about the current market situation of the
company-the complaints of various distributors and product and their
weak points too. This will help the company while framing marketing
strategies in future.

9. Stainless Steel Industry should create awareness among people,

encourage new users and discover and promote new uses for stainless
steel. The companys task is to monitor customer uses of the product.
Most new Industrial products were originally suggested by customers
rather than by company R and D laboratories.

10. Stainless Industry should try to penetrate substitutes position. They have
to convince users of other brands to shift to them. So the strategy must
be competitive on all sides.

11. One suggestion for the company is that the company can separately
employ and employee for the purpose that will be responsible for listening
to all the complaints along with his own suggestions will be forwarded to
upper level.

12. All these care some suggestions for the company that can help the
company to survive for long.

13. The Industry should keep on eagles eyes on the various advancement in
technology.

14. Product innovation is another vital factor for the Industry to face the
competition developing new products rapidly is not an option, it necessity
for survival.
 The scholar hopes if these suggestions are applied in the respective units,
the steel industry will achieve fruitful results and the industry will successfully
achieve the growth and development in the changing scenario.