Summer Training Project Presentation

On

TREND ANALYSIS AND COMPETITORS ANALYSIS OF FLAT STEEL PRODUCTS IN INDIA

By:Bharti Verma MBA/4544/11

COMPANY PROFILE
Bhushan Steel Ltd and is one of the leading players backed by more than two decades of experience in Steel manufacturing, Steel processing and allied activities. Indias 3rd largest Secondary Steel Producer with an existing Steel production capacity of 2 million tonnes per annum (approx.). Bhushan Steel was the brain child of Mr. B. B. Singal, and it first marked its presence in Sahibabad (Uttar Pradesh) in 1987. The company is a source for variety of products such as Cold Rolled Coiled Annealed, Galvanized Coil and Sheet, High Tensile Steel Strapping, Colour Coated Coils, Galume Sheets and Coils, Hardened & Tempered Steel Strips, Billets, Sponge Iron, Precision Tubes and Wire Rod.

INTRODUCTION
First part of the study will reveal the relationship between the production and sales of each of the major producer and the overall Indian Steel industry manufacturing flat products. This will help Bhushan Steel Limited to determine its position in flat steel market and its efficiency. Second part will help us to know the preference of dealers among the major producer of flat Steel products in the Indian Steel industry. This competitor analysis will show the major areas of strength and weakness of the Bhushan Steels Ltd

OBJECTIVES OF THE STUDY

To know the brand preference for flat steel products in the market in terms of product range, pricing and supply. To compute the trend from 2006 till 2012 in production and sales of all major producers in industry along with Bhushan Steels and to match overall pattern of Bhushan Steels with that of overall industry trend.

To find out the domestic sales performance of Bhushan Steel Ltd with that of other major Steel producers of the industry.

RESEARCH METHODOLOGY
The research design used is descriptive in nature SOURCES OF DATA COLLECTION

Primary and secondary data

The sampling design used for the study was Stratified random Sampling. Sample size is of 40 dealers of delhi-NCR market. Representation tools used in the project study are TABLES and PIE CHARTS

TREND ANALYSIS
Total figures for production and sales for flat steel products in India.
35000 30000

25000 QUANTITY IN '000 TONNES

20000

PRODUCTION SALES + EXPORT

15000

SALES

EXPORT
10000

5000

0 2006-2007 2007-2008 2008-2009 2009-20010 2010-2011 2011-2012*

Domestic sales and total sales as percentage of production in the year 2011-2012*

PERCENTAGE INCREASE OR DECREASE IN PRODUCTION AND SALES OF OVERALL INDUSTRY AND OF MAJOR FLAT STEEL PRODUCERS IN INDIA

COMPETITORS ANALYSIS
COMPANY WHOSE SALES IS MAXIMUM
SALES

20% 38%

TATA STEEL BHUSHAN STEELS JINDAL STEEL

29% 13%

SAIL

The analysis showed that 38% of the dealers think that customer prefer purchasing the flat steel products of SAIL , 29% dealers say that BHUSHAN STEEL is the most popular in terms of sales. 20% dealers opted TATA STEEL as the most selling brand and according to the 13% dealers the maximum selling brand is JINDAL STEEL.

ON WHAT BASIS BRAND IS SELECTED

BASIS OF SELECTION OF BRAND

24%

29%

PRICE

SUPPLY
VARIETY

21%

QUALITY

26%

In case of the basis of selection of brand , 29% of the dealers said they give priority to PRICE , 26% of them opted SUPPLY , 24% of them gave priority to QUALITY and the remaining dealer are interested in product RANGE MORE.

BRAND PREFERRED IN TERMS OF PRODUCT RANGE

PRODUCT RANGE

18%

22%

TATA STEEL BHUSHAN STEELS

12%
JINDAL STEEL SAIL

48%

In terms of product range , 48% of dealers choose BHUSHAN STEEL over others , 22% of the dealers said TATA STEEL is the best in providing range of products , 18% of the dealers opinion is for SAIL , 12% of them said that JINDAL STEEL offers the best product range .

BRAND PREFERRED IN TERMS OF SUPPLY

SUPPLY
11%
TATA STEEL

34%

BHUSHAN STEELS JINDAL STEEL

8%

47%

SAIL

In terms of supply, 47% of dealers choose BHUSHAN STEEL over others , 34% of the dealers said SAIL is offering best supply ,11% of the dealers opinion is for TATA STEEL ,8% of them said that JINDAL STEEL offers the best supply.

BRAND PREFERRED IN TERMS OF OVERALL SATISFACTION

OVERALL SATISFACTION
12% 29%
TATA STEEL BHUSHAN STEELS JINDAL STEEL

8%

51%

SAIL

Taking in view the overall satisfaction , 51% of the dealers are satisfied with BHUSHAN STEEL the most ,29% of them choose SAIL ,12% say that TATA STEEL gives best satisfaction , 8% of dealers opinion is for JINDAL STEEL .

FINDINGS
In 2006-2007 , domestic sales versus % of production of Bhushan Steel Ltd was 66.8% , which is the second highest after Jindal Steels 73.3%. In 2007-2008, the domestic sales versus % of production of Bhushan Steel Ltd significantly increased up to 87.2% which made the Bhushan Steel Ltd, the most efficient company with the least gap between the production & domestic sales. In 2008-2009 as compared to 2007-2008, the Steel industry in India faced a gradual decline in production as well as sales by 5% and 5.6% respectively due to the great recession of 20082009. Bhushan Steel performed well in domestic sales during recession also.

CONT.
In 2010-2011 the production and Sales of Indian Steel industry grew at a minimal rate of 1.5% and 1.9% respectively but as we see the production of Bhushan Steel, it jumped from a growth rate of 1.1% to 8.4% and in case of sales it jumped from 1.1% to 7.6% which is a drastic improvement. 38% of the dealer sell SAILS flat steel products the maximum, 29% of the dealers sell BHUSHAN STEELS flat steel products the most. In case of the basis of selection of brand , 29% of the dealers said they give priority to PRICE. In terms of product range, 48% of dealers choose BHUSHAN STEEL over others. Taking in view the overall satisfaction , 51% of the dealers are satisfied with BHUSHAN STEEL the most.

CONCLUSION
This research shows that almost all the production done by Bhushan Steel Ltd is utilized either in domestic sales or export hence making Bhushan Steel Ltd the most efficient as they follow the principle of very minimal wastage. In capturing the market share Bhushan Steel Ltd. Is on second position as the market leader in capturing market share is SAIL as Bhushan Steel Ltds production capacity is less than SAIL. Bhushan Steel Limited is the market leader in terms of Product range.

CONT.
Bhushan is well known for its Quality products amongst the dealers and customers as it believes that best quality is the only way for long term survival and growth. Bhushan Steel Ltd also showed a narrow growth in year 2009-10 because it paid maximum attention in strengthening its human resource by applying proper human resource planning and development programs during that particular period.

RECOMMENDATIONS
Bhushan Steel Ltd should further expand its production capacity as there is scope of selling more. The Bhushan Steel Ltd should incorporate aggressive sales promotional activities to penetrate the market. Bhushan Steel Ltd.s product should be priced a bit low to capture more market, its price should be competitive with the competitors pricing. Time-to-Time survey should be conducted to know about the current needs of the market.